$300k – $5k > $295k (Huh?!?)

But, $320k – $25k ≠ $295k I can’t prove it, but at least when it comes to residential real estate deals, an offer for $300k less $5k in seller-paid points can seem more attractive to Sellers (if not their agents) than a $295k offer with no points subtracted. The explanation has to do with Seller psychology....
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Beating the Financing Buzzer to Closing (Just)

The Too-Good-to-Be-True Home Equity Loan When is a home equity line of credit (“HELOC”) — offered at a 2.99%, six month teaser rate — too good to be true? When, four months after the would-be Borrower first applied for the loan, the very big (and very overwhelmed) national lender still hasn’t approved it. Ticking Clock Usually,...
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Jumbo Loans Switch From Big Premium to Big Discount

Three Reasons Once upon a time — like in 2009, in the aftermath of The 2008 Crash — jumbo or “non-conforming” loans were significantly more expensive than conforming loans (under $417k in most parts of the country). When conforming loans were going for 5.5%, jumbo’s were fetching 6.25% or 6.5% — assuming you could find a...
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Deal Discounts — and Premiums

Avoiding Appraisal Minefields We may be small, but we’re slow. –Cal Tech football team slogan Once upon a time, when the credit spigots were wide open, Buyers’ financing didn’t much matter to Sellers:  at closing, they received cash. Period. Today? With fewer, strong Buyers out there, tighter credit, and more appraisal minefields to navigate, there is...
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Proliferating Downpayment Assistance Programs

It’s hard enough — as a busy Realtor — keeping up with new listings, pre-list’s, pending sales, showings, inspections, walk-thru’s, closings, listing presentations, networking, etc. for a stable of a dozen or more concurrent clients. The last thing I’m interested in doing is becoming an expert on the various downpayment assistance programs that seem to...
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Housing Market Disconnect

Cheaper More Expensive By the Dozen Usually, the more of something you have to sell, the cheaper it is. That’s just basic, “supply-and-demand” — Economics 101. So, when is that not the case? When it comes to rental properties in today’s housing market. Buyer’s vs. Seller’s Markets Currently, there is a huge disconnect between what duplexes and...
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