I Am A Local Real Estate Expert – Zillow is Not

Whether you are thinking of buying a home or possibly selling your home you more than likely have stumbled upon Zillow and thought you hit the mother-load of real estate information!  It’s a fancy site with Zestimates, has homes marked on a map that are either currently listed or have recently sold, and you can spy on your best friends home on the other side of town to see what it’s worth and that’s cool, right?  Wrong!  Well, if spying on your neighbor is cool to you then that’s your business BUT if you are thinking of buying or selling a home then you want to steer clear of Zillow.

You see, I cringe when I speak with a buyer or seller and they come at me with all their research from Zillow.  They already have a predetermined listprice based on what they learned from Zillow or they think they already know if a home is over or under priced with information they received from Zillow.  Well, let me set the record straight – more often then not, Zillow is inaccurate.

Zillow is a computer generated program that acquires information from various sources and then runs it through a program to give you information based on a mathematical equation.  Trust me, there is no human sitting at a desk inputting data about all of the homes throughout the country.  What Zillow can not replicate and therefore will never be able to accurately price real estate is the human touch and the ability to physically see into other properties.

Zillow does not take into account upgrades and/or updates to a home or lack thereof.  It doesn’t know:

• While your home may have Formica countertops your neighbors have all upgraded to solid surface counter tops.
  
• You have replaced your carpet, vinyl in the kitchen and bathrooms and updated the appliances while your neighbors have carpets that are worn thin, 15 year old outdated vinyl and brass fixtures from the 80s
• ZILLOW DOES NOT KNOW THAT THE HOME NEXT TO YOURS WAS A FORECLOSURE AND THE PREVIOUS OWNER RIPPED OUT ALL THE CABINETS, TOILETS AND MADE OFF WITH THE COMPRESSOR UNIT TO THE HVAC.

All Zillow knows is what is found on other public sites – statistics.  There is no room for the human touch.

So, please, if you are thinking of buying or selling a home don’t consider Zillow as your source for pricing.  It’s a fun site – lot’s of bells and whistles – cool tools and great graphics but that’s about it.  If you are serious about buying or selling real estate then you want to rely on a real estate professional that can add the human element and knows your neighborhood and the local real estate market. 

                         

Whether you are buying or selling Real Estate in Wake Forest NC it just makes sense to use a Realtor® that knows the area!  I live here, work here and play here – I call Wake Forest NC home!  For more information regarding Wake Forest NC be sure to visit my websites:

• Leesa Finley – Homes for Sale in Wake Forest NC, Wake Forest NC schools, restaurants, shops, entertainment and MORE….
• Circa Properties – My company website with information for the entire Raleigh NC area including Cary, Apex, Garner, Franklinton, Youngsville, Holly Springs and MORE….

 

 

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Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

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Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

Just when I thought I could do a blog post rant about what I don’t like about NAR, they up and go do something noble. Those industry  jerks just got my love back. NAR expanded the Code of Ethics to include sexual orientation as something that REALTORs® should not pratice discrimination on. This gors for professional service, agreements, or employment practices. With all the anti-gay legislation marriage legislation despite the fact that most Americans feel fine with homosexuality, I never thought that NAR would do something like this. I thought they would play it sale, and not “rock the boat”. They did. I know the cynics will say well this is purely about business but I am not cynical here. Although the tide has been turning on peoples attitude about sexual orientation, there is still a sizable portion of the country that does not. Remember how California was considered the new state of tolerance in all things? There is an intriguing court battle on gay marriage going on right now.

I should add I am from the Bible Belt, Oklahoma. This is the place where many REALTORS® will gladly but not gayly take a copmmission from a gay, lesbian, or transgender client, then go to church on Sunday and consider it an abomination. Their choice, not mine. I know it is too much to ask NAR, and probably not their job either, to push even harder so that at the very least this sizable group of Americans will have at the very least spousal rights. Growing up in the 1950′s I am astounded how far this country has come in 4 decades. We have more equal rights for women, African-Americans have the legal  right to vote without discrimination, Lobotomies are no longer considered one of the  first options for psychological care, and something happened I never thought I would see in my lifetime, an African-American President. We have come a long way baby. Now I would love to see REALTORS® lead the charge for marriage rights for all people. Besides, I have been divorced twice, give someone else a crack at that! 

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Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

You can make a difference – you have 30 days to comment against FHA’s proposals

 

With a difficult economy and possibly some new FHA mortgage changes coming in the new future, this could be time to make your voice heard. HUD made this announce back in January 20th, 2010 - FHA announces policy changes to address risk and strengthen finances – I parlayed this announcement into layman’s terms. – FHA loans and some possible mortgage changes.

 

So now, FHA just announced that there will be a 30 day period for comments on these issues described above.  These proposals are designed to limit the risk in regards to the Mutual Mortgage Insurance Fund and at the same time, trying to promote sustainable homeownership for FHA borrowers.

 

 

 

The 3 possible changes to FHA Loans :

 

1. Changing the combination of credit scores and downpayments. You will need a credit score of 580 or above to still be eligible for the regular 3.5% downpayment. If below 580, you will be required to put 10% down. And FHA loans will not allow any loans with credit scores below 500.

My opinion :  I am not concerned with this proposal. Most lenders require credit scores of 620 or higher on FHA loans. I wrote about it here. – FHA home loans have no minimum credit scores – So FHA, you can have this one.

 

2. The reduction of seller concessions from 6% to 3%. Many of us know that this could have a huge impact on many different housing markets.

My opinion : I truly think this could affect those buying homes from $150,000 and below. Especially those homes prices at $100,000 and below. That would mean on a $100,000 home, the buyer could only get $3,000 of help towards closing costs. – FHA, since I gave you #1, I want #2, and keep it at 6%. Update… keep this in mind – If a borrower has to come up with more money now, what does that do to their cash reserves in many cases.  In troubled times, does this mean that they will default quicker now?

 

3. To tighten FHA underwriting standards for manually underwritten loans. FHA’s purpose would be when using compensating factors while underwriting, lenders will be required to consider those factors which would be best predictive indicators of the performance of the loan.

My opinion : I guess I would have to wait for a better explanation letter in the mortgagee letter, if this is approved.  You already are required top have compensating factors when manually underwriting a FHA loan, making sure that the loan will perform. I just think this is FHA’s way of saying that they want underwriters to be more critical when approving a loan and to have more solid compensating factors. Ex. Instead of making sure that your borrower had 2 months in reserves (money left over after closing to cover 2 mortgage payments), that they would like to see 6 months. Who really knows on this one. Could be more political chit chat.

 

 

 

Conclusion : As I mentioned above, I am not worried about numbers 1 and 3. But number 2 could have an impact on the housing market in many areas. On the positive side of things, HUD could have increased the down payment to 5%. This was talked about in congress several times, but shot down. Talk of FHA loans raising the down payment to 5%. -  Here is the argument about why some want more money down. The FHA argument - I want more skin in the game.

 

 

Where and how to comment :

Regulations.gov – (main site) please to search for government proposals.I give the specific page below, where to comment.

 

Here is the link to the different proposals and FHA’s reasoning’s for such proposals. Federal Register for HUD changes and the reasons why. If you go to the middle of the first page, you will see how they explain the different ways to comment. They highly suggest doing it electronically, which I mention below.

 

 

CALL to ACTION : Send this to other agents and loan officers.  Don’t hesitate to reblog this, to get the message out.

 

Here is the actual page to go and make your comments - Comments for reduction of seller concessions and new loan to value with credit scores - Click submit a comment which is on the right side of this page, in blue.

 

 

 

Important Update as of 7/17/10 @ 1:05 pm – Please read and make your voice heard – If you are going to comment to FHA, please copy and paste this link into your comment :  http://activerain.com/blogsview/1749213/issues-regarding-the-3-seller-help-proposal-by-fha-can-we-fight-fha-loans-with-solutions-yes-   (this article is below)

Issues regarding the 3% seller help proposal by FHA – Can we fight FHA Loans with solutions?? – YES !!!

 

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

Many people will tend to look at the success of others by their status, title, label or how financially stable they are.  The career choice of an individual just starting out in the work force most likely is an employee who works for a monthly salary or paid by the hour.

During the course of our lives we settle in to a ‘job’ (career) that we enjoy…or at the very least one that we make a good living so as to support ourselves and families.  We may change paths frequently or we remain on the ladder of success or just a routine to pay the bills.

I’m getting to the story….bear with me.

 The CEO of a company most likely makes a lot of money (right?)  He/She has worked their way up the ladder and became so successful that they are head of the company and have many others working underneath them; therefore, they most likely have a BIG income.

On the other hand, there are the Independent Contractors who are Small Business Owners. Bob’s Pizza’s owner is Bob. Bob is well respected in the community for his deep dish pizza with homemade sausage on it. His status is OWNER so he of course he makes a bunch of money. Right?

I changed career paths a few times during the course of my life. I was Administrative Assistant for a Family Law Attorney for many years and did the same for a non-profit program for structured living. I’ve waitressed in fine dining and volunteered for youth centers.

And then I chose the path of Real Estate.

I remember often the five second conversation I had with a  client’s 10 year old boy a few years ago. He asked, “You’re rich because you sell houses, right?”  I politely said, “No, I’m not rich but I do get my bills paid.”  What else do I say to a young boy who ‘heard’  that all real estate agents are rich?

Well, here’s a bit of info for all youngsters and elders alike:

• The market is slow, prices are up and down and there aren’t as many closed sales as previous years.  (I really wish I were “rich” like in those days lol)
• I live in Hawaii where cost of living is a bit higher  than many other states.  (But I go to Costco just like anyone else to ‘get a deal’)
• Homes for sale or rent are higher than many states. Therefore, my morgage is higher than most too; so I’m not exempt from payments either.
• I have to pay federal, state and Hawaii General Excise Tax every quarter on all money I make.  (So contrary to popular believe I am not exempt to taxes)
• I do not get that whole % commission you believe I get….. because both the buyer/seller brokerage get their cut  (on top of franchise fees, Errors and Omissions  Insurance and so on and so forth…not to mention if it’s a short sale and the bank hacks the commission ….or else)
• ALL expenses come out of MY pocket and I do not get a salary or hourly rate to cover ANY of these expenses.  (I’ve had a couple clients flat out tell me that I can stop and buy them lunch because I can deduct it)
• I can’t really ‘afford’ to hand out money, time and incur a lot of expenses (lunch, gas, gifts) to be your tour guide because you’re bored that day. (or so you can get all the info you can to list your house FSBO…Good luck!)  

So, in the end what am I left with?

Taking care of my client’s needs and respected for a job well done.

I’ll remember to tell that 10 year old boy the next time we meet…..

That yes….. I am rich.

 

                                                                   

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Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

You would think that all the stuff published by financial advice websites would have some consumers more educated about the role of real estate agents, especially in the case of a short sale. They don’t. I have to educate many who reach out to me and set them straight on certain ideas in their head that they get from who knows where- most likely these asinine “what your agent hopes you never know” online columns that sow discord rather than educate. 

A few brief examples:

• The Open Listing. The guy is essentially a FSBO but wants me to do the short sale once he gets a buyer. Do it Yourself is fine if you are building a picnic table, but not saving your financial rear. When it is explained that he saves nothing the way he theoretically would if he had, say, equity, I still get blank stares. 
• The Un-Bundler. The Un-Bundler wants me to do their short sale, but wants to keep cousin Ethel as the listing agent. I have to explain to this person that the only compensation paid by lenders in a short sale is a brokerage fee, and I cannot take an upfront fee from him. He has a choice: List with me or have cousin Ethel dock her license with me. But I’m not doing all the dirty work for another agent. 
• The Competitor. The competitor wants half my commission if they find the buyer. I have to explain to them that I don’t compete with clients, but more importantly, paying them a rebate in a short sale is bank fraud. They probably got this advice off some website somewhere that isn’t talking about short sales specifically but addresses negotiating commissions. 

These three people are bad enough in a regular sale, but in a short sale they are nuts. What they need to understand is that if you want my expertise, you have to hire me under the terms of an Exclusive Right to Sell agreement. This doesn’t make you “captive” any more than it makes me a captive- I am held to the highest standards of ethics and service under those terms. You don’t haggle over services with your plumber, lawyer, electrician or doctor. Add me to the list. Can you imagine telling your electrician “If I help a little will you give me a lower bill?” You’ll get electrocuted! Moreover, once you are a short sale, you need an expert at the helm, and do it yourself is no longer a viable option. Straight talk: You’ve been doing it yourself thus far and now you face foreclosure. Fire yourself and hire me. 

 

• We Are Westchester County, NY Real Estate. Reach Phil at (914) 723-8900.
• J. Philip Faranda, Broker-owner, J. Philip Real Estate, LLC. 2010 Vice President, Westchester-Putnam Multiple Listing Service. 
• I am one of New York’s premier short sale REALTORS. 
• J. Philip Serves Briarcliff Manor, Ossining, Croton, the River Towns, Westchester County, and the bedroom counties of New York City.
• Free MLS Search! Register for a Free Listingbook account and search the MLS like an agent. 
• I am hiring agents. 

All content/images, unless noted, are the property of J. Philip Faranda & may not be used without permission

_______________________________________________________________________________________________________

Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com 

_______________________________________________________________________________________________________

Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com

_______________________________________________________________________________________________________

Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com

If you, or one of your Realtor friends, have one of those $8,000 Federal Tax Credit sales in the pipeline, and are hoping that it closes by June 30th… ya better light several candles, and get out your rosary beads… NOW.

Right now, the program deadline for getting those sales closed and funded… is June 30th.  If you are nursing along one of those sales… and if your buyer’s or seller’s loan needs more time… like into July, or even further… as I said… right now that extension bill… is dead.

The latest from the United States Senate shows that the bill failed to get enough votes in the Senate last night… and by a vote of 57 to 41… did NOT get the 60 votes it needed to bring the bill to the Senate floor for a final vote… which would have PASSED easily.

All 41 votes against the measure… were by Republicans.  They were invoking the filibuster rule… which puts a roadblock in front of any bill they so choose to filibuster.

The Senate then can vote to “cut off” that “fillibuster”… which would allow the bill, as mentioned above, to come to the Senate floor for a pass/fail vote.

The vote to cut off debate… to cut off the Republican filibuster… was 57 votes to cut off debate and vote on the bill… and 41 votes to stop the bill… and NOT ALLOW a vote on it… which effectively kills the bill.

All that was needed… was for three of the Republican moderates… typically Senator Susan Collins and Senator Olympia Snowe… both  of Maine, and Senator George Voinovich from Ohio… who is retiring from the Senate and will not run for re-election.

The homebuyers Tax Credits extension bill was attached to a Democratic-backed jobs bill and unemployment benefits bill.  Again… all 41 Republicans voted against the bill… which effectively killed it.

Miracles may happen… but right now it looks bleak.  Budget Committee Chairman Kent Conrad (a Democrat from North Dakota) said that the bill may not be voted on again until after the July 4 recess… when Congress comes back into session on July 12.

Note: The vote in the Senate was FOR extending the Tax Credit Deadline for closings.  The vote was 57 FOR and 41 AGAINST.  But… in this case, because of the Republicans invoking the filibuster tactic, the bill needed to pass with 60 votes FOR it.  So, it missed passing by three votes.  If ONLY three Republicans had voted FOR it… instead of ZERO voting for it… it would have passed.

_______________________________________________________________________________________________________

Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com

_______________________________________________________________________________________________________

Let’s Get Connected!

If you’re looking for homes for sale in Midtown Tulsa, OK or just more information on Midtown Tulsa Real Estate, you can visit my primary website at www.loricain.com