Now I understand why some foreclosure agents (who typically deal with a lot of offers) are so difficult to get a response from when I submit an offer to them. I have a listing that we “event priced,” that is, we listed it at such a good deal for the neighborhood it’s in that lots of people made offers. We had initial offers that went 25% over asking, so we countered everyone back at that. A number of people dropped out with the attitude of “Was that a typo?” “How do you think you are going to get that?” and the like. But we did get a few that were up at that price, and the highest one was quite a bit over.
So why did it take us almost a month to get this home in escrow?
The highest offer was VA financing, which means no down payment, seller to pay 3% of the buyer’s closing costs. The real issue is that, because the house needs work, a VA appraiser could require a lot of repairs and the seller would have to fix them before the loan could be finally approved. The seller isn’t in a position to do repairs (a major reason why we priced it the way we did.) So this is kind of a “teaser” offer. When I asked the lender what could happen with the appraisal, he said it was 50/50 that they would require a lot of repairs. How much of a gambler is the seller?
The next highest offer was for cash. They accepted our terms, but didn’t read the offer well enough to see that they were supposed to counter us back with their best and final offer. We couldn’t reach them for several days and when we did, we were told that we should have emailed them. So why give us phone numbers? Why didn’t they tell us that? Then they said yes to our “best offer over” price verbally, but then they countered in writing at $15,000 less.
The next offer was the most reliable deal: cash, a good agent, a savvy buyer. But at this point it’s the third highest.
Which one would you take? Or would you keep waiting?
Don't panic: Economy is not as bad as 'experts' sayCommentary: It's time to debunk 'Global Depression'
By Lou Barnes
Take a deep breath. Two. Unclench your hands. Let loose your shoulders. Look out at a brilliant fall sky. Leaves. Breathe again, but for scent.
Put this global/financial/political whatever-it-is ... put it down. Back away from it, and look at it from a long ways off.
Domestic U.S. growth is marginal, but not recession. New weekly unemployment claims are steady near 400,000, with no new wave of layoffs. Purchase mortgage applications are too low to work off excess inventory, but they are stable.
The Chicago Federal Reserve Bank's national index is at -43, which is below the long-term trend line at zero in its index but far above the -70 that would mark recession. Orders for durable goods were flat in August, but held the huge July gain.
It's flat and soggy, but hardly over the cliff that you'd think from listening to many media reports -- and especially to the talk from people in financial markets.
These financial folks are normally the Pollyannas of the airwaves. Upon any devastating flood, nuclear accident or outbreak of war, they've got a loopy grin and a new investment for you to buy. Note how strange it is that finance types sound so panicky these days.
People in markets rarely get hysterical at the same time. Yet the brightest -- Nouriel Roubini, Robert J. Shiller, Martin Wolf, Goldman Sachs itself, George Soros -- are engaged in "Depression leapfrog," every day finding some new reason that the world will be unable to save itself. Risk-averse markets become a self-fulfilling prophecy, imploding.
The most immediate threat is Europe. In 1999, Europe embarked on a common currency to remove the trade-inhibiting risk of volatile rates of currency exchange. That minor problem, easily hedged, has created an entirely new and gigantic one: The euro nations must synchronize not just their borrowing and trade, but their entire economic cultures.
I don't think it will happen, but it may; in any event, this talk of a "Global Depression" as the inevitable result of breakup and/or austerity is nuts.
Italy knows how to run Italy, odd as it is, and France can run France, and so on for each of them. Germany does not know how to run Spain, nor Ireland how to run Germany. If the union blows, back these nations will go to dealing with their own affairs. Separation would be a relief.
Financial types howl, "It's all so interconnected that taking it apart will be the end of life on earth!" Translation: We don't know how to trade it, and we can't figure out who is exposed and how much.
The European Commission in Brussels -- the nascent pan-European government that ain't gonna happen -- says every day that the euro must survive and of course it will because nothing is wrong. (The talk of freeloaders trying to keep their paychecks running?)
Poor Angela Merkel, a scientist trained in Soviet East Germany, is hopelessly unprepared -- she apparently neither wants change nor can grasp its elements, instead clutching at status quo.
Europe has no voice. Change is going to come, and it will be briefly chaotic but will rationalize a hopelessly irrational situation. The euro is only 12 years old, and the status quo ante is hardly a mystery lost in ancient times. The lurch will be quite something, but the locals know what they are doing.
The economic situation here is different, but the problem is the same. No voice. No voice at all. No one to explain, to trust.
The most powerful forces in Great Depression recovery were Franklin Delano Roosevelt's grasp of the essential -- nothing mattered but the economy -- and his voice. My Okie parents and grandparents spoke for the rest of their lives about gathering in front of the RCA when FDR would speak: "Nothing to fear but fear itself!"
Here, as in Europe, the locals know what they're doing. Every state and town is doing what it must to get its budget under control, to raise revenue as it can, and to look after its citizens.
From a safe distance, staring at this predicament, please do not mistake the temporary incapacity of the largest governments for an inability to manage our affairs. We go on. We adapt. Collective arrangements come and go.
Copyright 2011 Lou Barnes
Interesting homes for Interesting people
Sent from my iPhone
Interesting homes for Interesting people
Sent from my iPhone
The Thirteenth Annual Eagle Rock Music Festival is looking for festival volunteers.
Eagle Rock Music Festival is an annual centerpiece in our free arts programming of Center for the Arts, Eagle Rock, one of the last remaining arts and cultural programming centers in Northeast Los Angeles. Center for the Arts, Eagle Rock is a non-profit 501(c) 3 organization whose mission is to provide multicultural, innovative arts programming to the communities of Northeast Los Angeles. Programs include exhibitions, community festivals, free and low-cost after school arts classes, a Summer Art Camp, and more.
Volunteering at Eagle Rock Music Festival is an opportunity to put your talents to good use, learn new skills, and make new friends who love music as much as you do.
Our volunteers are present at every entry point to the festival, and many stages and venues along the boulevard. Most volunteer jobs require little to no experience.
FIRST, fill out the Volunteer Preferences Form Here: http://is.gd/NtJvhk
Then plan to attend an Eagle Rock Music Festival Volunteer Meet Up!
We’d love the chance to meet you in advance, so if you’d like to pop in and meet some of the Center for the Arts Eagle Rock staff and other volunteers, please come by at one of the times listed below, and bring friends who want to volunteer, too. These are scheduled as casual meetup times, drop in, hang out, we might have some projects to do, like badge-making or sign-making, or we might just hang out and get to know each other better, answer your questions, talk about bands… etc. We’d love it if you could make it to one of the Volunteer Meetups, but they aren’t required and no need to attend all of them.
• Sunday, September 25 11:00 AM – 1:30 PM
• Tuesday, September 27 6:00 PM – 8:00 PM
Center for the Arts Eagle Rock’s address: 2225 Colorado Blvd. Los Angeles, CA 90041
Once you have completed the online volunteer application, and attended one of the Volunteer Meetups, you’re good to go. If you can’t make it to a Volunteer Meetup, it’s fine, but plan to come 30 minutes early for onsite training before your first shift!
Connect With Us And Promote Our Festival On Social Media!
Please click on 'ATTENDING' our Facebook event, Volunteering at Eagle Rock Music Festival on October 1, so that that you’ll be able to see the questions that have been asked and answered already, and you’ll be among the first to get new information as it becomes available:
Please LIKE our Facebook page, Eagle Rock Music Festival: http://www.facebook.com/eaglerockmusicfestival
Follow us: @ermusicfest
Promote Our Bands Playing Eagle Rock Music Festival
LIKE our bands on FB, follow them on Twitter. +1 them on Google+ ! Promote their shows and set times at the fest to your circles of friends! ! For more info on the bands playing go here: http://eaglerockmusicfestival.wordpress.com/band-info/
If you are not a social media-ist, no worries! It's gonna be a great time for everyone who volunteers.
Interesting homes for Interesting people
Sent from my iPhone
Our buyers just closed escrow on this remodeled end-unit condo in a prime Pasadena location. The unit has quality finishes throughout, from the distressed maple hardwood floors throughout to the basaltina vulcanic rock countertops and farmhouse sink in the kitchen. The living room has vaulted ceilings and a stone fireplace with alder wood mantle. A loft on the second story, with full bath, adds extra space and leads to a large rooftop patio. This is the perfect urban Pasadena home!
Listing and Photos Courtesy of Roy Tucker, Re/Max Tri-City Realty
Listed for $579,000
Sold for $560,000 on September 20, 2011
2 bedrooms, 3 baths
1,860 sq. ft. (condo)
The state of California is soaking in the last rays of the calendar summer and cashing in on the last days of the traditional homebuying season, with sales soaring in August and the median home price touching on its highest reading of the year.
Data provided by the California Association of Realtors (C.A.R.) puts the statewide median price of an existing, single-family home sold in California last month at $297,060.
“August’s median price marked the highest since December 2010, signifying that prices may be stabilizing in some market segments, as investors and first-time buyers continue to see value and opportunity in the market,” said Beth L. Peerce, C.A.R. president.
The August price point is up 1 percent from a revised $294,050 in July. Last month’s was the highest reading in eight months, but remains 7.4 percent below the $320,860 median price recorded for August 2010.
The San Francisco Bay area registered a median price of $498,190 last month, while the Inland Empire came in at
$173,670, and the Los Angeles metro fell in between at $275,100.
Closed escrow sales of existing, single-family detached homes in California rose to a seasonally adjusted 497,390 units in August, up 8.6 percent from July, according to information collected by C.A.R. from more than 90 local Realtor associations and MLSs statewide. August home sales were up 10.2 percent from the same period last year.
Leslie Appleton-Young, C.A.R.‘s chief economist, says while the increase in August sales is encouraging, this data is largely based on closings that occurred before the debt ceiling debate in early August which spawned increased concern about the future of the U.S. economy.
“How these events and the impending reduction in the conforming loan limits will impact home sales and prices in the coming months remains to be seen,” Appleton-Young noted.
C.A.R.’s index of unsold single-family housing inventory was 5 months in August, down from 5.5 months in July and 5.8 months in August 2010. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.
The biggest backlog of housing stock can be found in the Los Angeles metropolitan area, but at only a 5.4-month supply, even that is well below the national average.
By comparison, the National Association of Realtors’ assessment of market conditions for the month of July put the overall inventory of unsold homes in the U.S. at a 9.2-month supply.
The California Realtor group reports the sales cycle for single-family homes was a median 52.7 days in August, compared with 45.5 days a year earlier.
For more pictures and details visit www.2611OneidaStreet.com
Listed for $1,175,000 by Cynthia Luczyski, Deasy/Penner and Partners
Sold for $1,184,000 on September 16, 2011.
2,094 sq. ft. on 0.25 acre lot
Built in 1925
|Very concise and accurate assessment of the appraisal issues I have been commenting on for over 2 years.|
| 5 ways appraisals are sinking real estate deals | Inman News
Source: inman.comWhy your loan may be denied. The first article of this series described an epidemic of late-stage mortgage loan rejections. These rejections are very costly to consumers because they occur after the payment of an appraisal fee, and in some cases after payment of a nonrefundable fee to the lender.A major factor underlying the increase in late-stage rejections is a decline in the quality of appraisals, which is the subject of this article. Why appraisal quality has declined: market factors Part of the decline in appraisal quality has been the result of market factors beyond anyone's control. Home-price weakness: During the go-go years before 2007, home prices generally increased. Both appraisers and underwriters implicitly assumed price increases would continue, which imparted an upward bias to appraisals.