With a year’s housing inventory on one side (sellers)…
and a prices back down where they should be and millions of new households being formed (buyers)…
all we need now is 700 billion put in the hands of companies that have no purpose other than to lend it back out (credit).
Better come soon
Hurry, my local competitionneeds work.
And a requirement that all home purchases require an inspection so that the underwriters are not financing more than the home is potentially worth.
From my recloection… Ain’t that the appraisers job?
Joe,
Does an appraiser remove heating unit covers and check for internal condition of a heater?
Does an appraiser remove heat shields on a hot water heater and check for scaling and other issues in the burner compartment? Do they check for rusting of flues and proper draft and combustion air issues?
Does an appraiser make a determination of the fitness of a homes foundation?
Does an appraiser crawl a raised foundation looking for damaged wood, etc.?
Etc., etc., etc.???
The answer to the above is NO! An appraiser only makes sure the home has an HVAC system and it can turn on and off. They oly make sure the home has hot water. They only make sure the home is still standing.
As a result of the lack of a Home Inspection, many lenders are financing death traps and piles of junk. What is the difference between that and the fancy loan packages that have caused the sub-prime problem? A problem home is just as much a financial time bomb as all of those special loans.
I understand what you are saying, I just don’t know how someone would quantify a home inspection to its potential worth.
Housing prices didn’t crash because people purchased junk homes riddled with unknown defects which tipped the balance of the total cost of ownership above the market price.
Housing prices crashed because of simple supply & demand that was twisted beyond all normal boundaries through loose lending practices, when the last flipper ran out of credit and could no longer sell his house to a greater fool the whole thing began to unravel.
Housing prices will continue to fall irregardless of government intervention until they reach a place where (a) people feel they are buying value, and (b) houses are priced no more than 3-times the average income of the people who live there who can also afford a to save a 20% down-payment. Until then expect home prices to continue to fall and fall even further before it is all over, nothing can be done to prevent this cycle from completing.
What’s really strange is…after yesterday’s news of the bail-out rejection, I’ve booked 5 inspections since last evening.
Hmmmm…
Great news David! I have slowed a bit but I see no reason to panic!..Just yet;-)
Joe,
See one response above. As for the rest of your statement, it has nothing to do with my response.
It will pass tonight, as I predicted.
Nick,
The House doesn’t meet until tomorrow at noon.
The Senate is trying to pass a bill today.
I thought all revenue bills had to go through the House first.:roll:
This is a move by the Senate to calm the markets, Nothing more.
It will be Law before the VP debate tomorrow.
Perhaps, but not tonight.:roll:
They can’t just let all these foreclosures sit and rot.
I have one 2 blocks form me.
It went into foreclosure a year ago.
There has never been a “for sale” sign on it.
It’s owned by Fannie mae according to local tax records.
It will sell cheap but it doesn’t even show up on their website.
How anyone could buy it is beyond me.
There it sits deteriorating every day.
And some want to give these fools a bailout.
What a joke.
BTW-I just heard the “new bill” in the Senate is now 451 pages long](http://senateconservatives.files.wordpress.com/2008/10/ayo08c32_xml.pdf) as opposed to the original 8 pages of Paulson’s.
We are being had by our lousy politicians.
**Let me say that again. The Senate is making the $700 billion Paulson plan an amendment to a mental health and addiction bill. **It’s crazy and fitting on a few different levels.
Real estate agents hate foreclosures too because you can’t do a 7% listing presentation to an out of state bank (like you can a seller).
2 weeks ago I met with my own little local bank to convince them to inspect all their foreclosures. While I was selling them, they tried to sell me and have me take all 40 non-performing properties from them, nothing down. The bank already owns them, can’t sell them, and are not cut out to be Landlords. “Here is your deposit slip Mrs. Jones, excuse me for a moment, one of our tenants is calling about the refridgerator bulb needing to be replaced.”
Anyway, this bail out is a go. Inspectors should be happy.
This is what I really don’t understand.
Bank repos house and gains an asset.
Bank lets house sit and rot, loosing piles of $$ on their asset.
Why don’t they have someone to manage the properties, keep them in operating order and rent them while they look for buyers?
If I were a bank I’d want every asset (house) bringing in some type of $$$ instaed of loosing $$$ daily.
Bankers are not good property managers. Period.