Last week ended with some good news that can affect many Costa Mesa real estate transactions—specifically some with bottom lines equal to $400,000 or less. It came in the form of a rule change from Washington’s rule-makers, and whether or not it applies to your own property, it may signal a shift in regulatory outlook.
Many Costa Mesa real estate transactions are subject to Federal regulations—rules devised to ensure the soundness of the financial institutions that provide home loans. Theoretically, everyone who buys or sells Costa Mesa real estate should benefit from legal regulations that restrain lenders from granting loans too easily. When that takes place, widespread “easy money” usually results in the kind of abrupt return to reality we saw in the last decade. Nobody wants that!
One way regulators prevent residential real estate “bubbles” is by seeing that home loans are legitimately collateralized—that home loan amounts don’t exceed the real value of the underlying properties. That’s realized by requiring that strictly professional appraisals be performed. Appraisals demonstrate that homes true values equal or exceed proposed loan amounts.
But—it’s always a balancing act. Appraisals take time and cost money—making buying and selling that much more cumbersome. Any regulation that is too strict unnecessarily retards legitimate Costa Mesa real estate transactions. Over time, that’s what had happened with the appraisal requirement.
Last Friday an official press release announced a lightening of the appraisal requirement. The Federal Reserve, FDIC, and Office of the Comptroller of the Currency “have adopted a final rule that increases the threshold for residential real estate transactions…from $250,000 to $400,000.”
The rule change was made after consultation with various consumer protection entities to ensure that upping the threshold for appraisals wouldn’t be overly liberal. Since 25 years have passed since the last adjustment, inflation alone probably validated the decision.
For qualifying Costa Mesa real estate transactions, it will be a welcome change. Part of my job is to see that your own real estate initiatives surmount all the legal and technical hurdles with a minimum of fuss. Call us!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at firstname.lastname@example.org