Austin Real Estate Podcast with Rosie Hayer

“Business is not as usual as it was since the shutdown was imposed. Whether you’re brewing a new idea or trying to save a dwindling business model, there’s no doubt that everyone is being pushed to adapt and evolve to the changing economy. On this week’s episode of Level Up With Rosie Hayer, Dr. Mark Sweeney of Austin Dental Spa joins us in an interesting conversation about the lessons that business owners can take away from navigating this crisis.” Business is not as usual as it was since the shutdown was imposed. Whether you’re brewing a new idea or trying to save a dwindling business model, there’s no doubt that everyone is being pushed to adapt and evolve to the changing economy. On this week’s episode of Level Up With Rosie Hayer, Dr. Mark Sweeney of Austin Dental Spa joins us in an interesting conversation about the lessons that business owners can take away from navigating this crisis. Draw the line In this case, literally. Dr. Sweeney imparts practical advice of taking a horizontal line test when trying to assess a difficult situation. Draw an imaginary line, identify the two sides of the circumstance, and determine in which side of the line you are positioned. Looking at things this way makes you a wise thinker, helps you be in control, encourages you to let go of the uncontrollable, and allows you to rethink your purpose as an enterprise. By understanding your positioning, you equip yourself to adjust to disruptions and find ways to add value to your customers. Build trust and relationships Especially in a time where fear is at its peak, it’s important to serve as the crutch of the people you serve. When providing any kind of service, you must not detach yourself from your customer’s experience. Instead, you must immerse yourself in the commitment they make when they build connections with or through your business. For Dr. Sweeney, it’s the fusion of empathy and expertise that puts the quality of your service to a deeper level.  Resolve problems holistically For someone who has practiced and mastered dentistry for decades, Dr. Sweeney contemplates on the power of taking preventative measures. Here, the conversation revolved around the importance of providing holistic solutions through your business. This means solving the problem at hand and going beyond that by educating people even before they experience the challenge. By being in touch with your customers’ needs, you give yourself a massive space to grow your vision and expand your venture even when a global disruption intervenes. Simplify the system One of the most powerful lessons that the crisis taught us is simplifying life as we know it. Nevertheless, this slowdown did not mean a step backward. The sudden turn of events motivated businesses to improvise methods that will work with the new norm, check old habits that might have been causing a negative impact on their growth, and correct outdated approaches to satisfying customers. As we brave our way out of the crisis, we are challenged to leave our pre-pandemic outlooks behind and bring new methods that will boost our growth as we move onwards. In retrospect, we were indeed caught in a cycle. For a long time, life was all about winning deals, earning from investments, and expanding ventures. If there’s one important thing that the pandemic taught us, it is the value of reconnecting with our sense of being and extending this personal connection to others.  Level Up with Rosie Hayer is a video series produced by The Hayer Group. We feature inspiring stories of leaders and business owners who share their perspectives about the situations and challenges they face in the new age of business. 

In the second episode of Level Up with Rosie Hayer, we share the virtual space with Paul Campanaro, the team leader of Keller Williams Northwest Market Center, and talk about how leaders rise to the occasion. Here, we identify the questions that a pandemic-proof leader should ask as we power through one of the world’s most challenging crises.  How should we approach the challenge? Paul strikes us with a powerful insight when he was asked about how he leads during a pandemic. He emphasizes that even though we set the biggest goals, we cannot avoid the systems that mold our undertakings. With a massive disruption in sight, it is important to build teams that will run as a unit. Leading during a crisis is not entirely about knowing what exactly we should do now. It’s about finding the right people with the right ideas and realizing the power of synergies that can make change happen. What new discoveries can we take away from this predicament? The pandemic gave birth to problem-solvers. Necessity is indeed the mother of invention as Paul pointed out. As leaders, it is our rightful duty to lay the groundwork and encourage our team to move forward. Where were we? Where are we now? Where are we going? These are the questions we should ask to help us understand the situation and find the right resources to rise from the challenge.   How can we bounce back from this collective fear? The world is not a stranger to crises, but the key differentiators that drove how each situation turned out are the decisions we make. These choices are grounded on our habits, values, and our level of self-awareness. An effective leader, despite the noise, fear, and discouragement, is able to find his center. With all the information we consume every day, succumbing to that collective fear is unavoidable. So one must be eager to connect, understand, and keep a clear mind to lead the pack. How can we learn from the past? The short answer: prepare for the worst. Paul gives us a reality check and reminds us that things might get ugly, especially that the shift we’re facing now is too drastic and abrupt. We were not given ample time to adjust and prepare, and despite being an expert on everything, we’re still not able to decode it. As we’ve learned from the past, a great leader knows what matters to him the most. It is this clarity that will help him face the adversity and remind him of his purpose when the going gets tough.  The pandemic has shown how every industry can easily fall to its knees. Moreover, it revealed the best and the worst of our leaders. As we live through it day by day, we’ll continue to witness what makes a great leader, how their choices can affect ours, and how successful leaders can help us emerge as new beings in the new society we’re building. Level Up with Rosie Hayer is a video series produced by The Hayer Group. We feature inspiring stories of leaders and business owners who share their perspectives about the situations and challenges they face in the new age of business. Watch our latest episode here!  

Jake Bernhard of United Heritage Credit Union joined me recently to discuss the many different down payment options that first-time homebuyers have. Jake Bernhard of United Heritage Credit Union joined us recently to answer a great question from one of you: What options are there for borrowers who don’t have 20% down to put on a home? Contrary to popular belief, you don’t need 20% to buy a home. You can put down as little as 5% with a conventional mortgage, 3.5% with an FHA mortgage, or 0% down with a VA or USDA loan. If you have any questions for Jake about what programs you would be able to qualify for, give him a call at (512) 435-4545 and he’d be happy to walk you through them. If you have any additional questions for us, don’t hesitate to reach out via phone or email today. We would love to hear from you.  

Here’s what experienced lender Jake Bernhard had to say about the most important thing home buyers should do. From a lender’s perspective, the No. 1  thing a borrower needs to do is communicate. Making sure that you, your lender, and your agent are all on the same page is crucial to ensuring a smooth home buying process.  In fact, err on the side of over-communicating, and ask questions the moment they occur to you. Share as much information as you can; what you may not think is relevant could end up being critical info for your lender or agent.  “Err on the side of over-communicating, and ask questions the moment they occur to you.” As our preferred lender Jake Bernhard puts it, “Anytime that a [problematic] situation arises during a home purchase, it can all be tracked back to miscommunication.” In that sense, the home buying process is just like a marriage—healthy communication is key! Remember: We’re not here to judge you or your preferences, we’re here to serve you. So if you have any real estate questions, or you’re interested in buying, selling, or investing soon, reach out to us any time via phone or email. We’re always happy to hear from you. 

If you’re thinking of buying your first home, the first thing you should do is meet with a lender. Here’s why. What’s the first thing you should do if you’re thinking about purchasing a home? The advice we give to our clients when they ask us this question is to meet with a lender. Before meeting with your lender, though, there are a few questions you need to ask yourself, according to Jake Bernhard of United Heritage Credit Union. First of all, how much do you have saved for a down payment? Also, how much can you afford to pay out each month for your mortgage payment? How will that affect the funds you use to make other monthly payments (auto loans, credit card loans, etc.)? Once you know your budget and how big of a down payment you can afford, you’ll have a better idea of what kind of house you can qualify to buy. When contacting a lender, it’s always a good idea to have your financial information at hand. Key documents include your most recent bank statement, your W-2s from the previous two years, and your most recent pay stub. If you’re self-employed, have your tax returns from the previous two years handy.  “When contacting a lender, it’s always a good idea to have your financial information at hand.” If you’re not a first-time buyer but are considering upsizing and think you can double your current mortgage payment, give yourself a couple of months to save the necessary funds. Pretend you’re making a double mortgage payment by putting half of your budget toward your actual mortgage payment and keeping the other half in a savings account. That will indicate whether you’ll be comfortable paying your new mortgage or if it’s too much of a stretch.  As always, if you have questions about this or any real estate topic or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help.

To know how much home you’re qualified to buy, there are several factors to take into consideration. If you’re thinking of buying a home, how do you know how much home you’re qualified to buy? Today I’m joined by Jake Bernhard (NMLS #870775) of United Heritage Credit Union (NMLS #630601) to answer that question.  First, you need to know how much you’re comfortable paying each month mortgage-wise. Then, look at how much you have for a down payment. The key is to find a house that fits within these parameters. You might be able to qualify to buy a certain home, but it may cost way more than what you’re comfortable paying each month.  Everybody is different—some don’t mind buying a house for the maximum mortgage amount they qualify for because they just want to get into that house; others prefer to keep a certain lifestyle (going out to eat, taking expensive vacations, etc.) after they buy a home. The question is, what’s most important to you? Keep in mind that there are other costs included in your monthly payment besides your mortgage payment. For example, you may also have to pay escrow fees or your taxes and insurance costs. If you’re doing a loan with an escrow account, your lender pays these fees at the end of the year (or whenever they’re due). Each month, you pay a portion of these fees along with your mortgage payment. This all-encompassing payment is referred to as PITI (principal, interest, taxes, insurance).  “What you qualify for can vary across town.” There’s another payment referred to as PITIA, where the ‘A’ stands for assessments, or your HOA fees. This might be collected separately from your HOA instead of grouped into your mortgage payment.  When taking into account what you’re comfortable paying, Tax rates can differ depending on where you’re buying, and all HOAs are different so be aware of these factors when buying. If a lender qualifies you to buy based on your PITI but you decide to buy somewhere that requires a large HOA fee—say, a few hundred dollars per month—you might not be able to afford the home you want anymore.  Remember, if you’re looking to buy, sell, or invest in real estate, don’t hesitate to reach out to me. I’d be happy to help.

Today, I’m joined once again by Jake Bernhard from UHCU to discuss the important differences between being pre-approved and being pre-qualified for a loan. Jake Bernhard (nmls: 870775) from United Heritage Credit Union (nmls: 630601) is back again to help me answer some key questions that we receive from buyers looking to begin the process of purchasing a home. Today, we’ll start with one key question we receive pretty often, “What’s the difference between getting pre-qualified and getting pre-approved for a home loan?” Feel free to follow our conversation in the video above or use the timestamps below to navigate our discussion at your leisure: 1:00—What’s the difference between getting pre-qualified and getting pre-approved for a home loan? 2:59—How long does a pre-approval last? 5:20—Does paying for certain things with cash during the loan approval affect your debt-to-income ratio? 6:36—How much can you expect to be approved for? Jake has provided some really candid answers to common questions, and I thank him for spending time to help me provide you with useful information. Please know that if you’re intimidated by these questions or answers or you feel like they’re too much for you to process, you can simply reach out to us. We’ll be happy to make this process simple and fun for you. With lending partners like Jake, we can’t help but have you win when you choose to buy a home with us. We look forward to hearing from you! Check out the UHCU purchase website here: https://www.uhcu.org/loans/home-loans/home-purchase#/what_type_of_property_are_you_purchasing

Today I’m here with Jake Bernhard (nmls: 870775) from United Heritage Credit Union (nmls: 630601) to provide some answers to the most common lending questions we receive. Today, I’ve asked Jake Bernhard from United Heritage Credit Union to help me answer a few common but very important questions about mortgage lending: Do you need a great credit score to buy a home? In short, no. There are great home loan programs specifically designed to help people with low credit scores qualify for a house. If you don’t have an 800 FICO score, it doesn’t mean you can’t buy a home. His company has programs that can help people with scores as low as 600! What kind of down payment do I need to buy a home? Jake has programs that require as little as 3% down on a home purchase. Requiring a 20% down payment is a thing of the past. You’ll always want to factor in closing costs, so depending on how the purchase is structured, for a $250,000 home, you may want to have around $10,000 saved up. There are also VA loans that provide 100% financing to veterans, though the VA is strict about which closing costs a veteran can pay; typically, a veteran will pay only these closing costs in order to purchase a home. That means with no down payment and a contract with seller-paid closing costs, a veteran can come to the closing table with no money to buy a home whatsoever. “If you don’t have an 800 FICO score, it doesn’t mean you can’t buy a home.” What are the key documents to have when speaking with a lender? To be qualified for a home loan, you don’t need to have your documentation right in front of you, but it does help.  When the lender asks for your documents typically, you’ll need two recent pay stubs, two years of W-2s, as well as any documents that help break down your base income and your bonus (overtime) income. The more information you have on that initial application will help the loan officer find the best product for you and let you know if you qualify for it. If you speak with a lender without documentation but you have a general idea of your income, you can still be pre-qualified, and the rest can be verified later. They will double-check this information, however, and they have to go by what’s documented on your tax returns, so keep that in mind when filling those out. How a bank or lender perceives risk might be a little different from what you might think, so it’s important to get started by speaking with a professional to guide you. Please know that if you’re intimidated by these questions or answers or you feel like they’re too much for you to process, you can simply reach out to us. We’ll be happy to make this process simple and fun for you. With lending partners like Jake, we can’t help but have you win when you choose to buy a home with us. We look forward to hearing from you! Check out the UHCU purchase website here: https://www.uhcu.org/loans/home-loans/home-purchase#/what_type_of_property_are_you_purchasing

Don’t forget the closing costs! Learn about what these costs are and how you can get them lowered. I’m joined today by buyer specialist Brittany Dailey, who will be giving us an in-depth look at the closing costs involved in a home sale. To begin, let’s go over what closing costs are. Many people think you only need money for a down payment, but there are many other fees involved. These are closing costs, which are the additional expenses associated with purchasing a home. Fortunately, most of the closing costs are prepaid, such as taxes and insurance. These prepaid amounts depend on your lender and your credit score, but they typically make up for three to six months’ worth of property tax and insurance. Buyers are expected to pay the closing costs in a home sale, but a good agent can negotiate for the seller to pay some or all of these costs. If the costs were $5,000, for example, you could ask for that amount off the list price or for $5,000 in closing cost credit. This could save you around $30 on your monthly mortgage payment or reduce the amount you need to bring to the closing table. “Even in a zero-down situation, there are still closing costs involved.” Even in a zero-down situation, there are still closing costs involved. There are a few ways you can calculate these costs. Typically, closing costs will be about 1% to 2% of the purchase price. If you want a specific number, your lender should be able to find out exactly what you’d be paying in closing costs. Brittany likes to do this up front so buyers know precisely how much the total cost to close will be. Different lenders have different closing costs. Lenders and their title companies charge different fees, and prepaid amounts also vary. Because of factors like these, it’s important to get a second opinion from your agent before choosing a lender.  I’d like to thank Brittany for providing some insight into closing costs. If you have any questions or would like more information, feel free to reach out to us. We look forward to hearing from you soon.

Need to sell fast? Today I’ll share my best tips for selling your home quickly and for top dollar. If you’re in the market to sell a property quickly, here’s what you can do to get it done fast: 1. Set your sales price at or a little below market value. The moment you position your listing below market value, a tremendous number of buyers will quickly show interest. Buyers know a good property when they see one, and because of all the information available online today, they understand what constitutes a fair price for a home. So if your home is in good condition on top of being priced lower than other comparable homes, people will go above and beyond to make sure they get your home. 2. Stage your property. At the Hayer Group, 100% of our listings are staged. Why? Statistically, it takes 90% less time to sell a property that has been staged. Buyers tend to spend a lot less time inside homes that haven’t been staged, since it can feel like the home isn’t quite ready to be on the market. “Even if you have to work a little harder to accommodate showings, please do so—buyers who come in within the first two or three weeks are the most serious.” 3. Take high-quality photographs. Full-time real estate professionals may be great at their jobs, but they might not be the best at taking pictures. Teams like ours hire professional photographers who know best how to capture the essence of your home so that buyers can envision themselves living there even just by looking at a photo. 4. Offer incentives.  I’m not talking about giving away tens of thousands of dollars or changing the price of your home online. Instead, give the buyer a closing cost credit. If you merely change the price of your home online as an incentive to a buyer (say, a $2,000 reduction), that will only change their monthly payment a little. However, if you give them a closing cost credit of $2,000, they’ll actually save that money and be able to use it to buy furniture or appliances. 5. Be flexible with showings. Once your home hits the market, the first two or three weeks are the most important times to be flexible. Why? Depending on your area, there is an average length of time that it takes for a home to sell, and if yours is on the market for longer than that because you’ve been restrictive about when you allow showings, you might have missed out on a prime opportunity. Even if you have to work a little harder to accommodate showings, please do so—buyers who come in within the first two or three weeks are the most serious. If you would like to explore in more detail what it entails to sell a property fast, don’t hesitate to reach out to us. We look forward to hearing from you.   

Should you buy a new construction home or a resale property? Let’s discuss these options today. First-time homebuyers often ask whether it’s better to buy a resale property or a new construction home. In truth, there’s no right answer. It ultimately depends on your circumstances and preferences. Today, we’ll go over a few things you should consider when making this decision. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure:  00:08 - Introducing today’s topic 00:42 - The up-front costs of each type of purchase 02:51 - The importance of working with an agent through any home purchase 03:43 - The three factors to consider when deciding between new construction or resale 03:59 - Common issues that arise during inspections for new construction and resale homes 05:14 - How issues that arise after closing can be handled 06:07 - How to make a home more energy-efficient 07:50 - What new construction negotiations are like 09:10 - The best way to determine what kind of home is right for you If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon. 

Today we’re here to discuss a very exciting question: How do you pay off your mortgage early? How would you like to be able to pay off your mortgage even earlier than expected? I bet that many would absolutely love to know how to do that. If you’re one of them, then you’re in luck: Today I’m going to ask my guest agent Brittany Dailey some questions about plans to help you pay off your mortgage early—plans that the Hayer Group’s buyers are all well aware of. First, let’s discuss the different ways to pay off a mortgage in general. Feel free to follow along in the video above or use the timestamps below to navigate the discussion at  your leisure: 1:08—Making bi-weekly payments2:23—Refinancing to a shorter loan term3:52—How paying an extra $25 a month can affect the life of your loan4:50—The possible penalty of paying off a loan within 6 months after the purchase6:33—Making small sacrifices with your unnecessary expenditures7:23—An overview of refinancing8:33—Wrapping up today’s topic We hope that you found today’s topic helpful! When it comes to lending, there are many questions to be asked, and we probably only covered about 20% of what the market looks like. If you have any more questions that we didn’t address today, feel free to give us a call. We’ll be happy to help you.   

Today’s message is directed toward those thinking of buying their first home—often referred to as a “starter home.” We’ll address whether you should go through with that purchase or skip it and buy your forever home right away, instead.  If you’re already out house-hunting, you might be fixated on that four-bedroom, colonial-style home with a beautifully glistening pool in the backyard. But let’s think for a second: Sure, the idea of planting some permanent roots and settling into a forever home sounds good, but your lifestyle (and bank account) may beg to differ.      When you begin thinking it through, the first question to ask yourself is, “Can I afford a forever home?” It’s important to take an honest look at your financial situation and consider whether you’re willing to give up some simple pleasures, like your weekend brunches, in order to finance such a major purchase.       Next, consider whether you’re settled down enough to invest in your forever home. If you’re fairly new to your job, you have plans to move in a few years, or you’ve yet to start a family, you’ll need to seriously assess if putting down your roots is a sound decision.  You also need to think about whether you know what you want in a home. Without having owned your own home before, it’s likely that your ideas about what you want may not hold true when put into practice.  “It’s important to take an honest look at your financial situation.” Further to that, your preferences may change over time with regard to your home and its surroundings. After a few years, you might decide you’d rather live somewhere with a community pool or on an acreage without any neighbors nearby.   Whether you opt to move into a starter or into your forever home right away, though, you’ll be able to enjoy the benefits of homeownership.  When you make that first-time purchase, your days of worrying about the struggles of renting are over. You’ll no longer have to move from one complex to the next due to rising rates, and you’ll be able to start growing equity and making memories in a home.  On top of that, homeownership offers the luxury of being able to decorate however you see fit and make upgrades to your heart’s content.    So whether you need help buying your first or fifth home or with selling your current home, please give us a call at 512-843-3374 or email us at Info@512HayerGroup.com. We look forward to serving your real estate needs, whatever they are!  

Today we are excited to share with you the five big reasons that you should list your home on the market in 2019. It’s no secret that life has been pretty sweet for sellers over the last few years. The current housing landscape has probably tempted you to put your house up for sale even if you’re happy where you’re at.  As they say, all good things must come to an end and you’ve probably heard that our white-hot market is starting to cool a bit. You haven’t missed the boat to sell yet, but with each passing month, experts expect the market to continue to shift in favor of buyers. We’re still in a seller’s market, but things are starting to balance out. Here are five reasons why you should sell in 2019: 1. You won’t be the only listing on the market for long. Low inventory has driven our market for years now. With a limited supply and plenty of hungry buyers, homes were going under contract after sparking bidding wars regularly. The tide is now turning because our inventory is increasing. The competition will only increase from here, so it really pays off to list sooner rather than later. 2. You can still make a good profit. Home prices have been on a meteoric rise. In January 2012, the median price was $154,700. Today, that figure has nearly doubled to $289,300. Now comes a twist. 15% of all listings took a hit in their price in January, according to Realtor.com data. That might sound like bad news, but hear us out. The moderate prices combined with today’s mortgage rates means increased buyer demand for your house. Prices are still increasing in general, just not as fast as they have been. 3. There is high demand for homes under $300,000. If you have a home in this price range, there are tons of buyers shopping at this price point, especially with interest rates on the rise. You’re still going to see a great seller’s market in this price range, and multiple offers are still common. The last two homes we helped buy were multiple offer situations. “” 4. We’ve seen a bit of a dip in mortgage rates over the last few months. Experts predict that they would rise at a much faster rate, but since the start of the new year, our rates have been falling. These historically low mortgage rates mean more buyers knocking on your door. The dip in rates also presents an opportunity for you to trade up into something better. There’s time to get both transactions done in this market. About 70% of our clients buy and sell at the same time, and we can help you do that too. 5. Millennials are flooding the market. More and more millennials are entering the housing market and have become a driving force. With a huge increase in buyers expected, that’s just another great reason to list now. If you have any questions for us about anything we discussed today or anything else related to real estate, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

Saving up for a down payment is one of the most intimidating parts of buying a home. Friends and family love to give you advice, but sometimes it doesn’t apply or isn’t actually true. That is why today we want to talk about three myths about down payments so that you can separate fact from fiction. “Finding, applying, and getting approved for down payment assistance can be challenging because they are run locally by the city or the county and not nationally.” 1. You need 20% down to buy a home. For decades previously, this was the standard, but it isn’t always the case anymore. In fact, it depends on what type of loan you have available such as using a Federal Housing Administration (FHA) loan that only requires 3.5% down. If you or your spouse served in the military, meanwhile, you may be eligible for a VA loan that is 0% down. Another 0% down loan is the USDA loan. Conventional loans can even require less than 20% if you’re a qualified buyer, but you may be required to pay PMI (private mortgage insurance) to the lender to prove you won’t default. 2. Cash is king. If you’ve been shopping in our competitive market you’ve more than likely heard about first-time homebuyers getting snubbed in favor of investors and cash buyers and that working with a loan will lessen your chances of buying a home. While there is some truth to this because cash guarantees that a seller can close on time without loan approval issues, it’s not always the case that they care about closing quickly. Oftentimes if you write a killer personal letter that resonates with the seller or even offer more money to prove you are motivated, you stand a better chance. 3. Down payment assistance is easy. I hate to burst your bubble, but finding, applying, and getting approved for this kind of loan can be challenging because they are run locally by the city or the country and not nationally. For you to get qualified, the biggest factor you have to consider is your income; if your income is higher, then you may not qualify. Just don’t get discouraged, that’s why we’re here to help. If you need assistance with a down payment, we can put you in touch with lenders who are happy to share their expertise. All you have to do is call or email us. We look forward to speaking with you soon.

I want to ask you a question: Are you ready to buy a home? I hear this question from potential homeowners on a daily basis. They’re tired of paying rent and want to buy but aren’t sure if they’re ready to take on the added responsibility of paying taxes, insurance, etc. It’s a big step to take, which is why you should ask yourself these questions before you start the process of house hunting: 1. Do you know how much you can afford? If you were to buy a $300,000 property, how much money do you have saved up for a down payment and what would that make your monthly mortgage payment? This isn’t a time to ballpark the numbers. Overcommitting to a mortgage payment can leave you house-poor, which means you’ll have very little money left over for other things. Add up your monthly expenses and don’t forget to include debts like student loans and car payments. Once you know how much you have coming in and going out each month, determine a number that you can afford to spend on a monthly payment before you start house hunting. 2. Do you have a down payment? Contrary to popular belief, you don’t need 20% to buy a home. If you do have 20%, it gives you a natural advantage in the marketplace by not having to pay private mortgage insurance. However, even with less than 20% down, it’s still a good time to talk because you still might be paying more in rent than what your monthly payment (with PMI) would be. 3. Will you have money left over after closing? Your bank account should not be $0 after closing. You should still have an emergency savings fund that will cover three to six months of living expenses on hand at any time. If you’ve answered “yes” to these questions and you’ve determined that you are ready to buy a home, don’t hesitate to give us a call or send us an email so we can talk about how to start the process. If you have any other questions in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon. “You don’t need 20% to buy a home.”

According to Remodeling Magazine, big-ticket remodeling activity is enjoying record economic conditions and is expected to rise 5.1% this year alone. While remodeling is great for the economy as well as a home’s equity, problems can arise when owners take on the tasks themselves without the proper training and preparation. Of course, some of these problems can be avoided, which is why I have made a list of the three biggest mistakes homeowners can make while renovating. 1. Overestimating your skill. Tiling may look easy, but attempting to tile your whole bathroom without so much as taking a class or at least watching a YouTube video could be a recipe for disaster. Chances are you’ll either end up calling a professional to come finish the job, or rip it out and start all over again. To avoid making this costly mistake, take on something small first to see if you’re any good at it and, most importantly, if you have the patience to finish it with details all the way to the end. If not, it may be a good idea to get a quote from a professional who can get the job finished in a timely manner. “While remodeling is great for the economy as well as a home’s equity, problems can arise when owners take on the tasks themselves without the proper training and preparation.” 2. Underestimating your budget. It is a universal truth that no one ever puts enough money aside for the renovation. The last thing you want to do is have a problem that arises where you’ll have to change your plans or stop mid-renovation to find more money. Experts say to avoid this you should create your budget amount for the renovation and then add an additional 20% or more; if you think it will cost about $10,000 for your renovation, save $15,000 just in case. 3. Minimizing the timeline. Homeowners doing their own renovations can greatly underestimate the amount of time needed to make the changes mostly because of their inexperience. It is can also be shaped by individual needs; just because you can have two weekends to redo your kitchen before your in-laws arrive doesn’t mean that it can be finished in that time frame. There could be unknown issues that slow you down. If you are considering renovating your home and want to avoid all of these problems, give us a call and we can put you in contact with some of our trusted vendors. They can help you finish the job in a timely manner. As always, if you have any questions about buying or selling, please feel free to reach out to us. We look forward to speaking with you soon.

Because we are in a seller’s market, homebuyers may find themselves scrambling for properties and looking for ways to one-up their competition. While many are willing and able to go well above asking price to get the home they want, there are plenty of other creative strategies that we use to help our buyers get their foot in the door and win the bidding war. Here are some of our top tips: 1. Putting your heart and soul into it. What if you find out you have access to something that is typically hard to get to and the seller really enjoys that thing? You should use that to your advantage. If you can find some way that you can add value to your offer, such as a gift, that would be a great idea to submit with your offer. 2. Making a moving gesture. Moving is a very difficult task and most people don’t look forward to it. If you’re a buyer, rather than upping your offer, it might be a wise idea to look at how much moving would cost for the seller and offer to pay for it. We have found this to be a cheaper and more effective route for our buyers than just upping their offer. “Offering to pay for a seller’s moving expenses is a huge gesture.” 3. Working with a professional who understands the market. Our buyer specialists are skilled in this category. When we know supply and demand is tight in a neighborhood, we like to have a quick conversation with the seller’s agent. We get to know what’s important to the seller so we can write a contract that pertains most to the seller’s needs and speaks to them easily. Doing these small tweaks can really help you save a lot of money and not overbid when you’re competing against other buyers. If you have any questions for us or want any more tips, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

If you think we’re headed for a market crash, today you’re in for a pleasant surprise. There are plenty of reasons why you don’t need to worry about this happening anytime soon. First of all, there are many key differences between today’s market and the market of 2005. In 2005, subprime loans totaled out to $620 billion and comprised up to 20% of the mortgage market. In 2015, they totaled just $56 billion and comprised just 5% of the mortgage market. Second, banks have raised their lending standards. According to CoreLogic’s Housing Credit Index, loans originated in 2016 were among the highest-quality loans of the past 15 years. In October of 2009, the average FICO score was 686. In 2001, the average FICO score was between 490 and 510. Third, tighter lending standards have made a difference in the flip market. Lenders in today’s market only finance up to 55% of a home’s value—the home flipper is responsible for the rest of the funding. During the subprime crisis, banks were lending up to 80% or more of a property’s value. Also, the number of national home sales is down 20% compared to the pre-crash peak, and we only have four months of inventory. As a result, only 64% of all Americans own their own homes. Back in 2017, it was 68%. “A market crash is by no means imminent.” Home sales are lower because the recession limited young people’s ability to start a career and save enough money to buy a home. When faced with a poor job market, many decided to further their education to better position themselves for the marketplace. Now these people are burdened with huge student loan debts, which makes it less likely they’ll be able to save enough to buy a home. This is why demand is expected to be lower for quite some time. In addition, home prices have outpaced the average worker’s income. The average housing- income-to-housing-cost ratio is just 30%. In some metro areas, it’s skyrocketed to between 40% and 50%. Since metro areas are where the jobs are, many young people are deciding to pay more rent in order to be in a better location and avoid a long commute, even though their job doesn’t pay enough to allow them to buy a home. Roughly 32% of all current home sales are from first-time homebuyers. According to the NAR, that average is historically closer to 40%. The average first-time homebuyer is around 32 years old, earns around $72,000, and can pay up to $182,000 for a home. The average couple can afford a home worth up to $208,000. Another reason is that homeowners aren’t taking as much equity out of their homes anymore. The total amount of home equity rose to $85 billion back in 2006. After the market collapsed, that total dropped to $10 billion, and it remained there until 2015. By 2017, it had only risen to $14 billion, and Obamacare was the reason for that. Bankruptcy filings have fallen by 50% since the Affordable Care Act was passed. In 2010, 1.5 million people filed for bankruptcy, whereas in 2016, only 770,000 people did so. Some who worry about an impending crash point to the fact that national home prices have exceeded their 2006 peak, but keep in mind that once we adjust the value for 11 years of inflation, prices are close to where they were in 2004. Between 2012 and 2017, home prices only rose 6.5% per year on average. Between 2002 and 2006, they rose an average of 7.5% per year (in 2005, they skyrocketed 16%). Lastly, home builders focus on high-end homes. New homes are larger and more expensive—the average size of a home today is 2,700 square feet. Back in 2005 and 2006, the average square footage of a home was 2,500 feet. As you can see, a market crash is by no means imminent. If you’re curious what your home is worth in today’s market or you have any other real estate needs I can assist you with, don’t hesitate to give me a call or shoot me an email. I’d be happy to help you.

Here are the top four reasons why fall is a great time to list your home: 1. There’s a more serious buyer pool. The spring housing market is sure to bring out plenty of buyers, but a lot of them may hold off on making an offer. With more homes to choose from, they can afford to be picky and extend their search for months. Come September, those same buyers will feel the pressure to move into their new home before the holidays start or the weather takes a turn for the worse. That’s where you come in. To prepare your house for the market during the fall, amp up the curb appeal–fix up the front porch, rake the leaves, and clean the gutters. If everything’s well-maintained, your home will be ready when the buyers are. 2. There’s less competition. Fall buyers not only have the stress of the holidays looming over their heads, but their options are also shrinking. Since many sellers rush to close by September, you’ll be competing in a much smaller market. That could be a very powerful bargaining chip to help you close by the end of the year. Fall and winter photos run the risk of making your home look a little drab, so take some bright, clean photos of it during the summer and use those to showcase it. That will really make it stand out to serious buyers. “If everything’s well-maintained, your home will be ready when the buyers are.” 3. There are different buyer demographics. While families are more likely to make their move during the spring, millennials and empty-nesters are more likely to make a decision later in the year in order to avoid the higher level of competition and the higher real estate grades. Employers who have to relocate their employees out of state also typically wait until fall to do so. When the market cools down, these out-of-towners will probably need to get through the buying process as quickly as possible, which can mean a speedy sale for you. To prepare for this demographic, it’s important to stage your home. For example, empty-nesters aren’t looking for 3-bedroom homes, so if your home has three bedrooms, try converting one of them into an exercise room or a work space. Millennial couples, on the other had, might want a nursery or a space for their future baby. Let each buyer see how your home fits their needs. 4. There’s more flexibility for improvements. Depending on where you live, spring and summer can be a much-needed break from a harsh winter, and your home could potentially use some TLC. Use those warmer months to make some improvements. You can schedule these improvements in between weekend getaways. Small renovations done from time to time can really cut down on the effort required to get your house ready. Before the winter months hit and the temperature drops drastically, it may be a good idea to get your HVAC unit checked. If you have any more questions about the benefits of selling your home in the fall or you have any other real estate needs, don’t hesitate to reach out to me. I’d be happy to help you.

As a seller, there is a way to be smart about handling a multiple offer situation. So, today I want to share how to handle multiple offers when selling your property. When you start the process of selling your home, you have to shift your perception to “this is business.” You are selling a product in a large real estate market that will dictate many of your decisions. You can choose to ignore the market. However, this can be risky and result in regret when you price your home too high and end up selling it for far less. Your home’s time; on the market affects its value, the longer it is listed, the less valuable it because people think that there is something wrong with the home. “If you are dreaming of a quick sale, listen to your Realtor regarding your home’s market value and how to price it.” Buyers will avoid making offers on overpriced listings because they do not want to offend the sellers, which leaves your home sitting on the market. It goes against human nature to offer substantially less than the asking price to a seller. People feel as if it insults the seller and it is embarrassing for the buyer. Buyers earnestly believe that the seller knows it is overpriced and that they will accept a lower offer. They also believe that sellers have turned down lowball offers and that someone has, in fact, offered a reasonable price. So, how can you create multiple offer situations for your home and choose the right offer? Now, we are talking the business. If you are dreaming of a quick sale, listen to your Realtor regarding your home’s market value and how to price it. You are more likely to attract multiple offers for your home if you price it correctly from the beginning. A lower asking price can result in buyers being willing to pay more, but the buyers want it to be their decision based on the other bids. Most buyers will run away from bidding wars if they think that you are already overpricing the property. Once you have the multiple offers, now it is your decision time. All offers are not equal. Even though someone may offer more money, that does not mean their offer is better because other factors should play into your decision.  Which loan type each buyer has and whether any of them have to sell their current home before buying a new one are also factors that determine which offer is best. There are many aspects of a contract that can be either good or bad, and you have to dive through all of them to make sure you are selecting the right offer. If you have any other questions about multiple offer situations or about buying or selling, please feel free to contact me. I look forward to speaking with you soon.

Today, I’m here to share with you the six biggest mistakes homeowners make when selling their homes. Preparing a home for the market can be a stressful process. However, avoiding these common mistakes will make the home selling process a lot smoother. 1. Picking the wrong agent. The right agent will answer their phone when you call and will get back to you in a timely manner. They’ll also be knowledgeable about the market and will be honest and straightforward with you, rather than just agreeing with whatever you say. 2. Overpricing your home. Even a well-priced home with bad marketing can sell, though it may take a bit longer. 3. Failing to make simple repairs. If the dog chewed something up or if there are other minor damages, a buyer will spot them instantly. Make those repairs before you list your home on the market. “Even a well-priced home with bad marketing can sell, though it may take a bit longer.” 4. Neglecting to declutter your home. This is a big point; buyers start their home searches online, and if the pictures of your home are showing off all the stuff inside instead of the areas that buyers are attracted to, there is a great chance the buyers will move past your listing. Pack up your personal stuff and store it away so that it doesn’t get in the way of your showing. 5. Not allowing adequate access to your home. I have found that for every 10 times a seller says they can’t show a home on a certain date, eight of those 10 buyers won’t even come back. Some Realtors won’t even call to reschedule the appointment. It’s very important that your home is show-ready at all times and that you can get agents and buyers in and out of the house when they want. 6. Getting emotional about your house. Sellers can sometimes be very attached to their homes. However, when you sell your property, you need to think of your house as a property, not your home. Now, if someone gives you a lowball offer or wants to remodel, you should be okay with it as long as the buyers are paying you a fair market price. If you have any questions or have a topic you’d like me to cover, feel free to reach out to us. We’d be happy to help you.

When you go online to Zillow, you’re able to get something called a Zestimate, which tells you the value of your home. The question is, can you trust those Zestimates to be accurate? Unfortunately, no. Most of the time, Zestimates are very inaccurate. According to Zillow’s website, a Zestimate is a starting point in determining a home’s value. It is not an appraisal. The Zestimate is actually based on public- and user-submitted date. The public data is usually fairly accurate, as it includes information about the square footage of your home. The problem is that Zestimates rely on user-submitted data. If you’re a homeowner looking to sell their house, wouldn’t it benefit you to go to Zillow and add some home improvements to your property? People often begin their home searches online on sites like Zillow. There are some agents out there who actually help people increase their Zestimates to make it seem like their home is worth more than it is. Zestimates can be tweaked and manipulated. Now, Zillow also goes on to say that they encourage homeowners to supplement the Zestimate by speaking with a real estate agent and getting a comparative market analysis or by getting an appraiser to visit the house. After all, Zillow has never been to your house and that Zestimate has no idea how your home stacks up against other homes in the area. “Why would you trust the value of your house to be determined by some website?” If you live in a major metropolitan area where there are a lot of homes for Zillow to pull from, your Zestimate might be more accurate. But if you live in a rural area without a lot of data or you live somewhere with a lot of unique homes, then that Zestimate can be a long way off. Zillow even admits that more than three-quarters of the homes in certain counties have Zestimates that are off by 10% or more. That means if your house is worth $700,000, your Zestimate is off by at least $70,000. Whether it’s too high or too low, it’s not good either way. Ultimately, Zillow is kind of like WebMD. If you’re curious about your health, you can go look up your symptoms on the website, but do you want the website to diagnose you? I’m sure you won’t. Think about it: Why would you trust the value of your house to be determined by some website? In today’s market, you need to contact a professional who’s actively looking and comparing properties in the marketplace. In fact, I invite you to look up your Zestimate online and send it to me. I will compare your property to recently sold homes in the neighborhood and then we can see how accurate your Zestimate really is. If you have any questions about Zestimates or home valuation, please feel free to reach out to me. I look forward to hearing from you.