Web won't replace real estate agents

Orange County Register ^ | June 17, 2011 | Jeff Collins

[WilliamIII]

Now, online real estate data is so abundant, buyers and sellers can do most of the research themselves, according to speakers at the 45th annual conference of the National Association of Real Estate Editors.

Nonetheless, speakers maintained, the Internet won't replace the real estate agent the way it did the travel agent.

[willyd]

How much do you pay for leads from trulia if you don’t mind me asking? Are they worth it?

[virginia lurker]

A realtor told me this week he sold a house which was a flip the seller priced it below market to sell fast. The buyers we qualified and loan was going smoothly until the appraisal came in over the purchase price. The lender tried to get out of the loan because of the higher value. After enough hell was raised the lender relented and its now back on track.

[RegulatorCountry]

That makes no logical sense at all. Unless, that is, the buyer wanted to reduce their downpayment due to the higher appraisal. Or, the lending institution held the property due to foreclosure. Those two situations would have the lender balking.

Otherwise, it’s all to the good for the lending institution, for buyer to have higher equity in the property. In the even of default, that means more for the lender after auction or REO sale, so it’s an even safer bet, for them or to whomever they sell the “paper,” which would be Fannie Mae or Freddie Mac for all intents and purposes these days.

[virginia lurker]

The loan underwriters have a set of criteria to go by and if anything varies at all the kick it out. Logic and common sense have nothing to do with the process.

[RegulatorCountry]

I’m familiar with the process and have bought properties that appraised high. It’s sort of an objective, to get a deal, from buyer’s perspective.