It Has Been Way Too Long!

Wow it has been some time since I posted here. I guess I have been too busy posting on my website. Hard to spread the awesomeness to every corner of the internet but I guess I shouldn’t neglect posting here.

Speaking of awesomeness, I just posted the latest real estate market snapshots over on my website and hope you check them out:

Not going to make any promises but I am going to try to start posting here more often. Just so many hours in the day and sad to say I have neglected posting here. Hope you have an awesome day and don’t forget it is Mother’s Day!

What’s Happening 7-3-13

Well I hope you are ready for the 4th. And I hope it doesn’t rain. It has been some time since I posted here but I have been super busy. Plus I figure if you want to read my blog posts you will go directly to the source. Like today I wrote a post that was inspired by an email I had received lately.

It was from someone that wanted to buy a home but has bad credit. Do you want to buy a home but have a low credit score? Well read tips on how to raise your credit score at

Slow Down Buckaroo

Mark Brian

UGLYBUTHONEST.COM

 

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Will No One Sell a $40,000 Home Anymore?!

It was funny how before the melt down in real estate that some agents turned their noses up at the types of homes I sometimes sell.

So to answer the question in Tammy’s blog:

I have…

I am…

I will!

In my opinion, there are 2 types of buyers for $40,000 homes. Either investors that know what they are doing and are looking to either buy and hold or flip a home. Or the buyer is on a budget and every dollar is important to them. More than likely they have worked hard to save up a down payment and are very cost conscious.

Now there are some down sides to selling $40,000 homes. There are plenty of people that want to buy a home but simply cannot because they cannot get a mortgage. It does not matter how badly you want to buy a home. If you do not have the money to pay for the home OR the ability to get a mortgage, then there is nothing I can do to help you.

So it is different type of business selling homes that many agents turn their noses up at. The frustration of dealing with these homes can be quite large. The plethora of idiots that are determined that they can somehow buy a home with crappy credit and no money also gets old after doing it for several years.

So yes it is a challenge.

But like I said…

I have…

I am…

I will!

Check out Tammy’s blog below:

I write for a lot of real estate companies and brokerages and those agencies and individuals are always looking to market the high-priced properties. Of course, why wouldn’t we? The commission on a $300,000 house is much higher than a $50,000 house but then, people still are buying $50,000 houses right?poor service with low home prices?

I once worked for a real estate broker as his buyer’s agent and unfortunately I was disappointed to see really poor service when he had to help a couple buy a $120,000 house especially when he had buyers looking at $5-$600,000 houses. They even could tell the difference. But, people have to start somewhere, right? Not all of us can afford a half-million dollar house.

Many real estate searches and customizable IDX pages will allow you to set a list of properties to start at a certain price and most agents and brokers want that price to be at least $100,000 or more depending on the neighborhood and their target market. Of course, anyone can go into an advanced property search and type in a $50,000 home or property and get a variety of listings but then are they going to get the same service when it comes time to buying or selling a house for this price range?

Granted, I get it, you put about the same amount of work into a $50,000 sale as you would a $500,000 sale as far as showing the property and writing up a purchase and sale agreement but when did we stop caring about the family the needs to buy or sell a home price under $100,000?

What about you? Do you put the same care and attention into a home buyer that means a lower-priced property versus one that $4-$500,000? If not, who’s buying these properties and how are they doing it?

 

ActiveRain and SEOTammy Emineth is an expert in custom content and original articles for blogs, website, press releases and more. Contact me anytime and feel free to subscribe to this blog to stay up to date on my latest blogs and informative information. Email me or contact me for Real Estate Website Marketing and SEO Content Writing.

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The information contained in this blog is believed to be true and correct and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it’s accuracy for any particular purpose. All information is copy written and the property of Tammy Emineth.  

Mark Brian

UGLYBUTHONEST.COM

 

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People Who Do Not Know, Should Stick To What They Do Know.

Excellent rebuttal that potential home buyers need to read. Really you need to understand that you can’t believe everything you read online. Or hear on TV or the radio.

Sad that so many consumers get bad advice from people that really should NOT be writing about real estate.

I am going to file this under “Yet Another Example of How Zillow Misleads Consumers”

 

Stick To The FactsPeople Who Do Not Know, Should Stick To What They Do Know.  I don’t know why I still get irritated when I read articles like the one in MReport.com last week, about a Zillow study reporting 3 out of 10 Americans are unable to obtain a mortgage to purchase a home.  The article did get it right by stating the reason is because these Borrowers have low Credit Scores.  I agree with their statement, in fact in my opinion it is more than 3 out of 10 Borrowers who are not able to obtain a mortgage today because of low Credit Scores.  So why did the article irritate me?

I was irritated by the article, because it suggests Lenders should be approving Mortgages for people who don’t pay their bills.  If they don’t pay, or can’t pay the bills they have now, what makes them think they will pay a Mortgage without first showing the have changed how they manage their finances.  These are the same people who not to long ago were criticizing Lenders for approving Borrowers for Mortgages they could not pay for.

The article went on to state “mortgage availability remains tight”.  Mortgage availability is not tight, there is plenty of money to lend, what is tight are the guidelines to qualify for them. 

That is when I started to get irritated, but what really did it was the next statement stating According to Zillow’s analysis, the lowest rates are currently reserved for those with credit scores of 740 or higher”, this is simply not true.  Credit Scores impact a Borrowers ability to qualifying for a Loan Program, and the points a Borrower may pay once they qualify for the Loan Program, but they do not impact what the Interest Rate will be.  For example, if a Borrower needs a minimum Credit Score of 640 to qualify for a Loan Program, it does not matter if their Credit Score is 640 or 800, once the Borrower qualifies for the Loan Program the Interest Rate will be the same.

What further showed the writer the article or Zillow did not know what they were talking about, was making a comparison between the Interest Rate and the APR.  The two are VERY  different.  The APR is not an Interest Rate, it is a Percentage which attempts to reflect the costs of the loan for shopping purposes.  What made it very obvious to me they did not know what they were talking about was the following statement:

“In the 2013 study, Zillow found borrowers with credit scores of 740 or above received an average low annual percentage rate (APR) of 4.42 percent for conventional 30-year fixed mortgages.

Borrowers with mid-range credit (between 620 and 739) received APRs between 4.47 percent and 5.09 percent, and those with scores below 620 received too few quotes to even calculate the average low APR.”

The reason why the APR is higher on a conventional loan for a Borrower with at Credit Score below 740, as apposed to a Borrower with a Credit Score of 740+, is because of the points Fannie Mae charges a Borrower based on their Credit Score.  For example if a Borrower is has a downpayment between 5% to 24.9%, Fannie Mae would hit them with the following points based on their Credit Score:

  • 740+       .250 points
  • 739-720   .625 points
  • 719-700   .1.25 points
  • 699-680   .1.375 – 1.875 points
  • 679-660   .2.500 – 2.875 points
  • 659-640   .3.000 – 3.250 points
  • 640-620   .3.250 – 3.500 points

As you can see every time the Credit Score drops by 20 points the Points Fannie Mae charges go up.  As a result the APR goes up because of the higher closing costs, not because the Interest Rate increased.  The Interest Rate stays the same as long as the Credit Scores stay within the Loan Program qualifying limits, and do not change because of the Credit Score.

There is enough miss information out there.  We do not need organizations like Zillow who people trust and think they know what they are talking about, making statements which are not even close to being true.  People Who Do Not Know, Should Stick To What They Do Know, and Reporters should take the time to verify what they are reporting before they report it.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Mark Brian

UGLYBUTHONEST.COM

 

search real estate listings in the Anderson SC area

 

real estate estate blog Upstate South Carolina
 

Upstate South Carolina Realtor in the Anderson SC are on Google Plus   Upstate South Carolina Realtor in the Anderson SC area on Facebook   Upstate South Carolina Realtor in Anderson SC are on Twitter

Commissions For Pretending?

Sharing a post from Joe Zolsky down in Daytona Beach Florida about agents sending MLS listings to other agents.

I despise these emails.

I use an email provider that lets me send all future emails from the sender directly to the trash. So if the sender is one of the many services that specialize in spamming agents, I will never see another one of the annoying emails.

You may wonder why I do not just unsubscribe?

Because that is how the spammers find out which email addresses are legit. And then they really start to send you more spam!

I also find these emails to be somewhat insulting. I can find listings in the MLS quite easily, I do not need another agent to point out they just dropped the price or added a new listing. There are functions in the MLS that let me check out the new listings or price changes. I can even look at the Hot Sheet to see the listings that have recently had any changes.

Plus I look at all these new listings, price changes and the Hot Sheet every day. If the price/size home lot /features don’t equal a good deal, I don’t even slow down.

Part of the reason why having the property priced right from day one is so very important…

Something else that is important is filling out every field in the MLS. Makes it easier for other agents to find listings that fit the needs of their buyers.

And I cannot say how having good pictures is also a better bet than spamming your fellow agents.

Sometimes I think that spamming people must be effective considering how much spam I get every day.

But I live by the Golden Rule:

Do Unto Others As You would Have Them Do Unto You

I know that the Golden Rule is something that some people will never understand.

But it works for me.

What do you think?

I do not email blast Realtors. Agents have access to MLS and if they are looking for something, they will see it on MLS, however, I receive tons of emails from other agents every day, so there got to be the reason. Some have link to the listing, but many come like this one, which I received today (address is changed):

MLS # 5555555 00 Wonder Drive, a two story, 3 bedroom, 2.5 bath home in Turtle Colony  now offering owner financing!

Thank you.

Commissions for pretending?Who the heck the agent is talking to?

Are you trying to bring my attention to your listing? Where is price, size, age, maybe some features that make it unique? Plus a link to MLS would be appreciated.

I have many other messages like this one, so what is my motivation to go to MLS and check the listing?

Do you know what I do?

I delete the message. Do you know what other agents, inundated with these email blasts, do? they delete the message…

How freaking difficult it is to use brains in marketing?

Do you send these messages so that you can then report to your Seller that you sent so many emails to so many agents?

Here is a heretic idea. Why not think beyond BS-ing your Seller, and actually try to sell by making agents notice your listing and, probably, sell it because of more exposure.

Not more BS, but more exposure.

In other words, why pretend that you are trying to sell when you really can try to sell?

Do they pay commissions for pretending?

Image by Brett Jordan via Flickr.com

Mark Brian

UGLYBUTHONEST.COM

 

search real estate listings in the Anderson SC area

 

real estate estate blog Upstate South Carolina
 

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What’s Happening 9-21-13

Here is the round up of the most popular posts I have made over on my website this week. Hope you will check them out!

Anderson County SC Real Estate Market Report

Oconee County SC Real Estate Market Report

Pickens County SC Real Estate Market Report

Mortgage Rate Update

Wisdom is Learning What to Overlook

Should the Fed Rip the Band Aid Off

Of course there were plenty of other articles full of information for buyers and sellers. Head on over and click around because I am sure you will find something that interests you!

Mark Brian

UGLYBUTHONEST.COM

 

search real estate listings in the Anderson SC area

 

real estate estate blog Upstate South Carolina
 

Upstate South Carolina Realtor in the Anderson SC are on Google Plus   Upstate South Carolina Realtor in the Anderson SC area on Facebook   Upstate South Carolina Realtor in Anderson SC are on Twitter

Mattress Money Is A Problem When It Comes To Mortgages

Great advice about why cold hard cash can become a red hot issue when buying real estate. I know that some things in real estate don’t make any sense. Often the things that don’t make any sense are directly related to either the policies of banks or government regulations/laws.

Which is why when it comes to making a HUGE financial decision, it is so very important that consumers seek out and use the services of the appropriate professional!

Big thanks to George Souto in Connecticut for originally writing this article!

Anyone one who has been involved in a Real Estate related field even for a short time has most likely heard the term “Mattress Money”.  “Mattress Money” is simply the colorful slang word for “Cash Funds”, and “Cash Funds” is defined in the Lending Industry as funds which cannot be documented.  If funds cannot be documented, then they cannot be used in a mortgage transaction, which means Mattress Money Is A Problem When It Comes To Mortgages.

This week I had two different Borrower with funds which could not be documented, and as a result were short on funds to qualify for the mortgage.  In one case the Borrower had a fairly large amount of cash in his house, and deposited the funds shortly before finding a house to he wanted to purchase, and talking to me to be Pre-Approved.  The Borrower had more than enough funds to qualify, but without the funds being “Seasoned” (money in the Borrower’s bank account long enough to not show up as a deposit) the funds cannot be used as part of the transaction.  So your question maybe why not wait until the funds are seasoned before producing a bank statement?  The answer is, the Borrower did not mention the funds were from a cash deposit before the mortgage application was put into process and reviewed by an Underwriter.

The second Borrower did not deposit cash, they made a large deposit with a bank check.  So what is the problem with that?  The problem is the source of the funds cannot be proven from a bank check, therefore, considered cash.  If you stop and think about it the bank check does not have the name of the person who purchased the check, or an account number from where the money came from.  This means the money could have come from an unacceptable gift source.  Without being able to do document the source of funds the bank check is considered cash.

In both of these situations, the Borrowers had access to acceptable gift funds.  But if they had not been able to access gift funds to replace their own undocumented funds, they would have been short of documented funds for Downpayment and Closing Costs.

The frustrating thing with both of these transactions, was that I spent a substantial amount of time explaining what not to do, and yet the light bulb did not come for them to realize what they had done and inform me of it.  Both Borrowers considered the money theirs, so therefore, they did not see the problem? 

So what should these two borrowers have done.  The one with the large cash deposit should have been Pre-Approved sooner.  If he had been Pre-Approved earlier in the process, I would have inquired about the source of funds for Downpayment and Closing Cost, and would have instructed him on what to do.

The issue with the second Borrower could have been easily avoided.  All that Borrower needed to do, was to do a bank transfer from one account to the other, OR have written a personal check from one account to the other.  Again if he had told me he was taking the money from one account to the other, we could have avoided the problem.

Borrowers have to be reminded at every turn to not do anything financially without talking to their Loan Originator, and even with all the reminding they still many times create issues.  If funds cannot be documented, they cannot be used in a mortgage transaction.  The funds are considered, cash, “Mattress Money”, and Mattress Money Is A Problem When It Comes To Mortgages.

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam,# Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Mark Brian

UGLYBUTHONEST.COM

 

search real estate listings in the Anderson SC area

 

real estate estate blog Upstate South Carolina
 

Upstate South Carolina Realtor in the Anderson SC are on Google Plus   Upstate South Carolina Realtor in the Anderson SC area on Facebook   Upstate South Carolina Realtor in Anderson SC are on Twitter