I wonder why we are experiencing such a slow down in my area with the real estate market. Property tax reform has increased my taxes by only $100.00 this year. My property insurance only increased by $300.00,( of course I had to change providers) lucky thing the state is handling that so well too! Now the banks are having a little trouble and larger mortgages are more difficult to obtain. Of course, FHA and VA loans not being affected by this, but, the flippers can’t sell their houses titled less than a year under new FHA rules to people who only qualify for FHA loans. These are the people who are generally first timers in the housing market at the low end. I wonder if the fact that they have to bring the 1200.00 to 3000.00 check for the insurance company to the title Co. at the closing is hurting their ability to afford the down payment? Or the availability of funds to secure my services. I know it has to be more difficult now, than say three or four years ago when the monthly escrow payment on the mortgage was half as much. Oh well time goes on and you have to roll with the punches. Right? This reminds me of a movie where some guy is on the radio telling everybody to start screaming out a high rise window "I’m sick and tired and won’t take this anymore!
I think it is the best time in history to be a home inspector. NAHB released July figures and inventory only dropped a notch which means that sellers are all over the place, desperate to try anything (www.MoveInCertified.com) as are their listing agents. Best of all, they’re not in hiding (like buyers)… they even put big signs in their yards just begging you to drop them off some literature about doing a seller’s inspection. And even better, you are not at the mercy of REALTOR referrals. You can go after their clients direct. Your potential customers have big signs in their yards! It’s like inspector heaven IMHO.
the reason we are experiencing ths low down is because too many people got in over their heads with mortages that they cannot handle once they adjust. They bought more than they would afford with the bait that was being dangled out there. Property taxes are crazy down here. If I was to sell and buy a similar house on my block my takes would go from $1900 to almost $3600. Add to that about $4000 in insurance and you have a payment of about $700 per month without your mortgage. Now add in about $1400 for you principle and interest and your payment is at $2100 per month. And that is for a low end house. Most people are paying a lot more because they had no down payment and were suckered into interest only or ARM loan that has now gone up.
Our economy was driven by a lot of speculators down here who only bought ot flip these houses. In the buying frenzy people would just buy and sell, seeking to make a quick buck. Well, that has all ended for the time being. It will take a while for the market to correct itself.
One of the biggest problems for a lot of home buyers was the disclosure laws. Many people bought a home, stretching their finances, not realizing that their taxes are paid in arrears and would adjust the following year. They were only told what the previous taxes were and not what to expect. I know that changed about a year or two ago, but a lot of people got caught up in that. Couple that with rising gas prices and food prices, and many people cannot live.
The state also needs to do something about taxes and insurance. The new tax laws they are proposing arent worth a damn. My property taxes went down less than $100.00 this year. Big Deal.
This situation does present opportunity for those of us in this business. There are all sorts of different avenues we can take that were not open to us a few years ago.
William is correct.
85% of my inspections today are Foreclosure inspections. Three years ago, I’ve never ran into a foreclosed home.