[SD Realtor]

Yes that does expire 6 months from inception. As much as you feel this is all about nothing, I think it is particularly worrisome from several different aspects.

The prime beneficiary of the bill is also the author of the bill, unless you believe Senator Blunt spent lots of time crafting it on his own. Noth withstanding Monsanto is a regular contributor to Blunts campaign.

What seems to also be somewhat vague, is that nobody seems to be able to recollect who came up with Section 735.

Let’s look at the text.

Sec. 735. In the event that a determination of non-regulated status made pursuant to section 411 of the Plant Protection Act is or has been invalidated or vacated, the Secretary of Agriculture SHALL, notwithstanding any other provision of law, upon request by a farmer, grower, farm operator, or producer, immediately grant temporary permit(s) or temporary deregulation in part, subject to necessary and appropriate conditions consistent with section 411(a) or 412(c) of the Plant Protection Act, which interim conditions SHALL authorize the movement, introduction, continued cultivation, commercialization and other specifically enumerated activities and requirements, including measures designed to mitigate or minimize potential adverse environmental effects, if any, relevant to the Secretary’s evaluation of the petition for non-regulated status, while ensuring that growers or other users are able to move, plant, cultivate, introduce into commerce and carry out other authorized activities in a timely manner:Provided, That all such conditions shall be applicable only for the interim period necessary for the Secretary to complete any required analyses or consultations related to the petition for non-regulated status: Provided further, That nothing in this section shall be construed as limiting the Secretary’s authority under section 411, 412 and 414 of the Plant Protection Act.

Now you said

“The text also provides the Secretary of Agriculture the ability to put in place provisions to insure the safety, but prevents the court from blocking research because someone is alleging health consequences until the health consequences are determined.”

Note that I capitalized the SHALL. This doesn’t say can, this doesn’t say may, this says SHALL.

Let me ask this? Why was this provision needed at all?

Really there is not any fundamental need for the provision other then to benefit large scale producers. I also do not see how the above text was blatantly false. In fact, there is nothing that any courts can do to prevent growing or transporting crops while this provision is in effect.

What am I missing? How can the courts do anything?

[SD Realtor]

Not really mixed urban legend at all.

Look for section 735.

[SD Realtor]

All I can say is out of the past 8 properties my clients have bid on, 6 of them had counters that came back with a removal of the appraisal contingency. The seller also will move up the inspection contingency to 10 days knowing full well it is hard, but not impossible, to get an appraisal completed in the 10 days. This prevents the buyer from saying he will remove the appraisal contingency when in reality he has no intention to do so. In most of those same counters, the seller jacks up the good faith deposit to 3% as well.

Yes if the property does not appraise you the buyer must cover the shortfall with cash or back out. If you say you are backing due to the property not appraising when you waived that contingency in the RPA then yes you lose your deposit. If you back out and say you are doing so for other reasons but have not removed those other contingencies yet then you will not lose your deposit.

Hard for appraisers right now because the leg up is so steep that there are not enough reliable comps to justify the new prices. Soon there will be but and we are getting more solds to help them bridge the price gap. In the meantime sellers do this sort of stuff.

As for the property not appraising in the cases I have seen the buyer is covering the shortfall with a higher downpayment.

[SD Realtor]

The new normal is waiving your appraisal contingency. Seeing that much more. I am sure it is temporary until we get through this leg up.

[SD Realtor]

More links if you like.

http://www.stltoday.com/news/opinion/columns/the-platform/editorial-blunt-s-monsanto-protection-act-undermines-legislative-process/article_9ebdf98a-950c-5e84-a1b4-ab9462b32db4.html

http://thinkprogress.org/health/2013/04/10/1832621/monsanto-protection-act-power/

http://rt.com/usa/monsanto-congress-silently-slips-830/

[SD Realtor]

Paramount don’t fret to much. Even if you did not depreciate the property (I believe) the govt still recaptures depreciation! Pretty crazy huh? Anyways if you do sell it you will be taxed on the depreciation recapture, however the money saved on taxes over the years you did depreciate it tends to match or exceed that. Also if you have gains on the sale from a pure cost basis standpoint (forget about the depreciation recapture for a moment) then you can write those gains off against any capital losses you may be carrying forward. If you don’t have any and you have to pay taxes on gains and recapture that is not the worst thing in the world is it?

The other option to avoid it all is to 1031 it but that probably doesn’t work for you. If you think the sky is going to fall then bail out altogether. Personally I would hold the property, even if you do move out of the state.

[SD Realtor]

Funny FSD I was talking to my CPA about all of this stuff. The rules have tightened up considerably. No more outs for income property owners who try to jump back and forth. Good way to earn an audit. As you said those laws have changed considerably.

[SD Realtor]

Don’t know the numbers however my advice to anyone moving up would be to do just what those 80% have done if you can swing it.

[SD Realtor]

foreclosureforum = good place for stats.

[SD Realtor]

Agreed zk. Especially with the wage inflation part. I see everything but wages inflating. It has been happening for years. I am much more in the camp of Stockman rather then Krugs. What has been happening is criminal.

The banksters have never had it so well.

[SD Realtor]

Not sure zk. The pent up supply thing is a mystery. I think that if I were an underwater guy, and I saw other under water guys get loan mods, or forgiveness, or live for months or even years without paying a mortgage, perhaps I would think twice. Why sell? Even if the home appreciates to where you are not underwater why sell?

Sounds like we are the same. I have spent the last 3 years buying as much RE as I could however none of it is in Cali. By trade I am an engineer so it is my nature to try to figure everything out. However that is not always the case in RE especially in this situation. It could be a blend of alot of things. The stock market is rising but alot of people consider that riskier then then RE. If you buy 600k worth of equities and they depreciate by 200k you lost 200k. If the same thing happens to your home you get a loan mod or maybe some forgiveness.

Easy choice to make right?

Is RE a good hedge against inflation? Maybe…. only if there is wage inflation as well. So maybe it hedges maybe the asset depreciates but you are locked into a low rate that you locked in with yesterdays dollars…

I wish I knew the reason only because I could then give clients good advice as to when I think things will normalize again. Right now I get asked when will things normalize and all I can say is when we finish this leg. Maybe in a month or two, maybe end of summer… maybe longer. We just look at supply and DOM.

[SD Realtor]

I think one of the things about piggs is that some of them overthink the situation. They go beyond the charts and dig up underlying causes for the chart movements, especially on the way down. Then when the charts change, even though some of the underlying causes may have remained in place, some of them did not waiver. Most of them did. Even Rich himself justified his purchase based on what the charts displayed rather then go well beyond those charts. Indeed the vast majority of the old schoolers who used to populate the forum here are long gone as they purchased based on that same data. The only regret I hear from many of them is that they didn’t buy more.

While things are moving fast now, it wasn’t like that. We came out of it in 09 slowly, ramped up, then dipped….. then came out of it slowly again. I don’t believe we have seen a surge in demand, (from the quantity of buyers) just a lack of supply that makes those buyer act in a more frenzied manner. Seems to me this started to happen around summer last year and started to pick up steam over the winter.

[SD Realtor]

zk I don’t think we are at peak pricing but I don’t like to speculate on something that can be verified with data. I know plenty of people who are underwater as well. Again, that is fine anecdotally but it doesn’t matter. Back in 2009 and 2010 there were WAY more people underwater and people who could have bought back then but did not were foolish. However back then we DID know that the govt would backstop the entire real estate market. I posted that routinely as well as argued back then and well before that the tsunami was a pipe dream.

If you think it is relevant then that is okay, we are all entitled to our opinions. Mine is that it absolutely has no bearing on the market and I have been consistent in that opinion.

[SD Realtor]

zk I am a bit to busy to go back and gather the data to determine what was peak pricing and then compare it to comps.

I prefer to think of the direct bottom line. Speculating about who is and who is not underwater is useless. People cling to the notion of the underwater inventory for reasons that elude me. Even if there is the vast underwater inventory that these people hope, for the govt has already shown us that there is no moral hazard and that these people will be bailed out through programs already in place.

So what does it matter?

I am seeing exactly what Jim is writing about. It is sheer carnage in the middle pricing tier under 1M.

The only real mystery is why the lack of inventory.

[SD Realtor]

A prime example of the craziness. This was not happening in the prime bubble years.

Intensity Rising

[Author]

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