All of us are fully aware of the recent changes in the appraisal industry.  Another victim of yesterday’s market, there is now a “hands off” message that lenders take very seriously.

What I have observed is that the bigger the lender, the more distance that exists between loan officers and appraisers.

For instance, it’s my understanding that Bank of America uses a third party company to set up appraisers…whereas some of the more local lenders are able to “select” a pool of local appraisers thru whom they can rotate business.

As a listing agent, I have found that my input in this new climate is crucial.  My job is not to influence, but to educate.

In a couple of instances, I have opened the door for appraisers who were clearly outside of their geographical comfort zone and the information and comps I have provided were important in verifying a clear market value.

A recent experience clearly confirmed the need for listing agents to meet with appraisers.  The names, location, and exact pricing have been changed to protect the innocent…but, otherwise, this is a 100% true story.

In September, I received an offer on a condo that was listed for $1.45 million in Georgetown (three cheers for Georgetown, right? But that’s another story of market holding strong).  After a round of negotiation, the seller accepted an offer for $1.375 million.  The lender for the buyer was a large, national company.

Although I asked the buyer’s agent to let me know when the appraisal was scheduled, the lender did not  keep either of us in the loop (perhaps he couldn’t…because he, too, was not in the loop) and, because the building had a concierge, the appraiser did his on site inspection without giving me notice. Continue reading this post

Continue reading this post

Proverbs 20:14 - “Its no good, its no good!” says the buyer; then off he goes and boasts about his purchase.

The economy has been wreaking havoc on on rental owners as well as home owners. The great unwinding of the debt economy and the collapse of available credit has caused job loss, underemployment and a recession psychology causing consumers to pull back, not being sure if they are next to loss work.  Afraid of catching a falling knife, prospective buyers are waiting on  the sidelines.

The housing industry has been pinging property owners to try and get a sense of the degree of difficulty out there. I wanted to share with you some of what these surveys reveal. Continue reading this post

People often ask me the “crystal ball” question, “What do you think the market is going to do?”  I check off the many indicators I watch, including unemployment, demand, and inventory.

I then follow up with one of the most important indicators, “What do you think the market is going to do?”

In 2008, Austin’s real estate market was relatively healthy but flat.  We saw slight appreciation in the median price.  However, when speaking with clients & friends not in the business, it was their impression that the sky had and was falling.

Luckily, in Austin, the sky didn’t fall, but it did drop.  Home prices have depreciated slightly in 2009.  There are many factors that combine to cause this, but the public’s general impression of the market is a big one.

Since all real estate is local, it seems a bit counterproductive to watch national real estate trends closely.  Continue reading this post

The economy’s decline leveled off significantly from April through June, confirming  that the worst is behind us.

GDP declined at an annualized rate of 1 percent in the second quarter, after shrinking an amazing 6.4 percent earlier this year. But consumer spending, 70 percent of economic activity,  continues to fall as Americans continue to save and  reduce debt. Economists express concern that our basic spending habits have been permanently altered by this great recession. This is also having an effect on rentals as renters downsize or insist on rent reductions.

With this as a backdrop we looked at rental rates which a are a prime factor in evaluating a property. We clearly have a long way to go. The Dept of Commerce chart indicates we are at a fragile beginning of a recovery. The key to successful property ownership now will be to keep it occupied and ride this out. Continue reading this post

Home Sales Results by MSA For AgentEvaluator® Subscribers

Earlier this week, MDA Dataquick reported that in HomeGain’s backyard, the San Francisco Bay area, home sales in June had jumped by 20% YOY. Solano County, a long term poster child and whipping boy for the foreclosure crisis, saw a whopping 67% increase in sales during the same time and reached sales levels not seen since August 2006.

The million dollar question is, have things bottomed out?

It’s sure starting to seem that way. Prices have started to stabilize, or in some markets actually beginning to go up as foreclosures are accounting for a less percentage of the total properties sold.

In the recent HomeGain home prices survey, Gillian Goldrich of Coldwell Banker Residential Brokerage in Woodbridge, CT noted “Markets are definitely picking up…buyers  are getting off the fence and taking advantage of tremendous buys.” Many of our agents expressed similar opinions as they are seeing declining inventory levels , raising prices and multiple offers.

Looking Back

The first half of 2009 was a memorable one for HomeGain agents as several achievements were reached. We  inducted our second agent (Alan Shafran) into the HomeGain Million Dollar Club for generating over 1 million dollars in gross closed commissions. Seventeen agents were inducted into the HomeGain Diamond Club for generating a half-million dollars in gross closed commissions.

Combined with the dozens of agents inducted into each of our Silver, Gold and Platinum Clubs, HomeGain AgentEvaluator agents used the turbulent conditions to further grow and expand their market opportunities.

Top MSA’s for First Half of 2009:                    Continue reading this post