A Day In The Life of a Realtor

Realtors have a busy job that sometimes looks different from one day to the next. In addition to staying on top of what current real estate regulations and trends are happening within their sphere of work, real estate agents have a multitude of other tasks that come with the job of helping people through the process of buying and/or selling homes. For me, these tasks are part of what makes my job fun, and the different things that transpire week after week, are what keeps things interesting and exciting. Here’s a snapshot of what my days as a realtor looks like.

#1: Driving by homes.
I know that my clients are on the hunt for the right home, so I am on the lookout for homes that could work for active buyers that are in the market for their next space to call home.  Having an idea of what each client wants means that I won’t be bringing them to homes that are clearly not what they want. This saves time for all parties involved!

#2: Handle multiple emails/phone calls.
Aww, the never-ending list of inbox emails and phone messages. A lot of people can relate with this, so I make sure I spend time each day emailing and calling people that have requested assistance. Most of the time, I’m coordinating multiple details regarding showings, closings, offers with clients, escrow, lenders, and more!

#3: Coordinate details for new listings.
Considering selling a house? I work with many people that are not sure if they want to sell yet, so for these people, I work up a Comparative Market Analysis that provides information on recently sold properties in the area. These reports look at houses that are somewhat similar and give real estate professionals an idea of what price a potential client’s home could be listed for.

If you’ve just listed a house, there are a lot of little details that need to come together before it goes “live” to the public. For example, we’ll need to prep for an open house by ordering printed materials and snacks, order a sign for the yard, and put a lockbox on the listing so pictures can happen. These are just some of the things that need to happen before we can start showing the home.

#4: Go over repairs and other mid-sale to-dos.
For clients that have found a home that they’ve put an offer in on, there are often repairs that need to be requested. As a buyer’s agent, to determine a list of reasonable repairs and will advise which items are necessary and which could be left out. As a seller’s agent, I will review and recommend to the seller what the buyers requested, and which ones should be completed.

#5: Coordinate paperwork and financial details.
Once a home is ready to close, there are several pieces of paperwork and other financial details that need to be coordinated. There are often questions on specific terms within the paperwork as well as questions on when things will happen once papers are signed.  Whether it’s leaving a check for the contractor at a pending sale or laying out a schedule before recording for a client who will sign out of town, I work with clients to help make the paperwork process as easy as possible.

My daily responsibilities as a real estate agent require a balance. However, with my two decades of experience and my combined love of meeting with all varieties of clients, real estate is a natural fit for me. Contact me today for information on what it will take to start your adventure in buying or selling a home.

Posted on April 4, 2018 at 6:10 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , ,

Mortgage Insurance: What Am I Insured Against?

If you’re buying a new house, you’re likely looking at the various terms on your paperwork and have noticed “mortgage insurance” on there. It’s not something that everyone is familiar with, so here is some basic info that can help answer your questions.

What is mortgage insurance?
Mortgage insurance is not a benefit to the home buyer and does not protect them against anything. Actually, it will only protect the mortgage company/bank in the event that the borrower defaults on the loan and doesn’t pay their mortgage. It is required when a borrower puts less than 20% down on the purchase or has less than 20% in equity during the refinance process on a home.

Aaron Hicks, Mortgage Consultant with Homestreet Bank shares that when a borrower is looking to get a mortgage, it can affect the loan approval process. Hicks shares, “It can increase the borrower’s monthly payment, which overall effects a borrower’s debt-to-income qualifications. Mortgage insurance companies require stricter guidelines depending on a borrower’s debt-to-income, credit score, loan to value, and type of property. Sometimes mortgage insurance companies require additional supporting documentation above what the bank may require and/or additional underwriting review.”

What kind of mortgage insurance is there?
Hicks says that there are multiple types of mortgage insurance for conventional loans. There is monthly mortgage insurance, single premium mortgage insurance, or split premium mortgage insurance. There is also lender paid mortgage insurance. For some loans, especially FHA loans, the premium will last for the life of the loan, even when your equity position gets you above the 20% mark. If the homeowner has a conventional financing method, the insurance can be removed once 20% equity in the home is reached. I can do a quick market analysis to determine if borrowers are at the 20% equity mark.  The lender will require a formal appraisal to remove mortgage insurance, which costs $400-$600. So, it is a good idea to verify you’ve reached that point before ‘getting official’ with your request.

Purchasing a home is very involved and requires various steps and attention to detail. Oftentimes, questions and issues will arise, and this is one of the many reasons why it’s critical to work with an experienced Realtor. Whether it’s a question about mortgage insurance or something else entirely, I’m happy to answer your questions and will work with you to help get the answers you need. Contact me for info!

Posted on March 19, 2018 at 10:38 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , ,

Q & A with Nancy Johns

I’ve worked in the real estate industry for a long time and I enjoy getting to know people as I work to help them find the best home for their unique needs. Just like I enjoy learning more about people, many of my clients and potential clients want to learn more about me and my specific expertise when it comes to my involvement in real estate. Here, I answer some of the common questions I get about me and my experience.

Q: How long have you been in real estate and how did you get started in it?

A: I got involved in Clark County real estate in 1992 and since 1994, I’ve worked with Windermere.  Before that, I worked in the high-tech industry in marketing management. After transitioning out of that role, I felt like working in real estate was a natural fit for me.

Q: How has your career background helped you with your real estate career?

A: Coming from industries in high tech, I brought experience in management, budgets, and developing complex problem solutions with ‘lots of moving parts’.  All of these have been invaluable as I understand markets, help clients navigate lending and paperwork, and orchestrate all the ‘moving parts’ of every real estate transaction, whether it’s helping people move on from their current home, or helping someone find a home to buy.

Q: How has real estate evolved since you began?
A: The biggest change to Real Estate is technology.  I started when we had a printed book of homes, YIKES!  Thank goodness, now we have much better ways to search for homes, property information and communicate with clients and each other.  Of course, coming from this industry before, I was excited to see the real estate industry evolve.

Q: What is your favorite part of your job?
A: Meeting with all varieties of clients is very gratifying. I’ve worked with artists, families, professional musicians, and higher-up company leaders. As a buyer’s agent, each client comes to me with various wish lists and I work closely with them to find what they need. When it comes to selling a home, I use my experience to price your home for a fair sale. Determining the right price from the get-go is important and it can help minimize stress for sellers listing their homes. The combination of these things is what makes the job fresh and rewarding.

Contact me today for information on what it will take to embark on your journey in buying or selling a home.

 

 

Posted on March 8, 2018 at 6:53 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , , ,

How does my credit score impact my purchasing ability?

If you’ve decided to buy a home this year, you may have some questions about how your credit score will impact your purchase ability. This is a common question for many potential homebuyers, so here, I will discuss some of the primary things that you’ll need to know once you start the homebuying process.

Credit scores and credit reports will affect a borrower’s ability to purchase a home in a few different ways. Credit reports are a footprint that allow banks to review a borrower’s credit history. The information found in these reports will give them the information they need to determine the level or risk they’re taking by loaning money to this person. The higher the credit rating, the lower the risk for the bank. The lower the credit score, the higher the risk for the bank. In addition, remember that your credit score will affect the interest rate of the loan you obtain.

Here are some helpful tips on how to bolster your credit score and secure a good loan on the home of your dreams.

  • Make on-time payments on all borrower accounts
    • Missed or late payments will negatively affect your credit score
  • Satisfy unpaid collections, judgements and tax liens (even if these are medical in nature, it’s ideal to pay them off or settle prior to purchasing a home)
  • Establish a credit history by opening a credit line. We are often taught that credit cards are bad. However, they’re essential for establishing a solid credit rating to borrow future funds. The key is to keep the balance below 30% of the allowed limit, always. It’s ideal to pay the balance off each month as well.
  • Minimize credit iniquities. Too many inquiries can cause credit scores to drop.
  • Don’t close existing revolving trade lines if they’re in good standing. When you close a credit card you lose the on-time payment history which influences your credit rating. (1)

The specific details as to what credit scores are needed to obtain a specific home loan:

– Conventional Mortgage: credit score of 620
– FHA Mortgage: credit score of 580
– Veteran Affairs (VA) Mortgage: While the VA does not have a minimum credit score requirement, Quicken Loans requires a 620 credit score on all VA loans. (2)

The bottom line: the better your credit score, the easier it will be to get a loan for your home. Contact me today for information on what it will take to embark on your journey in buying or selling a home.

 

  1. Information courtesy of: Aaron Hicks, Mortgage Consultant with Homestreet Bank
  2. Information courtesy of: Jevon Domench of Academy Mortgage Corporation
Posted on February 20, 2018 at 5:04 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Mortgage Insurance–what am I insured against?

If you’re in the process of purchasing a new home, on your bank paperwork, you may have noticed something called “mortgage insurance.” Not sure what it is? There are several different types of insurance that homeowners should be familiar with. Here, I will explain the basics.

Title insurance:
Title insurance from the seller comes from the title company. It protects home owners and lenders from damage or property loss that may happen because of liens or other defects in the title to the property. Each title insurance policy is subject to specific terms, exclusions, and conditions.

Homeowner’s insurance:
Homeowner’s insurance/hazard insurance/fire insurance is a policy issued from an insurance company and it protects your property as well as the contents and possessions inside. It also provides liability coverage against accidents in the home or on the property.  At closing, homeowners will pay for the first year’s policy in full.

Mortgage insurance:
This type of insurance is not a benefit to a homebuyer. When a lender provides a loan and the buyer puts less than 20% down on the purchase, the lender takes a bigger risk. If the buyer ends up defaulting on the loan and they don’t have much “skin” in the game, it’s possible that the lender won’t cover their loan amount when it comes time to liquidate the property. This cost can be paid within your monthly mortgage payment or up front and it will cover the lender’s loss if something were to happen. For some types of loans, particularly FHA loans, the premium will last for the life of the loan, even though your equity position might get you above the 20% mark. Conventional financing will typically have a provision for mortgage insurance that can be removed once the homeowner has 20% equity in the home.

Buying a home requires many different steps and there is a lot of research that is required. The insurance process can be complex and sometimes confusing, especially if you haven’t gone through the home buying process before, and that’s one of the many reasons why it is important to work with a well-qualified, experienced, hands-on Realtor. If you have questions about it, I’m happy to sit down and talk with you about any questions you may have!

Posted on September 5, 2017 at 7:31 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , ,

Key items before closing on a home

The process of buying or selling a home is very detailed and requires a lot of moving parts. Once the end is in sight, you’ll need to prep for closing day. Planning for closing day can help make things run a little bit smoother. So whether you’re a buyer or a seller, here are some important must-knows on what you’ll need to have in place for closing day.

For the seller:

  • Repairs will need to be done and receipts obtained
    • Before closing can happen, all repairs that were requested during the selling process will need to be complete. Once everything has been done, be sure that all of that is documented well and that you have all receipts readily available.
  • Be ready for a buyer walkthrough
    • Once repairs have been completed, the buyer will likely want to do a walkthrough to make sure everything looks in order.
  • Arrange for your utilities to turn off
    • Call your utility companies, cable/Internet company, and any other services that will need to be turned off and transferred to your new residence. However, it’s important to note that you shouldn’t cancel your homeowner’s insurance on your current address until the final sale of the home has been recorded.
  • Gather all brochures, keys, garage door openers, etc.
    • If you have collected brochures/manuals on specific appliances in the home, or you have other important documents that need to be left for the new homeowner, make sure you have those readily available. In addition, you’ll need to leave them the keys to the home, mailbox, and any garage door openers you have.
  • Sign documents
    • This is the biggest step that transfers ownership and gets the process moving toward completion! It can happen several days before the “closing date.”

For the buyer:

  • Obtain receipts for completed repair work
    • If repairs were done in the home you’re purchasing, make sure you get all of the receipts and warranties associated with the work that was done. Keep these in your records in case you need to refer to them later or in case something goes wrong with the repair down the road.
  • Do a walkthrough
    • This is your chance to make sure that the repairs were done right and that things are good to go so you can move forward with signing closing papers.
  • Set up utilities
    • Call your utility company and schedule a time when you want water/electricity to come on. While you’re doing this, schedule a time for Internet/cable service to be hooked up, or any other services that you will need ready to go when you first move in.
  • Sign any last minute lender information
    • This is an important step! You will need to sign a closing disclosure that needs to be acknowledged to start a 3-day waiting period before you can sign final closing documents.
  • Sign documents at escrow
    • Here, you’ll sign papers that allow you to complete the home buying process. After the sale is recorded, you’ll get keys to your home and you’ll be able to start moving in!

If you’re confused about which step comes next, don’t worry! I will be there to walk you through the process. If you’re looking to buy or sell a home, contact me today for information on how I can help.

Posted on July 3, 2017 at 4:11 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , , ,

Selling your home? Should you price low or high: what’s at risk?

If you’ve determined that now is the right time to sell your home, congratulations!

You are entering into a ‘seller’s market’— this means that there are more buyers in the marketplace than sellers and it’s a great time to sell.  One of the most crucial keys to selling quickly with a maximum return is to establish the RIGHT price. You want to maximize your return but set a price from the start to position your home to sell in a reasonable timeframe and let you get on with your next adventure.

WHAT HAPPENS IF YOU PRICE TOO HIGH?

There are several major risks if you price your home too high.  First, your target buyer may not find your home online or see your property because the price is out of their price range.  In addition, buyers who are shopping in a higher price range will be comparing your home with others and priced too high, you will not compete, actually making the competition look like a better buy.  Homes priced just 10% high reduce the number of buyers by 30%.  The end result is that your home could sit on the market for a longer period of time which means your ownership costs continue and most importantly you can’t “move on.”

HOW CAN WE SELL YOUR HOME AT THE RIGHT PRICE?

Call me! I will do research on what the market conditions are in your neighborhood, taking into consideration your home’s features, age, location, and updates/remodeling you have done.   Then we’ll sit down and talk about your specific goals and needs, then set a price and terms of sale that fit those goals and needs.  We’ll develop a marketing plan specific for your house and price range that targets the right kind of buyers.  During the time you are FOR SALE, I’ll be sure we get input from buyers and their agents to make sure we know how they see our condition and price.  This allows us to make sure we do what we can to make your property more attractive to buyers.  All the while, we will keep aware of things happening in the local market and that might affect how your home sells.

Each home and each client has a unique story.  Whether you’re moving from a condo to a house, moving from acreage to the downtown core, I can work with you in that journey.

Posted on June 26, 2017 at 5:01 pm
Nancy Johns | Category: Selling Your Home | Tagged , , , , , , , , , , , , , , ,

What is the other agent looking for in a potential buyer/seller?

Buying and selling a home is a process that some people just do once or twice in a lifetime, so oftentimes it feels unfamiliar and awkward. Having an experienced real estate agent that can walk you through the various steps is so helpful. Listing agents want buyers to have specific things when it comes to purchasing a home. Buyers agents want sellers to have specific things, too. Here’s what they are:

Listing agents generally want the potential buyer to have the following:

  1. A competent agent.
    Listing agents generally want to work with a knowledgeable agent that is experienced in managing contingencies and is ethical throughout the process, especially when there are multiple offers on a property involved.
  2. A pre-approval letter.
    Going house shopping without a pre-approval letter showing what home price you’re qualified to shop for, is a time drain for everyone involved. Before shopping for a home, buyers should have a pre-approval letter from their lender that has credit, assets, and income verified. That gives agents parameters on what homes are within the buyer’s range.
  3. Reasonable expectations.
    Buyers have many ideas on what they want their next home to look like, but those expectations need to be realistic. In other words, buyers need to have reasonable expectations of house conditions based on the age of the home.

Buyers agents generally want the seller to have the following:

  1. A knowledgeable, competent agent.
    Working with another agent who has experience in using the right forms and standard processes is important, and working with another agent that is ethical is also key. In today’s market, there are often multiple offers on homes and working with someone who follows ethical guidelines in those situations especially is important.
  2. Empathy and realistic expectations.
    Sellers want to sell their home, but it’s important to keep in mind that buyers are facing a lot of stress in the process trying to find a home. Buyers agents appreciate sellers that have empathy for what buyers are facing in a low-inventory market. In addition, sellers that have realistic expectations of what types of repairs a buyer will ask for as a result of the home inspection is also important to making the selling process go smooth.
  3. Resources and information.
    Sellers should be proactive about finding reputable, licensed contractors to get repairs done quickly and efficiently, the first time. This will help the selling process go a lot smoother. In addition, sellers should stay informed about the closing process and stay on top of getting their paperwork in order so there are no unnecessary delays.

Buying a home or selling one can be an exciting, but overwhelming time in your life. No matter what position you’re in, you and your Realtor should be able to work well together on whatever steps are coming next. If you’re looking for a Realtor to help make your home sale or home purchase a reality, contact me today.

Posted on May 22, 2017 at 4:48 pm
Nancy Johns | Category: Home Buying Tips, Home Remodeling Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Mortgage Financials: Deciphering the Details

Last week we discussed the basic steps in the mortgage process. There is a lot of complicated detail in a new home loan.  Reading the fine print can be overwhelming if you’re not sure what it all means. Here are a few things to de-mystify the information coming your way.

#1: Choosing a good mortgage company and experienced loan officer.
An experienced loan officer will sort through all the financial complexities: the mortgage type of mortgage, closing costs, and monthly payment requirements. It’s in your best interest to meet with your loan officer before you make an offer—the purchase contract requires you declare your mortgage company within five days of agreement.

#2: Reviewing loan documents.
The multitude of documents you’ll be reviewing is quite daunting, but your loan officer will wade through them with you. At the onset, your loan disclosure will lay out all the details, and keep you from being surprised with closing costs. These costs generally include lender fees, closing fees, prepaid interest/insurance, prorated taxes, and HOA dues. There is a lot to create confusion! This is why a good working relationship with a lender is essential.

#3: Lock in your interest rate.
It’s important when your loan professional advises you to commit, that you lock in your rate ASAP—they can change by the hour! Most lending institutions are bound by the same guidelines, meaning that though one lender might offer a better rate, the quote can be manipulated by changing fees, especially the “loan origination fee.” If you want to shop around for rates, be sure that you’re comparing apples to apples. Rates are constantly in flux, so what might look good from one lender today could change tomorrow.

#4: Understand the terminology.
Feel free to ask your loan officer to define specific terminology that you should know. For example, what is APR? This is a universally term that defines the actual cost of your loan. It rolls lender fees into the cost, then recalculates the annual percentage rate—not to be confused with the “note rate” on which your payments are based. The general rule of thumb: the greater difference between the APR and the note rate, the more the lender is charging you for services.

Feeling confused? You’re not alone. You can see that a trusted mortgage professional is essential to understanding what you’re committing to. I have long-standing recommendations for competent, accessible, trustworthy mortgage professionals—seeing firsthand how they have worked with clients’ best interest in mind. Choosing one will serve as a major ally as you navigate financial details, paperwork, and terminology.

Posted on April 24, 2017 at 4:57 pm
Nancy Johns | Category: Home Buying Tips, Home Remodeling Tips, Selling Your Home | Tagged , , , , , , , , , , ,

When should you refinance?

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If you have lived in your home for a while and you’re considering completing a refinance, you likely have some questions as to when or if it’s the right time to do so. Refinancing is a big decision, as it requires a lot of details and time, but it can have some great benefits to it once it’s all said and done. When deciding whether or not you want to refinance, one of the key questions is to ask yourself how long you plan on being in the home. If you intend on staying in the home for several years, a refinance could be a great choice, as you’ll likely recoup the closing costs over your time spent there. For those that are looking to move in a couple of years, refinancing might not make as much sense.

Aaron Hicks, Mortgage Consultant at HomeStreet Bank in Vancouver provides some great reasons to take into consideration on when a refinance might make sense for you.

Reason#1: Reduction in interest rate
Refinancing to lower your interest rate and payment is one of the main reasons why people choose to refinance. Hicks says, “There are still many people out there that have a much higher interest rate on their home loan than they should considering the current market. Refinancing could very well favor a lower interest rate or reduced monthly payment that reduces a person’s overall outgoing monthly debt.”

Reason #2: Reduction in loan term
If you want to pay off your loan faster, refinancing to significantly lower your loan term could be a fantastic idea. In most situations for example, if a borrower wants to refinance from a 30-year fixed mortgage to a 15-year fixed, the borrower will save a substantial amount of money in interest every year.

Reason #3: Cashout.
If you have been in your home for a while and it has gained significant equity, many homeowners choose to refinance and take cash out of the equity. Hicks says, “Some people do this to consolidate liabilities, make home improvements, or use the cash to invest in additional real estate. The ultimate goal here is to have the cash you are taking out work toward future financial freedom.”

Reason #4: Change loan programs.
If you have an adjustable rate mortgage (ARM), it can be very helpful to refinance to a fixed rate loan. Hicks shares, “ARMs carry the risk of having their interest rate increase significantly. When this happens, this can cause severe financial burden on a person’s finances.”

There are many reasons to consider a refinance, but each homeowner’s situation is different. What may work for one, may not work for another. Sit down and look closely at your home loan and what is left to be paid back and consider whether a refinance is right for you.

Posted on December 12, 2016 at 10:32 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , ,