Analysis of DataQuick’s July report shows a twist: house shoppers in the county’s beach-close communities appear to be the most skittish about making deals.
DataQuick identified 434 homes selling in beach cities’ ZIP codes last month, down 6% from a year ago — that drop coming in a month where the rest of the county saw gains and countywide sales total beat the year-ago pace for the first time since September ‘05. Note that in these 17 oceanside ZIPs, last month’s median price change was 17.4% lower than a year ago. (For ‘07, by the way, the beach had O.C.’s firmest market by this math. Read about it HERE!)
Compare that July trend to other O.C. regions …
- South inland ZIPs had 772 sales, up 20% from a year ago. In these 19 ZIPs, last month’s median price change was off 19.4% vs. a year ago.
- North inland ZIPs had 671 sales, up 11% from a year ago. In these 23 ZIPs, last month’s median price change was down 21.3% vs. a year ago.
- Mid-county ZIPs had 827 sales, up 58% from a year ago. In these 24 ZIPs, last month’s median price change was a whopping 30.7% loss vs. a year ago.
All told, countywide sales were up 17% in the past year — best boost in buying since August ‘05 — while the median selling price fell in the past year by 28%, worst yearly drop in DataQuick’s 20-year database.
More ZIP data is HERE! And in other neighborhood real estate news …
People are feeding on foreclosures, and those do not exist at the beach. Everyone knows that foreclosures are jacking up sales in less desirable cities. You forgot to mention this in your story?
WELL WELL WELL
AND I THOUGHT SOME BIRDIES ON THIS BLOG SAID BEACH COMMUNITIES ARENT EFFECTED BY DOWNTURN IN HOUSING MARKET .
SHOULD WE NAME THE GOOFBALLS THAT SAID THAT TOO……..LOLLLL
THIS SHOULD TELL ALL DONT BUY A HOME NOW … DONT BUY A HOME NOW …
YOU WILL LOSE NO MATTER WHERE U ARE AT… WAIT I THINK 2010 MIGHT BE JUST ABOUT RIGHT TIME TO LOOK….
hwood, I live in Newport Beach in the happening area, not where the geriatrics live in CdM and I can tell you that nothing is selling.
I see the same “Open House” signs week after week. Obviously, buyers got smart and they are not going to drop a million or two for some stupid cottage.
Now that summer is over, the only thing that sellers can do is to drop prices or pull their homes off the market. In the meantime, they are still paying property taxes, maintenance, insurance, etc. The smart sellers are the ones who dropped the price at the beginning of the spring and got out of the market.
Take a look at the rentals in NB. You can get a 2 bed 2bath rental in the area for 1800. That should tell you how desperate some owners are.
Yup, the Alt-A resets are going to do to the nice areas what the subprime resets did to less nice. See many NOD’s went out this summer, that no area will be immune come next summer when all that REO is moved.
2000 prices will be the time to buy. Where we already have 2000 prices like in Riverside County, it is already time to buy, if that is where you are looking.
For the OC, hold on to your hats, cuz 2000 prices are not far off.
Hey NB-
Can you post the link to the Federal Reserve that shows the volume of Sub Prime and Alt-A loans still in the pipeline?
I thought you did before and I forgot to bookmark it.
Thanks.
And can OC prices stay at 461K, when a fastrack pass gets you the same house for 250??
I read that 78% of NOD turn into repos.
anyone have NODs by zip similar to the “More ZIP data is HERE!” link on sales volume/prices? I think that would be something worth watching during this upcoming Alt-A fiasco.
Right, Jimmy2, beach property buyers who would have bought that Dana Point mansion are buying up Santa Ana F/Cs instead because they were just too good a deal to pass up.
I know what beach city sellers can do to move inventory…drop prices! And drop they will…they’re just the last holdouts.
Fasttrack pass will also get you a 1.5 hr commute each way - what is your family time worth?
hey folks,
Have you seen jumbo loan interest rates?
They don’t want to go under 7.50% Compared that to the 5.75% my sister got back in 2004.
and no, don’t remind me that interest rates were much higher in the late 70s and 80s. I already know that.
My point is that these home prices were set when interest rates were insanely low at unrealistic levels and obviously now prices are adjusting to the higher interest rates.
Conforming jumbo rates are nearly identical to regular conforming rates. The difference is minute. These loans can be had at 6.375%
Jimmy says:
“People are feeding on foreclosures, and those do not exist at the beach”
Maybe Jimmy is living in CDM on Mars. Look at realtytrac, look at the preforeclosures in 92625 and 92660 (”too many, must zoom in!”) , yeah, they don’t exist…..but they are coming….
Provider — I think the point is that most of the homes in question here cannot be purchased with a conforming jumbo. Prices for beach homes are usually far in excess of $700,000 and very few would-be buyers have a huge chunk of cash to put down to make up the difference.
# provider Says: “Conforming jumbo rates are nearly identical to regular conforming rates. The difference is minute. These loans can be had at 6.375%”
I said jumbo loans (729K and above) which are needed if you want to buy outside of ghetto areas in Garden Grove and Santa Ana. Those are 7.49% according to bankrate. Ouch!!!! Which explains why nothing is selling in the desirable areas.
Conforming jumbo rates are up to 729K and they are going down to 625K in January which will put even more pressure on the housing market next year. I haven’t heard you said anything about how the limit for conforming jumbo loans are going down to 625K at the beginning of next year. For easy money addicted Californians that is going to be another nail in the coffin for the housing market.
“I said jumbo loans (729K and above) which are needed if you want to buy outside of ghetto areas in Garden Grove and Santa Ana.”
Utter nonsense.
If you were nicer to me I’d tell you where to get better jumbo rates.
don’t need your “secret jumbo rates”, which only YOU can get.
I’m not buying any time soon. I wish I had sold my place 3 years ago and rent like some smart people in this blog.
Bubbs: Are you happy?
not so secret Bubbie
From todays Bankrate,
“The highest rate in California on a 30-year jumbo mortgage was found at one institution that charged 9.000 percent. The lowest rate was found at one institution that charged 6.000 percent. Six months ago, the average rate in California was 6.76 percent.”
Bubbie, I wish you’d sell you place and move back to Marin Co.
That’s to bad Bubbie. Didn’t you get a pre nup?
Those who spend their time focusing on negative information essentially are negative individuals. It is a simple fact. We all create our own reality. The daily barrage of negative information cannot be good for you all. I have no problem with home prices, NODs, Trust Deed Sales, REO’s, etc. The movement is necessary and required for housing to return to normal, which in turn will create more employment in the housing related sectors.
Be happy in your lives…posting some comment followed by “this cannot be good for the economy” is pretty lame. It is just uninteresting. We all have computers, follow cnbc, drudge, cnn, foxnews, et al. Nothing new makes it way to this blog in that format.
This blog is turning into a yawner…
…… provider…….
….. people who don’t need loans….
….. have access to all types of loans….
…..at great terms…..
…. whoopdyfreakindo……
…… they don’t need loans….
One Ford Road - 18 Listings, avg greater than $2M - 0 sales in last 12 months;
Balboa Island - 24 Listings, avg greater than $2M - 3 sales in last 12 months;
Pelican Hill and Pelican Crest - 22 Listings, avg, greater than $6M - 0 sales in last 12 months;
Newport Coast (not sure of the neighborhood, but it runs adjacent to Coyote Canyon - 14 Lisitngs, avg, greater than $2M - 0 sales in last 12 months; and
Newport Ridge - 32 Listings, avg. greater than $2M - 0 sales in last 12 months.
Feel free to check NB and CDM yourself - the only neighborhoods holding up are Harbor View Hills North and South, Harbor View Homes (the Port Streets), Lido to a lesser extent and Spyglass. Everything else just has growing inventory.
No neighborhoods are holding up in NPB. Do you call 75% declines in sales holding up? Prices are down 15% since beginning of year in the “holding up” neighborhoods you mention. Maybe more on a sq.ft. basis.
Tangerine, can you check Bayshores vs Shady Canyons? I always think the older neighborhoods were better buys.
by the way, there was a sale in One Ford Road for $13M+/- in the past 12 months.
Mulliganville Says:
“Those who spend their time focusing on negative information essentially are negative individuals. It is a simple fact. We all create our own reality”
—
Interesting perspective…….with some truth to it, however, reality is what it is.
But, yes, we all create our own reality, I suppose you could say.
Those who avoided all negative information and went ahead and bought during the past three or so years are having their self-created reality overruled by the reality they chose to avoid.
Good to remember when choosing to look at the bright side that, as Spinoza said, “No matter how thin you slice it, there are always to sides.”.
Just because the glass appears half full isn’t a reason to assume that you should drink from it:)
I hear Redfin is going to add a more traditional brokerage feature to it’s BP. They’ll actually show you the property for $10,000 more than the regular fee. Anyone else hear anything about this?
PDU,
No matter how thin YOU slice it, it’s still baloney.
# mav Says:
“…… provider…….
….. people who don’t need loans….
….. have access to all types of loans….
…..at great terms…..
…. whoopdyfreakindo……
…… they don’t need loans….”
—–
In a similar vein, the old definition of a banker as one who will happily lend you his umbrella on a sunny day, but woe unto you if there’s a cloud on the horizon:)
man… I agree with Jimmy2
tangerine
Could you also check Bonita Canyon neighborhood? That is great Data, thanks!!
could someone do the same numbers with the CDM neighborhoods tangerine said were doing well. All I see is for sale signs, and even in the port streets there seems to be a slew of homes not selling. I know of 2 homes in spyglass that have sold- one being a foreclosure (they paid 1.5 mill for it and now are asking over 2), and one on carmel bay I believe.
Everyone I talk to in CDM agrees with Jimmy too, I think they are all nuts. We will see though- only time will tell. Until then, I’m stuck renting, but I guess it’s better than paying double for mortgage!
Hey, I’d like Bonita Canyon numbers checked too, tangerine. I like those kind of numbers- that is where I would love to buy a house.
What Jimmy said is probably true……….not much to disagree with.
However, recognizing that the sales are happening because of foreclosures and recognizing the scarcity of beach area foreclosures doesn’t negate the fact that property isn’t selling in the beach areas. Those that want to sell will need to lower their prices……this will become more obvious as price drops continue a bit inland.
The beach premium needs to be realistic or the beach properties don’t sell.
No one NEEDS a house at the beach. This is discretionary buying.
As the premium increases the number of potential buyers willing and/or able to pay that premium decreases.
We see evidence of this now.
Mom, I show 11 closed properties over the past 55 weeks in Bonita Canyon.
A year ago when we looked at the market information there was a signal that we were starting to see a downturn in the market……and the bulls said that Orange County was different than the rest of the state. As time goes on the areas that are “immune” get smaller and smaller. Soon we will be hearing that only houses on such and such a street will never lose value……….
For those of you that have not figured it out yet:
All homes in Orange County will lose at least 40% of their value before this correction is over. Those purchasing now are making a huge financial mistake.
Thanks Mulli
yeah, I know lots of people there. They seem to sell a lot faster than the older neighborhoods. There’s a couple that haven’t sold and have been on the market for a while, but that is a good neighborhood families want to be in. I’ll have to wait another year before I can start looking anyway, but hopefully they’ll be less and more to choose from in that time.
we will see. Also, does redfin take off the house after it sells? I had heard that a house on Altura (Irvine Terrace) had sold, but it is still on redfin. I wonder if it didn’t close (fall out of escrow) or if redfin doesn’t take it off.
“A year ago when we looked at the market information there was a signal that we were starting to see a downturn in the market”
Ya mean that pesky global credit crisis?
I love Bonita Canyon…if you would like, shoot me an email at mulliganville@gmail.com and I will get you up to date reports from the MLS. I just ask that you respect my privacy on the blog.
By they way, 10 of the 11 sold this year…9 of the 10 since April.
Mulliganville Says: “shoot me an email at mulliganville@gmail.com and I will get you up to date reports from the MLS. I just ask that you respect my privacy on the blog. ”
Realtors never waste time to make a sale, do they?
be careful Mom!!!
Ah! I think ol Mulli is harmless. I bet he’s getting about 30 emails right now all claiming they are from me! 8-)
BSquirty:
How’s it hangen….
Mully:
You hear on the west coast…??
Only 15 more years of working before I buy the 100ft yacht…
And sail off into the hawaiian sunset, Kauaii of course..!!
Mav:
You still here
Rants:
You still saving
PDU:
More insight for a young buck from the old fortune teller…??
Shady - 40 Listings at average over $6M with 0 sales in last 12 months (this doesn’t include the listings without addresses, so there are probably more);
Bayshores - 3 listings at average over $3M with 6 sales in last 12 months;
Bonita Canyon - 4 listings with 0 sales.
MOM in CDM:
Mulli is harmless, an agent out of MV / OC.
Raising rents we will go raising rents we will go….
Remember the captain…ahahahahha
Tangerine, you lost whatever credibility you had. I’ll post some Shady Canyon sales that also don’t exist.
Jon that Monte Carlo add at the top of the page is very distracting. Looks like a perfect after noon. Martini/bikini :)
I have been watching Ladera and seen a lot of places going inactive. Since I do not have access to MLS I do not know if they are going into escrow or if listings are expiring. Starting to look at nicer areas of SJC and the prices are coming down fast. Not where I feel comfortable buying yet but getting close.
Beach cities prices have declined 17% and sales are now counted in the single digits? That has to be a misprint! EVERYONE knows that the Beach cities are immune to this real estate crash!
There will always be people who want to live at the beach. The beach is immune! IMMUNE! This has to be a mistake, and the Register better get on a retraction and an apology immediately.
Hey Scott A…how are you bro? Did you move up to Woodland Hills? Congrats on the new gig…so happy for you. I got back in May…the deal on Maui was not bad, we ended up doing about $70,000,000 total. Trying to grab a cup of java with awgee…you should join us if you are still on this side of town…
Bubbs: I was just trying to be nice. It is very easy for me to do if she wants to track closings for a certain area. I would do it for you too if you asked.
yo scott still hangin in there. rents in Orange still seem flat… well mine is for now.
7.3 unemployment ouch. 1800 2br/2ba…good time to rent in NB sounds like.
1800 for a 2br/2ba? must be a dump over a garage with an alley entrance off a busy street. Single family homes rent for twice that, if they are decent.
Mulli
I would love for you to track Bonita Canyon for me. I know there is a realtor there who has pocket listings and knows that neighborhood specifically. But anything you see that comes up reasonable, let me know. Use the email I gave you. Thanks for the offer!
Best I can find is OC’s unemployment rate is about 5.7% for July. 7.3% is for CA as a whole…it is the highest in 13 years here locally, but not at the level of 1992. Think that was around 7.5%.
You got it Mom…
Provider: “These loans can be had at 6.375%”
Are you going off of the “average” rate for the OC that was actually used? No point in posting rates that most people are not using - since they have no effect on the market.
If those rates you quoted are correct, I would definitely like to know the source of that info. We are not seeing anything close to that in actual widescale use. The local jumbo’s have been in the sevens - with averages hitting mid sevens. But I do not claim to have all or even most of the data - i’m just going off of summaries that have been wrong before. But somehow, I highly doubt that the data we have is wrong, seeing that it is being collected more stringently given the current climate, and other reports reflect what we are seeing.
Just trying to be objective here. I’m sure the rates exist - I do not believe they are being obtained as often as people may infer.
Would love to see that data.
Jimmy2 Says: “Single family homes rent for twice that, if they are decent.”
Use your brain. If it is a 2bed/2bath it is most likely a condo. Duh!!
For 2500/month you might get something with an ocean view.
Just do a craigslist search if you don’t believe me.
Provider: “Ya mean that pesky global credit crisis?”
Last time I checked, sales volume was already dropping fast before any mention of a significant credit crisis. Is this not putting the cart before the horse?
I am very very curious. What is your reasoning for the credit crisis?
Just looking for an objective answer and not some kind of complaint for asking. AKA - let’s leave emotion out of the discussion - it seems to work wonders for the debate.
Thanks in advance.
Mulliganville Says:”Best I can find is OC’s unemployment rate is about 5.7% for July. 7.3% is for CA as a whole…it is the highest in 13 years here locally, but not at the level of 1992. ”
Yes Rocket Scientist, I’m sure the current OC unemployment rate is also better than what we had during the Great Depression.
The point is that homes during the boom were priced to perfection: interest rates of 4.5%, no money down, no income verification, negative amortization, teaser rates, unemployment rate of 2.5%, low gas prices, strong dollar, high paying mortgage related jobs, etc, etc.
Orange County rates was 5.7% in July, up four-tenths of a percentage point from the previous month.
Unemployment rate in OC has been increasing and almost doubled since the boom. The trend is what matters if you want to know what is going to happen to housing.
“Are you going off of the “average” rate for the OC that was actually used?”
These rates for agency jumbos. I cross-checked rate sheets from 4 firms. They all had small rebates, so I’d assume most brokers would not charge more than 1 point up front to do them.
Here’s one. Look under “Agency Jumbo”. The 30 FRM is paying -.301 on a 15 day lock.
(On 6.375%)
Oh, you are probably right Graphrix. I forgot Redfin shows those as “sales”.
But then again, it could be valid because it’s 3 months later. Anyway, there is definitely a lack of sales in Shady. But I don’t think Tangerine has valid facts overall.
I’m at my self-imposed posting limit today, but I don’t want to ignore you!
“What is your reasoning for the credit crisis?”
I know there was some loose lending. I know certain products were sold to the wrong people. I know that this caused too-rapid appreciation. But, it is my firm belief, that the reaction is wildly disproportionate to the problem. I have seen what it takes to get most loans funded, and overall there is far more to it than many are imagining. On a seperate note, I believe record-low rates also played a big role.
Did you notice the dings below it.
Adverse market delivery fee .50??? What is that?
CLTV 90-95% add .25
They just like to hammer the 1st time home buyer in CA. Just makes it tougher to get loans and harder for us to start to recover.
stashingmycash Says: “Maybe this will change since they are raising the jumbo limit soon.”
Small correction. Actually, jumbo loan limits is going to be reduced from the current 729K (part of the stimulus package passed by Congress last April) to 625K on January 1, 2009.
The 729K was temporary and set to expire on 12/31/08
The Housing Bill passed a few weeks ago increased the limit permanently to 625K for OC
Unfortunately, this will definitely depress the OC housing market further next year.
Yeah but the conforming FHA loans were still 367k I believe. Please correct me if I am wrong. The none FHA was raised to 729k.
I think the new bill allows both FHA and standard conforming loan limits to 625K. Raising the FHA conforming but lowering the standard conforming. Atleast that is what I understand.
provider Says:
August 19th, 2008 at 1:43 pm
But then again, it could be valid because it’s 3 months later. Anyway, there is definitely a lack of sales in Shady. But I don’t think Tangerine has valid facts overall.
I agree, I know sales are slow in these areas but they are not dead. Plus many high-end homes choose not to disclose the address on Zip or Redfin, so I am not sure if the un-disclosed addresses would show up as sales.
Check the Shady thread, 6 Prairie Grass was listed and sold on the 23rd of June according to the Redfin link? Or, could the agent have posted the listing and not know that it had already been taken back to the bank?
Mully, use your MLS powers to unveil the mystery behind 6 Prairie Grass for us. I’m not even trying to push provider’s buttons with this, I am genuinely curious on what happened with this one.
Mully:
I will take you up on that cup of java with awgee.
I am around OC all the time.
lets all hang out
sda4property@gmail.com
Bsqwirty:
Rents are flat in OC…
Rents are flat in LB as well…
we are now renting out my wifes 2 + 2 A V condo
It has been on West Side Rentals for 1 week
No hits at 2000 a month
Going to market it at $1,850.00
Will let you all know how that goes
All I could find:
ACCESS 2001 is a second mortgage product that provides for downpayment and closing costs of up to 6% of the sales price. The interest rate on the 30-year fixed rate first mortgage is based on the current market rate and the 20-year fully amortizing second mortgage rate is fixed at 8%. Other highlights of the ACCESS 2001 program include:
No Purchase Price Limits (FHA Guidelines)
Single family, single-unit properties only (Condos, half-plexes o.k.)
Income Limits: 120% of Statewide or Area Median, whichever is greater
No Federal Recapture
Available Statewide in California and Nevada
(The second is at 8%, but the first is higher than normal)
Page 5 of that Citi document says the income limit is 140%, not 120%. Mind-boggling how confusing this stuff can be, isn’t it?
Stash, that’s Cal “HFA” (California Housing Finance Agency), not to be confused with “FHA” (Federal Housing Administration). They are completely different. California has lots of great programs, including specialty ones for public employees.
The income limits for the FHA program were 140% (percent, not dollars).
The income limits for the CalHFA program for Orange County (resale homes) are:
1-2 persons = $111,600 for “moderate income”
3 persons = $130,200 for “moderate income”
1-2 persons = $66,900 for “low income”
3 persons = $77,004 for “low income”
This is what brokers get paid to know. This is what you do not get with closeyourownloan.com! Order-takers indeed.
NB-
Close enough. Thanks for the link.
PROVIDER
I THINK U HAVE GONE OVER UR LIMIT AGAIN FOR THE DAY
MUST HAVE GOT A NEW STASH OF METH
YOU GO WASHED UP REALTOR…LOLLL
Scott A Says:
August 19th, 2008 at 2:38 pm
Mully:
I will take you up on that cup of java with awgee.
I am around OC all the time.
lets all hang out
sda4property@gmail.co
NOW THATS A GROUP OF GOOFBALLS ID PAY TO SEE ALLTOGETHER WITH THEIR UNEMPLOYMENT CHECKS DRINKING JAVA……….LOLLLLL
NOW I KNOW THE EARTH WILL MOVE WITH THE TRIPLE HEADED MULLIGAN
Ok, I am waaaayyyy over my posting limit today, but I like to help people so bear with me!
Here are some select Q & A’s on closeyourownloan.com. Don’t be fooled, they are being paid the same as any other broker or lender, they just want you to think you’re getting something for nothing. These items are particularly hilarious.
If there is no Loan Officer, who do I talk to if I have a question?
We have eliminated the Loan Officer, not the mortgage company. Once you have chosen your interest rate and loan program, simply click Reserve Interest Rate and Go To Application. When you have completed the simplified online loan application, you will be assigned a Loan Concierge and a Processor.
(OMG, once YOU have “chosen your interest rate and program”?)
Loan Concierge
Your Loan Concierge is entirely devoted to making sure your every desire, concern, or question is addressed quickly and efficiently. Your Loan Concierge will be monitoring your loan from the day your application is received to the day your loan funds to ensure the process goes as smoothly as possible.
(This is a processor, and by law they are not allowed to quote loan details and rates, so good luck with that.)
How does Close Your Own Loan.com make money?
You are eliminating the Loan Officer, not the mortgage company. Close Your Own Loan.com is a full service mortgage origination company and will complete your loan transaction from start to finish. Once your loan closes, we are paid by the lender for the rights to earn your interest over the life of the loan. This payment from the lender to Close Your Own Loan.com is how we make money.
(OMG, ANY broker can offer you this exact same arrangement…….and still give you great service AND take your calls!)
Your right…..typo CAL HFA
Yeah I fall into the moderate income but it is nice to know I can get a deffered down. This way I can keep the money I save for a down as an emergency fund.
Yeah rate sheets and guidelines have always been confusing. I would usually call the rep when I didn’t undestand something and they usually straightened things out. I usually tried to do it by email becuase they love to say that conversations never happened when they did -especially if they quoted you wrong.
Much better vibes today on the blog……..
I wasn’t sure so asked if someone would correct me and Bubbs graciously did so……………………
graphrix and provider aren’t getting calls from the FBI for terrorist threats against each other……………….
all in all a good day……………….
See ya…………
Provider-
I have had very poor luck with mortgage brokers. I’ve been charged 2 pts and THEN a loan packaging fee of $450.
I find it very insulting. So I go direct instead, save the $3K.
I have experienced what I call “rate creep”, where the broker quotes me a rate, and then as I got closer and closer to closing, the rate would creep up by a 1/16th to an 1/8th to a 1/4 at a time, so that by loan closing it was over 1% higher.
So I now double app my loans: one with a lender who carries their own paper, and one with a broker. If it is a push, I go with the broker. Otherwise I use the lender.
So far the lenders continue to win.
What is unfortunate is that I’ve only bought 5 houses in my life, so only have worked with 5 brokers out of the entire universe. I’m sure you are a much better broker, Provider. The problem is getting to the good ones requires wading through a whole lot of bad ones.
I would never use an unknown online broker either. Way too scary giving total strangers my intimate soc sec numbers, drivers license, date of birth, etc..
Graph…working on 6 Prairie Grass. Here is what I see:
Listed, canceled and re-listed a number of times from 10/2005 through July 2008…priced from $3.7-3.2M…on and off of the market.
Looks like the bank took it back and it went pending in late July. At a frosty price of $2.5M
Make that 2.6
MAKE THAT WHO CARES
Marica, are you sure you didn’t pay the $3,000 in the form of higher rate? Every broker or lender gets paid. Let me repeat that: every broker or lender gets paid. The rate creep ripoff could be real……or imagined. You have to know where the market is and what is being charged (which is far, far, far easier to guage with a broker due to RESPA).
For the record: I am licensed with the DRE, which I keep current, but I do NOT do loans at this time. I also do NOT do real estate. Doing loans is a thankless job, because of double-apping (sorry) and general game-playing by clients…….and add to that the disdain that people who don’t know any better have for the profession.
I hope this information has helped someone.
“one with a lender who carries their own paper”
Betcha they don’t.
“The problem is getting to the good ones requires wading through a whole lot of bad ones.”
That’s why the very best ones usually work by referrals exclusively. Same with good realtors. That’s hands-down the best way to find them.
Provider-
Probably not anymore; not after the most recent meltdown.
The only lenders I knew to carry their own paper were World, Great Western, Home and Downey.
Home and Great Western were bought out a decade ago. World was bought out by Wachovia and now Downey is on the skids. So you are probably correct on that one.
Lending rules have tightened, so maybe now it is easier to work with brokers.
I understand that everyone gets paid. I agree with you that lending has got to be a thankless job. At least as an RE agent, you have a better shot at getting the biz twice (buyer, then seller). Plus you get paid more, assuming an 80%-90% loan amount, vs 100% for sale price.
Double-dipping wouldn’t happen if buyers felt well-served, well, at least for me.
It is a huge waste of time. But when thousands of dollars are at stake, brokers know they have you at closing, so they can really take full advantage. The brokers I talked with wouldn’t even show me closing docs until signing time; so I’d have no chance of wading through probably a hundred pages of tiny legaleze language (I’m one of the few fools who actually wants to read and understand what I’m buying).
Hwood: Graph asked me to do a little research, I did it for him, and posted a correction. Are you majoring in jerkology or does it come naturally?
Thanks Mully. I am surprised at the turn around time on that home. Not because of the market, but how fast it got on the market and quickly it went pending. Even in a hot market that is fast. It really doesn’t matter, because that discount is going to hurt the three others on that street listed at over $3mil. and the one for $2.9mil.
yw Graph…my guess is Shady Canyon will take just about any action right now. That is a tough locale for that price point…with apologies due to Mr. Fazio, who designs the finest golf courses in the world.
Marc you should have seen some of the rediculas fees LO’s were charging on subprime loans. administration fee , credit verification fee, income verification fee and all kinds of made up fees that just amount to junk fees. You are smart to have a lender in the wings so you don’t get stuck. Once the loan is lock there should be no reason what so ever that the rate would change. They are just trying to get more $$. They gamble on a 30 and 15 day locks becuase they get more rebate for locking closer to the funding date. They should be honest up front and lock the 60 day or tell you they are trying to get a better rate by locking shorter and give you the choice. None of the hard costs should ever change on a loan from intial disclosures! When I worked for HOME123 they didn’t charge any points and had a flat fee for hard costs.
Be leary of any LO who won’t give you the docs beore the signing!
Provider is right about watching the rates but if an LO does their job they should be telling you what is going on step by step. They can still make their money and be honest on the initial disclosures.
Sorry you had some bad experiences. I’m dealing with something like that now. I am helping someone with a new website and we’ve worked with three different developers. They all estimate the job cost and hours, but quickly burn through the hours and expect more money. From lawyers to contractors, everyone wants to bill by the hour. I pretty much always feel taken by them.
I lost a good deal of loans becuase another lender lied on their initial quote and disclosures. You don’t know how many times I heard the LO next to me say “it is just an estimate and things do change as the loan progresses”. Just becuase it says “good faith estimate” doesn’t mean it can’t be as accurate as possible. I tried to slightly over estimate on escrow and title so if it came out less I had more wiggle room for anything unexpected.
People, timing determines your rate and fees. The rates are changeing drastically day to day in this market, so if the person you are talking to doesn’t mention anything about timing, you are talking to the wrong person.
Shady Canyon is very nice! Too bad it is so expensive!
6 Prairie Grass was listed on July 23 (first day sign showed up in front of the house) as foreclosure at $2.6M. The out-of-town listing agent received multiple offer, and I was told that on July 26 they opened all the offers, and went in escrow with a $2.6M.
It was a very good deal, if there is nothing crazy attach to the deal.
Shady Canyon is very nice, but homes there are way over priced. Most homes were not built at the level of what their asking price is. There are few extrodinary homes there, which are built for owner-user. There are over 50 properties for sale, and will have another 10+ more coming on to the market soon.
You can’t just rely on ‘data’ you pulled from computer. You need to go out there kick the dirt to know the market. Remember “data” from records are always out-dated.
I don’t know what’s more amazing… the amount of inaccurate, speculative information people are posting or the number of real estate “experts” who want their opinion heard. Please continue to do all owners a favor and keep renting!