DABOs

The term DABO, which realtors will bandy about effortlessly, means Deposit Accepted By Owner. What is really means is that there is not only an accepted offer but that contracts have been written and the parties have gotten through attorney review. Attorney review in New Jersey last a minimum of three FULL business days and usually the attorneys extend it, typically it lasts 5-6 days. Once the contract is completed and agreed upon by both the seller and buyer and their attorneys, a second deposit will be required and will be held by the seller's attorney. The initial $1000 good faith deposit given at the time of the offer is usually held in the realtor's escrow account and later that money is sent to the seller's attorney. Most second deposits are expected to be sent by the buyer within ten days of the end of attorney review. So technically, when a property comes up DABO on our Multiple Listing Service, the second deposit has not been given in most cases. From a practical standpoint, DABO on the MLS means the contract is solid and the property is out of attorney review.

The serious lack of DABOs on the MLS right now is the greatest indication of how soft the current market is. Though a DABO listing does not give the informaton on what the agreed price was (it is confidential until the closing), a good realtor can generally guess based on number of days on the market about what price the property went for. DABOs are often the single best way to determine where the market prices are, realistically, right now. Appraisers need three sales from the last six months to comp a property and determine value, but DABOs, for the purpose of pricing and knowing what to pay as a buyer, are even more useful.

The Worth of a Good Mortgage Broker

Increasingly, a good mortgage representative is vital. Credit has tightened considerably in the last six months and especially in the last six-eight weeks. People with sterling credit scores and 20% down and a solid job history will have no problem getting a mortgage. Mortgage brokers and banks are generally giving better rates on fixed rate loans now than adjustables which are completely out of favor. Lenders no longer can afford to absorb the risk. If you do not having perfect credit or a large deposit, loans are still available at rates that in any time prior to the last few years would still be considered excellent rates. We have been spoiled with extremely low rates in the last few years, which has gotten us into the current economic downturn via interest only adjustables, 0% down financing, and the lender encouragement of the public to refinance their homes and take out second mortgages or home equity loans to do home repairs, pay off credit cards etc.

In any case, good loans are still available but adjustables and no verification loans are virtually extinct. There is a new market of FHA loans also for people with a low downpayment but you will need to check with a local mortgage broker to make sure that the Hoboken condo that you might want to purchase can qualify for FHA. It is my understanding that many Hoboken condos that did not conform in the past do qualify now. As with a lawyer, make sure you use a mortgage broker or bank that routinely does business in Hoboken. The mortgage company does not necessarily have to be located in Hoboken to do the job, just be familiar with the market here and the nature of condominium complexes in our town.