Money isn’t everything!
Even before I entered real estate I've often said there are few things more depressing than house hunting. Oftentimes it's so hard to find the one that's right for you and there are many times when you honestly believe you're never going to find the right house. But all it takes is one house – the house – and all those lows are forgotten and you're feeling euphoric.
In today's market buyers are getting beaten up but it's important to stay positive. With many properties receiving multiple offers, they are doing all that they can to make sure their offer is the winning offer. This means doing pre-inspections (where sellers allow), waiving contingencies for financing and inspection – both are risky but that's the reality. Many buyers are thousands of dollars down having paid for pre-inspections on multiple properties and they've got nothing but a bunch of rejected offers to show for it. They are getting knocked down many times – and every time it's harder and harder to get back up.
Here's where buyers and their agents need to get creative. Many buyers, and sadly some agents, believe it's all about the price. That's not always so. To a degree money talks, but every seller has different motivations – and as a buyer's agent it's my job to discover these motivations on behalf of my client.
Before I write up any offer, I make it my job to have a lengthy conversation with the listing agent – ideally in person, but if that's not possible over the phone. There's one question I always ask: "what does the seller really want or need in an offer? What would make my client win this house? Perhaps you're surprised to hear that money is rarely the answer.
Some sellers need more time to find somewhere to move to so a rent back period or a longer closing window is often more appealing than an extra $5,000 in a escalation clause.
Others need money now, so turning earnest money into a non-refundable deposit can sway in the buyer's favor. Don't get me wrong, this should not be offered lightly but if a buyer is confident about their financing, and an inspection clause is in place it can work.
Many sellers are downsizing and have furniture to sell which is time consuming and rarely worth the effort for the financial return. Consider offering to buy some of that furniture, or including a clause that states seller can leave anything in the house and buyer will remove it after closing. At worst you'll be a couple of hundreds bucks down. Or you might need to hire a truck and make a trip to the dump and do the move out clean yourself. But you may also see some good furniture left behind. Also remember, these could be things your agent is willing to pay for. Removal of furniture and a move out clean are certainly costs I would cover for some of my buyers.
These are just three examples, there a many more. The trick is to get creative. My advice to buyers is to find an agent who's prepared to do more for you, and can think outside of the box. It will pay off and you will find the perfect house.
Stay positive!
Safety in a Glympse
As a female realtor, safety is one of my top concerns – in fact it is my number one priority. When you think about it at at a very rudimentary level realtors do many things on a weekly basis that our parents told us never to do. Don't let a stranger into your home. Don't offer rides to people you don't know. Yet a huge element of real estate is hosting open houses and showing homes to your clients – both of which technically involve letting strangers into your home, or at least the home you're responsible for that 2-3 hour window, and driving relative strangers around from house to house on the days that we're showing properties.
There are many tricks and tools we use to protect ourselves, vet our clients and ensure we're in control of the situation at all times. And I'm grateful that today technology can play a role in our safety. I recently discovered two great apps that almost every women should know about – not just realtors.
The first is GLYMPSE. It's a fast, free and simple way to share your location. Send a Glympse to your selected contacts to let them know where you are. Request a Glympse from a friend who's running late. It's easier and faster than a phone call or a text message, works across mobiles, tablets or a desktop. Once you've downloaded the app, you can send a Glympse to anyone in your contacts – no software is required at their end to receive. When I host open houses, I always ensure my husband knows where I am, and what time to expect me home. Sending him a Glympse is a lot more convenient than remembering to write it on a Post-It and stick it to the fridge. Download it at www.glympse.com
React Mobile is a safety app that turns your smartphone into a lifeline. With GPS and tracking capabilities you can alert your selected contacts to your whereabouts with just one click. It features three different alert capabilities – 'I'm Fine' giving everyone piece of mind, 'Follow Me' allowing your network to literally track your whereabouts, or 'Help Me' which will trigger a call to 911. You can use the app via your smartphone, or buy the Sidekick device for those times that taking a phone is not practical. Learn more at www.reactmobile.com
Be safe my friends!
And the [credit] scores on the doors are…
Chances are if you own a house, or are buying a house, you have or need a mortgage. And kudos to you if you don't! If you're seeking a mortgage, the first thing a lender will do is pull your credit score. And the higher your score, the more investors and lower interest rates you'll have access to.
FICO credit scores range between 350 and 850, with 850 being the very best score you can get. If you have a score of 680 or below, there's work to be done to bringthis up above700 — and if you’re score is even lower than that, you might be feeling hopeless.
Here are some key points about what makes up your FICO credit score:
- 35% is based on your payment history for all accounts
- 30% is based on the amount you owe, especially revolving accounts
- 15% is based on how long you've been using credit
- 10% is based on your applications for new credit
- 10% is based on types of credit used
The good news is that if you have a lower-than-you'd-like credit score there are some things you can do to improve this. The even better news is that some of these simple steps can boost your score by as much as 40-50. That's enough to open the gates to many more investors and a far lower rate of interest.
How to improve your credit score:
- Pay active past due accounts to a current status
- Pay down outstanding revloving debt as close to zero as possible. If you are unable to pay off accounts completely, them pay them below 30% of the credit limit
- Request deletion letters for any derogatory information that does not belong to you
- Don't be in a hurry to close existing accounts. This may affect the length of credit history and lower the credit score
- Do not open numerous accounts prior to loan funding
There are many urban myths about how you can hurt, vs improve your credit score. Here are 7 myths that will not lower your credit score – http://www.gobankingrates.com/personal-finance/7-credit-myths-thought-could-hurt-score-but-dont/
Top 5 tips to boosting your curb appeal
Whether you're looking to list your property, or are just demonstrating pride in your home, here are a few quick and affordable ways to immediately boost your curb appeal. Yes, appearances can be deceptive and I'd be the first to say you shouldn't judge a book by it's cover, but sadly appearances do matter and first impressions count – a lot!
- Pressure wash your driveway and patio. It's an afternoon well spent. A well swept driveway looks good, but a pressure washed driveway looks better. You'd be surprised at the difference it makes. Unless you've already got a pressure washer, I'd advise again buying one – a high quality one that will do the job properly can easy cost $300+, so you have to do a lot of pressure washing for it to deliver a return on investment. Instead, there's plenty of places you can rent one at a fraction of the cost. Make sure you get one that's at least 2500 PSI (pounds per square inch if you're interested!), – 3000 or 35000 PSI would be better. In my experience the likes of Lowes or Home Depot rarely have the high powered ones. Instead I'd recommend a specialist tool rental shop. R&R Rentals is a good one, and I even saw Sherwin Williams are now renting them. A 4-rental should be more than adequate to do a 3 car driveway and a small rear patio. Learn from my mistakes and have some additional gas at the ready. There's nothing more frustrating than running out of gas before the job is done, particularly if you're on a 4 hour rental window.
- Give your front porch a quick makeover. Sweep away the cobwebs. Polish the hardware and the kick plate. If you've got brass hardware, consider switching to brushed nickel or stainless steel – it instantly gives a more modern look. If you don't have a kickplate, consider getting handy with a can of spray paint and spray your hardware black. Against the right color door it can look amazing. And a new lick of paint on the front door and trim will go a long way – but be sure to chose a color that coordinates with the rest of the house.
- Throw down a new layer of topsoil or bark. It transforms the look of your landscaping.
- Add some color by planting some seasonal annuals. Petunias, lobelia, coleus all look great and are very cheap to buy. A couple of well planted pots flanking a porch or front door give an inviting feel
- Clean your windows and gutters. Crystal clear windows and clear gutters give the impression that the home has been well cared for. Trust me, buyers will notice your gutters as they look outside from an upstairs window and even if they love the house and are considering making an offer, clogged gutters will plant ideas in their head that the inspection will raise some issues – and therefore an opportunity for them to get the price lowered.
Flip or Flop: A glimpse into the not so secret lives of Tarek and Christina
One of the many reasons I went into real estate is because one day I dream of flipping a couple of houses. So it's hardly suprising that I'm a sucker for any home renovation/house hunter type shows and Flip or Flop, staring real estate agent duo Tarek or Christina is one of my favorites. I normally get my HGTV fix at the gym and an hour on the treadmill goes by so fast while watching these two in their latest real estate endeavours. And they seem like a genuinely nice couple.
Thanks to Popsugar.com, here's 18 things you didn't know about them. http://www.popsugar.com/home/Flip-Flop-Tarek-Christina-El-Moussa-Facts-37418556?stream_view=1#photo-4