Solar Sucks in Real Estate

I watched a show today on this very topic and I wanted to get it out there to the masses because this has been a hot topic in real estate for about 2 years or so…  SOLAR IS STUPID!!! Before you get all worked up let me tell you why…   Number one they typically have you finance the investment for 20 years and statistics show that the average home owner stays in their house 13 years.   In the lovely state of California that number is actually lower and can you guess why??? Yup, divorce!  It is reality so let us just move along…

Think about this as well, the solar panels today are going to be completely outdated in 20 years and way less efficient than what will be out in the year 2035 and just as an example think of what satellite tv dishes used to look like way back when vs. what they look like today.

You also are going to have to find someone that wants solar when you sell your house (you will don’t even try to deny it) and therefore you have just shrunk your pool of buyers OH AND BY THE WAY it is hard to finance a home with them on there (and yes lender that reads this I know it can be done I am just saying it is harder so chill)…  Oh and if you want to refinance your house down the road once you install solar, the new “lease payment” will now be counted against you in your qualifying ratios and they may hurt you in qualifying.

Before you jump on this bandwagon and invest in such a long term commitment which by the way does not start paying for itself for about… Oh 20 years, sit back and think about how “green” this option is and in this case how much green it is really costing you.  If you are thinking about solar, I STRONGLY encourage you to watch this video just to get the wheels turning…

http://thenationalrealestatepost.com/solar-panels-are-killing-real-estate-deals/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TheNationalRealEstatePost+%28The+National+Real+Estate+Post%29

The Real Estate Market 2015 for Buyers, Lenders, and Real Estate Agents

Two months into the year it is apparent that the government is once again involved in our industry trying to make things more “transparent” for the consumer.  I am 150% on board for this but the problem is that every time something new is implemented it actually makes the process a little more cluttered, a little more confusing, a little more tedious, and therefore a little slower of a process.

Now more than ever it is imperative that real estate agents (yes real estate agents) and loan officers set the proper expectations for the clients,with the complexity of the process behind the scenes on the loan side there is less and less time to make up time lost for little, insignificant errors made in the beginning because everyone was “rushed”.  I don’t care what any lender out there is saying, the overall industry standard for an escrow period will slow down.  Any lender that is not talking about the “compliance” issues, “respa” issues, etc… is just choosing to not talk about it, instead of sitting down with their realtors and clients and addressing the inevitable changes.

Realtors and lenders that address the changes, accept them, and figure out how to tweak their approach, their process, and their service will create longevity by still providing a great experience for the buyer even with a tad bit longer of an escrow period.  Buyers just want communication and service…  20 day escrow, 30 day escrow, typically it does not matter as long as they know what to expect.

Lenders need to educate their referral partners on the qualifying process.  Realtors are typically on the front lines and are the first to speak with the clients and they need to express the importance of completing a thorough loan application and providing all of the documentation upfront.  The good realtors are not afraid to have these conversations because #1 this is their business and #2 the good realtors perform time after time and have most likely created a business based on referrals.  All to often I see garbage put into escrow just to “get the deal” and then lenders and realtors wonder why they have pissed off clients.  WE are the professionals and sometimes we unfortunately have to tell clients what they “need to hear” instead of what they “want to hear”.  There is a saying that “no builds credibility” and it is so true.  Don’t you think if we could just tell you “yes, yes, ,yes” we would?  It would be so much easier, but we have to provide a service and the proper expectations.

Buyers need to align themselves with realtors and lenders they trust because they need to listen very closely to what they tell them and not always second guess who, what , where and why something is said.  Time after time I have clients call me to ask questions in regards to mortgages because they are going to look at a house and potentially put an offer in yet “they don’t want to be qualified right now”.  Trust me, I will say what every lender should say, but is scared to say because they are scared of losing the client.  Get qualified first because in the event you love the house you have just put yourself in a fire drill.   You will be rushed to do a loan application, you will be rushed getting all of the documentation, you will be rushed signing the offer, you will be rushed going over, down payment, closing costs, loan options, etc… and then you will be frustrated by the “home buying process” when in all actuality the client does it to themselves quite often.

The real estate market is changing.  The loan process is definitely changing.  That is fact.  With the changes that we will see rolled out for what will seem like the foreseeable future, the home buying process does not have to become more stressful.  Pick a creditable realtor that has a reputation for being a leader in their industry and align yourself with a lender that you trust because the real estate process is somewhat like an airplane flight.  In the beginning NO ONE can guarantee you that you will not encounter turbulence, you just need to know that you have a good pilot and co-pilot (lender/realtor) that will do their best to avoid the rough patches, and at the end WILL LAND YOUR PLANE.

Rates are still great, home prices are still affordable… It is a great time to buy, sell or refinance just choose your team wisely.  Happy real estate hunting in 2015!

If you have questions feel free to email me at nchabolla@wccloans.com