Latest short sale trends
Just like fashion trends that change from year to year, there are also many obvious trends in the short sale world. When you are working lots and lots of shorts, you begin to notice little trends—often before they are announced by the lenders or become high drama on the Internet.
Top 3 shifting short sale trends
Here are a few of the biggest trends right now in the short sale world:
- Fannie Mae Valuation Issues. For the past several months, short sales of homes with Fannie Mae loans have become more challenging—often because the Fannie Mae valuation is much higher than market value, resulting in the inability of a qualified buyer to purchase the home. There has been much ado about Fannie Mae valuation issues and possible fraud: so much that Fannie Mae has recently created a website to assist Realtors® with short sale valuation issues.
- Servicer Transfers. It may happen that a short sale listing agent gets a call from the short sale lender before (or after) the sale has been approved stating that the loan has been “service released.” What this means is that the seller’s mortgage has been transferred to a new servicer and the short sale listing agent or negotiator now has to begin the process all over again. There have even been accusations that this occurs in order for certain short sale lenders to forego payment of the short sale incentive. Whatever the case, this is one of the many reasons that people become frustrated with the short sale process.
- Short Sale Lenders Make New Rules. Another common trend is one where the short sale lender insists upon certain conditions or terms when the short sale lender is not the owner of the property. These could include mandating that the property be listed on an auction website, requiring the agent to stipulate certain things on the local MLS, or requiring the agent to market the property in a certain way. Remember that unless the property reverts to the bank after foreclosure auction (sometimes called a sheriff sale), the short sale lender is not the owner of the property.
Often, when working short sales, agents find themselves between a rock and a hard place. On the one hand, agents have a fiduciary duty to the seller. On the other hand, in order to get approval, savvy agents need to figure out how to work through much of the bureaucracy at the lending institutions. Just hope that your short sale doesn’t get service released after you’ve worked through all the red tape!
Austin tops the list of best places to buy a home
When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?
Looking at the bigger picture
(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).
That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).
They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.
“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”
Average age of houses on the rise, so is it now better or worse to buy new?
With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.
The average home age is higher than ever
(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.
With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.
Prices of new homes on the rise
Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.
Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?
The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.
Why Realtors are vulnerable to these rapid changes
(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.
Note: We’ll let you decide which company plays which role in the image above.
So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.
1. Zillow poaches top talent, Move/NAR sues
It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.
Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.
2. Two major media brands emerge
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