Congress is Taking Another Look at Dodd-Frank

Back in 2010 the US Congress passed a finance reform bill and President Obama signed it into law. It is commonly referred to as the Dodd-Frank bill after the two primary sponsors. Although the bill had some solid repairs to help shore up the financial system after the big crash, it also had some provisions that have led to a whole different line of problems for the public.

One of the biggest annoyances is the radical change to the appraisal system. For better or worse on cleaning up crooked loan officers and appraiser on the take, it has led to skyrocketing prices and greedy appraisers that gouge relentlessly at consumers. Hopefully they will fix that.

The system also created a three day waiting period after the final closing disclosures are issued. This had already been the case with refinances, but now they added purchases to the waiting period. This just adds yet another delay to the already burdensome length of time it takes to close a real estate transaction with a loan.

Maybe the gang on the hill can smooth out some of these ugly wrinkles int he Dodd Frank law.

With all these crazy regulations governing the lending industry it is wise for buyers to consult their trusted loan pro to go over the dos and don'ts of borrowing and to understand the timeline of a loan closing. So many buyers get frustrated as the process seems to linger endlessly. Sometimes they haven't done what the loan officer has requested and sometimes it is just one of many individuals involved int he process taking a bit longer on their part. Patience is the key.

Buyers should be very cautious before giving up their apartment, ordering a moving truck, or other costly moving related expenses until the loan officer has given the all clear. Some buyers find themselves homeless when they are buying a home, because they gave up their apartment trying to time perfectly the closing of their new house and the end of the rental period. Buyers are well advised to not let greed put them in a bad spot. Dodd-Frank and other heavy industry regulations will continue to create opportunities for delays in closing a real estate transaction. Patience padawan, patience.

Mount Vista Area Revisited

I took some photos of a new listing yesterday on the north side of Mount Vista. This was down near the bottom of the hill. I wasn't expecting any kind of view as the home was nearly at the bottom of the north side of Mount Vista.

This house however was well positioned for a view, the question was simply whether the local trees and other houses were to allow it. To my surprise and delight the home has a very respectable view of the mighty Mount Saint Helens.

From the front yard there is no indication of any view. From the back yard you have a peek-a-boo view of the mountain. Once you make you way upstairs however, that peek-a-boo becomes a 90% unobstructed view! Both the Master Bedroom and a large bonus room over the garage offer this excellent view.

Now I'll be clear, this is not a sweeping vista like the properties I have listed in Colorado Ridge. But this is a nice 2200 SF home in a very tidy neighborhood priced well under $400k. So any clean view of one of our big volcanoes is huge bonus in this price range.

All over Clark County we have homes with what I call "sleeper views". You walk in, not expecting any kind of vista and then BAM! there it is. I love it when that happens :)

Some New Home Builders are using Streamlined Sales

Many new home builders are now entering into a business model that is more streamlined but less flexible for the buyer. The first time I saw this approach was when Lennar came into the local market several years ago.

Now this is not a bad thing, but buyers looking for a lot of flexible customization in their new home should be aware that Builders like Lennar and Express by D.R. Horton are seeking to minimize the changes to the basic plan including very limited options on color and trim. This allows them to order in mass a small selection of trim outs, and keep costs low. Often this business model will have an A and B selection on color/tone and that is about it.

The upside to this type of approach is that the buyer will typically find a sharp price on a comparable home to a 'full service' type builder such as the tradition D.R. Horton or locals like New Traditions. It isn't a question of one being better than the other it is a concern that new home buyers realize that they have limited choices on these streamline building models.

Personally I like to have some choice in the decor and trim of a new house. It has always been one of the advantages to buying new over resale. Of course for many the idea of a new house is more about having everything brand new and not having to deal with a copious number of problems early in the experience.

It is truly a matter of preference. If you want a brand new house at price that could be 3-5% lower than a comparable property in a tradition development, then one of these newer business models could be ideal for you. If you want to have near 'Carte Blanche' on things like kitchen counter tops, carpet and flooring choices and other trim out features then sticking with a development running the classic business model may be best for you.

Whichever style suits you, make sure you understand the terms and choices before entering into a contract with a builder. Most problems that people experience could be avoided with by simply taking extra time to fully understand the offer from the builder.

As a local Realtor® I enjoy the multitude of opportunities to help my clients with a variety of different business models in various developments in and around Clark County.