Socks Before Shoes

Even as the market evolves and becomes more balanced you still need to do THIS as a home buyer…. Check out this video for the scoop! You wouldn’t put on your shoes before your socks or your pants before your undies. This advice also applies to real estate. How might you ask?

It’s so important to meet with a lender as your first step in the search for a new home. Some buyers want to rush out and see homes before this important first step. Setting a budget for your monthly payment and understanding the amount you’ll need for your down payment is crucial. This is likely the largest purchase of your life. Let’s make sure you feel comfortable with the process.

In this video I’ll give you examples of why a pre-approval should be your first step.

LET’S TALK ABOUT POOP!

Did I get your attention?

Many of the homes in our area are on septic systems. This means the waste from the drains and toilets in the home travel to a tank. The septic system is a crucial element of the home and not one that people like to think about.

Let’s be real, if it's working you kinda forget it's there. When it's not working, you’re faced with a very crappy situation! If you catch my drift. I could have fun with puns all day on this topic!

In this video, I’ll discuss the importance of getting a septic inspection when purchasing a new home.

PRICING YOUR HOME

The market is feeling a bit bananas lately and sellers are not sure where to price their homes. Here’s a little insight. You have choices when pricing your home:

• Test the market. This strategy works in a rapidly rising market because you are pricing ahead of the market with the hopes that the market will meet or surpass your list price

• Price it right. This falls right into the range of what market comparables tell us the home is worth. Not too high, not too low.

Is this sounding a little like Goldilocks and the Three Bears?

• Strategically aggressive price. This is the price range that attracts multiple offers and offers over the asking price.

There is no right or wrong answer but as the market continues to evolve strategy is going to be more and more effective. Please leave any questions below.

Here are the three reasons your home is not sold yet.

Price: buyers know the market. They have access to tons of data online and while the market is still crazy buyers are not in the mood to grossly overpay for your home.

Condition: too small, too dated, too smelly, major repairs, dysfunctional floor plan, you get the picture.

Location: too close to the road, in town, out of town, on a mountain, in a valley, again, you get the picture.

Two of these things you can change, one you cannot. So if your home is not selling you will need to have a closer look at it and see what adjustments need to be made.

How to pick the right offer when selling your home.

This might come as a shock, but the highest price is not always the right offer to accept when selling your home. There are other major factors to consider.

How is the buyer paying for your home?

Cash or loan?

When do they want to close?

Are they flexible if you need to stay in your home for a month after closing?

Do they have any major contingencies, such as having to sell another home before buying yours?

When evaluating offers, I present my sellers with a spreadsheet of the nuts and bolts of the offer and then we talk about the pros and cons of each offer. Here’s a quick test, which offer would you pick?

Offer A: $20,000 over asking, buyers have a small downpayment and need possession on the day of closing. The property will need to appraise for the over-asking purchase price.

Offer B: $5000 under the asking price but the buyer is cash, can close in 15 days, and will rent back to you for 30 days after closing.

The goal isn’t always to accept the highest offer, but to maximize your chances of getting to the day of closing.

3 Small Home improvements That Yield BIG Returns For Sellers.

3 small home improvements that yield BIG returns for sellers.

Paint the interior of your home a popular but neutral color. Repose Grey by Sherwin Williams or Oyster Pearl by Valspar are great options. Now I can hear you arguing with me - “its just paint, the buyer can choose their own colors and paint it themselves”. Here’s the issue, when the buyer sees the navy blue walls in your kids room they add it to their “to-do list” which means less money for you.

Some elements of home staging. A new rug, beautifully framed artwork (this doesn’t have to break the bank), a few strategically placed artificial (or real plants). A couple hundred will make a huge difference if the right pieces are purchased. The thrift store and a can of spray paint can go a long way too. For inspiration check out Pinterest.

Deep clean and declutter. This is probably the most important aspect. You only get one chance to make a first impression. Have a trusted friend over to help you “see” your everyday clutter.

Show me the money!

Let’s talk about earnest money.

When a buyer makes an offer on a property, the earnest money is tendered shortly thereafter. If everything goes as planned, the earnest money is applied toward the purchase price at closing.

However, sometimes the wheels fall off the bus! Sometimes a buyer might decide to cancel their contract, typically this is because of inspection items. If this happens, and the buyer cancels before their specified deadlines, their earnest money is 100% refundable.

So, when might the earnest money be non-refundable? Only if a buyer passes their loan approval deadline and cannot or will not close. This is very rare, and in 600+ transactions, only a handful of buyers end up losing their earnest money.

Please reach out with questions about earnest money or anything else real estate related

Let's Talk About Mortgage Insurance

If you’ve bought a house in the past 2-5 years and didn’t put 20% down we need to talk.

It’s time to kick that private mortgage insurance payment you’ve been making to the curb! Some lenders require you to pay the insurance for a set amount of time and others will require a new appraisal to remove the insurance.

Here’s how I can help.

I have formulated a plan of attack that helps to rid you of that extra monthly cost. I can also offer you a complimentary market analysis of your property so we know if you are in the ballpark of saying goodbye to mortgage insurance forever.

Please reach out if I can help or if you have any questions.

Valuing Transparency and Honesty

I lost a potential listing the other day. They decided to go with someone else which is totally okay. You can’t win them all, right?!

In this market it’s incredibly hard to price property. Homes are regularly going for over asking and often with multiple offers. Sometimes I feel like an agent turned fortune teller, trying to predict the future for my clients. I am a data freak. In other words, I rely on the data to guide me. So when you ask me to list your home, I am coming prepared with the facts.

What are homes selling for?

How long are they on the market?

What’s the price per square foot?

What’s the available inventory?

How much more can I add to the list price knowing the current market conditions?

At the end of the day, I told these sellers a list price they didn’t like. I want all my clients, both buyers and sellers, to feel heard, not pressured and above all respected. But part of my job is delivering professional advice.

I can promise you I won’t blow smoke. I will tell you the straight facts. I value transparency and being honest. I will give you my honest opinion on price but ultimately the the list price is up to you and I will likely support it even if its over what I think is appropriate. And I will advocate for you every step of the way.

With gratitude.

AGENT REPUTATION

Agent reputation. Does it matter? I think it does and let me tell you why. If your agent is unprofessional it could hurt YOU in the long run.

Does your agent have a reputation of honest and transparent dealings?

Are their buyers prequalified and ready to buy?

Are their sellers serious and straightforward?

Has your agent set proper expectations with YOU, their client, so everyone is set up to succeed?

Is your agent easy to work with?

Does your agent return phone calls, text messages, and emails?

All of this can affect YOU when the rubber meets the road because in multiple offer situations, who you work with might make or break the deal.

So how do you know if you are working with a professional? Read reviews online (Zillow is a great resource), ask your friends and neighbors but most of all, interview your agent.

What did you say? Yes, interview your agent!

Any time someone allows us to help them with buying and selling we have in some way or another “got the job”. It’s okay to talk to multiple agents and then decide who you feel most comfortable working with. True professionals welcome the chance to shine and earn your trust and business.

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I wanna buy a house, but..... .

5 Things To Always Check Out When Buying A Home

5 things to always check out when buying a home.

• The roof. Two things here. What’s the condition of the roof and how many layers of shingles? If there are already two layers of shingles you will have to tear off all layers and re-roof. If there is just one layer you can probably re-roof over it.

• The septic system or sewer line. It is possible to have a septic issue and not know it, especially if you are buying a home that has been used as a second home.

• Latent moisture. Looks like an old leak, and it might be. But there still could be mold behind the wall.

• Water quality and quantity. Will you have enough water and is your water drinkable? Not as much of an issue when you have city water but if you are on a well it’s important to understand quality and quantity.

• Radon levels. Radon is an invisible gas that the EPA reports can cause cancer. It has been around since the beginning of time. Some homes have very high radon levels and while it might not be a concern to you, you will have to address it when you go to sell your home.

If you have questions, hit me up!

BUY REAL ESTATE AND WAIT

Don’t wait to buy real estate. Buy real estate and wait.

We all know the media loves a sensational story and there have been plenty surrounding the real estate market. Lately, there has been lots of talk about “The Bubble”. But when we compare what the talking heads SAY is going to happen to what ACTUALLY has happened the outcome is very different. The following example starts with a buyer looking at a home valued at $300,000

Oct 2015 “Housing today- a bubble larger than 2006” - we saw 5.1% appreciation - home is now worth $315,000

Aug 2016 “We’re in a housing bubble” - we saw 5.4% appreciation - home is now worth $332,000

Nov 2017 “Homeownership doesn’t build wealth, a study finds” - we saw 6.1% appreciation- home is now worth $353,000

Sept 2018 “It’s better to rent than buy in today’s housing market” - we saw 4.1% appreciation - home is now worth $367,000

July 2019 “The housing market is about to shift in a bad way for buyers” - we saw 4.0% appreciation- home is now worth $382,000

Dec 2019 “Next year will be hard on the housing market, especially in big cities” - we saw 16% appreciation in 2020- home is now worth $443,000

July 2021 “Housing boom is over as new home sales fall to pandemic lows” - we saw 18% appreciation - home is now worth $523,000

Had fear consumed this buyer back in 2015 they would’ve lost out on $223,000 of increased value, not to mention the seven years of payments made on the mortgage creating even more equity.

Remember, the interest rate on rent is 100%….

Make your financial decisions based on logic, reason, and expert opinions. Don’t make decisions based on fear as you may miss out on big opportunities.

Nine years in a row real estate continues to be rated as one of the BEST long-term wealth strategies.

Questions? Leave them in the chat or DM me. You don’t have to do this alone.

Should I Buy A New Home Now?

You bought your first home. You were feeling like you were on Cloud 9. You had so many great ideas on your Pinterest board to make this place your own. But now several years have gone by and nothing has changed. Your space is feeling cramped and tight and you are dreaming of a new home. But how could you swing it?

Everyone knows this market is nuts. You would have your current home sold in a heartbeat but wouldn’t be able to find a suitable replacement. Prices have gone up so much, it wouldn’t make sense to buy a new home now.

Does this sound like you? If so, we need to talk. I’ve got proven strategies to help you with this kind of move. Please reach out for a free copy of my Pathway to Peace guide or with any questions.

But if I sell my home now I will be homeless!

“But if I sell my home now I will be homeless!”

I’m hearing this sentiment a lot these days. Everyone knows inventory is still low and many sellers are putting off selling because they worry about finding a replacement property. But what if I told you I’ve got a couple of tricks up my sleeve to ease the transition and stress involved with selling and buying in this HOT market?

Seller Contingency - Once your home goes under contract you have a specific time period to find another home. If you can’t find another house to buy you can get out of your contract.

Rent Back - After closing, you can rent the home back from the buyers. This is typically calculated to cover their new monthly mortgage payment and can last up to 60 days.

Extra Long Closing - Contracts are taking longer than normal anyway because we are experiencing an appraisal backlog but it’s not uncommon for parties to agree to a 90-day extended closing.

All three of these strategies give some much need and valuable time to find your next home so you don’t end up homeless.

5 Costliest Mistakes To Avoid When Selling Your Home

The 5 costliest mistakes to avoid when selling your home (watch out for #3)!

1. Not approving showings. Let’s face it - selling your home can be an inconvenience and inconvenient showings come with the territory. Remember this is just a small slice of your life, the showings won’t last forever

2. Skipping the cleaning and decluttering. You are used to all your “stuff” but to a buyer, a dirty and cluttered home is a major distraction. Clean and cleared surfaces are attractive and give buyers confidence about the quality and value of your home.

3. Overpricing the market. You hired your agent for their professional guidance. If they tell you your home is worth $400,000 don’t insist on listing it for $500,000. That unicorn buyer (the one that will overpay for your home) is not out there.

4. Skipping major repairs and offering a “credit” instead. Carpet credits or painting credits don’t really work. As a rule of thumb if a repair or replacement costs you $1000 the buyer will want $1500 as a credit. Put your best foot forward and you will be rewarded with top dollar for your home.

5. Not listening to the market. If your feedback is consistently the same: the price is too high, buyers don’t like the shag carpet or the cigarette smell is a turn-off. Listen! These are your customers and not adjusting to their feedback is a mistake.

Home Inspections

I’m going to tell you a little secret: Negotiating inspection items can be a bit tricky. Shows like Million Dollar Listing have not helped either. I cannot tell you how many times the agent on TV says, “We will just get the seller at inspection”. Yeah, it doesn’t work that way.

The purpose of the inspection is to reveal items that cannot be seen with the naked eye or issues that only a thorough home inspection would find. In other words, the giant carpet stain you saw during the showing is not something that should end up on your list of inspection requests. For the best results stick to health and safety issues. And remember, it doesn’t hurt to ask for the things that are important to you. The seller cannot “ditch” you because you sent over a list of inspection requests. All they can do is say no.

If you have kept your list to major items that “any reasonable buyer” would find objectionable the seller is probably going to agree with you. One of my biggest roles in a real estate transaction is helping you through this process whether you are the buyer or the seller.

Being A "Local" Real Estate Agent

Being a “local” has become a somewhat territorial statement. “I’m a local so I know better, have priority, or get to complain about all the non-locals”. This is kinda BS in my opinion, after all, we are all “locals” of planet earth At least I think so. But there is a situation where being a local is super important. Your real estate agent.

I often have clients ask me to help them buy or sell in other areas such as Denver or Grand Junction. And while my real estate license is good for the entire state of Colorado, I don’t feel I am providing the best service possible by helping buyers and sellers in areas I don’t know. If you are not a local you might not know about the large employer that’s about to relocate, the proposed airport expansion, or areas notorious for bad water or shifting soils.

It is so flattering that my clients want to “take me with them” to their new area. And while I cannot be their boots-on-the-ground agent, I’m more than happy to interview agents in other areas and find a great fit - a local who knows their community and can look out for your best interests. My network of excellent agents is literally worldwide so if you need any agent in another area, please let me know. It would be my pleasure to assist you.

Don’t Get Caught!

Did you know that some homeowners insurance policies only cover damages to your home within 30 days of you moving out? I found this out the hard way.

We had moved out of our house and I was checking on it every other day, BUT on the one day I wasn’t there the dishwasher decided to go kaput! What ensued was the basement filling up with water and doing tons of damage.

I called my insurance company to make a claim and received the bad news; all repairs would be out of pocket! Sucker punch to the gut! So what can you do?

If you move out of your primary residence make sure you check with your insurance company to find out what will be covered. In most cases, you can get “vacant home” insurance which is more money than a standard policy but much, much cheaper than dealing with a flooded basement.

Please, please, please learn from my mistake and don’t make the same one yourself. BTW - second homes have different insurance policies that typically fall under different guidelines.

First Offer Is Your Best Offer

“First offer is your best offer.”

This is a phrase we hear in real estate and what I have found over 18 years is that oftentimes it’s correct.

When I help sellers price their homes I use other homes that have sold to narrow in on pricing. Buyers are very savvy and with the help of technology, they can do their own research to see what other homes like yours have sold for.

If you get an offer on your home right away that means you priced it right. In this market, if your home has had very few showings and/or no offers you are likely priced too high. It’s better to get ahead of the market than chase it down with price reductions.