RealtyStore blogs

Things to Avoid After Applying for a Mortgage

jefe4realestate@gmail.com — Tue, 17 Sep 2019 15:00:54 +0000

Congratulations! You’ve found a home to buy and have applied for a mortgage! You’re undoubtedly excited about the opportunity to decorate your new home, but before you make any large purchases, move your money around, or make any big-time life changes, consult your loan officer – someone who will be able to tell you how your decisions will impact your home loan.

Below is a list of Things You Shouldn’t Do After Applying for a Mortgage. Some may seem obvious, but some may not.

1. Don’t Change Jobs or the Way You Are Paid at Your Job. Your loan officer must be able to track the source and amount of your annual income. If possible, you’ll want to avoid changing from salary to commission or becoming self-employed during this time as well.

2. Don’t Deposit Cash into Your Bank Accounts. Lenders need to source your money, and cash is not really traceable. Before you deposit any amount of cash into your accounts, discuss the proper way to document your transactions with your loan officer.

3. Don’t Make Any Large Purchases Like a New Car or Furniture for Your New Home. New debt comes with it, including new monthly obligations. New obligations create new qualifications. People with new debt have higher debt to income ratios…higher ratios make for riskier loans…and sometimes qualified borrowers no longer qualify.

4. Don’t Co-Sign Other Loans for Anyone. When you co-sign, you are obligated. As we mentioned, with that obligation comes higher ratios as well. Even if you swear you will not be the one making the payments, your lender will have to count the payments against you.

5. Don’t Change Bank Accounts. Remember, lenders need to source and track assets. That task is significantly easier when there is consistency among your accounts. Before you even transfer any money, talk to your loan officer.

6. Don’t Apply for New Credit. It doesn’t matter whether it’s a new credit card or a new car. When you have your credit report run by organizations in multiple financial channels (mortgage, credit card, auto, etc.), your FICO® score will be affected. Lower credit scores can determine your interest rate and maybe even your eligibility for approval.

7. Don’t Close Any Credit Accounts. Many clients erroneously believe that having less available credit makes them less risky and more likely to be approved. Wrong. A major component of your score is your length and depth of credit history (as opposed to just your payment history) and your total usage of credit as a percentage of available credit. Closing accounts has a negative impact on both of those determinants in your score.

Bottom Line
Any blip in income, assets, or credit should be reviewed and executed in a way that ensures your home loan can still be approved. The best advice is to fully disclose and discuss your plans with your loan officer before you do anything financial in nature. They are there to guide you through the process.

Your Realtor for Life!
Jeff Davenport
702-423-0777

Fix and Flip your own house with my Seller Program!

lisa@theawesomeagents.com — Mon, 16 Sep 2019 03:41:10 +0000

HOME SELLERS: Ready to sell your house? Get the FULL PRICE that you deserve with our professional remodeling and staging services. Our experienced team can repair and update your house with no money down in as little as 7 days. This is the best and fastest way to sell at the top of the market. With this exclusive service we have saved our clients tens of thousands of dollars. If you don't choose to list your home for sale with us, then we both lose money. NO OUT OF POCKET COSTS! How does that work? It's simple. We have connections to awesome contractors and sub-contractors in the real estate construction world that will provide an accurate estimate of repairs or upgrades needed along with a time frame for completion of the work. After all parties agree, then the professional crew is scheduled so work can begin. Once the house is under contract with sale pending. Our arrangement allows escrow to hold payment until the sale transaction is complete, then the contractor and agent are paid through the sale proceeds. NO MONEY DOWN! Our contractor and the real estate agent will take the risk to carry the costs until the house is sold. We only get paid when the property is sold -- we make money when you make money. This program is very similar to what an investor does when they buy a fixer upper, but in this case, you get to reap the benefits of selling at the top of the market instead of giving that money to an investor. Are you ready to get the full price you deserve?

Free First Payment When You Buy A House With Me!

lisa@theawesomeagents.com — Sun, 15 Sep 2019 20:11:02 +0000

Attention Buyers: I will pay your 1st mortgage payment when you buy a house with me. It's true! The promotion is called Free First Payment, up to $1500. To claim your Free First Payment now to to FreeFirstPayment.com or call me, Lisa Ghigo at (602)616-9103. This special offer may be combined with other offers but some restrictions may apply. This promotion is offered by the team at HomeSmart The Awesome Agents, of which I am the Team Leader.

5 Reasons to Hire a Real Estate Professional

ElizabethClark@RuhlHomes.com — Wed, 11 Sep 2019 12:34:17 +0000

5 Reasons to Hire a Real Estate Professional

1. Contracts - They help with all disclosures and contracts necessary in today’s heavily regulated environment.

2. Experience - They are well-educated in and experienced with the entire sales process.

3. Negotiations - They act as a “buffer” in negotiations for all parties throughout the entire transaction.

4. Pricing - They help you understand today’s real estate values when setting the price of a listing or making an offer to purchase.

5. Understanding of Current Market Conditions - They simply and effectively explain today’s real estate headlines and decipher what they mean to you.

Buying a Home: Do You Know the Lingo?

ElizabethClark@RuhlHomes.com — Tue, 10 Sep 2019 19:17:19 +0000

To confidently point you in the right direction, here is a list of some of the most common terms used in the home-buying process.

Appraisal – A professional analysis used to estimate the value of the home. A necessary step in validating the home’s worth to you and your lender to secure financing.

Closing Costs – The costs to complete the real estate transaction. Paid at closing, they include: points, taxes, title insurance, financing costs, and items that must be prepaid or escrowed. Ask your lender for a complete list of closing cost items.

Credit Score – A number ranging from 300-850 that is based on an analysis of your credit history. Helps lenders determine the likelihood that you’ll repay future debts.

Down Payment – Down payments are typically 3-20% of the purchase price of the home. Some 0% down programs are also available. Ask your lender for more information.

Mortgage Rate – The interest rate you pay to borrow money to buy your home. The lower the rate, the better.

Pre-Approval Letter – A letter from a lender indicating that you qualify for a mortgage of a specific amount.

Real Estate Professional – An individual who provides services in buying and selling homes. Real estate professionals are there to help you through the confusing paperwork, find your dream home, negotiate any of the details that come up, and to help you know exactly what’s going on in the housing market.

The best way to ensure your home-buying process is a confident one is to find a real estate pro who will guide you through every aspect of the transaction with ‘the heart of a teacher’, putting your family’s needs first.

~Freddie Mac – My Home Section

4 Reasons to Buy a Home This Fall

ElizabethClark@RuhlHomes.com — Tue, 10 Sep 2019 19:13:44 +0000

Below are four great reasons to consider buying a home today instead of waiting.

1. Prices Will Continue to Rise CoreLogic’s latest Home Price Index reports that home prices have appreciated by 3.4% over the last 12 months. The same report predicts that prices will continue to increase at a rate of 5.2% over the next year. Home values will continue to appreciate. Waiting may not make sense any longer.

2. Mortgage Interest Rates Are Projected to Increase Freddie Mac’s Primary Mortgage Market Survey shows interest rates for a 30-year fixed rate mortgage are around 3.6%. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting that rates will increase by this time next year. An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will likely increase if a mortgage is necessary to buy your next home.

3. Either Way, You Are Paying a Mortgage Some renters have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage - either yours or that of your landlord. As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity. Are you ready to put your housing cost to work for you?

4. It’s Time to Move on with Your Life The cost of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both will be on the rise. But what if they weren’t? Would you wait? Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.

14 Deep Cleaning Tricks for New Homeowners

LauraGibbs@kw.com — Tue, 10 Sep 2019 17:22:32 +0000

If you’ve never owned a house before, then it’s entirely possible that you’ve never deep-cleaned a house. (Hey, no shame in that game.) But when the house is yours, the desire to see it as clean and sparkling as it can possibly be is strong — and you might have no idea where to start or how to go about getting your clean on.

Don’t panic! Take a deep breath and remind yourself that nobody knows how to do everything. Then follow these tips for new homeowners that will outline exactly how to go about deep-cleaning any home … and how to maintain it so that next time you don’t feel so overwhelmed.

MAKE A LIST, THEN DIVIDE AND CONQUER

The most overwhelming part of deep-cleaning is undeniably the moment when you start to realize just how much there is to do. Before you even let yourself go there, stop and make a list of everything you need to do.

Begin by listing all the rooms in your house. Include a space for your garage, the basement or the attic (if you have one) and for outdoor living spaces like porches, balconies or decks. You might even add a general “outdoor” category for tackling additional projects.

When you have your house more or less divided by space, start listing what needs to be done in each of those spaces. Before you know it, you’ll have a comprehensive list of absolutely everything that you need to do to get your house as clean as it’s ever been.

After you’ve got your master list, start dividing it up. You can assign different rooms to other household members who are helping with the massive clean, or divide it by day of the week so that you’re spacing out your deep cleaning in a way that doesn’t overwhelm you.

START AT THE TOP

Gravity can be your friend or your enemy when you’re cleaning a house. You can avoid a lot of heartache by understanding this truth and beginning your work at the top of each room, moving your way down. That way any dust you’re knocking loose from high shelves or light fixtures will land on a floor that you haven’t yet cleaned instead of a floor you just finished mopping.

It might help to organize your list from literal top to bottom before you even walk into the room. That way you can easily run down the list in order without messing up an area you just cleaned.

DECLUTTER, DECLUTTER, DECLUTTER

When you have a lot of stuff — books, clothes, sports equipment, pots and pans, whatever — then cleaning around all of it becomes a challenge. The first step in any room should be a sweep to assess what you use and what you haven’t touched in a year or more. Anything that falls into the latter category should be considered for disposal — give it to a friend or donate it if you like, but if you haven’t used it or worn it in that long, then maybe you don’t really need it.

It may feel painful in the moment to part from your things, but keeping your house looking neat and clean will be so much easier if you can power through the hard part and let go. Get serious about decluttering now so that your home will look cleaner and more presentable forever.

CLEAN YOUR SCREENS AND WINDOWS

Let’s be honest: Cleaning screens and windows can be a real pain, which is probably why it doesn’t get done very often. But it makes a huge difference in the quality of light that pours through those windows, and it’s well worth addressing at least once a year.

Remove screens and wipe them down and dry them, and make sure you’re washing both the inside and outside of the window. Use a microfiber cloth to wipe the windows to minimize streaks — it also helps to wash windows on an overcast day, as bright sunlight can cause the cleaner to dry too quickly, leaving streaks.

While you’re washing the windows, make sure you’re paying some attention to the windowsills both inside and outside the house. These areas can be a magnet for dead flies, dirt or pollen, or other gross or gritty unwanted guests, and you’ll thank yourself for seeing and eliminating them in the moment.

DON’T FORGET THE LIGHT FIXTURES

Windows aren’t the only factors influencing the quality of light in your house. Your light fixtures might be dusty or dirty and you wouldn’t even notice because they’re so far above your head. Make sure that you’re removing and cleaning light fixtures in each room, drying them thoroughly before you replace them.

CLEAN OUT YOUR DRYER VENT

Despite the best effort of lint traps in dryers everywhere, quite a bit of lint still gets into many dryer vents. It’s not only a potential allergen, but also a possible fire hazard, so add “clean out the dryer vents” to any seasonal cleaning lists and make sure you’re paying attention to it at least semi-regularly.

You can find fixtures for your vacuum cleaner online that are supposed to help with this task, and make sure you give the outside vent a good look and clean-out while you’re tackling this job.

LOVE ON YOUR FLOORS

Different types of flooring are going to require different methods of care, and you may have more than one in your house. Steam-clean your carpeting and your tile floors, and also consider re-sealing tile floors — they’ve probably been through a lot, and it never hurts to give them a little sprucing up. Likewise, wood floors can usually use a decent waxing. Whatever your floors need, consider providing it to them on at least an annual basis; after all, they see wear and tear every day but usually don’t get any tender loving care.

ORGANIZE, ORGANIZE, ORGANIZE

If you just moved in, then the odds are good that you’ve still got a box or two packed up and stashed away in a closet. Deep cleaning means deep organization, so if the stray-box theory sounds a lot like you, then it’s time to finally finish the job.

Even if you’ve already unpacked absolutely everything, this is still a good time for you to figure out how you’re going to establish a place for everything and everything in its place. Once you have an organizational system that works, be it for your bookshelves or your toolshed, then all you have to do to keep everything spiffy is follow that system.

DON’T FORGET THE GARAGE, BASEMENT OR ATTIC

Out of sight can sometimes be out of mind, and it’s easy to dismiss areas like garages, basements and attics when you’re deep-cleaning … but don’t make that mistake. Messes have a tendency spread and multiply, so if your house is pristine but your garage is a mess, don’t be surprised when items from the garage disaster start manifesting suddenly in your perfectly clean home.

If you didn’t add the garage, basement or attic to your list of rooms to tackle, do it, and give yourself the same systems and tools in those areas that you’re using in the main house. It’ll keep everything under better control — promise.

VINEGAR-STEAM YOUR MICROWAVE

Microwaves can be beasts to clean well, but as long as you don’t mind the smell of vinegar lingering for a few minutes, there’s an easy way to get your microwave spotless. Put a cup of white vinegar and a cup of water in a microwave-safe container, crank up the power and nuke it for five to ten minutes. Then wipe it down and marvel at how easily all that crusted-on gunk comes off with a little help from chemistry.

TACKLE THE KITCHEN APPLIANCES

If your microwave is crusty, then odds are good that your other kitchen appliances could also use some attention. The oven, the stove and the refrigerator are usually the dirtiest appliances in the house, so make sure you’re putting them on your rotating “to clean” list — and stick to it.

Some newer refrigerators include easy-to-remove shelves and door inserts that you can clean in the dishwasher. If you’re due for a fridge upgrade soon, then look for a model that has some of those cleaning-friendly features.

PLANT PERENNIALS

Now that the inside of the house is spanking clean, it’s time to consider the outside. Apart from basics like mowing the lawn and weeding, you might also consider planting some perennials — plants that come back year after year, so you don’t need to keep replacing them.

Ask the experts at your local nursery about the perennials that grow well in your area and how much care they need. A couple of well-placed rose bushes or a lavender hedge can make your curb appeal pop like never before.

POWER WASH

While you’re sprucing up the outside, rent or borrow (or buy) a power washer and tackle the house itself. You will be amazed how much dust and dirt accrues on the outside of your house, the deck and porch, and other areas — washing it off can make your house look like it’s got a brand-new paint job, plus you’ll be eliminating any cobwebs in the bargain.

MAKE IT A HABIT

If you only do all of these things to your house once a year, then it’s not going to stay clean for very long. Keep your list of rooms and think about your daily and weekly schedule, then try to squeeze in some deep-cleaning work every now and again. You’ll find that your entire house stays cleaner for longer, and any special-event deep cleaning that you might have to do will be much easier when you have a plan for upkeep.

19 Home Renovation Mistakes to Avoid

LauraGibbs@kw.com — Tue, 10 Sep 2019 17:20:16 +0000

One of the very best things about owning your own home is that you can change it to fit yourself and your lifestyle. Home renovations are more popular than ever before, and there are countless shows, blogs, magazines and other resources where you can indulge your dreams of a perfect home — if you’re willing to jump into renovating.

But a home renovation project isn’t a journey for the faint of heart. It’s expensive and time-consuming, and there’s a lot that can go wrong before the finished product is, well, finished. To ensure that your home renovation process goes as smoothly as possible, make sure you don’t make any of the following home renovation mistakes.

FORGETTING ABOUT PERMITS

This might not be something you realize you forgot about until it’s time to sell the house — which is basically the worst possible time to discover that your house needs a permit for something and doesn’t have one. So when you’re sure of what form and shape you want your home renovation to take, do yourself a favor and head to the permitting department at your city or county office and ask them what you’ll need.

In general, you probably don’t need a permit to do things like paint walls, replace cabinetry, repaving your driveway or other minor updates. But if you’re going to be changing a room’s purpose or knocking down a wall, then you definitely want to check on the permits that should be filed to make a change like that.

SETTING AN UNREALISTIC TIMELINE

You’ve no doubt heard horror stories from fellow homeowners about the amount of time it takes to actually finish a renovation. And you might think that those people probably just had bad luck — that won’t happen to you!

Here’s the thing: Everybody thinks that their home renovation is going to be completed on schedule (and on budget, too, but more on that later). Even professional house-flippers who have worked on dozens of renovations can get it wrong. So your timeline needs to reflect the realistic estimates that you’re hearing from contractors, and it also needs to include a little bit of wiggle room in case something outside your control pushes it back.

CREATING AN UNREALISTIC BUDGET

After watching a few different tanned and glossy couples complete a specific renovation for a certain amount of money, you might feel perfectly comfortable deciding that you can designate that certain amount of money for that specific renovation, too. But like your timeline, your budget needs a little bit of room to stretch. Between material upgrades, hiring extra labor, emergencies or any other budget-breakers, at some point during the renovation, you’ll be glad you built in some budgetary breathing room.

BUYING THE CHEAPEST MATERIALS

It’s really tempting to try to discount your way through a home renovation. And one of the easiest ways to do that is by choosing the cheapest materials — but resist! The adage “you get what you pay for” is as true for home renovation materials as anywhere else, and if you’re buying flooring, windows or doors that you’ll have to replace in five years instead of twenty, then you’re not actually saving yourself any money because you’re going to have to do this all again sooner rather than later.

Talk to your contractor (or contractors) about the options open to you, and make sure you understand what sacrifices you might be making in quality or longevity for price.

SKIPPING PREP WORK

If you’ve ever painted a room, then you already understand how critical prep work can be. It’s a lot easier to thoroughly tape off the area you’re going to paint, right? Well, that truism holds for home renovation in general, so make sure you’re doing yourself favors by smoothing the road for yourself.

Cover furniture with drop cloths, for example, or make sure that you’ve got a food prep area set up outside the kitchen that you can use while it’s having work done. The small steps you take to protect your belongings and make necessities more accessible will be well worth the time they take in the long run.

TAKING INACCURATE MEASUREMENTS

If there’s one home renovation mistake that you should try to avoid at all costs, no matter what, this is it. “Measure twice, cut once,” is sound advice, but when it comes to your money and your house, what’s the harm in measuring ten times before you cut?

Imagine realizing that your new cabinets don’t leave enough room for your fridge, for example, or that you didn’t order enough flooring, or that the bookshelves you’re installing are too tall for the office. All of those catastrophes can be avoided if you measure carefully and accurately, so whatever you do, don’t breeze through this step.

STARTING WITHOUT A PLAN

This might not be as critical for smaller projects, but if you’re renovating an entire room or an entire house, then you absolutely need a game plan for exactly what you’re doing and when. Planning also includes your own time, so make a plan for how much time you can devote to the home renovation, and avoid starting projects when you know you aren’t going to have time to finish them.

You’re really going to have to know yourself and your tendencies in order to plan for them and around them. If you’re the kind of person who loves to start projects and has trouble finishing them, then you might want to call in assistance in the form of a friend or loved one to keep you accountable. Or perhaps this is a project you need to outsource. Whatever the case, make a plan that makes sense for you and your lifestyle today.

FAILING TO ANTICIPATE A MESS

A home renovation is usually a big, messy project. There’s likely to be dust everywhere at the very least, and some of your rooms might not be usable while the renovation is taking place. That’s not always a big deal in the case of a closet or bedroom, but when you’re redoing a bathroom or kitchen, then renovating a house where you currently live can get quite a bit trickier.

Be prepared for a big mess, and think especially hard about how it will affect you if you’re living in the house while it’s being renovated. Use plastic sheeting and drop cloths to keep as much of the mess as you can at bay, and realize that any clothes you’re wearing into the construction zone might need a lot of wash cycles before they return to normal, so dress accordingly.

FOLLOWING TRENDS

There’s nothing wrong with admiring a super-trendy house — but nothing dates a house quite like a trend. Remember, shag carpeting and avocado-green kitchen appliances were once the height of trendiness.

If you absolutely love one of the kitchen or bathroom trends that’s been making the rounds and you really want to try it, consider asking your contractor about a modern twist or spin on a classic look that might satiate your desire for the trend without obviously dating the house and the renovation.

USING THE WRONG TOOLS

The beauty of construction tools is that each tool was specifically designed to do one job, and to do it very well. But when you don’t use those tools every day — or if you’re missing a tool that you should have — then it’s pretty tempting to use the wrong tools for a project that you’re trying to finish on time.

But the danger in using the wrong tools isn’t just in potentially damaging your materials or the tool, which can definitely happen; you could also hurt yourself pretty badly trying to leverage a tool in a way it wasn’t designed.

SELECTING THE WRONG PAINT

Some people just look at paint color and think they’re done, but paint comes in so many different finishes and price ranges because it’s meant to be used in different ways. The paint typically used for ceilings is usually less reflective and less sturdy than the paint typically used for walls, so make sure that you’re considering the paint’s purpose as well as its color before you buy.

CHOOSING MATERIALS THAT AREN’T SUSTAINABLE

Even if you aren’t particularly environmentally conscious, there’s a lot of merit in considering “green” building materials and upgrades when you’re renovating. For a start, they can be very appealing to buyers when the time does come to sell — but they’re also often money-savers for you as the homeowner. Low-flow toilets or showerheads, solar panels and other upgrades might be worth adding to your house whenever you renovate so that you can save some money down the road.

IGNORING ADDITIONAL STORAGE OPPORTUNITIES

Almost every house has some odd nooks and crannies that could use a little attention, but they’re often ignored during a home renovation. So when you’re working on your renovation, consider storage and think about creative ways to use it.

When you’re redoing your kitchen cabinets, consider adding a shelved lazy susan to the big, deep corner cabinet so that you can easily access everything you store. Drawer dividers, shelves and bins can also be used to make storing your stuff feel easier and more natural than ever.

NEGLECTING SAFETY MEASURES

Goggles and hard-toed shoes might not feel very sexy, but if splinters go flying or you drop a hammer, you’ll be pretty happy you indulged in them regardless. Make sure you’re following best practices for safety for any renovations you’re helping with — and if you’re hiring out all the work, ask the contractors you interview about their safety practices to make sure everything is in order.

FAILING TO SECURE SUBCONTRACTORS OR BACKUP

Speaking of contractors: It’s commendable if you want to do your entire renovation yourself, but at the very least, make sure you have a backup plan for what you’ll do if something unexpected happens and you can’t finish it yourself.

It’s also not so commendable to mess up your house because you didn’t correctly gauge the level of expertise needed to finish a job … so make sure that you’re actually qualified to complete any renovations that you tackle.

HIRING THE FIRST (OR CHEAPEST) CONTRACTORS YOU TALK TO

Finding and hiring a contractor to work on a home renovation can be incredibly stressful; it’s a huge trust, and you may be tempted to make an “easy” decision by hiring the first person who calls you back, or just going with the cheapest option.

Resist! This is your home, a huge financial investment, and you should really make sure that you can rely on the people you’re hiring to help you realize your dream.

BEING AFRAID TO THINK BIG

Sometimes homeowners just don’t know what’s possible in a renovation, and sometimes they’re worried that their plans might be too complicated. But you might be surprised at what a skilled contractor can accomplish — you can change the entire layout of a bathroom, for example. So if you think you might want it, but you’re not sure it’s possible, just ask! You might be pleasantly surprised.

OVERBUILDING

Overbuilding is the mistake at the opposite end of the spectrum of buying the cheapest materials possible. A room can start to look and feel overwhelming if you don’t consider balance when you’re making your plans, so be wary of adding features … upon features … upon features as you renovate, especially in places like the kitchen and bathroom. It’s easy to get carried away, and the results probably will not have the cumulative impact that you hoped for.

CHANGING YOUR MIND

Before you take the first step on your renovation journey, make sure that your mind is set in stone and that you have no intention whatsoever of changing it. Because if you don’t, you’ll be spiraling well beyond the realm of “reasonable and realistic” when it comes to both your budget and your timeline. It’ll stress out your contractors, and the end result is almost never worth it.

Believe it or not, this also applies to changing your mind to accommodate more affordable options when you’re renovating. There will be times when you need to cut corners, but make sure that you’re really okay with cutting this specific corner when that time comes so that you don’t regret eliminating something that you really wish you’d kept.

If you can avoid these mistakes, your renovation will undoubtedly make your house shine. Good luck!

The Role Access Plays in Getting Your House Sold

jefe4realestate@gmail.com — Tue, 10 Sep 2019 15:29:11 +0000

So, you’ve decided to sell your house. You’ve hired a real estate professional to help you with the entire process and you’ve been asked what level of access you want to provide to potential buyers.

There are four elements to a quality listing. At the top of the list is Access, followed by Condition, Financing, and Price. There are many levels of access you can provide to your agent to be able to show your home.

Here are five levels of access you can provide to a buyer, each with a brief description:

Lockbox on the Door – This allows buyers the ability to see the home as soon as they are aware of the listing, or at their convenience.
Providing a Key to the Home – Although the buyer’s agent may need to stop by an office to pick up the key, there is little delay in being able to show the home.
Open Access with a Phone Call – The seller allows showing with just a phone call’s notice.
By Appointment Only – Example: 48-hour notice. Many buyers who are relocating for a new career or promotion start working in that area prior to purchasing their home. They often like to take advantage of free time during business hours (such as their lunch break) to view potential homes. Because of this, they may not be able to plan their availability far in advance or may be unable to wait 48 hours to see the house.
Limited Access – Example: the home is only available for a couple of hours a day. This is the most difficult way to be able to show your house to potential buyers.
In a competitive marketplace, access can make or break your ability to get the price you are looking for, or even sell your house at all.

Your Realtor for Life!
Jeff Davenport
702-423-0777

iBuyers: What Is the “Cost of Convenience” When Selling Your Home?

brookefisher@kw.com — Mon, 09 Sep 2019 21:33:08 +0000

When thinking about selling their house, homeowners have many options. A relatively new option is using an “iBuyer.” What is an iBuyer?

According to Jovio, the definition is:

“A company or investor that uses Automated Valuation Models (AVMs) to make instant offers on homes. It allows sellers to close on a property quickly. Once sold, the company then turns around and resells the home for a profit.”

Today, there are many iBuyer companies such as OfferPad, Zillow Offers, Knock, Opendoor, and Perch. Even some more traditional companies offer the same or similar services (ex. Keller Williams, Redfin, Realogy). Ivy Zelman reported in her ‘Z’ Report that some traditional brokers are partnering with some of the larger iBuyers too:

“Keller Williams announced a partnership with Offerpad, aligning the largest franchise-based brokerage brand in the U.S. with the five-year-old iBuyer. The move follows Realogy’s partnership with Home Partners of America last year as an established brokerage player more directly providing an iBuyer alternative…

Likewise, in early July, Redfin and Opendoor announced a partnership, starting in Phoenix and Atlanta – aligning interests of the 13-year old, tech-enabled and value-focused brokerage with the largest and longest-standing iBuyer. Outside of these larger scale alliances, Zillow’s strategy has been to work with local brokerages as partners on a market-by-market basis.”

Does it make sense to sell your home to an iBuyer?
It depends. Collateral Analytics recently released a study which revealed the advantages and disadvantages of using an iBuyer. According to the study, if the homeowner is looking for the convenience of a quick sale with less uncertainty, using an iBuyer may make sense.

“iBuyers offer quicker closings for sellers who would like to avoid the uncertainty of knowing when and if their home will sell. For motivated sellers who want a predictable sale date and need to move, perhaps a long distance from the current location, there is no question that iBuyers have provided a welcome alternative to traditional brokerage.”

The study, however, also showed there is a cost for that convenience. Collateral Analytics explained:

“Traditional brokers fees generally range from 5% to 7% of the sales price…In addition to this cost, buyers typically pay some closing costs including lender related charges in the range of 1% to 3%.”

In contrast:

“iBuyers charge sellers a ‘convenience fee’ of 6% to 9.5%, some also charge the seller for fees typically paid by buyers at closing adding another 1% or more. Most iBuyers will inspect the home, assess a generous home repair allowance and negotiate a (an additional) credit to handle such repairs…Overall the total direct costs, ignoring repair credits, will run 7% to 10% for an iBuyer, versus the typical 5% to 9% combined seller and buyer costs with a traditional broker. Yet, that is not the end of the story or comparison.”

The study went on to explain how iBuyers need to charge even more because they have additional expenses beyond that of the traditional broker. They include:

Carrying costs involving significant amounts of capital – The iBuyer must pay the expenses of the house between the time they purchase it and the time they sell it to a new buyer.
Safeguarding the home risks – A home with an iBuyer ‘For Sale Sign’ alerts anyone passing that the house is vacant. The study suggests that these homes could become targets for vagrants and criminals.
Adverse selection risks – The study explains that since iBuyers use computer models to determine their offer, they may be unaware of certain challenges in the neighborhood that could adversely impact the value.
Potential home price declines – As the survey states:
“A downturn in home prices, not forecast by the iBuyer market analysts could be devastating as they ramp up their business platforms, particularly if the cost of capital increases. At the same time, downturns are precisely when the most sellers would want this option.”

Bottom Line
After taking a thorough look at the iBuyer platform, the study concludes that using an iBuyer is more expensive for the homeowner than the traditional brokerage model, but for some sellers, it may still make sense:

“These preliminary empirical results suggest that sellers are paying not just the difference in fees of 2% to 5% more than with traditional agencies, and a generous repair allowance, but another 3% to 5% or more to compensate the iBuyer for liquidity risks and carrying costs. In all, the typical cost to a seller appears to be in the range of 13% to 15% depending on the iBuyer vendor. For some sellers, needing to move or requiring quick extraction of equity, this is certainly worthwhile, but what percentage of the market will want this service remains to be seen.”