Rates are slowly drifting upward. They have risen ½ % point since the lows of last fall. People have gotten too used to low rates and don’t get that this is historic and not normal. The federal reserve has been artificially keep in g interest rates low by buying up 10 year bonds. This is the rate that determines mortgage interest rates., Just the announcement that they are planning –just planning- to end this has started the upward spiral. They have not said if they will stop buying all at once or gradually.
Read more on Mortgage Interest rates heading higher…
Time is the one thing that you can’t get back and is severely limited. Real estate is a business that takes time, like any business, and you have to treat it like such if you want to succeed.
Follow up is sooooo important. You need to keep track of every lead; where you are on it; and when you last spoke to them. Then you have to follow up on every deal that is in the closing process – who the parties are and what the important dates for compliance are.
Read more on Time Mastery…
As if it was not bad enough that the mls is rigged, the appraisal system is also. We have been hearing for a long time that deals are falling through because of low appraisals. Now the consumer protection bureau wants to get involved. They want it to be law that you see:
1. all houses used
2.what kind of license the appraiser had
3. how much of your fee actually went to the appraiser
4.Is the appraiser local
5. Did they use a computer or actually saw the house
Its important to know this . The NAR reported that 33% of all appraisals were a problem. Because the appraisers are receiving such a small part of the fee, you get inexperienced appraisers who don’t the area and tend to count distressed sales as part of the comps.
In addition, many think the banks are purposely doing this to keep appraisals low so they can keep the loan low to protect themselves.
I am getting my sign and going out on Torrance Blvd to join the activists. Sometimes i wonder if it matters who wins the election.
A few years ago i told you that Detroit was a steal. You could have purchased houses for $1000. Everyone wrote it off but i know better. Experience has told me that things come back. I knew the auto industry would come back. The govt would not let it fail. There used to be a saying that said, “AS General Motors goes, so goes the nation”.
Read more on Can I say my 4 words?…
The fed was buying up a lot of treasury bonds but have now stopped. They were artificially keeping interest rates low- in short- printing money. So if you have not purchased your own …