How Realtors Sell Their Own Homes

Click on the title to link. This is an interesting article about whether Realtors sell their own homes for more than their clients, and, if so, what they do to do so.

The article says:

Most people have heard of the well-publicized statistical evidence that that when real estate agents sell their own homes, they tend to keep them on the market longer (by about 10 days) and get a higher sale price (by about 3%) than when they sell homes for their clients.

The article does point out the fact that the folks who wrote a book about this conclude that it must be greed on the Realtors part (in essence) because the additional commission is so little that they figure why bother getting a little higher price for a client. That's quite the leap, don't you think? That reminds me of this time I saw an elephant at the zoo, and, of all things, a pink crayon on the ground by their cage. I naturally concluded that there must be pink elephants then. Oh, wait...

That's the same stupid logic that the author of the book has taken. Let's take the facts instead of jumping to ridiculous conclusions.

1. Whose the seller the Realtor is dealing with when they sell their own house? That's right, themselves. I think they now best their own tolerance for risk, and what they will or will not take. When dealing with clients, all you can do is present the facts and let the sellers make an educated decision. One of those facts will be that they could turn down offer X in the hopes for another 3% (let's just use the same percentage the book says Realtors make more of when selling their home). I don't know many people who would jump at that offer unless they were hell bent on a certain price.

2. With knowledge comes power (or so they say). The job our any Realtor (or lender, for that matter) is to educate people so they can make the best possible decision for them. However, that is not always easy. People hear what they want to hear. So I could tell you that you should probably reject this offer and wait for a better one. But that does not mean you are going to listen to me.

Anyways, there are more that we could go on with. The bottom line is this...I have no doubt that Realtors make more on their homes than their clients when they sell. But that because they know the seller better than anybody else (themselves), and they know exactly what to do because they do it for a living (hence the fact that their homes are also on the market 10 days longer; they trust what they know). I'm not saying you need a Realtor to sell your home. But if you use one, then make sure you work with one you trust 100%. Get referrals, do not work with those you run into at an open house.

We work with phenomenal Realtors. If you need their services than the place to start is here with us so we can get you with one that we know will treat you like you should be treated. So give us a call.

10 First Time Buyer

Click on the title to link. This is a good article about first time homebuyer mistakes that can really affect your search for a house. Read through it and share any questions you may have with us.

6 More Hurdles for Home Financing

Click on the title to link. We changed the title of our post just slightly from the article to reflect the fact that the hurdles listed in the article are really six more hurdles. They are the major ones indeed, but there are so many that you could practically write a short book about it.

The bottom line? If you have not got a mortgage in a couple of years then you need to know that this is not "business as usual" anymore. In fact, it is so ridiculous sometimes that it can be maddening. We deal with it everyday and it is insanity what some of these lenders deem necessary. About the only thing left to analyze is urine samples. And don't put it past our current government to move in that direction (kidding, mostly).

Regardless, rates are insanely low. We just keep waiting for them to go up, and they keep going down. Obtaining a mortgage before could be unpleasant because of the dope you were working with. Now it can down right lead you to craziness UNLESS you are working with someone you trust. Now, more than ever, it is critical that you work with someone who is referred to you, or can really show you how they work. If they cannot do that then run. We are here to help walk you through all of this, hand in hand. That is the only way you will have a smooth and understandable process.

Mortgage Terms Now In Plain English? Funny.

Click on the title to link to this ridiculous article.
Oh my, where do we start? This could be one of the most uneducated articles we have read in some time. This is just the latest example of part of the problem..people like James R. Hagerty with the Wall Street Journal who write articles as if they actually know what they are talking about. I guess "investigative reporting" is a lost art form these days.

I have a question, has anything the government ever come up with "simplified" the issue? Please, I beg you, let me know if you can think of one. This is yet another example of people coming up with a "solution" who now absolutely nothing (and that is not overstated) about what they are trying to fix. The issue is not fees changing at closing. The issue is that our industry is full of idiots who have no ethics and, therefore, get away with it. How do they get away with it? Because nobody governs the established "laws". So what's the answer, according to the government, well let's create a "simplified" form that the lenders and brokers have to "commit" to. But let's not make them actually show how they get the numbers. Let's instead hide the details and only show the consumer the number the lender and brokers have to "commit" to. Make sense? Hardly.

This new GFE (Good Faith Estimate) is undoubtedly the dumbest, most confusing form we now have to deal with. It is so confusing that we are going to be using the old GFE to explain the new one. We continue to stand utterly amazed at how these dopes in Washington come up with this stuff without so much as consulting people who actually know what they are doing. Is it really that difficult? Instead they have come up with a form that goes from one to three pages, shows no detail, does not give the PITI (Principal, Interest, Taxes and Insurance) payment anywhere, encourages to shop instead of working with people you actually have been referred to and trust, and clarifies one thing...nothing.

So just know that we are here to help walk you through the, now, more confusing and less understandable mortgage process. And remember this, we are 100% referral because we treat people the way they should and want to be treated. If lenders and brokers did that then the need for stupid forms like this would not exist. Don't kid yourself into thinking this form "protects" you. Forms and rules will not protect you (trust us, we see it all the time from people who come to us from other places). All that will protect your interests is working with a company, like Premier Choice Mortgage, that will actually do what is in your best interest and not their own.

An Invisible Threat to Home Values

Click on the title to link. This is a good article for those looking at buying a house right now.

Details on the New, Extended Tax Credit

Click on the title to link. As you probably know by now, the Feds have extended the tax credit. Additionally, they broadened the net to include existing homeowners who meet certain guidelines. Read this helpful article to get the "down low".

How Much House Can You Afford?

Click on the title to link. This is a good resource for you. Just keep in mind that we have all sorts of resources for you on our regular site, www.MyPremierAdvisors.com.

Tax Credit Effect

Click on the title to link. There is no doubt the tax credit is driving the housing market right now. Homes in ABQ under 200K are going pretty fast, especially the remodeled ones on the east side. You have until Dec 1 of this year before it ends.

Top 5 Home Buying Blunders

Click on the title to link.

Bad Credit...Get A Divorce?

We received a call today from a client who had been referred by their Realtor to a lender. The spouse had some credit issues and the other one had great credit. So what does the lender counsel them to do? GET A DIVORCE! Wow, that is really great advising on their part...NOT!! What morons.
There are two lessons here:
1. Do not just blindly go wherever a Realtor tells you because it does not mean the lender they are referring you to is actually any good.
2. Please use us as a resource to walk you through this mess. We are here to serve your needs.

The Sad Truth...

Click on the title to link.
The title of this article sums it up perfectly, "One casualty of the recession: U.S. mobility. People would like to move, but can't, and that prolongs the economic agony."

What Are Short Sales?

Click on the title to link to this informative video. Remember, we are always here to answer questions and walk you through.

Rate Update

The bubble in the mortgage markets finally and with super hyper speed, blew up today. After holding and holding, while the 10 yr note rate climbed, mortgage rates jumped today to levels not seen in many months. We have been warning the mortgage markets couldn't hold on forever while treasury rates increased. Mortgage lenders became way too complacent with hedging risk, believing apparently that the $1.25T the Fed committed to buy would keep mortgage rates from increasing.
Today, from almost the beginning mortgage markets looked very unstable. Yields on Fannie Mae and Freddie Mac mortgage bonds rose for a fourth day, after yesterday for the first time exceeding where they stood before the Federal Reserve announced it would expand purchases to drive down loan rates. It is finally hitting home that the Fed has a serious problem; the problem is how to keep mortgage rates down, the housing markets are the key to any economic recovery and one of the keys to getting the housing sector back on track is keeping mortgage rates affordable and low. It was widely thought that buying $1.25T of MBSs would do it. Not the case; we all know about the massive supply Treasury has to sell in the debt markets, as we have noted it is unlikely that can happen (raising $200B a month along the yield curve, not including T-bills under 1 yr) without higher rates and the potential of creating inflation fears. Today may be a Waterloo for the Fed; what to do? Buy more treasuries, buy more mortgages? Markets are not going to be placated by either move; the Fed can't keep it up and as the US debt increases foreign central banks, led by China, may make good on recent comments to stop buying US debt.
Who then will fund our deficits and the Obama Administration's aggressive fiscal budgets? The US is completely dependent on foreign investments to fund our debt and that point is beginning to take front page. Big hit in the equity markets this afternoon on the hard hits taken in the mortgage markets. Without lower mortgage rates the economy isn't going to recover at the pace recent thoughts had developed. If housing and home prices are not stabilized there isn't going to be much of a recovery based on the timeframe markets had been expecting. The $35B 5-yrs went at 2.310% with a 2.32 bid-to-cover and indirect take of 44.2%, the outing was solid. The results were against an average 2.13 cover over the past 16 auction since the start of 2008, and a 29.2% indirect bidder take. The market had been looking for a solid showing, and while this was less impressive than the 2-yrs, that was also expected. The market had been looking for a draw of 2.33% plus and liked the lower yield. More Treasury borrowing tomorrow; $26B of 7 yr notes will complete this week's $101B of borrowing. Markets will have two weeks to breathe before Treasury comes back with 3 yr, 10 yr and 30 yr bond auctions on June 9, 10, and 11. Tomorrow weekly jobless claims at 8:30 expected to be up 5K; and April durable goods orders (+0.5%). At 10:00 Apr new home sales are expected to be up 1.8%. The selling today adds to the technically oversold markets. Mortgage rates cannot stand against the increase in long term treasury rates. The spread between the 10 yr note and 30 yr mortgages came back in line two weeks ago as we reported, back to about 165 basis point from a high of 270 basis point six months ago.
Keep all rate locks locked and strap in for a significant increase in market volatility with mortgage prices swinging with treasuries in large daily increments.

Foreclosure Update

Click on the title to link to the article. Foreclosures are still hurting the economy, and probably will for the foreseable future.

Getting Things In The Mail To Refi?

Many of you are probably getting stuff in the mail making all these claims about rates and skipping payments. We continue to hear from our clients they are getting these things, and they typically talk about rates in the low 4's and getting to skip 2 payments.

Well, like you have heard before, if it sounds too good to be true then it probably is. You most certainly can get rates in the low 4's...if you are paying a fair amount in points and/or fees. And the whole skipping payments thing is just a ploy to get you to call. Any loan you do, no matter what type it is, you will "skip" at least a payment because you are paying interest at closing as part of your pre-paid fees.

Bottom line...if you care thinking about refinancing and want to see what reality is in an up front, honest, ethical way then you need to call us at 830-9685. Don't trust the letter you get in the mail, call us.

Short Sales

Click on the title to link. If you are in this situation we can help. Again, you need to talk with people who will, honestly and bluntly, tell you the realities here and walk you through the process. It would be our pleasure to do that with you.

Mortgage Fees

Click on the title to link.
Call us crazy, but you sure would think that people who call themselves "experts" would actually know a bit about what they are talking about before writing and publishing an article. We see this far, far too often; people who really do not have a clue, yet think they do (hey, that rhymes).
This is a classic example. This article is about mortgage fees you should "beware of". The first one on the list is Processing Fees. Although we have seen excessive processing fees, and lenders can/will run this up to make it look like you are getting a better deal because you are not paying points (but they get it in this manner, as an example), this fee is very common. We charge a processing fee on most our loans because that is money we actually use to pay our Processor (which, in our opinion, is the most critical aspect to any process). So this is not a random fee thrown out there for fun (as it can be with many other lenders). But it is, admittedly, a fee we have complete and total control over.
The problem with this authors article is they equate processing fees with underwriting fees, as an example. That is like comparing cats and dogs. OK, they are both animals but they are not both types of cats. One is a cat; one is a dog. An underwriting fee is something that, get this, the lender charges to underwrite the loan. We have zero control over this fee. It is what it is, and it must be paid to get the loan from that lender. EVERY lender has an underwriting fee, although it is often called an Administration Fee. This author speaks of "application fees" like they are normal and expected. We have NEVER charged this fee. Again, some lenders do this all the time to try and get you to commit to them. But this is a great example of why consumers get so stinking confused...because people like this write articles that are so misleading and not a "full picture". As a result, nobody knows what to believe.
There is so much garbage in this article that we could go on and on. Everyone of these fees to "beware of" are written in such an uneducated, uninformed way it is amazing it gets published. For real advice that is true and accurate stope reading this type garbage and call us instead.
As we have said many times before, the bottom line is you MUST let us educate you as to the realities of this business. Lenders are not worried about you understanding things. They are, however, worried about getting you closed as quickly as possible so they can move on to the next person. We could not possibly be more opposite in this manner. Of course our goal is to get you through as quickly as is required or desired. But you have got to understand how this all works and what you are getting. Otherwise, like we see way too often, you will think you are getting a better deal and, in reality, you are getting hosed. Call us at 830-9685 and we will walk you through it.

More First Time Buyer Info

Click on the title to link. We are starting to look a bit blue in the face, but let us say it again...NOW IS THE TIME TO BUY YOUR FIRST HOUSE. Call us and we will start the process of walking you through the great adventure. 505-830-9685 or info@MyPremierAdvisors.com.

Beating The Horse...

Just so you know it is not just us saying all we are saying about first time buyers. Now is THE time, folks.

Visit msnbc.com for Breaking News, World News, and News about the Economy

First Time Buyer Tips

Click on the title to link. This is a good article that came out today with some tips for first time buyers. It is a good summary of things to look for and steps to take. However, just remember that we are here to walk you through the process. We work with many first time buyers and enjoy the process of helping them learn everything they need to know, and them hand holding them through it.