Postive Signs Ahead in the Real Estate Market
May 5th, 2008 by Sean Whaling
I’ve started hearing better news from customers lately and thought I would share it with everyone. We have a unique perspective on the housing market at eCommission because we talk to agents from all over the United States everyday.
For what seems like an eternity, most of the stories we heard were negative about banks not honoring commitments, agents struggling financially and unfortunately many deciding to get out of real estate. Well, the news is starting to get better! We have more agents telling us they’re seeing buyer activity in the worst hit markets like California, Arizona and Florida. It would appear investors are starting to inch their way back into some markets as price reductions become a regular part of the listing cycle.
People always assume that eCommission must flourish in a down market. Yes, demand for commission advances increases as agents are stretched further between closings, but the deals themselves are a little harder to approve than they used to be. The issues mainly relate to financing and dealing with bank owned properties. Right now roughly 40% of applications for eCommission involve some type of foreclosure situation.
As many of you know, getting banks to follow a specific timeline and actually agree to terms in writing can be very difficult. Unfortunately, we cannot approve a request for a commission advance on an REO without written confirmation that the bank agrees to the deal. On regular resale transactions, especially those with cash offers and no contingencies, we are able to approve advances in the customary timeframe of a few hours from receiving the completed application.
Here’s an upbeat story from Realty Times discussing other positive trends happening in real estate right now. Real Estate Outlook
So keep the faith. I’m not suggesting it’s time to uncork the champagne just yet but things do appear to be slowly turning the page.
