[SD Realtor]

BSR and JL –

The purchase agreements that the builders have you sign are MUCH more restrictive (is there such a word?) then the standard residential purchase agreement used in a standard resale home.

Indeed the contingency period is VERY short and varies from builder to builder. Also as purchases are filled with emotion many people do not think out numbers very well when they sign the docs. Furthermore they seem to listen but not fully comprehend the loan programs explained to them by the loan officer while the sales lady bobs her head in a hypnotic like fashion telling them that prices will only go up.

BSR floating the rate means the buyers sign the purchase agreement and they have not locked a loan rate for the loan yet. Thus they “float” the rate in escrow until they get within 30 days of closing and then they lock it. Again the overwhelming percentage of buyers of new homes float the rate.

Also when they sign they may indeed have the reserves… everything is fine when you are looking at the models and eating cookies in the sales office. Then as escrow close comes near and people really sit down and look at the budget with the monthly payment, the mello roos, the property taxes… reality hits….thus cancellation…

Remember, these people lining up are not dumb people…They are degreed, they have high paying jobs, they just… well they all have their own reasons for buying. That is okay…If they just all would run the numbers out from the beginning, and then lock a loan, and realize, fully realize what they are getting into, I think most of them would hold off… and those that did will at least buy knowing the real situation. Thus they would have a lower probability of losing the home or deposit down the road.

but many of them dont.

ps – many float the loans also because the lender will charge a little bit more to lock a loan for a long period of time.
SD Realtor

[SD Realtor]

BSR and JL –

The purchase agreements that the builders have you sign are MUCH more restrictive (is there such a word?) then the standard residential purchase agreement used in a standard resale home.

Indeed the contingency period is VERY short and varies from builder to builder. Also as purchases are filled with emotion many people do not think out numbers very well when they sign the docs. Furthermore they seem to listen but not fully comprehend the loan programs explained to them by the loan officer while the sales lady bobs her head in a hypnotic like fashion telling them that prices will only go up.

BSR floating the rate means the buyers sign the purchase agreement and they have not locked a loan rate for the loan yet. Thus they “float” the rate in escrow until they get within 30 days of closing and then they lock it. Again the overwhelming percentage of buyers of new homes float the rate.

Also when they sign they may indeed have the reserves… everything is fine when you are looking at the models and eating cookies in the sales office. Then as escrow close comes near and people really sit down and look at the budget with the monthly payment, the mello roos, the property taxes… reality hits….thus cancellation…

Remember, these people lining up are not dumb people…They are degreed, they have high paying jobs, they just… well they all have their own reasons for buying. That is okay…If they just all would run the numbers out from the beginning, and then lock a loan, and realize, fully realize what they are getting into, I think most of them would hold off… and those that did will at least buy knowing the real situation. Thus they would have a lower probability of losing the home or deposit down the road.

but many of them dont.

ps – many float the loans also because the lender will charge a little bit more to lock a loan for a long period of time.
SD Realtor

[SD Realtor]

It would be very cool if we could somehow measure the fallout rate (over the next few weeks/months) of the most recent reservations/purchases that buyers make for this latest release. I believe it will be higher then in the previous releases. I would be willing to bet that a VERY high percentage of these buyers are floating their rates.

Piensa may not have to lower prices as they will just keep slurping up deposits.

SD Realtor

[SD Realtor]

It would be very cool if we could somehow measure the fallout rate (over the next few weeks/months) of the most recent reservations/purchases that buyers make for this latest release. I believe it will be higher then in the previous releases. I would be willing to bet that a VERY high percentage of these buyers are floating their rates.

Piensa may not have to lower prices as they will just keep slurping up deposits.

SD Realtor

[SD Realtor]

It would be very cool if we could somehow measure the fallout rate (over the next few weeks/months) of the most recent reservations/purchases that buyers make for this latest release. I believe it will be higher then in the previous releases. I would be willing to bet that a VERY high percentage of these buyers are floating their rates.

Piensa may not have to lower prices as they will just keep slurping up deposits.

SD Realtor

[SD Realtor]

PB –

Hot blonde was a joke with ref to your other post about the title rep…

Don’t sweat it when people sweat you about authenticity and such… all part of the job here.

TG – I think we need to compile your one liners and start a thread just on them.

SD Realtor

[SD Realtor]

PB –

Hot blonde was a joke with ref to your other post about the title rep…

Don’t sweat it when people sweat you about authenticity and such… all part of the job here.

TG – I think we need to compile your one liners and start a thread just on them.

SD Realtor

[SD Realtor]

PB –

Hot blonde was a joke with ref to your other post about the title rep…

Don’t sweat it when people sweat you about authenticity and such… all part of the job here.

TG – I think we need to compile your one liners and start a thread just on them.

SD Realtor

[SD Realtor]

PB is hot blonde by any chance a title rep?

SD Realtor

[SD Realtor]

PB is hot blonde by any chance a title rep?

SD Realtor

[SD Realtor]

PB is hot blonde by any chance a title rep?

SD Realtor

[SD Realtor]

You gave me a chuckle on the title rep line PB.

SD Realtor

[SD Realtor]

You gave me a chuckle on the title rep line PB.

SD Realtor

[SD Realtor]

You gave me a chuckle on the title rep line PB.

SD Realtor

[SD Realtor]

You done good Jimmy….You will be celebrating your decision next year bigtime.

SD Realtor

[Author]

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