This article in the Orlando Sentinel by Jerry W. Jackson has kept me thinking since I read it. I have been wandering what is the real goal here.
Is it to reduce inventory?
Is it to help the consumer?
Is it to be able to control value of homes?
Is it to streamline the banking industry and save money for the banks?
Is this experiment deemed to fail?
Can I with good conscience recommend these pre-approved homes?
So I went into the Multi Listing System and pulled up randomly 8 single family homes in Orange County that all are pre-approved by Fannie Mae, on average these homes are in the lower third of the price range of homes in the subdivisions they are located in, same when it came to price per square feet.
So let me try to answer the questions that I have been asking myself since I saw this article.
I don’t think this will reduce inventory as I can not see a benefit for the home buyer, any home buyer that I have worked with will wait 1 to 3 months to save from $10,000 to $40,000.
The only time that I can see this program help consumers is when the home that they are looking at and decide to make an offer on, is for coincident in this program.
Looking at the square footage price of the eight homes that are all similar in age, have similar subdivisions, and are priced from $77.93 to $144.93 I don’t think they are trying to control values. With the proven fact that in one incident it was the lowest price and another incident it was the highest price in the subdivision. This price seems to be more in line with what is owed on the homes.
Yes, I think that Fannie Mae is trying to save money, i.e. salaries, legal fees, attorney cost, and so on.
I do believe that this experiment is going to fail, when the buyer sees that he can save up to a years salary by having a little patient. Also the fact that there are at this moment mainly investors buying and they will only look at location, price and than condition, I don’t see them wanting to pay for time.
This is why I can not tell my customers that they should go out and buy a pre-approved Fannie Mae short sale. I will continue to look for the best deal in the area that they want to live in. If a pre-approved Fannie Mae short sale, is one of the homes that we come across, than I will tell them how the program works.
Contact Erna and Petur Sigurdsson, Realtors at The Viking Team, Realty at 321-263-5096 for help buying or selling a home in Longwood, Lake Mary, Altamonte Springs, Sanford, Seminole and Orange County and the surrounding areas of Central Florida. To Search For Homes For Sale in Central Florida Click Here.