Millennials Staying Home. Multi-Gen Inventory is the SOLUTION!

"I'm pregnant"! Ah, the birth of a baby; nothing is sweeter (initially...ha). This joyous announcement is followed by $2,577.35 spent on diapers, and 1800 + bottles, annually. There is a $245,340 investment from arrival on the planet, through high school graduation. And, a final cost of approximately $85,245, for a 4-year college education.

These costs giving you a total of $333,162.35, to raise ONE kid!

With that said, OMG let's give us a pat on the back, a high-five, and freaking fist bump! We totally deserve it, Rockstars!

Now, GET OUT!!! (love ya, buh-bye).    

Wait. What? You want to know...if you can stay awhile? Um, no. But, thanks for asking. On the flip side, we've just invested a cool quarter million in this kid; what's another, or say...10 years?!!! Welcome, to The New Millennial Life Plan. We just signed on the dotted line as a co-borrower, baby! All joking aside, much of the information out there is pointing to this new trend and has been for some time. Not since The Great Depression in 1940  have we had so many young adults hanging around the house. Granted, post-TGD, for most households this lingering on was necessary. It took everyone pulling together to make ends meet. So, whassup now? Have we raised a bunch of entitled, spoiled brats? A group of child-like adults that don't want to spend their money, but have no problem spending ours (I mean..MORE of ours). Have we failed? Did we forget a couple of life lessons on finance and hard-work in the two decades we had them? Let's not be so hard on ourselves. More than likely, it's that darn "cost of living" thing...circa, 2015.

Despite reports that we are in a "recovering" economy, unemployment is down, and wages are up (slightly) it's still not enough. Sadly.

Check out what the stats say; it's a mixed bag of good and bad.

The data is pretty unnerving. 46% of college grads in their 20's are cemented in dead-end, low-wage jobs, the highest number in decades. The number or young adults earning less than $26,000 per year has risen to it's the highest level since the '90's.

Depending on how we look at it there is a lil' bit of good stuff in this situation. In a country that started developing a strong sense of every man for himself around the Reagan era, we lost an ol' school sense of family. Not the "nice to see you on holidays" gatherings kind, but the true all-for-one-and-one-for-all kin. Why did we ever get away from that? It's called "family" for a reason. I'm not a proponent of hand-outs, but I sure am an advocate for a hand-up. Life is hard, doesn't it make sense to give our kids the best start? Yes, raising them from 0 - 18 was a great START, but let's see what we can do with a bit of ingenuity and compassion.

Here's how this cradle to grave thing could work out for the housing market.

Okay, so if we've resolved ourselves to the fact (and hopefully embraced it, because we're cool like dat) that junior is coolin' in the crib a minute longer then here is a great strategy to make this time, and plan a win-win outcome.

A.) Set a clear timetable for how long he/she is staying. Without this game plan, there is no sense of urgency (which is what drives us as human beings), and there is no sense of calm for us, either. Let's be real; it's hard to stay relaxed when you're always wondering "when is (insert whatever, here) going to end"?!!! With a clear cut plan everybody scores.

B.)  Have a chat with a local lender. One of the biggest issues for Millennials is debt; and, at the top of that list is, student loans. Part of the strategy should be paying off bills, building a solid credit score, and saving. By consulting with a loan officer, families will have a clear approach to the making it happen!

C. ) Hang out at the bank a minute longer. We've got an application to fill out. Huh?

Let's take this "family bonding" to its nth degree. GO multi-generational!

Here's the breakdown of the bigger problem:

*Millennials are not earning enough money. They have too much debt and no established credit.
*Parents/Grandparents/Extended Family don't have enough space in their existing home or income to cover everyone's expenses. Bigger family. Bigger bills.

Solution 

Instead of cramming everyone into the current home, meant for Empty-Nesters, or the paid off family home in need of lots of updates, why not MOVE? Let's be honest. If the property was purchased 20+ years ago, it might be time for an upgrade! I wonder how many folks have been to a new home Open House, lately? Whoa! Gorgeous. I know, I know! We can't afford a payment like that"?!!! That may be right, We can't, but EVERYONE collectively can! Here is where the family part comes in! What if, homeowners started considering this idea?
Interest rates are still low, and many older owners are Vets, so they can use a VA loan. If our kids, who are now living with us have established good credit, they might be able to go on the note. Being on the mortgage would help move them toward a home of their own within a year or two. Ok great, but what happens when the kiddos roll out, and now Ma and Pa are stuck with the mortgage? We can take that lovely equity, and refi with a nice LTV (loan to value) or sell it.

Well, that's a lot to ask. I mean all that packing, moving, unpacking. A huge commitment. Here's a little secret we signed up for that "huge commitment" at Wha!!!

Every membership has its privileges. With the M-G Membership, we get family fun, economic savings and stability, and a beautiful new home! The housing market perk is movement forward!

We went Green...now, let's go Multi-Generational! Pitch it, Sell it. Propel it!



"No man is an island; entire of itself" ~ John Donne

3 SECRET Game Rules...1st TIME HOME BUYERS Need To Know!

Ever played Pictionary? Charades? Any game that requires you to guess at what the other player is trying to do, or say? If so, you know you have about a 50/50 shot at getting it right. However, the results from assumptions; can be hilarious!

But, here's what's not funny...misconceptions, lack of understanding, and believable rumors that keep you (Buyers) from purchasing homes. Most of us, have all the time in the world to laugh, and create playful strategies; but, in the real world of home-ownership, those causalities could cost you money. While you're assuming you can't purchase a home; others have moved on to Clue, and figured out the story. The fable that ends with them conquering the myths; and, securing the castle.

Excuses, Excuses...Excuses!

"I'll let you know if I change my mind...I don't think the timing is right...We have a lot going on right, now". These are all reasons I've heard, and continue to hear, as to why Buyers cannot, and/or will not buy a home. Really? I can't think of a single time, that I've truly wanted to advance my personal well-being, or financial portfolio; and, allowed a unfounded objection, to stop me. Quiet honestly, when I toss out the "no, thanks" to sales folks (like myself); it's usually, because I am not sure of all the variables.

Whoop! There it is! Assumptions. Wouldn't it be nice, when you did get that call, email or text, asking if you'd be interested in buying a home; it didn't come in puzzle form, but instead with detailed game rules?!!!

F.E.A.R...False Evidence Appearing Real.

3  Game Changers

Here are a few things that are not real, when you purchase a home:

1.) You do NOT pay the Realtor. WHAT?!!! Keep your money; We will have that discussion with you, when you sell your home.

2.) You do NOT need a huge down payment. As a matter of fact; in most cases, if your score is 640+ you will not need a down payment, at all.  However, you will have to come up with a lil' cash for the good faith deposit (usually around $500 - $1,000). A GFD is the money that says to the Seller..."we mean business"! If your transaction closes; it's applied to your closing costs; if it falls apart, by no fault of your own, you get the deposit back.

3.) Most all closing costs can be paid (and not by you). Well, er...kinda, by you. Let me get out my Etch-A-Sketch and break it down...

Home Purchase: $200,000
Closing Costs: $5,000 (approximately)
Seller Credit: $5,000. This is the Seller increasing the home purchase price from $200,000 to $205,000; and, allowing you to finance your closing cost, into your financing. Basically, you pay that closing cost over the life of your own loan. Trust me it's the way to go. Battleship, brainpower!

Roll the dice with a Realtor

"Yahtzee"! Oh how we love to holla' that phrase; it means we won! In reality, buying a home is sort of like rolling those dice; but, it's not always 5 dice, that mirror each other. Sometimes, it's 3-of-a-kind; and, other times it's that lousy "chance". Regardless, as long as you know the rules; it's worth the opportunity to sit down, and play the game. The more you understand the guidelines, the better you become, at winning.

So, here's the cool analogy...it's advantageous to chat it up, with a Realtor and learn "the rules". Taking the time to have a short conversation with a skilled, professional, versus assuming abstract information; could mean the difference between being a homeowner, or not.

There is no "Risk" in building equity; and making memories in your own home. You may just be on your way to a "Monopoly".

"Knowledge is power...Play to win!

A WEIRD reason housing inventory could re-hydrate in 2016

No, I don't have a crystal ball, or a direct line to The Wizard of Odds. But, I do follow the news; and, have a memory like a steel trap, when it comes to issues of interest. I've always been intrigued by real estate. I'll leave it at that.

Shark attacks and lifeguards

Around 2006, when the housing bubble began showing signs of a burst; less homeowners could qualify for refinancing or HELOCs (Home Equity Loans), as most were arcing upside down in their mortgages. That term upside down (or underwater, as some say) simply refers to, owing more on your home than it's current market value. This bubble was partially a result of a slowing economy, and greed in the mortgage industry (yes, I said it...AND, out loud) offering home owners up to 125% LTV (loan to value) on their homes. I was a Realtor in the San Francisco Bay Area at the time; and was repulsed by the way my clients were being sucked into this predatory funding funnel. It's a basic rule of thumb...what goes up, must come down. There was a reason many mortgage originators were dubbed sharks...you couldn't see them coming, as they swam in for the kill (and, yes...of course, not all lenders were or are like this; there are some really good Cash Cats out there). But, I am happy to report, as the market began to recover...this time around we had lifeguards, with an established set of rules for lending money. Baywatch with bankrolls, if you will.

In 2009, at the critical juncture of the housing disaster; I was a Sales Director for a loan mitigation company. Please do not judge me...I had to work, in a sagging market. It was around that same time, The Treasury Department launched it's Home Affordable Modification Program (HAMP), part of the Stimulus or Recovery Act; and, my head was spinning with business. I couldn't keep up fast enough with the requests to "modify" home loans. Initially, I saw this as a good thing; the government swooping in like a superhero, and saving drowning homeowners from foreclosure. However, there were very few regulations, if any...and, when it was all said and done; many companies claiming to "modify your mortgage" ended up with new wardrobes and addresses, IE: Mr. Smith, Cell Block #1, Leavenworth, KS. Those that opted to stay legit, rode out the wave of mortgage mods, until the damn backed up.

Yet, as desperate request continued for help, so did the demand for stricter guidelines...and, ultimately we ended up with programs that resembled some sort of genuine relief for the home owner.

Tsunami coming

Question...what happens with every loan, of any kind? Eventually it comes "due". Guess what's comin' due? Yep, HELOCs, HAMPs, Mods, etc. COMING SOON to a theater near you...RESET - 2015. This is not the first tidal wave of mortgage changes taking place; but, it's the first mass amount since the 2010 forbearances, so to speak.

"Wait, I thought I heard there was an extension on these?" Yep...you've got one "til the end of 2016 (on a case by case basis...sounds about right for government programs; vague and non committal).

But, what does any of this have to do with where the buried treasure of housing might be? In a market that desperately needs a freight of Pierre saturating it...I'll share, how I believe this influx of housing could wash up to shore.

STICKER SHOCK.

Many of these mods had ridiculously low interest rates; some even had 0%. Various programs had home owners set up on interest only payments, or a ginormous principal reduction, lasting anywhere from 5 - 30 years. But, as a good chunk of these arrangements near their end; many owners will not be prepared financially for this catastrophic marriage of mortgage payments. The momentary relief (well, a half decade, plus is hardly a stint)...is soon to revert back to a fully amortized amount. Ouch! Tsunami underway, the climate is right.

Now what?

Washing onto the shore

Throw your fishing line out there; and see what you catch as an idea, regarding these house payment adjustments. Did the word default come to mind? Foreclosure? Wait, what? You don't think that could happen, twice? Here's a bite out of a stat provided by TransUnion, recently.

"After loan modification, close to 40% of owners remained current on their mortgage, 18 months into the modification. After 18 months, 59.1% of mod loans had a re-default; meaning they went 60 days or more past due. And, within 12 months, 42 percent had gone 60 or more days past due".

This post isn't about whether or not the bailout worked; it's about a concept...that a countless amount of these homes, are headed back into default; and, eventually foreclosure. And, they have to go somewhere. My highest, and best educated guess...surfing right back into the housing inventory. So, you think we are dry as The Sahara, now? Watch for that 2015 reset. My personal and professional opinion...a re-hydration of homes will be floating to the surface, very soon.

The 5 Biggest Mistakes made during a home loan process

Tweeting birds, dancing squirrels, brightly colored floating hearts swirling through my mind; as a voice that mimics Mini Ripperton, says...."we are clear to close". I hang up the phone with a heavy sigh of relief, and gratitude. I quickly begin a celebratory series of text and emails to all parties involved; reiterating the lovely words I just heard. "We are clear to close"...I type. Now, on with my day, and my latte. Yet, no sooner did I hit the last send button; my cell rings, again...this time with a far more serious tone. "Caitlin". I reply...yes. "They bought a car, today. They just signed the loan docs". Silence. I can hear us both holding our breathe, as if it was our last; waiting to determine how the other will respond. 20 seconds, or so pass...and, without warning, and with all the force in me, I project just 3 precise words to convey my thoughts at this moment..."OH HELL NO!"

Suddenly my "Loving You" melody has turned to AC/DC's "Highway to Hell". No more, chirping chicks, or twirling animals...just a dark canvas in front of me, with the 3 new words...DEAL IS DENIED.

A Massive Waste of Time 

I would venture to guess that more Realtors have heard these words, than clients; as we deal in quantities. Regardless, of who or how often they have been uttered; it is heart-wrenching. For the real estate professional, it means anywhere from 4 - 8 weeks of work, having been wasted (sometimes more, if you've had a client with special needs or is a bit particular). And, as much as I know we are NEVER to mention money in this business (as it makes us seem like mongers)...we just lost our pay check. Let's be crude, here...do you know of anyone that would be cool with going a month + without income, anticipating it; and, then snap...gone. Me, neither.

Now, let's flip the coin...client; buyer or seller, this is not good. The majority of real estate sales involve people moving from one location to another; and more often than not, those funds to do so, have to come from the sale of a home. So essentially, you outta luck, padn'r.

So, having dumped salt on the "what if" wounds of what could happen if your home loan is NOT cleared to close; let me soothe that burn, with a list of medicinal suggestions to prevent it.

5 Simple Tips 

#1. Do not put anything on credit, while in contract. I don't care if the Encyclopedia Britannica dude shows up at your door, with a book that is guaranteed to parallel you with Einstein. "Only $29.99, on approved credit". Send him packing. If the extra cash isn't in your stash...then it's a...no!

#2. Do not spend any of the money you have saved for closing (per the suggestion of you lender). I have seen this mistake. "Well, we have 30 days to replace it. I have that bonus coming in. I was promised overtime this week." A month comes and goes quickly, sales quotas don't always get met, and overtime should never be in the same sentence as, promise. Leave the stacks be.

#3. Don't get married. Now, the title issues are all messed up. Don't get divorced, either. Just chill for 30ish days. Your honey will still be around; and, unfortunately so will your ex...lol.

4#. Don't take a new job...and, for god's sake; don't quit one! I get that it's an opportunity of a lifetime; but, any respectable company wanting to hire or promote someone equally respectable (insert your name) will understand you are in the middle of buying home. Change the date on your offer letter to match your CEO (close of escrow). And, if you quit your job...um, how did you think you were going to pay for your new house? Right.

#5. And, finally...don't transfer big chunks of money from one account to another. I know, how could this make any difference; it's still your money, in your accounts. Here's a little insider tip on securing a home loan...it's all about "the trail". The paper trail that is. When you buy a home, you will be asked to provide more paperwork than you ever have in your lifetime, or that to come. So, if you know a potential home purchase is on the horizon; save every paycheck stub, direct deposit receipt, pay off letter, wire transfer record...heck, even keep you receipts from your last Starbucks purchases (I'm sure they will want it to verify cost of living expenses; I normally write if off every year, as therapy).

Break your heart...Break the bank

These mistakes could be costly; not, just financially, but emotionally. Imagine the scene...boxes neatly taped, labeled and stacked to load on a truck, going to your new home. All the dishware is secured in bubble wrap, which means dinner at fast food joints for the next few days; but, you don't mind. You are about to move into YOUR own home. No more rentals, no more living with friends or family. And, you love this place...it is not just a house; but, a home. The circular driveway, french doors off the kitchen, and stone fireplace welcomes you into the family room. Sigh.

But, you can't return a car...no changing your mind. You can't instantly remove a credit inquiry, that has brought your score down to a non-qualifying state. These things, along with a variety of other derogatory marks cannot be easily removed; which changes your DTI (debt to income ratio). That's it...no new home.

Therefore, by taking heed, and following these few simple rules...that hope for a cozy new homestead can happen! First come the keys; then comes the Klaussner. When it comes to home ownership; there are no sweeter words than "clear to close".

The TRUTH about public real estate websites; and, what they don't want you to know

"Um, I was wondering if you could check #527345, I saw it on Zillow. Oh, okay...how about 2777 Main Street, in OKC? Hm, alright then...weird, I just saw it on Trulia, an hour ago; how could it have sold so fast?" Sound familiar? Realtor or client, the conversation is always the same.

Why bother be authentic?

As a real estate veteran, I can promise you...I work hard. Long, number crunching, researching, taxi driving, prospect marketing hours. The BMW I drive; that did not come easy. That vacation, I finally took, after 2 years; I invested 70 hour weeks to pay for it. So imagine how it would feel when all the time and energy that you invested in your business, was stolen by someone else. And not only was it kidnapped; but, the numbers were changed, the text was re-written, and the dates were all wrong. Let's add a little more ammo to this feeling of frustration...in order to get your work back; you have to pay the assailant. Your own work being held for ransom. What I just described is happening to me, and Realtors like me everyday by heavy-hitting aggregators (company website programs that collect data and sell it back to the consumer). I'm not naming names; but, they rhyme with Pillow and Sophia. Take your best educated guess.

If I sound angry...you bet I am! As are many, many, many more of my contemporaries. Even those of us who have fallen into the trappings of the smooth talking CS agent who cons us into believing that we will fall desperately behind the tech 8 ball, without their services. I'm not going to lie. I paid. I did (where's the emoji of shame, when you need it). However, I have recently joined the ranks of the real estate sales professionals fighting back. I will not be cyber bullied anymore; and, truth be told...I hold the power. Without me (us, Realtors) these companies would have no business. We are finally beginning to depress the "blocked" key.

Oh sure...I want to waste my time, too

Well, blah, blah, blah...yay for me! What about you? The client. This little rant, and the potential resolution of the matter; could be more significant for you, than it is for me. Do you recall the first paragraph of this post? HOW many times has this happened to you?!!! Inaccurate addresses, wrong prices, availability not updated? Exactly! It is the most exasperating experience in the world (okay, not the world...but, pretty darn close). You want to get real? No one likes to waste time. Period. I don't care if you have the patience of Gandhi...no one likes to expend moments, carelessly. Time is money. Time is experiences. Time is valuable.

That said, this is the very reason that many people search for homes online. They supposedly save time; and in theory that makes sense. Yet, if you are using "Pillow or Sophia" type websites to search, along with various other public real estate search engines; you might as well, just get on the autobahn and toss your Timex out the window. Basically, you are driving on a high speed freeway of intersections and detours, that all reach a dead end.

Pull over...let me off here!

So, what do you do? What do I do? What do we do? We quit. We fire these search engines. I have been telling my clients for over a year now; don't trust the data on these mega home probing generators. I am person that needs more than "because I said so" to stop or start a quest. Therefore, I have some REAL facts, that might help you reach out to a Realtor instead, in your future property explorations.

How these "aggregators" truly work, is by shoplifting listing information from real estate professionals; found on various online publications and throughout the web. They then re-word, add content, use incorrect images and specifics (square footage, age, etc) regarding the properties...and re-post them, as their own. Then the "syndicators" (another word we use for them) turn around and sell the Realtors the rights for specific advertising spots, along side a bevy of homes for sale. I can't speak for you; but, how confusing is that? Now, you are not only hoping you are viewing a home with correct data; but, who in the heck has the listing? Which of those 3 - 5 Realtors that I see, is the one to call? FYI...I am the one writing this...and I'm befuddled!

I bet you didn't know any of this; and if not; then "they" have done their job. Keeping you from precise material, in an effort to make the big moola! Their intent is not to make your life easier...it is designed to make them rich.

Rhymes with SOLUTION

My suggestion...stop. Hit the brakes. Get off at the next exit, and stop the madness. If you want to be "taken for a ride"...then jump in the car with a real estate professional; and quit wasting time. Your local multiple listing service (MLS) has a far more credible search engine; that can be used to locate your new home. All you need to do is Google "Public MLS" for your city. Here's an example of one on my website... http://centraloklahomaproperties.com/CMCCOWN.

We are the real deal...have been, are now, and always will be the true source for skilled house hunting, and accurate stats. Beep Beep!

Top Secret tips for finding a home in a low inventory market

I have made a point with my blogs to keep things simple, and fun for the most part. Even with the most sophisticated of readers; there are times we need to give our brain a break. And, because this is basically a blog, and not a a dissertation on the real estate market; vanilla communication seems best.

There has been a lot of speculation lately, especially among buyers; as to why housing quantity is so low. I have been predominately a buyer's agent for my nearly 22 year career in real estate; so, the onslaught of questions regarding this drought ridden property supply is excessive and continual.

Initially, I can't say I knew the reason; and, excused it as ebb and flow of real estate. Yet, as time has lapsed, and the home accumulation has not grown; I felt it time to investigate.

What I came up with was quite interesting; and, helpful as it relates to my clients moving forward in locating homes to purchase.

A little spy work can uncover conclusions

1. After the bubble burst throughout most of the nation, in the mid 2000's; investors and contractors began gluttonously gobbling up property between 2011 - 2013. Prices were incredibly low, as there was stockpiles of foreclosed homes, still just sitting. These properties could be bought for pennies on the dollar, and were! In some cases, anywhere from 5 to 20 properties were scooped up by LLCs in a single month. So, yay...great for them. And, boo...bad for everyone else that wanted an opportunity to buy a home. Well-off business people pushed many first-time buyers right out of the market, with slam dunk cash offers. Nothing secures a contract better than cash and a quick close (except maybe the word "as is") in the purchase agreement.

2. Interest rates dropped to historical lows during this time, as well. In 2012, mortgage rates dipped into the low 2%. Many folks that were fortunate enough not to have lost their homes in the recession, refinanced; and, some miraculously found, not yet spoken for properties to purchase, at rock bottom rates. So how does this effect today's market? With significantly low house payments, many have no interest in selling, now; or, any time in the near future.

3. More millennial buyers. That age group, between 24 - 35 are now ready to buy! Plainly stated; with more buyers out there scrounging for scraps, what is left are crumbs...molecule, at best.

Well, there is it is; a few solid reasons that we are experiencing the ghost town sound of gently rolling tumbleweed blow through this market. Will it recover you ask? As many of us say, in sales, of any kind...if I knew the answer to that, I'd be a millionaire. However, statistically real estate is an ever moving market. It never stays still. So...yes; it will recover, and then decline...wash, rinse, repeat.

Top Secret tips save the day

Well, I promised some secrets; and being honest, I can't say these are tips that have been buried away in some bound treasure chest, on a deserted island. But, currently, they will help in this Sahara dry industry.

1. Get a good (I mean very good Realtor). In this market, you will want to find an agent that works with buyers, almost exclusively. Most salespeople know how to work with both buyers and sellers; but, each have their preferences and strengths. Therefore, in a crawling commerce; a buyer's agent, is best. The reason for this specific relationship is...skill. A buyer's agent knows to research often, move fast and negotiate strong. If you trust your Realtor; now, more than ever, you will need to trust their advice. This will be the difference between wining the bid in this multiple offer arena. All you have to do is lose the proposal once; to know you don't want to go through that, again.

2.  Make Craigslist your new BFF. Along with CL, start hanging out on the weekends with FSBOs (For Sale By Owners). Disclaimer: be sure you still have your Realtor intact; the only thing worse than losing various offers; is losing the house you love, because you attempted to do it without a professional. Remember, you do NOT pay the Realtor, as a buyer. So, please don't let the FSBO's convenience you, that you will get a better deal if you cut out the agent. This is a lie. You may save "some" money if all goes without a hitch; but, then again...you may lose the home, time and a whole bunch of court fees, when the deal goes south. Not trying to be nasty; but, let the seller deal with how to come up with their commission.

3. Again, as mentioned in the scenario #1; the experience of a good and hard-working agent is crucial. Request your Realtor visit your local county assessor's website; and take an inventory of names and contact information of neighborhood homeowners. Then ask your agent, to kindly reach out to these sellers; seeing if they may be interested in selling their home. It's never good to assume, that just because a home is not on the market, that the occupant inside, isn't considering selling it. Perhaps, if a professional with a solid buyer, knocked on their door (so to speak) with this information...they might just sell! It's happened; more than once.

Clearly, in this parched real estate bazaar; a good (no, great) real estate salesperson is your best bet! An expedient and adept Realtor; will become your..."secret" agent; able to turn into Super Sleuth and discover your clandestine dream home.

How this ONE thing could kill your home sale

I feel comfortable, putting it out there; even if the only property you ever bought or sold was on a Monopoly board...you more than likely know what an appraisal is.

Cars, jewelry, art and antiques...just to name a few, are items that can be appraised. The purpose of an a appraisal is to advise you of the value of an item. The need for this information is to protect the consumer from overpaying for product(s). In real estate, the dynamics of an appraisal are a little different from those commodities, just mentioned. It can be important, both in the hopes of under-paying (this allows you to walk into a nice chunk of equity); as well as, being assured you are not purchasing too high, in the surrounding market.

Car, dog or thimble...value still has to happen

If your unfamiliar with process of a home appraisal; let me take a minute to help school you.

So, you buy the home of your dreams (okay, the starter home you'd consider); and, you are willing to pay almost any amount of money for it. It's the perfect location, the best schools, close to amazing restaurants, and hip coffee shops...whatever your thing is. You've been looking forever, or maybe you just started; and, the housing market is smokin' hot (again, for sellers)! You've been instructed, if you find a place you love; it needs to be snatched up! Positive that you have found "the one", you make an offer; they accept. Cool. Schedule inspections, order title work and an appraisal. Awesome, inspections are clear, title commitment in; Aaaannnd...the appraisal, doesn't appraise. Huh? Now what?

Or, maybe your a homeowner who is trying to cash in on this seller's market, by way of frenzied multiple offers being tossed your direction. Here's the problem with your potential pay dirt sales contract; unless your buyer has the ability to whip out his Black American Express Card to pay over the asking price; then, you can count on the average buyer digging really really...really deep into those non-designer jeans for that cash. Anything over what the appraiser says is value, is the buyer's debit, most the time. No deniro...no deal.

What happens if I can't collect $200 at GO?

In either case, you can clearly see from these examples, the effect of an appraisal; and the critical need to have an accurate one. Nonetheless, this brings me back to the question; what happens if the appraisal comes in too low? How is this deficit fixed, provided the buyer isn't either willing to, or able to pay the difference between the value of the property and the sale price?

Here are a few options:

1. Have a bomb diggity, Realtor that is on top of that low appraisal report. Basically, your agent should be calling other sales professionals, who have listed properties in the area, and that are now pending for stats. Appraisers are not able to use homes that have not yet closed, as a valid source for comparables. Therefore, your Realtor needs to do their research, to obtain exact closing dates, and sold figures in order for the appraiser to consider a review. Also, looking into the county accessor records for the subject property, and neighborhood sales is another solid way to build value. Your Realtor can then forward this information to the lender, who can share it with the appraiser; and in most cases you can get that value raised. Thus, eliminating the problem.

2.  "Can't we all just get along"? Everybody agrees to a little movement. In the most simple terms; seller comes down in sales price, and the buyer comes up in equal amounts. If you have a home that is in contract for $300,000, and the value came in at $285,000...then seller comes down $7,500 and buyer comes up $7,500 (without liquid assets or cold hard stacks; it would need to be built into an increased approval amount). The bridge has been gaped and the deal is still strong.

3. Seller won't budge, buyer won't budge; now, purchase contract won't budge. Deal...dead.

Got Boardwalk Place? Don't get greedy

You may be the Monopoly King, and, every Thanksgiving for the last 20 years, you've beat everyone in your family at the game; but, in the real world of buying and selling, Boardwalk Place cannot be sold 10 times more than it's value. Unless you plan on passing GO a few dozen times to pay that ten fold difference; your best strategy will be ask a fair price, and getting an equitable deal.

Reason has always existed, but not always in a reasonable form.

Karl Marx

STOP! How to get Realtors to stop calling, endlessly.

"Stop calling me! Don't send me anymore emails, text messages, postcards, flyers, calendars, magnets, pens, etc....get it"?!!!

"Why in the world do real estate companies make public websites available, so I can look anonymously; but, then require me to put in ALL my contact information to access them? And, then start with the endless and relentless contact efforts. Don't they get it? If I want to talk to a Realtor, I will find one and call one. Ugh".

I totally get this...and, I'm a Realtor! I hate shopping for cars, insurance, furniture; actually, anything that is going to barrage me with unsolicited phone calls or spam. I feel your pain. I do. I absolutely freakin' do.

We are not out to get you

But, can I share something with you? I don't know about any other real estate professionals out there, but, I do know for myself; my initial contact, sincerely is to help. You can trust me (funny, all salespeople say that), when I tell you...it is not all about the money. Honest.

I wrote and published this blog, to help alleviate some of the pressure you feel when the onslaught of "reach outs" begin. Simply by knowing that we really can take "no" for an answer; and, we aren't trying to convince you to buy a home or sell yours in first 30 seconds of communicating with you, may ease your mind.

I'm confident, it's a mixed bag of property peddles out there. Everyone from Guido on the corner, with his trench coat full of keys, belonging to the most decrepit fixer upper; to Mother Teresa speaking blessings over your new Habitat for Humanity home. So, how do you know which one is Mafioso and which one is divine messenger, before answering the call? You don't. That's the truth.
But, at the same time, you do need a car, insurance and a home...or you wouldn't have inquired. Come on, now...I do have a good point.

Accept it...and have a little faith

However, acknowledging and accepting the fact that these two types of Realtors exists; will help you squash the feeling, that all of us are on the side of evil telemarketer. Understanding, for as many whack jobs that are floundering about; there are equal amounts of genuinely caring agents, that really, really, really want to help. We will assume, that not every prospective client is in their line of work, just for the money. Neither are we.

Okay, so my linear blogging sucks today; but, what I am aimlessly trying to express is...take a chance. We won't ask you for your home address and be pounding on your door in 5 minutes, invite you into our office to sign your life away to a mortgage, or send you an infinite email campaign of properties...and heck if we do, tell us to stop! This is your property journey. Your choices.

I say live on the wild side, have a little faith in people, Respond to an email. Pick up the phone. Send a text back. Give us an opportunity to show you, our style of relating, our education, our experience, our passion for you, our new client! Nothing is more exciting to me then speaking to a budding new client, that took a chance, and spoke with me; and, I know soon I will be handing them the keys to their little piece of the American Dream.

Take a chance. It's worth it.

You're taking a gamble on real estate...why not take a gamble on a Realtor. The odds are in your favor (and we do comprehend the term "just looking").

Take a chance! All life is a chance. The man who goes farthest is generally the one who is willing to do and dare.

Dale Carnegie

Read more at http://www.brainyquote.com/quotes/quotes/d/dalecarneg132642.html#RjvMyfCZZ5mRs0Qx.99

Could you do a Munster Mansion make-over? Are you sure?

Ooh my gawd!!! It's perfect! Uh, perfectly...awful. I have yet to figure out the intense longing and attraction some buyers have for what I fondly refer to as a "Munster Mansion".

How and Why? You're sure? 

As my clients and I, venture out on our pleasant little tour, in an effort to locate that darling little home, on that happy little street; something goes wrong. Terribly wrong. One wrong turn, one wrong light, one wrong address; and, there it is...watching, waiting, ah heck, beckoning. The spook house.

I am not literally suggesting the house is haunted; but, I am saying, it looks that way for sure! Yet, beyond any comprehension I can muster (um, I mean Munster) up...my client falls in perplexing love.

Moving forward, every visit to the property feels like I should be decked out in Van Helsing garb; as we drudge through the "how many millions might this cost to repair" inspections. And, still...they yearn; and ultimately they win...the zany house of their dreams. But, at what cost? Grandpa may need to come up with some mystic concoction down in his lab, in order to make any respectable loan happen.

Where's the cash stashed?

So, could you do a Munster Mansion make-over? Are you sure? Do you know what it takes?

Have you tumbled deeply into the vortex of passion for this fixer-upper; and, feel confident you can do it because you watch HGTV? Only, because I am ridiculously infatuated with Tim Burton; my heart "hears" your heart for this new home...and, with great bewilderment I want to help you.

To start...well, where do you start?!!!

FHA and VA loans

If you have a VA or FHA approval, we can now stop. Withdraw your offer, if one exists. Or, I plead of you, don't fall in love with this kind of home; it will only end in heartbreak. Why, you ask? Because, these two loan programs won't touch this creepy abode with a 10 foot pole. They are not in the habit of loaning on "high risk" homes. It's the government, what can I say.

Conventional loans

Personally, I lean more toward a liberal side in most everything; but, conventional loans are one thing I can get my Adam's Groove on to! Conventional loans have far less restrictions (doesn't this seem like an oxymoron; conventional = less restrictions) compared to FHA and VA loans. Basically, if you want to buy a decrepit real estate project, the banks are cool with it; but the down payment assistance option, associated with FHA and VA are null. Most conventional loans require a minimum of 5% down (but, hey if you are buying a fixer upper to begin with; you must have some money buried in a revolving library door, somewhere).

Rehab loans:

Here is where the marriage of FHA and conventional meet! You do have a couple options with these loan programs.

203k Original - Full and Streamline loans. These loans allow you to buy your favorite money pit property, and with the help of a HUD inspector, certification and a little elbow grease; you could have your dream home. In essence, these programs wrap the repair costs and the purchase price together. I believe they have recently opened up this type of funding for investors and 2nd homes, as well. It's a beautiful union.

In my opinion, one of the best websites on the web for this information is http://203k.tv/. The details of these loans are outstanding (and, they have a really awesome website, too)!

401K loans:

I don't profess to know very much at all about these accounts; but, I do know that you can request a withdraw for home purchases and/or remodels. Best to check with your HR department on this one (What? I can't know everything; real estate is MY thing).

Bring on the ghouls and tools

Still think you can take on a spooky and kooky crib? Yeah, me too. First-time buyer or experienced property professional; just knowing there are lending programs out there for you. My motto in real estate has always been...if it speaks to you, it's meant for you. However, in this case if it "speaks" to you...time to look for a new place to call home!

Taste testing homes...How many is too many?

I want it all! Wait, I need a minute; I have no idea what I want. As Forrest Gump so famously said..."life is like a box of chocolates". And, so it is, in real estate, too!

The process of taste testing

A very common apology I hear when I have been out showing property a few times, with new clients is...I'm sorry. Apparently, they feel the need to apologize for looking at too many homes. Understandably. After all, there is a common myth roaming about the universe, that Realtors become impatient and frustrated when they have to show more than 5 homes to their new clients. Umm, no. I can assure you, if you have a real estate agent with a true passion for helping folks, and they love what they do; this rumor regarding your cut-off is just that, a rumor. You're not in a bar.

In reality, it is our job to make sure that we guide you into an organized and efficient tour of homes; as this makes your ability to choose, easier. But, the operative word here is...guide. There should never be a set number of tours in place, in order to accomplish this decision.

Whether, you're relocating or looking for the first time, in your own neighborhood; we anticipate it taking a little time for you to decide. One of the funniest things, I continually experience with buyers is the "kid in the candy shop" syndrome. The prospect of what can be uncovered when we start your journey; is much like a mixed box of chocolates, not yet bitten into (don't lie, we all poke a hole in the bottom to taste test them). Our reactions to homes are nearly the same; everything from "ooh..aw" to "OH...no"! Yet, at some point, when these eclectic groups of delicious homes, are all finally revealed; it leaves you feeling feel full, and little bit queasy. The excitement of what's inside, has given way to..."I'm good...I know what I like, now". It never fails.

However, this process is important for you, and important for your Realtor, too. It should not be skipped over, or become a source of irritation for buyers or agents. Without this step, you truly can't fall in love with the right house. For without this piece of the puzzle, you will always have that nagging feeling of "is this the right home"? Yet, just like anything you put your heart and soul into; and, all things that require hard work and patience...the reward is so sweet! Because, of this taste testing process, you are confident that you have found your dream home! And, for your Realtor, there is a sense of accomplishment, in allowing this development to happen and savoring the results.

Try not to be glutenous

However, a word of warning to buyers...there is a point in which your sampling becomes glutenous; this is where your Realtor's guiding becomes important.

The truth of the matter is, there is probably less than 10 styles of homes out there. You have, traditional, contemporary, Victorian, mid-century, cottage, cape cod and patio style homes. Throw in a few A-frames, organic-green huts and a houseboat to round out your option list...and that's about it.  Basically, what I am trying to say is...you can only see so many types of houses; so please, cut yourselves and your sales agent a break, and don't look at them all! It will confuse you, I promise. The only element that truly changes within these various home designs, is the finishing. Finishing is considered...wood stain, fixtures, carpet and wall color, etc. At the end of the day...like the house? Like the location? Like the price? Then get a carpet allowance...and "like" the purchase agreement!

There is an exception to this rule, a Seller's Market. What's that, you ask? Too little inventory, too many buyers. If you don't want to be searching for a home the rest of your ever-lovin' lives; then follow this recipe...love it? Buy it! If not, the 5 other Realtors faxing over offers, will be happy to have their clients take it off your hands.

It's not just a home

When all is said and done...how many houses is too many? Use your common sense. If you were a Realtor showing someone property, at what point would you think..."enough is enough"? Your response to that question, will be a good gauge. By the same token; you should never feel rushed or pressured. Nor should you get a vibe of exasperation from your Realtor. Your not just buying a home; your buying pride of ownership and a life-time full of memories.

So, go on...taste 'em all! It's all good.

What have you done for me, lately? Your Realtor's role.

What have you done for me, lately?

Remember that mega popular song by Janet Jackson, "What have you done for me, lately"? Do you feel like you should be belting out a karaoke version of that; as it relates to your Realtor?

This poses a good question...what exactly should you expect from your Real Estate Agent? And, more importantly; have you been receiving it?

Well, at the very least a return phone call by the end of the business day; and at optimum service, a pro-active email or text, every few days. Even if it's just to tell you..."nothing is new, all is still good and I just wanted to say, hi". I find it pathetically sad when I speak with new clients who have fired their agents, and share their stories, that they often wouldn't hear from their sales professional for several weeks! Huh? Whether you're making a $100,000 purchase or a million dollar buy; personally, if it was me, and that was my experience; I'da moved on to a high decibel version of Michael Jackson's "Scream" by now!

So, what should you expect

So, what should you expect between "I forgot your name, after I wrote the contract", and "I'm just making my 20 minute check in call"?

To begin, education is a good step. Most first-time home buyers, or folks that haven't had a home in years, aren't sure how to build a bridge from visiting the real estate office, to visiting the title office for closing. Here's the part that kills me...clients think they have to have the hammer and nails to do it, themselves. What?!!! At no point, should you ever feel concerned you are asking too many questions. And, if you ever do, Donald Trump's catch phrase "YOU"RE FIRED" will suffice. A good Realtor will expect you to have many questions; and, be happy to help you through the process. Remember, there are no dumb questions.

My personal style is simplified and visual. When I say simplified, I am not indicating that my clients are not wonderfully intelligent people; but, hey...when you don't know something, you don't know it. I always think when I'm learning something new; get me from point A to point B, in the most remedial way, and we're golden!

6 simple service points

Great...yah, yah, yah....I still haven't really answered the question, specifically; what should I expect from my Realtor.

Here ya go...

1. A visit, to sit down and discuss the process of buying and/or selling a home. This conversation should include every aspect of what will happen from the visit you are currently having; until the minute they hand you your new house keys.

2. Various options to stay in contact your agent; ie: email, cell, office number, etc.

3. A commitment of time, in which they will return your calls. I find you can plan on failing, if you fail to plan. As in any good relationship; you have to lay the ground work of expectations, as well as, the no-nos in order to keep the relationship healthy. Assumptions. Bad.

4. Your Realtor will be aware of your time lines for inspections, reports, contract addendums, and so on. These time lines are critical; because; if you miss them, that home is yours now (regardless of what's on the inspection). #moneypit #theburbs

5. Granted your Realtor is not your lender; however, it wouldn't hurt your Realtor to reach out to your lender, and make an introduction. My MO as a real estate salesperson, is keep my hand in the cookie jar. Honestly, I don't care if the loan officer is offended that I call often to check on things. Yes, there is borderline obnoxiousness; but, that's not what we're talking about. In example, if you are a music producer (let's just go with that theme in this blog) and your son, daughter or best friend just got a contract with a major record label, but had no idea what any of being "signed" meant; would you lean back and watch at a distance, or keep an eye on it, to make sure they were protected? Get it? Exactly. So, heck ya...contact with the lender should be expected.

6. Even I don't fully understand the title company and what they do; but, they're awesome! In my mind, they are a company operated by The Great and Powerful Oz. I drop the check off to open your escrow account; and, 2 and half weeks later, they call to say it's magically clear and insured. Lol. Well, okay, I might know a little bit more. Basically, the title company makes sure there is nothing on the title that is an issue. For instance, a lien placed on the property, a city, state or government restriction, flood zones, etc. But, yes...your Realtor, does need to let you know, where, when and who is the title company you've chosen.

Comprehension vs Practice

Trust me when I tell you, there is a whole lot more involved than these 6 points, noted. However, the motive was to let you know, what you should expect from your Realtor. Regardless, of how busy your Realtor is (that is never a good excuse) contact is essential. If we are doing our job well, and we truly understand the mindset of a first-time or re-entry home buyer; then we comprehend the need for communication. We comprehend it, and we practice it.

If you find yourself humming along to Janet's little tune, after having left the 40th voicemail message in 10 days...it's time. Like that Disney Frozen chick sang..."Let it Go"! It's your cash, it's your home, and it's your journey. Ask away. Ask away. It's all okay!

What kind of real estate client are you? Your answer determines your success.

Diva? Doormat? Determined? Which of these personalities are you? In the daily grind, it may not matter who you are. But, as a client, in the vast sea of real estate; it will determine your success, or your failure.

After years in this business, I have been able to pin a specific title to groups of people, with certain characteristics; and each of these titles is significant in relating to their style of buying and selling property.

Let's begin with the Diva

He/She comes to the table with one, of two (and sometimes both) mindsets. First, "I know everything" and second, "You know everything; so, I'll do nothing". Here are the obstacles with each mindset. If a Diva approaches the home buying or selling process with a "I know everything way of thinking"...why the heck are you calling me, then?!!!  We both know you are never going to listen to a thing I say; since, well...you now everything! Diva #2, client knows nothing (or more importantly pretends not to) so your Realtor is going to need a good pair of waders, because they are about to go in deep. Basically, your Realtor can forget their relaxed dock pole fishin' days. You are expecting them to catch a big mouth bass, and you will not be handing them so much as an itty bitty worm to catch it with. Problem, I can't read your mind, I need a sea mate, and I know you know a little something about property; because, truth be told, you became a Diva because you are giving The Donald a run for his money.

Diva Solution: Give me the opportunity to be the expert; you did call me. Also, it wouldn't hurt for you to reach into that bait and tackle box, and pull out a fishing line strung with interdependence. After all, it is your investment.

Doormat

Just as it sounds. "I don't really know what I'm looking for...I'm not sure why I'm looking...Well, the other agent told me to...My brother said I should..." How do you get out of bed in the morning without a coach and a cheerleading squad? When it comes to real estate, you have got to have some concept of what you want. That doesn't necessarily mean you need to be assured of the exact home design, bedrooms, baths, etc, etc. However, you do need to know important things like, when you want to move, what your loan looks like; and, if in fact you are sure this is what YOU want to do. Please, never knock on the door of a Real Estate office (well, in this age of electronics..send an email) because your mother's best friend's cousin told you it's a good time to buy. For god's sakes, if you like your rented studio apartment...stay!

Doormat Solution: If YOU really want to buy; then do it "like a boss"! Use your words, pull that big voice from your belly...and let's go buy a home!

Determined

Let me just say, if you are this kind of client...I love you; and you should love you, too. Reason? You will be a success in your real estate investments, before you every need to tweek a thing.
You are best described as decisive, pro-active and a team player.

Let's take a minute to break down each of these adjectives

1. Decisive. You have already decided you want to buy a home.

2. Pro-active. You have also determined, that to do so you need to visit a lender to qualify (this will include checking your credit). The lender can tell you what your purchase amount will be, what your payments will look like and how much money you will need to close the deal. Additionally, the Determined client will have considered, area and specifics of the home they are looking for (this is not necessary, just a plus).

3. Team Player. In all honesty, this is the most important aspect of this triple-threat combo. Regardless of your decision making abilities, and your awesome "go-getter" attitude; if you can't be cooperative, and considerate in the home buying or selling process, it will fail.

Your success

Your success ultimately boils down to how willing you are to listen to the voice of experience, combined it with kick-butt decisiveness and determination; and, finally being as eager to follow the necessary steps to home ownership, as you are prepared to bait the hook, be the sea mate or share your research like a champion angler. I promise you, your internal rudder enveloped in these attributes, will guide you to real estate success!

Buyer Beware...A Whole Different Meaning.

Have you ever heard the saying "Buyer Beware"? I am sure it's a commonly used phrase as it relates to the sales industry. "Buyer Beware" of the shady car salesman. "Buyer Beware" of the mechanic who insists your car needs all the repairs, now. "Buyer Beware" of the Realtor who wants to list your home or sell you one, with no regard for your best interest. Well, "Buyer Beware" took on a whole new meaning for me, lately.

The Perfect Realtor

Recently, while meeting with some new clients, that I agreed to work with after they had fired their previous Realtor; it dawned on me that "Buyer Beware" has numerous meanings. Apparently, these folks had been through a string of agents, because many of them "didn't do their job", according to the clients. Quite frankly, I know some of these real estate agents and they are experienced, respectable salespeople! This started the wheels turning in my mind regarding the pitfalls for clients purchasing or selling property. More, specifically, is it critical for property consumers to be as mindful of the sinking hole home, as they are the "perfect Realtor"? In reality, there is no perfect Realtor. However, in an effort to find that individual, they may be passing up many very good Realtors. When we think of that phrase, "Buyer Beware" we often associate it with tangible situations; but, how often do we fasten it to emotional alerts? Simply stated, does our vehicle have to stop, or our pocket book become drained in order to be consumer cognizant?

So, I posed this question to myself..."if I were a client, in search of a Realtor, what would I be looking for"?

Answer...experience, integrity, passion and empathy. Hmm, empathy. That seems like a strange word to use as it relates to my self-imposed question; yet, after seriously pondering it...not really.

Empathy and Bonding

Take this into consideration; when we meet someone new, business or personal, what is it that connects us to that person? Similarities. Those similarities might be children, work, spouses, friends, hobbies, etc. These strangers tell us a story, and then we share one much the same, and so on and so forth. At some point, one of these stories will involve a situation that may have been frightening or trying; and, because we have related to one another's stories, we now can empathize. And? Well, once someone empathizes with us, we begin to build trust; regardless of the amount of time we have been associated with them.

But, how does the correlate to real estate? And, more importantly, how does this translate to "Buyer Beware"?

Think of it like this...whether you are purchasing a home for the first time, with little education or you are a seasoned seller; you want to be assured that the Realtor you will choose, can relate to your situation. If he/she can closely feel your history, in essence have empathy regarding your fears, lack of knowledge, past negative experiences; then you can feel confident that they too, having been through these experiences, will make every effort to prevent these same hardships from effecting you. Basically, the Realtor's empathy becomes your guarantee of protection.

So, again...how does this translate to me, personally having a better and different understanding of the old phrase "Buyer Beware"; and, how does it have real significance for you, the property consumer? Because, as important as it is for clients to avoid the money pit homes, shady loan sharks, or turn and burn agents...it is just as critical that consumers diligently seeks the right agent. Not the perfect agent. Experienced. yes. integrity. yes. passion. yes. Empathy...absolutely yes.

"Buyer Beware" of the piranha pool...instead, fish for the Empaths.

http://www.empathtest.com/ Like to know if you're an Empath?

"We have been talking about buying our first home; what do we do next?

"We've been talking about buying our first home for awhile, and we are ready. What do we do next? Do we contact a real estate agent?"

This is a common question with new home buyers. You'd think that would be the next logical step; but, there is one very important step before finding the Realtor...find the lender! Of course most Realtors can direct you to a good loan officer or bank to get qualified; but, it might not be someone you are comfortable with; so I suggest doing a little research on your own.

To begin, get referrals; that's always the best way to go. If you are new to the area or don't know anyone who can refer you to a lender; Search the Internet and thoroughly investigate offerings for details. Advertising can be overwhelming, so squint through the mountains of ads to look for qualification requirements.Take notes and have questions prepared. The mortgage lending industry is electronic, everything is available to you in writing instantly. Once you've communicated, either by email or phone with a loan officer you feel comfortable with; schedule an appointment to meet in person. The loan officer, should give you a list of items you will need to bring with you, for pre-qualifying.

Anywhere from 3 to 7 days is how long it can take for a pre-approval. Pre-approval is different from pre-qualification. Pre-qualification in essence is having the loan officer review your documentation and saying "yep, based on what we are looking at in front of us, you qualify for home loan". A pre-approval is when your documentation has been forwarded to the underwriter; where they go over it in detail to determine if your ratios, income, credit, etc. look right for a lender to fund the loan. Upon the completion of underwriting, you will be informed by your loan officer that you have been pre-approved. The loan officer will then provide you with a letter to take to a Realtor; this allows the Realtor to know how to help you in your home search.

Trust me when I say it is best to take this step first! Most qualified Realtors will not show you homes without that letter of pre-approval. One reason is they need to know "what" your purchase power is, in order to show you the right homes. Second, no good Realtor will waste their time showing homes, only to find out you don't qualify to buy one.

As tempting as it is to jump right into the FUN part of home buying; you will save yourself heartache and time by taking the qualification step first. I can promise you, we are as excited as you to search for your new home...and even more excited when you come to us prepared!

"Helping Educate with the ABC's of Real Estate"

MPP's Q&A...“I am ready to buy my first home, but I am not sure I have enough money for the downpayment and closing costs....

Miss Property Professor’s Question of The Day

“I am ready to buy my first home, but I am not sure I have enough money for the down payment and closing costs. I’m not sure what I need or when I need it. I don’t want to go and talk to a real estate agent until I know for sure I’m prepared for all these costs.”

This may be the number one question I receive from first time home buyers; and frankly, the smartest one to be asking! The last thing you want to do is get to closing day and be short on funds to close. It’s not a pretty sight. Therefore, having a great Realtor, loan officer and title representative is critical. I know there are all kinds of horror stories out there about the gazillions of dollars it is going to cost to buy a home (the truth is you’ll spend more when you sell your home) but, just like the term gazillion dollars is an exaggeration, so is the amount of money you will need.  Granted, things can get pricey...but, that doesn’t mean it is necessarily coming directly from your bank account.

Since 1934 FHA has been offering loan programs to help buyers with the “american dream”...home ownership. In 1944, The Veterans Administration followed their lead, doing the same. Since then bond programs have popped up left and right offering down payment and closing cost assistance to everyone from teachers to firefighters, and everyone in between! Upon meeting with your loan officer, you will be able to find out which, if any of these programs you can qualify for. So, given you receive approval on an assistance program...it’s all good! NO $$$ out of your pocket for the down payment.

As scary as it is to go there….closing costs (eeeeeeeek) again, not as bad as the urban legends make them out to be. I’d say in 4 out of 5 purchase contracts, the closing cost can be written into the offer (even if you are using a conventional loan. It’s pretty easy to follow…

Purchase Price: $100k

Estimated Closing Costs: $5k

Offer: $105k (purchase price + closing cost)

Seller agrees to credit back $5k to you for closing costs; bringing the purchase price back to $100k. This covers your closing cost without having to take money out of your wallet up front. Keep in mind this is only an example (in real estate everything is an estimate) until closing day!

So, see there is no down payment demon out there...lol! No closing cost spook! If you are ready to buy, you’ve been to a lender, have your pre-approval and safely ($1,000) in bank reserves...I’d say DO IT!