REALTORS® Promise to Send Help to Texas

REALTORS® Promise to Send Help to Texas

As the rains slowly subside in Texas and the full scale of Hurricane Harvey’s destruction comes into focus, the National Association of REALTORS® is calling on members nationwide to donate funds to the REALTOR® Relief Foundation to support storm victims. The RRF, whose goal is to help families who have endured catastrophic loss, will use the money for mortgage and rental assistance. Since its launch in 2001, the RRF has raised more than $25 million to provide housing-related aid to victims of disasters around the country, such as wildfires, floods, tornadoes, and hurricanes.

Meteorologists have warned that the magnitude of property damage from Harvey’s wrath could surpass that of Hurricane Katrina in 2005, though Harvey did not cause a similar death toll. Harvey came ashore as a Category 4 hurricane last Friday and hovered for days as a tropical storm, dumping up to 50 inches of rain in parts of Texas. Houston is one of the hardest-hit areas, submerged in more than two feet of water.

“This may require our REALTOR® family’s largest effort since Hurricane Katrina—or even 9/11,” RRF President Martin Edwards wrote in an internal memo to NAR directors and staff. “Hopefully, REALTORS® across America will heed the call to donate without precedent, as the on-the-ground membership in Texas will be stretched beyond belief.”

NAR President William E. Brown said in a statement that the storm provides an opportunity for all 1.2 million REALTORS® to focus their energy on supporting each other and their colleagues in Texas, including donating to RRF. “There will be many families in the greater Houston area who need our help,” Brown said. “It will take time to know the full impact of Hurricane Harvey, but we know the devastation will be widespread and that our support will be necessary.”

NAR also has released guidance for real estate professionals whose transactions were interrupted by the storm. If a natural disaster hamstrings your client’s deal, here are some steps to take:

• Communicate clearly. Advise your clients as soon as possible about what is known and what is not known.
• Review the purchase agreement. Most have provisions addressing damages that occur to the property prior to closing and whether such damage occurs “in the ordinary course” or due to dramatic events. Contracts also ordinarily contain provisions addressing what happens when one or both parties cannot perform their duties for reasons beyond their control. Typically the provision holds that such nonperformance is not a default.
• Check your state’s laws. Apart from contractual provisions regarding loss or damage to property, state law may dictate which party—seller or buyer—bears the risk of loss during the pendency of a transaction.
• Advise your client to file a homeowners insurance claim. At the very least, your client should notify the insurance carrier of the claim as soon as possible. Tell your client to document all damages in writing, photos, and video, and to keep records of everything he or she spends on repairs and replacements.
• Talk to lenders. Buyers should check with their lenders to determine how they will handle reinspections or reappraisals that may be required. Make sure your client asks lenders about additional costs or closing time frames caused by the disaster.

—Source REALTOR® Magazine

Fannie Loosens ARM Down Payment Rules

Fannie Loosens ARM Down Payment Rules

Fannie Mae is changing the requirement that borrowers pay a higher down payment to qualify for an adjustable-rate mortgage, announcing that it is bringing this type of financing more in line with that of fixed-rate mortgages.

Now, borrowers can make as little as a 5 percent down payment on a one-unit primary property using an ARM. Also among the changes is that borrowers need less equity in order to refinance into an ARM; they now need just 5 percent of equity to refinance. For purchasing a two-unit property, borrowers will need a 15 percent down payment for an ARM, or a 25 percent down payment or equity stake for a property with three or four units.

Investors could be eligible for an ARM on a one-unit property with a 15 percent down payment, under Fannie Mae’s new guidelines.

An ARM is fixed for a set part of the mortgage term—often 5 or 7 years—and then adjusts depending on the current market rate. There are caps on how much it can adjust in one year. ARMs tend to have lower rates than fixed rates, making them an attractive option to borrowers who need to lower their initial costs or plan to own for a short time.

Source: “Fannie Mae Lowers Down Payment Requirements for ARMs,” OriginatorTimes.com (Aug. 26, 2017)

20 Markets Dominating in August

20 Markets Dominating in August

Half of the 20 hottest housing markets in August were located in California. Vallejo, Calif., held on to its top spot in realtor.com®’s “hot list” this month. Realtor.com® ranks the top 20 medium-to-large metro markets where homes are selling the fastest and where buyers are searching the most on realtor.com®.

Detroit also made a comeback on realtor.com®’s list this month, entering the top five for the first time since October 2013. New metros added to the list for August include Grand Rapids, Mich.; Oxnard, Calif.; and Nashville, Tenn.

20 hottest housing markets in August are:

1. Vallejo, Calif.
2. San Jose, Calif.
3. San Francisco
4. Detroit
5. Stockton, Calif.
6. Kennewick, Wash.
7. Fort Wayne, Ind.
8. Columbus, Ohio
9. San Diego
10. Sacramento, Calif.
11. Dallas
12. Modesto, Calif.
13. Waco, Texas
14. Santa Rosa, Calif.
15. Fresno, Calif.
16. Grand Rapids, Mich.
17. Colorado Springs, Colo.
18. Denver
19. Oxnard, Calif.
20. Nashville, Tenn.

Source: “America’s 20 Hottest Real Estate Markets for August 2017,” realtor.com® (Aug. 24, 2017)

What Home Thieves Target Most

What Home Thieves Target Most

Renters are more likely to experience a burglary than homeowners, according to data from the Bureau of Justice Statistics. Apartment buildings with two to four units are the most at risk of theft.

“This is probably because plenty of people come and go from apartment complexes daily, while homes only have a few family members who enter or leave,” according to ADT, a security firm, which recently analyzed data on burglary risks across the country.

There were nearly 1.6 million burglaries in 2015, amounting to about one every 20 seconds, according to the FBI. About 72 percent were residential.

The cities with the most burglaries, according to ADT’s analysis, are: Lake Charles, La.; Vallejo, Calif.; Pueblo, Colo.; Youngstown, Ohio; Springfield, Ohio; Dayton, Ohio; Canton, Ohio; Santa Fe, N.M.; Memphis, Tenn.; and Albany, Ga.

On the other hand, ADT reports that the cities with the lowest amounts of crime tend to share similar social and economic characteristics, such as low unemployment rates, high education levels, and small populations. The cities with the fewest burglaries are: Palatine, Ill.; Orland Park, Ill.; Peabody, Mass.; Fishers, Ind.; Leesburg, Va.; Ramapo Town, N.Y.; Novi, Mich.; Carmel, Ind.; Rochester Hills, Mich.; and Johns Creek, Ga.

Of 400 convicted burglars who shared their reasons for committing a theft, their top reasons for break-ins were: drugs (51%); money (37.1%); foolishness (5.4%); thrills (4.4%); or revenge (2.2%). The ADT survey also showed the top items these convicted burglars were hoping to find in a break-in were: cash (90%); jewelry (77.8%); illegal drugs (65.9%); electronics (63.5%); prescription drugs (50.5%); and clothing or shoes (18.4%).

Source: “Burglary Odds Across America,” ADT.com (August 2017)

Kids Have Big Say in Real Estate

Kids Have Big Say in Real Estate

Buyers with children put more weight on the neighborhood, local schools, and size of homes when shopping for the right property, according to the 2017 Moving With Kids report, produced by the National Association of REALTORS®.

The neighborhood, in particular, has a big influence on home buyers with children under the age of 18. Forty-nine percent of buyers who have children consider the neighborhood based on the quality of the school district, and 43 percent choose a neighborhood by the convenience to schools, according to the report.

Buyers with children also tended to purchase a larger home, at 2,100 square feet with four bedrooms and two full bathrooms. Buyers with no children tend to prefer a home with three bedrooms and two bathrooms at an average of 1,800 square feet.

Many buyers with children also say child care expenses can delay their home purchase. Twenty-two percent of buyers surveyed said they had to delay their home purchase due to the costs of child care. Also, they reported having to compromise on the price, style, and size of the home they purchased, according to the NAR report.

Sellers with kids also have unique needs. One notable need is that they usually have to sell their homes faster. Twenty-six percent of owners with children under the age of 18 sold their home urgently compared to 14 percent of owners with no children at home. The main reasons for selling a home for sellers with children were that the home was too small or they faced a job relocation or a change in their family situation.

Source: “2017 Moving With Kids,” National Association of REALTORS® (Aug. 21, 2017)