tight credit

Real Estate and the 80-20 Rule

The Economy’s Gordian Knot “For many events, roughly 80% of the effects come from 20% of the causes.” –The 80-20 Rule, also known as the Pareto Principle My corollary to the 80-20 Rule in today’s housing market:  Twenty percent of prospective home Buyers can get financing on a home of their choice, on terrific terms....
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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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Preventing Financial Stroke

Tightening Credit Snares the Healthy, Too Without doubt, credit was extended too freely over the past 15 years, and a rationalization of lending is unavoidable. What is avoidable, however, is taking credit away from people who have the ability to pay their bills. If credit is taken away from what otherwise is an able borrower,...
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