OBX Real Estate Guy

Home buyers and refinancers applying for a mortgage are being caught off guard in what all lenders are asking for when approving a loan.

The Wall Street Journal reports an incident where a borrower was even asked for a copy of her divorce decree — from two years ago — and asked to explain a deposit of about $200 into her bank account when applying for a mortgage.

Lenders are being more careful in who they issue a loan to nowadays, tightening underwriting standards and carefully documenting applicants’ finances and ability to repay the loan.

Practically nothing is off the table these days when it comes to what a lender may ask for. Lenders may question any deposits to bank accounts, increases in a borrower’s income, and any disputed balance over a late payment, even if it was from years ago. Some lenders are even requesting college transcripts and diplomas in verifying employment history.

Any credit inquiries on a person’s credit invites red flags and more questions from lenders, Rhonda Porter, a loan officer in Seattle, told The Wall Street Journal.

I have customers who know they're a strong [borrower], and they're still asked for additional documentation. Some of them get their feathers ruffled.

Stella Adams, a fair housing advocate in North Carolina, says banks need to lighten up. Banks should return to "solid, old-fashioned underwriting" standards that were used prior to the housing boom and stop making it so difficult for people to get financing.

source:  Wall Street Journal

If you are interested in learning more about the Outer Banks Real Estate market give me a call at 252-489-8491 or email me at hughwilley@sunrealtync.com .  No hassle, no pressure just straight talk about the local real estate market from a no nonsense point of view.

Hugh “Scooter” Willey
Sun Realty
Ph: 252-489-8491
hughwilley@sunrealtync.com

As the home seller, how can you help ensure that your closing is a relaxed, cooperative event? First, enlist your real estate agent's help to ensure that all issues are resolved ahead of time. Repairs should be completed, agreements kept, the house broom-clean and ready for the new owners to move in. The atmosphere doesn't need to become adversarial, and minor upsets should not threaten the entire transaction. If you anticipate a problem, no matter how minor it may seem, be sure to communicate the situation to your real estate agent in advance, so that it can be resolved before the final closing date.

Additionally, be sure you're walking away with ALL the money you're entitled to from the sale of your home. When you're ready to close on the sale of your home and move to your new home, you may be so close to the finish line that you coast, thinking there's nothing left for you to do. Not so fast. It's easy to waste a few dollars here and for mistakes to creep into your closing documents there, all adding up to a bundle of lost profit. Spot money-losing problems with these seven tips.

1.    Take services out of your name.

Avoid a dispute with the buyers after closing over things like fees for the cable service you forgot to discontinue. Contact every utility and service provider to end or transfer service to your new address as of the closing date.  If you’re on an automatic-fill schedule for heating oil or propane, don’t pay for a pre-closing refill that provides free fuel for the new owner. Contact your insurer to terminate coverage on your old home, get coverage on your new home, and ask whether you’re entitled to a refund of prepaid premium.

2.   Spread the word on your change of address
Provide the post office with your forwarding address two to four weeks before the closing. Also notify credit card companies, publication subscription departments, friends and family, and your financial institutions of your new address.

3.   Manage the movers
Scrutinize your moving company’s estimate. If you’re making a long-distance move, which is often billed according to weight, note the weight of your property and watch so the movers don’t use excessive padding to boost the weight. Also check with your homeowners insurer about coverage for your move. Usually movers cover only what they pack.

4.   Do the settlement math

People are only human, so they can make mistakes. The day before your closing, check the math on your HUD-1 Settlement Statement.

5.   Review charges on your settlement statement
Are all mortgages being paid off, and are the payoff amounts correct? If your real estate agent promised you extras—such as a discounted commission or a home warranty policy—make sure that’s included. Also check whether your real estate agent or title company added fees that weren’t disclosed earlier. If any party suggests leaving items off the settlement statement, consult a lawyer about whether that might expose you to legal risk.

6.   Search for missing credits

Be sure that you are properly credited for prepaid expenses, such as property taxes and homeowners’ association fees, if applicable. If you’ve prepaid taxes for the year, you’re entitled to a credit for the time you no longer own the home. Have you been credited for heating oil or propane left in the tank?

7.   Don’t leave money in escrow
End your home sale closing with nothing unresolved. Make sure ALL money is released, which is being held in escrow for you. Avoid leaving sales proceeds in a new escrow to be dickered over later.

Source: HouseLogic.com

If you are interested in learning more about the Outer Banks Real Estate market give me a call at 252-489-8491 or email me at hughwilley@sunrealtync.com .  No hassle, no pressure just straight talk about the local real estate market from a no nonsense point of view.

Hugh “Scooter” Willey
Sun Realty
Ph: 252-489-8491
hughwilley@sunrealtync.com

That's the title of an article that I read recently on Realtor Magazine online:  Homebuyers Caught Off Guard by Bidding War.  Immediately I thought "Really?  Really?" The fact is that it should be no surprise and in my opinion "caught off guard" does not accurately describe what I have personally seen happening.  I have been warning buyers that they better come with their A-Game for few months now.  This is just my take, but I think the caption or the title of the article should have been "Buyers Are Now Starting to Believe What Their Realtors Have Been Telling Them All Along:  There is a Bidding War going on.”

Today’s bidding competitions aren’t the same as the slugfests of the boom days, 2004 to 2006, when just about every property was fought over because of investor speculation and soaring appreciation, and when escalation clauses — committing buyers to automatically increase how much they would bid — went sky high.  They are more of a skirmish, than a war. However, with the caliber of the inventory being less than stellar, buyers must realize that when they find that gem, they best come with the best that they have to offer.  Because just as sure as they fall in love with a property, there will be others falling in love with it almost simultaneously.  Monkey around if you will, you'll find yourself making offers for the sake of making offers and in the end, settling for less than your heart's desire all because.......................well, I'll let you finish that sentence.

Here's my advice to buyers, when you happen upon that house that meets all of your needs/wants/requirements, then it's no time to play games and play like the savvy negotiator.  Have your Realtor®  review sold comps with you to see what homes have been selling for in the area and then make your offer accordingly.  If you don't make your offer based on the available data, then you can probably kiss that home goodbye.

If you are interested in learning more about the Outer Banks Real Estate market give me a call at 252-489-8491 or email me at hughwilley@sunrealtync.com .  No hassle, no pressure just straight talk about the local real estate market from a no nonsense point of view.

Hugh “Scooter” Willey
Sun Realty
Ph: 252-489-8491
hughwilley@sunrealtync.com

Game on!!! A lot of fence sitters (i.e., buyers) have abandoned their perches and are now in the game. The Outer Banks real estate market is red hot with 2012 shaping up to be the breakout year for the market with overall sales up 25% and listings being placed under contract up 11%.


Source: OBAR MLS

In the link below are the compiled Outer Banks real estate market stats by town and location for the 1st Qtr of 2012:  https://docs.google.com/document/d/12YH1qUxFDdmBoJxBTade_kZgmfiOSZf-VGKrmi9g7yE/edit#

Source: Outer Banks Association of REALTORS® compiled MLS data

The current real estate market is very much like the Hunger Games Trilogy as today’s home buyers are playing in fierce competition. Where there used to be great homes for great prices everywhere, the inventory is shrinking and good deals are harder to find. When the best deals arise often times buyers must fight, negotiate, and use their “mentors” (i.e., their realtors to help them navigate the waters).  Not only that but every real estate transaction is filled with surprises just as is every minute of the competition in the Hunger Games. Remember, it’s always easier to do things with a companion, and although we are lucky enough to not have to worry about knives being thrown and mutt-like creatures attacking us, your Realtor “has your back” and can help you catch mistakes before they turn bad. Teamwork is still a great way to make it out of the “game alive” (i.e., with that PERFECT Outer Banks home/condo)!

So, when you find an Outer Banks home/condo that you really want to own - that low ball offer you are contemplating may be rejected and you could lose out because someone else makes a better offer. Make your best offer based on legitimate comparables provided by your Realtor. Stop trying to over analyze the market on your own. As your “Full-Time, Overtime, Anytime” OBX Realtor, I will do a comparative market analysis on the home/condo you want and let you know the value range of what it is worth. I can determine how long it's been for sale and how many price reductions have already been made. So, get pre-qualified by a lender and let’s get together so you can purchase that Outer Banks home/condo that you have been wanting!!!

If you are interested in learning more about the Outer Banks Real Estate market give me a call at 252-489-8491 or email me at hughwilley@sunrealtync.com .  No hassle, no pressure just straight talk about the local real estate market from a no nonsense point of view.

Got Questions?
Hugh "Scooter" Willey
Sun Realty
252-489-8491
www.nagsheadhomes.com

But it’s NOT!

A friend and client sent me this:
"I take this as the surest sign that the housing and mortgage market are stabilized and about to start turning up. I never bet against Goldman Sachs":

Goldman Sachs Group Inc. (GS), which survived the subprime mortgage crisis by making bets on a housing decline, is raising money for a new fund that will buy home-loan bonds to benefit from an improving real-estate market. The U.S. Housing Recovery Fund is expected to finish its first round of capital raising and open April 1, according to a marketing document obtained by Bloomberg News. It will focus on senior-ranked securities without government backing, many of which now carry junk credit grades. Click HERE for more details.

Have a great April!

For information about local real estate, events, home sales and values in the Outer Banks, keep reading our newsletter. 

If you're interested in buying or selling a home/condo in the Outer Banks of NC, Call me at 252-489-8491.
 
Got questions? Ask!  hughwilley@sunrealtync.com or 252-489-8491
Hugh “Scooter” Willey
Sun Realty
www.nagsheadhomes.com

Low interest payments on mortgages have contributed to some of the largest savings. USA Today reports that mortgage interest payments have fallen 30 percent since peaking in 2007. According to the Bureau of Economic Analysis, Americans spent 5.8 percent of their after-tax income paying interest on mortgages, credit cards, car loans, and on other debts — the smallest share since 1977.

While the Federal Reserve has pledged to keep rates low until 2014, there is no assurance that low home/condo prices will continue in the Outer Banks. We are already encountering multiple bids on some homes/condos that are well-priced according to the market and in good locations.

In the current Outer Banks real estate market, the two (Low Prices and Low Interest Rates) have united. That is what makes it a GREAT time to be a buyer!

The above article provides general information about financing, home mortgages, and consequences, but shouldn't be relied upon by readers as financing or legal advice applicable to particular transactions or circumstances. Consult a mortgage lender professional for such advice!

Got questions? Ask!  hughwilley@sunrealtync.com or 252-489-8491
Hugh “Scooter” Willey
Sun Realty
www.nagsheadhomes.com

Barron's offered some good cheer on St. Patrick's Day, with their cover story, Home Prices: Ready to Rebound. And anecdotal evidence seen in the Outer Banks real estate market lately would seem to confirm that with a strong number of homes consistently going under contract every day. Supply is down, demand is up, and that makes for a better housing market

 “Maybe, just maybe, home prices will bottom and begin to turn by the spring of 2013—if not before. Certainly, the economy is doing better these days—the sine qua non for improved demand for housing. Jobs numbers have been up sharply three months in a row, leading to a jump in consumer confidence of late.”   - Barron’s

It may still be too soon to be talking about a return to a healthy economy; but I do believe that there is some stabilization in our near future!  To have a vibrant recovery and economic expansion, housing has to go from being a headwind to a tailwind.

Got questions? Ask! hughwilley@sunrealtync.com or 252-489-8491
Hugh “Scooter” Willey
Sun Realty
www.nagsheadhomes.com