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SD Realtor
ParticipantActually if you think about it, one of the biggest gripes are from people who get irritated about listings that expire or cancel and then relist simply to have a lower DOM.
Wouldn’t this serve to eliminate that?
Also you can still get DOM by simply asking your agent to get a listing history report. This makes common sense even with DOM available as you can see when price changes were made, comments in fields, and ANY other changes such as if the home was in then out of escrow.
SD Realtor
ParticipantStan –
When you say cash back, you are inferring that the buyer literally got a check at the close of escrow correct? So basically, the buyer did not have to submit any money for closing costs, AND the buyer walked out of escrow with a check. I just want to make sure that this is the case.
I would be surprised if the HUD1 showed that the buyer actually walked out of the transaction with cash. To me, if the lender saw it on the HUD1 then it is the lenders fault for not flagging it and kicking it back. Now if the HUD1 showed the broker getting extra commission, then after the transaction the broker wrote a check to the client then that is not good. I wonder if the broker submitted a 1099.
SD Realtor
ParticipantStan –
When you say cash back, you are inferring that the buyer literally got a check at the close of escrow correct? So basically, the buyer did not have to submit any money for closing costs, AND the buyer walked out of escrow with a check. I just want to make sure that this is the case.
I would be surprised if the HUD1 showed that the buyer actually walked out of the transaction with cash. To me, if the lender saw it on the HUD1 then it is the lenders fault for not flagging it and kicking it back. Now if the HUD1 showed the broker getting extra commission, then after the transaction the broker wrote a check to the client then that is not good. I wonder if the broker submitted a 1099.
SD Realtor
ParticipantAgreed with you Allan… There have been some very enlightening posts on the site about the effect on the financial markets. IMO, and I say IMO because it is something that I don’t have a great understanding of, the situation is precarious. I think that the ratings to which the funds are based on are quite preposterous and outdated. That if the contents of each tranch (probably mispelled) within each fund were studied, the investors would find that they are really not holding what they thought they were holding.
I especially agree with your last paragraph.
SD Realtor
ParticipantAgreed with you Allan… There have been some very enlightening posts on the site about the effect on the financial markets. IMO, and I say IMO because it is something that I don’t have a great understanding of, the situation is precarious. I think that the ratings to which the funds are based on are quite preposterous and outdated. That if the contents of each tranch (probably mispelled) within each fund were studied, the investors would find that they are really not holding what they thought they were holding.
I especially agree with your last paragraph.
SD Realtor
ParticipantNeighborhoods Considering:
Scripps, Solana Beach, Del Mar HeightsCondo House: House
Price Range: $600,000 – $700,000 (but will pay more if it is something that I really like)
Size Range: 2000+ sf
Currently: Renting a house.
Shopping the Market?: Yes but am continually squelched when submitting lowball offers. Then my wife gets pissed at me for not sucking it up and paying more. Then we don’t shop for a few weeks… then we do it over again.
SD Realtor
ParticipantNeighborhoods Considering:
Scripps, Solana Beach, Del Mar HeightsCondo House: House
Price Range: $600,000 – $700,000 (but will pay more if it is something that I really like)
Size Range: 2000+ sf
Currently: Renting a house.
Shopping the Market?: Yes but am continually squelched when submitting lowball offers. Then my wife gets pissed at me for not sucking it up and paying more. Then we don’t shop for a few weeks… then we do it over again.
SD Realtor
ParticipantThis article was sent to me yesterday.
I have not personally been involved with a case where a buyer ever was able to receive cash back. Whenever there are credits back to the buyer for repairs, then escrow will need to have invoices from the contractors and escrow will hold the excess funds for those contractors until work is completed. In the case where there are credits granted for closing costs, (recurring or non-recurring) if those credits EXCEED the closing costs then the money goes back to the entity that granted the credits. Never, have I seen, that cash will go to the buyer. That indeed would be flagged by the lender.
Now granted I am only a pup so I am sure more experienced people have seen more. I am not saying it doesn’t happen or hasn’t happened.
SD Realtor
ParticipantThis article was sent to me yesterday.
I have not personally been involved with a case where a buyer ever was able to receive cash back. Whenever there are credits back to the buyer for repairs, then escrow will need to have invoices from the contractors and escrow will hold the excess funds for those contractors until work is completed. In the case where there are credits granted for closing costs, (recurring or non-recurring) if those credits EXCEED the closing costs then the money goes back to the entity that granted the credits. Never, have I seen, that cash will go to the buyer. That indeed would be flagged by the lender.
Now granted I am only a pup so I am sure more experienced people have seen more. I am not saying it doesn’t happen or hasn’t happened.
SD Realtor
Participantstop the bubble hype… If I were to bet a dime on anything, that bet would be that the majority of people who don’t post, but maybe read this site are people who are very much in the same boat as you and I. They want to purchase a home and they are looking to purchase for the long run. They are not speculators, not trying to flip a home or anything like that. Just pretty much trying to find a home in a nice neighborhood with a good school district. Profile wise I would imagine they are all 6 figure wage earners with good educations, and some decent money saved for a downpayment.
I have said ad nauseum that purchasing a home involves more factors then the sheer economics of what will happen in the future. I don’t lower the boom on people who have recently purchased a home, or who recently purchase a home. I don’t think it is the best economic decision but that aside, there are tremendous benefits from owning a home, including harmony in the family…My personal read on the market is that it will continue to depreciate over the next few years and the severity will be determined by the 10 year treasury yield and the default rate. Unfortunately I will not be able to wait out the cycle.
My read for the people who are going to buy now, just be aware, get as good of a deal as you can, negotiate, get rebate, just be tough. Yes the builders are going to weather the storm much better then many people think. They are savy, they have hug margins, they know how to control the rate of new releases to keep the demand high, and they know when and how to price competitively. I don’t think that the future will be that the builders in these nice areas will be slashing pricing. I think that there could be REO or distressed sales opportunities for people who purchased and cannot afford the homes. How many of these opportunities? Not sure.
Anyways, the site here has a diversity of opinions which I think is really good. Unfortunately it gets personal sometimes, and perhaps there are even shades of racism which is sad. Yet I think that even some of the uber bears have done very good factual research. I think that is why sometimes the more optimistic posters get slammed so hard. Many people who have come in and posted justifications for buying have used more speculative arguments, chiefly that the builders are still selling out phases. Undoubtedly this is true. However I think that it is a misconception to think that the entire market is tied to these phases selling out. On the other hand no uber bear can win an argument that simply states, my family will be happier in a home that we can afford, and that we own, and that economically we understand what is happening.
SD Realtor
Participantstop the bubble hype… If I were to bet a dime on anything, that bet would be that the majority of people who don’t post, but maybe read this site are people who are very much in the same boat as you and I. They want to purchase a home and they are looking to purchase for the long run. They are not speculators, not trying to flip a home or anything like that. Just pretty much trying to find a home in a nice neighborhood with a good school district. Profile wise I would imagine they are all 6 figure wage earners with good educations, and some decent money saved for a downpayment.
I have said ad nauseum that purchasing a home involves more factors then the sheer economics of what will happen in the future. I don’t lower the boom on people who have recently purchased a home, or who recently purchase a home. I don’t think it is the best economic decision but that aside, there are tremendous benefits from owning a home, including harmony in the family…My personal read on the market is that it will continue to depreciate over the next few years and the severity will be determined by the 10 year treasury yield and the default rate. Unfortunately I will not be able to wait out the cycle.
My read for the people who are going to buy now, just be aware, get as good of a deal as you can, negotiate, get rebate, just be tough. Yes the builders are going to weather the storm much better then many people think. They are savy, they have hug margins, they know how to control the rate of new releases to keep the demand high, and they know when and how to price competitively. I don’t think that the future will be that the builders in these nice areas will be slashing pricing. I think that there could be REO or distressed sales opportunities for people who purchased and cannot afford the homes. How many of these opportunities? Not sure.
Anyways, the site here has a diversity of opinions which I think is really good. Unfortunately it gets personal sometimes, and perhaps there are even shades of racism which is sad. Yet I think that even some of the uber bears have done very good factual research. I think that is why sometimes the more optimistic posters get slammed so hard. Many people who have come in and posted justifications for buying have used more speculative arguments, chiefly that the builders are still selling out phases. Undoubtedly this is true. However I think that it is a misconception to think that the entire market is tied to these phases selling out. On the other hand no uber bear can win an argument that simply states, my family will be happier in a home that we can afford, and that we own, and that economically we understand what is happening.
SD Realtor
Participantsdr thanks for the tip. I will be doing a Wed – Wed week so to speak.
Disasta, Stonebridge is should have your username on it… I have seen several short sales there already. To me it is going to be hit pretty hard and is already taking on water…
Characterwise it is not my type of town… The homes are okay, big homes, okay sized lots but to me it just looks like east east east (and a little south) extension of Carmel Valley… lost of scrub hills flattened out with pads and built to the hilt with 800k – 2M dollar homes. Nothing against it… just not my cup o tea.
SD Realtor
Participantsdr thanks for the tip. I will be doing a Wed – Wed week so to speak.
Disasta, Stonebridge is should have your username on it… I have seen several short sales there already. To me it is going to be hit pretty hard and is already taking on water…
Characterwise it is not my type of town… The homes are okay, big homes, okay sized lots but to me it just looks like east east east (and a little south) extension of Carmel Valley… lost of scrub hills flattened out with pads and built to the hilt with 800k – 2M dollar homes. Nothing against it… just not my cup o tea.
SD Realtor
ParticipantHype –
Been busy and just logged on for the first time just now. Will give you some cases late tonite on this thread.
Scruffydog you never answered my questions so I assume you will pass.
SD Realtor
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