Those Who Cannot Remember the Past are Condemned to Repeat It

WRITTEN BY Those Who Cannot Remember the Past are Condemned to Repeat It

On August 26, 1996, the NAR Board of Directors was called to Chicago for a Special Meeting to make important decisions regarding the “fate or future” of REALTOR.com. And also to discuss the collapse of RIN into a much smaller organization with a different focus.

A Big Spend

NAR, through RIN, had spent something north of 13 Million Dollars at that point and the competition in technology was fierce. NAR Leadership feared NAR could not sustain future losses from RIN. RIN (the birthplace of REALTOR.com) was having financial difficulties and more. And the Directors were called to Chicago to sort it out. This was an emergency.

Included here is Dr. Almond (Bud) Smith, then CEO of NAR. Bud summarizes for the Directors in a pre-event package, mailed to each Director to allow them to prepare for their upcoming meeting. Decisions made at that meeting shaped the future of real estate on the World Wide Web. Check out his announcement: Bud Smith Special Board Meeting.

The result of that Special Meeting was an “Operating Agreement” allowing the entity currently known as MOVE to operate the Realtor.com domain, under certain conditions covered by the Operating Agreement. NAR recovered many times more than its original investment in RIN when REALTOR.com (HOMS) went public.

To better understand the evolution of how the Industry got to where it is today with Internet Listing Display, The most in-depth history of the evolution of REALTOR.com will be published here.

NAR Directors, the future of REALTOR.com, the Official website of the National Association of Realtors, is in some ways, in your hands.

Those who cannot remember the past are condemned to repeat it.”
-George Santayana

Construction and Permanent Loans Explained

WRITTEN BY Construction and Permanent Loans Explained

There are different types of home loans available that fall into various categories. There are fixed rate loans and adjustable rate loans. Loans for owner occupied properties and loans for rentals. There are loans for a purchase and loans for a refinance. The list is really quite extensive. Two others are construction and permanent loans. Let’s take a closer look at these two and see how they’re related.

A construction loan is one where funds are issued to build a new home. Some construction loans provide financing to build on someone’s lot they already own while some construction loans provide funds for both the lot and the construction. Construction includes funds for both soft and hard costs. Soft costs are those for things such as permits, zoning and legal compliance while hard costs are for materials and labor, for example.

When someone builds a new home, they’ll work with an architect to design the home. Sometimes they can also pick from a builder’s list of plans and choose a set of blueprints previously completed. The next step is to get a bid from a contractor who will break down the cost to build the home and how long it will take to complete the project. Next, the plans are delivered to the bank who will review the project and if it complies with the bank’s construction guidelines, the loan is approved.

But the construction loan isn’t issued in one lump sum. Instead, funds are issued in stages of completion as the home is being built. The first issuance of funds might be to clear and prepare the lot. Once the bank is alerted the lot has been prepared, an inspector will arrive at the property and confirm its completion. Then, the next stage is funded and so on until the home is finally finished. The bank will order out one last inspection to confirm the property is ready for occupancy. Now, the bank wants its money back.

Construction loans are short term in nature, only long enough to finish the project. This is where a permanent loan comes into play. While the home is being built, the buyers also obtain approval from a mortgage company that will issue a traditional mortgage, paying off the construction loan completely. There are a few programs out there that combine both the construction and permanent financing with just one loan, referred to as a “one time close” loan or something similar.

You’ll want to talk to your mortgage loan officer about permanent financing and the construction process in general and get your various financing options. But with many, getting a construction loan first and then replacing it with a permanent loan is the less expensive path.

melting-watch

MARKET WATCH

Single Family Home Activity in the Antelope Valley

In the last 24 hours
09/21/18

New Listings …  38
Sold …  24
Pending …  31
Expd/Wthd/Cancld …  11
Price Increases …  01
Price Reductions …  31
Number of listings* …  1606
Average Days on Market …  76
Short sale/pay listings …  08
Equity listings …  1486
Bank owned listings …  16
HUD, Corp, Probate and Auction listings …  50
Days of inventory (at the average rate**) …  39.64
Days of inventory (at yesterdays rate**) …  45.89
Actual Number of days of inventory***  …  ∞

View the last 8+ years of data HERE!

 

* Count includes all ACTIVE and CONTINGENT MLS listings
** Assuming no future growth or reduction
*** At yesterdays depletion rate (∞ indicates negative depletion,
inventory would not be depleted at this sales rate)
ALL DATA WAS DERIVED FROM THE “GREATER ANTELOPE VALLEY
ASSOCIATION OF REALTORS®” AND IS DEEMED RELIABLE.
THE CALCULATIONS OF THAT DATA IS THE
RESPONSIBILITY OF DON GOCKEL, REALTOR®