Greater Cincinnati MLS Feb 2010 Sale breakdown report

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Tax Credit and slow closings

Homebuyer Tax Credits and slow closings.

As we all know, contracts must close by June 30, 2010 for the buyer to qualify for the tax credit.

At the same time, we know that some closings take longer than others, like short sales and bank owned properties. This delay may cause the closing to take place after the deadline, costing the buyer $6,500 or $8,000.

So if you have a buyer who is looking at a short sale property, you may want to warn them that the closing could be delayed past the deadline. You could even suggest a different property.

If they remain intent on buying the short sale property, then you should try to protect yourself. An easy way to do this is to have something in writing stating that you have warned them of the potential problem. This will keep you and REMAX out of hot water if and when the client tries to say you didn’t tell them this could happen. We already know how much they will want from you.

The properties showing the most delays are;
Short Sales
Bank owned REO (especially those that do not have a deed recorded yet.)
Condominiums

There are certainly others that will sound alarms for you, like property with tremendous amounts of work to be done, or estate sales. You just need to keep the dates in mind, and try to bring up the issue as early as possible so you can get the buyer to another property before the April 30th deadline.

ATTACHED is a sample form you could have the buyer sign showing you have advised them of the possible delayed closing.

Nick

Market Update-Greater Cincinnati MLS

New Listings 144  
Back on Market 34  
Price Increases 4  
Price Reductions 111  
Pendings 77  
Solds 56  
Expireds 44  
Inactives 43  

The weekly numbers bounced around slightly this week, not only from volume but from avg.

New listings: 144

Avg LP: $164,587

Pendings: 77

Avg LP: $143,782-

Solds: 56

Avg SP:$168,206-

Our Hot Spots for action today was- Mason with 5 and West Chester with 3

Also with news from the lending world today courtesy of Nick Perino Attorney at Law

Despite what you may have heard, on January 1st everyone must use the new Good Faith Estimate mortgage disclosures and the new HUD-1 settlement statements.  This has not been delayed.

This will affect home buyers, lenders, Realtors and title agencies. Basically anyone involved in real estate is affected. The new disclosures will not allow lenders or brokers to “low ball” the estimated fees and then inflate charges at the closing. There will be zero tolerance for increasing some of the lender’s fees.

Title companies will not be allowed to show an increase greater than 10% above the estimate.

HUD spokesman Brian Sullivan told Realty Times that all consumers making loan applications on or after January 1 must receive the new forms at application and at closing. They are allowed to be a little lenient on violations for the first four months due to the fact that some items are clear-as-mud.

Overall, I find the new HUDs to be a little easier to follow, so hopefully closings will go smoothly and quickly.
 

This is very good research to know. We will report feedback as the market place starts to practice with these new guidelines.

Market Activity Update-Greater Cincinnati

New Listings 172  
Back on Market 23  
Price Increases 7  
Price Reductions 157  
Pendings 110  
Solds 82  
Expireds 34  
Inactives 43  

Looking back on yesterday’s numbers, it appears buyers took an extra day to work their deals out from the weekend activity. Over 100 homes pending and heading towards closing. One of the higher numbers pending I viewed this past spring was near 150 home pending. Keep those numbers in mind as we conitinue to move towards a deadling of mid to October.

Published in: Uncategorized on August 25, 2009 at 17:23  Leave a Comment  
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