Quote:
Originally Posted by SuzyH
Well, I can't think of too many things that we don't agree on, except possibly that cash back deals are illegal. You would consider a "10k seller's assist" legal, and I would too if it were recorded that way in the county records. Unfortunately it's not and it contributed to artificial inflation, and it is not legal. Unfortunately that 10k seller's assist very often went into buying items unrelated to the purchased house, and was not used to improve the property.
Maybe the other thing we don't agree on is that there will be a huge drop in the enrollment at the NAR (currently about 1MM, down from 1.2MM a year ago). Also we may differ in that it is apparent that the acceleration in local deflation market is growing (i.e. the pace of price drops is quickening), even more than the 11% predicted here. 11% on an 800k house in a year is an 88k drop (and that doesn't include taxes and maintenance), and a comparable house can be rented for a lot less than that. |
We've been through this. I think you just get confused.
Cash Back at closing is ILLEGAL.
Seller's assist IS LEGAL. The lender determines how much the sellers may credit at closing as a percentage of the sale price. It is also limited by the appraisal of the property as the lender will not write a mortgage for more than the appraised value of the property. Please don't re-visit your claims of a vast conspiracy among realtors, lenders and appraisers....that's not what this is about.
For example, let's assume the asking price is $400,000 for a home. Let's assume the property legitimately appraises for $400,000. The buyers can negotiate with the sellers and agree to a sale price of $400,000 with a seller assist of $12,000 (assuming the lender allows a 3% sellers assist and that amount does not exceed the buyer's closing costs). That is perfectly legal and happens every day. You can hate it. You can whine about it on the internet. You can call it immoral, unethical, despicable, whatever adjective you like. But you cannot call it illegal. Furthermore, sellers assist is solely a credit towards closing costs. It cannot be used to buy "items unrelated to the purchased house" and it is not a credit for repairs/improvements .... though sellers can offer credits at closing for repairs as well and those aren't recorded by the county either! A seller's assist is only a credit on the settlement sheet.
If you would like to change the way these transactions are recorded, don't preach to Realtors or any other party to the transaction. None of those people have any say in the matter. Talk to your local government about what they record in the public records. If you would like to outlaw seller assist please contact your lawmakers. In the meantime, stop barking up the wrong tree.
Yes, I'm sure NAR membership will drop. When the market is hot and money is easier, membership increases. When the market is down and money is harder to come by, membership decreases. Nothing shocking there.