Waivers, huh?

[Dublin ohio]

Cash sales are sometimes discarded as comps if the price is too high or too low wrt the prevailing trend.

So you have never seen a financed sale that made you say wtf?

 

[gregb]

So you have never seen a financed sale that made you say wtf?

As in 0 down, 6% closing cost concession VA financed sale?

 

[George Hatch]

You never answer direct questions and instead throw out unrelated theoretical questions.

Cash sales are sometimes discarded as comps if the price is too high or too low wrt the prevailing trend. Idk why you keep bringing cash sales into the discussion. The buyer is 100% on the hook for them; there are no taxpayer-backed or investors relying on an appraisal or waiver - though some cash buyers actually finance a home , the Contact has no financing contingency, but agents call it a cash offer. I have no idea why you keep dragging them in but its your thread so I guess you can-

Entirely related and directly responsive to the questions you raise - that the parallel completely goes over your head doesn't speak well to the reasoning you're using here. I brought those in because you have routinely speculated that waivers will lead to price creep. I just don't see how that's possible when the borrowers are making up the difference to the tune of 20% or 30% or 40% of the purchase price.

We routinely discard outliers from the central trend. That isn't going to change when some 70% borrower overpays for a house. How many sales did you discard back when purchases were getting financed with Adjustable Rate Mortgages where the borrowers weren't paying the fully amortized payment? None, that's how many; even though the financing terms were of significant effect on the market trends.

Same thing as always. Whatever is "typical" in the market is wherein lies the MV. Even if waivers did drive prices higher, if that's what is typical for that market segment then *from a valuation perspective* it is what it is.

 

[J Grant]

So you have never seen a financed sale that made you say wtf?

what does one thing have to do with the other?


Since Waiver /value accepted transactions are not disclosed as such , notably outside the agencies/entities can do a statistical or other study of them and their prices or default rates-

 

[J Grant]

I brought those in because you have routinely speculated that waivers will lead to price creep. I just don't see how that's possible when the borrowers are making up the difference to the tune of 20% or 30% or 40% of the purchase price.

We routinely discard outliers from the central trend. That isn't going to change when some 70% borrower overpays for a house. How many sales did you discard back when purchases were getting financed with Adjustable Rate Mortgages where the borrowers weren't paying the fully amortized payment? None, that's how many; even though the financing terms were of significant on the market trends. Whatever is "typical" in the market is wherein lies the MV. Even if waivers did drive prices higher, if that's what is typical for that market segment then *from a valuation perspective* it is what it is.

The equity a borrower has or does not have is apart from the price.

Waivers can lead to price creep ( or over-leveraged borrowing by an inflated value ) since the SC price is the property value OR a lender estimate to make the deal works the property value - as long as either fits in the AVM range and nobody outside the entities who performs it sees the AVM correct?

 

[djd09]

no price creep...price explosions

 

[J Grant]

Entirely related and directly responsive to the questions you raise - that the parallel completely goes over your head doesn't speak well to the reasoning you're using here. I brought those in because you have routinely speculated that waivers will lead to price creep. I just don't see how that's possible when the borrowers are making up the difference to the tune of 20% or 30% or 40% of the purchase price.

We routinely discard outliers from the central trend. That isn't going to change when some 70% borrower overpays for a house. How many sales did you discard back when purchases were getting financed with Adjustable Rate Mortgages where the borrowers weren't paying the fully amortized payment? None, that's how many; even though the financing terms were of significant effect on the market trends.

Same thing as always. Whatever is "typical" in the market is wherein lies the MV. Even if waivers did drive prices higher, if that's what is typical for that market segment then *from a valuation perspective* it is what it is.

Because WAIVER-based financing is NOT DISCLOSED the way other financing is, we can notably do a statistical or other analysis of it.

 

[djd09]

The equity a borrower has or does not have is apart from the price.

Waivers can lead to price creep ( or over-leveraged borrowing by an inflated value ) since the SC price is the property value OR a lender estimate to make the deal works the property value - as long as either fits in the AVM range and nobody outside the entities who performs it sees the AVM correct?

i dont see you whining about overvalued properties now...

 

[J Grant]

Entirely related and directly responsive to the questions you raise - that the parallel completely goes over your head doesn't speak well to the reasoning you're using here. I brought those in because you have routinely speculated that waivers will lead to price creep. I just don't see how that's possible when the borrowers are making up the difference to the tune of 20% or 30% or 40% of the purchase price.

We routinely discard outliers from the central trend. That isn't going to change when some 70% borrower overpays for a house. How many sales did you discard back when purchases were getting financed with Adjustable Rate Mortgages where the borrowers weren't paying the fully amortized payment? None, that's how many; even though the financing terms were of significant effect on the market trends.

Same thing as always. Whatever is "typical" in the market is wherein lies the MV. Even if waivers did drive prices higher, if that's what is typical for that market segment then *from a valuation perspective* it is what it is.

Batting for the other team as always -saying even if waivers lead to price creep, that is typical for the market -so no biggie - I am writing about markets and the effect on them, not our own valuation -- since Appraisers are doing far fewer appraisals due to waivers, then waiver based loans will have a greater and greater affect on prices -

 

[Dublin ohio]

what does one thing have to do with the other?

Cash sales are sometimes discarded as comps if the price is too high or too low wrt the prevailing trend