Single-Family Rental Giant Hit With Class-Action Suit

Single-Family Rental Giant Hit With Class-Action Suit

Invitation Homes is being accused of excessive and illegal late fees charged to tenants who fall behind on their rent, according to a class-action lawsuit. In the suit, plaintiffs claim the single-family rental giant charges a late fee of $95 even when rent is only an hour late. The lawsuit also alleges that Invitation Homes adds extra late fees of $95 or more on any accrued balance of late fees, even if tenants pay their most recent rent on time.

The lawsuit was filed in California, but claims Invitation Home’s late fees violate the law in all 12 of the states in which the company operates. Invitation Homes owns 82,570 single-family homes across the country and is the largest single-family rental company in the nation.

The lawsuit alleges: “The penalty is illegal, and thus, void, because it is excessive and bears no relation to any actual damages incurred by [Invitation Homes] when rent or other fees are paid late. Some people have been evicted purely as a result of this late rent penalty, and in particular this penalty stacking practice.”

Invitation Homes has yet to comment publicly on the pending lawsuit.

Source: “Invitation Homes Hit With Class-Action Lawsuit Over Late Fees,” Curbed.com (May 29, 2018)

Are There New Homes on Sale?

Are There New Homes on Sale?

Home buyers who seek something brand new may be able to score a deal. Although real estate prices have been on the rise generally, there are exceptions. The cost of buying new-construction has fallen to its lowest point in the last 12 months, realtor.com® reports.

The median price of a new home fell nearly 6.9 percent from March to April, reaching $312,400, the Commerce Department reported this week. The price is up just 0.4 percent from a year ago.

“This could be a sign that builders are trying to build at lower price points,” says Danielle Hale, realtor.com®’s chief economist. That would be welcome news to first-time buyers and home shoppers who are on a tight budget. “The largest share of home buyers and home shoppers in the market are looking to buy entry-level homes,” she adds.

Five percent of new-home sales were for properties priced under $150,000 in April, which is the largest share since August 2016, Hale notes.

The prices may be coming down a bit, but the cost of a new home is still more than purchasing an existing home. New homes remain about 24.8 percent more expensive than the $250,400 median cost of an existing home, according to the National Association of REALTORS®.

Plus, buyers may be hard-pressed to find enough choices in the new-home sector.

“The absolute level of [new-home] sales remains quite low compared to current demand levels and the overall population. But you can’t sell what hasn’t been built,” said Freddie Mac’s Len Kiefer in a statement. “As long as single-family home construction remains at a low level, so too will new home sales.”

Source: “Get One While You Can: New-Home Prices Have Fallen to a 12-Month Low,” realtor.com® (May 23, 2018)

Outside Remodeling Projects Pay Off

Outside Remodeling Projects Pay Off

Tackling a project to spruce up a property’s outside may be a wise investment for both residential and commercial property owners, according to the National Association of REALTORS®’ and National Association of Landscape Professionals’ 2018 Remodeling Report: Outdoor Features. The outdoors doesn’t require a major overhaul to see a strong return either financially or in homeowner enjoyment.

The outdoor project that produces the most substantial financial payout at resale is standard lawn care service. That alone recovers 267 percent of the project cost at resale, according to the report, which analyzed 13 outdoor residential projects and 10 commercial projects, based on REALTORS® responses of value. Landscape maintenance and tree care, both of which recovered 100 percent of the cost at resale, are also among the highest payback outdoor projects. Installing an irrigation system recouped 86 percent of the cost, according to the report.

“REALTORS® understand that a home’s first impression is its curb appeal, so when it comes time to sell, a well-manicured yard can be just as important as any indoor remodel,” says NAR President Elizabeth Mendenhall. “Even homeowners with no immediate plans to sell can gain more enjoyment and satisfaction from their home by taking on a project to revive their outdoor spaces.”

As for which outdoor projects can bring the most enjoyment to homeowners, a fire feature and irrigation system tied for first place in the survey. Eighty-three percent of homeowners who installed a fire feature said they have a greater desire to be home since completing the project, and 69 percent of homeowners who installed an irrigation system said they feel a major sense of accomplishment when they think of the project. Other appealing projects included: a new wood deck, a water feature, statement landscaping, and an overall landscaping upgrade.

“This report validates that landscaping is an investment worth making, offering the immediate benefits of increased enjoyment of your property, as well as desirable long-term value that holds if or when it comes time to sell,” says Missy Henriksen, vice president of public affairs at NALP. “From lawn and tree care to installing a new fire or water feature or landscape lighting, there’s no shortage of opportunities to enhance your landscape and to reap the benefits these upgrades provide.”

Further, 43 percent of REALTORS® surveyed said they suggested that a commercial client improve the curb appeal of a property before listing it for sale. The most frequently recommended projects were for standard lawn care, completing a landscape management service, and an overall landscape upgrade.

“It is not just homeowners that need to think about curb appeal when it comes time to sell; a beautiful exterior is just as important for commercial property owners,” says Mendenhall. “In fact, 81 percent of REALTORS® said they believe curb appeal is important in attracting a buyer.”

Source: National Association of REALTORS®

The Best Housing Markets for Home Flippers

The Best Housing Markets for Home Flippers

House flipping activity surged to an 11-year high this year, with more than 207,000 homes flipped, according to ATTOM Data Solutions, a real estate data firm. But the key is knowing where to be and when. “The sweet spot for successful home flipping is finding the neighborhoods just emerging as the next hot neighborhoods in a city,” says Daren Blomquist, a senior vice president at ATTOM Data Solutions. The firm says the average profit for a housing flip in 2017 was $68,100.

Realtor.com® ranked the 200 largest metros according to the share of all home sales categorized as a flip (defined as any type of home that is bought and resold within a three- to 12-month period). Researchers limited their rankings to two metros per state for geographic diversity and only included markets where the average profit was at least $30,000.

The following are the best housing markets for home flippers, according to realtor.com®:

1. Nashville, Tenn.

• Ratio of flips to all home sales: 4.1%
• Average flip profit: $87,200

2. Fresno, Calif.

• Ratio of flips to all home sales: 3.5%
• Average flip profit: $53,200

3. Palm Bay, Fla.

• Ratio of flips to all home sales: 3.3%
• Average flip profit: $71,500

4. North Port, Fla.

• Ratio of flips to all home sales: 3.3%
• Average flip profit: $85,300

5. Baton Rouge, La.

• Ratio of flips to all home sales: 3.2%
• Average flip profit: $70,000

6. Chattanooga, Tenn.

• Ratio of flips to all home sales: 3.1%
• Average flip profit: $65,800

7. Los Angeles

• Ratio of flips to all home sales: 3%
• Average flip profit: $169,400

8. Lubbock, Texas

• Ratio of flips to all home sales: 2.7%
• Average flip profit: $46,000

Source: “Flip It Good! Top 10 Home-Flipping Hotbeds Where Profits Are Through the Roof,” realtor.com® (May 23, 2018)

Time to move up to a larger home?

It can be possible with a VA jumbo loan.

Is it time you and your family had more space but you’re concerned a larger home may be out of reach?  Good news.  If you have equity in your current house, you may be able to afford a larger home you need, with a jumbo VA loan through freedom mortgage!

Look to the #1 VA lender in the USA for your dream home.

It can be possible with a VA jumbo loan.

We are proud to server the home financing needs of veterans by providing an array of mortgage options and exceptional service throughout the mortgage process.  We put our expertise to work for you to ensure that you have the possible solutions to meet your needs.

VA jumbo loan program guidelines:

• You must have a minimum 550 credit score
• Only the primary residences are eligible
• 1 – 4 units (one must be occupied by the veteran)
• Townhomes are ok
• Warrantable condos are ok
• Planned unit development (PUD/builder communities are ok)

Please note that a jumbo VA loan is available only to VA eligible borrowers who quality with income and credit requirements as well as the VA county guaranty limits

Contact me today for a financing solution that is just the right fit for your next home!

Pros and Cons of Bypassing an Appraisal

Pros and Cons of Bypassing an Appraisal

Since mortgage giants Fannie Mae and Freddie Mac announced last year special rules for when a property does not need a traditional in-person appraisal, only about 5 percent of Fannie’s 1.2 million home mortgages—or 60,000—have qualified, The Washington Post reports. Freddie estimates that, eventually, no-appraisal mortgages will account for up to 15 percent of its new loans.

In some transactions, Fannie and Freddie are relying on proprietary analytics and property data to value homes rather than sending an appraiser to inspect it. But not every buyer is eligible to bypass the in-person appraisal. Generally, banks collect a down payment of at least 20 percent, and then Fannie and Freddie identify which properties are eligible.

“If [Fannie and Freddie] have a good basic inventory of information about the house, its value, and what it sold for, you’re more apt to get a property inspection waiver,” Don Frommeyer, a mortgage originator at Marine Bank in Indianapolis, told realtor.com®. However, “the longer it hasn’t been appraised, the more apt you are not going to get a property inspection waiver.”

Bypassing the in-person appraisal could save home buyers money; the average cost of a traditional in-person appraisal is $500, according to Fannie. But real estate experts warn that even if they are eligible, home buyers may not want to bypass the appraisal. “It can save buyers money, but it can potentially lead to them overpaying if they don’t have that second opinion in the appraisal,” says Danielle Hale, realtor.com®’s chief economist. For example, if the appraisal comes in lower than a buyer’s offer, the buyer may be able to renegotiate. “But many markets are so hot right now that buyers may not be able to negotiate the price anyway, even if an appraisal came back too low.”

For borrowers who are refinancing, they may find bypassing an appraisal worth it, Hale says. Some lenders may like the option, too. “We think it’s great for borrowers,” Mat Ishbia, president and CEO of United Wholesale Mortgage, told the Post. It “saves time and money” and leads to shorter timelines for locking in interest rates and closing transactions. More than 10 percent of the lender’s home loans are now appraisal-free, Ishbia says.

But not all are convinced that no-appraisal loans are a good move for home buyers. Fannie and Freddie’s computer programs “cannot smell 20 cats living at the property,” Ryan Lundquist, an appraiser based in Sacramento, Calif., told the Post. “They won’t be able to identify problems that could potentially lower the value of the home.”

Source: “In-Person Home Appraisals Won’t Be Required for Some Loans: Should You Get One Anyway?” realtor.com® (May 18, 2018) and “Fannie and Freddie Approve Thousands of Loans With No Formal Appraisals,” The Washington Post (May 2, 2018)