DFW Metroplex Real Estate

This was a good way to learn about different ways to best treat all of our clients when it comes to fair housing practices. Most of what was covered has been part of my professional practice for years but there were some new scenarios that I needed to know about and I'm grateful the National Association of Realtors made this available to me!

Fairhaven: A Fair Housing Simulation I've successfully completed Fairhaven: A Fair Housing Simulation

On the Fort Worth side of the Metroplex, the real estate market is just as challenging for buyers as everywhere else in the region. While several factors caused the 2008 financial crisis, there were several safeguards put into place with the intention to lower the risk of another one. However, not all current safeguards actually protect consumers and actually raise the cost of purchasing a home. Good but ineffective intentions could allow lenders to get themselves into another crisis scenario. Prices are going up where demand is going up. However, some lenders are making the mistake of allowing customers borrow more money than they should. Appraisers are again under pressure to provide the highest values possible but fortunately, most are pushing back with solid justification why a home isn’t worth $20k to $40k more than its original asking price.

Could there be another proverbial bubble to burst? Yes but from what I see, it’s likely to be limited to certain regions of the United States. As long as mortgage lenders control the impulse to be greedy, the safeguards that are effective will come into play and allow reasonable value increases. Higher values are more manageable when not excessive so if there is a downturn in the market, lenders are less likely to see borrowers abandoning properties using the “deed in lieu of foreclosure” method.

State legislators can also help by restricting loan to value rations when it comes to refinancing. There is a high level of temptation for people to stay in their homes but effectively sell it to a lender by constantly refinancing until they can’t. When I moved from California to Texas, I initially thought it was unfortunate that the state limited the loan to value ratio of refinance loans. But, by limiting borrowers to refinance to a maximum of 80% of the appraised value, it keeps people in the game so they won’t risk the rest of their equity. I quickly grew to appreciate the wisdom in this limit. Texas weathered through the recession better than states like California where in 2008, people in the real estate industry and property owners suffered immediately and for much a longer period of time before the state’s economy recovered.

Over-regulating an industry can create higher costs of doing business which are passed on to consumers. It can also hurt people who were intended to be helped. However, if pro-consumer groups could work with lenders, Realtors, and legislators at the state and federal level, we’d likely see better regulatory actions being taken which protect everyone and the removal of those regulations which interfere with good commerce.

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Freddie Mac Single-Family Seller/Servicer Guide The new, user friendly Seller/Servicer Guide will make it significantly easier for you and your team to find, understand and share critical information.

The public needs to be VERY careful about bypassing professionals who have expertise in their field. Realtors live every day to protect their clients and get them the best value.

When it comes to listings, I spend a lot of time to help Sellers identify areas where they can make repairs, declutter, stage furniture and lighting, all to increase the desirability of their property and get more money at closing. The iBuyers mentioned in this article know exactly how to pick apart a Seller who thinks leaving out a Realtor will save them money when the reality is that the Seller will lose!

How Much do iBuyers Cost Sellers? A new study of technology-driven companies that offer to purchase homes directly from consumers—also known as iBuyers—attempts to show the true costs of this business model to sellers.