People who bought houses at the top of the market are likely to take out their anger on their real estate agents in the coming months. According to Victor Insurance Managers, historical precedent shows that as housing values fall, the last batches of buyers become resentful and may lash out at their agents or other professionals involved in the process.
The firm, a major vendor of errors-and-omissions policies to agents and brokers, says that there will be more lawsuits against agents in the coming months. Minor annoyances could become major issues if tempers increase.
The firm says that agents who are sued in these market conditions face no greater liability than they would if they were sued in other markets. That doesn't mean they don't have to defend themselves in court.
Mortgage rate buy-down, upgrades, and cash to cover closing costs are commonplace in the new home market. Builders are giving cash bonuses to agents who bring buyers to their doors. Ben Caballero says that price cuts are imminent. More than 60 builders are listed on the Dallas-based brokerage's website for new homes for sale.
The incentives and bonuses are offered by builders before they lower prices. The prices are being lowered.
He holds the Guinness World Record for most annual home sale transactions through MLS by an individual sell-side real estate agent. He is the only agent to achieve $1 billion in sales in each of the last three years.
The New American Home is an homage to the latest building products and construction techniques. Every year the showpiece is rolled out at the National Association of Home Builders convention.
The model is going to make its debut at the show. Every other builder is facing the same supply chain issues that the home's builder is facing. The project was still going on for more than three months while waiting for products to arrive.
The biggest challenge has been figuring out when each product will show up so we know when to schedule labor. No one will commit to a specific date until the product is on site.
The house has a hard deadline for completion. To stay on top of the installation schedule, his team is following up with vendors weekly. The architect said that it seemed like they were more of a logistics company than a construction company.
The project is on track to be completed this month. There are five bedrooms, seven baths, a spa, a game room, a private office, and a rooftop deck in the 7,575- square-foot demonstration house.
There are some random numbers.
There were nearly 60,000 sales that fell through in October. A record 17.9% of homes were under contract.
According to Alignable, some of the small real estate firms couldn't make their rents in October. The fact that 42% is the national average among all small businesses is frightening.
Small companies are losing market share in the home building industry. According to the National Association of Home Builders, the larger companies increased their market share to 57.5% in 2011.
In a change two years in the making, the Federal Housing Administration is now allowing borrowers usingFHA-insured financing to secure flood insurance policies from private insurers The Special Flood Hazard Areas are designated by the Federal Emergency Management Agency. Flood coverage can be useful beyond those areas.
The National Flood Insurance Program or the private market can now be used to obtain flood coverage, thanks to the shift. Private policies are usually less expensive and provide better coverage than the federal program.
The new rule is a victory for consumers, for choice, and for flood coverage that will protect more borrowers and property from a natural disaster.
The risk of Uncle Sam is shifted to the private sector. If private companies don't align their policies with NFIP requirements, they will be rejected, even if they are acceptable for other federal loans.
Lew has been covering real estate for more than half a century. He is a regular contributor to many publications. Readers can reach him by email.
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