Real Estate Industry Changes in Northern Nevada Real Estate
As the real estate market in Northern Nevada changes so does the industry. The industry extends beyond the real estate agents, and all are affected when changes occur. Many things are happening now, and the industry is feeling it in different areas. It is important to be aware of such changes if you are buying or selling.
Inventory is getting low so the offer action is getting interesting. If you are successful in getting a home under offer, beware of other challenges to your closing than the competing offerors that you just bested. Things are beginning to enter a turmoil status and it is important that you are ready for the consequences.
We’ve had many underwriting obstructions recently. The reasons vary, but the similarities are that the reasoning is unreasonable. We had had one circumstance where the buyer’s bank statement, W-2, check stubs, and foreman verification all confirmed employment as they all had the same national corporation as the source of employment funds. Unbelievably, the underwriter asked for more. There was no more to give. Other underwriting delays have come from underwriters being “overworked” and behind. There are many loans in process because of the market activity and the underwriters are getting inundated. That may explain some of the nonsensical underwriting requests as they try to buy time.
Escrow companies, too, are getting burdened. Where we used to get a new HUD-1 for a short sale update in a matter of hours, some are now taking days. This is critical as it delays the short sale even longer than the extended period of time it already takes. This is from good responsive escrow officers. They are getting busy. Many industry businesses reduced their staff. It takes time to recognize a real volume change and staff accordingly. New staff, even if experienced, must be trained to the new rules, regulations, policies and procedures. The industry has changed dramatically over the past four years.
Agents are getting busy. If you’ve found your property send your agent the information to make an offer. Your agent can send you an offer electronically, typically DocuSign in our area, to expedite things. Anxious to get on the market – they can send your listing via DocuSign as well. It is important to get your offer in and compete rather than expect an Agent to chase you. Help your agent help you in these accelerating times.
Our Advice: The market is changing, folks. Interest rates have gone up a bit, but they are still exceptional. Home prices are low, but you can count on them rising soon. There are creaks and groans in assorted components of the real estate industry as things being to churn again. Allow some time for unexpected delays. Recently we’ve seen many simple escrows delayed for unexpected and unnecessary reasons. It is one of those markets where you must expect the unexpected and plan for such contingencies. Give yourself some time and have understanding if the loan is hung up for inexplicable reasons. It isn’t the Buyer’s fault if the loan has unexpected hiccups, and it isn’t the Seller’s fault if title quirks surprise the parties. Everyone is being cautious and caution generates delays.
Be sure you don’t get “timed out” of your transaction if there are complications. Your agent should build in appropriate checks and balances that will keep you in the deal if you want to stay. Be alert to protect your interests. When it comes to choosing professionals to assist you with your real estate needs … Experience is Priceless! Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472.
When it comes to choosing professionals to assist you with your real estate needs ... Experience is Priceless! Lisa Wetzel and Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472 email@example.com, www.carsonvalleyland.com
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