Shocking revelation!-Disclosure Laws Have Big Impact on Prices

Link to the article

http://www.realtor.org/RMODaily.nsf/pages/News2007101803?OpenDocument

I am Not going to cut and paste the entire article but the bullet point the articles brings out is that the new disclosure law's that requires sellers to disclose if the property is in a flood zone or airport noise zone, hase a big impact on prices as high as 4% in certain parts of the country!

Wow Shocking, where have you been living beneath a rock? did you do business out of there?

Standard work of a mortgage Professional is to determine monthly payment for  the borrower

That consists of

  • Principal and Interest
  • Hazard Insurance
  • Flood insurance (if required)
  • Home Owners Association fees
  • Taxes
  • Total debt

It was always a big factor, the only difference is that prior to the law the problem was on the borrowers side like the payment is too high borrower cannot afford it but now, it is another tool in negotiation up front.

 It might even turn out to be a blessing in disguise: that the reduction in price will let more borrowers qualify in In spite of the higher monthly fees due to flood insurance.

Just another way of looking at it

Sincerely

Joel Silberstein

 

3 comments • Joel Silberstein Brooklyn NY Certified Mortgage Specialis • October 19 2007 08:58AM

Comments

Flood zone I get, but airport noise seems a bit too limited. How about annoying noise in general? What about noisy highways and industrial zones?
Posted by Rosario Lewis, GRI ~ DDR Realty, Orange County, NY (DDR Realty) over 2 years ago

I think we don't need to disclose commercial zones and highway zones thats obvious!

But with airport zones i am wondering do we need to disclose that? is this as obvious as as the examples above

Joel

Posted by Joel Silberstein Brooklyn NY Certified Mortgage Specialis (The Silberstein Group - Brooklyn NY Mortgage Planning Team) over 2 years ago
Not only do they try to rip you off, they send your email out and you get a ton of junk mail. I am from Cuba and learning to read in English, tell me right I wrote the following sentence: "Very, the itchy bias hair produces into two or three organizations and the effect may be two to three drugs in baldness." With love :), Johnny.
Posted by Johnny 11 months ago

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