Huntsville Alabama Houses Blog

Property Addresses To Remain Private

It's a question I'm often asked: "Why can't I find addresses online?" It's been an issue with no clear answer, with pros and cons on both sides of the equation. Should property addresses be made available on public websites including valleymls.com?

One side states that making addresses public allows buyers to obtain the address, drive by the property, and call the listing agent on the yard sign and sign a contract. This, according to supporters, is unfair to the agent who provided the information via their own web page. It also brings more business to those that list properties, leaving the rest of the agents to scramble for listings or buyers. Some pundits even state this would create a "commission cutting war". Others state providing the address publicly allows crooks to obtain address information and break into the home. Personally, I think this is the main, good reason for not doing so.

The other side states making addresses public allows the buyers to obtain the address, drive by the property, and make a decision whether or not to call an agent to view it. Supporters of this side state buyers demand information and we are living in the 2000's, not the 1970's. "Get with the program" is their theme. They also maintain that Huntsville is one of the only two boards in the state who don't publish property addresses. (I can't confirm or deny this as I haven't researched it.) 

Personally, my biggest problem with not providing addresses is the amount of time I spend giving address information to a customer calling or emailing me from a web page. Not only do I have to provide them the address, I usually have to talk them through how to get there, often keeping me on the phone 20 or 30 minutes while they look for the property. And, I rarely, if ever, procure a customer just because I provided address info or directions.

Recently, the Huntsville Area Association of Realtors^® allowed its members to vote on the issue. The results: Roughly 60% of the members voted "NO".

So, for the time being, property addresses will not be public and you will still need to call an agent to obtain the information. Don't fret, though. Simply write down the MLS number and call your favorite agent. Oh, and I'm mobile. I can obtain address information for you even if I'm out of the office and have no access to a computer. Simply give me a call!

Todd

Well, it's law now. The new housing bill goes into effect October 1, and additional details are finally getting out. Isn't it funny how many bills in Congress get explained AFTER it has passed?

There's some good and some bad news, though.

The good news - From what I gather, the law will allow lenders to help homeowner's whose property values have plummeted to refinance at 90% of current appraised value.

The bad news - Borrowers who take advantage of the refinance will be required to share 50% of ALL future appreciation with FHA. Yikes! Over 30 years, that's quite a chunk of change. Then, the government will get more in capital gains if the capital gains tax on personal residences is reinstated, which is beginning to look like a possibility.

The good news - The $7500 tax credit is included.

The bad news - That tax credit is only available through June 2009 and is REPAYABLE. ie, it's a loan, not a credit.

The good news - FHA down payment assistance is still allowed from family members and nonprofits, contrary to the information I gathered and posted in my blog a few days ago.

The bad news - Minimum down payment is now 3.5% of contract price. That down payment assistance cannot involve anyone in the transaction including the seller. Bye-bye seller assisted down payment programs. You are going to have to hit up your mom, dad, brother, church, or even your employer for cash.

Lots more changes, including good and bad, are part of the new law. However, most of them don't significantly effect the individual. Most of the other new laws set up regulatory bodies and rules or provide money to states and local communities to purchase homes. The effects of these are more global and the effects shouldn't be noticable...at first.

Todd

If you've tuned into the news the last few days, you've probably heard about the new housing bill (H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act of 2008) introduced into Congress. The House of Representatives has already passed it. It goes to the Senate and the President next, where it is also expected to pass. The bill is apparently designed to help kick start the housing market by enticing buyers while protecting lenders. However, does the bill protect lenders more than it helps buyers?

Without going into all the details of every single thing the bill will do, let me explain the major points of the bill, which mostly regard FHA loans.

First time home buyers will get a $7500 tax credit. This, according to supporters of the bill, will get buyers off the fence and start buying.

Huh? While I can't speak for other markets, I can say in the Huntsville area, there is no shortage of first time home buyers who are looking for homes. In fact, nearly all my current buyers are first time home buyers. The buyers who are on the fence and sitting on top of their wallets are the ones who already own homes and are taking a "wait and see" approach. They are the buyers who more easily qualify for a loan. Shouldnt' these be the people who should be getting a tax credit?

FHA loan limits will be increased, meaning FHA will loan on homes with higher prices. This one has been a long time coming, although it's a little late now. The catch? The minimum down payment will now be 3.5% and down payment assistance is not allowed....at all...not from the seller and not even from a third party of any kind.

Ok, let's get this straight. We offer a $7500 tax credit only for first time home buyers who rarely if ever have enough cash for a 3.5% down payment ,and who most frequently use down payment assistance programs since they have no existing equity, but we tell them they can't get down payment assistance.

I'm certainly hoping someone can open my eyes on this one and educate me on how this is supposed to help the buyer. To me, this looks like it protects the lenders and hurts potential buyers. The lenders made bad choices over the last few years. Does this bill reward them for that behavior? Oh, and did I mention the $7500 tax credit is temporary?

Every decent sales person knows qualified buyers are those that are willing to pay and have the ability to pay. I see plenty of first time home seekers with the willingness to pay. But, they don't have the ability to pay because of the overcompensated restrictions by lenders. Now, it looks like the government is following in their footsteps. Sometimes it seems to me we are returning to the days where only nobles could own property while everyone else leased from the nobles.

While I typically keep my rants out of my blog, I couldn't control myself on this one. However, when I see politicians patting themselves on the back over a bill they passed that supposedly helps the American people, which obviously does not, I cannot help speaking out.

I certainly hope I'm wrong, but this bill will do more harm to an already ailing industry. Buyers need incentives to buy homes, not more red tape and restrictions preventing them from living an important part of the American dream: owning your own home.

I will end on a positive note, though. One portion of the bill "encourages" states to create a licensing system for anyone who originates a residential loan. Currently, anyone involved in a real estate transaction is licensed except for loan originators. It's about time they were required to be licensed too. Although the bill only "encourages" states to do so, it is at least a step in the right direction.

Todd

Huntsville Area Housing Market Statistics Page Added

By far, the most common question I'm asked is, "How is the Huntsville market doing?" In response to that question, I've added a new page to my site. I will update it from time to time. The page includes a summary based on reports and charts generated from the North Alabama MLS system. The charts and reports are also included. The page is:

http://www.HuntsvilleAlabamaHouses.com/huntsvillestats