How Big Should Your Down Payment Be?

Deciding how much you want to put down on a home is a tough choice. There are advantages to large and small down payments.

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Should you put down as much money possible on your next home purchase, or should you put the minimum amount down? This is a tough question to answer and there are benefits to both strategies. Here are the arguments for each of them.

Let’s say you have the money on hand to put 20% down on your home purchase. If you do that, you won’t have to pay the private mortgage insurance that you will have to pay if you put less than 20% down. Hitting that 20% mark will also ensure that you get the best mortgage interest rate possible.

If you simply can’t afford a high down payment and instead choose to put down 3% or 3.5%, you’re going to get a better rate of return on the money you’re investing. You are also able to take that money that you don’t use on the down payment and invest it in another vehicle. One thing I know for sure is that you shouldn’t clean out your savings to buy a home. You always want to have a backup plan.

Don't blow your savings on a down payment!

When you’re thinking about buying a home, you need to sit down with a mortgage professional who will ask you the important questions that will determine what kind of loan you qualify for, the mortgage rate you’ll receive, and what your monthly payment should be.

If you need a recommendation for a great lender, we’d be happy to provide you with one. If you have any other questions about buying or selling a home in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

A Few Tips for Buying a New Construction Home

What happens during the new construction process? Today, we have a few tips and tricks to help you buy a new home.

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Buying a new construction home is a little different than buying a resale home. You need to think it through before you get started. Today, I have a few tips and tricks to help you through this process.

First of all, you need a real estate agent that is going to represent you. When you visit a new construction site, the folks that are there are very helpful and informative. However, they represent the builder’s best interests, not yours. We want to look out for your best interests. You need an agent working specifically for you.

When you do buy a new construction home, the builder probably won’t give you much of a concession on the price. You will probably have to pay full price. However, there are other opportunities for concessions. The builder may pay some closing costs or include some appliances and upgrades.

It is important to keep home values the same in those neighborhoods, which is why you won’t get much wiggle room on the price of the home. However, your real estate agent can help you find other opportunities for concessions.

You will probably need to use a builder sales contract form. Don’t be thrown by that. Unfortunately, those are written for the builder’s advantage. Builders do not use the standard form that we agents use.

You should make sure that you ask about the builder's warranty. How long does it last? What does it cover? Make sure you get that information in writing.

Make sure that you keep track of any changes in writing.

If you are visiting a model home, keep in mind that what’s in the model home may not be in your own. Find out which items are different from the model home and get that information in writing as well.

You should also keep a written list of all of the changes and change orders along the way. You will be asked to pay for those, so you’ll want to know exactly what the cost was and when the work got done. Keep those change orders together.

Finally, make sure that you get your own independent home inspection on the property. Since it's new, you may think that you don’t need an inspection. However, people aren’t perfect, and sometimes things don’t get completed correctly. It’s always good to have a fresh set of eyes and get your own home inspection.

We have even more tips to help you buy a new construction home. If you would like the full list, just give us a call or send us an email. We can definitely send that to you. Be sure to reach out with any questions you might have, as well. We would be happy to help.

Do You Have a Problem With Your Foundation?

How can you tell if your home has foundation issues? Here are a few telltale signs.

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Today I’d like to discuss several telltale signs that you have foundation issues in your home. The diagnosis is the easy part. Here are some things you should be keeping an eye out for in your home that point to foundation problems:

4 signs you have foundation problems.

1. Warped or sloped flooring. I’ve been in houses before where you can put a marble on the floor in the middle of a room and all of a sudden it will start rolling towards one side. That’s not good. No home is perfectly level, but if there is a noticeable slope or cracked tiles, you might want to get it checked out.

2. Door frame gaps. If you have a door that just doesn’t close quite right or appears to be hanging at an angle, that may signal you have foundation issues. Many times you will see wall and ceiling cracks around the area.

3. Gaps between the wall and the floor. We see this a lot on front porches. The floor starts to sink down away from the actual house. All sorts of critters and creatures can get in those gaps and make your foundation their home.

4. Cracks in the brick or veneer outside. Keep an eye out for cracked steps as well.

Now that I've worried you half to death, what can you do about these kinds of problems? Depending on the severity of your case, I would recommend calling a certified structural engineer. It’s your best option, especially if you’re thinking about selling a home in the near future. They can give you some advice on how to fix it or how to disclose the problem to a potential buyer. If you need a recommendation, we work with a lot of fantastic engineers that we’d be happy to refer you to.

If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

We've Got an Opportunity for Agents Looking to Grow

Are you looking to make a career move and grow your business? If so, we’ve got a great opportunity for you.

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Today, I’m excited to let you know that my team and I have an opportunity for you.

If you’ve been in real estate sales for any amount of time at all, you’ve probably come to understand the value of coaching, training, and teaching. If you haven’t taken advantage of these resources, your career might be in a little bit of a slump.

We want to help one or two agents who are in such a position. We’re looking for folks who want to double their business and grow to the next level.

Coaching, training, and teaching are all things my team does well, so we are more than capable of helping our team members grow in their business.

If you or someone you know would be interested in making a career move, we’d love to talk.

We are always working hard to find ways to help our team members grow.

You can get in touch by phone or email. To expedite the process, it would be very helpful if you could also send a resume along when you reach out.

We are always working hard to find ways to help our team members grow, so we hope you’ll take advantage of this opportunity.

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.

Shocking Things a Home Inspector Won't Look At

When you have a home inspection done, there are several items that either won’t be looked at closely or won’t be examined at all. Some of the features on this list may shock you.

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When people think about the process of a home inspection, they often assume that absolutely everything will be examined and uncovered. However, this isn’t actually the case. There are certain things a home inspector won’t, or can’t, do.

Today, I’d like to go over some of the most shocking things that home inspectors don’t look at.

First of all, if you are concerned about mold, radon, or asbestos, you must be aware that these are separate reports. These inspections are not included in a general home inspection, but can be added onto one at your request.

The reason these inspections aren’t included to begin with is that they must be performed by specialists and will require some lab work.

But, these aren’t the only things a home inspector won’t be looking at. Inspectors will also skip over certain electrical outlets, like those that are hidden behind heavy furniture. Any obscured electrical outlets will not be checked out.

Surprisingly, the roof is another item that won’t be looked over in a lot of detail. Some inspectors will use a drone to look at the roof. Whether they do or not, they aren’t going to be able to notice every little feature.

If you are concerned about a roof, you can hire a roof inspector to perform that additional service for you. A roof inspector will walk on the roof and examine it in great detail.

Two more items that inspectors will glance at, but not give a full examination, are the fireplace and chimney. The same will go for heating and air units.

While these sort of things will be looked over, it’s a good idea to have an additional inspection performed by someone who is a professional regarding these specific features.

Also, while it may sound a little silly, remember that an inspector isn’t going to look at the ground beneath your home. This may not seem important, but the placement of your home could actually have a big impact on how susceptible it may be to flooding.

Most inspectors also won’t check swimming pools. This is another inspection that can be handled separately.

And speaking of features in the ground, the last thing I want to mention is the septic or sewer system. Inspectors will make sure that everything is working, but they won’t flush it out or send down a camera. Again, this feature can be further examined with an additional inspection.

Your home inspector can’t see every last thing.

The bottom line is this: Your home inspector can’t see every last thing. If you have concerns about any of the specific items I mentioned today, you should have additional inspections performed by specialized professionals.

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.

What Not to Do When Buying a Home

Today I want to go over some of the things you should absolutely avoid doing when buying a home. Certain mistakes could cause the whole transaction to fall through.

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Today I want to go over some of the things you should absolutely avoid doing when buying a home.

Even though your loan may be initially approved, this doesn’t mean you are out of the woods just yet. I personally saw a couple of different buyers lose out on houses as a result of this.

While you’re in the process of buying a home, don’t make any changes. There are so many things that will be considered when you are being pre-qualified. It is critical that you wait until after the deal is done and over before you make any major changes that could affect your approval.

Wait until after the deal is done and over before you make any major changes.

For example: don’t quit your job. You need to stay put during the home loan process. Even moving up in a job should be put off until after closing.

Also, don’t go out and spend a lot. Buying a new home is exciting, but expensive purchases can cause you not to qualify for your loan. Charging things like a new car or a ton of furniture can greatly impact you. It’s better just to wait.

The next tip I have may sound a little weird, but it’s important that you don’t pay anything off. Paying off a credit card can actually be a detriment in the home loan process because it will change your ratios. Taking away a credit card can actually make your score go down. Even though it will recover in the future, the initial impact is going to spell trouble.

One of the key things to remember is to not do anything to change your credit while you’re waiting for closing. Also, don’t move large amounts of money around between accounts. Suddenly moving massive sums from one place to another can raise some questions.

If you have any other questions, would like more information, or want to hear the full list of things you should avoid while buying a house, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Special Tips for First-Time Homebuyers

If you’re looking at buying a home for the first time, there are some important things you should do and a few things you should avoid.

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If you are buying a home in today’s market, it’s a tough time. We’ve got some special tips for you today, which will be especially good for first-time homebuyers.

First, just know up front that you’re going to have to compete for that home, and your offer may get rejected. Don’t think that just because you’ve made an offer, you’re going to get that house. Unfortunately, there’s a lot of competition—many houses we’ve seen have had 10 to 20 offers on them.

Don’t think that just because you’ve made an offer you’re going to get that house.

Second, you need to be sure that you have your finances in order. Don’t make an offer on a home without being pre-approved, not pre-qualified. Have your pre-approval letter in hand.

A lot of buyers will go to open houses to look at the properties and make a common mistake. They get really excited and tell everyone they know about how much they love the house. My advice is to play it cool; don’t let people know that you’re thinking of making an offer, because, sure as the world, if you want it, someone else does too. Be calm and low-key during an open house, and don’t let everyone know what you’re thinking.

Once you get your offer accepted, lay low during that process. Don’t make any major purchases, quit your job, or do anything that could affect your qualification. We’ve seen many deals fall apart because someone could not qualify.

So if you’re a buyer in today’s market, you need a buyer’s specialist working for you, looking out for you, and taking care of you.

I’m so proud of the buyer’s specialists on the Charlotte Mabry Team. These folks help their clients get the offer in place, get the best offer they can, and win out. We know a lot of great tricks that can help your offer be the offer that is accepted.

If you want that information or have any other questions,  you can call our team or send me an email. Have a great day!

How to Sell Your Home—Agent Secrets Revealed

Real estate agents use industry secrets to sell homes, but I want to share those secrets with you today!

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There are some secret tricks of the trade that most real estate agents don’t want you to know about. However, I think you should have this important information.

First of all, staging is incredibly important. Staging also changes from season to season. The stagers that we use for our clients know how to position items and use furniture as it applies to the season. For example, in the summer, stagers recommend smaller pieces of furniture to make the home seem more open, light, and cool.

Another secret home selling tool is fresh cut grass. Believe it or not, you should cut your grass every time your house has a showing. Studies have shown that fresh cut grass it a subtle way to help sell your home. Buyers enjoy the look and smell of a freshly mowed yard.

Your pricing strategy is incredibly important as well. If you want to put your home out there at just above or below a price range break, it’s important to consider which option is best. For example, if your home is worth $300,000, you may want to price it at $305,000 or $299,999. Both of those numbers will work completely differently in the market. You need to work with an agent who understands that and can guide you to the right pricing strategy.

There can actually be a bad time to put your home on the market.

There can actually be a bad time to put your house on the market. The week that school lets out or the week school starts back up both tend to be very slow, which is understandable. After all, people are worried about getting kids in and out of school. If you list your home during one of those weeks, you’ll lose some momentum, as there won’t be many people looking at your home when it first comes on the market.

Not everyone knows about that little trick, so we make sure to watch out for that when working with our clients.

If there is a bad time to put your house on the market, is there a perfect month to list your home? Although anytime is a great time to put your home on the market, June is technically the best month to list your home.

Hopefully, these home selling secrets will help you succeed no matter when you decide to list your home.

If you have any other questions about putting your home on the market, just give me a call or send me an email. I would be happy to help you!

Why FSBO Is a Bad Idea in Today's Market

Thinking of selling your home as a For Sale By Owner? I wouldn’t.

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Being a For Sale By Owner is a terrible idea in today’s market. You could potentially underprice your home, and leave money on the table. Many people think that selling their home by themselves will save them money, but when they underprice their home they’re actually losing out.

You also open yourself up to scams when you aren’t being represented by a professional Realtor. Furthermore, the liability is all on you as a seller. If you don’t have a Realtor helping you with all the required paperwork, you could potentially miss something or not fill something out correctly and end up being penalized for it.

FSBO homes typically get less money and spend more time on the market. That is something that we see time and time again. If you use a Realtor, you’re going to get more money in less time, even though you’re paying a commission.

FSBO homes typically get less money, and spend more time on the market.

The biggest struggle that FSBO’s have right now is that they aren’t seeing multiple offers that other properties are getting. You may be excited to sell your home, but what could you have made if you were getting those multiple offers? It’s important to get yourself set up to received multiple offers on your home, and the best way to do that is work with a Realtor.

If you’re thinking of selling your home, we have all sorts of tips and advice that we would like to share with you. If you have any additional questions or you want to talk to us about selling your home, give me a call or send me an email. I would be happy to help!

What Does an ISA Do?

What is an inside sales agent (ISA) and what do they do? How do they help homebuyers and sellers?

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What is an inside sales agent and what in the world do they do?

Today, our ISA Chris Dover is here to explain why his job is an important part of a real estate team.

We actually have four ISAs on our team. Every day, new leads come into our system. “Our main focus is to get to those leads as soon as possible,” says Chris. These leads are active buyers and sellers who need attention as soon as possible, so the ISA reaches out to them to set an appointment.

ISAs also follow up with leads and provide additional information when needed.

Not everyone Chris talks to is ready to move right now. They might just be starting to look for a home, or they may be interested in relocating.

As an ISA, Chris follows up with 75 to 100 people at a time. Chris also works to help buyers and sellers. For example, let’s say a buyer is interested in a particular neighborhood. Our market is very competitive right now, so it can be hard to find a home. If we have a listing in that particular neighborhood, Chris will call around to see if anyone else there wants to sell their home.

ISAs provide a great service for buyers and sellers.

Not only that, if we have a seller in a particular neighborhood, an ISA can reach into the database and find a number of buyers for that home.

As you can see, ISAs are a very important part of the real estate team.

If you have any questions about ISAs or if you are interested in buying or selling a home, just give us a call or send us an email. We would be happy to help you!

How Real Estate Teams Perform Better for You

Recently I was joined by one of my team members, Mike Carroccio, to talk a little about listing agents as well as the benefits of working with a real estate team.

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Recently I was joined with one of my team members, Mike Carroccio, to discuss what exactly a listing agent does.

A listing agent is someone who works exclusively with sellers to help them sell their property.

Listing agents like Mike work closely with the ins and outs of the process—they know how best to list a home, make it marketable, and get it sold.

There are professionals out there who work with both buyers and sellers, but working with a listing agent specifically carries some advantages.

When you work with an agent who comes from a real estate team, you know that they are proficient in understanding and representing your best interests.

Buyers typically have their own agents, so sellers should be afforded the same. What’s more, agents tend to find that they work better in niche roles. Some agents are better at working with buyers, and some are better at working with sellers.

Mike falls into the latter category. This is why he makes such a strong advocate as a listing agent. When a team is divided by their skills, each person can give their attention exclusively to an individual.

Working with an individual agent as opposed to a team, one may find that individual agents tend to get stretched thin trying to handle the same workload we cover as a team.

On a team, everyone is assisting one another to do the best job possible for the client.

So, on a team, while one person may be specializing in a specific role, everyone is assisting one another to do the best job possible for the client.

If you want more information or have any other questions, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How Can You Pay Off Your Mortgage Without Breaking the Bank?

If you want to pay off your home mortgage quicker, there are a few ways you can do so without breaking the bank.

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I don’t know about you, but if I had a home mortgage I’d want to get rid of it as quickly as possible. Did you know there are some great ways you can pay off your home mortgage without breaking the bank?

There are many ways to get rid of your home mortgage.

The first and most common is paying it in 13 installments per year. For example, if you have a 30-year, $200,000 loan at 4.5% interest and you pay that extra 13th payment, you’ll save $27,000 over the life of that loan and pay it off four-and-a-half years sooner.

If you want to be more aggressive and pay the loan off even sooner, you can make one extra payment per quarter. Instead of doing one extra payment per year, you’d make four extra payments. For that same loan, you’d save $65,000 in interest and pay it off 11 years sooner.

If you think you can’t pay either of those amounts, you can also do a refinance. Refinancing is bad in the sense that it pushes all of your interest up to the front of your loan, so you’re repaying a lot of interest again. However, you can change that 30-year loan to a 10- or 15-year loan, force yourself to make the payment that way, and pay it off quicker.

You don’t have to pay a whole payment, either. One of the cool things we ask people to do when they make a payment each month is look at their amortization schedule.

Let’s say your payment is $1,000 and the principal portion of that is $100. All you have to do is write a $1,000 check for your house payment, write an additional check for $100, and say you want that applied to your principal. Next month when you write your $1,000 house payment check, the principal will rise slightly to $110. Again, write that extra $110 check. If you can consistently do that, you’ll pay off your 30-year loan in approximately 17 years.

If you have any questions about paying off a home loan or would like to speak to a mortgage professional, don’t hesitate to shoot me an email. I’d be happy to help you.

Our Way of Becoming a Marketplace Expert

Today I want to show you some of the methods my team uses so you can become a marketplace expert.

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Today we’re starting our training series by talking about how you can become a marketplace expert. Our team’s expertise involves several tricks of the trade I want to share with you.

One of the things we do is look at our MLS and how it’s divided among the areas in town to determine all of the available inventory. In most parts of the country right now, it takes 55 to 60 days to sell a home, and 55% to 60% of the listings will sell in that time frame. Our days on market may fluctuate, but that’s how many end up selling, and there are a great deal that don’t end up selling the first time they’re listed.

To be able to keep up with what’s trending and what the days on the market are, we typically watch pending transactions. A lot of people prefer to look at what’s already sold on the market, but if you think about it, data of listings that have already closed can be 30, 60, 90, or even 120 days old. That’s too late to become a marketplace expert.

To know how many homes are moving, we calculate an absorption rate. To do this, you simply divide the number of homes for sale by the number of pending listings. For example, if we had 250 homes for sale and 40 that were pending, we’d divide 250 by 40 to get 6.25 months of inventory.

This information is valuable to be able to present to buyers and sellers.

We use all this information as great scripts for our buyers and sellers to help them know the marketplace. If you’d like more information or training, feel free to give me a call or send me an email. I’d be happy to help you.