They're Back - 100% LTV

Well, I can tell we are all slowly getting back on proverbial real estate "horse".  It was not too long ago that I could get a young professional into a 500K home without any downpayment.  Yep, that went away with the financial meltdown. To steal a term from the beloved Arnold Schwarzenegger - "I'll be back".

As a real estate professional I surely can remember thinking "Boy, those were the days!".  Welp, strap on your bootstraps cowboys.  I found a 100% conforming professional mortgage for up to 500K!  I know, us conservative folk say that was not then, and is not now, a prudent decision.  I do not personally disagree with that sentiment in general.  However, the key word in this mortgage description  is professional.  Are you a resident doctor?  If you are, then IMO you are professional that may need this type of product.  In my PC opinion...give me a call  (I am not a loan officer nor a mortgage professional) I will be happy to connect you to those in the know!

I changed my mind - TAKE IT BACK!

Wow! What a great time everyone had at the barbeque! Wish everyone could have been there. We had around 60 people attend - the bounce house and the barbeque were the biggest hits of the night. The goal of the evening was to thank all of my clients for their continued support and loyalty. I know that it was a success!

The goal of any sale is the actual closing. The Buyers and the Sellers meeting at a predetermined location to exchange and sign many legal documents the most important of which is , well, the money. I have found that lending has definately tightened up substantially. I posted earlier some of the newer tiers of credit requirements.

My current frustration is focused on the lack of respect of the official contract. Buyers need to remember that when they put an offer on the table and it is accepted - IT IS A LEGAL CONTRACT! This document requires that you buy the home. If you change your mind you may be opening yourself up to a bunch of legal issues. Make certain this is the home for you before setting those expectations. If the inspection is that important to you ask if you can inspect the home prior to placing an offer on the home. You may loose more than just your earnest money if you back out!!

7 COUNTERS LATER..............

It has come to my attention that the devil is in the details. Selling a home seemed pretty easy in the 1990's. I had one transaction that lasted 10 counters but for the most part the negotiations tend to end at around 2 or 3. It is safe to assume that after two counters both of the parties seem to be somewhat emotionally bought into the process. After the 4th counter people tend to get angry. After the 6th counter the REALTORS typically need shot!! Just kidding of course!

On April 28th I started the process of negotiations on a home in Indianapolis. It seemed to be a bit trivial since the buyer was way off the price mark. However, the deal was signed off today-9 days and 7 counter offers later! Because of the changes in the lending/lender environment I have started to incorporate a few updates to the traditional clauses. I need an appraisal done NOW!! I will NOT give possession at closing (unless the home is not occupied of course). I won't take the home off the market without a preapproval backed up with a few phone calls. And, inspections are to take place AFTER the appraisal is completed.

It seems as though the value of homes today are not based on market value or what someone will pay for the home. We are now faced with prices that may be substantiated by the appraiser. Do you have anything that you added to your contract? If so, let me know! I would love to hear your ideas!