Greater Seattle Area Real Estate BlogRecently posted or modified blog posts in the category - Real Estate Newshttps://www.everydoorrealestate.com/blog/Copyright EveryDoorRealEstate.com2022-07-22T12:51:55-07:00tag:everydoorrealestate.com,2012-09-20:7846Our Market Won’t Crash: Here Are 5 Reasons Why
Five reasons why you don’t need to be worried about a crash.
Are we heading for a market crash? We’ve received this question from many concerned clients recently, so we want to share five reasons why you don’t need to worry about a crash:
1. Mortgage standards are nothing like they were in 2008. One of the biggest factors in the last housing crash was loose lending practices. Almost anyone could receive a mortgage with no money down. Now, standards are much stricter, and buyers are better qualified.
2. Prices are not accelerating out of control. In a normal market, the average home appreciates by 3.5% year over year. Prices are rising a little more than that in our market, but the difference isn’t huge. Home values are currently rising at a healthy and sustainable rate.
"Our low supply will keep prices high."
3. We don’t have a surplus of homes on the market. Before the 2008 crash, we had way too many homes for sale. Now, we have a housing shortage.
4. Increasing wages are keeping homes affordable. While home prices have been increasing, wages have been keeping pace. Mortgage rates are still low from a historical perspective, so it’s still relatively affordable to purchase a home.
5. Homeowners have tons of equity. During the last crash, most homeowners didn’t have much equity. When prices dipped, many of these people had to enter foreclosure. Now, homeowners have tons of equity, so even if prices fall, our market will be okay.
If you have questions about today’s topic or anything else related to real estate, please call or email us. We are always willing to help!2022-07-19T00:09:00-07:002022-07-22T12:51:55-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:6829Do You Believe These Real Estate Superstitions?The home buying and selling journey is a massive undertaking for anyone. It takes plenty of time, expertise, negotiation, patience, and sometimes, even a little bit of luck. And as far as luck goes, many follow these superstitions still, even when it comes to real estate. And since it's the season of holidays and festivities, we thought we’d touch on a lighter but equally interesting topic around the subject.
<img src="https://assets.site-static.com/userfiles/3899/image/superstitions.jpg" width="1000" height="1363" alt="Do You Believe These Real Estate Superstitions?" title="Do You Believe These Real Estate Superstitions?" />
Let's take a look at these ten most common beliefs and traditions that anyone might be curious about, even those who aren’t superstitious. Are you familiar with any of these?
Here's a moving day tradition that’s been important in many countries. New homeowners bring a carb or starch (either bread or rice; whatever is a staple in their place) together with salt when entering their house for the first time and before bringing anything else into it. Bread or rice represents the idea of prosperity so that the homeowners will never know hunger. Meanwhile, salt is believed to keep their lives filled with flavor and brings luxury. Other homeowners further this tradition by sprinkling some salt at the doorway to prevent evil spirits from entering. But since this means you need to sweep it after, it’ll bring us to the next superstition.
According to popular belief, you shouldn't bring an old broom into your new home. The old broom sweeps all negative energy and experiences from your previous home into your next home, including all of the bad luck you want to leave behind. Even if you aren’t superstitious, a nice, new broom signifies a fresh start, and you won’t be bringing all the dirt and dust to your next home.
Are you moving soon? You may want to pay attention to the day you move. According to Indian tradition, it's important to choose an ‘auspicious day’ to move into your new house. Rainy days, as well as a Friday and a Saturday, are considered unlucky and may prevent you from settling into your new home. On the other hand, Thursday is considered the luckiest day to move. This belief even applies to those who want to put their house on the market. Other Western culture superstitions claim that April, July, and November are the most unlucky months to move.
Smudging is a Native American ceremony where a sacred plant (often sage) is lit, allowing it to smolder and release its aromatic smoke throughout the new dwelling. Smudging cleanses the home and drives away evil spirits and negative energy lingering. The ritual ends with a blessing, mantra, or prayer to bring in new energy. Some sellers also do this to bring good luck and sell their homes quickly.
Another popular superstition is scattering coins around the living room to ensure prosperity. Some homeowners even place coins in the corner of every room, believing it will bring financial good fortune.
The most popular superstition held to help home sellers sell faster is burying a statue of St. Joseph. St. Joseph is considered the patron saint of families, working people, and house sellers and buyers. He was a working man and a skilled carpenter, which may account for him being the patron saint of workers and things to do with houses and real estate. Although selling your home quickly at top dollar is achieved through the expertise of an experienced real estate agent with professional marketing strategies, some sellers believe they will have a quick sale after burying a statue of St. Joseph. This statue is buried upside down (this way he will want to get out faster) near the sale sign, facing the house. Prayers are said to him for a speedy and favorable sale. Once the home has sold with his aid, dig him up and place him in a position of honor in the new home.
Have a friend who recently got the keys to their new home or a new neighbor just moved next door? If you're thinking of what to give them as a housewarming gift, you can cross knives off your list. Bringing a gift of knives is a no-no as it is believed that their sharp edges will sever your friendship or could cause a bad relationship between neighbors.
As strange as it sounds, a southern legend claims that painting your front porch blue will ward off ghosts and spirits. The reason for this was the belief that ghosts were unable to cross water. Since they mistake the blue porch for water, they stay away.
If you don't want Thor to accidentally burn your house down with a streak of lightning, it is believed that placing an acorn on a windowsill would protect it.
Whether you're already a homeowner or you’re soon-to-be, at some point, you’re likely to do a renovation project that will require you to use a ladder to reach high areas. Did you know that many people avoid walking under ladders for fear of the bad luck it will bring? Another popular superstition dating back to the medieval period involves ladders. Walking under a ladder is unlucky because of its connection to the symbol of the gallows. The gallows were where the hangings took place, so people wanted to avoid that fate, and superstition was born.
2021-12-21T09:57:00-07:002022-03-08T10:03:14-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:6834Preparing For Success
Today I’m going over how quality preparation will lead to success.
We’re currently in a challenging market. As with any challenge, your ability to conquer the challenge is based on two things: the quality of your team and the quality of your preparation. I've already told you about the value of our team, so let me share the value of our preparation. When we bring on a new agent, we provide a 12-week roadmap to success. In those 12 weeks, we draw from three areas of life as a real estate agent: management, methodology, and mindset.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />Management answers the question, “How do you manage yourself like a business?” This involves time, business, relationships, financials, and self-management. Methodology answers questions like, “How do I show a home?” and “How do I conduct a buyer consultation?” Mindset is laced into everything we do. Jim Rowan says, “It is the set of the sails, not the direction of the wind, which will decide where we end up.” Mindset is the set of the sails.
“Your success in any challenge will be predicated on your team and preparation.”
In addition to the educational pieces of management, methodology, and mindset, you also work with me to craft goals for your year. After crafting your yearly goals and breaking them down into actionable weekly goals, we meet weekly to discuss your progress.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />Whether you’re considering buying or selling real estate or you're evaluating your career as a real estate agent, I encourage you to keep building your team and working on your preparation. If you're interested in learning more about career opportunities with Every Door, don’t hesitate to reach out to us. We look forward to hearing from you.2021-11-15T10:27:00-07:002022-03-08T10:29:18-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:6893Why You Should Work With Only One Agent
Here’s why you should work with only one agent when buying or selling.
You’ve done your research and interviewed several agents. Now what? You should work with only one agent throughout the whole process; let me tell you why:<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />Working with one agent lets us negotiate more effectively on your behalf because we have a more complete understanding of your unique situation. When we sit down for a consultation and view homes together, we’ll get a better grasp on exactly what you’re looking for and the details that are important to you. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />You might be thinking that you’ll miss out on the combined knowledge of many agents if you commit to working with just one, but here at Every Door, we do things differently. Instead of being every agent for themselves, we are a team of experts with a back office full of data and pricing analysts, contract and negotiation specialists, in-house mortgage lenders, and inside sales agents who are all committed to helping you find the right home.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />
“At Every Door, we have a back office full of experts that support each agent and client.”
The right agent will have all the resources and connections needed to help you succeed in this competitive market. The client-agent relationship is supposed to be a partnership with mutual trust aimed at getting you into your new home. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />Call Every Door Real Estate today so that we can form a relationship and set you off on the right foot.
2021-10-18T15:03:00-07:002022-03-22T15:05:14-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:6917Why Do I Love Working in Real Estate?
Here’s a quick story about how I ended up in real estate.
Why did I get into real estate? Years ago, I bought my first condo when I was working as a teacher. I experienced the thrill of what it’s like to buy a piece of property, and I learned a lot about what it takes to be a good agent by watching what my agents were doing.
Why is a real estate agent an important part of any real estate transaction? Well, buying a home is a wildly exciting part of life, and people who purchase property for the first time are often married and starting a family. If you don’t work with a real estate professional, this exciting stage of life could potentially become a stressful nightmare.
But that’s ultimately why I like working in real estate; it’s deadly serious in that you’re working with people’s lives and you’ll ultimately be responsible for their success, but you also get to be a part of this incredible time.
If you have any questions about real estate or the industry in general, please feel free to reach out to me. I hope to hear from you soon!
2021-04-20T18:29:00-07:002022-03-22T18:30:55-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:6943How to Buy and Sell Simultaneously
Here’s our advice for dealing with two real estate transactions at once.
So you’re ready to go shopping for a new home, but you need to sell your current home as well. You have two options: You can either list your home and request that the new buyer give you a rent-back, or you can start shopping now and wait to list until you’ve found your new home. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> The first option has limitations because, while it may work in some cases where the seller’s timeline is more flexible, most sellers prefer a buyer with more certainty.
“Every seller and buyer has a unique set of needs.
— Michelle Senechal
Listing first allows you to start shopping and become more familiar with the market while working on getting your home under contract. This option looks much stronger to a seller, and listing first will better prepare you to make a stronger offer. You’ll be one step closer to fulfilling your contingency. Every seller and buyer comes into a transaction with a unique set of needs.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you’re in a similar situation or have any real estate questions in general, don’t hesitate to reach out via phone or email today. We would love to hear from you.
2020-12-08T12:25:00-07:002022-03-24T11:26:44-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:6957Why I Chose To Work With Every Door Real Estate
Here’s how Janine Rasey was able to completely turn her career around.
Before making the transition to Every Door Real Estate, Janine Rasey hung her license at a large-scale brokerage while also working a part-time job to keep herself afloat. After two years of not living up to her full potential, she had to make a change.
After her switch, Janine doubled her business in six months and was able to walk away from her part-time job forever. She knew she had the right personality and passion for real estate; she just needed more structure and opportunities.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> “I’ve never worked in such a supported environment. At any given hour of the day, I am able to get my questions answered in a matter of seconds,” said Janine.
“Our operations team makes transactions streamlined and organized
— Janine Rasey
One of Janine’s favorite things about working at EDRE is the operations team, which takes care of agents’ administrative needs to ensure they’re ready and available for their clients. It’s so reassuring to know she has trained professionals with detail-oriented skills to ensure all of the moving parts of a real estate transaction are streamlined and organized.
We as a team are constantly learning together, growing, and helping each other make real estate a vibrant and lucrative field where we can provide the best service and solutions for our clients.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
2020-10-01T12:02:00-07:002022-03-24T12:03:50-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:69825 Ways the Coronavirus Pandemic Could Change What Buyers Want in Their Homes
There's no doubt that our lives have been radically changed because of the COVID-19 pandemic. It has affected the way we do work, school, travel, how we socialize, and more. Moreover, being confined in our homes for more than a month has made us see it in a new light. We’re getting to know what features don’t work for us, and what will be beneficial for our families if we are ordered to stay at home for longer. After all, there’s nothing more important than having a safe shelter for our families.
<img src="https://assets.site-static.com/userfiles/3899/image/change_buyers.jpg" width="1000" height="1287" alt="5 Ways the Coronavirus Pandemic Could Change What Buyers Want in Their Homes" title="5 Ways the Coronavirus Pandemic Could Change What Buyers Want in Their Homes" />
This is why experts predict that home buyers who enter the market once the risk of the virus subsides will have a whole new set of priorities in their home search. Fixer uppers won't be the first choice since contractors may not be available to work, unless you’re the type who can fully DIY. Likewise, an open floor plan may not be desirable as it once was, especially if you’re working at home with your partner while homeschooling the kids.
Here are five ways the current health crisis could change the future buyers’ must-have list:
A home office space is nor more desirable than ever
As more and more people are embracing remote work to help curb the spread of the virus, there'll be higher demand for homes with an office that’s both comfortable and functional to promote productivity. According to Realtor.com, listings featuring an office command a more than 3 percent price premium and sell 9 days faster than listings without the feature.
So whether it’s a full-fledged room or just a dedicated work area with ample electrical outlets, space for computer and other office necessities, built-in bookshelves, or a quiet atmosphere, highlight those characteristics when listing your home for sale.
For smaller homes that couldn’t accommodate a full office, there are ways to make your home shine in the eyes of potential buyers. Popular alternatives may include carving out an office space in the kitchen, an upstairs landing, or underneath the staircase.
Entryways and mudrooms are critical for keeping germs at bay
Before this health crisis, most people didn't put much thought into how they entered their homes. But because of the fear of bringing the virus into our private spaces, having a mudroom or a dedicated entryway has never been more important. It’s the perfect place where you could stash your dirty shoes, hang up your jackets, clothing, gloves and masks, and other belongings for disinfection. It can also be a decontamination station for potentially infected packages, reusable grocery bags, and even takeout bags to avoid carrying dirt and viruses into your living quarters.
If there’s no mudroom or entryway, an easy solution would be a dedicated place in the garage or on the front porch. You can install a pegboard wall where you can add hooks, shelves, and storage bins to hold sanitizers, disinfectant wipes, and other cleaning supplies. Adding a bench or a seating area with cubbies will also be more appealing since more people may now start removing their shoes as they enter the house.
There'll be a huge craving for an updated kitchen and bigger pantries
Kitchens are the heart of the home. And with the virus eliminating our ability to go out to eat at restaurants and even limiting our takeout options, we're becoming more acquainted with our kitchens as we prepare and cook several meals a day. This is why it’s expected that future homeowners will have more interest toward kitchens that are spacious enough for the family to cook and hang out together. They should also be equipped with high-quality and efficient appliances, such as refrigerators and ovens.
Likewise, a bigger pantry will be critical for storing more food and non-perishables so people can cut back on the number of grocery store trips they have to make.
Having an outdoor space will be part of the new norm
The COVID-19 pandemic has taught us that the safest place we could be is in our homes. And that includes our outdoor living spaces, where we can have some fresh air and bask in sunlight without leaving our properties.
This is why more people will want to buy a home with extra yard space. In fact, in the latest survey of Realtor.com® and Toluna Insights on what homeowners wish they could change about their home to make it more livable while sheltering in, 9% of respondents wanted to add a yard or patio. Having plenty of outdoor space is also ideal for those who want to start a small garden and try their hand at urban gardening. Even a small balcony in condos or townhomes can also be a huge advantage. No matter the size of the property, buyers would want an outdoor space where they can take a much-needed mental break, especially in times like these where we are being ordered to stay home or undergo quarantine.
An addition bathroom isn't just about convenience
Future homeowners will certainly keep the lessons of the COVID-19 pandemic in mind when searching for homes. If a family member has caught the virus and needs to self-isolate, sharing a bathroom with other family members could be dangerous. Having an additional bathroom or requiring one bathroom for every bedroom is now critical to keep germs in one place.
And just like after the 1918 Spanish Flu pandemic, even a half-bathroom, which was once considered a waste of space, is now a necessity. It's where you can direct visitors to wash their hands first before walking further into the home, or if they need to use the loo but you don’t want them using the family bathroom.
2020-06-05T21:10:00-07:002022-03-24T21:14:10-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7006Behind the Scenes of Every Door Real Estate
I’m sharing a look behind the scenes at what we do at Every Door Real Estate.
Today I’m talking about some of what happens behind the scenes of Every Door Real Estate, how we’re able to operate at a high level, and why we may be a little different than some of the other brokerages out there.
We pride ourselves in working as a team, and our mission statement is to simplify the real estate process for every client at every price point. We are a technology and data-driven company. We can break down and specialize so that the agent is able to focus directly on their buyers and sellers, whether it’s to find a home or sell their home and market it appropriately. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We have an in-house contract specialist and a valuation expert. They take some of the load off the agent so the agent can focus in a more impactful way on our clients. This provides even better service to our clients. All in all our agents really appreciate what the others do on the backend so they can focus on the negotiations and work with homebuyers and sellers. We have each other’s backs, ensuring the transactions are going to get to close. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Having doubled in size in the last year, we’re enthusiastic about what’s to come in 2020. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you ever have questions about real estate, please don’t hesitate to reach out to us by phone or email. We would love to help you.2020-01-14T19:28:00-07:002022-03-25T18:30:35-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:70116 Bizarre Real Estate Laws Across the U.S.
When it comes to laws in the United States, every state is different, especially when it comes to real estate and property management. But there are also real estate laws that are nothing short of bizarre or just downright weird and humorous. If you're looking to move to any of these cities or states, this might help you know some fun facts and trivia about your potential new neighborhood.
<img src="https://assets.site-static.com/userfiles/3899/image/laws.jpg" width="800" height="1293" alt="6 Bizarre Real Estate Laws Across the U.S." title="6 Bizarre Real Estate Laws Across the U.S." />
Here are some of them:
Law: No residential fence over 6 feet
Location: Rhode Island and California
Want some privacy in your yard? No matter how much you dislike your neighbors, you can't go all the way in building a fence on your property. There are laws that exist to dictate how high your fence can be. In Rhode Island, for instance, you can put up a fence but not more than 6 feet. Any fence higher than that is considered a “spite fence,” which is often constructed to annoy neighbors and as such, a private nuisance. The state will make you remove it or lower it immediately. This fence law is enforced so that residents can get unobstructed views and to prevent conflict between neighbors. On the other hand, California also has this kind of law that disallows spite fences exceeding 10 feet.
And while we’re discussing fences, putting up a traditional white picket fence is not allowed in Scranton, Pennsylvania.
Law: No more than two toilet in one property
Location: Waldron Island, Washington
For any buyer, having the right number of bathrooms is crucial when looking for a home. But in Waldron, a tiny island located in the Puget Sound which sits between Washington State and Canada, there is a law that prohibits having more than two toilets in any property or building. The island isn't yet fully developed but does have a small elementary school and a post office. The ban is intended to help limit development on the island, and also seems to aim to conserve the town’s water supply. People who live there like it to be kept private and quiet, and want to keep it that way.
Law: Any upholstered furniture is prohibited outdoors
Location: Boulder, Colorado
Couches, chairs, mattresses, chaise lounges—you name it. You cannot have any upholstered furniture, or any furniture not manufactured for outdoor use, in the yard or on the porch of your home in Boulder. The restriction was passed to curb the dangers of setting those things on fire. It is because local college students, who were known for their party atmosphere, would get drunk and had a habit of setting fires to the said couches. Since passing in Boulder, many other cities, such as Ames, Iowa, Lincoln, Nebraska, and Columbia, Missouri, decided to pass a similar law. Now, if you're looking to live the outdoor life of your dreams in any of these cities, you wouldn’t mind the hard chairs, would you?
Law: No burglas bars outside your windows
Location: Ridgeland, Mississippi
If you want to live in Ridgeland, do know that you are not allowed to put burglar bars outside of your windows. If you want to add an extra layer of security to your home and couldn't let go of the burglar bars, you can always put them on the inside of the windows. Although admittedly, yes, they aren’t pretty. Also, you wouldn’t be able to open the windows and get some fresh air from time to time. However, if you bought an old home and it has burglar bars that were installed before 1996, you can keep them.
Law: No DIY on a Sunday (especially in the morning)
Location: New Jersey, New Mexico, New York and Hawaii
Want to sleep in a little longer on a Sunday? But you couldn't because you got woken up early in the morning by a neighbor mowing their lawn, using a leaf blower, or fixing their roof. You won’t have this kind of problem in states like New Jersey, New Mexico, New York, and Hawaii. In these states, it is illegal for DIYs to be done on a Sunday, so as to avoid conflict between neighbors.
Let’s take a closer look. In New Jersey, it’s illegal to do any house painting outside or do any roofing jobs on a Sunday. Likewise, in Schenectady, New York, it’s unlawful to fill nail holes with putty. In Hawaii, using a leaf blower is prohibited, while the ban for using lawn mowers is in place for residents of Santa Fe, New Mexico.
Law: It is illegal to throw snowball at your house
Location: Aspen, Colorado
Want to move or just visit Aspen, Colorado to experience the cold winters and have some epic snowball fights? While millions of people flock to Aspen every year for some fun in the snow, be reminded that it is illegal to have snowball fights in the area. To put it clearly, you can't throw snowballs at any public or private property, people, or vehicles, according to the Aspen municipal code. It takes the fun out of a snowstorm, eh?
2019-12-16T19:41:00-07:002022-03-25T18:45:49-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:70133 Things to Expect From an Agent
I’m sharing my three things every real estate agent should tell you.
Today I want to share three things every real estate agent should be telling you:<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 1. “There’s more.” An agent should tell you about the numerous, non-traditional methods of searching for listings. With Redfin, Zillow, and other internet sites, it’s likely easy for you to find a property yourself, but a great agent will create possibilities and opportunities for you that may not be traditional. That may mean off-market homes, homes yet to come to the market, or houses still under construction. An excellent agent will point you in the right direction. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 2. “Wait.” Your agent should be going to bat for you on every offer you write, but sometimes you may need someone to help you step back from your emotional attachment to a house. Many times I’ve talked clients out of homes that I knew wouldn’t serve their needs based on what they’d already conveyed to me. Your agent should be enlightening you on market trends and the purchase process so you know precisely what to expect every step of the way. That way you can make an informed decision on a home that will be yours for years to come. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 3. “I don’t know.” An agent shouldn’t be afraid to be transparent with you at all times, no matter the circumstances. For many, it’s easier said than done, but this is the backbone and of every client relationship in my business. I value honesty, transparency, and sincerity in all my relationships. Sometimes that means saying “I don’t know, but I’ll find out.” Get yourself an agent who is unafraid to be 100% authentic always. This will inspire you to do the same. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you have any questions feel free to reach out to me by phone or email. I’m here to help and I’d love to hear your thoughts on what you may have wished your agent shared with you during your purchase process. 2019-12-02T21:35:00-07:002022-03-25T20:36:50-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7017The Advantage of Working with Every Door Real Estate
Today we’ll walk you through three key advantages that buyers have when they work with a broker from Every Door Real Estate.
One of the most important things that we at Every Door Real Estate can offer to a buyer in this market is a track record of success unlike any other. There is no other team in King County that has closed more buyer transactions than us.
The second advantage buyers get from working with us is the unique company structure that we have. We find the old way of doing real estate—where you had one broker and no support—to be inefficient and ineffective. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Instead, we’ve taken one very talented broker and backed them up with subject matter experts. We have a team that works on nothing except the pricing of homes so that you know what to offer. We have another team dedicated solely to focusing on contracts to make sure that you retain every advantage possible as a buyer. We also have a transaction management team that makes sure you get from contract to close in the most efficient way possible. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Third, our resourcefulness is a huge advantage to the buyers who work with us. This comes in three parts:<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 1. We can find off-market opportunities for our buyers so they can see homes that no one else is looking at. <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 2. We have access to and align ourselves with people who can solve a wide array of problems that occur during the real estate process.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 3. We have an unparalleled list of vendors. Whether you need them on your way to the closing table or years after you successfully purchase a home, we can refer you to experts you can trust—we’ve vetted and worked with them in the past, so we know they are reliable and skilled.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you have any questions about purchasing a home, don’t hesitate to reach out to us. We’d be happy to help you. 2019-11-07T21:50:00-07:002022-03-25T20:52:27-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7021What is a Tiny House? We Explain This Huge Real Estate Trend For A Minimalist Living
Tiny homes. We've seen them on the HGTV series and admired their cute and alluring interiors on Pinterest. But what exactly are these?
<img src="https://assets.site-static.com/userfiles/3899/image/tiny_house.jpg" width="1000" height="1017" alt="What is a Tiny House? We Explain This Huge Real Estate Trend For A Minimalist Living" title="What is a Tiny House? We Explain This Huge Real Estate Trend For A Minimalist Living" />
These diminutive dwellings maximize the functionality of the limited space while basking on the idea of green living because of the reduced carbon footprint. The tiny house trend also highlights “dramatic downsizing” without the stress of spending most of your life paying off a mortgage.
So, how “tiny” is a tiny house?
According to the 2017 Profile of Home Buyers and Sellers by the National Association of RealtorsⓇ, the size of a typical single-family home that was recently purchased was 1,870 square feet. Tiny houses, on the other hand, are only between 100 and 400 square feet. Just imagine: at least 144 of these 400-square-foot homes could fit on a football field!
How much does it cost?
Like their regular-size counterparts, the costs of tiny homes also vary depending on the materials used and the customizations added to the unit. You have three options on how to get it done: you can have a custom house, choose a pre-fab model, or if you'd like to put your DIY skills to the test, you may build it yourself.
Made-to-order models from manufacturers and developers, like Tumbleweed Tiny House Co. and Wheelhaus, could start from an average of $57,000 and up. Meanwhile, more complex luxury tiny houses could be worth more than $140,000. It’s still cheaper compared to a family home that has a median price of $235,000.
But if you’re the kind of person who’s handy and can actually build something on your own, you might as well build it by yourself. The average cost of building a tiny home is between $35,000-$40,000, but you can have it for less depending on the materials you will use. But, just remember that you need to be ready for unexpected costs of building the house. You also need to think about the time you’ll spend on doing the actual labor. Some homeowners claim they have built their tiny homes for less than $10,000, but that price tag is only an exception.
Where's the best place to build one?
Even if you have enough space in your backyard or you own an empty land, you can't just put or build a tiny house in there without consulting with the local ordinances. Apparently, even tiny houses need to comply with the city’s building and zoning restrictions.
Where you can build a tiny house also depends on how “tiny” it is. Under the federal building code, the minimum size for a home is 120 square feet. It should also meet building codes, such as having a minimum ceiling height, minimum square footage for a habitable room and bathroom, and two means of egress in case of a fire.
Aside from the federal rule, each state and/or cities also have their own local laws that builders need to comply with. In areas like Oregon and Wilmington, NC, there’s a minimum size for a tiny house. But in areas like Spur, TX, Sarasota County, FL, and Philadelphia, there are no size restrictions as long as the dwelling meets standard building codes mentioned above.
There are also laws for tiny homes on wheels and tiny homes that serve as accessory dwelling units, but they are more lenient compared to the rules for houses that are attached to a foundation.
The rise of tiny-home communities aka The Tiny House Movement
The tiny house movement has been gaining momentum. There are now over 50 tiny-home communities across the U.S., according to real estate site Trulia. These communities are either already established or under development, and each caters to a different crowd and promotes a different lifestyle.
According to the Tiny House Community, a website for owners, the tiny-house communities can be found in areas such as Bedford, IN; Del Valle; TX; Fairfield, IA; Lemon Grove Village in CA, and Palm Coast and Orlando, FL, among others.
But what sparked the rise of this movement, which is now a huge real estate trend? While experts said there are multiple driving factors, the main ones they cited are the economy and the environment. According to Francesc Zamora, author of the coffee table book "150 Best Mini Interior Ideas,” in an interview in Realtor.com, tiny homes are generally more affordable, which means smaller mortgages for home buyers. Many people who lost their homes due to unemployment or foreclosure during the 2007 financial crisis also turned to tiny homes as an affordable alternative to traditional housing.
Similarly, because smaller houses are cheaper and easier to maintain, they have less impact on the environment compared to large houses. So these houses are perfect for people who are willing to downsize and live a simpler life in an environmentally-friendly house.
Could the Tiny Home living be for you?
As with any real estate trend that's developing these days, living in a tiny house isn’t for everyone. The advantages of moving into a miniature home can be very appealing, including lower mortgage and utility costs, and less maintenance, but there are challenges as well.
Aside from the local building and zoning restrictions, you need to consider whether it really fits your lifestyle. If not, can you adjust so you can handle the limited space? If transitioning to minimalist living is what you’re aiming for, can you forgo most of your belongings (Hello, limited storage space and goodbye clutter!) to live simply? For many tiny homeowners, the shift was more enjoyable because it also pushed them to spend more time outdoors and abandon the stress brought on by many material things.
2019-09-27T21:03:00-07:002022-03-25T21:05:54-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7022Can You Hire A Real Estate Agent To Help You Find The Perfect Rental Property?
Many real estate agents are there exclusively to help us navigate the intricate process of buying or selling a home. Yet, don't be surprised because there are also some who are exceptional in assisting renters in finding a nice and desirable apartment, condo, or any rental property.
<img src="https://assets.site-static.com/userfiles/3899/image/rental.jpg" width="1000" height="1250" alt="Can You Hire A Real Estate Agent To Help You Find The Perfect Rental Property?" title="Can You Hire A Real Estate Agent To Help You Find The Perfect Rental Property?" />
Their level of service may depend on the location and the agent themselves. Real estate agents will guide you on your search and help narrow down your options. Since they know the ins and outs of properties, they can match you with the right neighborhood and apartment size and amenities within your price range or fit your budget. They can also help you schedule tours for you to see the rental firsthand. To boot, they can also negotiate a lower rent with the property manager or landlord or obtain better terms that will make your life easier as a tenant.
Here are five common situations where you may benefit from hiring a real estate agent when you're looking for your next apartment or rental property:
1. Finding an apartment in your area is like a battlefield. In larger cities with highly competitive markets, such as New York, San Francisco, or Los Angeles, using a real estate agent is necessary to help you get appointments for unit tours and showings and lock in that perfect rental property. These cities have huge populations of renters, so hiring a realtor can give you a huge advantage in your search. Likewise, agents also have access to rental listings available in the Multiple Listing Service or MLS.
2. You're relocating to a new city. Moving to a new city can be both challenging and overwhelming. More so when looking for your next apartment where the neighborhoods are unfamiliar. In this circumstance, you can take advantage of a local real estate agent’s knowledge about available homes, apartments, and rental properties. It will also be helpful if you can’t have a longer visit to your next city until your final relocation date.
3. Scheduling a tour or property showing is difficult. Sometimes, it can get difficult to contact a property manager via phone or email (especially in larger cities) or get to the leasing office of the property you are looking at if you are moving into a new city. A real estate agent can help make it possible to schedule a tour or after-hours showing, especially in these troublesome situations. Having an agent represent you can also give you more credibility since the property manager will know you are serious about your search.
4. You're looking to rent a single-family home. According to MarketWatch, single-family rental homes make up over one-third of all rental properties in the US. There are about 16 million rental households, and the high demand is showing no signs of slowing down. If a single-family home rental is what you’re looking for, you may realize that it can be harder to find listings and schedule showings unlike if you are looking into apartment buildings, which often have a property manager on-site. Real estate agents have access to the local multiple listing service, thus, they will know which houses are available for rent and can help you schedule tours faster.
5. You're a first-time renter who wants to better understand the complicated matters regarding your lease. While most tenants can find a place on their own without the help of any real estate professional, it isn’t surprising to feel overwhelmed with all the complicated matters a rental lease entails. Before signing the dotted line, enlisting the help of a real estate agent can help you understand all the vital information included in your lease. They can also be very helpful if you’re the type who doesn’t want to waste your precious time sitting in front of the computer, trying to browse for rental properties and narrowing down your options, but still having difficulties getting tour schedules to see properties.
Helping me find an apartment surely is a great thing, but what about the costs?
One thing to remember is that realtor fees and how much you have to pay vary by city or location. Common rates are usually equivalent to one month's rent or 15% of the annual rent on the apartment. Likewise, you may or may not have to shoulder the fees. Sometimes, it will be the landlord or property owner who will pay the agent after finding a desirable tenant. In cities like New York City where the competition for apartments is very high, brokers typically require a fee of one month’s rent. In Seattle, on the other hand, agents collect a flat fee of a few hundred dollars from the renter.
It’s important to discuss fees upfront before you sign any agreement and work with a real estate agent. Make sure you understand how the professional can help you find a rental property, and how much he or she will get paid. Understand what fees you will be responsible for, and what will be shouldered by the property management or your potential landlord.
How can I find a real estate agent who also services renters?
There are many ways to find a real estate agent who helps not only home buyers or sellers but also services renters. You can check online for local rental listings and websites of real estate firms. You may also know about reliable real estate agents from personal referrals. Ask your families or friends for the names of experienced agents whom they've already worked with when they bought or sold a home. Chances are even if they don’t work with rentals, they probably have a colleague or a team member who also deals with rentals with whom they can connect you.
Bottom Line
Hiring a local real estate agent to help you find that perfect rental property you're aiming for means you can take advantage of the professional’s knowledge and expertise of the general real estate market. Depending on your location, an agent can be a godsend to help leverage your property search. They can also be helpful when you're negotiating terms with your potential landlord.
So go ahead. Understand your situation and explore your options so you can make smarter decisions as a renter. Whether you plan to get help from a realtor or not, the lessons and experiences you acquire from being a renter will help you when you start your house-hunting later on. You never know, the real estate agent that helped you score a nice apartment may also be the one to help you find your dream home when the time comes.
2019-09-17T21:06:00-07:002022-03-25T21:09:25-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:702810 Moving Mistakes You'd Want To Avoid
Moving is complicated and stressful. There's more to it than buying several boxes, packing your stuff and relocating to your new home because, in reality, there are a lot of things that could go wrong. Here are some of the most common moving mistakes, and tips on how to avoid them through proper planning and allocating enough time towards the process.
<img src="https://assets.site-static.com/userfiles/3899/image/moving_mistakes.jpg" width="1000" height="1287" alt="10 Moving Mistakes You'd Want To Avoid" title="10 Moving Mistakes You'd Want To Avoid" />
1. Miscalculating how many boxes you'll need.
Before packing your things, try to come up with a good estimate of the number of boxes you need. If you fall short, take note of what you already have — such as suitcases and dresser drawers — and use them as makeshift moving containers to cut down on the costs of boxes.
2. Not getting enough padding for your items.
Having enough padding materials is necessary if you don't want to end up with broken items when you arrive in your new home. You will need a good stock of bubble wrap or thick packing paper to cushion fragile items and protect your furniture edges from scratches. Likewise, you can also use personal items such as linens, blankets, bedding, and even clothes and dish towels to wrap up any fragile and sharp objects and fill in the gaps in their moving boxes.
3. Forgetting to label your boxes.
“Labeling boxes is Moving 101,” according to Moving.com. When you pack your things, don't forget to have markers and tape with you to organize your stuff. Knowing what things are included in each box will also lessen the time it will take you to unpack.
4. Packing your things at the last minute.
Even if you're the least organized person and you plan to just throw things into moving boxes, remember that packing takes time. You thought it’ll only take you an hour to pack the things in your bedroom when in reality, it could take you a whole day to sort through your stuff. The kitchen might even take you 2-3 days, especially if you have any delicate items that need to be carefully wrapped and stored. Remember to give yourself enough time and be realistic about how much it will take you to tackle each area in your home. You can avoid the stress of trying to pack on a tight timeline when you plan these things ahead.
5. Not preparing a moving essentials bag.
A moving essentials bag is a duffel bag, backpack, or a suitcase where you can easily access the things you'll need on the day of your move and the few days after it. It’ll be convenient for you since you won’t have to rummage through all your moving boxes just to find a basic item you’re looking for. Fill it with your personal items and necessities such as your wallet, keys, medications, basic toiletries, important documents, electronics and chargers, a few clothes, etc. If you have kids, remember to have them pack their own essentials bag, as well.
6. Not getting rid of things you no longer need.
Sort through your items and simply throw out the things you no longer need. Remember that the fewer things you have to move, the better and less stressful it can be for you. You can save time, money, and effort, and won't have to waste resources like boxes, padding, and fuel. So don’t waste time packing stuff you don’t really need, only to unpack them again in your new home without knowing where those things will fit. You can donate your stuff or give them to family members once they no longer serve a purpose in your life.
7. You choose to DIY your move instead of getting professional help.
Think twice before deciding to DIY your move instead of hiring the expertise of a professional moving company to save money. Remember that a DIY move may not be as cheap if you will count these major pitfalls, such as wear and tear on your body, damage to household goods, and unexpected fuel costs. Even if you have friends who are willing to help, it's still labor-intensive and risky.
Hiring moving experts will help you in assessing the size of your move. They are also a great help for moving belongings and furniture, lifting heavy items, and handling the move in a safe and organized manner. You will do yourself a favor if you hire the pros, especially if you have a truck’s worth of heavy belongings.
8. Not anticipating the cost of your move.
Most movers offer estimates, not quotes, so you can have a general idea of what your move will cost you. This will be helpful especially if you're trying to keep costs in a certain range. Figure out how much you need to budget so you won’t be surprised in case there’s a fuel surcharge or you will need significant add-on services from the movers. Experts recommend that you get at least three estimates from different moving companies. Also, don’t forget to ask questions about possible hidden fees, especially if you’re considering the cheapest bid.
9. You didn't check your insurance.
With moving insurance, there are many policies and coverage levels to choose from. Before choosing a moving company, ask about what types of coverage options are available to you and whether you need to get more than what's being offered. This is also the time to review your homeowner's insurance policy if it offers additional moving insurance to know which works best for your move.
10. You forget that plants and animals have special needs when moving.
With all the other things you're worried about, it’s unavoidable to forget the special needs of our pets and even plants when moving. You can’t just throw them in the box or load them in your car. Make sure that before moving day, your pet has current shots, tags, papers, and certificates, especially if you are moving from one state to another.
Keep in mind that lots of movers won’t handle plants especially if you’re crossing state lines. If you’re planning to bring them by car, remember to first check with the USDA for specific rules and regulations in the state where you’re relocating. If you find out you can’t move your plants, you may opt to donate them to friends, the community garden, or the local retirement home.
2019-07-24T21:29:00-07:002022-03-25T21:31:38-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:70355 Ways You Can Ace Moving To A New Home When You Have Kids
According to the <a href="https://www.nar.realtor/newsroom/real-estate-story-ideas/moving-with-kids" data-uw-styling-context="true" data-uw-rm-brl="false">National Association of Realtors®</a> (NAR), home buyers and sellers with children face a unique set of difficulties and stressors during the moving process. If you are a parent anticipating a move, it's likely you have a ton of things on your mind. Maybe you need to sell your old house, contact the movers, pack your belongings, and prepare all the things needed in your new home. Then add the kids to the situation and you’re probably facing a whole different level of chaos and anxiety.
If you’re already feeling nervous and worried about your upcoming move just imagine how difficult it can be for your kids. Whether you have a toddler or a teen, the idea of getting ready to start somewhere new can be very scary. However, there are things you can do to get the youngest family members prepared and even excited about this new chapter and to help the family’s moving process go smoothly.
<img src="https://assets.site-static.com/userfiles/3899/image/kids_moving.jpg" width="1000" height="1657" alt="5 Ways You Can Ace Moving To A New Home When You Have Kids" title="5 Ways You Can Ace Moving To A New Home When You Have Kids" />
1. Keep them informed.
The best way you can prepare your kids for your expected move is to talk to them about it. Keep them informed and tell them what they can expect. Even if they won't be thrilled by the news, especially the teens, help them deal with their feelings. Explain to them why the family needs to do it — whether it’s for your new job or because they will need bigger rooms — and address any concerns they share with you. The sooner you can explain it to them, the more time they will have to cope with the news in their own way. Lastly, reassure them that not everything will be changing once you move into your new home.
2. Get them involved.
While moving and packing when you have kids can be more stressful, there are ways to cope with it. If your children are old enough to help, get them involved by allowing them to pack their own things and personalize their boxes. This will help keep them busy and will also help you identify their belongings when it's time for you to unpack. Help them decide on what things they want to keep, especially their toys and clothes, and what can be sold or donated to a charity. But be ready because they might get upset when they have to let go of some things.
When you arrive at the new house, tour them around and let them contribute to little things like choosing the wall colors or the furniture arrangement of their new room. Make sure they’ll get to unload their belongings first so they will see familiar objects as soon as possible, particularly those things they are attached to.
3. Let them have proper goodbyes.
Material things aside, the biggest problem your kids might have emotionally is whether they will make friends and become accepted in your new area. “Will I be able to find a new best friend?”, “Is my new teacher as kind as Miss Lily?”, “Can I continue playing baseball or football?” Even if you aren't sure about these circumstances continue to talk with them to ease their fears.
Throw a farewell party so they can say proper goodbyes to their close friends. You can also encourage them to stay connected through writing and mailing letters (let them know how exciting it is to have a penpal!). In today’s age there are also plenty of ways to connect through social media. These little things can help them keep their old friends, while at the same time you can encourage them that they can build new and better relationships in your new place.
4. Turn the move into an adventure.
Ah, moving, it's one of a kind exhilarating experience. Or is it? Don’t let all the packing and unpacking become the only thing that your child will remember about this journey. They may not love all the hustle and bustle that comes with moving, but they will surely love any adventure you add to it. Especially when you’re moving far away, have a road trip so they can discover new places.
Show them around interesting landmarks, museums, and other kid-friendly attractions along the route. The distraction will relieve any anxiety the children have and it could help them think that moving is really fun. If you’re traveling from one state to another, don’t forget to collect souvenirs from the places you visit. Arranging these alternative activities can also help you relax, be happy, and bond with the kids.
5. Help them focus on new beginnings, but stick to family routines.
Always remind your children that not everything is changing. Sure, you've got a new house in a new neighborhood, but help them understand that it is only really the location. It’s important to keep their routines as much as possible throughout the moving process. Stick to your schedule like afternoon naps, family rituals, bonding activities, study sessions, etc. Keeping these little things consistent will reassure the children that the family is keeping life as normal as possible.
Finally, help them focus on the bigger and more exciting things they can look forward to. Is there a bigger park near your place? Are they now allowed to have pets now that your family has a bigger space? Also make sure to sign them up for sports, participate in hobbies, or any other activities that can help them feel more comfortable and will help them make new friends.
Bottom Line
We understand that with kids everything is easier said than done, but the best any parent can do is to try not to add to the stress and anxiety that children are having about relocating. The most important way to relieve that stress, however far or near your family is moving, is to stay positive. Keep in mind that kids are like little sponges and they will always take after their parents. If you stay positive, your kids will stay positive. With a little patience—well, probably a lot of patience— flexibility, and creativity, you'll create new memories in your new place in no time.
2019-06-06T21:53:00-07:002022-03-25T21:55:02-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7046How To Find The Best Agent For A Short Sale
A short sale transaction is different from the usual home buying process. It involves more waiting time, and more leg work for your agent. Due to the rise of short sale properties on the market, training companies see it as an opportunity to train agents specifically in this area, giving them certification upon completion. Although it's a plus to have your agent be trained in short sales, it’s better that they have actual experience doing the work. Here are some pointers on short sales, and the qualities you should seek when hiring an agent for this transaction.
<img src="https://assets.site-static.com/userfiles/3899/image/buy_short_sale.jpg" width="800" height="1202" alt="How To Find The Best Agent For A Short Sale" title="How To Find The Best Agent For A Short Sale" />
What is a short sale?
If you've come across properties that are priced below the usual market value, those properties are most likely a short sale. A short sale is when a property is sold for less than its unsettled mortgage. The value of the properties put up for a short sale has usually dropped by 20% or more.
How does a short sale work?
If a homeowner is in financial strife and there is not enough equity in the home to pay off the mortgage after paying for the costs of sale, they may consider a short sale. A short sale allows homeowners to avoid incurring a bad record of foreclosure on their credit rating. To do so, they must present documents that support their claim of inability to pay off their remaining mortgage balance to their lender. These documents are subject to the approval of the lender before the house can officially be put up for sale.
A prospective buyer will have to make an offer to the seller, and also to the lender, and wait for their short sale approval letter.
As a home buyer, what are the advantages and disadvantages of buying a short sale?
Advantages:
It's cheaper than the usual house prices in the market - The last thing that the bank/lender and the homeowner want is for the house to remain for too long on the market, so they price it low to attract buyers.
Less competition with fellow buyers – Most buyers are not prepared to wait, and since the process of buying a short sale can take time, this trims down the number of prospective buyers that can make an offer on the property.
Disadvantages:
The process is long – Processing the escrow is a long haul, and the approval of your offer is passed on from the seller to the lender.
You may need to pay costs that are not included in the selling price – Included in these costs are the closing costs, which the lender will not agree to split. There may be additional costs as well.
You buy the house as is – Contrary to the norm of buying a property and asking for a decrease in price based on necessary repairs, price reductions for a short sale will usually be declined.. You can counteract this by including contingencies on home damage and repair on your purchase contract.
You may need to pay part of the agent's commission – It’s the lender who calls the shots on commissions for the agents in a short sale transaction. They typically pay more to the seller’s agent. Buyer’s agents know this is the case, and may request a higher commission be included in the buyer’s brokerage agreement.
What agent qualities should I look for when deciding to buy a short sale home?
They've handled short sales before - And to be exact, an agent who’s not only handled but closed a short sale. If they’ve closed a handful, that would be even more ideal because that means they know the necessary (and tedious!) legwork short sale transactions require. They could also acquaint you with lawyers to aid you in the negotiation process.
Ability to explain the whole process of a short sale to you in a comprehensible manner – Have them explain to you all the legwork and necessary measures involved in a short sale transaction. That way, you are able to prepare what needs to be done, and ascertain whether they have enough knowledge to handle the transaction.
They have a trained eye for spotting red flags – An agent with a good amount of experience in short sales can easily detect if there are possible legal or tax consequences. Once they spot something fishy in the transaction, they can direct you to consult with your hired attorney on how to address the issue.
They’re knowledgeable on lenders and banks –The lengthy part of the short sale process is really at the bank, and the agent will need to call for regular updates. An agent who has closed a lot of short sales will know how the lenders/banks fare in the process. This can shorten the process significantly, as there would be no guessing game on your side of the equation. Your agent would already know how to strategize in order to expedite the process and make it as smooth as possible.
2019-03-24T10:41:00-07:002022-03-26T10:43:31-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7055How Do the Holidays Impact Our Market?
Why is now the perfect time to enter the market if you’re looking to buy a home? Allow us to explain.
We all know that the holiday season means great food and time with family, but what does it mean for our real estate market?
A lot of people, agents included, tend to go into “hibernation” during this less active time in our market. However, we can’t advise against this strongly enough, especially when it comes to buyers. If you’re looking to purchase a new home, now is the time to get out there and start shopping like everyone else.
Rates are set to increase in the year ahead, and a ton of competing buyers will come out of the woodwork come spring. In other words, you don’t want to miss the window of opportunity our winter market presents.
If you have any other questions, would like more information, or are curious about how we can help you meet your real estate goals, feel free to give us a call or send us an email. We look forward to hearing from you soon. Happy Holidays!2018-12-17T12:10:00-07:002022-03-26T11:12:27-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7057Should You Sell or Buy A Home in Winter? Here's Why the Colder Climate Might Work in Your Favor
During the spring and summer months, bidding wars are rampant, there's fierce competition, and a large pool of buyers are looking to move before the school year begins.
<img src="https://assets.site-static.com/userfiles/3899/image/winter.jpg" width="1000" height="1261" alt="Should You Sell or Buy A Home in Winter? Here's Why the Colder Climate Might Work in Your Favor" title="Should You Sell or Buy A Home in Winter? Here's Why the Colder Climate Might Work in Your Favor" />
But in winter, especially in colder climates when everything is covered in snow, sellers and buyers alike can also take advantage of the season to score a good deal on real estate. Experts say that the idea that homes are <a href="https://www.realtor.com/advice/sell/reasons-to-sell-a-home-in-winter/" data-uw-styling-context="true" data-uw-rm-brl="false">very tough to sell</a> or buy in the winter might be a myth. When temperatures drop, the market could be full of eager sellers and serious buyers who are both looking to score a cold, sweet deal.
Advantages for Sellers
You have less competition
Since there are fewer homes on the market, you have less competition from other sellers. The low inventory creates increased competition among buyers, which generally result in higher sale prices. This is why winter can also be an ideal time to sell your home.
You will show your home to a pool of serious buyers
When you put your home in the market during the winter months, there's a greater chance you’ll attract a pool of real buyers looking to purchase and not those window shoppers who are just curious about the house. These serious buyers want to take advantage of the less competitive market and don’t want to wait until spring to get their hands on their ideal home.
You can highlight that your home is winter-ready
Aside from cozy fireplaces, hot tubs, and steaming mugs of hot chocolate with freshly baked cookies that await buyers when they tour your home, you can feature your house’s winter-readiness when you sell in the colder months. Show off the design and features that will make their life easier during winter, like an easy-to-shovel driveway, new roof and furnace, south-facing windows, and well-insulated pipes, among other things. These features, however simple, will show that your home can handle the harsh elements.
Many buyers are looking to relocate
People often look to relocate at the start of the year, especially those with new job opportunities, or young parents who want to start the new year somewhere in a more spacious family home. These buyers are serious about the sale and want to secure the property before Christmas or New Year. They are more likely to sign on the dotted line once they find the home they are looking for, which could potentially mean a swift sale with fewer contingencies.
Advantages for Buyers
Take advantage of this season to score a bargain
Because more buyers are likely to house hunt during warmer weather, home prices are generally lower in the winter. You can then take advantage of this season and have more buying power since sellers are motivated to sell their home and move before the year ends.
However, don't assume that you can automatically score a sweet deal. What you can do is use the seller’s motivation to negotiate a bargain. This is particularly in markets where there’s generally less interest and the seller already feels some pressure. They might be more willing to accept an already good offer rather than waste time waiting for a better one. Work closely with your real estate agent to give a good offer and secure a quick settlement.
You can use your end-of-year financial bonus to enter the housing market
The end of the year also means many employees or workers will get their performance reviews, which could mean receiving financial bonuses and large payouts. If you’re a first-time home buyer, you can use this opportunity to enter the housing market and invest that money in purchasing your ideal home, especially if your credit is already in good standing. Buyers can also use the incentives to upgrade their living situations.
Before starting your house-hunting this season, just remember to avoid too much holiday debt while shopping for gifts for your loved ones. Any new debt can change your debt-to-income ratio and affect your mortgage pre-approval. Keep in mind that buying a home can be your biggest investment, so take note of your priorities especially this holiday season.
2018-12-06T12:16:00-07:002022-03-26T11:17:59-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7058How Mortgage Rate Changes Will Impact You
Changes are coming, and this is how you'll be affected.
Mortgage rates have been a big topic for discussion lately; where we stand now, money essentially costs more to borrow than it did a year ago. This has impacts for both buyers and sellers, and today we’ll be talking about how you may be affected:
1. Interest rates are on their way up. This causes buyers to have less buying power—though their mortgage payment is higher, they’re receiving a lower amount of money. This impacts sellers because their buyer pool becomes smaller. When a price point becomes higher, there are fewer people who can afford it.
2. Home values are going down. We’re only at around 1.5% more than we were in spring 2017. We were up about 10% in March and April, but this rise has basically disappeared since then. This all means it’s a good time to buy.
3. Our inventory will go away soon. There are still plenty of options for buyers currently, but inventory will begin decreasing. We’ve seen a massive spike in pending home sales with the amount almost doubling over the past few weeks.
Together, these changes make a situation where buyers have less to choose from, prices continue accelerating, and mortgages become more expensive. To be clear, now is the time to buy.
If you’re looking to buy a home while prices are stable, have any questions, or would like some more information, feel free to reach out to us. We look forward to hearing from you.2018-12-03T12:18:00-07:002022-03-26T11:20:05-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7061A Few Things You Should Know About Our Real Estate Market
A lot has changed in our real estate market since the last time we talked to you. Here’s what you need to know.
It’s time once again for a market update. We’ve got the latest news and numbers for Seattle real estate and we’re excited to share them with you today.
It’s been a few months since we’ve given you an update, and a lot has changed in that time. You may have heard about this already, but we saw inventory rise this summer at rates that we’ve never seen before. For the past four or five years, we haven’t seen an increase in month-over-month inventory like this.
This is great news for buyers. It gives you a lot more options to choose from. It does add some distractions, but it’s a great thing overall. At the same time, we’ve seen rates go up as well. The average mortgage rate is about 1% higher than it was at this time last year. For the average buyer, their buying power has dropped about 10%. However, Seattle prices have dropped too so those things balance out pretty well.
Buyers should feel good about this market. There is a great opportunity for you to get into a home, especially if you have been frustrated at the past market. We’re also having great success at getting our buyers homes without having to cough up very much money by having sellers pay closing costs, loan origination, and other out-of-pocket fees. There will be at least one more rate increase this year and at least two more next year, so the cost of buying a home is only going to go up from here.
That’s all we’ve got this time. If you have any questions about the market or you’re looking to buy or sell a home in the Seattle area, don’t hesitate to give us a call or send us an email today. We look forward to hearing from you.2018-11-19T12:25:00-07:002022-03-26T11:27:44-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:70687 Reasons Why Buyers and Sellers Shouldn't Ditch The Home Inspection
<img src="https://assets.site-static.com/userfiles/3899/image/7reasons.jpg" width="1000" height="1594" alt="7 Reasons Why Buyers and Sellers Shouldn't Ditch The Home Inspection" title="7 Reasons Why Buyers and Sellers Shouldn't Ditch The Home Inspection" />
The biggest mistake that both home buyers and sellers could make is skipping or waiving the home inspection due to various reasons, like during a bidding war. And while a home inspection contingency clause is almost always included in a purchase contract, some buyers agree to waive the vital inspections to win their dream home in a competitive market.
Often, sellers skip it to save time and money, not knowing it may leave them little to no time to address any important concerns before they put their home on the market. However, it's a common ingredient for regret and unexpected costly repairs that could’ve been avoided.
Here are seven valuable reasons why both buyers and sellers shouldn’t skip the home inspection:
#1 You can't judge a home by its exteriors
Remember that there's always more to a home than what meets the eye. It may look beautiful and something that exists in a storybook, but the truth is it’s almost impossible to know all about its details and issues. There are ugly homes with problems that are only “skin-deep,” while there are great-looking homes that have bigger problems like termite infestation and mold. These issues can be missed even after multiple showings. Even new construction homes can have issues unknown to buyers that only a home inspection can uncover.
Even after years of living in your beloved home, a home inspection can reveal unexpected flaws that you didn't even know existed. When did that hole in the kitchen ceiling become so big? Was my dog responsible for all those scratches on the walls? Hidden problems in the foundation, roof, or wiring you didn’t even notice as the homeowner could lead to larger issues.
#2 Uncovers safety issues
A home inspection ensures that there won't be any unwanted surprises in the form of serious safety issues. Through a thorough investigation, both parties can make safety their number one priority. If serious safety issues were found, the seller can promise to make the necessary repairs to guarantee that the home is safe and habitable.
#3 It can be a great tool for planning
The results of a home inspection can be a great tool for transparency and future planning, especially in estimating future expenses. Buyers can use the detailed findings to plan for future upgrades, calculate for repairs, and carefully prepare their budget once they become homeowners. Meanwhile, sellers can use it to plan for renovations and deal with them as soon as possible. That way, they can continue with the home sale with fewer contingencies and minimal setbacks.
#4 Can help with your negotiating power
Having a home inspection performed can give you the power to make negotiations with the seller to offer a lower price for the home. Depending on the information gathered, you can include words in your purchase contract requesting the seller to make the repairs. Or if they are unwilling to do so, you can ask them to estimate the costs and take that amount off the final purchase price.
You can use the home inspection report as a leverage when negotiating for a better selling price. By knowing the true condition of your property, you can deal with any problems on your own terms and fix them beforehand. You won't have to deal with any of the buyer’s request to lower the price or arrange for repairs, which could cost you a huge amount of money or even the sale itself.
#5 Saves you from future costly repairs
While a home inspection can cost a good sum of money, it's a significant investment that will save you from any costly repairs down the road. Things like safety hazards, pest problems, or water leakage in the basement can end up costing you a lot more money once you already own the home. And all those issues and defects could have been revealed by a home inspector if you only allowed an inspection to push through.
#6 Can either help expedite or delay a real estate transaction
The home inspection phase can be a huge pitfall for both parties in a real estate transaction. Sometimes a transaction doesn't move forward because the buyer and seller couldn’t agree on the repairs requested from the inspection. A buyer may not feel entirely comfortable with the findings while the seller may refuse to accept more requests. Having a home inspection ahead of time can help expedite the process for both the buyer and seller.
Worst case scenario: a buyer can get cold feet and will not proceed anymore with the transaction if they’re not satisfied with the negotiations after the inspection.
#7 Provides peace of mind and a sense of confidence
The inspection eliminates all the possible “doubts” and “what ifs” of both parties. Buyers will feel certain and satisfied with their purchase, eliminating buyer's remorse and giving them a peace of mind. Sellers can also feel confident once the real estate transaction was completed because they can avoid the threat of any legal action due to improper disclosure. A home inspection is a great way to make both the buyer and seller feel positive that they have reached a fair deal in the transaction.
2018-09-30T15:14:00-07:002022-03-26T15:17:57-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:70695 Sticky Situations You Can Avoid If You Have A Real Estate Title Insurance
When you buy a home, you don't only buy the land, the house, and any other physical structures that come with it. The most important thing is that you are also buying the legal rights of ownership to the property, which is referred to as “title.”
This title is indicated in the “deed” — an official record of your rights and ownership of the property that states that it has been legally transferred to you by the previous owner. When you sell your home in the future, you will also transfer this rights to your buyer.
Before officially taking this title and completing the closing of the real estate transaction, a title search will be required to find any defects in the title. Chances are, there could be one or more issues that could emerge in the title. These title defects could cause you to lose your property, or make it impossible to you to sell when the time comes.
What is a real estate title insurance
This type of insurance offers protection against any defects with the title or legal ownership status of a property. It covers financial loss from these problems or from any existing property liens. Title insurance may come in a bit hefty amount, but it is a one-time expense and does not carry with it additional monthly premiums. It will also cover the homeowner until the property is sold.
Is it worth it?
Because every property has a history, any defects in the title could hinder you from enjoying your ownership rights. But having a title insurance serves as your protection against possible title problems that may surface and could cause property loss or damage. Remember, any competing claim of ownership could seriously jeopardize your financial stake on your biggest investment. Because unfortunately, these problems may be discovered even after an initial title search was done on your property.
Title insurance is vital especially in purchasing rural property, since aside from any title claim, it will also advise you if the property has previously been used for non-residential purposes.
Lender's title insurance vs owner's insurance policy
There are generally two types of title insurance coverage: a lender's title insurance and the owner’s policy. Most lenders require a buyer to purchase a lender’s policy as part of investor requirements. But this policy will not protect you but covers only the lender, hence its name.
It is the owner’s insurance policy that will protect your property — your biggest financial investment — against anyone who has a claim against your home.
So you think you really own your property? Here are the most common title problems that could arise and dispute your rights to ownership:
<img src="https://assets.site-static.com/userfiles/3899/image/title.jpg" width="1000" height="1000" alt="5 Sticky Situations You Can Avoid If You Have A Real Estate Title Insurance" title="5 Sticky Situations You Can Avoid If You Have A Real Estate Title Insurance" />
1. There's more than one home seller (or homeowner)
At the time of your purchase, you may not know that there’s another seller or homeowner, maybe a relative or an ex-spouse. This third party may surface with a claim that they actually own all or a part of your property. They would insist that the seller had no right to sell the home to you in the first place.
In this situation, a judge could confirm and favor this third party’s claim to the house, which could leave you with a huge financial loss (and no home to live in). Fortunately, your own insurance policy could cover this loss. Your title insurance will pay for expenses such as attorney’s fees and court costs, while the lender’s insurance policy will pay for court costs incurred by the bank. The sale, on the other hand, will be deemed null and void.
2. Property liens for delinquent taxes, unpaid contractors, and other debts
There are circumstances where, unfortunately, the former homeowners were not diligent bill payers. This is worrisome because even if the debt is not your own, banks or other financing companies can place liens on your property to cover for those unpaid debts.
These property liens can slow down the closing because your title won’t be considered clear until you pay the existing debt. Sometimes, even though a tax search hadn’t tracked down any unpaid taxes on the property, it’s still possible that you would get notified for any of these delinquent taxes after closing. It’s also a common issue if the property was foreclosed on or the home was bought in an online foreclosure auction website.
Fortunately, if you have an owner’s title insurance policy, it will cover for it and will give you documentation that the indicated debts are paid.
3. Survey or boundary disputes
Conflicts concerning the boundaries of your property may arise if, despite several surveys before closing, there are other existing surveys that show different property lines. This may lead to dispute especially when a neighbor or someone will claim ownership to a part of your property.
Likewise, if your neighbor happened to put up a fence or a driveway on a portion of your new property right before closing, you can count on your title insurance to settle the dispute. The policy will pay for the cost of any legal efforts to settle the issue out of court and have any of your neighbor’s item removed from it.
4. Clerical or filling errors in public records
When it comes to homeownership rights, a simple typo can lead to devastating title claim problems. These clerical errors in public records and/or courthouse documents could affect the deed or survey of your property. And while it isn’t impossible to resolve them, it can take an emotional and financial strain to any homeowner. Your title insurance serves as a cushion for this kind of problem.
5. Undisclosed or missing heirs to the property
Imagine this scenario: the former property owner died. So, the ownership of the home may fall to his heirs or to anyone indicated in his/her will. However, those heirs were missing or unknown at the time of his death, so the state sold the property, together with all of the assets.
When you purchase this kind of home, despite assuming the rights as the new owner, family members of the previous owner could come forward and claim ownership of the property. This claim could seriously jeopardize your rights to the home, even if it happens years after you bought the property.
Bottom Line
With these situations, the last thing any homebuyer or homeowner would want are hurdles that will cripple their ability to purchase the home and claim full ownership to it.
Even if there’s a slim chance that past owners or unpaid property tax bills might emerge, the risk is still huge considering what is at stake — your beloved home. If you are still contemplating on whether you will allot money for it, just think how you will be affected if you’re suddenly faced with any of those title-related nightmares. Remember that you are entitled to choose the title company where you will get yours, so gather recommendations from your trusted real estate agent, lender, or family.
2018-09-20T15:18:00-07:002022-03-26T15:20:46-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7073Understanding Real Estate Commissions
<img src="https://assets.site-static.com/userfiles/3899/image/commission.jpg" width="800" height="1034" alt="Understanding Real Estate Commissions" title="Understanding Real Estate Commissions" />
Whether you're planning to buy a home or sell your current one with the help of a real estate agent, it is important for you to understand what commissions are and who pays for them.
What is a Real Estate Commission?
A real estate commission is a fee typically paid by the seller for the services of both the listing agent (also known as the seller's agent) and the agent that represented him (known as the buyer’s agent). This commission is usually 6% of the paying price and is given once the deal has been closed and the payment, whether they be in full or partial, has been given by the buyer. It’s not directly given to the agents but instead passes through the brokers they work for.
Listed below are certain factors that influence how much a real estate commission is:
Experience - agents who have only been in the real estate industry for a short while will get lower rates than those who have been in it for long. Meanwhile, top agents may get 100% of the commission fee and just give their broker a desk fee.
Locality - the real estate market may either be moving slowly or fast-paced in different states or localities, and the agent's commission sways with the state of the market. Another thing is that it’s common for the listing agent to be paid more than the buyer’s agents in some states. Buyers should acquaint themselves with local co-brokerage fees so that they would know if the agent working for them is paid less than the local custom.
Agreement between parties - the percentage of the split in commission is based on the discretion of the real estate agent parties. There are also instances when the seller or the agent will negotiate on the percentage of the commission.
Tips for Buyers and Sellers
1. Familiarize yourself with the different people you will have to transact with - Whether you're a buyer or a seller, real estate agents are the ones who you would most likely interact with the most during the process because they act as your representative to the other part. it’s good to know each person and their specific role during the sale of the property. Here is a brief description of each type:
Broker - Brokers rank higher than agents in that they take an exam for licensure with stricter requirements such as completion of eight-level and at least two years of real estate experience. They can choose to either operate on their own or hire agents and they are responsible for the actions of the agents they hire.
Agent - Agents are also licensed by the state, but unlike brokers, they cannot work independently and must be employed by a broker. There are agents which work exclusively for each party in the transaction -- listing agent for the seller, and buyer’s agent for the buyer. It’s important to note that it is not legal in the 50 states for a dual agent, or an agent who represents both the buyer and the seller, to operate.
2. Know the local rates - As what’s stated beforehand, there are several factors that affect commission. But just to arm yourself with more knowledge, it’s best to acquaint yourself with the standard rate of the area where you wish to buy or sell your home.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> 3. Know what a buyer’s agency agreement is - This is an agreement between a buyer and a licensed brokerage firm or a real estate agent that stipulates both of the parties’ commitment to the sale and to assure the agent or the firm that they will be duly paid after closing. Standard forms of agreement vary per market and brokerage firms.
2018-08-30T15:28:00-07:002022-03-26T15:31:00-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7076Understanding The Roles Of Different Real Estate Experts
There are all sorts of questions that arise when you need to start seeking the help of a real estate professional, and one of the most common is: Who does what? The real estate industry is a complex system comprised of different key players, and the role of each person can sometimes be a little challenging to tell apart--which is why you should never feel embarrassed if you get a little confused!<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />Though many people use the terms "agent," "Realtor," and "associate" interchangeably, these are actually different titles for real estate professionals. We hope to eliminate the confusion by explaining the different types of real estate agents and the different titles that real estate professionals may have.
<img src="https://assets.site-static.com/userfiles/3899/image/estate_experts.png" width="800" height="972" alt="Understanding The Roles Of Different Real Estate Experts" title="Understanding The Roles Of Different Real Estate Experts" />
Real Estate Agent
Real estate agents are licensed salespersons who have passed a state-administered exam in order to qualify for the profession. Real estate agents are legally allowed to sell property, but they must act under a real estate broker's authority and are in no circumstances allowed to work independently.
Requirements for a real estate agent license vary depending on where he/she wishes to be a practicing agent, but in most countries you must be at least 18 years old and have successfully completed college-level courses in real estate. This educational prerequisite must cover the specific state’s real estate laws and practices.
Real Estate Broker
In the industry's professional hierarchy, a real estate broker is one level above the real estate agent. The licensure exam for real estate brokers is generally longer and more difficult than a salesperson's exam, as brokers are held to higher standards of real estate knowledge. Without a broker’s license, a person is not allowed to act as a broker, run his or her own firm, or manage a team of agents.
Real estate brokers can choose to work independently, or employ real estate salespersons to whom they could distribute tasks and assign the legwork. And because they are the ones qualified to manage the agents, they generally hold bigger responsibilities. For every firm, there is only one principal broker.
REALTOR®
The title “REALTOR®” is given to real estate agents or brokers who belong to the National Association of REALTORS® (NAR), subscribe to its extensive Code of Ethics, and pays annual dues. NAR members also belong to state and local trade associations, which means that complaints against REALTORS® can be taken to the local board.
Listing Agent
A listing agent (also known as a seller's agent) is a real estate agent or broker who works exclusively with the home seller, represents him/her in negotiations with potential buyers, and operates based on the seller’s best interests.
Listing agents owe a fiduciary responsibility to the seller under a listing agreement, and must guide the seller through every step of the way--from marketing to closing.
The listing agent’s responsibilities generally include the following:<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Helping you prepare and stage your home for selling<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Listing your home in the MLS<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Being on top of the open houses and private home viewings<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Negotiating with potential home buyers
Buyer’s Agent
A buyer's agent is a real estate agent who works in the best interests of the buyer, and is expected to help him/her navigate the process of home buying. The duties of a buyer’s agent begin as early as in the pre-approval phase, and should be carried out until closing.
Some buyer's agents never work for sellers, and offer their services exclusively to buyers. Many agents still choose to work with both sellers and buyers, although not always in the same transaction.
The responsibilities of a buyer’s agent generally include the following:<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Helping you find the best home that fits your needs AND your budget<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Negotiating with the home seller on your behalf<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Providing reliable home inspectors<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />- Completing and processing the necessary paperwork
Broker Associate
A broker associate is a licensed real estate broker who chooses to work for another real estate broker. This usually happens when a broker wants to work with a larger firm to widen his or her real estate network. Some broker associates pay a flat fee to their employing firm/broker, and others earn a share percentage from each transaction.
Dual Agent
A dual agent is a real estate agent who represents both the buyer and the seller in the same transaction. If you decide to work with a dual agent, he or she will also represent the home seller or buyer you're negotiating with. However, dual agency is not legal in all 50 states, so you may have to check if this is a possible option in your case.
Transaction Agent / Transaction Coordinator
In states where dual agency is not allowed, listing agents who are left with the task of writing an offer for the buyer may choose to act as a transaction agent. This means that he or she does not represent either party but simply facilitates the transaction. They assist in processing the administrative items for a real estate transaction, including gathering and sorting out all the necessary paperwork, opening an escrow account, making sure contingencies are met and disclosure forms are properly signed and filled out, and managing timelines.
2018-08-10T15:37:00-07:002022-03-26T15:39:24-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7078NEVER Hire A Realtor Before Asking These 3 Questions
In our line of work, we talk to many buyers and sellers who tell us they already have agents they’re working with. In reply, we ask how many agents they interviewed before picking the one they have. Nine times out of 10, the answer is none.
Buying and/or selling a house is a really big deal; it’s not as simple as using any person who has a real estate license to help you do it. It’s important to find out if you’re working with the right person because it can cost you a lot of time and money if you’re not using a professional agent—about 80% of all real estate agents only close about five to six homes per year. That’s abysmal. You wouldn’t want an agent with that record handling what could be the biggest asset you’ll ever own.
There are three critical questions to ask when you’re interviewing agents for your transaction:
1. “How much business do you do, and over what time period?” Compare whatever figures they give you to your next alternative. You’ve got to work with someone who spends time out in the field, using and gaining experience that will help you with your own transaction. Markets can change in a relatively small amount of time, so if your agent hasn’t been active for long periods because they simply don’t do much business, then they’ll be out of touch.
2. “How are you different?” There are many factors that can make an agent stand out, but we’re focused on two. First, does the agent have access to off-market properties? Many people are interested in selling their homes, but don’t want to put them on the market. An agent with access to these kinds of sellers will be able to provide you with a wider pool of potential homes, ones without competing buyers.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Secondly, does the agent have team members specializing in different processes? No one person can do everything. We have a team who each handle different areas, like frontline communication, pricing analysis, contracts and addenda, and so on. For you, that is all behind the scenes, since you’re only communicating with the agent you hired.
3. “How much will you spend to market my home?” For sellers, if your agent is only doing five or six transaction per year, they won’t have the money to do your property justice when it comes to marketing. A good agent should be marketing your home to as many people as possible so that you can get as many viewings as possible, in turn getting you as many offers as possible. You can’t do that without a marketing budget.
The bottom line is: Don’t make the mistake of not interviewing your agents. Buying and selling homes is a huge deal that needs to be handled by a seasoned professional.
If you have any questions or comments, please don’t hesitate to reach out to us. We’d love to help you.2018-08-06T15:42:00-07:002022-03-26T15:43:42-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7080Would You Hire the Cheapest Service to Sell Your Largest Asset?
There is a perception around Seattle right now that the market is super hot and anything will sell, so why pony up for a full-service brokerage?
Consider this: Last year, 1,600 homeowners put their homes up for sale and failed to sell in the hottest market in the country. That's a huge inconvenience for those home sellers, who both lost money and now face an uncertain future.
Based on what we found, more of those failures were tied to discount brokers as opposed to traditional brokers. Since your home is your biggest asset, it is not the place to skimp on the professional you hire to sell it. For this reason, we decided to cover three things that you should consider when you are looking at a discount brokerage.
1. If you do not pay, they cannot market. If you are paying 1/3 of the industry norm for commission, that money is going to go to the brokerage and paying its people. It is not going toward getting attention to your home. Without this attention, your home will not get as many offers. If they do not have the money, they cannot spend it.
We spend about $100,000 a month on generating opportunities for our brokers, mostly off our listings.
2. You may end up doing your own work. There are different types of discount brokerages and some will have you do everything including filling out paperwork and negotiating your own deal, only stepping in when you are under contract. Others will offer better service, but you are still stuck figuring out the process on your own, which is something you do not want to do on your own.
3. Most discount brokerages and brokers are not interested in the outcome of your sale. I cannot tell you how many times I have sent an email to a discount brokerage only to get an auto response from an agent saying that they're only available on certain days. Or, I send in an early offer only to find out that the home has been taken off of the market before anyone's had a chance to see it.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> There are two different schools of thought here:
1. How do I list for the absolute lowest fee possible?
2. How do I extract every last dollar I can out of my largest asset?
If you have any additional questions, please feel free to ask. And, as always, if you are interested in buying or selling, please feel free to contact me by phone or email. I look forward to speaking with you soon.2018-07-20T15:46:00-07:002022-03-26T15:48:27-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7084Why You Should Take Automated Home Values With a Grain of Salt
Today we’re back with a bit of a controversial topic in the real estate world: the automated home valuation. Websites like Zillow and Redfin have tools that allow you to get an instant value of your home. Should these algorithm-based estimates be trusted?
We get questions about these estimates all the time. While these tools can be handy at giving you a rough estimate, there are some issues that you should be aware of so that you can interpret this data properly. We actually spent over a decade working at Zillow and dealing with Zestimates, so there’s arguably nobody that understands how to deal with them better than we do.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> The first thing that’s important to remember is that none of these websites have ever been to your home. That means they don’t have all the information. The condition of your home is absolutely critical to its value, as is its location. Sites like Zillow and Redfin don’t take this information into account.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Secondly, the vast majority of information that these sites collect is coming from county tax records. It’s not just based off your home, but it’s also based off all the information for all the other homes around you. If those numbers aren’t accurate, that can really throw off the value of your home.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Finally, most of these sites use comparable areas that are far too large to pull in similar homes and come up with a home’s value. This makes it very difficult to come up with an accurate value. They use mile wide zones to compare when it should be closer to a quarter mile.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> This topic is something we know a lot about and if you have any questions about pricing your property or about the real estate market in general, don’t hesitate to give us a call or send us an email today. We look forward to speaking with you soon.2018-06-22T15:56:00-07:002022-03-26T15:58:15-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7100Understanding Contingencies: A Guide For Buyers and Sellers
When looking for homes online, home buyers might chance upon a property with a “contingent offer” status. This means that an offer has been made and accepted, but the sale is still conditional while both parties work on meeting certain criteria.
These criteria, or contingencies, are actions that must be met for a contract to become binding. Both the seller and the buyer must both agree to these terms, and it is made official by including a “contingency clause” in the real estate contract.
<img src="https://assets.site-static.com/userfiles/3899/image/contingencies.png" width="800" height="800" alt="Understanding Contingencies: A Guide For Buyers and Sellers" title="Understanding Contingencies: A Guide For Buyers and Sellers" />
Whether you are a buyer or a seller, a solid understanding of contingencies is a must! Below are the 4 most common types, and what they mean for both buyers and sellers:
Mortgage Approval Contingency
In a lot of cases, a financing or mortgage contingency is worked into the contract to protect the buyer in case he or she is unable to obtain financing within a certain period of time. With this type of contingency, the buyer can reclaim his or her earnest money and legally walk away from the deal if the same terms and numbers stated in the contract cannot be met due to issues with financing.
The contingency clause typically states a specified number of days that the buyer can secure a mortgage loan, within which he or she has the freedom to terminate or follow through with the contract—depending on whether or not financing has been successfully obtained. Sometimes, the seller may agree to a request for an extension, but buyers must make sure to also have this in writing.
House Sale Contingency
Anyone who is in the process of buying or selling a house knows that timing and financing can be hard to align, and this is where the house sale contingency can benefit both buyers and sellers.
For buyers, this type of contingency allows buyers a specific amount of time to sell their current homes in order to finance the one they're buying. A house sale contingency may also indicate how much the current home must sell for so that he or she can afford purchasing the new home. For example, if the buyer had to accept an offer below the minimum price indicated in the contingency clause, he or she can back out of the contract without legal consequences.
In a seller’s market, house sale contingencies may not be advisable, as sellers are in a privileged position to choose the strongest offer among multiple bidders. If a buyer offers to buy the house on a house sale contingency, the seller may be forced to pass up on better offers while waiting for the buyer’s house to sell.
However, if it is a slow market and the seller is willing to consider a house sale contingency offer, it is in his or her best interest to accept one in which the buyer’s current house is already under contract and just waiting to close.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /><br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" />While house sale contingencies are more commonly negotiated in the interest of the buyer, sellers who are timing a move from one house to another can make good use of this contingency as well. The clause will indicate a certain amount of time for the seller to find a new house and get that home under contract before finalizing the sale and turnover of the current house.
Inspection Contingency
With an inspection contingency, the buyer reserves the right to perform due diligence on a house before finalizing the sale. This is done with a comprehensive inspection of the home, which is performed by a professional on behalf of the buyer within a specified time period.
The terms may vary, and the buyer has several courses of action depending on the inspection report:
Approve the report and follow through with the purchase
Refuse to buy the home if certain agreed upon standards are not met, have earnest money returned
Perform a follow-up inspection if certain areas need to be examined further
Ask the seller to perform the necessary repairs before proceeding with the sale
Request a price reduction equivalent to the estimated cost of repairs
The seller may refuse to cover the repair costs, in which case the buyer may freely back out of the sale and refund his or her earnest money deposit.
Appraisal Contingency
An appraisal contingency helps make sure that the buyer will be paying for the fair-market value of the home. If the property’s appraised value turns out to be lower than the asking price, the buyer reserves the right to back out of the contract and have his or her earnest money returned. However, an appraisal contingency may also include terms that will allow the buyer to push through with the sale even if the appraised value comes in below the listing price. In some cases, sellers may offer the house at a lower price just to seal the deal.
It is common practice in hot markets for home buyers to waive this contingency in order to strengthen their offers. In such cases, buyers need to be prepared to pay for the difference in cash, since most lenders will only put up the amount for the appraised cost.
Here is a sample scenario from <a href="https://www.realtor.com/advice/buy/what-is-a-contingent-offer/" target="_blank" data-uw-styling-context="true" aria-label=" (opens in new tab)" alt=" (opens in new tab)" title=" (opens in new tab)" data-uw-rm-brl="false" data-uw-rm-ext-link="na">realtor.com</a>:
“For example, let’s say you have a loan that covers 90% and you need to put 10% down for a home selling for $500,000. If the house is appraised at $475,000, the lender is only going to cover 90 percent of that appraised value, or $427,500. And instead of a $50,000 down payment, you would be expected to put down $72,500 to cover the difference. Waiving this contingency can be a gamble.”
At the beginning of any transaction in real estate, both buyers and sellers can propose almost any kind of contingency. This does not mean that all will be accepted, and there may be few negotiations to end up with a compromise. Contingencies must always be agreed to by both parties, and must always be put in writing. Negotiations can get tricky though, and it's always best to have a professional real estate agent guiding you at all times.
2018-05-16T08:50:00-07:002022-03-27T08:52:33-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:70975 Things That Might Cost You If You Hide Things From Your Landlord
As a renter, there's nothing more valuable than maintaining a good relationship with your landlord or property manager. One way you can keep a positive connection is by being honest and upfront right from the start. However, one surefire way to form a negative relationship is to lie or hide things from them. And because you will usually be found out anyway, you’ll have to deal with the consequences of your actions sooner or later. This could make your life more stressful in the long run.
Some of the most common things tenants hide from their landlord include pets, a roommate, damage or problems to the property, running a business, or even DIY repairs or improvements. While many of these things might not seem like a big deal to you as a renter, there are reasons why landlords choose to enforce these rules to their unit in the first place. Here are some of the things that might cost you if you’ve been dishonest to your landlord:
<img src="https://assets.site-static.com/userfiles/3899/image/rentallandlord.jpg" width="800" height="2845" alt="5 Things That Might Cost You If You Hide Things From Your Landlord" title="5 Things That Might Cost You If You Hide Things From Your Landlord" />
1. MONEY
Hiding things from your landlord can definitely cost you additional expenses. If you are
lucky enough, you will be simply charged with a fine and be required to pay extra rent or deposits as outlined in your lease. If your landlord discovers that you're secretly keeping a furry friend—which could be against your apartment’s pet policy—the management company could slap you with a hefty fine or charge back pet rent and deposit. In one of the worst-case scenarios, they may even ask to remove your pet and may consider terminating your lease. And that security deposit you’re holding onto that you can put towards a new place may be forfeited.
2. A PLACE TO LIVE
More than a simple fine, you can also get evicted if you break rental contract rules.Landlords have their reasons when they say they don’t want a pet or an unlisted roommate in their rental property. Your pets may not be covered by their insurance, and unlisted people may not be held liable if they caused damage to the property. It is simply not worth it to skirt the rules and breach the terms of your lease if it would mean you’ll be out of place to live. To avoid a stressed out life brought about by the ramifications of breaking your rental contract, do some research before you sign the lease.
3. CREDIT SCORE
If you’re still hoping to own a house as part of your American Dream, this can be one of the most important things you don’t want to risk while you’re still a tenant. If your landlord decides to evict you for breaking the terms of your lease, it can seriously affect your credit rating. And having a good credit score is certainly crucial for finding a new rental place or getting approved for a mortgage loan. It plays a big role especially when time comes for you to buy a home. The eviction may cause a serious drop in your credit score and it will likely appear on future tenant screening reports.
4. LEGAL ACTION
We know it’s something we all want to avoid, but hiding things from your landlord could even be a cause for a lawsuit if things escalate further. Some states allow landlords to sue tenants for damages or repairs they caused during their occupancy. It’s even a more likely scenario if your pet accidentally bites someone or your additional roommate incurred damage to the unit. As the renter, you have the option to countersue, but just think of how much time and money it might cost you during the process. Your landlord may also choose to take legal action if you refuse to pay fines or bills to cover the damages to the property.
5. YOUR REPUTATION
Aside from paying for additional expenses, losing your place to live, and risking an attractive credit score, what about your reputation? And we’re talking here about you losing a good rental reference, which is necessary when it’s time for you to apply to a new apartment. Even if your landlord is kind enough to let you stay on his property and only charges you with a fine, he/she will still likely bring up the dishonesty with your prospective landlords. Or the property’s management company could give you a negative review every time they areasked about your performance and reputation as a tenant. Without strong references from past landlords, this could make it rather difficult to secure a nice place that you actually want to live in.
Bottom Line
While rules differ from state to state and the consequences of your actions depend on the severity of the situation and the rental management style, being honest to your landlord is still the best policy. Do some research on the rental property before you sign the lease. If you want to move in with your pet or have been planning to get one soon, choose a pet-friendly unit where you'll need to pay the necessary pet deposit and extra charges. If you have a friend who wants to temporarily move in, get written permission beforehand to know if it’s even possible. Likewise, read your rental agreement carefully before you dare break the rules. At the end of the day, always contemplate the lesson of the old maxim: “Honesty is the best policy.”
2018-05-16T08:40:00-07:002022-03-27T08:42:35-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7105The Beginner's Guide To Escrow in Real Estate
<img src="https://assets.site-static.com/userfiles/3899/image/escrow.png" width="800" height="1218" alt="The Beginner's Guide To Escrow in Real Estate" title="The Beginner's Guide To Escrow in Real Estate" />
What is escrow and how does it work?
Escrow is a neutral third party that hold important items-such as money and documents-until the deal is officially closed.
At some point in a real estate transaction, you will encounter the word “escrow.” If you're the buyer and you make an offer on a home you like, you’ll provide an earnest money deposit in the form of a check that will be placed in this escrow. But what does it really mean?
That earnest money deposit will not go directly to the seller but will be held by a neutral third party, which is escrow. It’s like a secure holding area that will hold important items—such as money and documents—until the deal is officially closed. Escrow handles the transfer of the buyer's loan documents and property taxes. The escrow officer works closely with a buyer's lender and real estate agent to make sure the title of the home is clear of liens before the transfer of ownership.
Escrow officially opens when signed agreements are given to an escrow officer, who will help ensure that the conditions of the contract and any escrow instructions are satisfied. Escrow closes when all conditions have been met and the property ownership is transferred to the buyer.
Why is escrow important?
Escrow, as a third party, ensures that everthing during the closing proceeds smoothly, especially the transfer of money and documents.
It protects all relevant parties by making sure that no funds and property change ownership until all conditions in the agreement have been met.
For the buyer, the escrow can also act as a protection in case the seller failed to do the terms and conditions of the sale, such as passing the home inspection and completing important repairs to specific parts of the home. If the seller hasn't done his/her responsibilities even after the final walkthrough, he/she won’t get any of the buyer’s money until he/she has made the repairs.
Likewise, a seller can also benefit from escrow. If a buyer gets cold feet at the last minute and backs out of the deal with no legitimate reason, a sizeable amount of money the buyer included in their earnest money deposit will be forfeited to the seller. It serves as a decent consolation for the failure of the sale.
Escrow and Earnest Money Deposit
As mentioned, the earnest money deposit provided by the buyer will go to the escrow instead of the seller. This is because if the seller holds the deposit, he/she could use it as a hostage during the negotiation. By putting it in escrow, it serves as a safeguard to both parties just in case the deal falls through and they can't reach a final purchase and sale agreement. The earnest money check is payable to the escrow holder, who can either refund the money; apply it to the purchase price; or pass on the forfeited funds to the seller just in case the buyer fails to meet important requirements.
Who are the key players?
Escrow officer - An escrow officer or closer (in other states) will be responsible for processing the documents and funds that allow people to buy and sell homes. In other states, it could be a licensed attorney who will handle the escrow, but they often work with a title company representative to do some of the processing. The escrow officer acts as an objective party who transfers money and paperwork between all the people involved in a real estate transaction.
Buyer, Seller, Lender - These parties can give instructions to be signed and delivered to the escrow officer to close the transaction.
Real estate agent - When a real estate professional is involved in the transaction, he/she will typically provide the escrow officer with all the information necessary to create the escrow instructions and documents.
Note: While the real estate agent may recommend a particular escrow holder, the buyer and seller still have the right to choose and use an escrow holder whom they feel will best suit their needs in the transaction.
What are the duties of an escrow officer?
The escrow officer is responsible for these tasks (but also not limited to):
Communicating with the buyer, seller, and lender in a real estate transaction.
Determining specific escrow requirements.
Adhering to the instructions set forth by all parties involved.
Obligated to protect all funds and documents while in its possession.
Preparing the important mortgage documents to complete the sales transaction.
Depositing and disbursing funds in accordance with the instructions.
Paying all authorized fees, bills, and charges.
If necessary, the closer will also work with escrow tax documents to ensure that all parties legally comply with state mandates.
Closing the escrow when all terms have been met, such as inspections, disclosures, and any other objections.
Providing the closing or settlement statement.
Do I have a role in escrow?
Whether you're the buyer or the seller, you have yourrespective duties and responsibilities to help ensure a smooth transaction.
Make sure that you carefully read and understand your escrow instructions. In case you have questions or clarifications about those instructions, ask your escrow officer.
As much as possible, always respond quickly to correspondence regarding the transaction as this will help ensure a timely closing.
Make sure to deliver your funds to escrow in an acceptable form. Depending on the procedures of your escrow company, personal checks are often not permitted or accepted. This mistake could delay the closing process! Take note of the specific instructions on how to deliver your funds. Often, the most accepted forms are bank checks and electronic bank transfers.
Especially for buyers, carefully review and examine all of your closing documents, specifically your closing statement.
Once the transaction is completed, safely store your closing statement and other escrow documents for tax purposes.
Bottom Line
No matter how bad and confusing it sounds, escrow only guarantees that all parties—especially the buyer and seller—will be kept safe and secure as they move forward and complete the real estate transaction.
2018-05-08T09:07:00-07:002022-03-27T09:11:06-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7110How To Sell Your Home And Buy One At The Same Time (Or In The Quickest Possible Succession)
For some people with enough funds and other houses to live in, selling a home and buying one at the same time can be relatively easy since there is not much pressure involved. But for those who need the equity from their old house to buy a new one, things can get quite stressful--especially so when they have no other place to go while trying to sell the house they're living in.
<img src="https://assets.site-static.com/userfiles/3899/image/buy_and_sell.png" width="800" height="1211" alt="How To Sell Your Home And Buy One At The Same Time (Or In The Quickest Possible Succession)" title="How To Sell Your Home And Buy One At The Same Time (Or In The Quickest Possible Succession)" />
Most people caught in this situation have a number of options at their disposal. However, one must be aware of the factors that should affect his or her decision. Below is a guide on how to successfully pull off this feat, depending on what scenario you might be in:
Scenarios in which you have to SELL FIRST:
Scenario #1: You're in a seller's market in which you'll be caught in a bidding war for the house you want to buy.
In hot markets, it's unlikely for you to stand a chance in a bidding war if you make an offer contingent on the sale of your current home. If you’re up against multiple buyers, the best way you can stand out is to make a clean offer, with no contingency. Since you’ve already sold your home, you’ll have enough cash on hand to make this possible.
The game plan:
Find a reasonably priced rental with flexible terms, and stay there while staging your home to sell.
Once you sell your home, use the money to make a clean offer on the house you want to buy.
If everything goes well, you can move out of the rental in a few months.
Scenario #2: You'll be moving to a new city in a few months.
Whether it’s to start a new job, relocate with a loved one, or to accommodate any lifestyle change, you’ll be needing the money from your home equity to uproot yourself and start a life elsewhere. Besides, if you’re moving to a new city, it may be wise for you to rent a bit and explore different neighborhoods before buying your new home.
The game plan:
Declutter your home until it is adequately staged to sell.
Be sure to find a buyer who will agree for you to stick around for a bit until you're ready to move to your new city. You can either negotiate a longer period until closing or offer to rent back your home for a few weeks.
Find a short-term rental in your new city and use the time to begin your home search.
Scenarios in which you have to BUY FIRST:
Scenario #1: You're selling in a seller’s market, and buying in a buyer’s market.
It is easy to buy a house where the market is slow since there won't be too many people to bid against on the house you want. If you’re in a hot market, you can quickly find a buyer for the home you’re selling, so it’s improbable that you’ll be stuck with two mortgages for longer than you can practically afford.
In some cases, there won’t be anyone to compete with, and the seller may even accept an offer that is contingent to the sale of your home (also called a “contingency offer”). This way, you won’t have to worry about paying two mortgages at the same time.
The game plan:
Start staging your home to sell long before you plan to move out. This way, it can sell quickly once you put it on the market.
Make an offer on the house in the area you'll be moving to. If you’re making a contingency offer, negotiate a 30-day contingency period. If not, consider using an escrow account to secure the offer while waiting for your home to sell.
Put your house on the market once your offer on the new house has been accepted.
While this is highly unlikely to happen in a seller’s market, it is wise to consider a bridge loan if it takes you awhile to find a buyer.
Scenario #2: You have enough resources to make an offer NOW, even while your home for sale is still on the market.
Not many home buyers find themselves in this position, given that most people are only capable of making a down payment on a new home once they have already sold the previous one.
However, for those who have the money, consider these:
If you buy first, you can immediately move to your new home and have your previous home staged and presented in its most appealing state. If you do an impressive job on this, you can get an excellent offer on your home by marketing it vacant and ready for occupancy.
You'll only have to move once! No more looking around for a rental unit or storage space.
You can be more at ease knowing that you already have a home that is yours to stay in while dealing with the stress of selling your previous home.
The game plan:
Gather your funds from the sources you have in mind, and make a solid offer on the house you want to buy.
Move into your newly purchased home and stage your previous house to sell.
Once your home sells, pay back the accounts you've tapped by using the money you earned from the sale.
2018-04-24T09:22:00-07:002022-03-27T09:24:56-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7115The ABCs of Real Estate: Real Estate Terms Every Buyer And Seller Needs To Know
Whether you are a first-time home buyer or a third-time home seller, the real estate transaction can be confusing and stressful enough even without the many terms and acronyms used during the process. But don't be overwhelmed — we’ve compiled a mini-glossary of the important terms you should know and familiarize yourself with to help you better understand what’s going on with the home sale.
It’s good to remember what Steve Jobs said: “There’s always one more thing to learn.”
<img src="https://assets.site-static.com/userfiles/3899/image/abc.jpg" width="800" height="2597" alt="The ABCs of Real Estate: Real Estate Terms Every Buyer And Seller Needs To Know" title="The ABCs of Real Estate: Real Estate Terms Every Buyer And Seller Needs To Know" />
The ABCs of Real Estate
A: An <a href="https://www.thebalance.com/appraisal-process-when-buying-a-home-2395235" data-uw-styling-context="true" data-uw-rm-brl="false">appraisal</a> is a professional estimate of the value of the property by a certified appraiser. Lenders always require a home appraisal before they will issue a mortgage. Appraisers look into similar homes in the area that have been sold recently, also known as “comps,” and also take into account the home's condition, square footage, location, and quality to make an accurate assessment of how much the home is worth. There are many <a href="https://docs.google.com/document/d/1RBLpf5sJDp1vKTG8Wos20OvT2FX9p4PxC12wFmBf22s/edit" data-uw-styling-context="true" data-uw-rm-brl="false">myths</a> surrounding the home appraisal that buyers and sellers should be aware of to better understand this valuable process.
B: A backup offer is a secondary offer on a home that is under contract between the first buyer and the seller. It becomes active when the primary sale falls through due to a number of reasons. A <a href="https://www.maxrealestateexposure.com/real-estate-terms/" data-uw-styling-context="true" data-uw-rm-brl="false">backup offer</a> can be a useful tool to keep a buyer motivated to get the home that he/she wants.
C: A <a href="http://www.wendyweirrelocation.com/real-estate-terms-explained-plain-and-simple/" data-uw-styling-context="true" data-uw-rm-brl="false">contingency</a> in a real estate contract is anything that puts a condition on the buyer’s willingness to proceed with the purchase. Some of the most common contingencies include the financing contingency, inspection, sale, title, and appraisal contingency. A buyer will typically reserve the right to recover her earnest money if the contingency is not satisfied.
D: Down payment is the amount of money a home buyer pays directly to a seller and ranges between zero to 20 percent of the home’s purchase price, depending on the type of the loan. In the 2018 NAR Aspiring Home Buyers Profile, many home buyers have indicated that the most difficult step in the home buying process is saving for a down payment. However, there are popular <a href="https://www.ylopo.com/blog/grants-and-programs-to-help-home-buyers-afford-a-mortgage" data-uw-styling-context="true" data-uw-rm-brl="false">loan assistance programs</a> that can help buyers afford a mortgage, including the FHA loan, where buyers can get a mortgage with as low as 3.5 percent down payment. Likewise, the VA and USDA loans require no down payment at all for eligible home buyers.
Bonus: The <a href="https://www.investopedia.com/terms/d/dti.asp" data-uw-styling-context="true" data-uw-rm-brl="false">Debt-to-income ratio (DTI)</a> is a personal finance measure that compares an individual’s debt payment to his or her overall income. A low debt-to-income ratio demonstrates a good balance between debt and income. Borrowers who have lower DTIs are more likely to successfully manage monthly debt payments. Reducing your debt-to-income ratio <a href="https://www.ylopo.com/blog/proven-ways-to-improve-your-credit-score" data-uw-styling-context="true" data-uw-rm-brl="false">can help improve your credit score</a>, which lenders will evaluate when you’re applying for a mortgage loan.
E: <a href="https://www.redfin.com/definition/escrow" data-uw-styling-context="true" data-uw-rm-brl="false">Escrow</a> is a term for a neutral third party that handles the exchange of money and documents (purchase agreement, deed, loan documents, etc.) in compliance with the Purchase and Sale Agreement and any escrow instructions. Escrow handles the transfer of the buyer's loan documents and property taxes and works with a buyer's lender and real estate agent to make sure the title of the home is clear of liens before the transfer of ownership.
Bonus: The <a href="https://www.redfin.com/definition/earnest-money" data-uw-styling-context="true" data-uw-rm-brl="false">Earnest Money Deposit</a> is the money a buyer pays soon after a home seller has accepted his/her offer on a home, and is different from a down payment. Once the sale of the home has been completed, the earnest money the buyer paid will be applied toward the closing costs. If the buyer backs out of the sale due to a failed contingency, he/she can recover the earnest money in full. However, if the buyer backs out of the sale for reasons not covered by contingencies, he/she will forfeit the earnest money.
F: <a href="https://www.redfin.com/definition/foreclosure" data-uw-styling-context="true" data-uw-rm-brl="false">Foreclosure</a> is a process that transfers the right of home ownership from the owner to the bank or lender after the owner defaults on his loan.
Bonus: For-Sale-By-Owner, more commonly known as FSBO (pronounced “fizbo”), is used to describe a homeowner who is selling their property without the help or representation of a real estate agent. <a href="https://www.ylopo.com/blog/7-reasons-why-fsbos-dont-actually-work" data-uw-styling-context="true" data-uw-rm-brl="false">FSBOs</a> remain at an all-time low of 8 percent, according to the NAR 2017 Profile of Home Buyers and Sellers. At least 89 percent of home sellers continue to work with real estate agents to sell their homes.
G: The GreatSchools Rating by <a href="https://www.greatschools.org/" data-uw-styling-context="true" data-uw-rm-brl="false">GreatSchools.org</a> provides essential information to parents so they can choose the right school for their family. Since proximity to good schools is a major factor especially for buyers with children and young families, the GreatSchools Rating is a helpful tool for parents in <a href="https://docs.google.com/document/d/1firSXTDr1pWPmaMC-Z-xAEGzmO8290ytGTb_AogLNlw/edit" data-uw-styling-context="true" data-uw-rm-brl="false">evaluating the schools and school district</a> they’re considering.
H: <a href="https://www.redfin.com/definition/homeowners-association" data-uw-styling-context="true" data-uw-rm-brl="false">Homeowners’ Association</a> (HOA) is a nonprofit organization that manages a shared housing complex, including condos and other planned developments. The HOA provides funding for repairs, grounds maintenance, and security by collecting money from homeowners. It also creates and enforces rules for the properties.
I: An inspection, or typically known as a home inspection, is a thorough investigation of a property’s condition by a licensed inspector. It is the home inspector’s job to assess the condition of the property and look for any flaws that need to be fixed, even if a house looks like it’s in great condition.
J: A jumbo loan or <a href="https://www.redfin.com/definition/jumbo-mortgage" data-uw-styling-context="true" data-uw-rm-brl="false">jumbo mortgage</a> is a loan whose principal value exceeds the standard limits for Fannie Mae or Freddie Mac, the two government-sponsored enterprises that buy loans from banks. This type of loan is available for borrowers who do not qualify for a conforming loan and is commonly used for luxury homes.
K: <a href="https://www.investopedia.com/terms/k/key-rate.asp" data-uw-styling-context="true" data-uw-rm-brl="false">Key rate</a> refers to the specific interest rate that determines bank lending rates and the cost of credit for borrowers. In the US, the two key interest rates are the discount rate and the Federal Funds rate.
L: List Price is the price of a home for sale set by the seller and his/her listing agent. Real estate agents help set the price of the home right by doing a Comparative Market Analysis (CMA) to provide an accurate home valuation. Setting up a correct list price won’t turn off potential buyers and increases the chances of the home getting sold.
M: The <a href="https://www.realtor.com/advice/buy/what-is-the-mls-multiple-listing-service/" data-uw-styling-context="true" data-uw-rm-brl="false">Multiple Listing Service</a> (MLS) is a suite of around 700 regional databases, wherein each regional MLS has its own listings. Agents pay dues to access and post homes on each one, and they may become a member of more than one MLS if they want to have a broader reach for their clients. Only licensed real estate agents and brokers can list homes for sale on the MLS.
N: <a href="https://www.redfin.com/definition/net-proceeds" data-uw-styling-context="true" data-uw-rm-brl="false">Net Proceeds</a> is the amount of money a seller takes away from selling a home, after taking into account the agent commissions and closing costs.
O: Open House is an event where a house or property is open for viewing to potential buyers for a scheduled period of time. Many open houses occur on weekends, especially on Sundays.
P: A <a href="https://www.investopedia.com/terms/p/preapproval.asp" data-uw-styling-context="true" data-uw-rm-brl="false">pre-approval</a> is an evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan. During the process, a lender will evaluate the income and expenses of the borrower, including taking a thorough look at the borrower’s credit report and score. <a href="https://www.ylopo.com/blog/biggest-mortgage-mistakes-buyers-make" data-uw-styling-context="true" data-uw-rm-brl="false">Getting a mortgage pre-approval</a> is the first step serious first-time home buyers should do before they even go house-hunting. It will provide buyers a crucial guideline of what loan they can get, how much they can afford and how much the bank will lend them.
Q: A <a href="https://www.redfin.com/definition/quitclaim-deed" data-uw-styling-context="true" data-uw-rm-brl="false">quitclaim deed</a> is a legal document that transfers ownership of a home from one party to another, but does not give any guarantee as to what is being transferred. It simply transfers whatever interest the homeowner has in the property to his/her recipient. For an instance, a quitclaim deed can be used by a divorcing couple if the husband needs to transfer their jointly-owned property entirely to his wife.
R: A <a href="https://www.thebalance.com/what-real-estate-agents-do-2866370" data-uw-styling-context="true" data-uw-rm-brl="false">real estate agent</a> is an individual who is licensed to negotiate and arrange real estate sales; including showing property, listing property, filling in contracts, listing agreements, and purchase contracts. Real estate agents are generally licensed to operate under the supervision of a real estate broker. In the NAR 2017 Profile of Home Buyers and Sellers, at least 89 percent of home sellers worked with a realtor to sell their home, while 87 percent of buyers purchased their home through a real estate agent. Especially for first-time home buyers, <a href="https://www.ylopo.com/blog/2018/1/12/top-5-things-a-great-real-estate-agent-will-do-for-home-buyers" data-uw-styling-context="true" data-uw-rm-brl="false">hiring a great real estate agent</a> can help you save time and resources on your journey to purchasing your dream home.
S: A <a href="https://www.trulia.com/guides/whats-a-short-sale/" data-uw-styling-context="true" data-uw-rm-brl="false">short sale</a> happens when an owner is selling their home for less than the mortgage they owe on it. The lenders may agree to take a “short” on the mortgage to release it for sale. A short sale is typically seen as the last step before a foreclosure. It often happens after a low appraisal or a decline in property values.
T: <a href="https://www.redfin.com/definition/title" data-uw-styling-context="true" data-uw-rm-brl="false">Title</a> is the right to ownership of a specific real estate property. Once the transaction closes, the buyer will receive a final title policy recording their names as the new legal owners, along with the amount of title insurance. The most common methods of holding title in real estate are the joint tenancy, tenancy in common, and sole ownership.
U: Upfront Costs refers to all the costs a buyer pays once his/her offer on a home has been accepted, including earnest money, the inspection fee, and the appraisal fee.
V: The Veterans Affairs (VA) home loans are unique mortgage options for current and former members of the military, offered by the U.S. Department of Veterans Affairs. Veterans, active-duty service personnel, select Reservists or National Guard members, as well as spouses of military members who died while on active duty, are among those who can qualify for this loan. The VA provides a home loan guaranty benefit and other housing-related programs to help them become homeowners.
W: Walkthrough refers to the final inspection of a home before closing. Buyers should complete a final walkthrough with their real estate agent to make sure any agreement to make repairs on the property have been fulfilled before the closing papers are signed.
X: <a href="http://www.texashomesandinvestmentproperty.com/real-estate-library/xeriscape.html" data-uw-styling-context="true" data-uw-rm-brl="false">Xeriscaping</a> is a creative and sustainable landscaping that conserves water and is based on sound horticultural practices. The process was originally developed for drought-affected areas and is best for areas with water restrictions. In xeriscaping, the need for maintenance is minimal and water requirements are low. The <a href="https://www.realtor.com/advice/home-improvement/9-tips-for-xeriscaping/" data-uw-styling-context="true" data-uw-rm-brl="false">practice</a> relies on using local plants accustomed to the climate and getting the most out of everything you plant. Homeowners can lessen the impact on their local environment by creating this type of sustainable landscape. A good xeriscape can also raise property values more than extensive landscaping.
Y: A <a href="https://www.redfin.com/definition/yield-spread-premium" data-uw-styling-context="true" data-uw-rm-brl="false">yield spread premium</a> (YSP) is the compensation a lender pays a mortgage broker to sell a loan with a higher interest rate. The YSP is listed on the loan estimate and Closing Disclosure.
Z: A <a href="https://www.redfin.com/definition/zero-lot-line" data-uw-styling-context="true" data-uw-rm-brl="false">zero-lot-line property</a> is a building that comes to the very edge of the property line on at least one side. Units may be attached to one another in a zero-lot-line housing development, leaving no room for a yard. Many townhouse developments are built on zero-lot-lines.
2018-04-18T09:38:00-07:002022-03-27T09:41:33-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7114What's In A Mortgage? Breaking Down the Components of A Mortgage Payment
In simplest terms, a <a href="https://www.investopedia.com/personal-finance/understanding-mortgage-payment-structure/" data-uw-styling-context="true" data-uw-rm-brl="false">mortgage</a> is a long-term loan designed to help borrowers purchase a house. It allows individuals to become homeowners without making a large down payment and thus, fulfilling The American Dream. Once you become a homeowner, a mortgage represents one of your life's biggest financial commitments. So it’s important to understand the structure of your payments — what percentage goes to principal, interest, and taxes, and what you currently owe on your loan balance.
<img src="https://assets.site-static.com/userfiles/3899/image/mortgage_payment.jpg" width="800" height="3952" alt="What's In A Mortgage? Breaking Down the Components of A Mortgage Payment" title="What's In A Mortgage? Breaking Down the Components of A Mortgage Payment" />
I'm a first-time home buyer. Once I closed on my new home, when will my mortgage payment start?
Mortgage payments usually start one full month after the last day of the month in which the home purchased closed. Unlike rent payments, which are usually paid in advance on the first day of the month, mortgage payments are paid in arrears. It means the payment is expected to be made at the end of the month. For an instance, after closing on your new home on March 28, the first full mortgage payment, which is for the month of April, is then due on May 1.
2 primary factors to determine your monthly mortgage payments
Size of the loan - refers to the amount of money borrowed.
Term of the loan - the length of time within which the loan must be fully paid back.
Remember: Longer terms result in smaller monthly payments. This is why the <a href="https://www.ylopo.com/blog/2018/2/9/5-reasons-why-a-30-year-mortgage-may-be-the-right-choice-for-you" data-uw-styling-context="true" data-uw-rm-brl="false">30-year mortgage</a> remains the most popular mortgage financing option among many home buyers.
Remember PITI: The 4 Major Components of a Mortgage Payment
PRINCIPAL
The actual amount of money you borrowed from the lender without the interest. It is the face value of your mortgage on the first day. For an instance, if your mortgage is $250,000 with a 4.5% interest rate, your principal remains at $250,000.
A portion of each mortgage payment goes to the repayment of the principal. If you take a mortgage with a fixed-interest rate, your principal repayment will be the same for the life of the loan. A greater amount of the principal is paid during the back half of the loan because the majority of the payment in the first few years goes primarily to interest.
To calculate your starting principal balance:
Principal Balance = Purchase Price + Fees Rolled into Mortgage - Down payment
INTEREST
The interest is another big part of your mortgage payment. It is basically the profit that goes to the lender. Think of it as the lender’s reward for taking a risk and lending money to a borrower. Lenders will want to earn their interest back in the first few years of the loan repayment before they start reducing principal. Meaning, the majority of your mortgage payment goes to the interest in those first few years, but every month you pay down a little bit of principal as well. This is the method banks use to protect themselves in the event of a default. But the more payments you make, the lesser amounts goto interest and a bit more goes to the principal. For a 30-year loan, the first seven years will go mostly towards the interest.
Higher interest rates = higher mortgage payments
Interest is accrued annually regardless of whether you have a fixed-rate mortgage or an adjustable-rate mortgage. It’s important to note that the interest rate on a mortgage has a direct impact on the size of a mortgage payment. The average 30-year fixed-mortgage rate <a href="https://www.zillow.com/home-values/" data-uw-styling-context="true" data-uw-rm-brl="false">until March this year</a> is 4.54%, which rose slightly higher since November 2017.
To calculate how much of your payment goes to interest:
Interest Portion = Current Principal Balance ? (APR ÷ 12)
Side Note: What is amortization?
Amortization is a sliding scale that shows how much of your monthly mortgage payment is going towards principal and how much is going towards interest. It also includes a breakdown of every payment for whatever term you select. To have an idea of where your monthly payment typically goes, visit your lender’s website and print off a copy of your amortization schedule. There are also free amortization schedule calculators online that you can use as a guide to estimate the monthly payment on your mortgage.
TAXES
Almost all lenders require you to include, or escrow, the taxes into your monthly payment. It is because property taxes take first priority over everything else. The tax portion of your payment could vary from year to year depending on the town where you live and your property’s value. Real estate taxes are assessed by governmental agencies and used to fund various public services, including the school district, road construction, the police and fire department services, and others.
The amount that is due in taxes is divided by the total number of monthly mortgage payments in each year. If you escrow, you place the next tax payment in advance with your lender and they pay the taxes for you. If you have an extra amount in your escrow account at the end of the year, your lender may cut you a check and then simply roll it over to next year.
INSURANCE
Insurance payments, just like property taxes, are also part of each mortgage payment and held in escrow until the bill is due. This is done to ensure that you are always covered in the event of an emergency. The taxes and insurance typically don’t experience much fluctuation, unless there is a run on foreclosures or if your neighborhood was hit by weather issues, then it could change significantly.
Common Types Of Mortgage Insurance Included in Mortgage Payments
Private Mortgage Insurance (PMI)
This type of insurance is mandatory for homeowners who purchased a home with a down payment of less than 20% percent of the home’s purchase price. It protects the lender from financial loss in the event that a borrower defaults on the loan. The rates for PMI differ from loan to loan and depends on several factors, including the borrower’s credit and the amount of down payment. Typically, this insurance costs between 0.3% to 1.15% of the mortgage loan amount.
For most conventional loans, the payment for PMI is necessary until you have at least 20 percent equity in your property. A borrower also has the option to choose from different payment plans: annual, monthly, and upfront payment.
Homeowner’s Insurance
This is a <a href="https://www.investopedia.com/terms/h/homeowners-insurance.asp" data-uw-styling-context="true" data-uw-rm-brl="false">form of property insurance</a> that covers losses and damages to an individual’s house and assets in the home. It also provides liability coverage against accidents in the home or on the property. Homeowner’s insurance is often bundled with mortgage payments. It’s important that homeowners educate themselves on the amount of their homeowner’s insurance premium every month.
Mortgage Insurance Premium (MIP) in FHA Loans
The MIP is an insurance policy used in FHA Loans. It protects lenders against losses that result from defaults on home mortgages. In an FHA loan, both upfront and annual mortgage insurance are required for all borrowers, regardless of the amount of down payment. Borrowers can check the annual MIP rates on the <a href="https://www.fha.com/fha_requirements_mortgage_insurance" data-uw-styling-context="true" data-uw-rm-brl="false">FHA website</a>.
2018-04-18T09:35:00-07:002022-03-27T09:38:06-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7119What Is An Interest-Only Loan And Who Is It For?
Are you considering buying a house with an interest-only loan? We rounded up the 5 most common questions about this type of loan and came up with the best answers from the experts.
<img src="https://assets.site-static.com/userfiles/3899/image/interest_only_loan.png" width="800" height="1165" alt="What Is An Interest-Only Loan And Who Is It For?" title="What Is An Interest-Only Loan And Who Is It For?" />
What is an interest-only loan?
An interest-only loan is an adjustable-rate mortgage that allows homebuyers to pay only the interest rate for the first few years.
The interest-only period typically runs for 5 years (10 years max), after which the loan converts to the normal principal and interest repayments. However, borrowers are also given the option to pay the balloon (principal owed) as a bulk payment.
During the interest-only period, monthly payments are significantly lower than if you were approved for a traditional amortizing loan.
How are interest-only mortgage payments different from those of a traditional loan?
To understand how an interest-only loan works, keep these definitions in mind:
Principal = face amount of money owed
Interest = time cost of borrowing
Payments for conventional mortgages combine the cost of the principal and the interest for every payment, while payments for interest-only loans include exactly what the loan says: interest ONLY.
Monthly payments on interest-only loans are relatively low since the principal is excluded during the loan term. Borrowers will then have to start paying the principal interest once the interest-only term expires, which is usually after 5 to 10 years. This means that higher monthly payments will still occur after the interest-only period.
How do you calculate the payment on an interest only loan?
The calculation of payments for interest-only loans is pretty straightforward. The loan balance is simply calculated by the interest rate.
For example:
If you owe $250,000 at 5%, you'd owe $12,500 per year or $1,041.67 per month. (Calculated using the Bankrate Interest-Only mortgage calculator)
It is important to note, though, that the payment rises and falls with the LIBOR rate (London Interbank Offering Rate), which is the benchmark most lenders (including banks and financial institutions) use to determine interest rates for short-term loans. If LIBOR rises, the interest payment increases.
You must also make sure that you fully understand the terms of your agreement, as this varies among lending institutions. The key is to be aware that interest rates are usually variable, and will adjust regularly according to the terms of your mortgage.
Who are interest-only loans for?
Interest-only mortgages can be very tempting, but this type of loan is not designed for every type of buyer.
In fact, you should consider an interest-only loan only under certain circumstances, such as the following:
Your source of income tends to be sporadic (i.e. commission-based, dependent on periodic bonuses, etc.).
You're an investor who receives dividends in quarterly or semiannual payments, or a high net worth individual who wants to maintain liquid assets for higher yielding investments.
You’re a young professional who is confident that your income will considerably increase by the time the loan reverts to a conventional mortgage with higher payments.
You’re a short-term homeowner planning to refinance or sell your home before the interest-only term expires, who prefers to have cash on hand rather than build equity.
These are just some situations in which interest-only mortgages can be a good idea. Still, borrowers must fully understand the risks involved in taking this kind of loan. Investors, for example, should make sure that they really invest the difference they save from low mortgage payments. Young professionals must be realistic about their future income, since optimism doesn’t always translate into money. There is also the risk of a market collapse, in which case first-time homebuyers cannot expect low interest rates.
Interest-only loans may not be ideal if you are a standard home buyer who wants to pay less on your monthly repayments. You’ll only end up paying more in interest over the years, since low monthly repayments on the principal will translate to higher loan interests over time.
How can I qualify for an interest-only loan?
The mortgage industry has started implementing stricter qualifying processes with tougher requirements. But if you have done your research and are sure that an interest-only mortgage is the best option for you, consider taking the time to consult with a professional or ask your agent to walk you through the process.
Lenders will expect you to provide ample justificationf or the amount of the mortgage loan requested, so gather all income documents that can verify the consistency of your cash flow.
Interest-only mortgages also require “good” credit, which means that you need to have a score of 680 or higher. This also goes without saying, but you have to make sure to find a home which you are 100% sure you can afford for the foreseeable future!
2018-04-11T10:48:00-07:002022-03-27T10:52:33-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7121Home Appraisals 101: Factors an Appraiser Looks At To Determine a Home's Value
An appraisal is an integral part of the home buying process as it determines the objective value of a property. Lenders require an appraisal to help them evaluate a home before they issue a mortgage. Appraisals are done by trained and licensed appraisers, who will then give an unbiased report of the home's market value.
We’ve already uncovered some of the <a href="https://docs.google.com/document/d/1RBLpf5sJDp1vKTG8Wos20OvT2FX9p4PxC12wFmBf22s/edit" data-uw-styling-context="true" data-uw-rm-brl="false">most common misconceptions</a> about the home appraisal that most buyers and sellers have, and it’s a first step to understanding this valuable process. Now, the next important question is: “What do appraisers really look at during a real estate appraisal?”
<img src="https://assets.site-static.com/userfiles/3899/image/appraisal.png" width="800" height="1140" alt="Home Appraisals 101: Factors an Appraiser Looks At To Determine a Home's Value" title="Home Appraisals 101: Factors an Appraiser Looks At To Determine a Home's Value" />
Most appraisers use the <a href="https://www.fanniemae.com/content/guide_form/1004.pdf" data-uw-styling-context="true" data-uw-pdf-br="2" data-uw-pdf-doc="">Uniform Residential Appraisal Report</a> by Fannie Mae, which includes a set of standards that determine the scope of an appraiser's inspection. They look at a number of factors to get an accurate appraisal, including:
The home's exterior
The appraiser will pay serious attention to the structural aspects of a home, specifically its foundation, the walls, and roof. The checks will determine the integrity and functionality of those three major components, as well as any defects or damage in the general construction. Any problem with the roof or foundation can immediately dismiss the home unlivable. The inspection will also assess the age of the home, any issues with siding or guttering, and evidence of leaks, cracks or water damage. Be aware that the appraiser will greatly focus on these things as they could definitely impact a home’s value.
Other external factors that will be checked include any potential issues like flood-prone areas and dead trees, parking facilities, and the home’s observable external condition.
Size of the property
When the home is being evaluated, the size of the lot and the size of the home itself are all important considerations. An appraiser will be concerned with the total square footage and the home's functional layout, as well as the number of bedrooms and bathrooms. The more bedrooms and bathrooms there are in a home, the higher its expected value because most buyers would want the most number of rooms.
The condition of the home's interior
For an appraiser, the condition of the home’s interior is just as important as its exterior. Appraisers will check the materials and condition of the windows and doors, flooring, plumbing and electrical systems, the number and quality of appliances, the kitchen, bathroom, and all other important parts of the home. He or she will also check for health and safety issues, such as fire escapes and handrails. If the home has undergone a major remodel, it is his/her job to check the code compliance requirements for certain renovation projects. Appraisers will also look closely and itemize all appliances and fixtures installed in the home, including the dishwasher, refrigerator, washer/dryer, oven, and others.
Quality home improvements
The appraiser will also be very interested in any improvements you made to your home, as well as the quality of those improvements. Quality upgrades that make your home more desirable will be considered by the appraiser to determine your home's overall value.
A new floor, a renovated kitchen or bathroom, new HVAC system, upgraded appliances, insulated windows, renovations to the attic, a garage, and any smart technology systems installed, can all add to the lasting value of the property. These upgrades are all critical elements and will be itemized during the home appraisal. Appraisers will also check for amenities like a fireplace, patio, fence, porch, and other home additions.
Using Comparable Sales or “Comps”
The home's location and neighborhood also have an impact on its value since appraisers also use “comparable sales” when finding the value of a home. Comparable sales refer to the prices of homes in the neighborhood that have similar age, size, and construction to the home being appraised and which have been currently sold. Appraisers will chiefly consider the square footage and the number of rooms of the home and compare it to other properties. The comparison should be apples to apples, meaning, residential homes will be compared to other homes and condos are compared to other condos. Appraisers can then make adjustments with these “comps” based on the features and qualities of the subject property. A home can be priced higher if it has more bedrooms, or its value can be lowered if there’s a problem with the roof or its foundation.
Bottom Line
Remember that an appraisal is not an exact science but only an opinion of a home's value based on the comps and the actual condition of the home. In other words, appraisers are looking for any items that can affect the home’s value. The final valuation will be based on real estate market trends, current sale prices, and the specific characteristics of the home. The final appraisal report includes the information used by the appraiser, details about the subject property, and the explanations of the valuation results. The report will be given back to the lender, who will then use it as a guide before making a decision about the loan.
2018-04-10T10:55:00-07:002022-03-27T10:57:19-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7125Home Appraisals 101: Common Myths Buyers and Sellers Should Stop Believing
What is an appraisal?
An <a href="https://www.thebalance.com/appraisal-process-when-buying-a-home-2395235" data-uw-styling-context="true" data-uw-rm-brl="false">appraisal</a> is a professional estimate of the value of a home done by a certified appraiser. It is a critical process for buyers because lenders always require a home appraisal before they issue a mortgage. Meanwhile, for sellers, a good understanding of the appraisal process will help them understand how their home's value is determined.
Here, we uncover the most common home appraisal myths to help both sellers and buyers better understand this valuable process in real estate.
<img src="https://assets.site-static.com/userfiles/3899/image/appraisal_myth.jpg" width="800" height="3208" alt="Home Appraisals 101: Common Myths Buyers and Sellers Should Stop Believing" title="Home Appraisals 101: Common Myths Buyers and Sellers Should Stop Believing" />
Myth #1: The home appraisal is the same as the home inspection
This is probably the most common home appraisal myth that most buyers and sellers believe. While the home inspection and home appraisal are both used to determine the condition of a property to protect the buyer and the buyer's lender, the two tasks are entirely different. A home inspection is done to identify issues with a home. The home inspector looks for issues that all parties should be aware of before the deal goes on. It is the inspector’s job to look for anything that might be problematic, like mold manifestations, problems with the foundation, plumbing and electrical problems, roof issues, and so on.
The appraiser’s job, on the other hand, is to find the objective market value of the property. The appraiser will look into similar homes in the area that have been sold recently, also known as “comps,” to determine a value. Yes, it’s the same thing you and your realtor used to come up with a list price. Appraisers also take into account your home’s condition, square footage, location, and quality and use the information to make their accurate assessment of how much your home is worth.
The only time an appraiser also takes the role of a home inspector is when the borrower is getting an FHA or a VA loan. In that case, the appraiser will also look for certain deficiencies in a home and may flag those problems during an appraisal.
Myth #2: The buyer owns the appraisal
Since the buyer pays the appraisal, does the appraisal belong to the buyer?
It’s easy to assume that the appraiser works for the buyer. However, while the buyer certainly pays for the appraisal, the appraiser actually works for the lender. An <a href="http://sacramentoappraisalblog.com/2017/10/25/does-the-buyer-own-the-appraisal/" data-uw-styling-context="true" data-uw-rm-brl="false">article</a> written by Ryan Lundquist, a certified appraiser, shows a copy of an appraisal report and clears up this common misconception. An appraisal report during a typical loan indicates that the client listed is the lender and that the buyer is listed as the user.
It is the lender who engages the appraiser to do the job. The appraisal is actually an “investigation” to protect the buyer’s lender from a bad deal. The report will help the lender evaluate the property and make a decision about the loan. Rest assured, appraisers are trained to be unbiased and ethical. It’s also a crime to put any pressure on appraisers for them to come up with a certain value. Likewise, a buyer is also legally entitled to have a copy of the appraisal from the lender, especially in Fannie Mae or Freddie Mac mortgages.
Myth #3: An appraisal will let you know how much the buyer will pay
Rather than being an exact science, the appraisal is only an opinion of a home’s value based on the comps and the actual condition of the home. It could never indicate how much the buyer should pay, or how much the seller should accept to complete the deal. The appraisal report only provides guidance to the lender and serves as a safeguard for his/her investment.
If the appraisal doesn’t match the contract price or if the home is appraised lower than the price the seller and buyer agreed upon, discussions will proceed on who pays for the shortfall. No, the lender definitely isn’t going to give more money to cover the difference. Instead, the seller and buyer can agree to negotiate a new purchase price that will match the appraisal.
Myth #4: A bigger home has a higher appraisal value
The biggest home in the area doesn’t guarantee that it will be appraised way higher than its neighboring homes. In fact, having an exceptional home in an otherwise average neighborhood can actually do more harm than good. An appraiser will greatly consider the size and amenities of other homes in your neighborhood to determine the price of your home. If your home is super-sized but is actually surrounded by lower-priced homes, its value will still be lowered. The real estate cliche that says it’s better to “buy the worst house in the best block” is still true. It’s because being surrounded by higher-priced homes will also bring up your home’s value, so location remains a top factor.
Myth #5: All home improvements raise the home’s value
It isn’t surprising that most sellers assume they will get equal value for every home improvement project they complete. But what they don’t know is that there are some <a href="https://docs.google.com/document/d/1KLHr4BJ6_EvueG5GYYePD9mSF6JKDby5lyaaEPLN15o/edit" data-uw-styling-context="true" data-uw-rm-brl="false">home improvements that could actually lower its value</a>, and appraisers won’t actually applaud you for those. If you converted your garage into another living space or removed a bedroom to give way to a bigger room, well, you may be in for a surprise. Appraisers base their judgment on measurable aspects of the house, such as the square footage, number of rooms, the home’s foundation, and others. So it’s important to note that every necessary home feature should serve its primary purpose. Having four bedrooms in a neighborhood with mostly three-bedroom houses can bring up your home’s value more than a fancy garage-to-gym conversion.
Likewise, overly improving your house with intricate amenities that don’t even exist in surrounding homes won’t be beneficial. It’s because there will be no nearby sales data that the appraiser can use to evaluate how much those amenities are worth. When it comes to home appraisals, not all renovations can proportionally raise your home’s value, so be careful and educate yourself before removing or adding any amenities.
Bottom Line
Thankfully, working with a trusted local real estate agent can help a seller be more prepared for the home appraisal. Realtors can fill in any information that can be beneficial to the process since they understand what appraisers are looking for. They can look up comparable properties and they know and understand the local market where the home is located. Realtors can also help a seller point out the features and improvements on the property that can help increase its worth.
2018-04-05T11:03:00-07:002022-03-27T11:05:45-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7132Understanding Buyer and Seller Rights Before Closing
Just like any sale, both the buyer and the seller have their own rights in making a home purchase. Are you knowledgeable about these? Don't get into a deal just yet if you don’t know your rights!
<img src="https://assets.site-static.com/userfiles/3899/image/buyer_seller_rights.png" width="800" height="892" alt="Understanding Buyer and Seller Rights Before Closing" title="Understanding Buyer and Seller Rights Before Closing" />
In investing in a property, you must be familiar with your own legal advantages and limitations, and always remember that the seller has his/her own rights as well.
Before anything, be sure you know what you're getting into!
Before closing any deal, you must know what it means to make a “sale.” Legally, this means that one party (seller) is transferring property to another party (buyer) for a price.
This price may be paid in full by the buyer upon entering the agreement, or the buyer may have promised to pay in full when he/she gets the rights to the property. Another case would be making partial payments: partial payment upon agreement (a down payment), with a promised partial payment that will complete the deal when the property has been fully transferred from buyer to seller.
Now that you’ve made a deal, remember the rights the law provides you.
I'm the Buyer
If you're the one who the property is being transferred to, here are the things you may need to know.
1. The seller kept something about the property from me, can I do something about it?
If the seller didn't disclose something about the property, you should look up the local guidelines for this. Laws on disclosure depend on the state, and may even vary among cities.
For example, some states allow a sale even if the seller didn’t tell you that the house you’re buying was once used to manufacture illegal drugs. In another state, though, this will not be tolerated.
2. I'm not sure about the Home Owner's Association (HOA) contract, so I don't think I want the property anymore.
Can you walk away from a deal if this is an issue? Yes! But this will depend on a date specified in your contract.
There is a law that protects the buyer from any disagreements about the HOA Declaration of Covenants, Conditions, and Restrictions. But keep in mind that there's a specific time for you to check and read through these documents, and this time frame is different in every state. Make sure to check the grace period in your state when you make a deal.
3. My current home isn't sold yet, but I already want to make a deal on my dream home. What can I do?
You wouldn't want to be stuck paying two mortgages, so what are your options?
Try making an offer with your seller that is dependent on the sale of your current home. A deal like this gives you the option to back out from the deal within a fixed period.
You must know, however, that a contract of this kind still gives the seller a choice to back out at any time another offer comes in, especially if it doesn't have a contingency clause. If in case this happens, don't worry--you still have time (around 72 hours) to remove the contingency and make a deal with the seller.
I'm the Seller
If you're the one transferring the property to another party, you should take note of the following:
1. I accepted an offer, but I still want to look at my options. Can I still do this?
Yes, you can still look at other offers, but that doesn't mean you can accept them in place of the contract you already agreed to.
What you can do at this point is to make another interested buyer take the "backup position." If your first deal doesn't go well and fails for any reason, you can automatically take the deal with the second buyer.
2. The buyer's financing is unstable. Can I back out?
Yes, especially for the following conditions:
- If the buyer's financing fell through before your closing date, you have the right to walk away.
- If you see the buyer's loan terms will affect you negatively, you have the right to refuse the offer.
3. The house appraisal doesn't match the contract price. Can I stop the buyer from opting out of the contract?
Definitely.
If the house inspection raised issues your buyer is not prepared for, you can shoulder the cost for your buyer to continue with the contract.
If it's a matter of appraisal that is less than your offer, don't panic about the possibility of the sale falling through. If the lender allows it, you can give the buyer the option of paying the difference in cash. If not, have the buyer shoulder some of the seller's closing costs instead. It is worth noting, though, that lowering the price is often the best solution--since a higher appraisal isn't a guarantee when you decide to go with a different buyer (not to mention the hassle of having to sell the property again).
2018-03-15T11:22:00-07:002022-03-27T11:25:15-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7137Use This Right to Win!
Today, we’re talking about a unique addendum for a Purchase and Sale agreement: the escalation clause.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you are currently in the process of a real estate transaction and you haven’t heard of escalation clauses, then you are working with the wrong person. This clause is included in the vast majority of offers we write, because it’s a requirement in a competitive market.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Now, let’s talk about what it is. An escalation clause essentially has two key elements: the “max” and the “step.” The “max” is the maximum figure you are willing to spend on a home and the “step” is how much more money you are willing to give for the home than the next competing offer.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> An escalation clause only kicks in when there’s another offer on the table. So one of the requirements of the clause is that the seller shows you proof of the other offer. This ensures you don’t overpay, since activating the escalation clause pushes your offer up from the initial figure you put forward.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> To give you an example of an escalation clause at work, we’d like to share an interesting story.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We recently helped a client who was looking at a condo in West Seattle. We were competing against a cash offer, so we proceeded with an escalation clause. At first, the buyer wanted to go just $1,000 or $2,000 over the competing offer, but this wasn’t going to be sufficient. Why would the seller of a $500,000 listing take a risk on a financed offer for just $2,000 more than the all-cash offer on the table?<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> So, after talking with our buyer and explaining this to them, we upped the step. We made our offer much more compelling and beat out the cash offer while still paying less than the buyer’s maximum threshold.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> As a buyer in today’s market, it’s important to put yourself in the seller’s shoes as you make your offer. This will benefit everyone and, in the end, help you get a better deal. Of course, any offer you make will still have to appraise, so keep that in mind as you move forward.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.2018-02-19T17:36:00-07:002022-03-27T16:37:52-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:71425 Ways Millennials Are Changing The Real Estate Scene
Millennials.
They're the generation of people born between the 1980s to early 2000s, or also called the Generation Y. Many stereotypes have influenced how they have been viewed by the public, including the typical assumptions that they jump from one job to another, that they couldn’t even save for a down payment, or that they overspend.
But the recent <a href="https://bettermoneyhabits.bankofamerica.com/content/dam/bmh/pdf/ar6vnln9-boa-bmh-millennial-report-winter-2018-final2.pdf" data-uw-styling-context="true" data-uw-pdf-br="2" data-uw-pdf-doc="">2018 Better Money Habits Millennial Report</a> by Bank of America says otherwise. “Millennials deserve more credit — both from themselves and from others — for their mindfulness when it comes to money and their lives, ” says Andrew Plepler, Global Head of Environmental, Social and Governance. This key takeaway is related to how millennials are saving and managing their money. And when it comes to saving, at least 33 percent of millennials prioritize saving towards buying their first home.
In the <a href="https://www.nar.realtor/sites/default/files/reports/2017/2017-home-buyer-and-seller-generational-trends-03-07-2017.pdf" data-uw-styling-context="true" data-uw-pdf-br="2" data-uw-pdf-doc="">NAR Home Buyer and Seller Generational Trends Report 2017</a>, it is expected that 66 percent of millennials will buy homes in the next five years. And while each generation is different, there’s no doubt that millennials have their own set of unique attitudes and preferences towards home buying.
“Millennials are shaping the market more than anyone realized,” says Jeremy Wacksman, Chief Marketing Officer at Zillow Group. According to the <a href="https://www.zillow.com/research/zillow-group-report-2016-13279/" data-uw-styling-context="true" data-uw-rm-brl="false">2016 Zillow Group Report on Consumer Housing Trends</a>, 50 percent of today’s US home buyers are under 36 or those who are called Millennials, which means they are shaping the future of real estate. They are having an impact on the industry through their growing influence on the market.
Here’s how the millennial generation is changing the real estate market:
<img src="https://assets.site-static.com/userfiles/3899/image/mill.jpg" width="800" height="3856" alt="5 Ways Millennials Are Changing The Real Estate Scene" title="5 Ways Millennials Are Changing The Real Estate Scene" />
1. They are tech-savvy researchers
More than any other generation, millennials prefer to approach the home buying process in a more digital fashion. The Zillow report further stated that the process of finding or selling a home is a much more collaborative process for them. They bring all available tools to the process, such as their smartphones, social media and online networks.
In the <a href="https://www.nar.realtor/sites/default/files/reports/2017/2017-real-estate-in-a-digital-age-03-10-2017.pdf" data-uw-styling-context="true" data-uw-pdf-br="2" data-uw-pdf-doc="">NAR Real Estate in a Digital Age 2017 Report</a>, a whopping 99 percent of Millennials searched on online websites while looking for a home, compared to the 89 percent of Older Boomers and only 77 percent of the Silent Generation. At least 58 percent of millennials also found the home they decided to purchase on their mobile devices. They also rely on online customer reviews more than any other generations.
As they technically live in a world that is ruled by technology, real estate investors, firms, and even real estate agents need to boost their online presence in order to attract more millennial buyers and sellers.
2. They are very comfortable trusting a realtor when purchasing their home
Despite being the most tech-savvy home buyers, millennials were the number one buying group to purchase their home from a realtor. They might have done their research first before stepping into homeownership, but they are still very comfortable in trusting the experts. At least 92 percent of millennials purchased their home through a realtor, and 74 percent said they wanted help in understanding the purchase process. They value the personal experience and insights that only a top real estate agent can provide. Millennials expect real estate agents to become trusted advisers and strategic partners. Likewise, it might also be related to the fact that their age group had more difficulty handling paperwork and understanding the process than any other generation.
3. They want specific must-have features in a home
As the real estate sector becomes more focused on millennials as home buyers, the market is also focusing on what millennials specifically want in their homes.
Millennials mostly want to buy newly-constructed homes, rather than fix-uppers, to avoid dealing with renovations and other plumbing and electricity problems. Likewise, they also have specific features that they want in a home they purchase. Some of the features they prefer include a spacious kitchen and an open floor plan, a dedicated workspace for those who are working from home, energy efficient appliances, updated kitchen and bath, and new technology and smart home systems.
A <a href="https://www.northshorefireplace.com/about-us/what-millennial-home-buyers-want/" data-uw-styling-context="true" data-uw-rm-brl="false">unique study</a> was also conducted by Northshore Fireplace in 2016 to know what millennial buyers are looking for in a home. The results have revealed millennials value these features most: new appliances, a large master bedroom, a 2-car garage, solar panels/energy storage, and a luxury kitchen.
Millennials are also most likely to choose a home that is located closer to their work, so they can save time and gas. At least 65 percent say convenient location to their job is the most important factor when choosing a neighborhood.
4. They are least likely to view homeownership as permanent
Only 11 percent of millennials said they view homeownership as permanent, compared to 37 percent of seniors and 29 percent of baby boomers. It was also revealed in the <a href="https://info.bankofamerica.com/homebuyers-report/" data-uw-styling-context="true" data-uw-rm-brl="false">Bank of America 2017 Homebuyers Insights Report</a> that 68 percent of millennial homeowners say their current home is only a stepping stone towards their dream home. They see the value in buying early but realize it may mean putting their dream home on hold for now. It also reflects the average of six years that millennials are keeping their home before selling, compared to 10 years for the rest of homebuyers. This trend can influence would-be buyers to purchase sooner.
5. They highly associate homeownership with the American Dream
This is probably one of the main reasons why they currently dominate the housing market. At least 65 percent of people aged 18-34 associated home ownership with the American Dream, more than any other age group. It is despite the fact that they wait longer to buy their first home compared to their older generations. Most of today's home buyers are also redefining the so-called “starter homes,” which is now as large as the median homes for “move-up buyers.”
2018-02-09T17:49:00-07:002022-03-27T16:50:49-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:71405 Uncontrollable Factors That Affect Home Prices
Since the housing crash in the late 2000's, the real estate market in the United States has regained its composure, which paved the way for low-interest rates and limited housing inventory. This may look ideal for sellers but a burden to homebuyers (and even renters!) because they have to face increasing housing prices, long searching periods, and bidding wars as they enter the increasingly competitive market.
Several complicated factors affect the price of properties, and some are unfortunately outside of our control. Still, it’s important to be aware of these things so that you can time your purchase correctly, or - if you’re selling - list your property at the right time.
<img src="https://assets.site-static.com/userfiles/3899/image/uncontrolable.jpg" width="800" height="2793" alt="5 Uncontrollable Factors That Affect Home Prices" title="5 Uncontrollable Factors That Affect Home Prices" />
1. The economy
The Great Recession that happened in 2008 to 21012 highlighted the connection between the macro economy and real estate. Real-estate related jobs such as construction and mortgage financing underwent significant property depreciation. Note that even other local macro-trends can influence housing prices. For instance, the income growth in California was at 1.2% in the first quarter of 2015 compared to the national average of 0.9%. This increases the spending power of buyers which in turn also increases real estate prices. The demand for housing is often considered income elastic (luxury good) which means rising incomes lead to a more significant percentage of income being spent on houses.
To sum it up, the state of the economy impacts the real estate market, as the consumers' ability to hold up to property prices depends on critical factors such as the GDP, income growth, manufacturing activity, and unemployment.
2. Interest rates
As interest rates rise, mortgage rates also increase, which consequently lowers the demand and price of real estate. The real estate crash of 2007 proved the global impact of the real estate market increased awareness of how interest rates and loans are used in home buying. If things aren’t looking good abroad, it might affect your ability to sell homes domestically. Be in the know on what’s happening in the global market and with foreign investment as these play large roles into the expectations of the local market as well.
3. Location
Properties within the proximity of establishments such as a slew of restaurants, parks, and schools, the price of houses are higher. In line with this are zoning restrictions which indirectly affect land value and directly impacts tax value. Do take note that local builder activity and local regulations in the area can dictate new home supply, and prices react to the abundance or the lack of supply of houses.
While properties remain where they are, what happens around them inevitably affects its value. The price of a house is not only dictated by what it is today, but also what it can be 5, 10, 20 years from now. New roads, schools, and other attractive infrastructure can affect the desirability of a location almost in an instant. However, even though no one can predict developments and declines with absolute certainty, a professional who knows the community in which a property is located will be able to provide valuable insight.
4. Investors
According to research by the National Association Realtors (NAR), the percentage of homes purchased by investment buyers stands at about 20% of the market. Investors are those that buy inexpensive properties to either renovate and sell for profit or put it up for rent. The housing crisis which increased the number of distressed properties (those that were foreclosed or were on short sale) made investors purchase more property. But if the number of such houses decreases, investors will want to liquidate some of their properties at some point. And if they do so untimely, this could result in too many homes hitting the market at once, which in turn could reduce the price of houses.
5. Neighborhood comparables
Comparable properties (also known as “comps”) sold in an area can also affect another home’s market value. Appraisers and real estate agents look at recent sales of homes with similar features to use as a standard against a home’s potential price. Foreclosures and short sales often complicate things because they tend to sell at lower prices, which decrease the neighborhood’s overall average sales price. Comps (along with offer details) are usually the key driver for the appraisal process, as most appraisers will rely heavily on recent nearby transactions on homes of similar sizes and features.
Remember, as with any other investment, there are a lot of factors in real estate that will be outside of your control. But staying informed about what’s happening in the market can help you make informed decisions that will allow you to maximize your returns.
2018-02-09T17:44:00-07:002022-03-27T16:46:36-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:71523 Easy Steps On How To Dispute Errors On Your Credit Report<img src="https://assets.site-static.com/userfiles/3899/image/credit_report.jpg" width="800" height="3569" alt="3 Easy Steps On How To Dispute Errors On Your Credit Report" title="3 Easy Steps On How To Dispute Errors On Your Credit Report" />
Why Your Credit Report is Important
Your credit report is the sole source of information for your credit score — a number that lenders sometimes use instead of or in addition to your credit report. A variety of businesses may also view your credit report to make decisions related to you. Banks check your credit report and use it to evaluate your applications for credit cards and loans, including a mortgage or auto loan.
Especially for homebuyers who plan to apply for a mortgage loan, you must have an idea of your status in terms of credit based on your credit score. For renters, even landlords may review your credit report to decide whether to rent you. Hence, your credit report affects many parts of your financial life, so it's important that the information included is accurate and positive.
Right To Dispute Errors
However, it's very common for credit reports to contain errors, and these occur for a number of reasons. Some of the information that could mistakenly end up on your credit report can be anything from inaccurate late payments, to even a falsely reported bankruptcy.
As of 2017, the Consumer Financial Protection Bureau (CFPB) had handled approximately 185,700 <a href="https://www.consumerfinance.gov/about-us/newsroom/cfpb-monthly-snapshot-spotlights-credit-reporting-complaints/" data-uw-styling-context="true" data-uw-rm-brl="false">credit reporting complaints</a>. Some of those submitted by consumers include problems disputing complaints on their credit reports, complaints about inaccurate information on credit reports, and reports of confusion about credit scoring.
The federal <a href="https://www.investopedia.com/terms/f/fair-credit-reporting-act-fcra.asp" data-uw-styling-context="true" data-uw-rm-brl="false">Fair Credit Reporting Act</a> gives you the right to an accurate and complete credit report. If you find any outdated, incomplete, or inaccurate information on your credit report, you have the right to dispute it and have it deleted or updated.
Steps On How To Dispute Inaccurate Information On Your Credit Report
1. Check and review your credit report for errors
The best way to find any inaccurate information on your credit report is to check a copy of it. There are several ways that you can get a copy. You can even get a free annual credit report from each bureau through the AnnualCreditReport.com, or order one directly from the bureau.
Once you have your credit reports, you should review all three of them to be sure that the information in each is complete and accurate, since you’ll never know which credit report will be used in a lending decision. Take some time to look through them and highlight the items to include in your credit report dispute.
Credit Report Errors You Can Dispute
You can dispute credit report items that are inaccurate, incomplete, out of date or that which cannot be verified. It can vary from minor and innocuous errors such as a misspelled name, an old address, birth date or your social security number. However, other errors could be detrimental to your credit score and could potentially cost you tens of thousands of dollars.
Negative items should only appear on your credit report for seven years, except bankruptcy, which can remain for ten. Thus, you can dispute any negative entries you have that are older than seven years. Other specific things you can dispute include but may not be limited to: payments reported late that were actually on time, accounts that aren’t yours, inaccurate credit limit/loan amount or account balance, inaccurate creditor, and inaccurate account status.
Options for Disputing Credit Report Information
With the credit bureau, the company responsible for compiling your credit report based on information received from your creditors. The three major credit bureaus are Equifax, Experian, and TransUnion.
Directly with the creditor or business who provided the information to the credit bureaus (also known as the information provider). You may do this when the credit bureau responds that the error you disputed was verified by the creditor.
2. Place your credit card dispute
Here are 3 ways to place your credit card dispute:
Online - Disputing credit report errors online is probably the most convenient way. You can <a href="https://www.thebalance.com/where-should-i-send-credit-report-disputes-960435" data-uw-styling-context="true" data-uw-rm-brl="false">dispute inaccurate information directly</a> on the credit bureau's website. Each credit bureau should provide a way to upload, fax, or email documentation supporting your dispute. You can also check the status of your dispute online by providing your confirmation number. However, you can only get the results online and not by mail.
Mail - Placing your dispute by mail takes more time, but it provides you with the paper trail you’d need if the credit bureau doesn’t respond in a timely manner. You must write a dispute letter explaining the information that should be removed and specify the reason for why it is inaccurate. Also, include a copy of proof of the error and other supporting documentation (not the original copies). Send the letter via certified mail with return receipt requested so you’ll have proof of when you made the dispute and when the creditor receives it.
Phone - To dispute by phone, you need to have ordered a copy of your credit report within the past month and also provide your credit report number. However, you’ll still have to mail in any documentation or proof that supports your dispute.
3. Wait for the response of the credit bureau or the creditor to your credit report dispute
Businesses and credit bureaus have the same amount of time to investigate a dispute — 30 to 45 days from the date they received it. Once the investigation is complete, the credit bureau should provide you with the results, along with a free copy of your credit report if there had been some changes. If they don’t respond in that time frame, you have the right to sue in Federal court for up to $1,000.
Bonus Tips:
Make sure your disputes are legitimate and that you provided enough information to investigate it. Be careful not to do anything to make the credit bureaus think your credit report disputes are frivolous. Don’t dispute everything on your credit report and don’t send all your disputes at once. Also, avoid disputing an item multiple times. The credit bureau or the creditor can determine that your dispute is frivolous or irrelevant if you don’t give them enough information to investigate the dispute. They also have every right to reject it.
Check your credit reports periodically. Financial advisors and consumer advocates suggest that you <a href="https://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports" data-uw-styling-context="true" data-uw-rm-brl="false">review your credit report periodically</a> to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. Likewise, when applying for a mortgage loan, improving your credit score will give you a better chance to get pre-approved, which is the first step in purchasing your dream home.
2018-01-19T18:25:00-07:002022-03-27T17:27:40-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7151We Are Excited to Launch Every Door Real Estate
Back in December, we quietly launched Every Door Real Estate. We didn’t want to overshadow the holidays, but now we are excited to share what Every Door Real Estate does differently.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We started Every Door Real Estate with the single purpose of simplifying the real estate process for all clients at every price point.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> For the most part, this is business as usual. We are the same group of talented, expert brokers with the same leadership team and same back office team to make sure that your transaction flows as seamlessly as possible.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We do have fewer constraints than we had previously. Our intention was to go out on our own because we do things differently in order to give our buyers and sellers a competitive edge in any market.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> One thing that makes us unique is our data-driven offer strategy. It’s not just about offering the most money for a home; there are ways to manipulate the numbers to give yourself a competitive edge. We leverage data to write a much more competitive offer, which means that at the end of the day, we help more buyers win homes.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We also have a collaborative home buying experience. You work with one agent who you communicate with all the time. That agent filters information through to the person in the back office in order to help them understand what you are looking for, your financial terms, and other unique information to help us better serve you.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We have a team of experts involved in every transaction, rather than just one agent trying to run the whole show.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We also spend more money, offer more services, and have exclusive resources for our clients.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Remember, thanks to the appreciation we have in our market, every month you sit on the sidelines is another month that you’re not building your wealth. Now is a great time to enter the market.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you are out on the market looking for a home or if you want to sell your home, give us a call. We would love to talk with you for about half an hour to see if we are a good fit for your real estate goals. We look forward to hearing from you!2018-01-19T18:24:00-07:002022-03-27T17:25:08-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:71685 Most Common Misconceptions About VA Loans
The <a href="https://www.benefits.va.gov/homeloans/purchaseco_eligibility.asp" data-uw-styling-context="true" data-uw-rm-brl="false">Veterans Affairs home loans</a> are unique mortgage options that allow current and former members of the military to own a piece of the American dream by potentially qualifying for homes that they might have thought to be out of reach.
Veterans, active-duty service personnel, and select Reservists or National Guard members are among those who can qualify for VA loans. These flexible loans come with outstanding benefits like no down payment, no mortgage insurance, more lenient credit requirements, and also have the lowest average interest rates on the market.
The National Association of Realtors (NAR) <a href="https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers" data-uw-styling-context="true" data-uw-rm-brl="false">2017 Profile of Home Buyers and Sellers</a> showed that 18 percent of recent home buyers are veterans, while three percent are active-duty service members.
However, misinformation and misconceptions about VA loans continue to hinder many veterans from actually benefiting from this program, which is a tangible way of showing gratitude towards their service to the people and the nation.
<img src="https://assets.site-static.com/userfiles/3899/image/valoan.jpg" width="800" height="1814" alt="5 Most Common Misconceptions About VA Loans" title="5 Most Common Misconceptions About VA Loans" />
#1 Misconception: It is a one-time benefit.
FACT: Getting a VA loan is a lifetime benefit.
Some veterans think that they must use the benefit immediately or lose it, or that if they used it once, they can't use it again. The reality is that it is a lifetime benefit. You can use it again to purchase another property, as long as you have paid off your previous VA loan.
#2 Misconception: VA loans take longer to close than FHA or conventional loans.
FACT: There's not much time difference when closing VA loans compared to any loans.
Many home buyers think that VA loans take more than 60 days to close, but it certainly isn't true. The process has become much more automated and efficient with the Guaranty Program, and it can now be closed in 30 days or less.
Similarly, the average VA mortgage closes in 45 days, according to mortgage industry analysts Ellie Mae. While the average closing time for all loans is 42 days, which only has a three-day difference.
#3 Misconception: The VA appraisal is quite a nightmare.
FACT: The VA appraisal isn't really different from the average conventional appraisal.
Unless the buyer pursues a home in a very poor condition, then the appraisal process could really be terrible. The truth is that only VA-approved appraisers inspect the homes to make sure they meet minimum property requirements, and to make sure that they are “safe, sound and sanitary.” VA appraisers also tend to <a href="https://www.veteransunited.com/valoans/understanding-the-vas-minimum-property-requirements/" data-uw-styling-context="true" data-uw-rm-brl="false">have stricter standards</a> than a typical home appraiser. Otherwise, if the service member chooses a home that is in good condition, then the VA appraisal will be a breeze.
#4 Misconception: You can’t get a VA loan if you’ve had a foreclosure or bankruptcy.
FACT: VA loans only require that there has not been a foreclosure or bankruptcy in the past two years.
VA loans are more lenient than other loan products when it comes to bankruptcy and foreclosure. In some cases, it is also possible to get a loan within a year. This is a much shorter period compared to what FHA loans and conventional mortgages require, which includes a 3-year waiting period.
#5 Misconception: Hiring any real estate agent will do.
FACT: An agent who's had experience working with military buyers can help you better navigate the process.
While any realtor can technically help you, finding a military-friendly real estate agent who particularly had experienced working with military buyers before — and have the time to focus on your needs — can make a world of difference. For many veterans, housing needs go far beyond the usual housing criteria, such as the number of bedrooms, price range and location. An agent who specializes in VA loans can help save you an awful lot of headaches as they better understand the loan process, the VA appraisal, and has a special eye and heart towards your specific situation.
2017-12-21T18:58:00-07:002022-03-27T18:00:11-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7169The Ultimate Renter's Move-In Checklist (And Other Questions To Ask)
Despite the many disadvantages of <a href="https://www.ylopo.com/blog/2017/12/5/to-rent-or-to-buy-top-things-you-should-know" data-uw-styling-context="true" data-uw-rm-brl="false">renting compared to buying one's own home</a>, many are still choosing the former because of increasing home prices and high mortgage payment and taxes. In the 2016 American Community Survey of the Census Bureau, nearly 37 percent of U.S. households are now renter-occupied. Certainly, more U.S. households are now renting that at any point in 50 years, since 1965.
However, there’s more to renting than finding your ideal apartment, signing the lease and exchanging the keys. Before moving in, you have to sort out the major issues, thoroughly check the rental property, and ask the necessary questions that will help your life as a tenant become peaceful and sustainable. One of the most important things a renter certainly needs is a move-in checklist.
The move-in checklist may be one of the basics, but it's still an essential document a tenant could have before moving in. “The move-in and move-out checklist is a convenient, all-inclusive and reliable way to document the property’s condition,” writes Joe Killinger for MultifamilyInsiders. “Residents can benefit from a move-in checklist because any existing conditions will be predated to his/her occupancy. This checklist helps the property manager by reducing liability risks due to disagreements related to security deposit reimbursement; thus, protecting the value of the property.”
Remember that each room of the property needs to be addressed and documented separately. It is advisable to take pictures and even videos of each part of the property as it will provide a timestamp of its condition before you move in.
<img src="https://assets.site-static.com/userfiles/3899/image/renters_move.jpg" width="800" height="2393" alt="The Ultimate Renter's Move-In Checklist (And Other Questions To Ask)" title="The Ultimate Renter's Move-In Checklist (And Other Questions To Ask)" />
The important things to check include:
Entire rental property - Closely inspect the flooring, air conditioners, wall fixtures, outlets, light fixtures, heaters, walls, and even paint.
Living Room and other rooms - Check the doors and its hinges, knobs and peephole, flooring, cabinets and drawers.
Kitchen - Care to check the condition of all the appliances, including oven, fridge, dishwasher and others. Examine the counters and sink, and even cabinets and drawers. Be vigilant for any water damage and leaks and make sure it's inspected and repaired before moving in.
Bathroom - This is where we pamper ourselves, so make sure to inspect the toilet, tub and shower for any hidden damages or water leaks.
Safety items - Ensure that the apartment has working smoke alarms. It is the landlord's responsibility to repair any damage to the alarms or replace the batteries if they're running low. It is also important to check if the fire extinguishers are unused and if they are located in areas that are easy to access.
Repairs - Have a comprehensive list of people to call for urgent repairs, and take note of the restrictions when it comes to doing the repairs yourself, including minor replacements.
Aside from inspecting the physical condition of the rental property, knowing the right questions to ask before moving in is very important. These may include other living essentials such as:
Garbage pickup - Never forget to ask where the trash goes, how often is the garbage collection in your area, as well as the rules on packing and segregation.
Laundry - Keep in mind the operating hours for your building's laundry room or the washer and dryer area.
Parking - Ask whether the parking spaces are open to all residents or assigned to each tenant.
Security deposit - You should know the full requirements for your security deposit, how it will be collected and refunded, and the amount required depending on your lease. In California for example, a landlord may charge a renter the equivalent of two months' rent for the security deposit if the residence is unfurnished, and three months' rent if the residence is furnished, under the state's landlord-tenant laws.
Bonus Tips:
Real estate review websites such as Zillow even have their <a href="https://www.zillow.com/rental-manager/resources/move-in-out-checklist/" data-uw-styling-context="true" data-uw-rm-brl="false">own rental checklist</a> you can print out to help you document the condition of every part of your rental property.
Know your rights and responsibilities as a tenant - Each state has their own rental laws or tenants’ rights, laws and protection, and some may be more robust than the others. Knowing your state’s rental laws will help you have a mutual relationship with your landlord. Brian Sullivan, a spokesman for the U.S. Department of Housing and Urban Development, also suggests for renters to check their local tenant help center.
Nevertheless, when you become tired of renting due to increasing rates, non-refundable deposits, or even just dealing with your landlord every now and then, one way to protect yourself is to lock in your housing expense and buy a home instead. When you're decided and ready, you may seek help from a licensed real estate agent who can give you sound advice about the home buying process.
2017-12-19T19:00:00-07:002022-03-27T18:02:41-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7173To Rent Or To Buy: Top Things You Should Know
Buying your own home seems like the fulfillment of the American dream, but as housing prices are increasing, we all know that that dream will definitely cost you a hefty amount. According<a href="http://economistsoutlook.blogs.realtor.org/2017/10/17/august-2017-housing-affordability-index/" data-uw-styling-context="true" data-uw-rm-brl="false"> to an article on Economists' Outlook</a>, the median price of homes for a single-family home sold in August 2017 is $255,500, which is a 5.6% spike from last year. Many people would resort to renting, but is that move really cheaper than buying a house?
Let’s first weigh the pros and cons of buying a house and renting one.
<img src="https://assets.site-static.com/userfiles/3899/image/renting_buying.jpg" width="800" height="2834" alt="To Rent Or To Buy: Top Things You Should Know" title="To Rent Or To Buy: Top Things You Should Know" />
Take note that renting prices have also gone up and buying a house would generally be cheaper than renting in states belonging to the Northeast, South, and Midwest regions. But it's good to remember that there are multiple factors to consider other than just price.
2017-12-05T19:09:00-07:002022-03-27T18:11:16-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7177Why Are Home Inspections So Important?
Home inspections are an important part of every real estate transaction. Today, we want to give you a little more insight into how the inspection fits into the home buying process.
A home inspection helps the buyer understand the condition of the home and its systems. The inspection will reveal where those systems are at in their lifecycle and identify any items that will cost you money to repair or replace in the short and long run.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Inspections are generally done with a professional, licensed inspector. The cost varies from $250 to $600 depending on the size and value of the home.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> A critical factor in every winning offer is when you should actually do the inspection. In a market like Seattle's, homes have review dates within 10 days of hitting the market. As a result, we recommend that you pre-inspect the home, especially if you are serious about winning the home in a multiple-offer situation.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> By ordering an inspection before you make an offer, you remove the inspection contingency and make your offer more appealing to the seller. You will also know what you are getting into because you know what the cost and condition of that home is, and you can make your offer based on that information.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> There are some instances where a home does not have a review date. To save yourself some money, wait until you are under contract on a home to do the inspection. Give yourself a five to 10-day window to perform that inspection. From there, you will decide which repairs you need to ask for.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> We do not recommend waiving the inspection. There are cases when buyers try to do that. It’s really a risk-assessment decision for that buyer. You need to understand what the worst case scenario is.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you waive the inspection, you won’t know much about the house going into the purchase, so your offer price will not be dependent on your knowledge about the house. If something pops up after you buy the home, then it’s up to you to repair the problem.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> A lot of times, people choose to waive the inspection because they do not want to pay for an inspection. It is actually much more costly to waive an inspection and then find something wrong with the house than it is to pay a couple hundred dollars for the inspection in the first place.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> Hopefully, you now have a better idea of how important home inspections are.<br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> <br data-uw-styling-context="true" role="presentation" data-uw-rm-sr="" /> If you have any more questions or would like more information about our current market, just give us a call or send us an email. We would be happy to help you!2017-11-27T19:17:00-07:002022-03-27T18:18:46-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7178The Top 5 Realtor Review Websites That Most Successful Agents Use
As much as personal recommendations from friends and family are revered when it comes to real estate recommendations, people nowadays turn to the Internet for reviews including real estate agent prospects. Consumers have become more critical, and they want to get as much bang for their buck, so that means getting a good review on your service will upgrade your chances of scoring clients. Here's a list of websites you can use:
<img src="https://assets.site-static.com/userfiles/3899/image/website.jpg" width="800" height="1273" alt="The Top 5 Realtor Review Websites That Most Successful Agents Use" title="The Top 5 Realtor Review Websites That Most Successful Agents Use" />
<a href="https://www.zillow.com/" target="_blank" data-uw-styling-context="true" data-uw-rm-brl="false" aria-label="Zillow - opens in new tab (opens in new tab)" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.zillow.com/$zillow" alt=" (opens in new tab)" title=" (opens in new tab)">Zillow</a> is specifically made for real estate agents, and you get to have separate star ratings for several aspects like your negotiation skills, process expertise, local knowledge and responsiveness. Take note that the site gets a whooping 124 million visits per month! If you take this into account, it's safe to say that getting your share of leads through this site will be high. Included in the Zillow group websites that advertise realtors are Trulia and StreetEasy.
Why it's good for you: The site has a feature that lets you be a Zillow Premiere Agent through which you can promote your listings, generate buyer and sellers leads, and even advertise on Facebook. This comes with a fee, but it gives you the benefit of exclusivity – you’re the only agent promoted on the page when you submit your listing, as opposed to not getting signed up as a Zillow Premiere Agent wherein other agents will appear on your listing – and wider reach, because even if you don’t have a listing of your own yet, you get to advertise on the local listings by non-Zillow Premiere Agents.
What to watch out for: If you ask your clients to give a review, they would have to make an account in Zillow which might prove to be a hassle. Also, they do not have a clear description of how they filter reviews so it is likely that you might get a bogus review for your work. Another problem that clients encountered with Zillow is that home prices listed on the website are not always accurate.
<a href="https://www.yelp.com/" target="_blank" data-uw-styling-context="true" data-uw-rm-brl="false" aria-label="Yelp - opens in new tab (opens in new tab)" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.yelp.com/$yelp" alt=" (opens in new tab)" title=" (opens in new tab)">Yelp</a> is a broad review platform which allows its users to give their take on restaurants, schools, and even realtors. The site has been around for a while, and it's been re-designed as a social networking site where reviewers can connect with fellow reviewers.
Why it's good for you: Yelp is easy to use and navigate; you won’t need to stress over learning how to use a specialized website. Another great aspect of the site is that they try to ensure the integrity of their reviews through screening it first before posting it. It filters the bogus reviewers, and if one does come up in your page, you can request to have the review moved.
What to watch out for: The robot that they’ve created for the website to filter reviews works on its downside too – their faulty algorithm could have half of legitimate and helpful reviews buried.
Trulia helps its users not only find their home but it also helps them find real estate professionals such as brokers, agents, mortgage brokers and lenders, appraisers, and property managers through its extensive agent directory.
Why it's good for you: Now that it’s owned by Zillow, you can have a wider reach. It also allows you to send a client listing report so that your clients can know how you’re featuring their home on Trulia.
What to watch out for: There were complaints by realtors mentioning how Trulia promised them with leads from zip codes where the housing market was “hot,” but the site failed to deliver them this promise even after they have purchased leads.
<a href="https://www.realtor.com/" target="_blank" data-uw-styling-context="true" data-uw-rm-brl="false" aria-label="Realtor - opens in new tab (opens in new tab)" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.realtor.com/$realtor" alt=" (opens in new tab)" title=" (opens in new tab)">Realtor</a> a site dedicated to real estate which enables their users to look for listings, to know details about mortgage, and to find realtors.
Why it's good for you: Realtor.com has real estate articles popping out of google searches for when someone wants to know more about buying and selling property. And they almost always have a link on those articles leading to finding a realtor on their website. They also have rating categories for real estate agent’s attributes such as market expertise, communication, professionalism, negotiation skills, and responsiveness.
What to watch out for: Some buyers may veer away from properties posted on this site because of the lack of information that could be featured on the site such as crime rates within the area. They also don’t feature photos of the property as much as other websites do.
You can say that <a href="https://www.facebook.com/" target="_blank" data-uw-styling-context="true" data-uw-rm-brl="false" aria-label="Facebook - opens in new tab (opens in new tab)" data-uw-rm-ext-link="" uw-rm-external-link-id="https://www.facebook.com/$facebook" alt=" (opens in new tab)" title=" (opens in new tab)">Facebook</a> is oversaturated with all sorts of things, or that it can distract people away from your property. This is true to some extent, but it's also the first thing people check when they open their phones so the market is assuredly big.
Why it's good for you: You can make your page as easily as you can have it noticed since everyone is on Facebook. You can pay to have your page advertised (it’s actually cheaper than you think!) or you can opt to have your friends and family share your page and have you easily connected to a web of people who could be potential clients.
What to watch out for: If you do use Facebook as a website for getting clients, it’s advisable to have other websites in tow – specifically websites which are mainly used for selling property - since Facebook may cause limitations in terms of presenting the full range of what realtors have to offer.
2017-11-20T19:19:00-07:002022-03-27T18:21:14-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7181What is the True Value of a Brokerage?
The other day while we were wrapping up on a listing presentation, the seller told us they were considering switching to another brokerage whose signs they often saw around the neighborhood.
Because I understand the true value of a brokerage, this made me laugh. A brokerage is not consumer-facing value.
A brokerage’s value comes from having a place to hang your license and somewhere to receive training. Its value also comes from having people you can ask questions of.
However, I’ve never had a buyer come to me and say that they aren’t going to buy an otherwise perfect house simply because of the brokerage it’s listed with.
When listing and selling your home, individual agents and teams are what will truly matter. The right agent or team will know that listing your home all starts with price. Pricing is an analytical decision which is determined by market statistics.
Here at the Search in Seattle Team, we know how to help you make these decisions with no emotional attachment. Once pricing is sorted out, the next matter is putting the right buyers in front of the home.
The average team will spend about $400 a month on marketing. Our team, however, spends a tremendous amount on this. It is a priority to us that your listing is being put forward to the right people.
The last steps in effectively getting a home sold are negotiation and processing. The right agent will be able to guide you through maximizing an offer’s potential to get you top dollar. Additionally, they should assist you in closing out the deal as efficiently as possible.
Ultimately, finding the right agent has much more of an impact on selling a home than a brokerage. Be sure to interview several people before you make your final decision.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.2017-09-12T18:27:00-07:002022-03-27T18:28:44-07:00Lindsey Gudgertag:everydoorrealestate.com,2012-09-20:7189Your 'Aunt Sally' May Not Be the Best Person for the Job
If you choose to hire a friend or family member to assist you in a real estate transaction, you might be making a huge mistake.
Many of you out there have friends and family members with real estate licenses. However, just because someone is licensed doesn’t mean that they are the best person for you to work with. At the very least, you should interview several different agents and find out about their business. Buying a home, especially, is a huge decision and working with the right person could save you thousands. It could also get you thousands more on your home sale.
This doesn’t mean that everyone you know who is an agent is bad at their job. They may be the perfect fit. Either way, doing your research is important. As a buyer, you can make every mistake in the book—from overpaying to writing a bad offer. A good agent helps protect you from this. As a seller, your home can get under-marketed and priced incorrectly, causing it to sit on the market for longer than it should.
Thinking about it this way. If you had $100,000 to invest, are you going to go down the street and invest in someone who hasn’t proven themselves? No. You’ll go with someone who has a track record of succeeding in the business.
If you have any questions for us, don’t hesitate to give us a call or send us an email. I look forward to hearing from you.2017-08-17T21:57:00-07:002022-03-27T21:59:00-07:00Lindsey Gudger