Vancouver Wa Real Estate Blog

An increasing number of appraisers and consumer experts say unrealistically low price estimates caused by short sales and bank-owned foreclosures are artificially depressing Clark County property values.

They are particularly critical of broker price opinions (BPOs), which they say are used because they cost less than property valuations by licensed appraisers.

David Berenbaum, executive vice president of the National Community Reinvestment Coalition, has asked Congress to outlaw using BPOs as a substitute for appraisals in distressed property transactions.

Defenders of BPOs say that real estate professionals know the local area and can do a realistic appraisal accurately.

The National Association REALTORS® said it intends to issue a policy statement in May, but it currently takes no position.

Source: Washington Post Writers Group, Kenneth R. Harney (03/28/2009)

via REALTOR® Magazine-Daily News-Appraisers Say BPOs Hurt Property Value.

Crystal Boldt General

Green Building Practice for Washington Housing on the Rise

Energy-efficient home manufacturing could be one of the few industries to grow and thrive in the present economy.  Consumers are looking for dwellings that are both affordable and sustainable, while manufacturers are eager to reduce production costs as well as reliance on foreign energy. Sixty percent of commercial developers provide seminars to tenants to show them how to reduce costs and maximize efficiency.

In Turner Construction Company’s survey of real estate developers, agents, brokers, builders, and other industry experts, 83 percent said they would be “extremely” or “likely” to pursue the USGBC’s LEED certification for upcoming building projects, despite the credit freeze.

Findings from other studies conducted over the past year include:

Seven in 10 home buyers are likely to buy an energy-efficient home in an economic downturn.

More than 80 percent of commercial builders will invest in green building practices this year.

Source: RISMedia (02/26/09)

Crystal Boldt General

What You Need to Know When Making an Offer on a Vancouver Short Sale

Are you looking to buy a new home? Are you thinking that now’s a great time to find bargains? Before you make an offer, it pays to know a little about the seller’s situation.

If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You’re a good candidate for a short-sale purchase if: Read more…

Crystal Boldt Foreclosures and Shortsales

4 Dangers of Broker Price Opinions for Washington Real Estate:

1. Not having a policy. Your broker should have a policy that spells out when it’s appropriate to prepare a BPO, what you can charge, who handles the fees, and who keeps records. Not having a policy is risky for you and your broker because state law could impose a penalty if BPOs are prepared improperly or mischaracterized. A BPO fact-finding group in Nevada found that in most cases, real estate professionals were preparing and getting paid for BPOs without their brokers even knowing about it. “There was no record-keeping,” says Pamela Kinkade, a member of the Nevada BPO task force. “And that’s a big part of our law.”

2. Using the wrong terminology. Appraisers determine property market value; sales associates preparing a BPO determine a recommended property price. Make sure that third parties aren’t calling your BPO a “market valuation,” which is the work of appraisers.

3. Breaking state laws. State regulations governing BPOs vary greatly. Nevada, for example, permits real estate licensees to prepare BPOs for clients only in a sales transaction. Many states don’t allow fee-based BPOs. Some states require that BPOs include a disclaimer that they are not appraisals and are not to be used for lending purposes. Certain laws also require that only appraisers provide an opinion of market value, and that BPOs must be limited to determining a purchase or sales price. Be sure to investigate what’s legal in your state.

4. Being uninsured. If your E&O policy doesn’t specify that it’ll cover liability for BPOs, get a policy that does. “Most brokers have no coverage for liability arising out of the purpose for which the BPOs are being done,” says Kinkade.

 Source: “Broker Price Opinions,” NAR Legal Affairs podcast, episode 18

Crystal Boldt General

The $8,000 credit and the higher loan limits could result in hundreds of thousands of new buyers and move-up buyers coming into the Clark County Real Estate market this year, says NAR Chief Economist Lawrence Yun.

 But these two aspects of the stimulus are just the tip of the iceberg for real estate. The new law includes tens of billions of dollars in other assistance through a variety of programs that impact real estate, such as commercial real estate tax credits and grants for low-income rental housing.

Crystal Boldt General

A Record Low for Mortgage Rates, Again

Just one week after 30-year mortgage rates fell to a record low of 4.85 percent, the average dropped even further to 4.78 percent this week, Freddie Mac reported.

Refinancing activity has picked up because of the low rates, and the Mortgage Bankers Association says approximately 80 percent of mortgage applications came from borrowers seeking to refinance.

Crystal Boldt Mortgage and Financing

What’s Next in Real Estate for Fannie and Freddie?

What’s to become of Fannie Mae and Freddie Mac, which are bleeding red ink as home owner defaults continue to increase?

The rising losses will force the government to decide whether to keep putting money into the firms to keep them operating or divide them into smaller businesses and remove government support.

Daniel Mudd, a former Marine, was Fannie Mae’s CEO before the government fired him and put James Lockhart, director of the Federal Housing Finance Agency, in charge. He likened the situation to the U.S. invasion of Iran. “The troops got to Falluja in a couple of weeks and seized the radio towers, but there was no plan to run the country once the shooting stopped,” he said.

Under the Obama plan, Fannie and Freddie are expected to refinance as many as 5 million underwater mortgages.

Fannie’s government-appointed CEO, Herbert Allison, said: “It’s not about maximizing returns on equity or profits. It’s really about being of use to the country during this very difficult period.”

Source: The Wall Street Journal, James R. Hagerty and Damian Paletta (02/27/2009)

Crystal Boldt Mortgage and Financing

Vacant Clark County Properties Raise Insurance Risk

Rising vacancies in commercial property increases insurance risk and ultimately the cost of insurance, warns the Chubb Group of Insurance Companies.

Chubb Group points to studies by the National Fire Protection Association that show an average of 14,900 fires a year occur in vacant buildings, causing more than $118 million annually in direct property damage. In addition, theft, vandalism, water, collapse and wind losses increase in vacant real estate.

The insurer offers these suggestions for owners of vacant commercial real estate:

Read the policy carefully for any policy terms and conditions applicable to vacant property.

Notify the insurer that the property is vacant.

Remove furnishings and all combustibles from the premises.

Advise local authorities that the building is vacant, including fire and police departments.

Inspect the facilities weekly. Consider hiring a guard service to drive by daily.

Source: Chubb Group of Insurance Companies (03/13/2009)

via REALTOR® Magazine-Daily News-Vacant Properties Raise Insurance Risk.

Crystal Boldt General

The housing market is looking healthier. Here are six reasons why now is the time to jump into buying Vancouver Washington real estate:

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Crystal Boldt General

Real Estate Loan Apps Rise as Washington Rates Dip Below 5 Percent

Average mortgage rates dipped below 5 percent last week, driving mortgage application volume up 11.3 percent to 723.4 from 649.7 the previous week on an adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, the index increased 11.6 percent compared with the previous week and was up 5.7 percent compared with the same week a year ago.

The increase was reflected in the government purchase index (mostly FHA), which rose 10.4 percent. The overall purchase index was up 7.1 percent. The refinance share increased to 67.9 percent, up slightly from the previous week when it was at 66.9 percent.

Mortgage rates were down to the second-lowest rate in the history of the survey, with the record low being 4.89 percent for the week ending Jan. 9, 2009.

30-year fixed-rate mortgages decreased to 4.96 percent from 5.14 percent;

15-year fixed-rate mortgages decreased to 4.54 percent from 4.73 percent;

1-year ARMs increased to 6.21 percent

Source: Mortgage Bankers Association (03/11/2009)

via REALTOR® Magazine-Daily News-Loan Apps Rise as Rates Dip Below 5 Percent.

Crystal Boldt Mortgage and Financing