There are many facets of buying a home and the process can be a bit overwhelming at times. However, buying a home is very exciting and if you avoid various home buying mistakes, it will make your home ownership process one that is rewarding for many years to come. I recommend that home buyers avoid these three common mistakes when it comes to purchasing a house.
#1: Not working with a buyer’s agent.
A knowledgeable Realtor can help provide advice that fits your specific situation. An experienced buyer’s agent has worked with hundreds of different home buyers and they can help you understand what’s happening each step of the way. You’ll also be able to ask questions that may come up and your agent will also help you plan for closing costs and other costs that may arise. In addition, a buyer’s agent will help you know if a home is worth the price, what its resale value might be, and they will be your advocate when it comes to negotiations. When it comes to buying a home, you want someone on your side, and a qualified Realtor will be there the whole time.
#2: Not getting pre-approved.
Getting pre-approved for a mortgage serves dual purposes: it shows sellers that you’re serious and it also gives you a realistic idea of how much you can afford for a home. Work with a lender that you trust and gather up all relevant financial documents like pay stubs, tax returns, and bank statements. Your lender will work with you to get the information needed to provide an accurate pre-approval letter. Then, you can start shopping for homes within your budget.
#3: Not getting an inspection by a credentialed inspector.
A credentialed inspector will help alert you to any potential problems that the home may have such as faulty wiring, plumbing leaks, or structural issues. A layperson generally wouldn’t be able to spot these things, so when it comes to spending hundreds of thousands of dollars on a home, it’s worth it to pitch in a little bit extra to pay for a qualified and experienced inspector that holds proper credentials. Skipping that step could be costly, and you may end up paying for it later when you discover something major is wrong with the home.
If you’ve decided that you’re ready to buy a home this autumn, contact me today to help you get the ball rolling!
We continue to hear that the housing market is unbalanced—that there are more buyers than sellers. There is no single reason for the situation we are in today. Rather, the situation has developed this way because of several combined factors that suggest that the market will not return to equilibrium any time soon. Although this varies widely by location and price range, here are some reasons that this might be happening.
Reason #1: Demographics.
The first reason for the shortfall is purely demographic. As “Boomers” age, they are not following the trends of previous generations. Many are staying in the workforce far longer than their predecessors, and because of their postponed retirement, they don’t feel compelled to downsize their living situation. In fact, almost two-thirds of Boomers plan to age in place and do not plan to move even after retirement. Without this anticipated supply of homes from downsizing Boomers, there aren’t enough homes for move-up buyers. This limits the supply of homes for first-time buyers.
Reason #2: We don’t move as often as we used to.
As an overall nation, people aren’t moving as often. After experts have analyzed mobility, it’s clear that people aren’t required to relocate as frequently for work that matches their skillset. Because there has been a drop in geographic-specific jobs, are simply moving with less frequency.
Reason #3: Builders aren’t building as many homes.
Many builders are not building as many homes as they were in the past, because of three main factors: land supply/regulation, labor, and materials. The costs related to building a home have risen rapidly since the Great Recession, and this is keeping many builders from building to their potential. In addition, to justify the additional costs, many of the homes that are being built are larger and more expensive, which makes it difficult for many first-time home buyers that cannot afford the price of a newly constructed home.
So, what should you do in this kind of market? My advice is to focus on what works for your specific needs and if you want to explore what your options are, give me a call. I’m always up for a discussion about which approach might be right for you.
**Content an excerpt from blog posted 8/2017 by Mathew Gardner, Chief Economist for Windermere Real Estate
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 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/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.
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!
If you’re thinking about selling your home, you have a lot of different factors to consider. You’re thinking about where you’ll move and what it will cost, and finding a qualified Realtor is one of the biggest decisions. If one of your questions involves finding out more information regarding reduced commission versus full rate services, here I’ll cover what the three basic levels of fees and services include.
#1: Very Discounted Services: This will include access to the MLS only. The seller will input all information and will set the buyer’s agent fee. The seller pays for marketing and will negotiate elements of the contract. This can work for some situations, but being an unrepresented seller in today’s complex market can be risky and oftentimes results in a lower net price. Most buyers will have representation, so the fee you save is really only half of the full real estate fee.
#2: Cut-rate fees: This will again only save half of the real estate fee, as buyers are usually represented by an agent. With full service representation, you usually get more experienced and knowledgeable agents to work with you. This is the “secret sauce” that can save you big time in the end – especially in the areas of price negotiation, inspection negotiation, and other timing issues that can derail the overall transaction.
#3: Full-service: When using a full-service Realtor, you’ll get a fully developed and proven marketing plan. The Realtor will additionally help you develop a pricing strategy that will help get your home sold in a timely way. You’ll work together to address issues upfront that could cause a buyer to pass by your home. The key here is knowledge, knowledge, knowledge! An experienced Realtor has been part of numerous, varied transactions that can help benefit you throughout the process so you can get the best price for your home with the quickest closing date and the least hassle.
If you have decided that it’s time to make the jump to sell your home, now is a great time to do that. The information around fees can be a complex topic to consider, so if you have additional questions, I am happy to sit down and talk with you about what could work for you and your specific situation.
Summer in the Pacific Northwest is amazing. The days are longer and warmer and the rain is gone so you can get outside and enjoy the great outdoors. If you’re in the midst of buying or selling a home and you feel like you’re overwhelmed with the details, don’t forget to take time for yourself and enjoy the beauty that Washington has to offer. Here are some great tips on activities that you can participate in locally this summer.
#1: Summer reading program through Fort Vancouver Library.
Kids, teens, and adults alike can sign up for the summer reading program through the Fort Vancouver Regional Library. Log days that you’ve read and you can earn rewards and prizes with the free program. The best part: it keeps your reading skills sharp throughout the summer.
#2: Summer concerts and movies in the park.
Every year, the City of Vancouver puts on a summer concert series in Esther Short Park. Each concert is free and family friendly. Enjoy a variety of talented local artists, including Vancouver Pops Orchestra, and enjoy food from local vendors, too. The city also puts on Friday night movie nights in parks around Vancouver in July.
#3: Dive in!
Jump in and cool off! Klineline Pond is a great spot to cool off and enjoy the warm summer weather. The pond is located in a large park setting with large water features/fountains for the little ones to run around and cool off in, too. Not to mention, there is a playground, plenty of picnic tables, and lots of green space to walk. If you want to stay indoors to swim, the pools at Jim Parsley Community Center, Propstra Aquatic Center, and Firstenburg Community Center are great places to swim.
#4: Hike or camp!
Living in the Northwest means that there are many beautiful hikes and walking trails. Hike Mount St. Helens, take a drive out through the Columbia Gorge and hike the Multnomah Falls, or enjoy some family time by setting up a tent and a mini-campground in your backyard for one night.
No matter what you decide to do this summer, take time to relax and enjoy the beautiful area we live in!
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.
I work with many individuals and families every year and each one has a different story. This story comes from the Strickland’s. They are Pacific Northwest natives and after living in their first home for nearly 12 years, it was time to make a change. Here’s their story.
My name is Brooke Strickland and my husband Bryan and I have been married almost 14 years and have two children. We both grew up in the Pacific Northwest and have made Vancouver, Washington our home. We bought our first, very small home (only 925 square feet!) in 2004 and we originally planned to live there for only 5 years. My husband had always wanted to be in the downtown area, so after almost 12 years (rather than our original 5 years), we decided to start exploring a move.
I loved our little home and was nervous that we wouldn’t find a home that was affordable in the area that we wanted. I stomped my feet and was hesitant, but we finally decided that it was time to expand. We knew Nancy’s experience was unmatched and I had full confidence that she would help us sell our house quickly and help find us a new one that we loved, and that wouldn’t make me cringe every time I opened up the bill to pay the mortgage every month.
We listed our home for sale in April of 2016 and within 18 hours, we had 3 offers on the table. We met with Nancy and she walked us through what the offers looked like and which one would be the best. Within days, we had gone from prepping to sell to having a sale pending sticker up on the sign. Things went very fast.
In the meantime, we were looking for another home. I looked obsessively online and found one that was perfect in every way, but it was priced too high for our budget. My husband (and Nancy) encouraged me to just look at it. We did and boy, did we fall in love. The house had been for sale for over a year and already had three previous offers that had all fallen through. Our family believed that it was “meant to be” and we entered negotiations with the sellers. In this market, we were nervous that there would be competition among other people trying to buy the home, but we didn’t have any. We literally wrote our offer and with only a bit of back-and-forth, our offer was accepted. And the best part? We came in UNDER the selling price. There were so many things that lined up during the process that told us that we were supposed to go forward with this home. With Nancy’s quick thinking and expert negotiation, she was able to help us buy our dream home. We just surpassed the one-year mark living in our dream home and almost weekly, we say “we can’t believe we live here!” This house is truly a gift and something we will treasure for many years.
Nancy can tell you that I asked probably 5,000 questions during our time working together. She was more than patient with me and explained everything in a way that I could understand it. We highly recommend her to any of our friends or acquaintances that are looking for a Realtor in the area. There is no one like her and we credit much of our story to her willingness to walk alongside us while we explored and tested out our options. We are so thankful!
I love being part of the ‘story’ of different clients—moving from a condo to a house, moving from acreage to in-town, moving into the area, moving out. Give me a call if you would like to talk to me about being part of your story.
** I conduct business in accordance with all federal, state, and local fair housing laws. It is our policy to provide housing opportunities to all persons regardless of race, color, religion, sex, familial status, handicap, national origin or sexual orientation. **
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:
- 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.
- 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.
- 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:
- 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.
- 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.
- 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.
Buying or selling a home is a one-of-a-kind adventure that is often filled with many unexpected twists and turns. Why hire a Realtor when you could figure out how to do the job yourself? An experienced real estate broker can serve as an invaluable resource. Here’s are some tips on how to select a Realtor and what it can mean for you.
#1: Figure out how they work.
Working with a Realtor that knows you and your specific needs is key. For example, do they sit down and get to know what you’re looking for, such as schools, land, house features, or neighborhoods? This should be a personalized process that’s based on understanding and trust. Realtors offer a constructive and positive attitude during times that you may feel overwhelmed. You’re never left to figure things out on your own. And while you might want to do some leg work during the buying or selling process, your Realtor should do all of the heavy lifting for you.
#2: Ask about what kind of clients they work with.
Some Realtors work only with sellers and they’ll have assistants work with buyers. Others work strictly with buyers. Look for a Realtor that has a mix of both clients – some buyers and some sellers. This can provide the Realtor greater insight when it comes to making or receiving offers. Realtors will have a clear idea of what clients on the “other side” might be thinking and they’ll help you find ways to select the right offer or make one that the seller will find attractive.
#3: Look at their experience.
Experienced Realtors have negotiated hundreds and sometimes thousands of real estate deals and because of that, they can use their skill to get your house sold or to help secure the home you want to purchase. Your Realtor should be an ever-present mediator that is with you through the process. You don’t have to worry about stumbling through the steps in the dark, as they can leverage their experience to help get the job done efficiently.
#4: Understand their style.
Get to know the Realtor and their style. Are they quick to respond to your questions and when they do, are they thorough? Is the Realtor easy to get along with and how does their personality coincide with yours? Your Realtor’s style should be comfortable for you. Real estate is a very personal business and requires finding the right “match” – one that feels natural for you and your family.
Buying and selling your home can be an exciting time and throughout the process, your Realtor should keep you updated by providing market stats, information on how your home is performing while it is on the market, and they should also let you know when new listings come available if you’re looking to buy. If you’re looking for a Realtor to help make your home sale or home purchase a reality, contact me today.
A “flipped” home is one that has been purchased, renovated or remodeled, and is now listed for sale for a higher price than what it was initially purchased for. Most often, these homes are bought by investors that are able to buy the home for a good price (often below market value), fix it up, and sell it for a profit If you feel that buying a flipped home is a good option for your family’s needs, there are a few key points that you should consider.
Tip #1: Research the previous condition of the home.
If possible, find out what the condition was of the flipped home before it was purchased and renovated. Flipped homes are often purchased as bank owned properties, which usually means they were vacant for a time, which sometimes means there are some issues that need to be tackled upon purchase. If you can find out who the investor was or what company flipped the home, you’ll be able to determine if the quality of workmanship is good. Find out if this is their first home that has been flipped and/or what type of materials they generally use in their homes so you know what you’re getting into. Your Realtor will have experience with flip companies and can give you information as to their reputation.
Tip #2: Consider your financing.
If you’re considering buying a flipped home, talk to your mortgage representative beforehand. Sometimes, lenders and certain types of loans require that a flipped home be owned for a certain amount of time before they will lend money to a buyer. If you have specific questions about what loans you qualify for, a mortgage professional can help you get that squared away before you fall in love with a home.
Tip #3: Check for permits and get an inspection.
Many times, renovations on a home require permits or certificates of compliance. Do your research and see if the flipped home has permits on file and when they were obtained. Again, your Realtor can help you check into this.
In addition, any time you buy a home, it’s wise to get an inspection. It’s very important to get an inspection on a flipped home, as the inspector will be able to point out any defects or problems with the home, which can save you lots of money and frustration later down the road.
Purchasing a flipped home can be a great purchase for a buyer. But, as with any big purchase you’re about to make, it requires a little research. Ask those important questions and talk to your Realtor as well as your mortgage professional.