Central PA Real Estate Podcast with Dave Hooke

How to Hire a Marketing Assistant

Dave@hhande.com (Dave Hooke) — Wed, 13 Sep 2017 13:23:00 -0700

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Alex and Danny were both hired as minimum-wage marketing assistants, but they’ve leveraged their positions to set them up for future success. Here’s how.

We hadn’t had much success in the past hiring high-paid marketing assistants, so we decided that a new strategy would be necessary. Instead of hiring a high-paid expert, we would hire someone who would agree to work for minimum wage in exchange for the education and opportunities that we can provide here at Vyral. This process has yielded good results so far—just ask Alex and Danny.

They were both initially interested in the position because of the opportunity of a $50,000 + salary six months down the road. However, once they went through the interview process they realized it was a perfect fit.

We’ve created a culture here at Vyral that is all about improving and learning each day.

This was no accident. Our eight-step hiring process ensures that we only get the best and most motivated candidates. With all the steps we take to filter candidates, it’s inevitable.

Our interview process is a bit unorthodox, but ultimately rewarding. We first contact candidates via email and ask them to fill out a personal assessment, as well as answering five questions on video. After that, we set up a Skype meeting, then an in-person meeting, then an interview.

It’s a big deal when you make the wrong hire. That’s why we have a process in place to ensure we only get the best candidates. You should have one, too.

We’ve created a culture here at Vyral that is all about improving and learning each day. That’s why we’ve been able to attract such great talent.

Should I Have Real Estate in My Retirement?

Dave@hhande.com (Dave Hooke) — Tue, 6 Jun 2017 14:03:00 -0700

Should you invest in real estate as part of your retirement? Today I’ve listed some pros and cons to help you decide if this is right for you.

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Today I want to talk to you about investing in real estate as part of your retirement plan. I’m a little biased, because I have invested in real estate as part of my own retirement, but I’ll do my best to be objective. Here are some pros and cons of investing in real estate:

Cons

You have to have active knowledge about the industry. If you want to invest in real estate locally, you have to learn about the industry and understand its inner workings.
You have to actively manage the properties. This can be time consuming, because you will be actively managing maintenance calls, setting up showings, and running the properties. Unless you have a ton of capital, you’ll be doing all these things yourself.
You have to have a significant amount of capital. There are stories about ways to get creative and put little or no money down, but those are the exception, not the rule.

A good strategy is to buy a property at or around the birth of a child.

Pros

You’ll get a significantly higher return on your investment. This is assuming you’re in a decently appreciating market like south-central Pennsylvania and you’re holding the property for the long-term, not just short-term sales.
There are significant tax advantages to investing in real estate. It’s best to speak with an accountant about the details, but if you buy enough real estate, those tax advantages do add up over the years.
You can eliminate most of the risks involved in investing in real estate if you’ve taken the time to understand the industry and you’re investing in a market that remains moderately stable and isn’t as volatile as some of the other markets in our nation.This is especially true with long-term ownership and residential rental properties.

One of the strategies that I particularly love is buying a property at or around the time of the birth of a child. You can then pay it down and use tax-free refinance income or equity to pay for all or part of the child’s college education. You can then pay it back down and do the same thing to supplement your retirement income later down the road. You’re using the same property for a dual purpose, and it makes the investment valuable to you and your family.

I think that real estate investment is a great way to save for retirement alongside other investments like securities and other investment tools and is a great way to get you farther in reaching your retirement goals.

If you have any questions about real estate or anything else in the real estate market, please don’t hesitate to reach out. I’d be happy to help you.

What Are My 5 Incredible Tips for First-Time Home Sellers?

Dave@hhande.com (Dave Hooke) — Fri, 31 Mar 2017 09:33:00 -0700

Selling your home for the first time doesn’t need to be difficult or stressful. Here are five tips to ensure that your first home sale goes off without a hitch.

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Here are five incredible tips you can use as a first-time home seller to ensure a fast and lucrative home sale: 1. Hire your agent based on a written marketing plan. Any agent can come into your home and throw out a price that’s attractive. The question is whether they can get it for you or not. Make sure you ask your agent for a written marketing plan that you understand and ask them questions about their experience. Also, make sure they’re a good personality fit for you. We always counsel our sellers to interview two or three agents so they choose the one who’s the best fit. 2. Price your home accurately. That experienced agent you hired with a written marketing strategy should have a thorough, comparative market analysis (CMA) done so you can not only understand what price range they’re advising you on, but the why behind that price range. That’s critical to getting a buyer to offer the purchase price. Also, ask your agent to help guide you where you should position your home within that price range based on your goals and motivations—not theirs. 3. Ask your agent for a consultation to help you prepare your home for sale. This can include two things. The first is a walkthrough consultation with a list of items that are cost-effective ways to maximize your home value. The second thing they can do is advise you on staging your home. A staged home tends to sell faster and for more money.

Make sure your agent is a good fit for you overall.

4. Be flexible on your showings. There’s nothing worse than declining a showing from an out-of-town buyer who’s only in town for a day or two only to find out later that they pulled the trigger on a different home.

5. Insist on professional photography. More and more agents are electing to use professional photography, and it does cost money. But it’s more critical than ever to make sure your home has clear, clean, high-definition photos. It will make your home stand out, garner more showings, and sell for a greater amount of money.

If you have a question about the value of your home or want a consultation, please don’t hesitate to reach out to us. We’d be happy to take care of you!

The Truth About Current Down Payment Requirements

Dave@hhande.com (Dave Hooke) — Thu, 16 Mar 2017 12:56:00 -0700

What are the current down payment requirements for purchasing a home? Despite what you might think, you don’t actually need to put 20% down.

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What are the current down payment requirements for getting into a home? First of all, according to the National Association of Realtors, the majority of people in the United States think that you need 20% down to purchase a home. That is simply not true. To give you some perspective, the median down payment for first-time homebuyers has been 5% for decades. There are many programs available to buyers that only require 3% down, and there are some special loan programs that don’t require any money down. You can even get grant money for closing cost assistance to get into a home.

Ask a local mortgage provider to find the best option for you

Ultimately, you need to talk to a local mortgage provider to assess your financial needs and profile so they can recommend a custom mortgage solution. Now may be the right time for you to make your first or second home purchase.

If you need a list of local lenders or if you have any other questions, give me a call or send me an email. I would be happy to help you!

3 Reasons You Should Be Selling Your Home in 2017

Dave@hhande.com (Dave Hooke) — Mon, 27 Feb 2017 09:28:00 -0800

There are three reasons why you should consider selling your home this year.

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If you’ve been thinking about selling your home this year, you need to pull the trigger. Here are three reasons why. 1. Mortgage interest rates are still low. Although interest rates have been rising since October, the 30-year fixed home mortgage rate is still historically low. This means buyers still have plenty of buying power in the market right now.

2. Inventory is shrinking. In 2007, according to the National Association of Realtors, home inventory was just about 4 million homes for sale and in 2016, fewer than 2 million homes were for sale. Right now, home sellers have way less competition.

3. Home prices are rising. We have had 54 months of non-stop home appreciation. In fact, the median home price since November of 2015 has increased by 6.8%, which means right now is a great time to get the most money for your home.

2017 will be the best year to sell a home in the past nine years.

If you or anyone you know is looking to take advantage of this market and would like a free home value estimate, my team and I would be happy to give you all the information you need to make an informed decision on whether to sell your home or not.

As always, if you have any questions please feel free to give me a call or send me an email. I look forward to hearing from you!

3 Reasons Why You Can’t Trust a Zestimate

Dave@hhande.com (Dave Hooke) — Thu, 9 Feb 2017 13:26:00 -0800

Can you trust Zillow’s Zestimates to come up with the correct value for your home? Unfortunately, the answer is no, and there are three reasons why.

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A lot of people ask whether the home value they find on Zillow, also known as a Zestimate, is accurate. Can you really trust that Zestimate? Zestimates work almost the same way as a tax assessment: Zillow’s algorithm takes the sale prices of homes that are similar to yours and in the same area, then it compares that information to your property’s square footage in order to come up with an estimate on the value of your property. Unfortunately, the reality is that, although they can be accurate sometimes, Zestimates are often incorrect. On average, the Zestimate has a margin of error of about 20%.

Zestimates have a 20% margin of error.

There are three factors that impact the accuracy (or inaccuracy) of your Zestimate:

1. Your property’s location. If you live in a cookie-cutter subdivision that has a lot of like-kind houses and a high number of recent sales, then it’s highly likely that your Zestimate will be more reflective of the accurate value of your home. However, if your property is in a very unique area or if you have a rural property with a lot of unique features, then it’s less likely that the Zestimate will be accurate.

2. Your property’s condition. If you made a lot of recent updates, the homes around you are not similar, or if your home has unique features such as a finished basement, a Zestimate will probably not factor those features into its calculation.

3. Your property’s location in relation to recent sales. For example, you may live in that cookie-cutter subdivision, but if you live on the edge, then the algorithm will take properties outside of the subdivision into consideration when calculating your Zestimate. Those properties might just be a block away but if they are completely different than yours, that will definitely throw off your Zestimate. If you live in a subdivision where all the homes are bigger than yours or sit on a larger lot, then your Zestimate will also be incorrect.

Your Zestimate really depends on those three factors in your local real estate market.

If you would like a more customized and accurate home value estimate, give us a call. This spring, we are offering a free, no obligation, maximum home valuation. Our representatives will go through your home, give you a detailed estimate of value, and provide a list of suggestions that you can use to maximize your home’s value. In other words, we will give you a list of things that will get you a good return on investment and increase your overall sales price.

If you have any questions, please don’t hesitate to reach out to us. We would be happy to help you!

5 Sale-Killing Mistakes to Avoid in Your Listing Photos

Dave@hhande.com (Dave Hooke) — Tue, 24 Jan 2017 09:59:00 -0800

Listing photos are an important part of the home selling process. However, there are five sale-killing mistakes you need to avoid when taking listing photos.

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When you sell your home, the listings photos are an incredibly important part of getting prospective buyers into it. However, there are five sale-killing mistakes that you need to avoid when you take your listing photos: 1. No more corners. For some reason, sellers love to take pictures of the corners of different rooms in their home. Nothing is gained from buyers looking at the corners of a room; instead, photograph focal points in each room. 2. The grass is always greener. Photos of nature surrounding your home make sense if you are focusing on some kind of flora or fauna. However, a close-up on the bark of your tree or a patch in your lawn does not make sense. Take a broad picture of your home with nature behind it or highlight some specific aspect of your landscaping. 3. On the outside looking in. Don’t just take exterior photos of your home. If you do, the buyer will wonder what is wrong with the home. Make sure there are plenty of high definition photos of the interior of your home.

There aren’t many people who want to buy a haunted house.

4. A haunted look doesn’t help. If your photos make your home look menacing, make sure you redo them. Dark, grainy photos with unclear shadows can make your home look haunted. Pictures that you take on your phone won’t make the cut, either. Make sure you have quality, professional photos.

5. Let the sunshine in. It is a scientific fact that bright, well-lit homes sell faster and for more money. Give the public what they want and make sure your home is as bright as possible.

If you have any other questions about listing photos or the home selling process in general, just give me a call or send me an email. I would be happy to help you!

How Holiday Decor Can Amp Up Your Curb Appeal

Dave@hhande.com (Dave Hooke) — Wed, 14 Dec 2016 08:45:00 -0800

Whether you're selling your home or just want it to look great, you can use holiday decor to seriously boost your curb appeal. I have four ways to share with you today.

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Certain holiday decor can really amp us your home's curb appeal. Today, I wanted to give you a list of the top four ways to utilize it:

1. Highlight your home's architecture. Consider edging your home's roof, windows, or trim with holiday decorations to take advantage of and highlight your home's architecture.

2. Landscaping. Net lights make decorating with your landscape so easy that your kids can do it. Lay them over your hedges and take advantage of all the landscaping aspects that your home offers.

Don't forget about your front door.

4. Spread the love. Gates, walkways, fences, and your entryway are great opportunities to extend your decor to your entire front yard.

5. Don't forget about your front door. This can be as easy as adding a wreath. Whether you go with store bought or homemade, the opportunities are endless.

These four tips will really help you boost that curb appeal, whether you're selling or not.

I hope you enjoyed this topic and all the topics we discuss in our videos. If you have any feedback for us or topics you'd like to learn more about, reach out to us anytime via phone or email. We look forward to hearing from you.

What Can You Do to Save for a Down Payment?

Dave@hhande.com (Dave Hooke) — Tue, 13 Dec 2016 10:08:00 -0800

Every buyer knows that they need a down payment in order to purchase a home. Today, I’ll go over five unique options you can use to save for your down payment.

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When buying a home, it’s very important that you have your down payment ready to go. Here are a few unique options to help you save for a down payment:

1. Consider crowdsourcing your home.

2. Ask the seller for help. Asking the seller to assist with closing costs is a common way to free up more money for your down payment. Ask your lender what the limits for closing costs are on your loan program, and then ask your Realtor to help negotiate for the seller to pay the closing costs on your behalf.

3. Look into government options. The department of Housing and Urban Development, or HUD, has a site with links to all 50 states. These links provide information on different options to help you get the home of your dreams. There is also the Good Neighbor Next Door program, which provides closing cost assistance for teachers, firefighters, police officers, and more. Of course, there is also the VA loan, which helps veterans purchase homes.

If the seller pays closing costs, you’ll have more money for the down payment.

4. Check with your employer. Some employers offer programs to help low-to-moderate income employees purchase a home.

5. Take advantage of special lender financing options, such as a USDA or FHA loan. You may have to meet certain income requirements in order to qualify for one of these loans. The property has to meet certain requirements as well, but these are great options to help buyers get the home of their dreams.

Of course, you can always combine some of these options to get the home that you want. If you have any questions about any of these five methods, just give me a call or send me an email. I would be happy to help you!

7 Questions to Ask Before Hiring an Agent

Dave@hhande.com (Dave Hooke) — Tue, 29 Nov 2016 11:02:00 -0800

When hiring an agent to sell your home, make sure to ask them these seven questions in order to pick the best one for the job.

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If you are planning on selling your home, how can you make sure that you select the best agent for the job? We have seven questions that you should ask when interviewing agents in order to hire the best one.

1. How long have you been selling homes? You wouldn’t want to go to a doctor who’s just one year out of medical school. It’s helpful to have an agent that’s been in the business a while and has some experience under their belt.

2. How many homes did you sell last year? A lot of agents like to tout the success of their company. Ask them how they have done year to year. Ask them to bring that data along to the interview. Again, it’s helpful to work with an agent who has a lot of experience. You could have a long-time veteran agent who has been in the industry for 20 years but only sells two homes a year, or you could have an agent who’s been working for four years but sells 30 to 40 homes a year. The second agent would have more experience.

Not all real estate agents are Realtors.

3. How are you going to market my home? It’s important to have a detailed marketing plan that is written down.

4. Will you represent me exclusively? In Pennsylvania, an agent can represent you the seller, or the buyer, or both. If an agent is going to do dual agency, make sure that you understand it and consent to it.

5. How will you keep me informed? We find that communication is one of the most important things to our sellers and clients. Ask them what their communication plan is and how often they intend to talk to you.

6. Can you provide references? Ask for three or more references and ask for contact information. Make sure that you follow up with them so you can see what their experience was working with this agent.

7. Are you a Realtor? Not all real estate agents are Realtors. If your agent is a Realtor, that means they are a member of the National Association of Realtors, which has been a champion for professionalism and ethics in real estate for over a century.

Those seven questions will help you pick the best agent for the job. If you have any other questions about hiring an agent or selling your home, give us a call or send us an email. We would be happy to help you!

What Do You Need to Know About Home Inspections?

Dave@hhande.com (Dave Hooke) — Mon, 14 Nov 2016 09:04:00 -0800

If you’re a home buyer, there are five things you need to know about how home inspections function.

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As a home buyer, what are the five most important things to know about home inspections?

1. You can choose your own inspector. You can get a referral from a real estate agent or someone else who’s recently bought a home or just look up the National Association of Home Inspectors. This is an association that home inspectors are typically members of if they’re qualified. If they’re members of that association, they’ve typically completed a training program, shown competence in the home inspection trade, and completed a written exam.

2. Inspections are not a pass/fail process. A lot of our clients believe that the inspection is a black and white result, but that’s not the case. On the contrary, home inspections are often general reports that consist of 20 to 40 pages of general information about the home which you can use for many years into the future in reference to the structural elements of your home. They do include a list of material defects and (usually) safety issues, and it’s your responsibility to determine if those things are concerning enough to impact whether you’re going to purchase the home or not.

Inspections aren’t black and white.

3. Inspections are intended for adverse conditions. They’re not necessarily just for cosmetic issues. We advise that you attend the inspection just so you can talk with the home inspector about what’s important and what’s not, in their opinion. No house is perfect; all of them have some adverse conditions and defects that are listed in the inspection.

4. Our agreements of sale in Pennsylvania allow the home buyer three different options as the result of the inspection period. The first option is to accept the property based on the information in the report. The second option is to terminate the agreement and get your earnest money back. The third (and most common) is to ask the seller to repair some of the items that came up in the report.

5. Home inspectors are not specialists. They are more like general practitioners that are going to give you information about all aspects of the home. We advise that you consult a specialist like an electrician or a plumber if there is a major issue that needs to be addressed. Do this before you choose any of the options discussed in number four.

If you have any questions about home inspections or anything else related to real estate, please don’t hesitate to give us a call or shoot us an email. We look forward to talking with you soon!

2 Things You Need to Know About Short Sales

Dave@hhande.com (Dave Hooke) — Mon, 31 Oct 2016 13:04:00 -0700

What are short sales and what should you know about them? Here are a few things to keep in mind if you’re thinking about buying a short sale property.

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What is a short sale? There a few things you need to know about short sales if you’re thinking about purchasing one. A short sale is the sale of a property where the proceeds net the lender less money than what is owed to the lender on the mortgage note. For example, if you sign a mortgage note that you owe a lender $100,000 and you sell the property for $90,000, it would be considered a short sale. What a lot of people don’t know is that you can actually sell a property for more than what is owed to the lender in some cases, and it would still qualify as a short sale. As an example, if you owe $100,000 to a lender and you sell a property for $105,000, but your closing costs are $7,000, it would only net the lender $98,000, resulting in a short sale. The other important thing to know about a short sale is that it requires a lender’s approval for the sale to go through. This differs from regular sales in which only the owner’s approval is required. The lender’s approval is required when you’re giving them less than what is owed to them.

Short sales can take a long time to close.

Why would a lender ever consider accepting less than what is owed to them? Well, if the lender reviews all of the owner’s tax returns, verifies their employment, and finds out that the owner is completely insolvent, they know that there is no chance that they would ever get paid what was owed to them without selling the property. In this case, they’ll consider accepting less money over foreclosing on the property, which takes months or even years and an involves a lot of fees in some cases.

What should you know if you’re considering buying a short sale property?

Statistically, short sales have a higher chance of going for less than market value than standard sales do.
You have to be incredibly patient when buying a short sale property. The transaction on a short sale can take up to six months or even longer to get the bank’s approval. This is due to the amount of time it takes the bank to verify the owner’s insolvency and to determine that a short sale is in their best interest.

If you have any questions about short sales or anything else related to real estate, please don’t hesitate to give me a call or send me an email. I’d be happy to help you!

4 Tips to Help You Win the Home You Want

Dave@hhande.com (Dave Hooke) — Mon, 10 Oct 2016 14:34:00 -0700

In this hot seller’s market how do you make your home offer stand out from the rest? Here are four steps I suggest you take.

The market is extremely hot for sellers right now, and as a home buyer, it may not be as easy to get your offer accepted as it has been in the past. Here are a few tips to help make your offer stand out and win you the home you want:

1. Keep your offer simple and straightforward. This is especially important if there are multiple buyers making offers on the same property. This doesn’t necessarily mean that you should neglect important aspects of the transaction that concern you. Just keep in mind that if there is something you can do to eliminate a contingency, your offer will be simpler, and therefore much more attractive to the seller.

2. Consider writing a personal letter to the seller. I know that this may sound cliché, but personal letters really do make a difference. Statistically, it’s been shown that offers which appeal to the seller emotionally have a better chance of standing out and being accepted than other offers do. If you and your family are really excited about this home and all of its features, let the seller know all of the specifics. Compliment the way that the seller has maintained the home, include your vision of it for your family, and make sure that the letter is personalized. Don’t hesitate to include a picture of you and your family within the letter for maximum impact.

Personal touches can make all the difference to the seller.

3. Have your loan officer personally follow up with the seller or listing agent. This is probably my favorite tip and the one that is the most neglected. This will make a huge impact because one of the biggest concerns for a seller is the strength of your financial situation. Most buyers will have a pre-approval letter included with their offer, but very few will have their lender call the seller personally to explain that they’ve looked over all of your financials and have determined that you are completely qualified to buy the home. A loan officer that is confident in you as a buyer will give the seller peace of mind when it comes to reviewing your offer.

4. Be ready to act swiftly in the event of a counteroffer. Strike while the iron is hot and don’t take multiple days to respond to a counteroffer. Instead, quickly consider whether you’re going to accept the counteroffer or quickly counter the counteroffer to keep the ball rolling.

These tips can make a world of difference when submitting your offer and may even help win you the home that you want in the end. If you have any other questions about buying or selling a home in our market, please don’t hesitate to give me a call or send me an email. I look forward to speaking with you!

3 Reasons Why Fall Is a Great Time to Sell Your Home

Dave@hhande.com (Dave Hooke) — Mon, 26 Sep 2016 10:31:00 -0700

Contrary to popular belief, the fall is actually a great time to sell a home. You may not see as many buyers as you would in the spring and summer, but you can be sure that fall buyers are more serious.

We all know that a lot of people in the South Central Pennsylvania area list their homes on the market in early spring with a lot of those homes going under contract in early summer. But what about fall? How good is the fall selling season going to be? Each year is different, but I think that there’s something special about the fall season this year. Here are three things to keep in mind:

1. The bulk of spring listings are expiring. Many of the homes still on the market were listed in spring, and as a result, there is less competition, particularly when you consider how your home will stand out as a new listing and fewer days on the market that your listing will boast.

2. Fall home buyers are more serious. These buyers have been looking at listings for months, and they are eager to conclude their search and move in comfortably before the holidays.

3. Interest rates are still at all-time lows. There is a threat that’s looming in people’s minds that rates are going to increase sooner rather than later. In a normal year, people may postpone their decision to buy a home until the spring, but this year I sense that these low interest rates will create some additional demand.

There is less competition in the fall selling season.

First, you have to prepare your home to account for the particular fall conditions. For example, you need to check the HVAC system and replace your furnace filter so your home will be warm and smell fresh. Get it tuned up and call an HVAC contractor to inspect it. Also, make sure to turn on all the lights; you've got to compensate for the shorter, cloudier days. Cleaning up the yard is also a must in order to maximize your curb appeal.

The second thing you need to do is price your home appropriately. You can always give our team a call and we’ll give you a free, no-obligation consultation to get an estimate on your home.

If you have any other questions about selling this fall, don’t hesitate to give me or my team a call or send us an email. We look forward to hearing from you soon.

Turn a Lowball Offer into a Home Run in 5 Steps

Dave@hhande.com (Dave Hooke) — Thu, 8 Sep 2016 10:05:00 -0700

If you’re selling your home in South Central Pennsylvania and you receive a lowball offer on it from a potential buyer, you may be wondering whether it’s still possible to get a great deal on your home. Today I’d like to share five steps you should take that will help you turn that lowball offer into a home run:

1. Don’t be insulted by a lowball offer. Your first instinct when receiving a low offer on your home may be to get defensive. This is the most unproductive thing you can do. Try not to get emotional, keep an objective perspective, and realize that this buyer may not be doing this solely to make a personal attack on you or your home. It’s possible that they’ve been misinformed about starting with a low offer, and many times these people are expecting a counteroffer.

2. Respond gracefully. Grace can go a long way. Put yourself in the buyer’s shoes: if a seller launches a personal attack on you after making an offer, are you likely to come up on your price? The odds of the buyer coming up on their offer are much stronger when you respond with a graceful offer because you’re approaching them in a collaborative and positive way.

3. Write a strategic counteroffer. Don’t feel pressured to come down and meet the buyer halfway just because they lowballed you. It’s okay to give a little bit in good faith, but if your home is priced reasonably, there’s no reason you should slash your price.

4. Expect a counter to your counteroffer. It’s natural for this negotiation to feel a bit like a chess game, and you may counter back and forth a few different times. This is okay; just try your best to be patient.

5. Focus on things other than price. Get creative with terms like the settlement date, included appliances, and financing or inspection contingencies. One thing that you can rest assured in knowing is that if there are a lot of inspection contingencies, there may be repair requests later on. If this is the case, you could potentially turn a lowball offer into an as-is sale.

Don’t feel pressured to meet the buyer halfway.

If you have any questions about lowball offers or real estate in general, don’t hesitate to give me a call or send me an email. I’d be happy to point you in the right direction!

What Happens If the Home You’re Buying Doesn’t Appraise?

Dave@hhande.com (Dave Hooke) — Mon, 29 Aug 2016 10:01:00 -0700

As a buyer, what happens if the appraisal on the home you’re about to purchase comes in too low? There are four main options you can explore:

Cancel the transaction. This may be the best option for you, even though it’s a heartbreaker. If your appraisal comes in below purchase price, analyze your sales contract, consult with your attorney or Realtor, and determine if you have a financing or appraisal contingency. If you do, then you have the right to walk away from the transaction or renegotiate the transaction down to the appraised value.
Come up with more cash. Only do this if you really want the property. If you’re concerned about resale or think that the appraisal is valid, you would essentially be overpaying for the home. However, a lot of customers look at the appraisal and think, “I really want this to be my home for many years.” In that instance, you might not care about the appraisal.
Get creative with your lender. Talk to your lender and see if you have other collateral, like another property, that you can borrow against. You might be able to do a first and second loan on the property that will finance the difference in cash. With interest rates as low as they are, this can be an attractive option.
Challenge the appraisal. Be careful if you decide to go this route; appraisers can get defensive and this is their expertise. First, consult with your attorney or real estate agent to determine if there are any errors in the appraisal. Then, call the appraiser. Be empathetic, not confrontational. Maybe the appraiser missed a comparable property, or maybe there was an error in the lot size. If you take a competitive approach, the appraiser’s defenses will go up and you won’t get anywhere. Take a more collaborative approach instead.

Take a collaborative, empathetic approach if you challenge the appraisal.

Remember, if that appraisal comes in lower than the price you offered, you do have a few options. If you have any questions, please don’t hesitate to give me a call or send me an email. I would be happy to help you!

5 Steps to Help You Get the Home You Want

Dave@hhande.com (Dave Hooke) — Wed, 17 Aug 2016 09:30:00 -0700

How do you get the home you want in a competitive market like the one we’re experiencing now? There are five things you can do to help you compete in this market and snag the home you’re looking for:

1. Get pre-approved. Without pre-approval, you won’t have peace of mind about your monthly mortgage payment or what your interest rate might be, and you’re not putting yourself at the top of the list of offers on the home in the first place. It’s also a good idea to ask your lender about a good-faith estimate of your closing costs just to get an idea of the breakdown between them and your down payments.

2. Be informed about what you’re looking for. I’d advise making two lists. One is a list of your needs – things like financial boundaries, location, and the number of bedrooms – and the other is a list of wants – whether you want a 2-car garage or a 3-car garage, or how much square footage you’d like. Having these two lists will allow you to narrow down your options from all of the inventory out there.

You will have a long-term relationship with your Realtor.

3. Interview a Realtor before working with them. Keep in mind that there are more than 1,800 real estate agents in our market alone. It’s critical that you sit down and talk to a Realtor, or maybe a few Realtors, before deciding on one to work with. Have a 15 or 20-minute conversation with the Realtor and ask them questions about their credentials, how long they’ve been selling homes, their fee structure, and what they do to service their clients. If a Realtor’s personality does not fit well for you, or their credentials don’t match your needs, interview another Realtor.

4. Create your own search on a real estate website that you’re comfortable with. This may seem like it contradicts the point above, but while your Realtor is out setting up searches for you, keep an eye out on your own for homes that your Realtor may have missed. All things considered, the value of a Realtor lies in the counsel they provide throughout the home buying process, as well as their ability to represent your best interests when making an offer on the home you want.

5. Make sure you are prepared to make a quick offer. If a home that you like is listed on the market, it’s probably priced well and in relatively good condition for its price. Chances are, a lot of other potential buyers are going to like that home for the same reasons. So when you see a home you like, be sure to let your Realtor know that you’re going to be prepared to write a contract on the spot, or shortly after you see the property. You don’t want to do this if you feel pressured or aren’t comfortable with the property, but waiting a few days could potentially allow another buyer to snatch it out from under you.

If you’ve got any other questions for us, or you want a free consultation, we’d love to be one of the real estate offices that you interview to see if we can add value to your home buying experience. We’ll get you set up and sent off in the right direction.

5 Quick Ways to Add Value to Your Central PA Home

Dave@hhande.com (Dave Hooke) — Thu, 28 Jul 2016 13:04:00 -0700

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If you’re planning on selling your home this summer, there are five things you can do to increase your home’s value:

1. Paint. I always recommend a fresh coat of paint. If you don’t have an eye for color, a coat of crisp white paint can go a long way. If you do have an eye for color, consider a light sand tone or shade of gray. A fresh coat of paint will give your house a nice finish and you will cover fingerprints and stains throughout the house.

2. Address your front door. A bright red or yellow door can differentiate your home from the rest of the properties on your street and make a great first impression on the buyer.

3. Increase your curb appeal. Landscaping is the name of the game. When buyers drive by, you want your landscaping to pop. Make sure you put down fresh mulch, edge and weed your lawn, and plant fresh flowers. If you can’t plant fresh flowers, at least bring in a few potted flowers by the front door.

If you do nothing else, make sure you clean and declutter.

4. Make quick bathroom updates. Install some new fixtures, paint the cabinets, or get a new vanity. Even just adding nice, fluffy towels, a fresh shower curtain, or a new rug can make your bathroom look new again (even if it really needs to be gutted).

5. Clean and declutter. If you don’t do any of the other things, make sure you clean and declutter. We all live in our homes and have useful, convenient things on every open surface. Clean off your countertops, nightstands, shelves, and more. Throw out old magazines. Take down personal photos. You have to pack anyway, so put some things in boxes and store them so your home looks bigger and cleaner when buyers walk through it.

If you have any questions about getting your home ready for the market, give me a call or send me an email. I would be happy to help you!

How Elections Historically Affect the Real Estate Market

Dave@hhande.com (Dave Hooke) — Fri, 15 Jul 2016 08:40:00 -0700

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According to a Huffington Post article written by David Cross, real estate values continue to increase on average during an election year, but usually at a slightly slower pace than the year before or the year after. I’ve included a graph to help you get a picture of what that looks like. In general, according to historical averages, prices increased the year before at a 6% rate. During the election year itself, the increase slowed to 4.5%. Then in the year after, the rate went back up to 5.3%.

According to that information (and after doing some additional research), Cross didn’t deduce any correlation as to why the market slowed during election years. One thing to keep in mind, however, is that this information is not market-specific. Meaning it doesn’t necessarily represent this specific market, this specific time of year, and this specific election.

Values continue to increase, but usually at a slower pace.

In South Central Pennsylvania, for instance, real estate is continuing to increase at a moderate rate compared to last year. In fact, according to the MLS, it will increase at a faster rate than last year. This is obviously in opposition to the graph’s information. Overall, things like interest rates and other economic variables can have an impact on what home values do, even if - on average - they increase at a slower rate.

If you have any questions on what your home is doing this year, would like a free home value estimate, or just have a general real estate question, please don’t hesitate to contact me or my staff by phone or email!

3 Reasons to Downsize with a New Home

Dave@hhande.com (Dave Hooke) — Thu, 30 Jun 2016 10:47:00 -0700

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At a certain point, you don’t need a large home anymore. Maybe the kids are off to college or you’re just looking for something that requires less upkeep. In a world where bigger often seems better, sometimes less is more. Here are three benefits to downsizing with your next home:

More money: If you are looking to get into a smaller home than the one you have now, it frees up equity in your current home and will result in lower mortgage, tax, and insurance payments. You’ll have to spend less on upkeep and maintenance as well.

More time: This is a big one. A smaller home means you spend less time cleaning and upkeep. That means more time for you to do the things you like to do, like spending time with your family.

Start with asking the simple questions like
“How much is my home worth?”

Increased efficiency: A smaller home needs fewer resources to heat and cool it, reducing your carbon footprint.

There are plenty more things to think about when downsizing, but most people start with asking the simple question, “What can I get for my home?” and “What kind of home could I buy in this market?”

If you have any questions for us, give us a call or send us an email. Dave would be happy to come out to your home and give you a free home value estimate. Just call or email us saying, “I’d like Dave to give me a free home value estimate” and we’ll get it done for you! We look forward to hearing from you.

5 Factors That Influence Home Value

Dave@hhande.com (Dave Hooke) — Thu, 16 Jun 2016 08:12:00 -0700

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What are the five most important factors that affect the value of a home?

Current location: Home value is influenced by a home’s location, depending on the neighborhood, municipality, values of surrounding homes, and even school district.

Future location: Although many sellers focus on current location, it’s critical to consider the future location. Think about what’s trending, any new developments, and property taxes in a prospective neighborhood.

Market timing: The state of the economy, interest rates, and other market trends will dramatically affect home value.

Although many sellers focus on current location, it’s critical to consider the future location.

Zoning changes: If you’re located in a residential neighborhood, this might not impact you as much. However, if you’re in a metropolitan or downtown area, it’s important to keep an eye on zoning, especially if changes are occurring in surrounding properties.

Condition: Your home needs to be maintained to be in fair condition. The three most important rooms in your home include the kitchen, master bedroom, and master bathroom. Other bathrooms are important as well. Don’t overlook condition.

If you’re thinking about buying or selling a home in Southcentral Pennsylvania, give me a call or send me an email. I’d be happy to answer any real estate questions you might have!

The 4 Types of Returns on Investment Properties

Dave@hhande.com (Dave Hooke) — Fri, 3 Jun 2016 12:12:00 -0700

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A lot of people ask me to help them understand the benefits of investing in real estate. I want to share some insights into long-term investing, like rental property ownership. There are 4 different types of return on real estate to calculate.

Cash flow. This would be different from your gross rents and your monthly expenses. If your expenses like the mortgage payment, taxes, insurance, and management are less than your gross rents, you have positive cash flow.
Annual appreciation. If you buy a property for $100,000 and next year it's worth $102,000, we can say it appreciated by $2,000 and that's another return.

It's important to talk to an expert or a financial advisor.
Increase in equity annually. If you get a loan from the bank and it's $100,000, every time you make a mortgage payment, that loan balance is going to be reduced. That reduction represents an increase in equity or net worth that's accrued to you. This is often the biggest one.
Tax. This one has to do with your tax accountant so it's important to talk to them first. They will probably depreciate the property over 27.5 years. By depreciating the property, you can get gains on income tax write-offs that you wouldn't have before the property ownership.

One of the benefits of real estate ownership has to do with if you're a growing family. For instance, my wife and I bought real estate so that over the course of 18 to 20 years, we might be able to help pay for our son's college education. It's a great incentive to consider the benefits of real estate investing. But it's not for everyone - there can be management headaches and maintenance issues and things that can be quite speculative. It's important to talk to an expert or a financial advisor to decide if it's a good idea for you and your family.

Please don't hesitate to reach out with any more questions you may have for me!

What Happens After Your Offer Is Accepted in Central PA?

Dave@hhande.com (Dave Hooke) — Mon, 23 May 2016 11:15:00 -0700

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So you're shopping for homes, you make an offer on the one you want, and the offer is accepted. Now what?

The first thing I want to say is that it's not time to celebrate yet; we still have work to do before we get to close on the home. That can take up to 60 days after the offer is accepted. The first thing we can do is write out our earnest money deposit check. That's the money that we give to the listing agent for the seller, which typically gives them peace of mind knowing they can take their property off the market, because you're a serious buyer.

“

It's not time to celebrate yet.

”

Secondly, we'll schedule and coordinate our inspections, and attend them. This includes inspections for termites, radon, water, septic, and others depending on the property. After we review, we can decide if there are repairs to negotiate with the seller. The third thing we'll do is make our mortgage application and make sure that the bank appraisal has been ordered, so the bank can review the property, make sure the value is there and review our financial statements. Assuming they approve our loan, we'll get a loan commitment letter.

The fourth thing to do is schedule the final or pre-settlement walkthrough. This is our chance to walk through the property and make sure everything is in order before we settle on the property. Then we'll attend the settlement at the title company of our choice, sign a whole lot of documents, and take the keys to the property.

Then, it's time to celebrate!

Thanks as always for watching. Please reach out to us with any questions you have, whether you're local or not.

How the Dave Hooke Team had great communication while helping us sell our home and buy another.

Dave@hhande.com (Dave Hooke) — Tue, 17 May 2016 11:32:00 -0700

“It was great. They were very professional, they kept us informed through every bit of the process and the house sold quickly. I thought that they were very good at communicating with us during the process. Just keeping in touch, letting us know what’s going on, how it’s working out. I mean in three weeks we had an offer, so it wasn’t a long process but yet we didn’t close on the home until a month later because of the house we were holding off on buying that home. During that process they were making sure that everything was going smooth with the buyers and their process with regards to loan approval.”

-Jim Degaettano

Should You Buy or Sell First in Central PA?

Dave@hhande.com (Dave Hooke) — Wed, 4 May 2016 08:40:00 -0700

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Can I buy a home and sell a home at the same time?

There are two ways you can complete that transaction. First, you can put your home on the market, sell it, and then purchase a home. Or you can wait to list, purchase a home, own two homes, and then sell your old home. There are pros and cons to each decision and it’s important to find out which is the best way for you.

If you decide you’re comfortable owning two homes, you can wait to put your home on the market until you find the perfect property. Once you settle in, then you can sell your home. There is less stress and pressure to find a property with this method. However, there is some increased financial pressure that comes with owning both homes.

“

Talk to your Realtor to figure out which option is best for you.

”

Conversely, if you decide to sell your home first, you won’t have to own two properties at once. That eliminates the financial burden, but you are under more pressure to make a quick decision on a property. You might wind up rushing the decision and finding a property that doesn’t work out, or you will have to find temporary housing while you find the right home. While you can rent a house until you find the next property, that does place an added burden of moving twice in a short period of time.

If you’re not sure which option is right for you, contact a Realtor and a local mortgage lender. The Realtor will conduct a market analysis on your home to see how much equity you have in your current property, and the lender will let you know what kind of mortgage you qualify for. That way, you know which option you can afford.

If you have any questions, give me a call or send me an email. I would be happy to help you!

How Dave Hooke helped us sell two houses in a tough market and achieved full-price offers.

Dave@hhande.com (Dave Hooke) — Thu, 21 Apr 2016 13:05:00 -0700

We had a couple, course everybody knows the great recession we just came out of, and we had some problem houses that took a long time on the market and we asked Dave to come in and try to market them and sell them he accomplished that on two different occasions achieving full-price offers in a very reasonable amount of time and it was just really helpful for our business. Would you Recommend him to someone else? Oh Absolutely, absolutely. Just did that today in fact.”

-Dave Thompson | Custom Builder | Home Designs Unlimited

What Are Sellers Accepting as a Fair Price for Their Home?

Dave@hhande.com (Dave Hooke) — Thu, 21 Apr 2016 10:10:00 -0700

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What will a seller accept as a fair price for their home? Many people ask this question, but the only true answer is it really depends on the given market. That’s why it’s important to work with a real estate professional who has the tools to do a market analysis and give you a more definite answer.

In the Central Pennsylvania market, sellers have accepted, on average, about 2.7% less than their asking price. As a general rule of thumb, you probably won’t ruffle anybody’s feathers if you offer 5% less than asking price, but it does differ from market to market.

In order to ensure you don’t overpay for a home or miss out on a home by making too low of an offer, seek out a local buyer’s agent in your market and ask them to do a market analysis. They can find homes just like the one you’re interested in, figure out what they sold for, and then give you an opinion of value of the one you’re putting an offer on. They can also inquire about the motivation of the homeowner, talk to the listing agent, and negotiate on your behalf to get you the best possible value for the home you like!

If you need real estate assistance, or if you have questions of any kind, real estate related or not, please don't hesitate to reach out to us. We would love to hear from you!

Central Pennsylvania Real Estate Market Update

Dave@hhande.com (Dave Hooke) — Tue, 5 Apr 2016 14:11:00 -0700

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What’s the market like in South Central Pennsylvania? Unfortunately, the national news focuses on data taken from 11 metropolitan areas in the United States. You really need to talk to a local expert to figure out what the real estate market in your area is like. Fortunately, I’m here to provide that hyperlocal insight for our area!

For the first time in six years, our housing market is improving. The average value of real estate in our area has finally started to increase over the last 12 months. We hope that appreciation continues in 2016!

The average days on market has dropped from 96 to 89 days on market, so homes are selling faster than they were last year as well.

Finally, the number of homes sold in the past 12 months has increased by almost 900 homes. That’s an increase of over 5%.

With these market conditions and historically low interest rates, now is a great time to buy or sell a home. If you have any questions, give me a call or send me an email. I would be happy to help you!