Just my thoughts...

 How Important Are MLS Photos? 

How many times have you seen horrible photos in MLS? I really don't get it, maybe it's my graphic design background, my love of art, landscaping, and presentation. It's the first thing a potential buyer sees when looking for a home...it's so important!

I don't care how ugly the house is, or how dated the interior, you can usually find a couple little vignettes to photograph. You can even make the vignettes: bring flowers, arrange things, groups of 3 work great. Take the photos during the day...a sunny day. Invest in a good camera...I have 3 good cameras. Wide-angle lenses are a must. If your photos don't come out...go back! Most of my listings are within a half hour, no excuses.

 

Good photos help sell a property...it gets more people in the door.

-Just my thoughts.
 

www.TopNHhomes.com

www.JACoteAppraisals.com

 How skewed can the market data be?  

Every market has submarkets, so when you watch the news about double digit declines- it’s all the markets combined. A cookie-cutter subdivision with a price point of $350,000 and up may show a larger decline than an entry-level subdivision. A contemporary home on a lake may show no decline. Bank-owned properties would most likely show the largest decline. All this within the same timeframe/market. They are examples of submarkets…move-up (mid level), entry level, standard cookie cutter, vacation, lake front, bank-owned, or unique style properties.

So depending on what submarkets posted the most sales it would skew the overall market data.  Knowing this you can now postulate that these huge declines are due, in part, from most sales being bank-owned or entry-level in the past 9 months.  It is a false representation of the market.

-Just my thoughts.

HUD Press Release

This is great news for investors!  FHA is temporarily removing the restriction for investors.  FHA didn’t allow a new buyer to purchase a home that was owned less than 3 months by the seller (typically an investor-aka flipper).  The regulation was for curtailing flipping the property.

This change is a smart move for FHA/HUD because many of the homes being purchased by investors are in pretty poor condition and a typical buyer wouldn’t want to, or just couldn’t, purchase the home.  This allows investors to purchase the property, do the necessary improvements, which will usually help the new buyer get a conventional loan on the property.  Many, and I do mean many of these foreclosed properties don’t quality for conventional lending because they are, well, basically a mess!

Doing a quick search for “Flippers” brought up some very negative comments.  They are looked at as the bad guy and that is just inaccurate.  There is good and bad in every aspect of life, profession, business…you get the point.  Flippers are ultimately just investors.  Just like any other opportunity they are looking for a profit…is that bad?  They are assuming the risk.  A property might look like it just needs a couple cans of paint and new baths, but underneath all that could be a dragon rearing it’s ugly head.  The investor will do their due-diligence, but things are missed, and herein lies the risk.

Moving foreclosures off the market is great.  In this market investors will typically price these properties low for a quicker sale and this helps your first-time homebuyer get a house that’s fixed up and a pretty good deal.  Southern New Hampshire has seen it’s fair share of foreclosures, but it has not been the dominant market.  Arms-length transactions have been the norm.

Just my thoughts…

Just finished reading: "Buyers: Why Green is Worth It"

http://realtytimes.com/rtpages/20100222_greenworth.htm

I agree, green is worth it.  From the warm fuzzy feeling you get from doing something good for the environment: your LIVING environment and the GLOBAL environment.  Green is good because you could get a TAX credit.  Green is also good because you may quality for an Energy EFFICIENT mortgage.

Did you even know that there are special mortgages designed that allow you to incorporate the price of an energy efficient improvement into your mortgage?  I just took a fantastic continuing education class that went over some details on this type of mortgage.

HUD's Energy Efficient Mortgage Program:  www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm

 

1. Can be up to $8,000.  Only certain improvements/items quality. 2. You do not need to qualify for the additional funds (up to $8,000). 3. The appraisal does NOT need to come in $8,000 above. 4. A home audit will be performed.  Many utility companies  can provide. 5. The improvement is done after the loan closes.

Contact your local utility company to learn about audits.  Here's the link to New Hampshire's: NH Home Performance with ENERGY STAR®

Great article explaining why it takes so long for a short-sale.

 

From FHA: "Required repairs are limited to those repairs necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants."

When you do FHA appraising you constantly have the 3 S's in your mind:

1. Safety - Any safety issues need to be fixed.

2. Security - I like to refer to this one as "saleability".  It basically refers to protecting the FHA insured mortgage by keeping the property in marketable condition.

3. Soundness - Are there any structural problems?  Floor joists rotted, or a leaking roof?

Having the appraiser do a FHA appraisal does not constitute a home inspection and it is always recommended you hire a qualified home inspector.

 

Here are 12 of the many things your FHA appraiser will look for:

1. ALL the utilities need to be ON at the time of inspection
2. Missing floor covering, fixtures, outlet covers, and/or exterior siding
3. Rotted wood or evidence of infestation
4. Chipping or peeling paint - if built prior to 1978, possible lead paint issues
5. Windows not opening or closing - need 2 means of egress from bedrooms
6. Roof with less than 2 years of economic life or with missing or damaged shingles
7. Garage must have drywall on any wall adjacent to living areas
8. Crawl space should be at least 18 inches, with no standing water, or debris in the crawl space
9. Attic must have insulation and access if there is an attic
10. HVAC, plumbing, and electrical must function properly
11. Electric garage door must have a reverse stop
12. Wells must be located 50' from septic tank, and 100' from absorption field.

If the property has any of these issues they need to be cured (fixed) before closing.

HUD 4150.2 Handbook for appraisals.  This is the original bible for appraisers and it is constantly updated by issuance of new Mortgagee Letters...

FHA Appraiser Resources -Bottom right of page.  The Mortgagee Letters are constantly updated and the appraiser needs to keep track of this information.