Real Estate Today News by Stewart Title Spokane

Bernie Madoff Investment Advice, Refi Myths Busted, Why It’s So Hard For the Poor to Get Ahead Today, and Most Expensive Home Styles in America.  Thanks for reading today!

Madoff: Don’t let Wall Street scam you, like I did
MarketWatch | June 5, 2013
If investment looks too good to be true, it is, says Ponzi scheme architect.

Another Top-10 List (and Bottom 10 List) — States Offering Most (Least) Comfortable Retirement
Jones on Real Estate | June 18, 2013
Economically speaking, where are the best places to retire (and economics may have nothing to do with climate, health services, proximity to medical care or nearness to family and friends)?

The most expensive home styles in America
Market Watch | June 17, 2013
Most people know that a mansion costs much more than a farmhouse. What many might not be aware of is that the style of a home can also have a major impact on its price.

How Interest Rates Affect The Housing Market
San Francisco Chronicle | June 17, 2013
In this article, we’ll discuss the influence of interest rates on the mortgage industry, and how both will ultimately affect the amount you pay for your home.
(A great little primer on mortgages and interest rates. ~Anthony)

Artificial Grass: It’s Not Just for Stadiums Any More
The Wall Street Journal | June 13, 2013
After a makeover, synthetic grass is showing up in residential driveways, courtyards and high-traffic areas.

4 Myths about Refinancing
Fox Business | June 18, 2013
Be sure to understand the process fully and the long-term financial impact of refinancing your mortgage. Here, the biggest refinance myths are debunked.

RIP, American Dream? Why It’s So Hard For the Poor to Get Ahead Today
The Atlantic | June 18, 2013
High-income kids who don’t graduate from college are 2.5 times more likely to end up rich than low-income kids who do get a degree.
A Comment below from a Mortgage Loan Officer on the cash sales article we had yesterday:

I found it interesting that the cash buyer article never mentioned the opportunity cost, or the risk of buying cash. People think that not having a mortgage reduces their risk. I have heard this many times, so I ask, “risk of what?” 

The reality is if you go all in on a cash deal to avoid a mortgage you may lose out on the opportunity to grow wealth ( as opposed to reduce debt. Just ask Bill Gates if growing wealth trumped debt reduction) and live a better life, or you put yourself at extreme risk when life happens.

If you have a major life event that causes income lose or creates tremendous debt (i.e. serious health problem) the fact that you have no mortgage will be a moot point. What you need is the cash reserves to make it through the crisis that are now tied up in your house and didn’t need to be.

Oh by the way, a refinance to extract that equity is rarely an option in these crisis situations (maybe a reverse mortgage may save you).

Cash buyers need better advice. Look at both sides of the equation. Sure no debt sounds nice…but at what cost?

Anthony Carollo / President
Stewart Title of Spokane
606 W. 3rd Ave. Spokane, WA 99201
509.328.7171 or 509.321.3939
Acarollo@stewart.com Anthony Carollo

Tags: advice, America, Bernie, Busted, Home, investment, Madoff, Myths, Poor Expensiv, Refi, Styles

Top Cities for College Grad Renters, Boston Parking Spots for $560,000, Downsides of Cash, and Gifting Property to Relatives.  Thanks for reading today and passing along to a friend!

10 Top Cities for College Grads to Rent In
The Street | June 17, 2013
College graduates are hitting the streets this summer looking for a good job in their chosen field and a good place to call home when the workday is done.

Rewards and risks of gifting property to relatives
Chicago Tribune | June 14, 2013
My firm suggestion: Let them inherit the property, and leave it to them in your wills.
(The Benny Kass advice column. ~Anthony)

Get This Look: Sliding Barn Doors
Zillow Blog | June 10, 2013
They’re called sliding barn doors, but the popular, space-saving feature doesn’t have to be country.
(My wife would love to find a way to incorporate sliding barn doors into part of our kitchen so this one is for Debbie.  All we need is time and money right? ~Anthony)

And With a Roof, They’d Cost Even More
The New York Times | June 14, 2013
Two Boston Parking Spots Sell for $560,000 at Auction

80 trips to find the perfect house
Chicago Tribune | June 16, 2013
In about a year, my wife and I had toured 80 homes — hundreds more if you count online searches.

How to Find Opportunities in Your Social Network
LinkedIn | June 12, 2013
Thirty years ago a landmark academic study demonstrated that most people who get new jobs through networking with others almost always get those jobs not from their closest friends or colleagues, but from those they didn’t really know as well.
(This is an excellent piece on networking, particularly social networking.  I’ve said for some time that if you are in sales, you are always looking for the next sale (or next “job”).

The Downsides of Cash
The Wall Street Journal | June 14, 2013
Cash home buyers need to guard their interests.

Cities with the best parks
CNNMoney | June 13, 2013
These five cities dedicate the most land and money per resident to their park systems and the results show, with plenty of green spaces for residents to enjoy, according to the Trust for Public Land.
(While not on their top 5 list, the Spokane park system is one of the finest in the country.  We’re so blessed to live here! ~Anthony)

Anthony Carollo / President
Stewart Title of Spokane
606 W. 3rd Ave. Spokane, WA 99201
509.328.7171 or 509.321.3939
Acarollo@stewart.com Anthony Carollo

Tags: Boston, Cash, Cities, College Grad, Downside, Gifting, Parking, Property, Relatives, renters, Sliding Barn Doors, top

What NOT to do at Your Open House, Sellers that Won’t Move Out, Invest In Real Estate Without Being A Landlord, and attack on Yakima real estate broker.  Thanks for reading today and passing along to a friend!

SELLERS: 5 Things Not to Do at Your Open House
Trulia | June 11, 2013
Sometimes, to keep the right focus, it’s best to eliminate the things we shouldn’t do. To help you stay focused on the items you and your agent agree will make your Open House a hit, here are a handful of things smart sellers should avoid doing.

Shooting quality real estate video on the go with your smartphone
Inman News | June 10, 2013
This may be the one format where an individual in a single location is actually more powerful than a national or global company.

Real Estate Agent Fires Back Over Sale that left Homeowner Unable to Move In
San Diego 6 | June 13, 2013
A real estate company says it’s not responsible to resolve a dispute that’s left an East County family unable to move into their new home because the sellers won’t leave.

How To Invest In Real Estate Without Being A Landlord
NPR | June 13, 2013
Many financial advisers say including some real estate in an investment or retirement portfolio is a good idea. It adds diversification.

Investors Backing Out of ‘REO-to-Rent’ Market
Aol Real Estate | June 12, 2013
Some investors say that they have priced themselves out of the market.

A Narrow Focus Helps Real-Estate Agents
The Wall Street Journal | June 13, 2013
Agents who specialize in a small area can build a reputation, become more familiar with a neighborhood and better understand a buyer’s needs.

Millennials Big Fans of Prepaid Cards, Payday Loans
USA Today | June 13, 2013
The survey of more than 1,000 people ages 18 to 34 by alternative financial products company Think Finance found that while 92% currently use a bank, nearly half, or 45%, say they have also used outside services including prepaid cards, check cashing, pawn shops and payday loans.

Suspects arraigned in attack on Yakima real estate broker
Yakima Herald | June 12, 2013
A couple accused of stalking and ambushing Yakima real estate broker Vern Holbrook while posing as homebuyers were arraigned Tuesday in Yakima County Superior Court. Meanwhile, investigators are trying to determine a motive behind the attack.

More feedback from another Mortgage Loan Officer in response to our link yesterday on Pre-Qualifying vs Pre-Approvals:
“Regarding the comment that pre-approval is ‘an underwriter or automated system has actually reviewed all data including a credit report.  The only item missing is an appraisal and as you know title.’  IMO the use of the automated approval system is STILL just a pre-qualification.  Nothing has been verified except credit and the AUS findings are completely dependent upon the knowledge of the LO that input all the client data.  The ONLY true pre-approval is when the Underwriter has reviewed those findings, plus the income and asset documentation. Big difference!”

Anthony Carollo / President
Stewart Title of Spokane
606 W. 3rd Ave. Spokane, WA 99201
509.328.7171 or 509.321.3939
Acarollo@stewart.com Anthony Carollo

Tags: attack, Broker, Invest, Landlord, Move, open house, Real Estate, seller, that Wont, update, Yakima

Top Reasons Renters Want to Own, Buying Cheaper Than Renting Til Mortgage Rates Hit 10.5%, and Banks Repossessing More as Home Prices Rise.  Today’s issue is loaded with great info, thanks for reading it and passing it along!

Top Reasons Renters Say They Want to Own
Realtor Mag | June 12, 2013
A recent study by mortgage giant Fannie Mae showed that 90 percent of renters aspire to be home owners one day, and the top reason behind that desire is for the sense of gaining greater control over their living arrangements.

Buying Cheaper Than Renting Til Mortgage Rates Hit 10.5%
Trulia Trends | June 12, 2013
Nationally, at today’s prices and rents, buying would be cheaper than renting until the 30-year fixed rate reaches 10.5%. San Jose has the lowest mortgage rate “tipping point” at 5.2%, followed by San Francisco and Honolulu.
(This is an great stat to have in your toolbelt! ~Anthony)

Banks Repossessing More Homes as Home Prices Rise
USA Today | June 12, 2013
Banks repossessed 11% more homes in May than in April, potentially a sign that they, too, want to unload homes in a strong market.
(Amazing reversal but it makes odd sense.  Since prices are going up, now banks are more willing to take the properties back. ~Anthony)

Three Steps to Help Homebuilding and Real Estate
Kitsap Peninsula Business Journal | June 12, 2013
Derek Kilmer, the U.S. Representative from the 6th Congressional District in Washington, discusses three things the country needs to do to get the economy — and specifically the real estate and homebuilding industries — back on track.

Are Renters Here to Stay? Spoiler Alert: Experts Say Yes
HousingWire | June 12, 2013
Since housing crashed in 2008, renting households have jumped to a surprising 38 million, a number that is expected to continue rising to 41 million in the next two years, according to the U.S. Census Bureau.

Immigration Reform Could Spur $500 Billion Added Dollars into Residential Real Estate
Jones on Real Estate | June 13, 2013
There exists a potential to create three million new homeowners over the next five years, with a potential spending on housing, consumer spending and closing costs totaling $500 billion over the next five years.
(I certainly see both sides of this issue, but the potential for the economy if reform were passed is huge. ~Anthony)

Homebuyers Pile Into Market As Interest Rates Rise
Investor’s Business Daily | July 12, 2013
Homebuyers are rushing into the housing market as interest rates rise, afraid they might miss the low-rate boat.

Survey: Growing Number of Applications Submitted During Work Hours
The MReport | June 12, 2013
A majority of people applying for mortgage loans online are applying during work hours, according to a recent survey by MortgageMarvel.com.

From a Mortgage Loan Officer in response to our link yesterday on Pre-Qualifying vs Pre-Approvals:
“There is no doubt that pre-approvals have taken the place of pre-qualifications in the past few years.  Most of this has to do with the verification factor.
Pre-qualification is merely that – - it is nothing more than an opinion from someone and nothing is verified. i.e. income-credit.
Pre-approval is exactly that – - an underwriter or automated system has actually reviewed all data including a credit report.  The only item missing is an appraisal and as you know title.  Therefore, the pre-approval is always conditioned upon those items.
A seller or listing agent would surely require a pre-approval vs. pre-qualification in a fast moving market.”

Anthony Carollo / President
Stewart Title of Spokane
606 W. 3rd Ave. Spokane, WA 99201
509.328.7171 or 509.321.3939
Acarollo@stewart.com Anthony Carollo

Tags: Banks, buying, cheaper, Immigration, More, mortgage, Own, Rates, Real Estate, Reasons, reform, renters, renting, Repossessing, top

Buffett’s Go-To Gal, Cash is King, Pre-qualify to Pre-approval, Luxury Agent Staging Tips, and Borrowing from the Mob.  Thanks for reading today and passing it along!

The Dodd-Frank Mortgage Shift: From Pre-qualify to Pre-approval
HousingWire | June 11, 2013
The Dodd-Frank Consumer Protection Act, which was signed into law in July 2010, forever changed the housing market landscape. Designed to restore consumer confidence in the housing industry, the law has created strict regulatory mandates, the impact of which are being felt by both mortgage lenders and mortgage seekers.
(I would love to hear from some lenders and agents on this issue: Benefits?  Pitfalls?  In your market, is it a worthwhile effort or not? ~Anthony)

Avoid getting sued: 5 tips for real estate pros
AGBeat | June 10, 2013
Real estate professionals can avoid getting sued by managing their risk and being aware of the true vulnerabilities in the industry. Hint: lawsuits aren’t always over contracts.

Sell the Dream: 7 Luxury Agent Staging Tips that Work Anywhere
Trulia Pro Blog | June 11, 2013
Talk with your client about the selling tactics that will really get them to the finish line – and in the time and for the price they want.

Buffett’s 28-Year-Old Go-To Executive
The Wall Street Journal | June 11, 2013
Tracy Britt, at 28 years old, has become one of the most influential women within Warren Buffett’s Berkshire Hathaway.

Bove: CFPB Will Send Consumers to the Mafia
The Wall Street Journal | June 11, 2013
Is Richard Cordray, the head of the Consumer Financial Protection Bureau, pushing consumers into the hands of folks like Don Corleone?

Cash is King – In the Housing Market
Jones on Real Estate | June 12, 2013
For decades it seemed that 12 to 14 percent of all housing sales were cash transactions involving no loans what-so-ever.  Then along came the housing crash in 2007.

States with the Fastest Growing Economies
24/7 Wall Street | June 12, 2013
(Hello Northwest!  Check ‘em out! ~Anthony)

House seekers play all angles in tight market
The Boston Globe | June 11, 2013
With inventory down and prices rising, buyers are exhibiting the kind of frenzied behavior not seen since 2005.

Anthony Carollo / President
Stewart Title of Spokane
606 W. 3rd Ave. Spokane, WA 99201
509.328.7171 or 509.321.3939
Acarollo@stewart.com Anthony Carollo

Tags: agent, Avoid, Buffett, Cash, Economies, Fastest, Growing, Luxury, Preapproval, Prequalify, Staging, sued, Tips