Big Changes For Home Buyers, Sellers
Cooper calls the newly-enacted portion of Dodd-Frank the "most significant" change for the buying and selling process he's ever experienced.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowSweeping new regulations as part of Dodd-Frank financial reform went into effect over the weekend and are expected to have a big impact on real estate deals from offer to close. “In my nearly 30 years in real estate, this will be the most significant change for buyers, sellers, title and mortgage people,” says Greg Cooper, a broker with Berkshire Hathaway HomeServices in Indianapolis.
The regulations include new timelines, disclosures and forms aimed at giving consumers greater awareness about the mortgage process. Lawmakers think the stricter guidelines will help prevent another housing and credit crisis. Cooper says the new regulations are well-intentioned, but could make it trickier to close deals on time. “If those timelines are not met along the way, the clock could re-set or nothing could happen,” said Cooper. “One thing getting off (track) and it could be delayed or may not happen at all.”
As for the current state of the residential market, Cooper says things continues to gradually improve, noting a year-over-year increase in pended home sales in August in central Indiana. But he calls it a niche market. “Rehab builder homes are flying off the shelves, but if you’ve got an older home, it’s going to be tougher and you’re going to be more price sensitive to get to the closing table.”
Cooper says interest rates will continue to be the story as 2016 approaches. “It’s going to depend a great deal on our federal monetary policy,” said Cooper. “If that’s stable, it’s going to keep going right like it has, if that changes, we’ll have to re-evaluate.”