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.

Please reach out if you have questions.

PRICING YOUR HOME

How do you know if you priced your home correctly? Well in this market it’s pretty easy to know.

As a general rule of thumb, if your home is not under contract in 3 weeks you have likely overshot the market. You might think, no big deal.

Here’s the thing - the longer your home sits on the market the more buyers begin to believe there is something wrong with your home OR they can lowball you. The goal should be to sell your home not just list it.

THE BUT FACTOR!

The but factor. Not the butt factor, the but factor. This is the thing buyers say when they decide not to buy your house.

I love it BUT, the master bedroom is too small.

I would make an offer BUT my payment will be too high.

I think it could work for me BUT it needs too much work.

Okay, so what’s a seller to do? Time to bring in the WOW factor.

The master bedroom is too small? With correct staging and appropriate furniture, even a small bedroom can be workable. P.S. Home styling and staging are included in my listing package

Payment is too high? Sellers can help buyers buy down their interest rate to make the home more affordable.

House needs too much work? Correct pricing for the condition is critical.

ALL ABOUT DEEP CLEANING

If you are not doing THIS as a home seller, you are missing out BIG time. And this is not some secret formula or magic bullet. It’s cleaning and decluttering.

Simple and cheap. But not very much fun. I get it - deep cleaning is not glamorous but it is sooooo important. When you clean and declutter buyers can literally start to envision themselves in your home. When your stuff is junking up a space, they shut down. I even have buyers that refuse to see homes that seem dirty or cluttered just from the photos!!

In a market like this, with limited inventory, that is a huge statement about the importance of a clean-show-ready home.

Myth vs Fact

I need 20% down to buy a house.

NOPE! Some loans are NO money down such as USDA and VA.

I don’t have a good enough credit score.

NEWS FLASH, some lenders will accept credit scores under 600.

Getting approved for a loan is HARD!

Did you know that around 75% of loan applications received are approved?

Know the facts before you decide home ownership is out of reach I’m here to help with any questions you might have.

New Normal

Don’t you just despise this phrase? It’s become so cliche. But I cannot think of a better way to describe to you what is happening in the real estate market. In 2021 I could literally list a house and expect multiple offers (over asking) within days. That was the norm. The rates were historically low and buyers were chomping at the bit. Reset. New normal.

.Homes that are priced correctly are getting one (maybe two) offers within 60-90 days of listing. That seems like a really long time to be listed but let me tell you. When I first started in real estate in 2004 I had some homes listed for YEARS! Literally years. So while it might seem like the bottom has fallen out of the market it really hasn’t. We are all just adjusting to the new normal.

Real estate markets ebb and flow. We wouldn’t ever expect it to stay static. And buyers remember the interest rate on rent is 100%. Was last year a better time to buy a house? Maybe - the rates were lower. BUT, buyers waived home inspections, paid over asking, covered appraisal gaps, etc. And you can’t beat yourself up over something that you can’t change. I’m encouraging both my buyer and seller clients to not wait. Don’t wait for rates to change, don’t wait for prices to come up or down, and don’t wait on what the economy is going to do.

.This is YOUR time. Do what you need to do because I don’t have a crystal ball and cannot advise you on the future with any kind of certainty. Even the so-called “experts” are just guessing. Get micro on your life, not macro. Make sound decisions that are impactful for you and your future. Cut out the noise and DO YOU!

With gratitude.

Buying vs Renting

Buying vs Renting in today’s market. Which is better?

There are pros and cons to both. But here’s a couple of key points.

  • When you own your landlord can’t raise your rent.

  • When you own your landlord can’t put your rental on the market.

  • When you own you are building equity and wealth for YOU.

  • When you rent and the sewer line fails is not your problem.

  • When you rent you are not in a “committed relationship” with your home.

  • When you rent you are paying a 100% interest rate. Say what? Yes, your rent is 0% to the principal and 100% to your landlord.

Homeownership doesn’t have to be out of reach, no matter what you tell yourself. I have great strategies and resources for first-time buyers to overcome the fear of buying a home.

Let's Talk About Negotiating Inspection

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.

WHAT IF YOU GOT THE ANSWER KEY BEFORE THE TEST?

There is a lot of mystery surrounding how appraisals work in a real estate transaction. Many people think the appraiser has to come up with a price out of nowhere. But here’s a little secret - the appraiser sees a copy of the real estate contract and knows the price the buyer and seller have negotiated.

Does it seem like the appraiser is getting the answer key before the test?

In this video, I will explain why it’s done this way and the important role the appraiser plays in a real estate transaction.

Real estate is actually quite simple.

A home is worth what a buyer is willing to pay and a seller is willing to sell for. Of course, there are other factors in play but at the end of the day, that is the matrix.

And therefore, the market itself dictates the pace and value of a property. As we move into a more balanced market this is becoming more and more apparent.

And what history tells us over time is that real estate is one of the safest and most profitable investments.

Do you want to know more about buying or selling? Reach out to me with your questions, I am here to help!

5 Things That Will Make You Wealthy, + 1

5 things that will make you wealthy by Dave Ramsey one more from me.

1.Have a written budget. You have to have a written game plan with money or you’re going to lose.

2. Get out of debt. When you don’t have any payments, do you know what you’ve got? MONEY!

3. Live on less than you make. In the house of the wise are choice food and oil, but a fool devours all he has. Proverbs 21:20

4. Save and invest. 100% of people who don’t save money don’t have any money saved.

5. Be generous. Follow the 7 Baby Steps and you can be outrageously generous!

And 6. , Buy a home! Long term renting will not create wealth (actually it will but for your landlord). It can be scary but its one of the BEST investments you can make for yourself. And you don’t have to have 20% down - that is an old wives’ tale. And remember the interest rate on rent is 100%.

Agent On The Sign

“I just called the agent on the sign.”

I hear this all the time. Buyers end up with the agent on the sign because they didn’t know they had a choice.

Here’s the deal.

You should interview and hire an agent to help you buy your home just as a seller interviews and hires an agent to help them sell their home. This is not to say that there is anything wrong with the “agent on the sign”. I just believe you owe it to yourself to make a CHOICE about the matter versus someone you ended up with by CHANCE.


NO-NO's When Buying A House

OOPS!! Big no-no’s when buying a house:

  1. Not getting pre-approved. In this market, sellers won’t even consider your offer without a lender's letter

  2. Maxing out your budget. If things in your life go sideways you need to be able to handle unexpected expenses and maxing out your mortgage is a no-no

  3. Skipping the fine print. Do you have a prepayment penalty or a variable rate on your mortgage? It’s important to know beforehand the terms and conditions of your loan

  4. Making decisions from the heart instead of the head. This one is soooo hard. But try and take the emotion out of the equation.

  5. Not factoring in other expenses.

  6. Not protecting your credit score before closing. This is not the time to take out a loan for a new car or furniture for your new home.

Shoes Before Socks

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.