It's Pretty Stormy Out There

It's Pretty Stormy Out There

It’s pretty stormy out there

It’s Saturday, we are just coming to the end of the first quarter of 2016 and as I sit here writing this month’s insight, I am thinking of storms – the recent weather we’ve been having and also the economic climate of the oil and gas industry. 

As you may know from January's post (The Market was Hot, Now it's Not) the real estate market in Houston’s top suburbs was doing incredibly well. We termed the market “hot”.

Despite having been in the Real Estate business for nearly 15 years, I was very pleasantly surprised that by the end of 2015 the low oil price hadn’t had more of an impact. I was, however, feeling a little anxious for 2016.

The sky has to be falling.

 

The sky isn’t falling

Chicken Little WallpapersAfter a little over two months into the new year, we already had our best quarter on record. We have been VERY pleasantly surprised.

Sales have continued to be robust, with houses reaching asking price, and one or two even going OVER asking.

I was also surprised by the number of listings coming our way.

Can this be right? What’s going on?

Here are my thoughts: buyers are still relocating here from overseas and within the United States. Houston is still growing. We are also seeing a lot of clients that want to take advantage of the continuing, attractive interest rates.

How do you get over asking price in this market? The key is presentation.

Well-presented houses in good locations are still sought after and are holding their prices very nicely.

A Perdomo Golden Rule of selling – like a family portrait photo – dress your house for the occasion!

That’s what we advised the clients mentioned above to do. The results - we secured multiple offers and a couple of bidding wars.

If you are thinking about selling, take a look at last month's post explaining some of our simple and practical advice for preparing your home for sale (Love it to List it).

Alternatively, please feel free to give me a call if you need any personal help or advice on selling your home. Our recent experience suggests that we can get a very good price, even in today’s market.

Fingers crossed for second quarter – we’ll let you know what we find.

For an update on the mortgage loan process…

After the 2008 financial meltdown, Congress established the CFPB (Consumer Financial Protection Bureau). Since August 1, 2015, lenders now have additional forms and guidelines to abide by in order to provide a mortgage loan. This is called TRID (TILA-RESPA Integrated Disclosure).  This was a pretty big change for realtors as well.  We have had great success with closing on time but were a little nervous about it initially.  Our friend and lender, Kelley Donahoe, with Amegy Bank, sent us an update on how the transition is going. Please see below.

Thank you for reading.

Kim

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2016 TRID UpdateBy Kelley Donahoe

 navigating the trid highwayPost implementation of the TILA/RESPA Integrated Disclosure Rule (TRID), coordination among all parties is priority number one and the key to closing on time.  The biggest effect of TRID is the condition that all clients receive their closing disclosure three days prior to closing and that it is prepared by the lender and not the title company.  This new legal requirement has put pressure on the mortgage industry and additional stress on the lender to meet the closing date detailed in the purchase contract. 

It is important that the real estate agent guide their client towards lenders they know stay on top of their loans and have a history of meeting their close dates.  Realtors are able to facilitate this process by ensuring that the adequate number of days necessary to meet a realistic closing date has been stated in the purchase agreement contract.  We find that industry-wide it takes 7-12 days longer to close than pre-TRID.  It is imperative that parties communicate during the transaction, specifically when changes are required, so the planned closing date is not delayed.  Due to timing constrictions of TRID, there has been an emphasis to train consumers about the added efficiency of using a lender's electronic documents system.  Closing cannot be scheduled until the closing disclosure is signed.  If for any reason there is a delay in accepting and signing the form, then closing may be delayed as well.  It is not until this point that the seller knows his or her home will close on time.  This can provide added stress to scheduling a mover and may lead to the need for leasebacks in contracts to ease some of the stress. 

The key to a smooth and timely closing is primarily linked to the communication between, lender, buyer, R/E agent and title company.  We all have the same goal - to close the loan smoothly and on time.  The fear of TRID is behind us.  With a strong interest rate environment and a favorable inventory selection in Houston, now is the perfect time to buy. 

 

Kelley Donahoe (NMLS# 593810) is a Private Bank Mortgage Lender for Amegy Mortgage NMLS# 174734, an  Equal Housing Lender and subsidiary of ZB, N.A. Member FDIC, NMLS# 467014. Donahoe specializes in purchase, refinance, and construction lending utilizing Amegy’s portfolio and specialty loan programs like the One Time Close Loan, Early Professional and Self-Employed Borrower Loans. For more information, please contact Donahoe at 4400 Post Oak Parkway, Suite 100, Houston, Texas 77027, by phone at 713.232.1228, or by email at This email address is being protected from spambots. You need JavaScript enabled to view it.. Loans subject to credit approval; terms and conditions apply.

The information presented here is for general informational purposes only and does not constitute tax, legal, investment or business advice.

 

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