The Real Estate Purchase Score - The Home Buyer's Score
A score for the real estate buyer - not for the bank. A mathematical analysis built on the same idea of credit scoring, but involves integration of macro-economic indicators as well as the buyer's personal economic details, along with transactional data.
Up until now, only banks have used a similar tool to measure their risk - the credit score. The patent pending system and proprietary calculus provides a tool for buyers to easily ascertain their risk concerning a proposed purchase. The results of the analysis is a score between 0 and 100, with a supporting and detailed report.
This is the first application of scoring real estate purchase risk on the buyer's side, which provides a fully objective analysis, integrating the financial variables of the purchaser, transactional details of the purchase, target property details, and numerous macro economic indicators.
The inventor and developer of this program, Steve Manion, has been in the real estate industry since 1984, attaining his Broker's license in 1986, and has successfully managed hundreds of millions of dollars in real estate sales and loan volume. He later developed methodologies to successfully manage risk in the financial markets and taught traders worldwide how to profit by avoiding risk.
Starting in 2006 through 2007, Steve strongly advised all his clients, when at all possible to completely divest themselves of all equity holdings. At a time when millions of Americans kept buying homes, apparently not aware of the serious contextual risks at the time, Steve was doing the exact opposite and advising his clients accordingly.
In the aftermath of the collapse, Steve took an interest in helping beleagured homeowners, and became a sought after consultant for law firms to assist them with mortgage litigation as an expert analyst.
It was during this time, Steve handled in excess of 2000 cases nationwide, speaking directly with hundreds of homeowners with very sad tales to tell. Steve purposely no longer brokered real estate transactions starting 2003-2007 because of what he viewed as a broad range of systemic risks, the risks that, unfortunately, caught up with millions of homeowners across America.
Upon interviewing so many clients, Steve noted a similar theme - no buyer was afforded an expert risk analysis of the (at the time) proposed real estate transaction. In every case, they depended on the advice of sales agents, and/or relied on a bank's loan approval, mistakenly believeing that meant the purchase was a god risk for them, when all it meant was the bank believed it was a good risk for the bank.
It turns out that indeed it was a good risk for the banks, as they were all eventually bailed out. The losers were the millions of Americans who placed their signatures on all those promissory notes. As Steve discovered by assisting on thousands of mortgage litigation cases, the banks and courts showed no mercy. Whatever argument the homeowner wanted to pitch in court that the risk should be laid on the bank's shoulders and not theirs was met with a very cold reception.
Watching so many people struggling with foreclosures, bankruptcy, then the personal fallout of divorce, and in more than a few instances even suicide, Steve was reminded of an adage he first heard from his mother long ago "an ounce of prevention is worth a pound of cure".
This is why Steve developed the Real Estate Purchase Scoring System. It is a tool that takes all the relevant imputs from the buyer, and correlates it with a wide range of economic data and indicators, mathematically analyzing it all built on a calculus that Steve developed over 30 years as a professional expert in the field, so the buyer can, for the first time, get a truly disinterested, objective, third party analysis of what they are proposing to do.
The result is a Real Estate Purchase Score. It is just as useful and complex in terms of the underlying math as a Credit Score, but its purpose is entirely different. Whereas a bank will rarely lend where the borrower has a low credit score because of the perceived risk of loss inherent in the score, a borrower-buyer won't have any idea of what the level of risk they are taking.
It is very possible that a bank will give a loan, and thereby enable a buyer to purchase the home, where the level of forward equity, income and foreclosure risk is very high to the buyer. But until now, the buyer would not know that, because there was not a tool they could employ to measure their risk.
Millions of buyers in 2005-2007 assumed they were not at risk, but were obviously blind to it because they obviously missed something. The Real Estate Purchase Scoring System is designed to bring every facet that might have an impact on the buyer going forward to their attention before they commit.
A Credit Score will always seem to have greater utility because that is a score for a borrower to get money. But the Real Estate Purchase Score is far more valuable, because the cost of that borrowed money often turns out to be far greater than its nominal value.
A second look at a real estate deal to reshape the variables to reduce the risk, or to walk away from it altogether can be priceless. And there are millions of Americans that wished they had such information up front, as it might have saved them the trouble they are in today.
The cost to obtain the Real Estate Purchase score is free. To obtain the score, you can visit the Real Estate Deal Advisor website.
Page Updated Last on: May 23, 2015