Saturday morning I got a call from a real estate agent who is affiliated with a nationally franchised real estate firm with offices here in middle Tennessee. My caller I.D. identified the firm. Since I don't give out my personal phone number to other Realtors unless I'm working on a deal with them, I assumed that the Realtor was trying to reach me regarding either one of my listings or one of his listings that I'd recently shown.
When I answered the phone with my friendly and professional greeting, "Good morning, this is Holly," the other Realtor said, "Good morning ma'am, this is Joe Blow with I-Shall-Remain-Nameless Realty, and we recently sold your neighbor's home at 907 Clayton Avenue, and I'm wondering if you, or anyone you know might be interested in selling your home?"
I paused. Obviously this other Realtor didn't realize he had reached a fellow agent at home while she was sipping her Saturday morning coffee. I said, "Well, I'm a real estate agent myself, but thank you for calling." The other agent, clearly caught off guard, chuckled and said, "Oh! Well, best of luck with your business!"
After I hung up, I got to thinking: Neither that agent's name, nor the name of his firm, matched the yard sign of the real estate company who had listed my neighbor's home. So I decided to look up the "closed sales" on Realtracs (our local Realtor's website) to see if he had acted as a buyer's agent in the sale. When I discovered that this agent's name did not appear anywhere as either the listing or buyer's agent on Realtracs, I was surprised and disgusted. This agent, who had cold-called me on a Saturday morning, was canvassing my neighborhood to generate business by telling an outright lie!
Before I got my real estate license, I was a real estate investor, home-renovator, and landlord. I resisted getting my license to sell real estate, because of the stigma that I associated with Realtors-I perceived the real estate sales profession to be riddled with con-artists; admittedly, my assessment was generalized, mostly off-base, and in spite of it, I ultimately became a real estate agent myself. I've since learned that "professions" are made up of people-mostly good, and a few bad-but now here was a fellow real estate agent, claiming to have sold my neighbor's home, lying and setting a bad example and proving to me that my old perceptions were not that far off the mark from what others may perceive as well. I did a Google search and discovered 2,630,000 hits by typing in "Real Estate Agents who Lie," and while I was at it, found this interesting article: "The Top Three Lies Told by Real Estate Agents"
Every so often, I wonder if I'd sell more homes if I resorted to the strategies and trickery sometimes used by others in my profession, but honestly, I value telling the truth more than making a sale.
Tuesday, May 15, 2012
Wednesday, February 8, 2012
How Do You Know When You've Found It?
With so many homes on the market here in Nashville, Tennessee, many first-time buyers search for their "dream home" for months, even years, before finally deciding upon a home they can envision themselves living in long term.
3. If you happen to find yourself falling in love with a home’s glass-block shower wall, while ignoring the dirty tub, or drooling over the the built-in cookbook stand on the kitchen countertop (even though the countertop is laminate), that’s a sign that you’re falling head over heels with a home that might just be “It.”
4. And if you find your yourself picturing your own kids and sofa in the living room, your table and chairs and favorite wall hangings in the dining room, and having your morning coffee on the deck--it’s entirely possible that the home you’re in could be “It."
When you find your "It,” continuing the house hunt you've been obsessing over for months starts to seem silly, like a waste of energy you could be using to move into your new home. So, if you notice that you have lost interest in seeing other homes, after any of the above situations have applied, it's time to make an offer, because you have probably found "It!"
Here are a few signs that a particular home you’re viewing just might be “It”--And that it might be time to make an offer!
1. If you walk through a home and instantly feel possessive and leave wondering how quickly you can get your offer in, and how much you’d offer to beat someone else out, or anything else you can do to make sure no one other than you gets the home, this one just might be “It.”
2. If you find yourself liking a home with traits that you would normally find undesirable, yet you like the place so much that you instinctively compile a mental list of reasons why those traits don’t seem to matter, you just might have found “It.”
3. If you happen to find yourself falling in love with a home’s glass-block shower wall, while ignoring the dirty tub, or drooling over the the built-in cookbook stand on the kitchen countertop (even though the countertop is laminate), that’s a sign that you’re falling head over heels with a home that might just be “It.”
4. And if you find your yourself picturing your own kids and sofa in the living room, your table and chairs and favorite wall hangings in the dining room, and having your morning coffee on the deck--it’s entirely possible that the home you’re in could be “It."
When you find your "It,” continuing the house hunt you've been obsessing over for months starts to seem silly, like a waste of energy you could be using to move into your new home. So, if you notice that you have lost interest in seeing other homes, after any of the above situations have applied, it's time to make an offer, because you have probably found "It!"
1805 Lischey Avenue in East Nashville, TN
A Sweet Renovated Starter Home
Tuesday, January 24, 2012
Are You Really Ready to Buy?
The housing market in Nashville, Tennessee is great for buyers right now. Interest rates are extremely low, there are many houses on the market to choose from, and the cost of renting has increased! But just because the market’s good doesn’t mean it’s the right time for everyone to buy. So what are the big questions you should answer to determine if you’re ready to buy? Here are five of them:
1. Do I have enough money for a down payment?
And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. And keep in mind there are also closing costs, which can run as high as 3-4% of your total purchase price.
2. Can I handle the not-so-glamorous aspects of homeownership?
As a home owner, you are basically your own landlord. So if your toilet won't stop running, or a pipe freezes and bursts in the middle of the night, you can't call a property manager to take care of the problem. If the idea of having a maintenance crisis is overwhelming to you, you might want to reconsider homeownership-or at the very least, buy a condo or townhome in great condition or a completely renovated home with new mechanicals: ie, plumbing, electrical, roof, HVAC; and make sure you get a home warranty! When you go from renter to owner, you'll need to account for the cost of appliances and maintaining the property’s roof, windows, landscaping, plumbing, and changing the air filters in your central heat and air unit.
3. How long do I intend to stay in the house?
If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a home (unless of course, you intend to use the home as a rental property/investment after you move). You should plan to stay in the home at least 5-7 years-even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market. This will give you some time to build up equity and make up for the costs of buying, selling and moving.
4. Are my job and finances stable?
Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best plan is to be confident that your finances can handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you decide that you're ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.
5. What are my real reasons for buying?
Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want and are ready for the lifestyle change. Some worthy reasons renters give for their decision to buy include some or all of the following:
**You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.
**You want a place to call your own, where you can paint the walls any color you want, where you can have dogs without paying fees for the privilege, or where you can plant a garden.
**You want the tax advantages of homeownership.
**You want a stable place you and your family can live for as long as you'd like.
1. Do I have enough money for a down payment?
And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. And keep in mind there are also closing costs, which can run as high as 3-4% of your total purchase price.
2. Can I handle the not-so-glamorous aspects of homeownership?
As a home owner, you are basically your own landlord. So if your toilet won't stop running, or a pipe freezes and bursts in the middle of the night, you can't call a property manager to take care of the problem. If the idea of having a maintenance crisis is overwhelming to you, you might want to reconsider homeownership-or at the very least, buy a condo or townhome in great condition or a completely renovated home with new mechanicals: ie, plumbing, electrical, roof, HVAC; and make sure you get a home warranty! When you go from renter to owner, you'll need to account for the cost of appliances and maintaining the property’s roof, windows, landscaping, plumbing, and changing the air filters in your central heat and air unit.
3. How long do I intend to stay in the house?
If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a home (unless of course, you intend to use the home as a rental property/investment after you move). You should plan to stay in the home at least 5-7 years-even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market. This will give you some time to build up equity and make up for the costs of buying, selling and moving.
4. Are my job and finances stable?
Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best plan is to be confident that your finances can handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you decide that you're ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.
5. What are my real reasons for buying?
Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want and are ready for the lifestyle change. Some worthy reasons renters give for their decision to buy include some or all of the following:
**You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.
**You want a place to call your own, where you can paint the walls any color you want, where you can have dogs without paying fees for the privilege, or where you can plant a garden.
**You want the tax advantages of homeownership.
**You want a stable place you and your family can live for as long as you'd like.
Ask your own questions about why you want to buy, and be honest with your answers. It’s usually just a matter of strategically timing your purchase when your savings, your career and your lifestyle are in alignment with the implications of ownership. Consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working your plan!
Tuesday, January 17, 2012
The 1, 2, 3's of Your First Home Purchase
If one of your New Year's resolutions is to buy your very own home, there couldn't be a better time than the present! 30 year mortgages dropped last week to a record 3.89%, according to a recent article in Yahoo Finance.
When you get ready to start looking, here are three things to keep in mind:
When you get ready to start looking, here are three things to keep in mind:
1) Get Preapproved
Before you do anything, get yourself pre-approved for a mortgage. If you know you can get a mortgage, you won't set yourself up for disappointment if you find your dream home and then can't purchase it. Be sure to get your lender to give you a mortgage pre-approval letter in writing. This will give you a solid price range to begin your search with, and will let your realtor and potential seller know that you're a serious buyer and not just browsing!
2) Develop your Wish List
What do you absolutely need in your new home, ie. 3 bedrooms, more than one bath, granite countertops, move-in ready, a fenced yard, or a garage? What are some of the items on your wish list that you can do without?--Most homes aren't a perfect match, and you need to be open to the idea that you might not get every single item on your wish list. If you don't go through the looking process in a slightly detached manner and you fall in love with every home you see, you are likely to over-pay for your home. By using your Wish-List, you can hone in on the home you can't live without!
3) Gather your Team
Buying a home is a complicated process with many people involved. Having the right people on your side can make a big difference. An experienced, knowledgeable and reliable Buyer's agent can put you in touch with lenders, home inspectors, contractors, and movers so that you have a team of advocates working for you immediately.
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