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A Detailed Guide To Short Sale Homes

A Detailed Guide To Short Sale Homes Whether the type of market is a “Seller’s Market” a “Buyer’s Market” or anything in between, home buyers will sometimes look for out-of-the-box opportunities when it comes to buying a home. One form of out-of-the-box opportunity come by the way of “short sales.” In this blog, you will learn what a short sale consists of, how to approach them, the pros, cons, and important points regarding them.   By the end, you’ll also gain an idea as to whether or not a short sale opportunity is the right one for you. What Is A Short Sale Simple Question – Not So Simple Answer A Short Sale is a property being sold for less than the debt(s) against it, “forcing” the entities who have debts against the home (e.g., bank mortgage, home equity loan, mechanics lien, etc.) to potentially accept only a portion of what they are owed. This can oftentimes occur when the homeowner(s) are not capable of keeping up with their mortgage payments or perhaps were part of a lawsuit that resulted in a lien against the property, perhaps the homeowner has a home equity loan and mortgage, when combined, exceeds the property value, or any other recorded debt against the property which would put the property into a “net negative” valuation. For the sake of this blog post and for simplicity sake, we will assume that there is only one debt against the property, the mortgage bank (“LENDER”). What Is The Homeowner’s Role In A Short Sale? The Homeowner And The Debt(s) The homeowner has some responsibilities to the lender in regards to establishing a short sale situation: The homeowner should be prepared to prove their financial hardship to the institution(s) who have interest in the home, for example: Job Loss, Medical Expenses, Other Economic Difficulties. They need to get the lender’s approval to sell the home for less than what’s owed. (THIS is normally a lengthy process!) The homeowner may still be responsible for the remaining debt after the sale (though some lenders may forgive this debt). It’s even more important that the homeowner be selective of the real estate agent and attorney used for this type of transaction.  Though many attorneys are straightforward as to whether they are skilled at this type of transaction, real estate agents oftentimes are not. Beyond that, there are still some additional considerations for a homeowner who is looking to explore a short sale: Credit Impact: There will likely be damage done to a homeowner who sells through a short sale process Taxes & Legal: In some cases, the forgiven debt (the difference between the mortgage balance and the sale price) could be considered taxable income by the IRS. Homeowners considering a short sale should consult a tax advisor and a real estate attorney to understand all legal and financial implications. Charles Bianco, REALTOR® has experience in Short Selling properties and can provide you with the real estate service you need during this type of sale. CLICK HERE to request your FREE phone consultation with him! What is The Lender’s Role In A Short Sale? The Lender(s) Are The Key To The Transaction The lender has the responsibility to ultimately decide on the final price the home can sell for, its terms, and whether or not they will actually approve the sale to begin with. As mentioned earlier, the problem with short sales is that the lender is fully aware that they are taking a loss, and no one likes taking a loss.  It’s up to the lender to do what they feel they can do to minimize the loss as best as possible, should a home sale be the agreeable option for the homeowner and the lender, together. The Lender has to agree to the short sale because they will receive less than the full mortgage balance, however, they know this may be better than a foreclosure process. The lender typically orders an appraisal or a BPO (Broker Price Opinion) to determine the current market value of the home to determine if a short sale makes sense for them. The lender has to agree to the process and do a valuation of the property to protect itself during this type of transaction.  The lender has to look out for its best interests and takes these measures to do so. Pros, Cons, And Important Short Sale Points The Important Elements Of The Short Sale For those who are interested in the idea of a short sale, this summary of the pros, cons, and important points is a worthwhile read, so let’s jump right into it. PROS: May create a “discount opportunity” for buyers. The long length of the process may deter buyer competition. Short Sale properties are sometimes stigmatized as “bad homes,” similar to foreclosures, removing some buyer competition. CONS: Many listing agents are not experienced at Short Sales, creating unnecessary delays, or even a cancellation of sale. Your down payment money will be held in escrow for longer than a traditional sale. The Homeowner might accept an offer, but the lender may reject the offer well after. The Homeowner may accidentally miss steps of the process, creating problems. Bank appraisal may cause initial offer to be rejected well after it was made. Lender may abruptly reduce or cancel commissions to agents, causing buyers to potentially be responsible. The overall process may take up to a year or longer to complete. The risk of a short sale being cancelled due to economic recovery or other outside influence. There may be more than one lien against the property in addition to the lender, causing delays and additional parties to consider offer acceptance. Important Points: Real Estate listing agents may advertise a listing price that isn’t “bank approved.” Lenders may require more than a low down payment. Homeowner’s economic problems may result in the property not being maintained. If property taxes haven’t been paid, it may cause further delays or issues. All in all, short sales are

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Let’s Lower Real Estate Commissions

Option 1: The “Discount Broker” Is the race to the bottom the answer for the consumer public?1 Over the past few years there has been an outcry for a more affordable real estate buying and selling option versus the existing “product.”  Many people believed that the “discount broker” (e.g. “REX”, “Purple Bricks”, etc) would be the answer, and unfortunately it wasn’t.  REX had its legs cut out from under them amid a crushing blow against them via Zillow, and Purple Bricks, an Australian-based discount fee brokerage that had failed and closed its doors years ago despite being a major company. Discount Brokers: “Discount Brokers” are generally forced to operate in volume, and when this happens, the obvious follow-up then occurs; to operate, they have to take on multiple clients simultaneously and oftentimes are more interested in “just getting the house sold” when compared to a traditional real estate broker.   You’ll find many instances where a discount broker may even confuse one client with another, or worse yet, forget to acknowledge a request or a requirement from a specific client due to being overwhelmed. But being overwhelmed doesn’t only translate into having multiple clients simultaneously, frequently these brokers are also on a never-ending search for new clients to “keep the lights turned on” and “food on the table.”  Either way, it’s a losing proposition. Now, if you consider a discount broker who operates out of state or is a “one-person show, ” the issues can multiply quickly. The consumer public has already shown that this isn’t the answer they’re looking for and have shifted to looking for new answers. Option 2: File A Lawsuit Against REALTORS® Greedy attorneys taking advantage of the misguided answer of consumers The irony here is daunting; attorneys, who oftentimes demand an insanely high “standard fee” for their services, attack real estate agents over their high fees.  It’s almost like one brother attacking another brother when the other brother is not watching, nor expecting it. Recently, there was a lawsuit against the National Association of REALTORS® alleging several issues including how real estate commissions were not only artificially inflating home pricing, but also stating that homeowners should not be paying the real estate commissions of buyer’s agents. The Lawsuit & The Commission: I would argue that homeowners never paid a buyer’s agent. The seller’s agent was opting to take a portion of the negotiated commissions they receive from the sale and offer it to a buyer’s agent as an incentive to bring a buyer and the best offer possible. Unfortunately for the National Association of REALTORS®, they lost the lawsuit which resulted in changes that were ordered to take place, including removing the buyer’s agent compensation amount on the MLS. Ironically, the attorneys for the plaintiffs took a heavy percentage of the awarded amount and spread the remainder to the people they represented.  How interesting is that? Theoretically, the commission for a seller’s agent would be less since they have no obligation to pay a buyer’s agent which is further from what will likely happen. The Potential Commission Result: You wouldn’t take a pay cut at your job.  Remember, the commission negotiated between a homeowner and their agent can be any amount.  There is no standard. So if an agent’s “fee” is, for example, 6%, they are likely going to continue negotiating the same whether a buyer’s agent split exists or not.  During the initial commission conversation with a homeowner, the seller’s agent discusses the commission due to them. What does this mean?  This means that homeowners are not poised to make even LESS money from a sale.  Here’s the math. BEFORE LAWSUIT: 6% Commission – 3.5% to seller’s agent, 2.5% to buyer’s agent – 6% Total Commission Paid. AFTER LAWSUIT (potential): 6% Commission – 6% to seller’s agent, 0% to buyer’s agent, buyer requires 2.5% from their buyer clients, buyers offer is now 2.5% less – 8.5% Total Commission and impact to the home seller. So homeowners everywhere can thank those near-sighted attorneys for their lack of vision and their overwhelming greed which came at the expense of the homeowner. Option 3: Understanding Why They’re “High” Understanding why commissions are what they are to begin with and why Interestingly enough, the reason for commissions being what they are and how much they are have everything to do with the literal financial abuse real estate agents endure. Being a real estate agent is a career for many as it is being in a constant state of investment.  Countless companies target real estate agents as “cash cows” and charge them exorbitant amounts for goods and services.   Let me give you a couple of examples of what we call THE REAL ESTATE TAX: The Real Estate Commission Tax: ZILLOW.COM: For a real estate agent to survive many are compelled to look to Zillow, and Zillow is a beast that needs feeding.  Zillow has a program where agents can pay to receive “leads” (buyers click on interested properties they would like information on or to view) to grow their business and ultimately make a living.  Nothing wrong with that, or is there? Zillow charges agents anywhere from $100 to over $2,000 monthly to be a part of their platform.  The lesser amount gets you a minimal number of “leads,” if any, thus creating a “bidding” platform, where multiple agents in a single zip code can see each other’s monthly payments to encourage them to compete to outbid each other. Whatever an agent pays per month other agents will see this and opt to pay more, driving costs upward. Zillow – $100-$2,000+ per month REAL ESTATE SOFTWARE: Being an agent doesn’t just mean you have to worry about “leads” it also means that you need ways to service those “leads.”  These services include a real estate website, a CRM (Consumer Relationship Manager – email system, customer database, etc), software to help market yourself and the homes you are hired to sell, and more.   Real Estate Website – $500 per month CRM

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Real Estate: Crash, Correction, Or Neither?

“The Sky Is Falling! …Or Is It? A quick insider look at what a real estate market is made up of1 Depending on who you listen to or what source you’re getting your information from, the real estate market is one where you will find the most certain and uncertain people literally at the same time, saying the same things, in their own different way. And don’t be surprised if you hear influencer “guru’s” and top-name celebrities and even influencer real estate “celebrities” share their “insight” to the direction of the market…they will be happy to do so, after all, it gets attention and ultimately it gets the clicks they’re looking for out of you. But is there any truth behind their statements?  Well I guess it depends on which independent statement you’re referring to and what the agenda of that individual happens to be at that moment. Remember, anyone can say “The Sky Is Falling!” as loudly as they want, but it doesn’t mean that it is, or, better yet, what exactly is falling from the sky?  Is it rain?  Is it leaves?  Is it an acorn that drops on your head because you’re under a tree?  Either way, what I am trying to say is; no one can predict what’s going to happen next, no matter how big or how relevant the source saying it, is. So Then Will There Be A Crash, Or Not? Since even the biggest “names” can have inaccurate predictions Well, the market isn’t primed for a crash, but that doesn’t mean there can’t be one.  Let’s take a look at the most recent “crash” that resides in all of our minds, the crash of 2008. Back in 2008 banks were literally giving loans away to anyone who asked for one.  It was almost as though banks had a serious quota they were about to miss, and if they didn’t give loans to everyone, they would suffer greatly! So that’s what they did.  There was even speculation that a select big-name bank had issued a mortgage to a dog.  Yes, a dog.  Don’t ask. The fact that even a canine was able to get a loan was the most disturbing part of it all, but also was the greatest indicator that the banking sector was primed to be in serious trouble. A wide variety of high-risk loans were being given to people who barely went through a financial qualification process, others opted for loans which didn’t make financial sense (interest-only loans, anyone?) and yet others were even going so far as to either inflate their income artificially, or, simply fabricated their income altogether just to get a mortgage. What followed was a real estate boom. You had buyers all over purchasing homes like crazy.  Prices went through the roof and affordability quickly became an issue.  This is the basis of those today who claim there’s a “crash coming,” the rush of buyers and lack of affordability. What’s being forgotten, however, is that the main factor for the crash of 2008 is completely missing from this equation; the banks lending frivolously.   Ultimately, a great number of people who were financially undeserving of loans were beginning to default on their loans and thus a sell-off of properties began, creating an overabundance of homes for sale, creating a crash of home prices, defaults, foreclosures, short sales, etc., and there you have it, the Crash of 2008. We’re not there, we’re not even there.  So we can put this theory to bed. The next theory was “the pandemic.”  The pandemic was supposed to not only bring the real estate market to a halt from its high prices, but was supposed to reverse them altogether. The theory was that without jobs and the ability to work, people wouldn’t be able to afford their mortgage payments and as a result be forced to sell, injecting more homes for sale, bringing the extreme seller’s market down because inventory (homes for sale) would be on the rise.   Unfortunately, not enough homes came to the market because both federal and state governments stepped in along with the banking industry and literally fed money into the hands of Americans enabling them the ability to pay their bills, while banks enabled homeowners to defer payments temporarily. Crash averted. The Possibility Of A Real Estate “Correction” If it isn’t going to swing back the other way, then maybe this The more likely scenario would be a “correction,” but like with everything else, there has to be both a basis and a reason.  So far, we have the basis; home affordability is reaching an all-time low when now also combined with decade-high mortgage interest rates, but the reason would have to include an adjustment in the supply and demand. Will the basis outreach the reason or could they both work together to make a correction happen? So far in 2024 the answer is “no.”  While there has been a drop-off in buyer activity, the drop-off wasn’t enough that it will prevent bid wars from occurring on homes.  Bidding wars are still rampant at the moment.  The theory is that a hike in interest rates is not powerful enough to stop the supply-and-demand issues.   Purchase power has also seen a boost with work wages increasing across the board in New York, enabling people to afford more even if it costs more. What would have to happen in order for a correction to occur? It’s my theory that we would have to see high interest rates throughout the summer going into the fall.  During the fall and winter seasons, real estate is at its least active, if the combination of inactivity (by comparison) and high interest rates were to persist, it may create a situation where home buyers would lessen, putting relief on the supply-and-demand issue. Alternatively, an ironic way to fix the issue may be if interest rates were to fall.  One key factor among homeowners not wanting to sell their home is tied to the interest

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The War On REALTOR® Commissions

What Is Actually Happening? Many news and media outlets have reported about this, but what’s the truth?1 (YourHomeYourTerms Team Agents are fully prepared for this scenario and you will have the least hassles with this using us.  CLICK HERE to visit our Buyer page when you’re done reading to reach out to us) In a nutshell, a combination of homeowners and attorneys agreed that real estate agents have been “inflating” their commissions due to a policy by the National Association of REALTORS® stating that agents must offer agents a minimum commission for bringing the buyer who ultimately purchases a home. The argument also included that home prices were increased artificially to cover these real estate commissions. Is this truly the case? Is this what has been happening?  Let’s explore the subject to find out. Commissions & Home Pricing What was actually happening and is there a true connection? The alleged “6%” commission has been talked about for what feels like ages, and that seemed to be a basis (if not the basis) of this alleged “padding” of home pricing. The theory is that if real estate commissions were reduced, home prices would follow.  Unfortunately, this couldn’t be further from the truth and actually challenges the intelligence of economists everywhere. The raw fact of the matter is that home prices are strictly dictated by the law of supply and demand.  As of this post, there has been a years-long shortage of properties for buyers to purchase, creating multiple offer scenarios and extraordinary offers which accompanied. Appraisals have been increasing steadily due to this market condition, and therefore home prices have not only been on the rise, but are rising with evidence now provided by the banks themselves when they approve a loan for the appraised amount. As we speak about appraisals, a licensed appraiser will not factor a real estate commission into the value of a property, so whatever “inflating” that is occurring as a result of “high commissions” are not and will not be considered.  In other words, a home will fail to appraise at the comparable value of the property plus commissions, and in order for appraisals to be affected by real estate commissions, it would have to have done so from the start.   The Buyers Are Footing The Bill Quick Math: Commission + Down Payment + Closing Costs = “The Straw” One of the greatest concerns that accompany the misguided lawsuit includes the responsibility of the buyers.  It is argued that the buyer has the highest costs throughout the real estate process and to add a real estate commission to the mix may be the proverbial straw that breaks the camel’s back. As a result, buyers may become qualified for less, creating a “cement ceiling” of sorts, which may cause property prices to drop, but at the cost of the buyers themselves, rather than “saving money for the homeowners.” The other consideration is that many homeowners who may benefit from this will become buyers themselves and may be faced with the reality of paying real estate commissions after the sale of their home.  When you combine the reduction of property values (due to buyers now being qualified for less), you can see that there is potential for a market decline; but instead of celebrating this newfound “affordability,” the decline will be at the expense of buyer and seller alike. Thanks, greedy attorneys!   On a semi-related side note, I am fairly certain that the attorneys responsible for the lawsuit collected a “standard fee” from the homeowners they involved, and that the homeowners received a paltry fraction of the total award as a result.  How ironic. Does This Really End Shared Commission? Will Seller’s Agents No Longer Offer Commission To Buyer’s Agents? As of this moment the answer to the question is essentially “No.”  Homeowners still have the option to offer compensation to a buyer’s agent the same as before.  The only real change there will be initially as a result of this lawsuit is that the Clear Cooperation Policy from the National Association of REALTORS® (the portion of the policy that dictates that commissions must be offered to a buyer’s agent, whether it’s 0.01 cents “6%” or anything in between) will discontinue and that the buyer’s agent / broker’s agent commission input section on the agent side of the MLS will no longer be there.   In other words, REALTORS® will no longer be able to share commission-offered amounts on each property through the MLS.  It will be up to the buyer’s agent to contact each agent representing each property to see if any commissions are being offered, if not, then it will be up to the buyer to pay any commissions in whatever way it was discussed during the initial consultation between buyers and buyer’s agent. Alternatively, REALTORS® may opt to share commission information on websites other than the MLS to discuss commissions to buyer’s agents, however, the Department of Justice may be looking to put an end to that idea as well, preventing any discussion of buyer agency commissions across the board with the exception of person-to-person communication.  More on that as time goes on. How Do Buyers Pay Commissions? Buyers have a few choices and options which may work As time goes on and more buyers are faced with the reality of paying buyer agent commissions, the question of how they are going to pay and what methods are available for them to pay come to the fore-front.  There are currently a few ways in which a buyer can pay these commissions with the least hassles possible: Build it into the offer(Offer is for $500,000, minus REALTOR® commission) Build it on top of the offer(Offer is $500,000 plus REALTOR® commission) Pack it into the mortgage(Mortgage of $500,000 plus REALTOR® commission) Pay the commission out of pocket(Write a check at closing) These are some worthwhile options that any buyer should consider as a result of working with an agent.  In my opinion, packing it into the

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The Mortgage Interest Rate Customer TRAP

The Trap Is Set, Here’s What It Looks Like Banks and loan officers know what the consumers want…that’s the problem. For many people, the number one question regarding getting a mortgage is always “What’s the current interest rate?” This is no secret to banks and loan officers, both of whom have a job to do, to get you to use their service to get a mortgage, so they can get paid.  Interestingly enough, loan officers and banks will typically advertise attractive financing terms and even potential interest rates as their method of attracting customers, oftentimes without telling customers the full truth behind them. That said, the trap is set; the conversation around the interest rate.  They know that the majority of people don’t ask about things such as “fees” and “points,” but rather the “interest rate they’re gonna get,” and loan officers know they can say whatever they want, hence…the trap. How Does The Trap Work? Here’s how you identify the trap and how to avoid it The trap is set right at the beginning, the moment you speak with a loan officer, but interestingly enough, it’s not the loan officer (or the “bank”) who sets the trap, it’s YOU who sets the trap! “What is your interest rate?” you blindly yet confidently ask as though this were a valid part of obtaining a loan.  The truth is, whatever interest rate you’re told at that moment will likely not be the interest rate you’re going to receive. Even worse, you can even ask them to put it into writing and it won’t matter.  The interest rate you spoke about is not something that can be provided to you even weeks after your initial conversation. The loan officer (and “bank”) are well aware of this and it opens the door for a “fraudulent” conversation.  It’s really up to the loan officer as to how honest they want to be or not to be.  For example, the loan officer can quote 1 or even 2 percent less than what is being told on websites and media outlets which will obviously attract your attention. Despite quoting this unicorn interest rate, the loan officer knows that there’s no way to call them out on this.  Time will go by before the interest rate can be provided, and by then “the market has changed, it’s a different rate today than it was when we first spoke.” THE TRAP HAS HAPPENED! Now you’ve been working with this person for weeks and have provided plenty of sensitive information to that person and have had your credit score affected since your credit needs to be pulled as part of the process, all for what you thought was a true interest rate…which you will not actually get until you perform what is called the “Rate Lock.” What Will My Interest Rate Be? An excellent question that is answered well into the transaction Earlier you may have read that asking what your interest rate will be is a dangerous proposition, but now that you’ve caught up as to why, we will revisit the same question, but from a different position. Asking a loan officer what your interest rate will be is incorrect since you now know that it’s tied to something called a “Rate Lock.”  The rate lock is the point of the loan transaction where you actually get the opportunity to select your interest rate, to a degree. The rate lock occurs when you’re nearing the completion of what the bank needs to issue you the loan.  It’s actually considered something called a “condition.”  A condition is a bank-required request of information from you that must be completed.  To complete your loan process, you will have to complete many conditions which the bank will communicate to you. So then the question becomes “why don’t I just get a rate lock immediately?” The answer is simple; the rate lock has an expiration date, generally 30 days.  So in other words, if you don’t complete what’s necessary to secure the loan within 30 days of getting your rate lock, then you will either need to pay a heavy fee to extend the rate lock (generally only a week or two), or, accept whatever the rates may be at that current time instead.  This is why people will wait until they know they’re almost complete with the bank before locking their rate. So earlier I mentioned that when you do a rate lock, you can “select your interest rate, to a degree.” What does that mean?  When it is time for you to do your rate lock, your loan officer will tell you what the interest rate is so far for the day.  You can choose to take that interest rate, or, you can wait until the next day to see if it gets better.  Talk to your loan officer about this, sometimes it gets worse as days go by, and sometimes there is some news people are waiting on that will affect interest rates in the near future, but whatever the case may be, you have the ability to choose in that regard. So What Is My First Conversation? The true conversation to have with a loan officer Your first conversation with a loan officer can be asking what the interest rate currently is, but now you know that it’s not really solid information, but more conversational.  The real first conversation to have will include asking them what their bank fees are.  Let the loan officer detail what type of bank fees they have.  Ask them about any credits they can give back to you as part of the loan.  You should be able to get back about $500 worth in fees by asking, and if they say no or that they do not, then you can consider asking other loan officers if they do. Remember, you now know that you can’t control the interest rate conversation, but you can certainly try to get a little of it all back

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The Process Of Getting Your Next Place After You Sell

We Make This Process Easy For You We take you through each step and make it seamless and organized As a homeowner who is considering selling their property, one of the biggest questions next to “how much can I sell for?” is “buying/renting your next living space.” The good news is that YourHomeYourTerms.com team agents are trained to guide you throughout so it feels as straightforward as you may imagine. Throughout this blog, you’re going to learn about the process which will include how and when to list your home for sale, when to actually begin searching for your next place, how to search for your next place, and ultimately securing your next place while selling your property. Your YourHomeYourTerms.com team agent is trained to help you with this. To learn more, you can CLICK HERE to access our Seller Learning page to see what we offer you and to contact us directly! Let’s begin! Is It Truly The Right Time To Sell? Deciding that it’s your time to take that next step into home selling Deciding to sell your home is an important decision especially when the question is at what point you’re truly ready to sell and if it’s the right time to do so. Here are some quick tips to help you determine if now, soon, or later is the right time to list your home for sale: Speak with your family about your potential decision to sell Decide whether you want to stay here in New York or not Determine what you feel your home is currently worth Take time to look into homes/rentals in the area you want to move Consider how much money you’ll have as a result of the sale Consider if there will be any employment changes Consider if there will be any lifestyle changes When going over these quick tips, have a way to write down your answers and thoughts. Once you’ve done so, go over your written thoughts with a YourHomeYourTerms.com team agent who can help discuss your answers and your plans.  You can CLICK HERE to visit our Home Seller learning page to learn more about the overall process and how we help! At this point, you should have an excellent idea as to how things will look and how you should proceed. If You’re Buying Or Renting Afterward Listing your home for sale with the intent to buy/rent afterward It’s perfectly normal to have some kind of concern when it comes to timing your sale and subsequent purchase thereafter. Initially, many people feel that the best way to go about doing this is to find a home first, place an offer on that home and then let them know it’s contingent upon you successfully selling yours.  While in theory this isn’t a bad idea, for the owner of the home you’re looking to purchase, it couldn’t any further away from “ideal.” That being said, there actually is a correct method of which to transition from a sale into your next place. –IF YOU’RE RENTING AFTERWARD– If the plan is to rent afterward, the difficulty factor scales down a bit.  Finding a rental isn’t very difficult depending on what your rental factors are.  A great suggestion would be for you to spend some time on major real estate websites to look up what rentals are going for in the areas you’re interested in, and also to see if the number of bedrooms and bathrooms as well as rental type is typically available. In this instance, we suggest that you consider getting your home listed onto the market for a couple of weeks prior to moving into a rental, at the very least.  If it appears as though your home is going to sell quickly, then proactively moving into a rental so that the house is clear and available at closing is preferable. If it appears as though your house may not be selling as quickly, then it’s suggested that you wait until you have a bonafide buyer that is signing the contract of sale before you begin any move into a rental. –IF YOU’RE BUYING AFTERWARD– If you’re looking to buy a home or apartment after the sale, then the correct course of action is to wait until you have a bonafide buyer who has signed the contract of sale before you consider placing any offers on your next living place. The reasons for this are the following: You’ll know how much you sold for(and therefore know how much money you’ll have) We will inform the attorney to add extra time to the contract(so that we have time to get you into your next place) Homeowners will want to see that your home is under contract(especially if you’re using money from the sale for this) Agents representing homes for sale will ask whether or not the buyer has “a home to sell or a lease to break” as part of reviewing offers of purchase.  If you do have to sell your home to purchase the next place you want to live, then the agent representing the homeowner will likely want a copy of your fully signed real estate contract of sale to review for timing and other factors. Without being in contract, there is no bonafide way for an agent representing a homeowner to confirm that your home is going to sell aside from “your word,” which will not be good enough in these instances.  No homeowner will be interested in tying their home up with someone who has not solidified a ready, willing, and able buyer to buy their home, first. If the type of home you’re buying after requires that you get another mortgage, sit down with a mortgage officer as part of the preparing-to-sell process with your YourHomeYourTerms.com team agent.  Your mortgage officer will need to go over the details of what you can expect from the sale of your home in order to property prepare the bank for your next mortgage. Selling While Buying:

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Being A Successful Buyer In Today’s Market

Becoming A Powerful Home Buyer – NOW It’s time to rise above the other ordinary home buyers Becoming the most powerful home buyer(s) takes work and dedication.  Why?  Because other buyers out there aren’t going to put in any work or dedication!  Remember, it’s always the ones that stand out that stand tallest.  …okay, maybe I just made that up…but it makes sense! In addition to putting in work and dedication, having the correct mindset according to the current real estate market is incredibly important as well. In this blog, I am going to go over what “work” translates into, what “dedication” translates into, and what type of mindset you should have as well whether it’s a “buyer’s market” or a “seller’s market”.  Let’s get started! One Part Work; One Part Dedication You put in the correct effort and it will all go your way Work and dedication.  If those words have you cringing then you already understand why so many buyers fail before they begin, or worse yet, fail while they’re trying to buy their property. Getting the proper real estate agent to help you with your property purchasing journey is an absolutely critical component of the process and will reduce significantly the amount of work that you have to do.  You can CLICK HERE to visit our Home Buyer learning page to see what we do for our buyers and how we make it the best experience possible for you. Work: Let’s face a very real fact; buying a property is one of the largest transactions in a person’s life and it should be treated as such.  Buying a property is a big life step and is not to be taken lightly.  There are many steps to the journey and once you’ve succeeded, you’ll be bound to a lifetime of memories and the anticipated building of equity and wealth. Dedication: You have to be ready to respect the process and to prepare mentally, there are going to be highs and lows, there is going to be excitement and disappointment, and you’re going to experience it all…and if you don’t, then you either got very lucky, or you voluntarily backed out of buying for any variety of personal reasons. So now let’s get to the major points and get you ready to get out there! Understanding Your Housing Needs The beginning path, where you find properties that best suit you This is the very beginning part of the process and is oftentimes the simplest.  Grab your smartphone and/or go to your laptop or tablet and begin visiting the popular real estate websites.   The first thing you’re going to want to do is figure out the types of properties that you’re most interested in according to style.  Do you like a Colonial style house?  How about a Ranch style house?  Maybe you’re more of a 2-Family house? Perhaps you’re into a beach Bungalo or how about a small to medium Cape, heck maybe even a mansion? Whatever it is, you’ll quickly determine this for yourself as you browse the different homes currently listed for sale. Going forward from there, you need to determine how many bedrooms and bathrooms you will want and then how many you will need.  Remember, in many cases, price follows these two parameters closely, so if you’re focusing on price, then you’re going to want to be careful here. Next up you should take note of the towns you’re interested in the most.  Watch the home prices you’re seeing in those towns you’re interested in. If you’re finding that the homes that interest you most cost, for example, $600,000 but you feel your budget is set for $525,000, then your best bet is to change your parameters.  I understand that negotiating price might be a thing (more so if a buyer’s market, less so if a seller’s market), but keep in mind that you don’t want to start from a point of weakness, you should always start from a point of strength, having the right budget is strength. The Pre-Approval, Down Payment & Closing Costs The pre-approval letter tells you what your budget truly is A mistake many initial home buyers make is to assume what they can afford.  What they feel they can get will almost always be far different than what a bank calculates their affordability to be. Why would that be?  Remember the great crash of 2008?  Yeah, that was the bank’s fault.  The banks were giving mortgages to literally everybody, including animals and the deceased (for real).  Debt-to-income ratios were not thought about, income was oftentimes fabricated, and the types of mortgages being offered were (at the time) deemed legitimate and safe. Welcome, to the crash. Today things are far, far different.  The banks are much more protective of how much they lend and are far more interested in income and debts.   I can’t tell you how many times I’ve heard people say “I can get a mortgage easily.  I make $200,000 per year!” but what they don’t realize is that however much someone makes in a year guarantees nothing, especially if the bank calculates what they owe each month versus what they earn to cause them to be pre-approved for far less than anticipated. The next common statement is “I have a 800 credit score! My “Carma Credit” score says so!” which is equally as cringy since the only credit scores that matter are your FICO scores (a great way to discover your FICO scores are at www.MyFICO.com). So how does the bank do it?  How do they determine your pre-approval amount? The bank will collect (at the very minimum) the following documents and information from you to determine this: Last 2 Years Tax Returns Last 2 Months’ Paystubs(Or equivalent time of other legal income sources) The last 2 Months of Bank Statements Social Security Number Driver’s License(s) From this information, the bank will understand your income, monthly debts, and how much money you have for down payment, closing costs, and

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For Sale By Owners Can Be Successful!

Breaking Down The Process For You You have the right to represent and to sell your own home in today’s market There is a stigma in existence which suggests that in order to sell your home you need to use a real estate agent.  This just isn’t true. The fact is, you’re permitted not only to list your home for sale, but you’re permitted to negotiate its terms, demand the highest offer price possible, and to get the best terms possible for yourself and/or your family. At no point do you NEED a real estate agent even though the vast majority of home buyers have a real estate agent representing them on their side of the transaction, which is an important thing for you to note, you’re not going to be negotiating with a “buyer,” you’re going to be negotiating with a buyer’s agent.  A big difference that we will discuss later in this blog. Let’s Get The Ugly Out Of The Way The majority of For Sale By Owners believe THIS about Buyer’s Agents The road of real estate is a winding and twisting road, one which looks like a straight line from start to finish, but that is far from reality.  Why?  One major factor is the role of a real estate agent when interacting with a For Sale By Owner.  Enter the misconception.   Real estate agents, specifically those who bring a buyer are most likely, if not definitely representing that buyer, and therefore, has the responsibility to look out for the best interests and terms for their buyers.  Here in New York, a buyer’s agent does have to legally disclose this via the Agency Disclosure form to a For Sale By Owner upon first substantive contact, so at least you will know right away that agent’s position. But even with this disclosure in place (and, sadly, during the times when a bad agent fails to disclose this), homeowners tend to believe that the buyer’s agent will handle everything and take the deal to the closing, if just so that the agent will earn a commission, but this is not necessarily the case. For Sale By Owners will put their trust in an agent who represents and protects the buyers specifically.  This is a terrible position for the For Sale By Owner, a position of which a For Sale By Owner should never find themselves in, which will make buyers very, very happy. It is your responsibility as a For Sale By Owner to be prepared to follow the next steps of each part of a real estate transaction without having to refer to a real estate agent.  This is the path you chose and you have to be able to walk it.   You may request the guidance of an attorney.  This attorney will charge for their work but may or may not have the answers or advice that you’re looking for.  The main purpose of an attorney is to protect you legally, they are not oftentimes utilized to negotiate terms or even pricing for you, especially since they will likely be communicating with the buyer’s attorney.  Their conversations will generally be legal conversations. Marketing Your Home To Buyers Despite everything, you have a job to do, and you’re going to do it So now you’ve taken a major step in your life in deciding to list your home for sale!  Very few people decide to do this on their own for a number of reasons, but you’re going to go against the grain and get the job done, By Owner! One of the greatest advantages of having a real estate agent is their marketing expertise and their ability to broadcast your property not only to the greatest number of buyers in the area, but to all of the real estate agents who have buyers in the area. Since you don’t have the luxury of having that capability, it’s now up to you to provide your own marketing and advertising of your home. Here are some tips, tricks, and things to look out for when it comes to broadcasting your own home.  And if you feel that it’s too overwhelming, or, feel as though an agent is the right answer for you, CLICK HERE to check our “Learn More About Selling” page where you can reach out to us and we can help you! Here are some best practices to sell your home: Pay for professional pictures of your home(Do not use your cell phone, that can be detrimental) Create professional flyers for your home(Give these to prospective buyers) Create a professional website for your home(This will give people on social info on your property) Create a compelling description of your home(AI can help with this, but this is important) Make sure your home is completely decluttered(Clutter can literally make or break an offer) Make sure your home’s curb appeal is maximized(It’s the first impression people will get of your home) Post your advertisements on Social Media(Keep an eye, there are lots of “nay-sayers” on there) Post your home on Zillow’s website(Limited to “For Sale By Owner” section only) Have a schedule when you can show your home(Make this as open as possible, not everyone is 9-5) Prepare your home for Open Houses(2 hours is sufficient, anything longer is not good) Have a way to be contacted(Your main cell phone isn’t recommended) These are just a few of the responsibilities you’ll be taking on when advertising your home for sale but if you factor in how much money you can save by doing this yourself, it may all be worth it in the end. The Position Of The Buyer’s Agent The buyer’s agent will be protecting their clients, not you Buyer’s agents have an obligation to their buyers and will show them houses despite whether or not agents list them or are promising any type of commissions. For starters, even after showing your home, the buyer’s agent will still continue to show other homes to their buyers. 

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Maximize Your Selling Price With These 3 Quick Tips

The Best Tips For Homesellers Getting top dollar for your home is definitely a driving factor of selling While there may be any number of different reasons a person may decide to list their home for sale, you can rest assured that its selling price is definitely among one of the most important reasons for a sale. After speaking with what feels like a countless number of homeowners, the consensus between them is that none of them want to “give their home away” and at the very least want “fair market value” for their home. In this post, we will focus on helping make sure you know the right steps to getting the maximum “SOLD!” price for your home. Quick Tip 1: Preparation You must make sure your home is “First Date Ready.” A commonly overlooked (or oftentimes underestimated) element of home selling is making sure it’s “First Date Ready.” When you decide it’s time to list your home, you have to be sure that both the exterior and interior are ready for the task. In my 12+ years of experience in real estate, there have been countless times where a homeowner would, at some point during the initial conversation, refer to how it may currently be a market that favors sellers, and in doing so basically insinuating that they can forego some elements which may feel “basic” such as cleaning or curb appeal. DO NOT FALL INTO THIS TRAP! While it may be true that a seller’s market can produce offers on your home regardless of its condition, the truth is, that people are emotional and visual.  If 10 people visit your home, and you do nothing to prepare it properly, instead of getting 7 offers, you may only get 4 or 5.  This means that the remaining 2 or 3 offers you would have gotten could have been higher and better than what you received, or, worse yet, you may get 1 or 2 offers, and those offers may be less than you’re hoping.  Yes, it can be like that. A great way to test if your home is “First Date Ready” is to invite an impartial neighbor or acquaintance over to view your home and give feedback.  You’ll be surprised what you’ll learn this way! Another is to do the obvious; hire a landscaper to improve the curb appeal, hire a cleaning company to deep clean your home, go out to a big box home improvement store and purchase some paint or some door knobs, etc., to fix and update easily fixable and updateable things. Quick Tip 2: The Right Agent “3% of all agents do 100% of all the real estate business” There’s no shortage of real estate agents out there and there certainly aren’t any who will volunteer that they’ve never sold a single home before in their career and have no idea what they’re doing. The fact is, getting a real estate license is very easy to do and requires little education.  The “school” that people go to when becoming a real estate agent simply teaches real estate law and does not teach any element of the real estate process, or even how to treat a customer or client. The right real estate agent is difficult to find, but the wrong real estate agent is very easy to run into, and worse yet, to work with. Some signs of a “good” real estate agent: They have at least 5 years of experience They have at least 40 completed sales on record They have a bonafide marketing plan They specifically mention what they will avoid doing for you They specifically mention what they will do for you They have a list of industry professionals to share They have a great-looking website with great info They are dressed professionally and act professionally They are confident and have answers quickly They have great public ratings and reviews They can accurately research property taxes They can demonstrate clearly how to financially qualify a buyer You’d be surprised to hear that there are only a handful of agents who can provide those 12 signs of a “good” real estate agent.  To make sure you’re dealing with a good agent, secretly interject these points into an interview with that person.  See how many of those 12 points that person “checks off.” On the flip side, a “bad” real estate agent will miss the mark on several if not many of those points.  For each of the 12 points that are missed, it may cost you thousands of dollars in profit. Charles Bianco, owner, REALTOR® and Mortgage Officer of YourHomeYourTerms.com can easily provide those 12 points and then some, if you’re in search for an amazing agent. Quick Tip 3: Maximum Exposure So your home is ready, you’ve done all the prep work and cleaned, decluttered, did some minor repairs and updates, you’ve then went and hired the right agent who has great experience, marketing, and is a rock-solid choice to represent your needs and wants, what’s left? Maximizing your home’s exposure to buyers!  This is an absolutely important element of getting the most money for your home; you can have the most wonderful home in the world, but if only a few people learn about it, they won’t compete for it and you’ll be staring down the barrel of selling at a discount whereas other homeowners are consistently getting over asking price for their homes. Maximizing your home’s exposure is only made most effective when you’ve followed quick tips 1 and 2, however. A “First Date Ready” home that is marketed by an experienced and successful real estate agent is a recipe for big-money success! Your beautifully ready home being broadcasted by your experienced and successful real estate agent via the MLS, Zillow, Trulia, Google, Paper Marketing, Digital Pay-For Marketing, etc., will put your property, in its most beautiful light, in front of the largest group of ready and able buyers…it’s a perfect-case maximum SOLD price scenario! The group

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For Sale By Owner: The 5 Steps To Selling Success!

Step One:The Starting Line It all starts at the beginning, a strong start will mean everything. It can’t be stressed enough: Make Sure You’re Ready To Sell Your Home! Having your plan(s) up to date and ready is one of the most significant aspects of home selling. Usually, an agent will help you with the logistics of your next move, locating many new on-market and/or off-market listings, office-exclusive listings, access to homes/rentals across the country, etc.  Since you won’t have access to that, you can rely on Zillow, Trulia, etc. You will need a place to move to once your home is sold, and buyers may not be able to wait extended periods for an unrepresented home seller to secure their next place, especially since the buyers know you’re doing it alone. If you struggle with this, it could be an excellent time to speak with a YourHomeYourTerms.com agent. Step Two:Preparing Your Home Preparation is not only key, it’s the master key to selling. One great way to prepare your home for sale is to use the homes around you as an example.  For instance, you can check Zillow for homes in your area and see how they are staged and photographed.   You’ll notice a variety of “styles.”  Some homes are meticulously staged with beautiful photographs; this is important since all buyers will look at images provided of a home for sale before making an appointment. You may also see some homes that look poorly photographed, staged, and cluttered.  These homes are not your competition, even if they match your home in every way.  Why are they not your competition?  Because humans are visual.  If you stage and photograph your home better than others like yours, your home will enjoy a positive benefit, which will far increase the likelihood of your getting top-dollar offers.  Make sure your home always smells nice and fresh.  Avoid using “cover-ups” to mask odors.  Open windows and do a cleaning.  Remember, we’re dealing with human beings, and they will judge.   Check the exterior of your home and make sure the “curb appeal” is maximized.  If you have to pay for a landscaper, do it.   YourHomeYourTerms.com agents have access to a massive list of professional resources that can be shared with you for your benefit, including attorneys, landscapers, plumbers, and handypeople.   Step Three:Showing & Promoting Now it’s “Go Time!” Listing your home on the market and looking for results This is it! The moment of truth: You’re listing your home for sale publicly! It’s an exciting time that can benefit you and your bank account. SHOWING YOUR HOME: Have a system in place to organize times and days for buyers to come visit and tour your home.  Have a set of times for each day of the week that would be convenient for buyers, such as “6pm-8:30pm Mon-Fri” and have weekends be open and flexible.  Remember, buyers work too and they can’t always make it during normal business hours. Make sure that you’ve got plenty of flyers handy for buyers who come visit your home.  Additionally, you will want to plan a “tour route,” which should begin at the front of the house and take them through to the back of the house and through the backyard.  Ideally, the buyers should leave through the backyard, but always ask if they would like to re-enter to view any of the property one more time.  If they do, that’s a good sign. You also want to make sure that the home looks the same in person as it does in the pictures you took.  No one likes being “deceived” by pictures, so if the house looks neat in pictures, then make sure it is when you show it. PROMOTING YOUR HOME: An Attractive Lawn SignFlyers Of Your HomeFlyers For Nearby BusinessesA Website Of Your HomeA Business Social Media Account Of Your HomeA Method To OrganizeAn Open House Sign-In SheetA Separate Phone Number For Buyer Inquiries/CallsList Your Home On Zillow Do not “cheap out” on these and do not cut any corners.  Competing homes around yours have professional agents working for them, so when a buyer visits your home for sale you will need to make sure yours looks as polished and prepared as the professional agents do. Unfortunately, Zillow reserves “For Sale By Owners” to what feels like the “rear” of their website, pushing agent-listed homes to the front of the website. This can come at a significant disadvantage to homeowners, so you must utilize your social media accounts through local group pages and pay-for advertising by creating a business page of your home as your bread and butter for marketing your home digitally. CLICK THIS LINK HERE TO SEE WHAT WE DO TO PROMOTE THE HOMES WE LIST FOR SALE. FEEL FREE TO COPY THESE IDEAS FOR YOURSELF. Step Four:Representing Yourself This is where you prepare to negotiate with buyers and/or agents So you’re now doing everything you can to promote your home without the assistance of a trained professional, and things are seemingly going well.  You’ve got a lot of attention on your home, your phone is set to ring, your advertising is set and ready to go. SELLING YOUR HOME: Having an additional “throwaway phone number” is a good idea since you’ll be getting a lot of calls from people you don’t know, so invest in a prepaid cell phone for your protection.   Let’s say you find a buyer who is interested in your home.  You’ll want to interact with this person and see if they’re financially capable of buying.  This is done via the Pre-Approval letter.  A pre-approval letter does not guarantee a bank mortgage to a buyer, instead, it indicates to the bank that the buyer may be financially capable of being approved for a mortgage.  When you receive a pre-approval, take some time to call the mortgage officer and ask questions about the pre-approval including what that person has done to review the finances of the buyer. When negotiating a price,

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