More than half of the participants in a nationally representative statistical sample of realty agents identified unreliable or bogus preapproval letters as a key cause of breakdowns in transactions…. I generally regard “pre-approvals” from internet lenders as less valuable and less credible than those issued by either national or local lenders…. No preapproval letters are worth looking at, Wilson added, if the lending institution has not thoroughly checked credit files, income and cash on hand.As always, knowledge is power.
Date Archives July 2005
Realestatejournal morning stories
First-time homebuyers’ emotional ride Avoiding rent during new-home construction
Analysis on the Real Estate Market
It is a University student’s dissertation titled “Assessing the Value of On-line Information Using a Two-sided Equilibrium Search Model in the Real Estate Market.”… One of the assumptions/conclusions with which I disagree is this – Our estimates suggest that, on average, only 3% of the relevant information that home- buyers collect before making a purchase decision is obtained through on-line ads. Furthermore, we use the estimated model to conduct counterfactual experiments and predict how improvements in the information technology affect the average posting price, transaction price, and time until a property is sold.
Excellent Bubble article
Looking at a recent magazine covers one is left with the impression that the whole world is concerned about US real estate prices. This is borne out by the fact that if you go to Google and type in sex you get 78,000,000 hits…. But if you type in housing bubble you get “only” 1,120,000, so there is not much worrying going on. While the above facts do not constitute a scientifically valid study, they make a fun launching point for this week’s letter.
Real estate boom to continue?
From the Big Picture.
1.
…The back-up in the 10-year Treasury Note yield is likely capped below 4.5% over the next three years, and that yield could fall to as low as 3.0% during the next recession (in 4.0 years).For better or worse, the free markets may be what leads the way …
Charlottesville’s airport continues to grow
The airport’s master plan was updated late last year, and the update calls for the construction of additional parking and hangers, and a deicing facility…. Dean describes the extension to the runway, which she says can currently accommodate 737s and does so for charter flights, as a measure to meet FAA safety standards…. The extension required a modest northward enlargement of Albemarle County’s “Airport Impact Area,†a large keyhole-shaped district that currently includes much of Charlottesville and the surrounding areas and restricts the height of structures within its boundaries for the sake of air traffic safety.
How to buy or sell a house
Surprisingly, 25% of buyers still don’t undertake this one measure that can save them huge hassles and expenses down the road.4…. If your agent really seems clueless, chances are he or she is clueless — not a good thing when hundreds of thousands of dollars could be on the line.That this many people neglect to get a home inspection is astounding. I kid my clients that “if they really want this house, they won’t get a home inspection;” I have been able to advise each and every one of my clients (so far) to get an inspection.