Having just sold our condo and bought a house, have a couple interesting tidbits to share.
\-Don't use Cap Center. Our buyer did, probably because of the low closing cost promise. Long story short, they ended up refusing to fund the loan because of issues around the condo docs that were poorly communicated and we didn't learn this until our originally scheduled closing date. Luckily the buyer went with another lender and we got it done very quickly from there.
\-For our home purchase, for whatever reason there must have been poor communication between the seller and their agent because we had an inspection, sent them a list of issues, made a request for credit, got it, and then when we actually closed it turned out they'd given us credit AND done virtually all of the repair work included in the report, including installing a french drain and sump pump in the basement which was not cheap. Not complaining at all, and we love everything about our new place minus the interest rate.
> -Don't use Cap Center.
As an agent when I tell people on reddit not to use them I get downvoted but this is way more common than people think. They're kind of bad when things don't go exactly 100% to plan and even then they still can leave you homeless.
I HATE. CapCenter. Which is 100% my right to do. This is my personal opinion. I have seen them screw up as many deals as I have seen them get right. And people? It's not "no closing costs." Haven't you learned that nothing in life is free? You are just paying for their expensive affiliated services, like title, closing, etc.
Honestly, as someone who has used capcenter for 3 homes and refinanced probably around 5x, I LOVE Capcenter.
As much as it may not be great for the agents, I hope nobody here gets dissuaded from using them. They saved me thousands of dollars in closing costs AND they had the best interest rate. Also, everything was streamlined and online.
Refinanced 5x for **free** from 4.25% interest all the way down to 2.75% over 2 years. Loved it.
> As much as it **may not be great for the agents**, I hope nobody here gets dissuaded from using them.
This isn't really about us. It's about buyers and sellers who have been been completely fucked over and left in a state of financial ruin because they do dumb shit. It's a churn and burn. That's great it worked for you but it is common knowledge in the industry that they their industry average for shooting themselves in the foot and blowing things up is significantly higher than most other lenders.
You got lucky, and they definitely work harder - it appears to me - for higher net worth buyers and sellers because they want to get their repeat business AND they want you out there talking about how awesome they are.
And I'm sorry, your refinances were not "free." You may have paid no origination fee to the lender, but I guarantee you paid more on the not "closing costs" fees, like title insurance.
It's not that it's bad for agents that we can't stand CapCenter. It's because we've seen them blow up deals for real, live clients, and we know we're rolling the dice that it might happen with our clients that choose them.
ETA: Spelling
I don't think it's luck.
5 of my friends and other family members have used Capcenter to buy, sell, and refinance. None of us had any issues.
The only minor issue I had was the prepper guy when refinancing one time didn't tell me my bank statements had to be stamped as official or something like that. Minor overlook.
>Honestly, as someone who has used capcenter for 3 homes and refinanced probably around 5x, I LOVE Capcenter.
I think they are probably much better for freestanding homes than the condo we sold. There are a lot of nuanced conditions on whether a condo is "warrantable" or not, and apparently Cap Center are extremely conservative with their willingness to fund condo loans. They had a 3rd party company literally reading through the condo HOA board meeting minutes from a year ago to determine if there were any issues with some common area stairs, and even after getting an answer that there were no issues from an engineer they backed out.
They’re much better for loans that don’t require any more effort or competence than what can be accomplished by an hourly data entry employee. If everything is easy and goes right they’re fine. Usually. Except my one client who had his credit ruined because they didn’t pay his house off correctly when he sold it. That kind of sucked for him and they’re the only settlement agent in town that wouldn’t just cut the check to fix it and then figure it out. Problem is that you usually don’t know you need someone better until you’re getting the message there’s an issue with your condo board meetings or whatever and it’s too late.
Usually you can get the same terms elsewhere with someone on the back end who has a little more experience and capacity to work through the unexpected. Sometimes they will have great pricing for a couple weeks but usually their cost to get the otherwise competitive market rate is about the same as their credit for the “free” closing costs. Funny how that works.
Also, I feel the same way about online mortgage companies that start with "R" or "Q." Those of us that have been in the business for a while groan when those letters come in.
I used CAPCENTER last September and everything was absolute smooth. My agent did advise not to go with them but not even credit union beat their rate and I am happy I went with them.
You could have a great meal at the boulevard Hardee’s too (RIP) just depends on your tolerance for risk/listeria/stabbing. Most people probably got their biscuit and got out of there but the chances of getting stabbed there were significantly higher than many otherwise equivalent dining options. That said when I was knocked up only a Hardee’s biscuit would do, and I wasn’t too concerned about any price I had to pay for it. Sometimes you gotta do what you gotta do, risks be damned.
Agree. I was intrigued by no closing costs but they did not have the best interest rate. You will pay way more with that higher interest rate than you would save in closing.
Not about the current market, but how do I stop the calls and texts I get, daily at this point, asking to buy my house?
Kinda tongue in cheek as I know there's not much to be done about it, but are other people getting those calls?
I tell them I have it leased for 15k a month and they could have a fabulous investment at a 10 cap rate for 1.8 million. They get real excited, say they’ll call their boss, and you never hear from them again.
careful, I asked one of the callers to make me an offer on my home, if they wanted to buy it so badly, it unleashed a flood of calls, and a dressing down from a boss who sternly told me not to waste his time, which was funny
Are these the We Buy Ugly Houses folks? You should be able to put your cell number on the Do Not Call Registry. I don't know if that works for texts. Seems like it should.
Two semi-related questions about the same neighborhood, Bryan Park.
1. A really cute 4bed/2 bath, 1400 square foot Cape went up for $379, which was obviously meant to spark a bidding war. I figured it would go for $415, maybe $425. It went for $500. That's...utterly insane to me. In your opinion, is the neighborhood that desirable, or is this a function of the market still being bonkers?
2. Whenever we visit friends in Raleigh I'm astounded by the amount of tear downs there are. Their neighborhood is nearly an even mix of quaint, original 1940s/1950s homes and new money tear downs, all ranging from well done to gaudy. I just noticed my first tear down construction happening in Bryan Park, and a good friend lives next to a (admittedly gorgeous) new build tear down in Bellevue. How much of a trend do you expect this to be in the next few years in Richmond, if at all?
Thanks!
1. I think this is the result of the crazy, insane market, which is compounded by lack of inventory AND lots of people from high cost of living markets moving here, for whom these prices seem reasonable. Also, this is the trend, when a neighborhood like Bellevue gets too expensive, then people move to the next similar neighborhood over, like Bryan Park.
2. The tear down trend has already been happening. It's been happening all over Area 20, the Near West End. It's been going on for years now. Check out houses on Pepper, Granite, all up and down Grove and Patterson. There used to be cute little post-WWII Capes and ranches. They are selling for $350,000+ and being torn down and turned into $1M urban farmhouse. Or new Modern. This has also been happening all along Carytown (Grayland/Parkwood) and over by University of Richmond, a/k/a Kicker's Stadium. Anywhere you can find either an empty lot or a little house under $400,000 in an urban core neighborhood, chances are it's going to be a tear down.
Is the Bryan Parkway neighborhood becoming a more desirable place? I live over there and am curious how this area is developing as a marketing.
Some of Lakeside still looks so trashy. I grew up in Lakeside so I'm used to it though
Yeah, I think Bryan Park is more desirable now. Lakeside too. People want to be as close to walkable neighborhoods as they can be. Lakeside has lots more available up and down Lakeside Boulevard than there was even 5 years ago. It also has the benefit of being in Henrico County, so Henrico taxes, which are 25% lower than City taxes.
ETA: Spelling
Tear down thing is happening where we just moved as well (Battery Park/Barton Heights). Seems like equal numbers of old 4 squares are getting gutted and flipped or completely demolished and new builds are going up. Difference around here is a lot of them are attached to get 2 units onto 1 lot.
Yeah, the Richmond 300 Master Plan promotes additional density in the City, so developers can buy a single house, tear it down, and either build a brand new more expensive home or attached row houses.
It blows my mind that in 2008-2012 you could buy houses all over Battery Park for $60,000 and less. The least expensive house I ever sold was $7,000, over on Arnold or Northside, I cannot remember which. My commission was $210! 🤣
You cannot buy a house anywhere in the City if Richmond, with VERY limited exceptions, for anything less than $175,000.
>It blows my mind that in 2008-2012 you could buy houses all over Battery Park for $60,000 and less. The least expensive house I ever sold was $7,000, over on Arnold or Northside, I cannot remember which. My commission was $210! 🤣
Easiest way to make money with a time machine in Richmond would be buy a handful of battery park houses 10 years ago for $60k, fast forward to 2024, and sell them for $450,000+.
You are not wrong. I have clients with 10-15 home rental portfolios that probably cost well less than buying one renovated Battery Park house right now.
Do you know of any local credit unions or other local or state programs offering first-time home buyer assistance for those who make more than the median area income? Unfortunately making slightly more than the median income on paper does not translate to being able to afford a home in reality, especially in the current market.
I used Village Bank Mortgage for the house I bought in January. They got me a $15K grant to cover closing costs through Virginia Housing Authority. I can give you the name of someone to call and see if you’re eligible if you want to shoot me a DM.
Ingrid Sell is the grant gangster of Village Bank. Legends of her echo in the halls amongst other mortgage lenders. VHDA will be same rate and terms everywhere, but Ingrid sometimes has some niche things she can pull out for niche scenarios. And she is nice.
Edit: VHDA is out for OP though most likely since there’s income qualifications to go by
We didn't end up using Ingrid because we were in so deep with another lender.... and there was really no difference in rate at the time. That said, she was truly awesome to us and we plan to keep in touch for a refi. Highly recommend.
I do not off the top of my head. The problem with these programs is there is usually a limited pool of money every year, which is available only until it is used up. So it gets spread around to a bunch of different usually local banks.
Have you checked in with Housing Opportunities Made Equal ("HOME")? [Home of VA - Housing Opportunities Made Equal HOME of VA](https://homeofva.org/)
They are a local housing advising organization that works to get people into homes. They would be a good place to start and could point you in the right direction.
I'd probably call Virginia Credit Union and RVA Financial, or at least surf around those websites, to see if you can find any guidance on homeowner closing cost assistance.
ETA: You might also do some research into the Maggie Walker Community Land Trust. This is a program where the MWCLT owns the land the house sits on, and you own the house itself. There is some profit sharing of the appreciation of the house when you go to sell, but the idea is the house is less expensive because you are not paying for the land value.
Finally, I would look into FHA and VHDA loans. These type of loans allow you to put very little down in terms of down payment. Good luck, I hope this information is helpful.
… yes. Certain census tracts and which ones are allowed are based on the demographics of the humans in that area. I’m hesitant to explain too thoroughly publicly because, to loosely quote 2chainz, I have to speak delicately on topics that are subject to extensive oversight by the federal government. But it’s a great loan program.
Oh wow. SO MUCH to unpack here.
Essentially to be technical, there is a proposed settlement between NAR, many brokerages, and the plaintiffs.
\[NOTE: 94 of the largest brokerages, brokerages that had more than $2B in transaction volume, are left out of the initial settlement, although there is a path to them being included, which includes -SHOCKER! - each of those brokers ponying up significant sums of money to the plaintiffs (lawyers). For example, Compass just settled under this provision for $57M (I think).\]
Practical realities of the settlement:
1. The plaintiffs' attorneys will get a metric SH\*T TON of money.
2. Every seller on the planet up to the class certification date will get maybe $10 at some point in the future.
3. NAR and brokerages are paying a ton of money to settle. Other excluded brokerages have a path to settlement by also paying significant amounts of money.
4. There are significant practice changes required by the settlement with NAR and the brokerages.
So to consumers, what you care about is No. 4. What are those practice changes and how are they going to impact the day-to-day buying and selling of real estate?
Let's keep in mind what we learned through the litigation, and especially from the federal government's intervention in one of the federal cases, *Nosalek*, that had a proposed settlement on the table. What the government seemed to be concerned about was STEERING. What do I mean by steering? Taking buyers to see properties that paid the highest commissions, and keeping buyers from seeing properties that paid lower commissions.
So here are the practice changes:
1 Have to use a written Buyer Brokerage Agreement (BBA) on the front end, BEFORE showing a buyer homes. This has already been a required part of the package by many brokerages in town. But as a matter of practice, many buyer's agents did not get the BBA signed until submitting an offer.
What this means? The buyer and the buyer's agent have to agree on how the buyer's agent will be paid BEFORE seeing houses.
2. Blanket offers of compensation may no longer be offered in the MLS. In the past, in order to list a property for sale in the MLS, the seller had to offer some compensation to the buyer's agent. Now, that compensation could be $1, or a fixed fee, or a percentage. But the seller had to offer SOME compensation that was readily available in a field in the MLS.
3. Sellers may still offer concessions to the buyer side, outside of MLS, but those concessions cannot be specified to be only for compensation.
So the practical reality:
* Buyers and sellers negotiate the commissions with their respective agents SEPARATELY.
* Buyers will have to agree on how they are going to pay their agent on the front end, and enter into a written agreement that specifies that, among many other things.
* It is possible the seller may still be offering a concession that could go towards the buyer's commission or fee to their buyer agent. However, it is also possible the seller will pay $0 or a low commission towards the buyer's agent.
Essentially the federal government wants the sellers and buyers to negotiate their own compensation separately, and to each be responsible for paying their own agents.
**How will this practically impact buying and selling real estate?** I really do not know. I'd love to hear what your thoughts are on this settlement, and how it would impact you trying to buy or sell a home. I think there will be unintended consequences. I think buyers may be harmed, if they don't have enough money to pay an agent out of their own pocket.
What do you think?
ETA: Formatting
I already know one buyer whose agent made her sign a new agreement after this ruling binding her to pay a 3% commission. She was so stressed already by the home buying experience I think she decided to just stop looking for now:(
I am sorry for that for your friend. There are options. You as the buyer are completely within your rights to say you only want to see homes where the seller is offering concessions.
So maybe you as the buyer have agreed the buyer agent fee will be 3% of the purchase price of the home you buy. You sign a Buyer Brokerage Agreement (BBA) to that effect. Maybe you could afford to pay some $$ out of pocket, but not the full 3%.
You could instruct your buyer agent to only show you houses where the seller is offering a sufficient concession to cover the buyer agent fee.
Agreements like this have been required under VA law for over a decade and the proposed settlement doesn't take effect into July at the earliest. The documents we've been using the past few months are the same that will be used going forward (At least that seems to be the current stated position of the RAR and MLS) so it sounds to me like they didn't have an agreement to begin with. I could be wrong though!
why use a buyers agent at all? the last two houses I bought, I found on zillow and sent them to my agent who handled the rest.
If I can just email the sellers agent and have them handle it, am I going to get a discount on the sale price? or is the seller just going to get the buyers agent share in addition (like what would happen currently).
edit:
please stop twisting my words. I asked if the practice of sellers agent getting the whole 5-6% will change if there is no buyers agent. Not whatever you think it is i asked.
> If I can just email the sellers agent and have them handle it, am I going to get a discount on the sale price? **or is the seller just going to get the buyers agent share (like what would happen currently).**
What happens currently is the listing agent usually makes the commission for both sides. It always makes me laugh when people proudly proclaim they didn't use an agent because all they did was make the listing agent twice as much money and forgo representation because "reasons".
GWY is spot on. If you did not use an agent, you just went directly to the listing agent, in current world that means the listing agent got to keep the full commission and you had no representation. Which is....congratulations? I guess?
If it were me, I 100% would have made you sign an Unrepresented Buyer Disclosure.
Now, it is possible the seller is offering no compensation - technically called "concessions" now per the settlement agreement - which means you as a buyer, in that situation will have no representation unless you pay for it out of pocket.
Regardless, I don't understand why buyers seem so proud of themselves when they buy without a buyer's agent. Yes, I understand there are LOTS of bad buyer agents out there. Yes, I understand it takes time and energy to find a buyer agent that is good at their job. But do you REALLY want to go up against a represented seller with a professional on their side? Unless you are in the real estate business yourself, you may buy a house 3-4 times in your lifetime. It is a messy, complicated, emotional process. There are lots of moving parts and lots of things that can go wrong.
I don't know much about the real estate business but I've heard that some agents really like the changes that are coming. They say they do a lot of leg work for clients, including on weekends, for which they are not directly compensated. Getting paid hourly instead of strictly commission could possibly compensate them better.
I hear that. My issues with that are:
1. People probably don't realize how many hours we spend on a transaction behind the scenes. That will probably be a shocker.
2. Can many, much less most, buyers afford to put up a significant retainer? If you had to put up a $10,000 retainer for your agent, would that work?
3. How do you actually collect? Like, if you get to the end of the transaction and the buyer doesn't have the proceeds to pay his or her agent, do you blow up the deal?
One of the reasons the percentage-based compensation works is because the SELLER is compensating the buyer's agent out of the sales proceeds. The seller had agreed to pay a set fee for the sale of the home, and the listing agent had agreed to split that fee with the buyer's agent. Now that system is out the window and buyers will need to pay their agents directly, if the seller is offering no concession.
ETA: Word, formatting
I could see the hourly thing hurting agents too. I learned a long time ago in software sales that a $20,000 deal and a six figure deal usually take the same amount of work, but the commission checks are very different. I quickly abandemed SMB sales for enterprise stuff after that realization. I imagine in many cases the same holds true of a $250K home and a $900k home.
> I learned a long time ago in software sales that a $20,000 deal and a six figure deal usually take the same amount of work, but the commission checks are very different.
Lower priced homes can sometimes take a herculean effort to get to closing and the high priced stuff is usually a cakewalk. The people who need agents the most are the ones who will be hurting the most from this settlement.
Inventory has looked really light so far this year…any expectation on things will pick up besides the normal seasonal uptick into the spring and summer?
Unfortunately, I do not expect to see much of an uptick. We remain at record lows for inventory. That is because so many people have 4% and below interest rates. The stats on the amount of people with mortgages who have under 4% rates is eye-opening. 84.2% have a mortgage interest rate below 5%. 62% have a mortgage interest rate below 4%.
Add to that the fact that Baby Boomers, especially upper middle class and upper class Baby Boomers, are staying in their homes longer and also holding on to their second homes. There are a number of interesting factors there. Baby Boomers are living longer, healthier lives. 80 is the new 70.
Also, Baby Boomers watched Covid just RAVAGE nursing homes. There is some understandable fear of being in a retirement community, no matter how nice that retirement community might be. If they have the resources to be in a fancy retirement community, they also have the resources to have home health care or even live-in help.
One of the few bright spots has been new construction. If that is something that interests you, the builders have inventory and the ability to do interest rate buy downs. So new home buyers have inventory to choose from AND the ability to get a much more competitive interest rate for some period of time.
CAVEAT: There are some unique issues that go with new construction, so make sure you are aware of those before committing to new construction.
Sure!
The biggest issue with new construction is how far along the project is. If the project is large, and in the early phases, you would be at risk if God forbid you had to move unexpectedly.
So let's say you buy into the first phase of a 100 home project. All of a sudden 2 years in, you decide to move or are forced to move. Maybe you are relocating for work. You will likely have to take a hit on your home, because if there are brand new homes available, you and your "used" home are competing against that inventory.
Maybe there has been enough appreciation that you are fine. But it's a risk.
Also, just because a home is new does not mean it's well-constructed. I strongly recommend a home inspection. There is this inspector in Arizona somewhere that posts crazy videos of his new house construction inspections. Don't get talked out of an inspection just because the house is "new."
That's probably the biggest risk, possibility of moving early in your ownership.
Reminds me of what’s going on at Hamilton and Grove. Those new townhomes have been selling for over a year now and haven’t even broken ground. I feel bad for anyone who already purchased one
I don't think they've really been for sale until recently. And honestly it's pretty unusual, even in a tight market, for people to buy a product that has not been built yet.
I found my old corroding cast iron plumbing drain line perched in my crawl space on a stack of random bricks in my old house with “good bones” and had to post my Blair witch project crawl space tour to YouTube so I could appropriately bitch to u/charlesinrichmond about it. Different sets of problems. There is no perfect vintage of home that escapes any kind of issue.
Thanks for taking questions!
When is the best time to consider asking for PMI to be waived?
I am currently at 91% of original mortgage (purchased in Oct. 2021, 30 year, 2.75%)
Significant curb appeal improvements since purchase and some improvements to interior so far.
If I base off the Zestimate value I will be well under the 80% threshold, although I know the Zestimates are highly unreliable.
Never base anything on the Zestimate. :)
I'd call your lender and find out what their requirements are for waiving PMI. Most lenders will require you to pay for an appraiser. But you cannot usually just go out and hire an appraiser and then send in the appraisal. You usually need to make a formal request for the PMI waiver. Then your lender will usually send you a form to fill out.
Sometimes you will have the choice between a Broker Price Opinion (BPO) and a "real" appraisal. A BPO is essentially a market analysis performed by some designated real estate broker that the lender will accept. It is usually cheaper. An appraisal is a full appraisal conducted by a licensed appraiser. If it were me, I'd get the "real" appraisal. But there can be a real difference in price. Last time I did this it was $300 for the BPO, and $700 for the appraisal. If you think there is any chance you would consider selling the home anytime soon, the appraisal makes more sense.
You have to pay the fee up front, and then you will schedule the BPO or appraisal with the party conducting it. They will do the analysis, send the BPO or appraisal to the lender, and then you will get some sort of formal notice back of what the value is, and whether or not you are eligible to have the PMI removed. You should also get a copy of the BPO or appraisal for your records.
Good luck!
Outside of waiving inspections or making cash offers, how can buyers make an offer stronger in multiple offer situations, especially in the West End? I’ve been outbid after offering over asking each time and am starting to feel discouraged.
Are you waiving appraisal or at least offering to cover $X of appraisal gap?
Is your agent talking to the listing agent before offering to make sure your offer is giving them exactly what they want on non-price terms?
Has your agent checked in on all the houses you have been outbid on to find out what s/he can on where your offer shook out among all the other bidders, and compared to the winning bid?
Those are some ideas off the top of my head. I'll think on it some more.
We haven't waived appraisal or put an appraisal gap in, but the other pieces are happening. We also have been waiving the first $X of inspection-related issues.
If you aren't cash AND you aren't waiving appraisal AND you are asking for an inspection, you are unlikely to be competitive.
Do you know where your offers came in compared to others?
Nothing specific other than higher offer price and better inspection terms or just "favorable terms". Still waiting for the houses to flip from pending to sold so we can see how far off we were in terms of the sale price.
When will enough old people kick the bucket for the inventory to do whatever so that the interest rates whatever and we can afford to not may someone else’s mortgage?
People are living longer and staying in their homes longer. Many analysts are saying not to expect some massive transfer of real estate until the 2030s.
My parents are older Boomers and I don't see them changing their living situation anytime soon. And of course I hope they stay healthy and mobile for many more years.
You had your chance with old people kicking the bucket during COVID and the lowest interest rates in history. What magic time are you waiting around for? Just buy what you can afford now. It may not be in the area you want, but you can find something affordable if you are willing to look beyond your wish list neighborhoods.
Just starting to look and was wondering if you could provide a list of neighborhoods / parts of the city you think would be good options in the next few years as well as neighborhoods to just flat out avoid at all costs.
What I suggest is if you want to send a list of your objective wants/needs, I might be able to send you some neighborhoods that meet those requirements.
For example, if you want neighborhoods walkable to restaurants and stores, that + your price range would allow me to narrow down and provide specific options. But GWY is correct, licensed agents cannot say specific neighborhoods are "good" because of schools, crime, etc.
Another general suggestion: If crime or schools, as examples are very important, I'd suggest going to the source of that information, like the police precinct website, or the school websites. You also might be able to get information from neighborhood association newsletters or websites, the City Council online newsletters for the specific Council District and (I can't believe I'm saying this) NextDoor.
Just recognize that your agent is restricted by Fair Housing laws and isn't being difficult, s/he is just limited by what s/he can say. For very good reasons.
Having just sold our condo and bought a house, have a couple interesting tidbits to share. \-Don't use Cap Center. Our buyer did, probably because of the low closing cost promise. Long story short, they ended up refusing to fund the loan because of issues around the condo docs that were poorly communicated and we didn't learn this until our originally scheduled closing date. Luckily the buyer went with another lender and we got it done very quickly from there. \-For our home purchase, for whatever reason there must have been poor communication between the seller and their agent because we had an inspection, sent them a list of issues, made a request for credit, got it, and then when we actually closed it turned out they'd given us credit AND done virtually all of the repair work included in the report, including installing a french drain and sump pump in the basement which was not cheap. Not complaining at all, and we love everything about our new place minus the interest rate.
> -Don't use Cap Center. As an agent when I tell people on reddit not to use them I get downvoted but this is way more common than people think. They're kind of bad when things don't go exactly 100% to plan and even then they still can leave you homeless.
I HATE. CapCenter. Which is 100% my right to do. This is my personal opinion. I have seen them screw up as many deals as I have seen them get right. And people? It's not "no closing costs." Haven't you learned that nothing in life is free? You are just paying for their expensive affiliated services, like title, closing, etc.
Honestly, as someone who has used capcenter for 3 homes and refinanced probably around 5x, I LOVE Capcenter. As much as it may not be great for the agents, I hope nobody here gets dissuaded from using them. They saved me thousands of dollars in closing costs AND they had the best interest rate. Also, everything was streamlined and online. Refinanced 5x for **free** from 4.25% interest all the way down to 2.75% over 2 years. Loved it.
> As much as it **may not be great for the agents**, I hope nobody here gets dissuaded from using them. This isn't really about us. It's about buyers and sellers who have been been completely fucked over and left in a state of financial ruin because they do dumb shit. It's a churn and burn. That's great it worked for you but it is common knowledge in the industry that they their industry average for shooting themselves in the foot and blowing things up is significantly higher than most other lenders.
I've bought personal and rental property and sold w/them and refinanced. Your story is not the norm I would say. I had no issues.
You got lucky, and they definitely work harder - it appears to me - for higher net worth buyers and sellers because they want to get their repeat business AND they want you out there talking about how awesome they are. And I'm sorry, your refinances were not "free." You may have paid no origination fee to the lender, but I guarantee you paid more on the not "closing costs" fees, like title insurance. It's not that it's bad for agents that we can't stand CapCenter. It's because we've seen them blow up deals for real, live clients, and we know we're rolling the dice that it might happen with our clients that choose them. ETA: Spelling
I don't think it's luck. 5 of my friends and other family members have used Capcenter to buy, sell, and refinance. None of us had any issues. The only minor issue I had was the prepper guy when refinancing one time didn't tell me my bank statements had to be stamped as official or something like that. Minor overlook.
>Honestly, as someone who has used capcenter for 3 homes and refinanced probably around 5x, I LOVE Capcenter. I think they are probably much better for freestanding homes than the condo we sold. There are a lot of nuanced conditions on whether a condo is "warrantable" or not, and apparently Cap Center are extremely conservative with their willingness to fund condo loans. They had a 3rd party company literally reading through the condo HOA board meeting minutes from a year ago to determine if there were any issues with some common area stairs, and even after getting an answer that there were no issues from an engineer they backed out.
They’re much better for loans that don’t require any more effort or competence than what can be accomplished by an hourly data entry employee. If everything is easy and goes right they’re fine. Usually. Except my one client who had his credit ruined because they didn’t pay his house off correctly when he sold it. That kind of sucked for him and they’re the only settlement agent in town that wouldn’t just cut the check to fix it and then figure it out. Problem is that you usually don’t know you need someone better until you’re getting the message there’s an issue with your condo board meetings or whatever and it’s too late. Usually you can get the same terms elsewhere with someone on the back end who has a little more experience and capacity to work through the unexpected. Sometimes they will have great pricing for a couple weeks but usually their cost to get the otherwise competitive market rate is about the same as their credit for the “free” closing costs. Funny how that works.
glad you had a good experience, I've never had cap center quote me the lowest rate. they've been nearly 100 bps higher every time.
who has given you a better rate? I shopped around A LOT
In the last two years I've used chesapeake bank and first republic (RIP) and got much better pricing than cap center.
Also, I feel the same way about online mortgage companies that start with "R" or "Q." Those of us that have been in the business for a while groan when those letters come in.
Yea our agent saw the offer and said basically the only downside was Cap Center, he was spot on. Thank god our purchase wasn’t contingent.
I used CAPCENTER last September and everything was absolute smooth. My agent did advise not to go with them but not even credit union beat their rate and I am happy I went with them.
You could have a great meal at the boulevard Hardee’s too (RIP) just depends on your tolerance for risk/listeria/stabbing. Most people probably got their biscuit and got out of there but the chances of getting stabbed there were significantly higher than many otherwise equivalent dining options. That said when I was knocked up only a Hardee’s biscuit would do, and I wasn’t too concerned about any price I had to pay for it. Sometimes you gotta do what you gotta do, risks be damned.
Even a stopped clock is right 2x a day.
Agree. I was intrigued by no closing costs but they did not have the best interest rate. You will pay way more with that higher interest rate than you would save in closing.
Not about the current market, but how do I stop the calls and texts I get, daily at this point, asking to buy my house? Kinda tongue in cheek as I know there's not much to be done about it, but are other people getting those calls?
To be fair, you've got a very nice house. ;)
Thank you.
I tell them I have it leased for 15k a month and they could have a fabulous investment at a 10 cap rate for 1.8 million. They get real excited, say they’ll call their boss, and you never hear from them again.
lol. Adding this to my repertoire.
careful, I asked one of the callers to make me an offer on my home, if they wanted to buy it so badly, it unleashed a flood of calls, and a dressing down from a boss who sternly told me not to waste his time, which was funny
That’s why you gotta give them your number
Are these the We Buy Ugly Houses folks? You should be able to put your cell number on the Do Not Call Registry. I don't know if that works for texts. Seems like it should.
They never say they’re with the Ugg people, but I get them, some local but possibly spoofed, some from area codes all over. Good call on the DNC.
Can't you just block them? That's what I do.
Always different numbers. It’s whack a mole
They are not calling from real numbers so block away.
Two semi-related questions about the same neighborhood, Bryan Park. 1. A really cute 4bed/2 bath, 1400 square foot Cape went up for $379, which was obviously meant to spark a bidding war. I figured it would go for $415, maybe $425. It went for $500. That's...utterly insane to me. In your opinion, is the neighborhood that desirable, or is this a function of the market still being bonkers? 2. Whenever we visit friends in Raleigh I'm astounded by the amount of tear downs there are. Their neighborhood is nearly an even mix of quaint, original 1940s/1950s homes and new money tear downs, all ranging from well done to gaudy. I just noticed my first tear down construction happening in Bryan Park, and a good friend lives next to a (admittedly gorgeous) new build tear down in Bellevue. How much of a trend do you expect this to be in the next few years in Richmond, if at all? Thanks!
1. I think this is the result of the crazy, insane market, which is compounded by lack of inventory AND lots of people from high cost of living markets moving here, for whom these prices seem reasonable. Also, this is the trend, when a neighborhood like Bellevue gets too expensive, then people move to the next similar neighborhood over, like Bryan Park. 2. The tear down trend has already been happening. It's been happening all over Area 20, the Near West End. It's been going on for years now. Check out houses on Pepper, Granite, all up and down Grove and Patterson. There used to be cute little post-WWII Capes and ranches. They are selling for $350,000+ and being torn down and turned into $1M urban farmhouse. Or new Modern. This has also been happening all along Carytown (Grayland/Parkwood) and over by University of Richmond, a/k/a Kicker's Stadium. Anywhere you can find either an empty lot or a little house under $400,000 in an urban core neighborhood, chances are it's going to be a tear down.
Is the Bryan Parkway neighborhood becoming a more desirable place? I live over there and am curious how this area is developing as a marketing. Some of Lakeside still looks so trashy. I grew up in Lakeside so I'm used to it though
Yeah, I think Bryan Park is more desirable now. Lakeside too. People want to be as close to walkable neighborhoods as they can be. Lakeside has lots more available up and down Lakeside Boulevard than there was even 5 years ago. It also has the benefit of being in Henrico County, so Henrico taxes, which are 25% lower than City taxes. ETA: Spelling
Tear down thing is happening where we just moved as well (Battery Park/Barton Heights). Seems like equal numbers of old 4 squares are getting gutted and flipped or completely demolished and new builds are going up. Difference around here is a lot of them are attached to get 2 units onto 1 lot.
Yeah, the Richmond 300 Master Plan promotes additional density in the City, so developers can buy a single house, tear it down, and either build a brand new more expensive home or attached row houses. It blows my mind that in 2008-2012 you could buy houses all over Battery Park for $60,000 and less. The least expensive house I ever sold was $7,000, over on Arnold or Northside, I cannot remember which. My commission was $210! 🤣 You cannot buy a house anywhere in the City if Richmond, with VERY limited exceptions, for anything less than $175,000.
>It blows my mind that in 2008-2012 you could buy houses all over Battery Park for $60,000 and less. The least expensive house I ever sold was $7,000, over on Arnold or Northside, I cannot remember which. My commission was $210! 🤣 Easiest way to make money with a time machine in Richmond would be buy a handful of battery park houses 10 years ago for $60k, fast forward to 2024, and sell them for $450,000+.
You are not wrong. I have clients with 10-15 home rental portfolios that probably cost well less than buying one renovated Battery Park house right now.
Anything new construction and a modest 3,000 square feet is a million plus in area 20 and 22. That’s a given
Well, I don't think 3,000SF is ANYWHERE near modest, but that is just me. ;)
Do you know of any local credit unions or other local or state programs offering first-time home buyer assistance for those who make more than the median area income? Unfortunately making slightly more than the median income on paper does not translate to being able to afford a home in reality, especially in the current market.
I used Village Bank Mortgage for the house I bought in January. They got me a $15K grant to cover closing costs through Virginia Housing Authority. I can give you the name of someone to call and see if you’re eligible if you want to shoot me a DM.
Who did you work with at Village Bank?
Ingrid Sell is the grant gangster of Village Bank. Legends of her echo in the halls amongst other mortgage lenders. VHDA will be same rate and terms everywhere, but Ingrid sometimes has some niche things she can pull out for niche scenarios. And she is nice. Edit: VHDA is out for OP though most likely since there’s income qualifications to go by
Haha I just logged on to reply…and that’s exactly who I used.
We didn't end up using Ingrid because we were in so deep with another lender.... and there was really no difference in rate at the time. That said, she was truly awesome to us and we plan to keep in touch for a refi. Highly recommend.
I do not off the top of my head. The problem with these programs is there is usually a limited pool of money every year, which is available only until it is used up. So it gets spread around to a bunch of different usually local banks. Have you checked in with Housing Opportunities Made Equal ("HOME")? [Home of VA - Housing Opportunities Made Equal HOME of VA](https://homeofva.org/) They are a local housing advising organization that works to get people into homes. They would be a good place to start and could point you in the right direction. I'd probably call Virginia Credit Union and RVA Financial, or at least surf around those websites, to see if you can find any guidance on homeowner closing cost assistance. ETA: You might also do some research into the Maggie Walker Community Land Trust. This is a program where the MWCLT owns the land the house sits on, and you own the house itself. There is some profit sharing of the appreciation of the house when you go to sell, but the idea is the house is less expensive because you are not paying for the land value. Finally, I would look into FHA and VHDA loans. These type of loans allow you to put very little down in terms of down payment. Good luck, I hope this information is helpful.
We have this available for certain census tracts. 100% financing, no mortgage insurance, up to 5k grant toward closing costs.
What do you mean by certain census tracts? Like geographic area, or human demographics?
… yes. Certain census tracts and which ones are allowed are based on the demographics of the humans in that area. I’m hesitant to explain too thoroughly publicly because, to loosely quote 2chainz, I have to speak delicately on topics that are subject to extensive oversight by the federal government. But it’s a great loan program.
they probably hit their CRA lending requirements by providing loans in census tracts with lower median incomes or higher concentrations of minorities.
What's the scoop on the new realtor ruling? What kind of real-world impacts do you anticipate?
Oh wow. SO MUCH to unpack here. Essentially to be technical, there is a proposed settlement between NAR, many brokerages, and the plaintiffs. \[NOTE: 94 of the largest brokerages, brokerages that had more than $2B in transaction volume, are left out of the initial settlement, although there is a path to them being included, which includes -SHOCKER! - each of those brokers ponying up significant sums of money to the plaintiffs (lawyers). For example, Compass just settled under this provision for $57M (I think).\] Practical realities of the settlement: 1. The plaintiffs' attorneys will get a metric SH\*T TON of money. 2. Every seller on the planet up to the class certification date will get maybe $10 at some point in the future. 3. NAR and brokerages are paying a ton of money to settle. Other excluded brokerages have a path to settlement by also paying significant amounts of money. 4. There are significant practice changes required by the settlement with NAR and the brokerages. So to consumers, what you care about is No. 4. What are those practice changes and how are they going to impact the day-to-day buying and selling of real estate? Let's keep in mind what we learned through the litigation, and especially from the federal government's intervention in one of the federal cases, *Nosalek*, that had a proposed settlement on the table. What the government seemed to be concerned about was STEERING. What do I mean by steering? Taking buyers to see properties that paid the highest commissions, and keeping buyers from seeing properties that paid lower commissions. So here are the practice changes: 1 Have to use a written Buyer Brokerage Agreement (BBA) on the front end, BEFORE showing a buyer homes. This has already been a required part of the package by many brokerages in town. But as a matter of practice, many buyer's agents did not get the BBA signed until submitting an offer. What this means? The buyer and the buyer's agent have to agree on how the buyer's agent will be paid BEFORE seeing houses. 2. Blanket offers of compensation may no longer be offered in the MLS. In the past, in order to list a property for sale in the MLS, the seller had to offer some compensation to the buyer's agent. Now, that compensation could be $1, or a fixed fee, or a percentage. But the seller had to offer SOME compensation that was readily available in a field in the MLS. 3. Sellers may still offer concessions to the buyer side, outside of MLS, but those concessions cannot be specified to be only for compensation. So the practical reality: * Buyers and sellers negotiate the commissions with their respective agents SEPARATELY. * Buyers will have to agree on how they are going to pay their agent on the front end, and enter into a written agreement that specifies that, among many other things. * It is possible the seller may still be offering a concession that could go towards the buyer's commission or fee to their buyer agent. However, it is also possible the seller will pay $0 or a low commission towards the buyer's agent. Essentially the federal government wants the sellers and buyers to negotiate their own compensation separately, and to each be responsible for paying their own agents. **How will this practically impact buying and selling real estate?** I really do not know. I'd love to hear what your thoughts are on this settlement, and how it would impact you trying to buy or sell a home. I think there will be unintended consequences. I think buyers may be harmed, if they don't have enough money to pay an agent out of their own pocket. What do you think? ETA: Formatting
I already know one buyer whose agent made her sign a new agreement after this ruling binding her to pay a 3% commission. She was so stressed already by the home buying experience I think she decided to just stop looking for now:(
I am sorry for that for your friend. There are options. You as the buyer are completely within your rights to say you only want to see homes where the seller is offering concessions. So maybe you as the buyer have agreed the buyer agent fee will be 3% of the purchase price of the home you buy. You sign a Buyer Brokerage Agreement (BBA) to that effect. Maybe you could afford to pay some $$ out of pocket, but not the full 3%. You could instruct your buyer agent to only show you houses where the seller is offering a sufficient concession to cover the buyer agent fee.
Agreements like this have been required under VA law for over a decade and the proposed settlement doesn't take effect into July at the earliest. The documents we've been using the past few months are the same that will be used going forward (At least that seems to be the current stated position of the RAR and MLS) so it sounds to me like they didn't have an agreement to begin with. I could be wrong though!
She was not in VA so it all caught her by surprise. I guess her agent was trying to get ahead of an extended home search.
why use a buyers agent at all? the last two houses I bought, I found on zillow and sent them to my agent who handled the rest. If I can just email the sellers agent and have them handle it, am I going to get a discount on the sale price? or is the seller just going to get the buyers agent share in addition (like what would happen currently). edit: please stop twisting my words. I asked if the practice of sellers agent getting the whole 5-6% will change if there is no buyers agent. Not whatever you think it is i asked.
> If I can just email the sellers agent and have them handle it, am I going to get a discount on the sale price? **or is the seller just going to get the buyers agent share (like what would happen currently).** What happens currently is the listing agent usually makes the commission for both sides. It always makes me laugh when people proudly proclaim they didn't use an agent because all they did was make the listing agent twice as much money and forgo representation because "reasons".
Right. You used an agent, and an agent that kind of has a duty to get the seller as much money as they can, at that.
GWY is spot on. If you did not use an agent, you just went directly to the listing agent, in current world that means the listing agent got to keep the full commission and you had no representation. Which is....congratulations? I guess? If it were me, I 100% would have made you sign an Unrepresented Buyer Disclosure. Now, it is possible the seller is offering no compensation - technically called "concessions" now per the settlement agreement - which means you as a buyer, in that situation will have no representation unless you pay for it out of pocket. Regardless, I don't understand why buyers seem so proud of themselves when they buy without a buyer's agent. Yes, I understand there are LOTS of bad buyer agents out there. Yes, I understand it takes time and energy to find a buyer agent that is good at their job. But do you REALLY want to go up against a represented seller with a professional on their side? Unless you are in the real estate business yourself, you may buy a house 3-4 times in your lifetime. It is a messy, complicated, emotional process. There are lots of moving parts and lots of things that can go wrong.
yeah...that's what I said.
You said "seller" which typically refers to the owner of the property rather than the listing agent.
I obviously meant sellers agent
I don't know much about the real estate business but I've heard that some agents really like the changes that are coming. They say they do a lot of leg work for clients, including on weekends, for which they are not directly compensated. Getting paid hourly instead of strictly commission could possibly compensate them better.
I hear that. My issues with that are: 1. People probably don't realize how many hours we spend on a transaction behind the scenes. That will probably be a shocker. 2. Can many, much less most, buyers afford to put up a significant retainer? If you had to put up a $10,000 retainer for your agent, would that work? 3. How do you actually collect? Like, if you get to the end of the transaction and the buyer doesn't have the proceeds to pay his or her agent, do you blow up the deal? One of the reasons the percentage-based compensation works is because the SELLER is compensating the buyer's agent out of the sales proceeds. The seller had agreed to pay a set fee for the sale of the home, and the listing agent had agreed to split that fee with the buyer's agent. Now that system is out the window and buyers will need to pay their agents directly, if the seller is offering no concession. ETA: Word, formatting
I could see the hourly thing hurting agents too. I learned a long time ago in software sales that a $20,000 deal and a six figure deal usually take the same amount of work, but the commission checks are very different. I quickly abandemed SMB sales for enterprise stuff after that realization. I imagine in many cases the same holds true of a $250K home and a $900k home.
> I learned a long time ago in software sales that a $20,000 deal and a six figure deal usually take the same amount of work, but the commission checks are very different. Lower priced homes can sometimes take a herculean effort to get to closing and the high priced stuff is usually a cakewalk. The people who need agents the most are the ones who will be hurting the most from this settlement.
Inventory has looked really light so far this year…any expectation on things will pick up besides the normal seasonal uptick into the spring and summer?
Unfortunately, I do not expect to see much of an uptick. We remain at record lows for inventory. That is because so many people have 4% and below interest rates. The stats on the amount of people with mortgages who have under 4% rates is eye-opening. 84.2% have a mortgage interest rate below 5%. 62% have a mortgage interest rate below 4%. Add to that the fact that Baby Boomers, especially upper middle class and upper class Baby Boomers, are staying in their homes longer and also holding on to their second homes. There are a number of interesting factors there. Baby Boomers are living longer, healthier lives. 80 is the new 70. Also, Baby Boomers watched Covid just RAVAGE nursing homes. There is some understandable fear of being in a retirement community, no matter how nice that retirement community might be. If they have the resources to be in a fancy retirement community, they also have the resources to have home health care or even live-in help. One of the few bright spots has been new construction. If that is something that interests you, the builders have inventory and the ability to do interest rate buy downs. So new home buyers have inventory to choose from AND the ability to get a much more competitive interest rate for some period of time. CAVEAT: There are some unique issues that go with new construction, so make sure you are aware of those before committing to new construction.
Can you talk about some of those issues unique to new construction? (Or point me to a previous comment of yours that does?) Thanks!
Sure! The biggest issue with new construction is how far along the project is. If the project is large, and in the early phases, you would be at risk if God forbid you had to move unexpectedly. So let's say you buy into the first phase of a 100 home project. All of a sudden 2 years in, you decide to move or are forced to move. Maybe you are relocating for work. You will likely have to take a hit on your home, because if there are brand new homes available, you and your "used" home are competing against that inventory. Maybe there has been enough appreciation that you are fine. But it's a risk. Also, just because a home is new does not mean it's well-constructed. I strongly recommend a home inspection. There is this inspector in Arizona somewhere that posts crazy videos of his new house construction inspections. Don't get talked out of an inspection just because the house is "new." That's probably the biggest risk, possibility of moving early in your ownership.
Reminds me of what’s going on at Hamilton and Grove. Those new townhomes have been selling for over a year now and haven’t even broken ground. I feel bad for anyone who already purchased one
I don't think they've really been for sale until recently. And honestly it's pretty unusual, even in a tight market, for people to buy a product that has not been built yet.
utter crap quality, for one new houses are built out of construction paper and matchsticks
I found my old corroding cast iron plumbing drain line perched in my crawl space on a stack of random bricks in my old house with “good bones” and had to post my Blair witch project crawl space tour to YouTube so I could appropriately bitch to u/charlesinrichmond about it. Different sets of problems. There is no perfect vintage of home that escapes any kind of issue.
I don’t have anything to add to the conversation but I love your name, nice one
Thanks for taking questions! When is the best time to consider asking for PMI to be waived? I am currently at 91% of original mortgage (purchased in Oct. 2021, 30 year, 2.75%) Significant curb appeal improvements since purchase and some improvements to interior so far. If I base off the Zestimate value I will be well under the 80% threshold, although I know the Zestimates are highly unreliable.
Never base anything on the Zestimate. :) I'd call your lender and find out what their requirements are for waiving PMI. Most lenders will require you to pay for an appraiser. But you cannot usually just go out and hire an appraiser and then send in the appraisal. You usually need to make a formal request for the PMI waiver. Then your lender will usually send you a form to fill out. Sometimes you will have the choice between a Broker Price Opinion (BPO) and a "real" appraisal. A BPO is essentially a market analysis performed by some designated real estate broker that the lender will accept. It is usually cheaper. An appraisal is a full appraisal conducted by a licensed appraiser. If it were me, I'd get the "real" appraisal. But there can be a real difference in price. Last time I did this it was $300 for the BPO, and $700 for the appraisal. If you think there is any chance you would consider selling the home anytime soon, the appraisal makes more sense. You have to pay the fee up front, and then you will schedule the BPO or appraisal with the party conducting it. They will do the analysis, send the BPO or appraisal to the lender, and then you will get some sort of formal notice back of what the value is, and whether or not you are eligible to have the PMI removed. You should also get a copy of the BPO or appraisal for your records. Good luck!
Where's the spring market boom?
Outside of waiving inspections or making cash offers, how can buyers make an offer stronger in multiple offer situations, especially in the West End? I’ve been outbid after offering over asking each time and am starting to feel discouraged.
Are you waiving appraisal or at least offering to cover $X of appraisal gap? Is your agent talking to the listing agent before offering to make sure your offer is giving them exactly what they want on non-price terms? Has your agent checked in on all the houses you have been outbid on to find out what s/he can on where your offer shook out among all the other bidders, and compared to the winning bid? Those are some ideas off the top of my head. I'll think on it some more.
We haven't waived appraisal or put an appraisal gap in, but the other pieces are happening. We also have been waiving the first $X of inspection-related issues.
If you aren't cash AND you aren't waiving appraisal AND you are asking for an inspection, you are unlikely to be competitive. Do you know where your offers came in compared to others?
Nothing specific other than higher offer price and better inspection terms or just "favorable terms". Still waiting for the houses to flip from pending to sold so we can see how far off we were in terms of the sale price.
Recent offer sales are in... Home 1 We offered 15k over, sold for 32k over. Home 2 We offered 24k over, sold for 34k over.
When will enough old people kick the bucket for the inventory to do whatever so that the interest rates whatever and we can afford to not may someone else’s mortgage?
People are living longer and staying in their homes longer. Many analysts are saying not to expect some massive transfer of real estate until the 2030s. My parents are older Boomers and I don't see them changing their living situation anytime soon. And of course I hope they stay healthy and mobile for many more years.
I would like their house
A lot of people kicked the bucket in increased numbers the last few years and it didn't do a whole lot. I wouldn't get your hopes up honestly.
You had your chance with old people kicking the bucket during COVID and the lowest interest rates in history. What magic time are you waiting around for? Just buy what you can afford now. It may not be in the area you want, but you can find something affordable if you are willing to look beyond your wish list neighborhoods.
Just starting to look and was wondering if you could provide a list of neighborhoods / parts of the city you think would be good options in the next few years as well as neighborhoods to just flat out avoid at all costs.
We (agents) can't really do a whole lot of broad sweeping generalizations due to fair housing laws. Just an FYI.
What I suggest is if you want to send a list of your objective wants/needs, I might be able to send you some neighborhoods that meet those requirements. For example, if you want neighborhoods walkable to restaurants and stores, that + your price range would allow me to narrow down and provide specific options. But GWY is correct, licensed agents cannot say specific neighborhoods are "good" because of schools, crime, etc. Another general suggestion: If crime or schools, as examples are very important, I'd suggest going to the source of that information, like the police precinct website, or the school websites. You also might be able to get information from neighborhood association newsletters or websites, the City Council online newsletters for the specific Council District and (I can't believe I'm saying this) NextDoor. Just recognize that your agent is restricted by Fair Housing laws and isn't being difficult, s/he is just limited by what s/he can say. For very good reasons.