Experts Cross The Line On Occasion

In a real estate transaction, there are many people involved who render professional advice and services. Most Realtors will advise their customers to use licensed professionals such as licensed mortgage loan officers, licensed certified appraisers, licensed home inspectors, licensed roofers, electricians, plumbers and contractors. Home-Buyers and Home-Sellers hire these professionals to do specific work related to the scope of their fields.

Unfortunately, there are times when professionals just can’t help in giving their personal opinions to a buyer or seller, not realizing that this personal commentary can sometimes ruin a transaction. In this post, I really wanted to talk about a few mis-steps of those we rely on for “expert” opinions and advice.

Here are a few experiences I have had with “experts:”

• A Home Inspector tells a buyer that his sister is in insurance and this house built in 1945 is uninsurable. (The home was indeed insurable, but this cost the sellers a sale as the buyer walked away from the sale and cited this as the reason. Hey! When did he get his insurance license?)
• A Surveyor told one of my sellers that their friend told them that the property they were selling had an old graveyard on it somewhere in the back acreage. (Wouldn’t you think he’d wait and research the “hearsay” of his friend before mentioning this? Was it right for him to say anything to the seller at all? Not!)
• A Contractor who was replacing siding on a house told my buyer they would never buy this house because it would be a money pit. (They bought the home, had a few minor repairs and enjoying their third year there,.. oh,.. they hired another contractor to do their work.)
• A plumber told a buyer that whoever did the repairs on this house before him must have been a thief and a fool. (As soon as I heard that, I asked him to leave,.. and hired another plumber – do we need that kind of analysis or do we just want to know what we are dealing with,.. the facts please!)
• A heating and air conditioning contractor told a home-seller that the Realtor that said this HVAC system needed to be serviced must not have known that he had been servicing this unit since it was installed, and they didn’t know what they were talking about. (A second HVAC contractor concurred with inspection report and we found out later that this company had been ripping off people for years and he soon lost his license.)
• A home inspector gives opinions in a home inspection, but after his recommendation of a licensed roofer to evaluate, he returns only to say now that the work was substandard and not acceptable. Emotions were escalated by this inspectors personal remarks and opinions. (Realtors facilitated second opinions by a roofer he recommended, and after a meeting with all parties including the first roofer, the transaction was saved over a $50 repair. A more careful choice of words, both on a home inspection and when in person with a buyer, seller or Realtor, might just result in solving a problem easily instead of inciting extreme emotions.)

I’m not saying Realtors are perfect, but here is what we are here for, CALMness. Realtors are generally the ones that are pros at crisis management!

I could go on… but the point is this the choice of words, or personal interjections caused all parties undue stress and aggravation, some a sale, others a lot of money only to have been proven unfounded and really had no business being discussed in the first place. Buyers deserve to have professional advice, reports prepared using language that points to specific issues verifiable by that expert’s knowledge. If there are items outside the service provider’s area of expertise…make sure they make a recommendation to a professional equipped to deal with that issue. 

If you are a buyer and have doubts about a professional opinion ask your Realtor to help you sort it all out!

Don’t Gamble With  Your Home Search

People still buy homes in Tallahassee, Florida without Realtors. Yes they do. Unfortunately, those buyers often end up with issues that they have no clue as to how to solve, much less have a clue as to who can solve their dilemmas.

A few years ago, I answered the call from a buyer desperate and sitting in a moving van wondering where his family was supposed to go because his transaction fell apart at the closing table. The attorneys for the seller, where he had unknowingly agreed to close, kept a binder check, and hurried him out the door because it was almost 5:00pm. He was desperately calling Realtors out of a real estate magazine, and I happened to be his fifth call. (more…)

I’m working with a cash buyer today, but I couldn’t help but thinking that a renter might consider this… a 203K renovation loan to purchase a distressed property could save them thousands,.. and double their investment value in 7 years AND enjoy a tax savings of $15,947. Just take a look at the chart below.

A purchase of 50K, Roll in the 30K for repairs with a 203K loan. Take a 15 year mortgage, and it will be paid off in 7 years… and look at the EQUITY in7 years!  I think the only thing left to say is, “When are we meeting to look at these properties?” The time to purchase a home is right, the properties are there, but you need to be ready to go! For an investment planning appointment contact me today.

Renting vs buying – 15 yr

Mr. and Mrs. Home Buyer, what’s the thing you hate most about home shopping? I bet I know! ( been around long enough to hear the stories). Could it be that you are riding around, calling on real estate signs and getting different Realtor every time you call. I bet before you get home, you’ve got 15 home listings in your email,… from 15 different Realtors. Congratulations  you have just become a “Drip!”

(more…)

A good Realtor will have a few questions for prospective buyers. a great Realtor will explain their policies with you upfront. Honor your Realtor and you will receive the ultimate in customer service. Remember,.. this person is about to spend hours setting up systems that will help you find the perfect property, in her/his office, databases, communications, multiple listing service as well as even more time researching or previewing properties that may meet your needs and providing those to you. (Did you know that most Top Producing Realtors work between 80 – 100 hours a week?) Ultimately, even more time and money is spent in advance in showing you properties, driving to and from, taking time from other customers, family and friends to devote just to you, (often into the night and on weekends and holidays!) So, before a Realtor just pops up to “go and show,” there are a few questions they will ask of you as well! (more…)

Chris Brown, Orlando Mortgage Pro puts it in simple terms.. and this should alert some folks who are sitting on the fence pondering the question on whether or not to purchase now or later.
Chris equates it like this:
Numbers speak! “If you are waiting for prices to fall, here is something to think about… ”
A $250,000 house today at an interest rate of 4.375% = a monthly payment of $1248.21 PI!
That same monthly payment at an interest rate of 5.375% would only = a $222,906 loan amount.
In other words, the house would have to go down over 10% [$27,094] before the payment would be the same (at a higher int rate).
As a Realtor, my take on this is the reverse:
If you can afford a payment of $1248.21, you qualify for a purchase price of $250,000 at an interest rate of 4.375.
If the interest rate rises one point, to 5.375, the purchase price of the home you can now afford just dropped to $222,906!
$27,904 is a lot of money to walk away from if you buying a home.
If I were a home-buyer I’d think twice about waiting. Home prices in Tallahassee, FL are low, and interest rates right now are at a 40 year low. Consider a purchase now before rates rise. Rates below 5% or 6% will not last.

The answer is, “YES!” Don’t wait to hear the words, “I am sorry, that home is under contract already.”  Work with a Realtor so that when you drive by a home, you know if it is for sale or not or if it is in your price range. If you have a Realtor, you have a direct connection to real-time housing inventory, pocket listings, and sales statistics. You will also have daily emails on listings that fit your specific search criteria. If it’s not on your list, chances are, it is not within those criteria you will set with your Realtor.

The fact that you are looking 6 months in advance is a smart thing to do! Seeing what is on the market is a great way to start your home search. Go ahead and “Make the Committment“. It’s never too early to assemble your team of your Realtor, loan officer or mortgage broker, closing company, etc.

As I mentioned, working ahead of time 4 – 6 months is exactly what buyers need to do. Here are some practical steps to prepare you for finding your next home:

• See a lender. Ask for a recommendation! Begin the loan prequalification process. Make an appointment with a lender to sit and get a list together of all the things you need for a loan application. Talk to them about your present financial position, what needs to be improved, what you have to work with, what you want in a monthly payment, etc. Talk and learn about the different type loans available to you and the current interest rates. Get on their mailing list for updates on mortgage rates! (they send them to realtors, so ask to get on that list!)
• Choose your Realtor (Me, I hope!) Make an appointment early. At this appointment ask what you can expect your realtor to do for you, establish the best way to communicate while working together, tell your Realtor everything about why you are looking, what your are looking for, when you need to move. Now is not the time to be secretive! (Although this is confidential and respectful.)  Your Realtor is your negotiator and needs to know these things in order to negotiate the best deal for you! Ask questions ~ none are too ridiculous. This should be a fun time for you, so I will make it that way!
• Begin your home search now – Look at listings that your Realtor send to you, designed according to your specifications and needs. View Tallahassee homes for sale on this website. Begin researching schools, neighborhoods, drive in your favorite spots at different times of day, evening, weekends. No one can give you an effective description of a neighborhood like you can get from your own experiences. Research properties that you like. Look at the taxes, the utility rates, the structure, the age of systems. (Seller’s Property Disclosures are available for most all properties in the MLS- Multiple Listing Service). Give your Realtor feedback so they can tailor your search to your likes and dislikes. You’ll love Tallahassee!
• Plan for your offer even now. Review a Contract for Sale and Purchase with your Realtor. Review the Buyer’s Disclosures and Property disclosures. Discuss which title company you want to use and how much funds are available to you for a Good Faith Deposit. Be prepared to write an offer after you find the home you love, review the disclosures, discuss the comparable sales and active listings, obtain a good faith estimate of closing costs and monies needed to close.
• Keep in touch with me after you talk with you lender, let me know who you choose. Let them know we are working together and then you have your team all assembled!
• Let’s make an appointment ~ Let me know what is convenient for you and your family and I will work around your schedules.

From here it’s the negotiating, the offer, the closing and the follow-up. I’m with you all the way!

If you are relocating and need a Realtor in another city, please contact me for a Realtor referral, I can help you find the right agent wherever you are moving.

Boy! HGTV has set some pretty high standards for sellers, buyers and Realtors. Our expectations of the perfectly staged home, the immaculate house cleaning on an hours notice with the picture-perfect set of toddler triplets who live in a seemingly storefront bubble is what we have grown to expect.  However, that’s not the average person’s reality, now is it?

Often, we catch people rushing to make dinner for their families, interrupting visits with families, attending sick loved ones (including the furry sort). Timing is not often perfect, and life happens. As sellers we often wait for those buyers who are running late with their Realtors as well. Usually, there is a reason..we are showing on an average 15 – 30 listings before the buyers can make a decision. There are issues with buyers as well, mobility issues, children in tow or parent’s tagging along.  Patience is a virtue in the real estate business.

As Realtors we want you to focus on what is important as you are looking at a home, or prepping your home for sale. Prepare for your appointment, look over these Home-Buyer FAQ’s.

Focus on structural and functional details, imagine how furniture will fit in a room, research property taxes and flood zones. A little less time sitting on furniture, looking at baby pictures and let’s give this family their home back, for now!

Sellers, we have a goal, to make a sale. Get ready to sell. If it’s not perfect it doesn’t have to be upside down. If it is, reschedule.

Yes, I’ve seen some sites while showing property, some have impressed me, some have annoyed me, and some have taken my breath away, (positively and negatively).  I’m a Realtor, but more, I’m human and I understand how people live and care for the things they value or don’t value. It takes all kinds of people to make the world go ’round and if you really want to get hung up on all that, there’s lots of reality tv shows you can watch!

As for my customers, they will be taken care of and prepared for their showing appointments and their listing presentations, as well as they can, but… we may be late from time to time.

It should be easy…or at least easier than this:

Real estate agents are struggling to maintain their sanity in today’s market. The increase in inventory has us running from listing to listing, previewing properties for buyers who want to find “good deals.”  Many hours are spent making phone calls to listing agents or bank representatives in an attempt to see what the condition of the home is, and just how they acquired the homes in their inventory.  There are more, and unfortunately will be more bank owned properties on the market until jobs re-emerge and unemployment rates lessen.

So what are you buying? These REO homes may need work. Are you prepared to do this yourself, or have the funds to hire it out? REO properties are typically “as-is” sales with no disclosures. Point here is you better have a qualified, certified, professional home inspector to check these properties. Some have been on the market a short time, others may have been vacant for years with no life, air, or electricity running through them! Unlike homes occupied or owned by humans who can provide you with details about the home and it’s condition,  banks will not provide you with any history of the  home, because they simply do not have this information. Who knows, part of the fun is uncovering things about your home yourself. you might just uncover a hidden treasure as well!

What’s the value of and REO property? Comparing these homes to other properties take professionals. What may have been a seemingly good deal last week, may not be next month or next year. Hire a REALTOR to compare this home to recent sales and inventory. Want to STEAL it? If it’s priced comparably, and it is what you are looking for, is it worth making a low offer that will bring every other sale down, making your investment even longer to appreciate? Your purchase will directly affect future sales and if the cycle continues, pretty soon, no one in your neighborhood has much to work with. What I tell my buyer is this, “If you love the home, if you can see yourself living here  for 5 – 7 years, if the payment on this home is manageable and if the home if priced in line with others in the neighborhood, then buy it for that price. If you’re buying a home don’t obsess with “stealing” a  home. Prices are lower than they have been in about 7 years, interest rates are low, now that is a “Deal.”

REO property sales generally close faster if a buyer uses the lender that holds the property as well. Look into this, ask how long they expect it to take to close, then ask you local lenders the same question.

Ok,.. still going back to 1998? (If you watched the video, you will get it..)

Still on the Fence?

At risk of sounding like a hectoring parent, there are reasons Realtors are pounding the point about buyers entering into contract by April 30^th.

Here’s Why:

1. Rates are low today, but they will not be tomorrow. In just a few days, the Federal Reserve will withdraw from the mortgage-backed securities market ( a source of funding for loans!). Private, FOR-PROFIT companies will then be funding and pricing loans.  For profit means.. your rates just went up.
2. The spread between 10 year Treasury notes and Fixed-rate mortgages is at a 10-year low. If there is even a slight increase in risk appetite, the seemingly, but not comparable government backed securities and treasury securities will surely see a noticeable increase in mortgage rates.
3. Finally… the tax credit issue. If you have not heard by now,.. your Realtor is not doing their job to explain to you that there will be NO extension of the tax credit. If you are not in contract by April 30^th, you WILL have missed this opportunity to receive a tax credit in 2010. Plain and simple, it is NOT coming back. Is $8000 (for first time buyers), or $6500 (for 5+ year home-owners/new buyers) important to you?

The time for locking into a purchase before April 30^th is less than 5 weeks away. Get out there, get on some of this inventory, use some of your money for repairs if these homes are not quite perfect..negotiate for repairs, for closing costs, lock into some of the down-payment assistance programs that are available and get it done!  Your Realtor is about to be busier this month than ever before. Don’t let this opportunity pass you by if you are considering buying a home. Don’t kick yourself later, but I know you will if you don’t move on this!

P.S. The difference in a 30 yr.mortgage at 5.25%  vs  7.00%  is $192.26 a month!  An increase in payment of almost $200.00!  Still thinking of waiting?

If so,.. this may tip the scale…..You just reduced the amount of home you could purchase by $30,000 !! ….. Still thinking of waiting?

Figures based on $170,000 30-year Mortgage at 5.25 and 7%.

Payment of $938.00 for $170,000 at 5.25

Payment of $931.00 for $140,000 at 7%