Tag: Buy A Home

Tag: Buy A Home

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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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“Comps” Why Is It Such A Dirty Word In Real Estate?

By The End Of This, You Will Understand How everyday people view “comps” and what it means to them If you’ve ever had any interest in either buying or selling a piece of property, you can bet that the word “comps” has either crossed your mind, or, have been something you automatically think to produce. But let’s take a moment and think about what “comps” are and more importantly, where “comps” came from in the eyes of the general public. Pt 1: “Comps” & “Commissions” The Dynamic Duo Introducing the public to reality real estate TV shows The public is deeply in love with the idea of real estate and the sheer number of real estate reality TV shows reinforces this. With the click of a TV remote, a tap of a phone screen, or a tap of a laptop mouse, anyone can become immediately immersed in the world of real estate reality TV, and this is no surprise to anyone since reality TV shows have been ragingly popular for the better part of 3 decades now, so it does make sense that real estate reality TV should see its success as well. The issues begin when the watchers of these scripted shows begin to believe what they see and hear from within them. In shows like these, the premise is generally the same: – Main Actor(s) are met with a challenging property / buyers / sellers– Main Actor(s) are faced with a difficult related decision they must solve– Main Actor(s) are attempting to uncover a selling / buying price– Main Actor(s) are “in trouble” but use “comps” while poorly defining them– Main Actor(s) miraculously discover a resolution, at the right time!– Main Actor(s) ride(s) off into the sunset with huge commissions Within that recipe of a reality show, the real estate element will almost always call for “Commissions” and “Comps”.  These are the “bread and butter” of real estate reality TV. Rest assured, these “Commissions” and “Comps” are faker than a $3.00 bill. Commissions – Big numbers bring big ratings.  Imagine if you were a real estate show where the commissions or agent income were the national average…no one would tune in to watch the show.  So these numbers are artificially inflated and are scripted to grow viewership. These absurd “commissions” that get flashed on screen are outrageous and are there solely to “wow” an audience and the word “comps” is immediately recognizable as the major staple of the show, and therefore likely the driving factor for many reality show viewers.   Source: National Association of Realtors / NAR.realtor Comps – Is a shortened way of saying “comparables.”  This is another term that is recklessly tossed around in both reality TV and among everyday people.  When attempting to forecast the present (or even future value) of a property, “comps” are the main source used to do so.  The problem is that reality shows have bastardized this word, so much so, that anyone and everyone firmly believes that they are capable of “comp’ing” properties at their discretion. But what does it mean to “comp” a property in actual real estate terms? Veteran Licensed Real Estate Professional Charles Bianco produces comps in the form of a 15-20 page report that fully details the true value of a subject property.  This report will include, for example, sold properties within the last 6 months that match the subject in terms of interior and exterior square footage, amenities, upgrades, condition, utilities, geographic location and range, schools, equal number of bedrooms and bathrooms, property type (according to building codes) and more. You’ll notice that what he does not cover “what the neighbor listed for” or “what the guy around the block is selling for”, these are not comparables and they are not valid.  We feel bad for the most are licensed bank appraisers.  They are the ones who are being “stepped on” whenever an ordinary homeowner (or unlicensed individual otherwise) feels that they can “comp” their property or a property of interest.   Pt 2: So Then Who Does The Public Turn To? A hero had emerged, or so people had thought… There is an obvious need for information when it comes to real estate, especially since we’re focusing on what may be the largest transaction of many people’s lives…how could there be so few “reliable” resources and choices for people in this area? Since the internet came into existence, there has always been any number of websites touting themselves as the “go-to” website for real estate.  Many have come and gone, but one has always stood out the most, Zillow. Zillow has proven itself to be the #1 real estate information website in the United States and with tremendous financial backing, their having gone public on the stock market, and thousands upon thousands of real estate agents who pay monthly to be a part of the website, it’s no wonder that Zillow has such a hold on the real estate consumer public.  With that said, it’s also no wonder that the real estate consumer public holds their information as the gold standard, if only because whatever source would be considered second place, is a very, very, very distant second place by comparison. This does not mean that Zillow is without its flaws, however. In February of 2006, Zillow introduced the “Zestimate” to the public.  Zillow defines its “Zestimate”in the following way: “…A Zestimate incorporates public, MLS and user-submitted data into Zillow’s proprietary formula, also taking into account home facts, location and market trends. It is not an appraisal and can’t be used in place of an appraisal.” Sounds great, until you realize that the Zestimate does not accurately value a home on actual comparable parameters, it only values properties based on information which is subject to error and its own internal algorhythms. As a result?  Zillow admits that its “Zestimate” and the information they provide is subject to error, and those errors can be significant. Source: Zillow.com | Zestimate Accuracy Stats The above chart was taken

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WHEN ROCKY OUTBID SLY: A PUNCH-BY-PUNCH HAMPTONS HOME SAGA

In the world of high-stakes real estate, it’s not uncommon for celebrities to battle over the most coveted properties. However, the latest bidding war in the Hamptons, Long Island, has taken an unexpected turn, pitting Hollywood heavyweight Sylvester Stallone against an unlikely opponent: his iconic creation, Rocky Balboa. Yes, you read that right. In a twist worthy of its own movie script, Stallone found himself going glove-to-glove with the fictional boxer over a sprawling mansion owned by none other than Patty Caykes. The Contender’s Corner: Sly’s Mansion Dreams Sylvester Stallone, known for his roles in blockbusters like “Rambo” and, of course, the “Rocky” series, set his sights on a luxurious Hamptons estate. This wasn’t just any mansion; it was the epitome of opulence, with ocean views, a private cinema, and even a boxing ring – a nod to Stallone’s most famous character. Stallone, ever the competitor, was determined to land the property, envisioning summer parties and training sessions in the expansive grounds.   From Fiction to Foe: Rocky Enters the Ring Enter Rocky Balboa, the underdog from Philadelphia, who, despite being a character played by Stallone, seemed to come to life to challenge Sly for the property. Through the magic of satire and a little suspension of disbelief, Rocky, with his grit and determination, managed to throw his hat into the real estate ring. Represented by his own real estate agent, Rocky’s offer on the Caykes mansion signaled the start of an epic bidding war. The Bidding War: A Blow-by-Blow Account As the offers flew back and forth, the tension was palpable. Stallone, with his Hollywood earnings, was confident. However, he underestimated the heart of a champion like Rocky, who, despite being a fictional character, had the backing of an enthusiastic real estate agent who believed in the “Eye of the Tiger.” The bids reached astronomical figures, with both parties pulling out all stops. Stallone offered private screenings and exclusive movie memorabilia. In contrast, Rocky – drawing on his everyman appeal – promised community engagement and charitable events. The battle was not just about money; it was about the soul of the Hamptons. The Knockout: Rocky’s Winning Bid In a surprising turn of events, Rocky Balboa, with his never-say-die attitude, clinched the deal by offering a bid that was higher than Stallone’s final offer. The fictional boxer proved that in the world of real estate, as in the ring, determination and a good right hook (or in this case, a hefty offer) could win the day. Patty Caykes, the homeowner, was delighted with the outcome, excited at the prospect of having a cinematic legend (albeit a fictional one) take over her estate. Lessons from the Ring: How to Avoid Losing a Real Estate Bidding War This saga isn’t just a tale of celebrity bidding wars; it’s a lesson in real estate strategy. Here are some tips on how to avoid losing out in a competitive market, inspired by Sylvester Stallone’s fictional face-off with Rocky Balboa: Pre-Approval Is Key: Ensure you have pre-approval for your mortgage to move quickly and show sellers you’re serious. Go Beyond Price: Sometimes, it’s not just about the highest offer. Consider terms that might appeal to the seller, like flexibility on closing dates. Personal Touch: A personalized letter to the seller, expressing why you love the property, can sometimes sway their decision in your favor. Escalation Clause: Consider including an escalation clause in your offer, which automatically increases your bid up to a maximum amount if there are other offers. Stay Informed: Keep an eye on market trends and be ready to act fast when you find the right property. What Sly Could Have Done Differently While Stallone’s efforts were commendable, there were a few strategies he might have employed to make his offer more attractive, despite not being the highest bidder: Highlighting Emotional Appeal: Emphasizing the personal connection to the property or how it fits into his long-term plans might have tugged at the seller’s heartstrings. Offering Non-Financial Perks: Offering to host a charity event at the property or donating to a cause dear to the seller could have added value beyond the monetary bid. Flexibility and Creativity: Showing more flexibility in negotiation terms or proposing creative solutions to potential hurdles might have given Stallone an edge. Final Bell: A Satirical Twist on Celebrity Real Estate In the end, this satirical showdown between Sylvester Stallone and Rocky Balboa over a Hamptons mansion serves as a humorous reminder of the unpredictable nature of real estate

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