Artemisa Boston # 1 Agent Mark Dimas # 1 Team Leader 2022SEPTEMBER|09Vol.Issue9
CENTRAL EDITION Vol. 09 | Issue 9 HAVE YOU READ OUR PAST ISSUES YET? CLICK HERE TO READ US ONLINE! the power is magazinenow Eric Lawrence Frazier, MBA Publisher Office: (800) 401-8994 Ext. 703 Direct: (714) www.thepowerisnow.comeric.frazier@thepowerisnow.com361-2105 EDITORIAL TEAM Sheila Gilmore Editor in Chief (800) 401-8994 ext. sheila.gilmore@thepowerisnow.com711 Daniels George Managing Editor (800) 401-8994 ext. daniels.george@thepowerisnow.com712 Goldy Ponce Arratia Graphic Artist and Design goldy.ponce@thepowerisnow.comManager TheCONTRIBUTORSPowerIsNow Research Team
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STATEMENTIMPORTANTOFCOPYRIGHT:
Pg. 33. Buying in Florida? Take advantage of these 4 items that are negotiable when buying a home, by Adriana Montes.
Pg. 37. 5 things home buyers get wrong when getting a mortgage, by Yvonne McFadden.
Pg. 20. Why do California health care costs keep rising?
Pg. 8. The governor of California signs landmark bill to tackle plastic pollution.
REAL ESTATE NEWS
Pg. 27. Termite report, Blind offers… 10 real estate terms you must know to survive the game!, by Emerick Peace.
Pg. 12. The housing market has been correcting for a while now. Why are prices soaring?
GREEN NEWS
TECHNOLOGY NEWS
Pg. 18. The Place of AI in Real Estate Transactions.
ECONOMIC NEWS
HEALTH NEWS
FROM OUR VIP AGENTS:
MORTGAGE NEWS
Pg. 23. Want to keep your VA Loan on track? Here is how. by Sharon Bartlett.
CONTENTS SEPTEMBER 2022
Pg. 16. Is a pre-approval letter necessary to make your offer stand out in the house?.
Pg. 10. JPMorgan chase commits $30 billion in home and business loans to black latino communities across the U.S.
Pg. 69. How To Deal With Buyers Remorse in 2022, by Jenny Gonzalez.
Pg. 89. Are you ready to become a homebuyer in Mississippi? Here are some considerations to make, by Edwin Engelke.
Pg. 105. Do you understand what TLC means in home buying?, by John Costigan.
Pg. 81. Are you stuck in rental? Here are my 3 tips on how to make it count, by Serina Lowden.
Pg. 121. Ways to make banks say yes to your REO offer in California today! by Monica Hill.
Pg. 39. Perfect your ‘lowballing art!’ Buyer’s guide to the art of offering below list price and actually getting it!, by Tamra Lee.
Pg. 56. The American Dream of Homeownership: Three Incredible Stories of NAHREP Top Agents Making Homeownership a Reality for Americans.
Pg. 49. Are you thinking of waiving some contingencies to score a home?, by Heith Mohler.
Pg. 77. Ready to become a homebuyer in Southern California?, by Kamesha Keesee.
Pg. 45. How long will a pre-approval letter serve you?, by Walter Huff.
Pg. 93. Up your buyer’s game.How to buy a house even before it hits the market, by Francine Marsolek.
COMMUNITY NEWS
Pg. 73. How long does it take to buy a house?, by Ian Batra.
Pg. 101. Are you thinking to go all in with a big offer on a house?, by Janet Petrozelle.
Pg. 109. San Francisco Housing market update: A look at prices, market rates and forecast for Q3, 2022, by Norman Green.
Pg. 113. The 9 mistakes in mortgage process you cannot afford to make this fall, by Steven Rivkin.
Pg. 117. Mortgage pre-qualification and pre-
Pg. 97. New York Housing Market Update: Real Estate trends to watch out for in the next quarter, by Harriet Robertson.
approval What is the difference?, by James Joseph.
Pg. 124. Blackbird House, A Black-Owned CoWorking Space, Is Working To Advance And Support Diverse Businesswomen
Pg. 53. Coming up with an accurate rental property expense report, by Ruby Frazier.
Pg. 85. 3 lessons I learned about paying for my first home, by Briana Frazier.
September is finally here, and so far, so good. It has been a challenging year for many people, but I am thankful we are still here, still soldering on. What I love is that all the challenges are meant to make us stronger and with strength comes growth, and with the growth, we spearhead the campaign to change the housing narrative in the country.
Many people are hurting economically this year, and sadly, businesses, too, cannot keep up. This threatens homeownership which is the core ingredient of the American Dream. The interest rates are so high right now that running a business is becoming a nightmare. According to Jerome Powell- the FED Chair, people should brace for more interest hikes in the coming days. On the one hand, it is understandable why The FED is taking such drastic measures. Still, on the other hand, there is the question of how the government intends to shield households and businesses from the inevitable pain they are about to experience. Even though we are not in a recession, economic indicators suggest that we might be headed straight into one. This is a topic I don’t want to dwell so much on, but I felt the need to shed some light on how the economy is doing has a direct impact on how the housing market will perform in the coming months.
In some other great news, the National Association of Hispanic Real Estate Professionals (NAHREP) released its 2022 top 250 Latino Agents, which is a list that highlights the brightest agents from all cities across the country.
September 2022 FROM THE EDITOR
6 | SEPTEMBER 2022
Dear readers,
The list, according to NAHREP, is comprehensive, and the best part is each agent brings a unique story of personal triumph, overcoming adversity, devotion to their trade, and working every day in their local market to make homeownership a reality for families. It is important that such stories be recognized and retold as these agents have made homeownership their personal mission. On that note, we tell you three stories of top NAHREP Agents; Artemisa Boston of Realty Group, Mark Dimas, the founder of Mark Dimas Properties, and our very own VIP AgentAdriana Montes, who was featured in the top 50 list of NAHREP High performing agents. Their stories are a true inspiration
Remember,friends.knowledge
is power, and The Power Is Now!
At this moment, I would like to thank our power team for their continuous hard work and commitment to making The PIN magazine a reality and also to you, our readers. We would be nothing without you. Our team is dedicated to you. We want the best for you, which means we are committed to bringing you the best from us. Take a moment and share this magazine with family and
to everyone and true proof that hard work and determination pay.
One of the contentious issues we have covered in this edition of our magazine is the rouse the real estate markets have had for nearly two years now. And although the third quarter seemed a little bit different in that there were signs of the market finally cooling down, real estate prices are rising faster in some markets than in others. We tell you why this anomaly is happening and offer you valuable insights to protect yourself from getting carried by this wave.
ERIC L. FRAZIER MBA President and CEO The Power Is Now Media, Inc.
We’ve covered in detail some interesting stories like how JPMorgan Chase has committed $30 billion for the Black and Latino communities all across the United States, we tell you why and how you stand to gain from this.
YOUR VOICE IS YOUR BRAND! INCREASE LEAD GENERATION, AND GIVE YOU THE POWER TO CLOSE MORE DEALS! Join Every Other Friday 10:00 AM - 11:00 AM Promote Your Listings Online CALL YOUR HOST FOR MORE INFORMATION SHARON BARTLETT (800) 401-8994 ext. Sharon.Bartlett@thepowerisnow.com712www.thepowerisnow.com SEPTEMBER 2022 | 7
This September edition is quite interesting as we prepare for the year’s final quarter. There is a lot on our plate, and I am excited for what the year holds.
This issue is fully packed and blended with informational articles to keep you busy throughout the month. We’ve also added a few perks for our real estate agents and professionals, so read on to find out what this issue has in store for you.
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Today, the North Pacific Gyre has 100 million tons of garbage. According to Environment California, plastic outnumbers plankton in some parts of the Pacific 6 to 1.
The governor of California signs landmark bill to tackle plastic pollution
“For far too long, plastic waste has been a growing burden for humans, animals, and the water, soil, and air we need to exist,” said S.B. 54 author Sen. Ben Allen, D-Santa Monica. “We knew that we needed to act. And in this time of extreme polarization in our nation, California was able to show that we can pass strong environmental legislation with bipartisan support that brought together the environmental and business communities.”
GREEN NEWS 8 | SEPTEMBER 2022
In the past, California has established itself as a national leader in the fight against ocean
trash by outlawing single-use plastic bags and microplastics in toothpaste and other washoff products. In late June this year, Governor Gavin Newsom signed the country’s most comprehensive law to reduce plastic trash.
As a result, seabirds, whales, fish, turtles, and other marine mammals mistake plastic garbage for prey. As a result, most of these animals die of malnutrition as their bellies are filled with plastic. In addition, they also have lacerations, infections, limited swimming abilities, and internal traumas.
E
very year, Californians discard 123,000 tons of plastic bags, with far too many of them ending up as waste in our ocean.
plastic collectioncoveredservicegovernmentsBymaterial.recoverycollection,techniquesamonitoringreporting,ThroughCaliforniasuchforhaving1,organizationabyserviceand“certainmaterial,”ProducersbycoveredlogoorlawbycoveredusedlicenseewillcovereddistributorsmanufacturersTheJanuarypackaging—beginning1,2028.lawtargetsnotonlybutalsoofsingle-usepackages.ThislawapplytotheproprietororofthenameorlogotosellorimporttheproductintoCaliforniawholesalersorretailers.ThiswillapplytotheproprietorlicenseeofthenameorusedtosellorimporttheproductintoCaliforniawholesalersorretailers.of“coveredwhichisdefinedassingle-usepackaging”“plasticsingle-usefoodware,”arerequiredthelawtoparticipateinproducerresponsibility(PRO)byJanuary2024,orelsetheyrisktheirabilitytosell,offersale,import,ordistributecoveredmaterialsinrestricted.registration,recordkeeping,andrequirements,suchPROaimstoadoptspecificofsourcereduction,processing,andofthecoveredcompellinglocalandrecyclingproviderstoincludematerialintheirandrecycling
The ResponsibilityPlasticgroundbreakingPollutionProducerAct(S.B.54) will impose fees and regulations to ensure that manufacturers of plastic food containers and single-use packaging must ensure that their products are recyclable or compostable by the year
Similar data must be sent to CalReycle by exporters, brokers, self-haulers, and carriers of recyclables or compost regarding the kinds, quantities, and final destinations of the items they handle.
While recycling and composting operations and facilities must report information on the types and volumes of materials disposed of, sold, or transferred to other facilities, end users, or international buyers, brokers, or transporters inside or outside of California, landfilling facility operators are supposed to submit data to CalReycle on disposal tonnages by the jurisdiction that are disposed of at each disposal facility.
operations, the law also requires the construction of state-mandated municipal recycling programs.
ITS ORIGIN
2022 | 9
S.B. 54 expands on earlier international and national rules and agreements relating to plastic trash, such as the European Union (E.U.) developed a plastics strategy in 2018. According to Sidley, the act aims to reduce waste associated with plastics, enhance plastics’ ability to be recycled, encourage innovation, and come up with global solutions through the creation of internationalplastics-relatedstandards.SEPTEMBER
WHAT THE S.B. 54 ENTAILS
Additionally,2032.itcalls for a 25 percent decrease in plasticcoated materials released onto the market over the next ten years and a 65 percent recycling rate for all single-use
According to David Miree, the former sovereign bank executive vice president and co-sponsor of the funds, the initiative aims to help uplift life standards for people who need the most help deliberately and creatively. According to the Washington Post, black businesses decreased by 40% during the Covid 19 pandemic, the largest
PROGRESS SUMMARY
To date, JPMorgan chase has given out over $13 billion out of the stated $30 billion to reduce the racial wealth gap. It mainly focuses on housing refinance and affordable rental preservation. A further update is listed below;
ECONOMICS NEWS 10 | SEPTEMBER 2022
decrease of any racial demographic. Reducing the racial wealth gap and the Black lives matter movement started after George Floyd’s death and Breonna Taylor were the two major events geared toward allocating the $30 billion funds to serve the less privileged in the community. Due to the initiative, the once locked out Black American and Hispanic Latinos are today successful by providing access, tools, capital that small businesses require, financial services, and fundamental education community members need.
T
JPMorgan chase commits $30 billion in home and business loans to black latino communities across the U.S.
JP Morgan chase is an American finance and banking company formally started in December 2000. The Manhattan cooperation has its headquarters in New York. The foundation intends to bring forth an equitable and all-inclusive economy. It is further committed to uplifting communities, especially the minority, through business motives and investments, helping all people grow and thrive by providing an opportunity for all. JP Morgan invests in research and insights that aid in advancing solutions to policies supporting racial equity. In 2020 the cooperation provided 30 billion to address systemic barriers and bring forth an equitable economy, closing the racial wealth gap in the long run.
he 30 billion dollar initiative announced by JP Morgan chase went across the U.S. It aimed to give black people and Latinos home and business loans to upgrade their lifestyle. The initiative aimed at about 15,000 small business loans, 20,000 refinanced loans, and homes loans of nearly 40,000 and set aside $100M deposits to community-developed financial cooperations and minority-serving cooperates. More to that, JP Morgan is committed to putting up 100,000 affordable housing units in the whole of the U.S
JP Chase has employed over 130 mortgage lender advisors and expanded a property ownership grant to as much as $5,000 in over 6700 minority neighborhoods. Black, Hispanics, and Latinos today can access loans easily through price improvement and credit expansion to longer terms.
JP Chase has opened more than 200,000 accounts that are of low cost and require no charges for the draft. It has also employed 72 community managers in its community center branches which are 9. The managers build and nurture relationships with community leaders, small businesses, and non-profit partners in underserved communities.
So far, the cooperation has given out $128 million in its target to give $2 billion in 5 years. The funds have been provided through low-cost loans, equity, and grants, and by the end of the year, it is working towards giving $400 million.
SEPTEMBER 2022 | 11
So far, the cooperation has a strong reporting and governance procedure to consistently track the target commitment of $30 billion run by the community impact organization.
COMMUNITY-DEVELOPED FINANCIAL INSTITUTIONS (CDFIS) AND MINORITY DEPOSITORY INSTITUTIONS (MDIS)
FINANCIAL HEALTH
HOMEOWNERSHIP
JP Morgan Chase has allocated more than $100 million equity in diverse owned CDFIs and MDIs helping over 87 communities in the district of Columbia and the other 18 states.
GROWTH OF SMALL BUSINESSES
Almost 1000 small business owners have been mentored so far. JP Morgan has employed over 20 senior business consultants to provide free one-on-one education programs on running the business in over 13 U.S cities.
CONCLUSION
PHILANTHROPY
JP Mortgage Chase to have hired 4000 blacks by 2024. Three thousand eight hundred are already employed as interns while hiring entry-level analysts is in progress. It has also grown its partnership with universities and colleges from the initial 3 to 17 to deepen recruiting partnerships and expand curriculum development, mentorship programs, and scholarships.
JP Morgan looks forward to hiring more managers, home lending advisors, and SME consultants. To achieve this, the bank will continue expanding homeownership by putting up more FHA loans, building affordable housing units, ensuring people have access to credit for their small businesses, and employing minorities for a representative labor force.
JP Mortgage has spent about $ billion on financing the monthly mortgage rates. Out of a $20,000 incremental loan, it sponsors about $16,000, balancing with the low rate environment in the current market.
WORKFORCE
MORTGAGE REFINANCE
ADDITIONAL ACTIVITIES
The cooperation, other than closing the wealth racial gap, has also steered other activities such as investments above the $30 billion plan. Such projects include Empower money market share class, having invested more than $200 million in project black.
REPORTING AND GOVERNANCE
The housing market has been correcting for a while now. Why are prices soaring?
LOW SUPPLY AND HIGHER DEMAND
T
Like any other industry, real estate is governed by supply and demand. In a market with more home buyers than homes available, supply goes down, resulting in tighter inventories.
havethere reducedbeeninterest rates which lead to higher market prices. The number of unemployed people is decreasing, making more people feel secure about their job and thus qualify for mortgages. In an economy with more people employed, there is a lot of money which leads to high home prices.
he housing market in the United States keeps on going up. Market prices are affected by the property’s size, location, and condition. Political and economic stability are external factors that as well alter prices. Generally, when the economy is stable, prices go up. Reasons that lead to the higher cost of homes include;
loans in large amounts, leading to overpriced homes. If lenders reduce the money they give out, home prices automatically decrease. Covid-19 over the last two years saw many people move from cities to the suburbs for various reasons. Also, many renters opted to buy homes leading to high real estate market demand, surpassing the number of houses available.
As a result, home prices go up. Note also that in the current market, it is rare to find cash buyers; consequently, mortgage lenders are numerously available to give
INTEREST RATES
Low-interest rates have been evident in the last two years. Such rates make buying an expensive home possible and encourage more buyers, leading to competition for property in the market. With low rates, one pays less each month but over a more
REAL ESTATE NEWS 12 | SEPTEMBER 2022
THE ECONOMY Immediately after Covid 19 struck, most jobs were closed for the better part of the year leading to higher unemployment rates. At that time, homes were selling at a lower price, and fewer buyers were available. However, towards the end of 2019, most companies reopened, trying to revive the economy. Recently
HIGHER COSTSMATERIALCONSTRUCTIONANDLABOR
The great recession caused many real estate investors to losses, especially with new constructions lowering their confidence as builders. Lesser number of builders in the market affects the home price in favor of sellers
A home near a school or company is more attractive since children commute shorter distances and have high employment rates. Serene and exquisite areas are generally beautiful and thus fetch higher market prices. As experienced in the last two years, a large group moved from the highly crowded cities to quiet suburbs
Covid 19 affected zoning regulations governing the neighborhood and population density in various places by reducing the number of houses available for sale and making homes expensive, especially in urban areas. It is because such regulation limits the number of new homes and how they are Homesbuilt. in the Bay areas are practically more expensive than in other states due to the influx of wealth in such areas as San Francisco and its outskirts. Home to significant tech companies, wages are relatively higher and unemployment rates lower, leading to a more robust economy. For instance, the median home sale of a house in San Francisco rose to $1.6M.
The condition of the neighborhood is a significant determinant of whether market prices will rise or go down.
most construction materials are imported hence affected by changes in trade agreements. The current labor cost is higher compared to previous years. As a result, fewer houses are built because the building process is almost impossible and thus leading to fewer new house listings and tighter inventories. Skyrocketing fuel prices make transportation of building materials more expensive. Until the market prices reduce, the construction cost and final market price will be higher.
Generally, land appreciates while a house itself depreciates. An increase in land value leads to higher market prices. Today’s land value is much more than it was in the previous years; thus, sellers take advantage.
favorable for remote working. Remote areas experienced higher market prices due to high demand and inventory levels. A home away from too much traffic is more expensive than those in noisy places.
INCREASE IN LAND PRICES
LOCATION OF THE HOME
The Covid 19 pandemic is associated with higher production costs as many industries strive to get back on foot; most construction materials are more expensive than before Covid 19 hit the market. Take note also that
extended period. Recently a 30-year mortgage can be extended, which seems a good deal since lenders require a lesser amount. However, the overall cost is higher.
Heavy tariffs imposed on imported building materials increase the property’s market price. However, since 2018 it has been possible to deduct mortgage interest o a loan up to $750,000, which has also increased market
SEPTEMBERprices.2022 | 13
POLITICAL FORCES
Purchase Price of Home: $350,000 First Mortgage Loan: $339,500 Down Payment and Closing Cost Assistance from GSFA*: $23,765 Total Assistance Program Highlights • No first-time homebuyer requirement • 620 FICO’s score minimum • Down Payment and Closing Cost Assistance Available Toll Free: (855) 740-8422 E-mail: info@gsfahome.org Website: gsfahome.org *Advertisement contains general program information, is not an offer for extension of credit nor a commitment to lend and is subject to change without notice. Example based on 97% Conventional First Mortgage Loan combined with 7% in down payment and clossing cost assistance. For complete program guidelines, loan applications, interest rates and annual percentage rates (APRs) contact a GSFA Participating Lender. Golden State Finance Authority (GSFA) is a duly constituted public entity and agency. Copyright © 2021. Your PATHWAY to HOME OWNERSHIP DOWN AVAILABLE!ASSISTANCEPAYMENTNOWYoumaybeabletopurchaseyourdreamhomewithlittle-to-nomoneyoutofpocket! CALL TODAY TO LEARN MORE
WHAT IS A MORTGAGE PRE-APPROVAL LETTER?
When you are not sure how much you can afford. Budgeting for a home requires one to have an estimated amount. When one does not know the number of money
Amortgage
WHEN IS A PRE-APPROVAL LETTER NECESSARY TO MAKE AN OFFER ON THE HOUSE?
pre-approval is part of putting your financial ducks in a row. In today’s hot market, having a letter that is up to date increases the chances of an offer standing out. However, in some instances, it is not necessary to have one.
A mortgage pre-approval letter is an assurance from the lender that you are qualified for a specific amount of money as a loan. It is gotten by underwriters scrutinizing a buyer’s financial documentation such as pay stubs and tax returns and finally drafting the letter showing the amount one will get. Since it involves a lot of work, it takes up to one week before the lender can have it. Pre-qualification and pre-approval are interchangeably used, but one needs to know the differences to avoid confusion while undertaking the buying process and losing chances to win a bid.
MORTGAGE NEWS 16 | SEPTEMBER 2022
Is a letterpre-approvalnecessaryto make your offer stand out in the house?
When a buyer is in a super competitive market, in recent years, most of the U.S has been a seller market, indicating that there are more buyers than the actual number of homes available for sale. Sellers then receive multiple offers on a property upon which they have to choose the best. As a buyer, you are responsible for making your offer the best among others. A mortgage pre-approval letter while making an offer makes the buyer appear severe, confident, and even ready to close on a house. Impressing the sellers increases the chances of falling into good grace and winning a bid.
ADVANTAGES OF HAVING A PREAPPROVAL LETTER
Having a pre-approval letter is much better compared to making an offer without. Being more complex, it shows the seller that finances are verified and that buyer is ready to proceed to close. Clearness increases the chance of winning a bid and smoothens the home purchase process. When a home purchase runs smoothly, the buyer will create a long-term working relationship with the realtor.
One is an ideal buyer. A perfect buyer has a stable job and a solid credit past. Such people have more potential to receive a loan and are in a better position to service it. Buyers make an offer with no fear of them lacking Anotherfinancing.instance
123RFFROMPHOTOS
TYPE OF REALTOR
IN INSTANCES WHERE PREAPPROVAL LETTERS ARE NOT ANECESSARYbuyerisacash payer. Cash payers do not require a loan to buy a home since they already have it. Instead of giving a pre-approval letter, they present a proof of fund together with their offer. More often, such buyers have more chance of winning a bid. Pre-approvals are only given to finance buyers.
buyers to make an offer as soon as they see ‘the one. A preapproval letter before making an offer increases the chance of winning a bid on a home. It is because a lot of time spent waiting for pre-approval from lenders is eliminated as it was done earlier.
It is a requirement for some realtors for one to have a pre-approval letter. It makes work much easier since they narrow down a property to visit and in what location, reducing time wastage. However, realtors should show the property to potential buyers before a
pre-approval. Depending on the realtor one is working with, a buyer must meet their terms and conditions.
Itquestion.enables
lenders will give, buyers must have a pre-approval letter. Note that there are instances a buyer will make large purchases after having a pre-approval, such as buying a car or a set of seats interfering with the amount one will receive. When such happens, buyers refresh their approvals to work on the current budget. As an individual, one also calculates the debt to income ratio to know whether paying a specific amount toward a mortgage will allow one to have still other savings such as retirement plans and fees for college. After learning the number of money lenders give, house hunting becomes easier since buyers will focus more on property within their finance bracket.
One is a than-than-ideal home buyer. Being a less than ideal home buyer means having a credit score below 640, one is self-employed or having fewer employment years. It is a requirement to have a pre-approval letter in such times to confirm to the seller that you are worth buying the property in
where a pre-approval is unnecessary is when the seller has a particular buyer in mind. It could be a friend or a relative. With that, competition is eliminated, and both parties proceed with other processes.
Artificial intelligence is rapidly taking over in many sectors today. From self-driven cars to early cancer detection, we can tell that almost all services are online. For real estate, brick-and-mortar might be the only tangible process that has not adapted AI. Real estate has seen AI become mainstream by incorporating algorithms and data pipelines. Real estate first adopted AI in 2018. The transaction involved selling out two properties worth $26 million in Philadelphia using an algorithm called soon-to-market detection. The idea came up after assessing numerous data points such as the potential value of the home, characteristics of the house and key performance indicators, likelihood of catastrophes such as floods, and property local market status. The data points were carried out to find the market potential of the homes which saw successful selling.
AI in real estate companies are process improvements, excellent products and services, and a competitive advantage that positively affects business performance and revenue Applicationgeneration.
Soon most real estate companies will adopt real estate. It is foreseen that by 2023, $97.6 billion will be put toward AI in real estate. Companies such as Zillow, which are already using AI, enjoy an excellent competitive edge, while those resistant to artificial intelligence adoption are losing on the competition. 49% of real estate companies admit that it is operationally more efficient and saves on cost, while 43% of the companies claim AI can significantly generate disruptive impact. Some advantages of incorporating
PROVIDING RECOMMENDATIONA TO CUSTOMERS
of AI in real estate
Large real estate companies have thousands of properties to
18 | SEPTEMBER 2022
TECHNOLOGY NEWS 123RFFROMPHOTOS
sell out. It can be cumbersome for a buyer to find the right property and time-consuming hence realtors use AI to narrow down specific properties by tailor-making a list of suggestions that go hand in hand with what suits the buyer. For instance, some of the specifications the buyer wants might be a four-bedroomed house with a specific size per square foot in a given location. In such an occurrence, AI will provide a list of suitable homes with similar specifications, making it easier for the buyer
The Place of AI in Real Estate Transactions
Real estate is applying artificial intelligence in various ways, such as;
AI practically streamlines the many processes involved in the rental market, such as rental applications and transactions generating lease agreements and disclosure statements. AI manages property in different ways, such as creating documents by default so that investors focus on other tasks. They also scan documents to detect problems such as empty fields and missing signatures. It also boosts communication between renters, property managers, and landlords by responding quickly to any question from the renters and sending utility bills and notices on time. It helps property managers take care of accounts by keeping records of rent transactions, payables, and receivables and updating tax payments.
Real estate investors take advantage of artificial intelligence by incorporating consumer apps and Chatbots to give customized content daily to prospects. Chatbots in real estate influence the
Since Covid 19 struck the globe, it restricted movement, meaning that house hunting activities came to a stop but are slowly improving. Real estate adopted AI on virtual tours on the property, making it possible for prospects to view a property from all over the globe. The process is not only cheaper but can serve a large group of people at the same time. The method is slowly dominating the market since it is cheaper and prospects know what a house looks like before visiting it.
SEPTEMBER 2022 | 19
AI can predict future rent and home sale prices using human experts and the weatherbyresultsinvestorsfluctuation,predictingassistsmaximizeriskshelpsartificialfuture.optionssuitableandlatestestablishesanddatabaseavailableanalysisforecasts.ItthemarkettrendsthenindicatesinvestmentintheBysodoing,intelligencereducetheinvolvedandROIs.AIrealtorsinthemarketwhichandfuturehighlyvaluestudyingglobalpatternsand
future of property business. According to experts, real estate agents should respond to prospects within five minutes. Over 70% of prospects stick to fast-responding realtors. Chatbots respond to clients without tempting sales notifications and showing signs of acquiring prospect details. They answer questions about the type of home a prospect would prefer, budget, and preferred property location. Property simple is an excellent example of a real estate company that uses artificial intelligence to market homes.
complex markets. For successful market analysis and future valuation, artificial intelligence gathers market data and public information such as security, means of transportation, sources of light, traffic in the neighborhood, schools available within the surrounding, and purchasing trends. That information helps the realtor know the best time to buy and sell the property.
PERFORMS MARKET ANALYSIS
CONTENT MARKETING
to choose. Impressively, it gives first-time buyers profiling techniques with generous offers demographic contribution and attributes that worked well with previous clients, and thus, home hunting becomes a lot easier.
PROPERTY MANAGEMENT
VIRTUAL TOURS
HEALTH NEWS
for about $1500 in the U.S as opposed to $400 in Britain. Also, opening a blocked vessel in the heart has an average price of $30,000, while in Switzerland, the cost is $7500.
High health care costs are soaring periodically, especially among people with job-based coverage. The incidence is evident in California and the whole of the U.S by paying high deductibles, insurance premiums, and co-pays, among other expenses. It results from government policies involving Medicare and med cards, which help people with no health insurance. California’s cost remains to be exceedingly high compared to other nations.
PRICES, UNLIKE UTILIZATION, ARE THE DRIVING FACTORS BEHIND CALIFORNIA HEALTH CARE COSTS
Why healthCaliforniadocarecostskeeprising?
California is said to be the 16 most expensive city regarding selected health care prices when the age difference is accounted for. Inpatient, outpatient, prescription of medicine, and other health-related professional services fetch the highest prices while utilizing these services has significantly fallen. Health care cost institute analyses the claims and based the results on Californians less than 65 years of age with job-based coverage. For example, health care services have grown compared to other health services in recent years in California. It is difficult to, however, solve the issue by addressing matters affecting health care costs specifically. In 2017 alone, 14% of people having job-based coverage were said to have gone through drug prescriptions, while at the same time, more than 30% required professional services. On the other hand, 23% needed outpatient services while another 23% needed inpatient.
MUCH HIGHER PRICES IN SOME CALIFORNIA CITIES THAN IN OTHERS SHOWING HIGH HEALTH CARE INDUSTRY CONSOLIDATION
The United States is known for a lot more on health care on a single person, yet it has the poorest performance on access outcomes on health care, equity and low administrative efficiency. According to the 2003 health care article, higher health prices lead to higher spending but less health care services per individual hence the name stupid market prices. The higher prices are evident with inpatients, outpatients’ procedures and drugs in California than in other countries. For instance, an MRI goes
According to UC Berkeley Petris Center research, prices for the same healthcare services vary considerably among Californian regions. They are related to the degree of market consolidation in each area. The national research supports these conclusions. A limited number of hospital systems, medical associations, or insurers control a sizable portion of the market in consolidated markets. The market becomes less competitive, and prices rise as it becomes tighter. In this state, there is a fair amount of market concentration among primary care doctors. These results demonstrate horizontal sector consolidation.
HIGH HEALTH PRICES
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The United Food and Commercial Workers International Union, Employers Benefit Trust, and class action plaintiffs were the plaintiffs in the lawsuit. They claimed that Sutter’s anticompetitive practices were to blame for “higher healthcare expenditure for patients in Northern California compared to other places in the state.” Sutter will pay $575 million in monetary damages, restrict the number of money patients are delivered outside their insurance networks, make price information more
The Petris Center’s 2018 research revealed that, within all sorts of healthcare markets, Northern California markets “are much more concentrated” than Southern California markets, even though healthcare markets are highly concentrated in the state. Prices rise in correlation with concentration levels: Even after accounting for labour, the cost of medical procedures in Northern California is frequently 20 to 30 per cent more than in Southern California. Northern California had much higher insurance premiums than Southern California did via Covered California.
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The massive proportion of our budget for administration is the other key factor in why we spend so much more on health care than other high-income nations. This increased administrative spending, primarily that connected to billing and insurance-related tasks, is frequently categorized as “wasteful health expenditures” that may be decreased or avoided with the simplicity of our healthcare system. An average of 12% of premiums for Californians with employment insurance through many corporations in 2017 went toward the administrative costs, sales and commission expenses, earnings, and taxes and fees of the insurers. These cost areas accounted for 19% of small group insurance rates. The remaining premiums paid for claims for covered medical
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Another significant result from the Petris Center studies is a sharp rise in “vertical consolidation”— that is, sector-to-sector consolidation—with hospitals or health systems owning 52 per cent of speciality physician practises in California in 2018, up from only 25 per cent in 2010. Over the same period, the proportion of primary care doctors working in clinics run by hospitals or health systems increased from 24 to 42%.
to control those expenses to comprehend the factors contributing to our high and rising health care prices. According to research, our high expenditure levels in the United States are caused considerably more by how much insurance and treatment we pay for than by how much care we utilize. The high level of bureaucratic complexity in our country’s healthcare system and high levels of industry consolidation in the healthcare sector with little supervision of prices are significant elements driving the price problem.
ADMINISTRATIVE COMPLEXITY.
STAYING ABOVE YOUR CREDIT
Pre-approval is not a guarantee that an individual will receive a loan requested, and indiscipline with credit is incredibly a bad idea. An individual who is financially indisciplined if he or she is always on the high debt collectors and such scenarios can greatly jeopardize the possibility of getting a loan. As someone who intends to maintain a good credit card report, it is advisable to pay debts on time, and of course, one has a stable worth to rely on.
By Sharon Bartlett
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Want to keep your VA Loan on track? Here is how
AVA
It is advisable not to make purchases that require a lot of money, such as buying a new car or new set of seats, especially when working on a credit score and before closing on a property. It is dangerous for a person to get major purchases and can be a reason for a mortgage lender to deny a prospective buyer a loan. A buyer can then make the purchases after closing but be aware that it will affect the debt to income ratio.
loan is a type of loan that is given to veterans and their surviving spouses by the U.S government. To keep the VA loan on track, it is important to carry out strategies such as;
DO NOT MAKE ANY MAJOR PURCHASES
MAJOR CAREER CHANGES
Major career changes lead to lower credit points if not well taken care of. Lenders have to the on the buyer’s employment status before the closing dates. Changing a job does not result in automatically being denied a loan. It
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can be given, but the process will take longer. Regarding career, remember that VA loan is given to veterans who are out of the job due to some condition but not any form of financial discipline.
A VA loan, just like any other loan, requires those that are legible to have with them all financial documents needed, such as tax returns and pay stubs. It is also necessary to clearly indicate who you are as a buyer and why you need the loan and also assure them that you will pay the loan in time and clear it in the near future. Some of the documents that the mortgage lenders need are a VA disability award letter, pension award letter, and military retirement account statement, among others.
DISCOVER YOUR VA ELIGIBILITY AWARD EARLY
BE READY TO ANSWER QUESTIONS
HAVE ENOUGH PROOF OF SPECIAL CIRCUMSTANCES
For example, a mortgage lender may need a pay stub to approve a mortgage. For example, there was an instance where the mortgage lender asked for a letter from the mortgage borrower, which indicated that they had a longterm working relationship and also stated the amount of money paid to the borrower. Several other reasons lead one to apply for a VA loan, such as when two spouses want to separate. As a borrower, one must show a proof list of enlistment beyond one year and re-enlistment. A letter from the commanding officer and the alive and well certificate is also necessary.
CHOOSE A PROPERTY THAT IS VA APPROVED
A borrower of a VA loan requires proof of eligibility. Clients of the award consult their mortgage lenders, who instantly check online and give the certificate to the individual in need of it. There are cases whereby not recorded online, making the process take a little is bit longer, normally a few weeks or even months. In such instances, the buyer will go to the mortgage lender, who will further guide the veteran on going about the whole issue. Clients should know that only military veteran is legible to have such certificates.
HAVE ALL THE IMPORTANT DOCUMENTS READY
During closing, one seeking a VA loan must complete the VAs minimum occupancy requirement, which is a document indicating that one is willing to occupy the home.
A loan officer normally collects documents and forwards them to the underwriter to review and approve them. It is normal for the underwriter
to ask for additional information which they find necessary. Loan borrowers should not be afraid of such incidences but answer as quickly as possible for a faster closing. Alongside the documents include additional personal information such as phone number and email address so that underwriters communicate easily with the loan borrowers. Responding to the questions asked faster fastens the process of loan approval.
Buying a house is the most common reason why one gets a VA loan. However, it is important to know that such loans restrict the property one is buying. That is, a VA loan cannot be applied on vacation or commercial property. The house must be a residential one. Veterans should also be aware that only VA-approved condominiums qualify for such types of loans. Thus when looking for a house in a condominium, they should also check the VA condo database to know if they are still on the right track.
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A pre-approval letter is an estimate amount of how much a bank or mortgage broker will
interest rate over a given period of years. 15 years and thirty years are used in most cases. It is advisable to use this payment plan if a prospective buyer intends to stay in the house for a longer period of time and less risky.
10 real estate terms you must know to survive the game!
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Before deciding on what mortgage to choose visit several mortgage lender and pick on the best in the market. At such point people consult family and friends or even professionals to guide someone throughout the whole process.
In the realtor market, both agents are involved before purchasing a home. A buyer agent represents the buyer and thus negotiates on his behalf. He is not paid by the buyer but rather gets a commission from the seller. Listing agents on the other hand represents the seller and is the one responsible to listing the property and speak on behalf of the seller. In most states, it is illegal to have one agent as a buyer and at the same time a seller.
When refinancing a loan, there are basically two types of mortgage payment plans. A fixed payment is one which has a predetermined
Adjustable mortgage rates are those with interest rates that vary. Such loans take up to 10 years in order to pay. People that use this mode of payment are people that intend to refinance or sell the home before introductory period ends.
PRE-APPROVAL LETTER
Termite report, Blind offers…
t is important for a person in the real estate field to know several of the term used. Among such terms is;
BUYER AGENTS AND SELLER AGENTS
I
By Emerick Peace
FIXED RATE AND ADJUSTABLE RATES MORTGAGE
LISTINGS
lend you. It is a requirement before mortgage application and house hunting. The letter is essential since it helps the buyer to tall how much they can afford to get a home. A prospective buyer should know every in an approval letter, fees involved, closing costs and specific interests. That way it is easier to plan for the money. With competitive homes it is important to have a local lender who is in search for good reputation since they mostly rely on referrals. Ut is easier to work with them in search cases and most listing agents chose them over others.
needs to buy a given property. Both parties counter offer toil they get to a common figure.
CONTINGENCIES
Home inspection is normally carried out immediately after making an offer on a given home. Professionals are involved in the unveiling the nooks and cranny in the household. Determine the condition of pipe fitting and
In real estate, contingencies refer to certain conditions that must be met either or both parties before home purchase or home selling. For instance, as a buyer you should have a financing contingency showing that you are capable of financing the loan. Another example is the inspection contingency which indicates that inspection does not show anything of concern. In stiff markets waiving or shortening the contingencies is necessary so as to speed up the process since they are of many types.
Buyers are expected to pay for the insurance as part of closing costs. It is a type of insurance that compensates the buyer if they lose their home as a result of title dispute. The insurance searches public records and ensures that the home buyer is the right full owner of the home title and that there are no lies on the home such as tax and contractor debts.
They are costs mostly 2% to 5% of the total home price but are not part of the home payment neither do they add home value to given property. It is advisable that buyers consult mortgage lenders on such cost and ask which of them are negotiable. It is also good to visit multiple lenders to ensure that one picks the best and in the long ruin save a lot of money.
check whether the home poses any health hazards. In case problems are found with the homes, the buyer bargains for either price reduction or ask the seller to repair. In extreme cases the prospective buyer backs out. Most buyers especially those new in the market often skip this stage. Home inspection should be treated with a lot of concern since failure to do so buyer risks a lot of unexpected expenses in the future.
TITLE INSURANCE
APPRAISAL
Appraisals are done when a prospective buyer visits a mortgage lender on search for a loan. It is a requirement that buyers with the help of professional conduct a comparative market research on home prices in the neighborhood. The reason behind is that one does not buy an overly charged house.
OFFERS
CLOSING COSTS
The tem mostly used by real estate agents is used to refer to homes indicated in a given website showing the house and its number of bedrooms. Such information is found in different real estate websites where by information is up to date. Most brokers have access to such sites and know which ones are up to date thus can identify which ones are more accurate than others. It is not always advisable visit sites without affiliate brokerage.
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Normally one makes an offer on a home. At times the seller gives a counter offer indicating that they either want more money or to shorten the closing dates period. At such points it is necessary to involve a realtor to help in negotiation. The buyer negotiates by drafting a letter showing why he/she
HOME INSPECTION
We’re Starting Over, Inc. a 501(c)(3) organization dedicated to supporting and uplifting people experiencing the effects of mass incarceration, systemic racism, housing insecurity, substance addiction, and mental health issues. We believe that people impacted by these issues are the ones closest to the solutions, which is why we are a Black led and criminal justice impacted organization engaged in this work. From experience, we’ve learned that housing is critical, but alone, it is not enough to support those exiting prisons or the streets. We not only provide transitional housing, but also include holistic services such as peer support, case management, employment, wellness, and re entry services. We also work to address the root causes of our houseguests’ difficult situations, leading grassroots organizing and policy initiatives in the Inland Empire region and statewide. Established in 2009, we’ve served over 1,400 men, women, and families in Riverside and Los Angeles Counties through the re entry and transition process.
Starting Over, Inc. is committed to reducing and eliminating the many barriers to life after incarceration. We have a deep commitment to identifying and implementing evidence based approaches to strong communities and families. We seek to creating program/project solutions where the need exists in our community. We do lots of things at Starting Over, Inc. but our primary goal is to address the immediate effects and root causes of incarceration, be it through housing, employment, legislation, or community organizing.
T t i l d ith i itiatives, access our services, or support our work through donations, you can or office@startingoverinc.org.
Where Starting Over happens every day! Riverside,
www.startingoverinc.org 6355 Riverside Ave Suite 100,
CA 92506
We believe that the past does not define our future. We’re invested in creating safe and equitable opportunities for all members of our community, and especially those with past convictions. Housing opportunities are crucial for our community members and directly affect their ability to thrive.
Through our Path to SEED program, we connect guests and community members with employment opportunities and provide training & support regarding obtaining and retaining employment, often a major hurdle for formerly incarcerated individuals
Policy Advocacy
Mass incarceration affects not just individuals, but families many of our community members and guests experience family separation at the hands of the child welfare system. The FREE Project is system impacted led and organizes parents and family members in a non judgemental space, advising on best practices and dependency court procedures We recently sponsored and passed statewide bill that eliminates major barriers to child placement and allows family members with criminal convictions unrelated to caring for children to be considered as placement options allowing for suitable family members with criminal convictions to step up in times of crisis
Our programming and projects include, but are not limited to: (951) 898-0862 office@startingoverinc.org
Our houseguests are not alone our support specialists, having experienced incarceration, addiction, and homelessness themselves understand our guests' needs and the barriers they face. We’re here to meet our guests wherever they are in their journeys and to support them moving forward through empowerment, support with recovery, referrals, and mentorship
Marshall Legal Clinic Employment
Transitional Housing
In the past year, we’ve co sponsored and/or supported nearly a dozen statewide bills to reduce the scale of mass incarceration and its collateral consequences We’ve also worked locally to influence Riverside County to reduce criminal history look back periods from 7 years to 3 years in 2017 and to enable youth coming out of probation to be able to stay with their family members in subsidized housing
Family Reunification, Equity, & Empowerment (FREE) Project
Case Management Peer Support
Our free clinics provide relief for expungements, wills/trusts, immigration, and more with the support of local legal organizations
Our Participatory Defense organizing model (based on Silicon Valley De Bug) empowers family and community members in the courtroom to positively impact their loved one’s outcome and to bring them home. As fiscal sponsor and start up organization of Riverside All of Us or None (a chapter of a national initiative of formerly incarcerated people, family members, and allies advocating for the rights of the currently and formerly incarcerated people) we ensure that system impacted leadership remains at the center of the fight to keep our community together and address the social problems that incarceration purports to solve Our community outreach team also disseminates voter registration and public health information regarding COVID 19, and we organize food and clothing relief for community members in need.
We currently operate eight homes in LA and Riverside Counties open to men, women, and children, with options for sober living or harm reduction housing All of our services are available to our houseguests, many of whom have been unable to obtain housing after being released due to their conviction histories
Grassroots Organizing & Civic Engagement
Our Case Management specialists provide support to our guests with obtaining necessary documents/identification and accessing insurance, education, healthcare, clothing, food, & more.
By Adriana Montes
If the house being sold is in a seller market then since the seller intends to sell out the property as fast as possible, then the seller will take all the closing costs. In such occurrences the buyer has more money to take care of the renovations for the house.
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CLOSING COSTS
Florida
Buying in Florida?
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Closing cost can be hectic especially if the buyer is a first time home buyer. The costs can be a first time or final deal that the parties take. Closing costs include loan fees, lender title insurance and also the inspection costs. The good thing is that the buyer can ask for a negotiation of part or the whole amount that in required in the closing which are usually either 2% to 5% of the total home price but are not inclusive of the home purchase price.
Take advantage of these 4 items that are negotiable when buying a home
is located on the south eastern parts of the U.S. On one end it is surrounded by the Atlantic and on the other it is surrounded by the Gulf of Mexico. Being a big state with numerous beaches the cost of living in various parts varies. When considering buying a home in Florida it is advisable that the prospective buyer carries out careful research so that they choose a house in a locality they can comfortably afford. If it is a retirement home then it would be a good idea if an individual looks for a house that is in the remote areas since it is rather quiet. The suburbs are also suitable for people that work remotely. There are also various items that are considered negotiable in the home buying process. They include;
Houses that after inspection indicate problems that need to be repaired can be bargained for more easily. Property being already under a contract, the buyer has the right to ask the seller to repair the home before the closing date or the buyers under takes the cost of repairing the
When negotiating about repairing a house, the buyer should have a clear list indicating all the problems to be mended. For instance indicates the broken pipe fitting, worn out paints and use the terms of contract as the checklist and should be done before the closing date.
Other reasons as to why a buyer negotiates are due to the market rates. Before purchasing a house, it is necessary for a buyer or his realtor to find out the market price of similar neighboring homes. Such negotiations also depend on the location and condition of a property.
FURNITURE AND FIXTURES
Another option for negotiating on home prices is by assuming the current mortgage rates of the home seller. However most lenders do not like using the method but if it is considered a first time home buyer will be able to save huge amounts of money and spare it for renovation and moving costs.
A good example is when a buyer pays interest rates of say 2% and the rates rise to about 8%. Then bit indicates that the buyer will purchase the home and continue paying an interest rate of 2% just as the home seller was paying initially.
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REPAIRS
HOUSE PRICE AND MORTGAGE LOAN POINTS
However in the recent years, most property being sold out is on a seller market but it is still possible for buyers to negotiate. The buyers ask seller to reduce part or all of the closing cost since in it is beneficial to the seller in that he or she want to finish with the closing process and if the seller takes the whole closing cost price, then it means that the home fetches a higher price in the long run.
Some realtors argue out that as a buyer one can literally negotiate for anything that comes with the home such as light fixtures, sinks, showers and lawn care items. Most commonly light fixtures and other major appliances such as oven are sold together with the property. As a seller move it is a common practice to carry furniture along but there are instances where by buyers fall in love with furniture provided and ask for a negotiation. Negotiation means buying the home at an extra cost which may destabilize a home buyer more so if the person does not have a lot of money or had no plans to include the furniture. After the seller accepted the negotiation offer, then they write down a list of items that the seller would love included in the new home such as seats, chandelier and other appliances. Both parties then decide on the terms of payment ans home purchase process follows.
The time to close an offer is also essential in that and when a buyer is flexible and up front, then the buyers are able to listen to the seller and determine what they would like. Negotiating on the closing time is easier since most home owners have an idea of their n closing needs.
While still negotiating the buyer can ask the seller to buy, mortgage points on their property as a way of acquiring deductions on tax. Mortgage points are important because a buyer receive less interest rates on the property. Note however that a buyer can at the same time still bargain further to get more favorable interest rates from the seller.
house but they must first agree that the home will be sold at a lower price.
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In such instances, it is common that home buyers search for homes that are more expensive making the buyers to have a burden when servicing the loan on a monthly basis. This is because mortgage lender normally checks for dent to income ration in order to determine how much money to lend a given buyer. It is difficult to account for small expenses such as health care, groceries and personal care items which in case they come up the buyer then strains
By Yvonne McFadden
When home buyers enter the home searching process prior to getting pre-approved, the process might be tiresome and at the same time unsuccessful. The pre-approval letter is very important as it inform the buyer of how much one can afford to buy a house and also the correct
to meet costs. Buyers also waste a lot of time when looking for house they cannot afford and also looking for homes way cheaper than their rates. It is easy for one to fall in love with a house which is way too expensive and getting over such situations is difficult. In order for buyers to have the right budget for home buying, they are advised to have the right budget so that they can determine how much one can spend and also ease house hunting and spending less time.
5 things home buyers get wrong when getting a mortgage
a home is an exciting process. However it is common to make mistakes when acquiring a mortgage with both new home buyer and even those that have bought on several occasions. Among the issues those homes buyers do not get right are;
NOT KNOWING HOW MUCH A BUYER CAN AFFORD
Buying
LOOKING FOR A HOUSE BEFORE GETTING PRE-APPROVED FOR A MORTGAGE
In the home buying process ,most people focus more on the conventional loans and ignore other types of loans which in the long run are more affordable. For example there is the FHA loans that are normally backed up by the federal housing administration. Such loans require less down payment and protect the lender in case of loan default. VA loans are also available in that they minimize the buyers risks and are normally backed up by the veterans affair department.
Most home buyers get new homes and pay them on loans. However there are instances we have cash buyers. If a mortgage is involved it is wise to consider the five element stated above to ensure smooth running of the process and get the home with the terms.possiblebest
also make a mistake of working with only one mortgage quote. In as much as having different quotes is time consuming, it is cost efficient in the long run since a buyer is able choose the best mortgage with the help of a professional. Most people choose the thirty year fixed rate mortgage as few people pick on the 15 year rate mortgage. With the 30 year mortgage rate one is able to less monthly rates which is the main reason people choose it. However if it is possible to work with the 15 year mortgage rate, then it is a better option since it is way cheaper compared to paying off a mortgage within more years.
USING ALL SAVINGS FOR A DOWN PAYMENT
price range. More to that, to the seller it informs them that the buyer is serious stand a chance to win the bidding offer. It also informs the seller that the paper work process will proceed faster which is encouraging to sellers. Not only is pre-approvals important to home buyers and seller but also might be the process that stands between the buyers having their dream house or losing it if the process is not taken into concern. Home buyers need to understand that pre approvals is different from prequalification and it is crucial for them to know the difference so that they are not mixed up.
Generally, there are different types of mortgages one can choose from. there is the fixed rate program where one is able to lock interest rates and adjustable rate program where by monthly rates go up over a given period of time. Buyers
NEGLECTING FHA, VA AND USDA LOANS
Buyers get lured to drain their saving on the down payment and the closing costs in order to avoid paying the private mortgage insurance costs. Spending all money on down payment is risky since the buyer might not be able to cover unforeseen expenses such as renovations and other crucial costs that come up with the house buying process leading the buyer to unbearable sit5uations. Most people prefer to get at least 20% of the money as the down payment which may take around seven years for an average homebuyer to have such amount. A potential buyer is advised to save more than 20% of the down payment so that they are able to handle unforeseen costs without any difficulties. It also has various other merits whereby the buyer sees home equity and experiencers less monthly payments, spend less money on the private mortgage insurance and even enjoy less interest rates. In occurrences where the buyer is not able to come up with the 20% then it is advisable that they consider special program that require lesser deposits to an extend of 3.5% to assist in the home buying process.
GETTING THE WRONG MORTGAGE
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that you a confident to go through the process. In order for them to work with the seller or win the offer, then the buyers shorten inspection period and even reduce contingencies. A well written offer eliminates any form of doubt from the seller’s side.
By Tamra Lee Ulmer
Buyer’s guide to the art of offering below list price and actually getting it!
DIVERT ATTENTION ENSURING IT IS NOT BASED ON PRICE
A buyer should clearly write down the reasons why he wants the offer to him. Prior to writing, buyers first find out the reason why the seller intends to sell the house. That way it becomes easier to note down why you want the offer and why the seller should work with you. It is important to show the seller and the listing agent
WRING A LOW BALL OFFER TO THE SELLER
At
Perfect your ‘lowballing art!’
It is discouraging to the seller when the buyers put all attention on the pricing. Buyers should skillfully ask for the offer with other reasons such as repair credits, closing cost credits and longer escrow account periods. Depending on the property on sale the buyers might decide to go
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times it is frequent to make a low ball offer to the seller. However the skills that people apply while making the offer determine whether the person will get the offer or not. A common strategy in low balling is by;
Other tips on winning a low ball offer are to base the low ball offer on the truth. Point out issues associated with the home that are factual. Truth sets both parties free and they are able to stay informed and make quality decision. Basing the low ball offer on the truth gives the buyer confidence and seller can easily take the offer.
physical on the offer by basing the offer on the physical condition of the house such as furniture or other appliances. If the buyers receive the deduction then he can still have the higher offer. In other instances the buyer indicates problems associated with the house such as if it needs a new roof and have a clear estimate on the amount of money you will use to resolve the issue.
A buyer should clearly know the reason as to why they are negotiating. One can have a personal interest towards lowballing or to create a win-win situation. After identifying the type of negotiation, they then create value added moves. For example some homes are normally overpriced with up to one hundred dollars and even more. There are instances whereby a house is priced at say $600,000 and upon speaking to a broker; the buyer realizes that the home is of more price than the actual value. The reason is because sellers base their pricing on the home value some years back while buyers compare the prices on homes sold in the neighborhood a few years back. With that in mind one is able to come up with a clearly written low ball offer.
MEET THE SELLER IN PERSON
RESPOND TO COUNTER OFFERS
MAKE THEM PERCEIVE THAT IT WAS THE SELLERS IDEA TO SAY YES TO THE HOME
As a buyer, it is crucial to have met the seller in person before making an offer. Thus buyers invite the seller for a cup of coffee at the time the seller is available and negotiate in person. Doing this makes a particular buyer mare likely to buy a particular home since sellers are able put a face on a given offer as opposed to other offers received which particular buyers never met the seller in person.
Most people do not like to be persuaded into
It is common for the buyer to receive counter offers with a relatively higher price. Buyers should however not get discouraged for these. They are encouraged to counter the counter offer so that till they get to a more favorable price listing. There are times when the buyers and sellers have a lot of counter offer till they get to an appropriate price for both parties. After both people agree on one price, Buyers make the purchase process quick before the seller changes his mind and gets a person ready to pay for the3 home at a hi9ghetr price.
It is a common mistake with new real estate agents to negotiate as if they intend to wrestle sellers and their listing agent. Such instances are annoying and lead to adverse effects on the interest of the buyer. During negotiations on a low ball offer buyers and sellers and their agents focus on problems arising on the house and how to solve them. The real estate agent then is supposed to show the seller on how the low ball offer will be beneficial to him and how the buyer will benefit too. The method is friendly to both parties and with good communication skills winning the offer is easy.
doing something. For this reason it is a brilliant idea that the buyer makes the seller to think that they are persuading the buyers for something they are not really into it so much. For instance when the seller ask you pick up the closing costs so that they close the purchase process, if the buyer is not comfortable they can back out and if especially the offer is not considered. Statements which declare refusal leads to compliance which enable the buyer and seller to meet and come up with the right prices for the home or rather resolve issues affecting them.
NEGOTIATE FROM A WIN-WIN PERSPECTIVE
KNOW THE KINDS OF NEGOTIATION AND THE STATE THE VALUE CREATING MOVES
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Pre approvals are mainly use by home buyers using a mortgage.
WHAT IS A PRE-APPROVAL LETTER?
How long will a pre-approval letter serve you?
WHAT IS A PRE-APPROVAL?
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By Walter Huff
to work with, it additionally makes him or her to stand better chances of winning a bid on a given property. It shows the seller that one has finances put in place and he is confident in the purchase process.
It is a letter that is received after one is approved to get a loan. The letter clearly indicates the exact amount that the borrower is qualified for as a loan and at times serves as a commitment to the buyer. The letter also shows the interest rates that will possibly be charged. With some realtor it is a must to have the pre-approval letter so that they use the price range given to look for a house easily and faster. A pre-approval letter is very important in a competitive market since one has proof that securing financing will be no
It is important to understand certain terms used in to get the correct meaning of a pre-approval, the letter involved. With that one is able to determine for how long a pre-approval letter will last. A pre-approval is when a buyer visits a lender and asks to be told of how much loan they can get. The process proceeds pre-qualification. A borrower should have with him his personal data documents and financial documents such as paystub, tax deductions and credits. Lenders use the information to determine how much they can lend you. It is also important since they assess the financial discipline of the borrower. For the borrower other than knowing the budget
A pre-approval letter is very important which dictates that it must be up to date. Cash buyers on the other hand do not need this letter. Instead they require proof of fund to show the seller that finances are ready. A point to note by buyers is that the letter is not a guarantee that the individual will receive the loan. Certain circumstance may come up where by lender decide to lend part or half of the money indicated.
A pre-approval letter lasts between 60 to 90
The process of pre-approval is intense and involves going through one’s financial documents. After that there is need to run credit card reports so that they can check whether there are any red flags. When the mortgage lenders are satisfied they then give the approval. The process can 1 day up to 2 weeks.
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BOTTOM LINE
Yes. It is actually a good idea to ask several lenders for mortgage pre-approvals since it is the only way to know if you really are on the right track. It further enables one to choose the best lenders in the market. However it is important to note that it does not necessarily mean that one should then visit every lender. Mostly lenders are got from referrals so one can narrow down few of those they have heard about and specifically get pre-approved from them. Getting pre-approved many times negatively affects a buyer’s credit score especially if it exceeds 45 days.
WHEN IS THE BEST TIME TO GET PREAPPROVED AND HOW LONG DOES IT TAKES
HOW LONG DOES A PRE-APPROVAL LETTER LAST?
big deal and that the process will be easier and faster. A prospective buyer should always have a pre-approval letter if need be.
Prospective buyers are advised to get preapproved once they have put their finances together. However it is not advisable to get pre-approved too early or too late. Being preapproved early might lead to inaccurate data especially if some buys something like a car on mortgage. Getting pre-approved too late on the other hand lead to missing on a house that probably was your favorite.
CAN I GET MORE THAN ONE PREAPPROVAL LETTER?
days. After this period and someone has not gotten a house one then has to renew the letter. Reason that govern expiry of such letters is due to change of financial situations which may occur drastically. For instance one may make big purchase or even change a job. Expiry dates of pre-approval letters vary with different companies and are usually clearly indicated. One should get another letter if it expires and one has not gotten a Expiringhouse. of pre-approval letters is of benefit to the buyer in that it prevents them from using inaccurate data in house hunting. It eliminates instances where by one makes an offer and win only to realize they can no longer access the money they had indicated. In such cases a buyer risks losing earnest money if financial contingencies were waived. In other cases buyers refresh their preapproval letter. For instance if they had budgeted for a home worth $500,000 but they found a cheaper house say $350,000 they are allowed to get another pre-approval because most people would not prefer to tell someone of the actual preapproval amount they are pre-approved for. In such instances the pre-approval letter is usually customized to fit the needs of the buyer.
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A home inspection is where the buyer is expected to hire a home inspector who will conduct various reviews on the home to
Waiving a home inspection is one of the most dangerous steps that one could ever take. A home inspection is not advisable to skip unless one has prior information on the home or if one had conducted a pre-inspection. Most people do not prefer pre-inspection because they must necessarily win the offer. Waiving a home inspection is dangerous since the buyer might indulge himself in a lot of financial expense on repairs after closing, and in such awkward states, the seller will not chip in in any way.
HOME INSPECTION CONTINGENCY
By Heith Mohler
Stop and watch out for these dangerous comebacks
determine if the house has any major problems and if there are; they ask the buyer to repair before closing or to lower the home price.
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Are you thinking of waiving some contingencies to score a home?
WAIVING A HOME INSPECTION CONTINGENCY
n house hunting, the buyer may find a house that perfectly suits his interest and is interested in the home. When making the offer, however, as a buyer, you realize that the home is in high demand, automatically putting you in a bidding war. Such situations are discouraging to the buyer, and in an attempt to win, they think that waiving some or all contingencies will help. In as much as waiving contingencies attract the seller to your offer. It might lead to substantial financial expense on repairs on the buyer’s end. Some of the contingencies that are waived and their dangers are;
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APPRAISAL CONTINGENCY
WAIVING AN APPRAISAL CONTINGENCY
An apparent title contingency allows public research to show the owner of the property and indicate whether it has any accrued tax and contractor debts. Having such contingencies protects the owner if there arise incidences of a problem with home ownership by compensating theWaivingbuyer.such contingencies is the worst choice ever since there are always property ownership issues that would make the buyer vulnerable. Most states do not allow one to waive such contingencies since it is risky.
It is a type of contingency that allows the buyer to stop the contract without losing the deposit when their financing falls through. Such incidences happen when the buyer cannot get a loan or if the loan is not large enough.
FINANCING CONTINGENCY
Waiving an appraisal contingency has risks similar to that of a financing contingency. It makes the buyer vulnerable to either catering
An appraisal contingency protects the buyer from being locked in a deal if the home is overcharged. Generally, after an offer is accepted on a property, Mortgage lenders use their professionals to value the home value of the property. If they discover the home is overcharged, they only give a loan to the point where they feel it is the correct home value and, if the buyer is still interested, pay for the difference.
Financing contingency can be skipped by those with a clean credit report, cash buyers and those with stable jobs. However, people in other groups should consider having the contingency to protect them in instances where either mortgage lenders may decide to spike up interest rates or reduce the loan amount by a certain percentage or by half. Waiving financing contingency is risky since a buyer can lose all the earnest money he had previously used on the home.
WAIVING A CLEAR TITLE CONTINGENCY
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At times closing gets delayed, and buyers ask their seller or seller agents if they can move in. It does more harm than good since both parties lose negotiating power. For the seller, it is difficult for them to believe that buyers will back out and as for buyers, in case of mortgages fall through, they face eviction. It would be necessary if one decides to waive such contingencies.
When the buyer does not want to pay for home inspection, they can choose realtors with a general contingency plan. In such cases, after the inspection, the buyer can either buy the house as it is or back out, but asking the seller to set lower prices on a particular home is not possible.
WAIVING A FINANCIAL CONTINGENCY
WAIVING AN EARLY MOVE IN
There are incidences where one discovers that the homeownership association rules do not vibe with your lifestyle. For example, some HOAs do not allow residents to have pets in the area. It is necessary to ask about the HOA rules and regulations of a specific place before moving in. Else one is locked up under laws the buyer finds strict and unappealing. If a buyer conducts HOA regulation, it is good to waive the contingencies.
for the difference in cash for the house; in most cases, most people do not have the money. It becomes difficult to negotiate with the seller to reduce the home price, and if the buyer breaches the contract, the seller can sue them.
WAIVING A HOMEOWNER ASSOCIATION RULES CONTINGENCY
have different financing options. As an investor, you will have to provide the bank with a 20 to 30 percent down payment for the first option. If you cannot meet this requirement, option two is a sort of respite. You will only have to put down as little as 3.5 percent through an FHA loan with option two. Remember, however,
Coming up with an accurate rental property expense report
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nvesting in rental properties is not only lucrative but also has its benefits. When an investor invests in rental properties, they get to enjoy tax benefits and substantial returns. As attractive as that may sound, it would be naïve to ignore the costs that come with owning and running a rental property. An investor must consider the initial costs involved and the recurring expenses that will run through the investment’s lifecycle. Before buying rental properties, it is a good idea to know every possible price, whether projected or not and how much that could be. Why is that important? These expenses tend to influence the rental property’s cash flow directly. Additionally, these expenses will significantly affect what kind of financing option you choose. So how do you estimate your rental expenses?
DETERMINE THE PURCHASING COSTS
Theconditions.twooptions
By Ruby Frazier
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These are the initial costs you will incur during the property acquisition. They heavily rely on the kind of investment route you choose to follow. The routes available are based on how you will use the property. Option one is renting out the property from the word go. Option two is referred to as owner-occupied. Under this option, you can live on the property for the required 12 months as a prerequisite of your loan’s terms and
It is easy to find all this very overwhelming, but the process should be easy with technology. Biggerpockets.com and Mashivor.com have excellent rental property tools that will make all the calculations easy. Please make use of them to avoid falling into the pitfalls of underestimations. Additional costs could crop up that you weren’t prepared for; leave room on your budget for such. Also, do not be afraid of reaching out to investors such as yourself; their input is priceless.
This stage is very important as it will determine if the investment is worthwhile. If the expenses outweigh the revenue from the property, then it is wise to back away from the investment. These expenses can be grouped into three; initial costs, monthly costs, and long-term expenses. Initial costs include appraisal fees, home inspection fees, and closing costs. On the other hand, it has; mortgage payments and property taxes, insurance, and HOA fees. Finally, the longterm expenses comprise rental income taxes, permits, property management fees, utilities, maintenance, and cleaning fees.
KNOW THE EXPENSES THAT COME WITH RUNNING A RENTAL PROPERTY
ESTIMATE THESE FEES
Real estate experts have been in the market for a long time and have invaluable experience when it comes to estimating costs for different expenses. For example, Fannie Mae recommends that the maintenance fee for a rental property should be 2 percent of the annual rental income. Experts at Mashivor.com,
a project that property management fees cost between 8 to 12 percent of the monthly rent. List all the expenses alongside your projected revenue income and run these figures through the experts’ rates. By doing so, you become fully aware of what it will cost to run the property.
that both these are being financed through mortgages, shop around and find a lender that offers you the best terms.
LOOK UP WHAT EXPERTS PROJECT THE FEES TO BE
There exists several variables that make an accurate valuation of the fees difficult. That, however, should not put you off from investing in these kinds of properties. There are alternative methods that can help you get a clearer picture. First, you can talk to property managers in that locality. Property managers have experience with these kinds of properties and have valuable information regarding these expenses. Secondly, get in touch with local income property owners. They will provide real-time figures of their costs, and if you hit it off, they can offer you advice and tips. Finally, ask the local utility companies to give you their rates and quotations. This information will provide you with a clear picture of what your expenses will look like.
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The American Dream of Homeownership:
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These agents are a true personification of the American Dream and really prove that if you are determined, passionate and work really hard for your dreams, nothing is impossible. We reached out to NAHREP’s president about these top agents, and here’s what he said: “Artemisa, Mark and Adriana are top producers in NAHREP’s Top 250 survey. They exemplify the values and grit of a network of 40,000 dedicated professionals that bring the dream homeownership and promise of generational wealth building to hundreds of families across the country. We are honored to have them represent the best of the best of NAHREP.” Luis Padilla, 2022 President, NAHREP
This year, real estate activity across the United States has increased significantly compared to previous years. The median home price rose significantly, thereby decreasing the purchasing power of many people across the country. Therefore, it has never been more imperative than now to apply the correct strategies to market your home or even to use the right agents. Speaking of real estate agents, the National Association of Hispanic Real Estate Professionals (NAHREP) released its 2022 top 250 Latino Agents, highlighting the brightest agents from all cities across the country.
he list, according to NAHREP, is comprehensive, and the best part is each agent brings a unique story of personal triumph, overcoming adversity, devotion to their trade, and work every day in their local market to make homeownership a reality for families. It is important that such stories be recognized, told and retold, as these agents have made homeownership their personal mission. We cover the story of two top producing agents according to the NAHREP list: Artemisa Boston and Mark Dimas. In addition, our very own VIP Agent, Adriana Montes, also made it to the top 50 agents highlighted by NAHREP.
Three Incredible Stories of NAHREP Top Agents Making Homeownership a Reality for Americans.
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COVER STORY
REALTY GROUP, LLC
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Artemisa
Artemisa Boston
Boston from Mexico City tops this list and currently resides in Coon Rapids, Minnesota. For Artemisa, one of the most rewarding things about being a real estate agent is seeing the happiness of her clients when they buy their homes and feel like they are achieving the American Dream. Being able to help clients find their dream home is what keeps her motivated and the reason she has been in real estate for almost 20 years. She is very passionate about her work and everything she does in her life. Thanks to her clients and their referrals, she has been able to achieve the #1 Latino Realtor in the US as well as the #1 Realtor in Minnesota by transactions.
When asked about Artemisa, the CEO of Realty Group, Mr. Long Doan, said, “Artemisa is one of the most unselfish and giving people I know. That’s why she consistently leads Realty Group, the largest Independent Brokerage in Minnesota and one of the fastest growing brokerages in America, as the #1 Agent.”
Artemisa Boston emigrated from Mexico to the United States in her 20s, and one of her resolutions was to start over and find a new career path. Before coming to the United States, Boston had attended a few semesters of college in Mexico, where she had majored in International Relations. Still, she later discovered that none of her courses were transferrable. Therefore, coming to the United States meant starting afresh from scratch.
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She recounts, “I didn’t know what to do, but I was always really good at selling stuff.”
While she was making money, she found greater fulfillment in helping people find their dream homes and ultimately, she even forgot about the money partly because of the joy she got every time she helped a family find their dream home, but also largely because she did not have the time to spend the much that she was making. “I was so busy, busy, busy.”
Real estate is one of those fields you can never relax. Otherwise, you’ll be out of business. Right from the start, Artemisa knew this. “Some people get where they need to get really easy,” she said. “[Other] people are like me that you need to do a little extra to get where you need to get… Now, I like it. It’s like a challenge.”
Artemisa found an inclination toward the Hispanic community as she was one of the few Hispanic agents at the time. Given the fact that she could speak Spanish fluently, she connected well with this demographic. She did not have much competition for clients in that Niche even as more Spanish-speaking agents joined the
Boston works with many first-time homebuyers, but she has also seen a lot of frequent repeat clients and, in recent years, even their children and grandchildren.
She notes that the Hispanic community needs more help mostly because of the language barrier and the fact that many immigrants don’t use credit; she has to invest more in educating everyone about credit and helping them through every single step of the process.
Starting out in Real Estate
Real estate was an industry that naturally appealed to her, and before long, she decided to try it to make a bit of money while her husband attended law school. Starting in the real estate industry was something she did out of necessity, and Boston would recall that she started doing real estate for money, “but I fell in love [with real estate]... because people are so happy when they get a house, and they really appreciate everything that you do for them.”
“We are so blessed because we have enough clients for every single [Hispanic agent],” she said. “We don’t have to fight for the clients, and if you are good and like it… you can serve a lot of people.”
HERE’S HER STORY.
Her journey in the real estate industry is one marked by perseverance. But who is Artemisa?
working with Hispanics has been really great and a unique experience for her, there have also been unique challenges that come with working with immigrant populations.
HELPING HER COMMUNITY
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“It’s special for me because the little kids were 5 or 10 years old when I was selling houses; some of them are coming back. They are secondor third-generation Mexicans or Hispanics or whatever, and I am really honored because they can look for someone that doesn’t have an accent because now they speak English… but they remember when they were buying houses when they were little, and they come back, and they want to buy a house with me.”
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Boston has been a real estate agent for more than 2 decades now and, in the process, has learned a lot about the real estate business and how to build a successful career. So what advice does she have for the upcoming agents? Kindness and respect!
“If I close 250 transactions, that means that I can have like 150 days of happiness, because sometimes I have more [than one] closing in [a] day,” she said. “When you close a deal, it’s like the boss you don’t have is telling you, ‘Good job.’ Can you imagine your boss telling you 150 days that you are
while the job is hard, she derives joy from people telling her, ‘I really appreciate it, and God bless you, thank you so much.’ “I try to say, ‘No, thank you,’ because I really feel like that. ‘Thank you for the opportunity because that makes my life happy.’
Artemisa also notes that in every job she’s had, she makes sure to do the best that she can and also to have the best attitude because since she cannot change it, the only options she has is to either enjoy it or feel miserable.
She emphasized these two points saying that real estate agents are there to resolve problems and not to complicate the transactions or even add drama. She also adds that being a young agent is important to be passionate about your work. Boston believes that “every single transaction is special,” and that’s how she can find joy in every single aspect of her job.
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MAINTAINING A WORK-LIFE BALANCE
When it comes to balancing work and life, Boston advises, “Life is not only money,” she said. “Being successful is not being the best in what you do. It’s doing good, but in the process, have a family. Have balance. Have a life. Yes, it’s important that you want to be the best of the best and make all the money, but you also need that — the other part. If you don’t have the balance… you are not being successful.”
Mark Dimas MARKOWNER/BROKERDIMASPROPERTIES
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nationally about his tried-and-true techniques as it relates to relationship-based business building. In our industry, relationships are the building blocks that ensure viability and longevity. Part of Mark’s success stems from his ability to maintain relationships and deliver positive results among his large institutional client base. This evolved from his motto: “It just takes one.” He delivered powerful results with his first institutional client that led him to currently handle multiple billiondollar power buyers in the Houston Metro. However, Mark’s reach and potential doesn’t end with the Houston market. Mark has his sights set on growing an international presence as he has built strong connections with developers throughout Latin America – introduced through his connections with NAHREP. Real estate is an intricate web with your community reach expanding far beyond who you know. Standing up for operational excellence with emphasis on putting the client first will always set you apart from the competition. Invest in yourself and those around you and you will be left with a lasting legacy built on the principle of First-Class Service.
His story of humble beginnings that led to the growth of a real estate empire is one that he happily shares. Mark’s passion for success for his colleagues lends him the opportunity to speak
Mark understands the importance of leveraging hard work in order to create value and leave a lasting impact for his agents, staff, and clientele. “My drive is innate to my character. I’m goaloriented by nature, so I strive to be my personal best while helping others do the same,” Mark explains in an interview. His “family first” nature has empowered and allowed members of his family to enter the business without the hardships and challenges he faced as a budding Realtor.
From transaction coordination, mortgage originating, and even training and teaching his son, nephew, and son-in-law, to handle large portions of his institutional inventory – family is everywhere in the office. He proudly discusses how the concept of family is an integral part of his success and how that has led to the four core values of his business: Culture of Unity, Problem Solving, Gratitude and Thankfulness, and First-Class Service. His stellar record of accomplishments is proof that Mark is not only an established entrepreneur in real estate, but a pillar of excellence amongst his peers nationally and notably in the Latino community.
Mark is the Broker Owner of Mark Dimas Properties and a true personification of the American Dream. The Wall Street Journal has ranked the Mark Dimas Team as the No. 8 real estate team in the country and No. 2 team in Texas, and No.1 in Houston (amongst 48,000 Realtors in Houston) for their outstanding accomplishments in sales in 2021.
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he National Association of Hispanic Real Estate Professionals (NAHREP) Top 250 list also included teams that performed outstandingly in 2021, and topping the ‘Teams’ list is Mark Dimas and his group of elite agents –the Mark Dimas Team.
Adriana Montes FLORIDAOWNER/BROKERDREAM REALTY
“I just was determined, and obviously, I was in another country where I had to speak the language. So I felt like Emily in Paris and had to learn English. I enrolled to take English classes at UCF University of Central Florida in Orlando.”
Another agent highlighted in Nahrep’s top 50 agents by volume of their transaction is our very own VIP Agent Adriana Montes, who comes in at number 46 after successfully closing 96 transactions.
THE PURSUIT FOR EDUCATION
It was a tough environment she went through as a child and all through her teenage years, and because of that, she wanted something better for Sheherself.says,
It is easy to assume that her entry to the United States was easy, but it wasn’t. She came into the country under special circumstances, seeking political asylum, which wasn’t easy to get. She had to prove that she was in danger of being kidnapped.
Once she could speak and understand the English language, Adriana didn’t stop at that; she went back to school and enrolled for a Bachelor’s degree in Finance and Marketing.
“I wanted something better for myself. I wanted someplace where I could be safe, that I wouldn’t have to worry about being kidnapped or walking on the street and just being taken away for ransom. So I would always look up to the United States; Colombians love America, and we always look up to the United States as the American dream, as the land of opportunities, the land of the free and the brave. I always thought and dreamed that if I could come here, I could be safe first and then second, I could accomplish all my dreams. So basically, that’s how I ended up here. I came fleeing from the guerrilla and asked for political asylum, and then I was allowed to work here and start making my dreams.
Adriana notes, “I believe that education can open doors for you. My dad always said that education is the greatest treasure that you can just take away with you wherever you go.”
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After completing her Bachelor’s degree, Adriana went back for her MBA and also a doctorate which she did. While she was in business school, Adriana ventured into real estate. Still, she felt the need to go back to school, this time to honor her grandfather, who was a judge in Colombia, and since nobody in the family had kept that legacy for him, she felt the burden to do it, and she did.
Adriana, just like Artemisa, came to the United States at an early age of just 18 years from Cali, Colombia. She was born in a sugar mill factory where her dad worked as a mechanical engineer and production director. Life in Cali wasn’t really the best because the factory where Adriana’s dad worked was right in the heart of guerilla warfare, and therefore her family would frequently get threats of being kidnapped. It was something happening to other families working in the factory where members of these families would get kidnapped and then asked to pay hefty ransoms.
“So I gathered all of my evidence from Colombia and the paperwork and testimonies from people from the sugar factory. I went in front of an immigration judge in Miami and presented all my Theevidence.”judge
saw that the family was receiving threats and ended up giving them the needed asylum.
Coming to the country, Adriana didn’t know how to speak the English language. She learned the language at the age of 18, but she was determined to learn the language just to overcome the barriers that came simply because she didn’t understand the language of the land.
It was challenging for her, as she notes that she attended law school full time while at the same time managing her real estate company. Through the challenges, Adriana pushed through and made it.
HER JOURNEY IN REAL ESTATE
“I also felt that it would give me a good and strong background I had the MBA for my businesses but also wanted the legal background, and it would be very strong for my businesses and to provide additional valuable insights to my clients.”
After graduating and leaving that rental car job, Adriana decided to get her mortgage license. She decided to go into the financial services side of real estate, which made sense as she had an MBA in business. She eventually got the license which empowered her to make sales. After about a year of working for somebody else, Adriana opened her mortgage company which ran for a few years, after which she got her insurance license and opened an insurance company. At the same time, she had also gotten her real estate license, which meant working in three different fields simultaneously.
“I’m just very excited that I put education as one of my priorities. I always want to encourage others to do the same because education can open doors, and education is something that expands your mind. It just allows you to learn all of the unlimited knowledge in the world.”
Adriana, unlike Artemisa, didn’t start in the real estate business automatically. It is not something that she was thinking about at the time. She recalls that she first started working in a rental Car Company and her great attitude pushed her through. While going to school full time for her bachelor’s degree, she was also working at the company making at least seventy thousand dollars a year, which was great given she was only 18 and also she was in a program that allowed tuition reimbursement, so basically the program paid for her bachelor’s program.
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“I was pretty much doing everything that the broker does, and I said, ‘why not just invest on myself and take the liability and just get my brokerage firm and work really hard to get my accounts and to make all my dreams come true about having my real estate company?’ so I decided in 2010 to focus on real estate and since then that’s just been mainly my focus, and it’s my passion and I never feel like I’m going to work….”
To watch the full interview click here.
In addition, Adriana is a big believer in homeownership as the cornerstone of the American Dream; helping others achieve this has been her greatest source of motivation. She says owning a home gives people a chance to raise their families in a safe and conducive environment.
At one point, however, Adriana worked under a broker, which was an epiphany moment for her.
At 30 years old, I was able to employ members of my family, and after that, I said I wanted to show the people that they could do the same. It doesn’t matter how young you are. You can also bless your family and others and show little girls and empower Latinos, empower women, empower teenagers, and empower anybody of any age to accomplish their dreams. So the space between your dream being accomplished and where you are is just the effort and determination you can take today, and that’s where we say the power is now.”
Adriana has been ranked one of the country’s top-performing Latino real estate agents. She has been consistently recognized by NAHREP for 10 years, having sold over 1500 homes and transacted over $500 million in sales volume. So what drives her?
“I’m a big believer in the American dream. That’s why I came here I came here; to be safe from the guerrillas, but not only that, I came here to accomplish my American dream. As a little girl in Colombia, everybody dreams of coming to America, coming here and working really hard and just making your dreams come true, whatever they are (dreams) even if it’s to have a house, it’s to practice sports, raise a family… whatever they are (dreams) this is a place (America) where you can accomplish your dreams. And that’s basically what drives me I want to show people that they can accomplish their dreams too.”
Interestingly, at just 30 years old, Adriana employed her family members, which she also says was a great motivator and helped shape the person she is today. Adriana wants to show young people that they, too, have unlimited potential, and if they work hard for their dreams, everything is possible!
WHAT DRIVES HER PASSION IN REAL ESTATE?
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brotherbewell com B R O T H E R B E W E L L Closing the mental health equity gap for boys and men of color. Brotherhood in a virtual healing space for scale and impact. Culturally appropriate multimedia resources and pathways to care. ADDRESSING HEALTH EQUITY BUILDING COMMUNITY ADVANCING INNOVATION Wellness for Boys and Men of Color 66 | SEPTEMBER 2022
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By Jenny Gonzalez
In the name of seizing the current market situation, most people are impulsive buying homes to rush their dreams of becoming homeowners in San Bernardino. This is therefore leading to them regretting their decisions later as they are not prepared and flexible enough to go through the home buying process. It is with
Buying a home should be an exciting experience for the persons involved. Afterall, buying a home is not an easy process or thing to do. Apart from the financial aspect, buying a home will chip into you emotions, but many people cannot shake the remorse.
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Most homebuyers end up regretting a house purchase for various reasons. As published by a US homebuyer survey from Bank rate, in May 2021, 64 percent of home buyers experienced buyer’s remorse. San Bernardino, like most cities
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omebuyer’s remorse is more common than you think. In fact, the home buying experience over the last two years has been nothing short of extra-ordinary, but many buyers werent satisfied with the process. A report by Anytime Estimates showed that nearly three in four people have at least one regret about buying their first home.
in the United States, has for a while experienced a house-buying frenzy fueled by the low mortgage rates. The median listing home price trended to 18 percent year over year to $450K and the median home sold price was $465K as per the Realtor. Com July 2021.
How To Deal With Buyers Remorse in 2022
HOW TO AVOID HOME BUYERS REMORSE
and this clearly leads to remorse. Prioritize needs over wants - Everyone wants luxury in their homes but, are your finances enough for that? Can your budget cover your luxurious desires? Every buyer should ask themselves such questions before purchasing a house. It’s good to have a list of needs as it helps the buyer looking for a house that has only necessities and stays focused on only what they need in their homes, to avoid incurring extra costs of home luxuries.
It’s quite a hard task to find an exact perfect house as you have always desired, hence most buyers tend to forego some of their wish list house features. Additionally, buyers tend to renovate the houses to meet their desired types which is costly. It is, therefore, a better idea for buyers to consider and appreciate the positive features of the houses to avoid feeling remorseful. It definitely is an awful feeling when you’re delighted about eventually living in your dream home in San Bernardino, but instead regret the choice especially because the circumstance was evitable. This unfortunately has been the recent trend in real estate since the shift to a seller ’s market. Buyers making hasty decisions based on the market trends and later regretting it all. You don’t have to be a statistic in the list of remorse buyers!
Work with a realistic budget – “it is advisable to shop for a house that is below your budget. “ Says Raven Reed, a realtor with Realty Executives Select Group. Homebuyers should set a certain maximum budget and stick to it no matter how tempting the housing market is. This is important to avoid overspending on home buying. Whenever a buyer blows their budget, it means changing their lifestyle in order to fit within the financial constraint they are in. This brings remorse to the buyer.
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For any prospective home buyer in San Bernardino, flexibility and Preparation are the key drivers to avoiding regrets after a home purchase. Do you want to smile as you sign the closing home buying documents? Enjoy every minute in your dream home? Here are the ways to make that happen;
Include contingencies in the home buying contract – It is not a wonder for buyers to not include or remove contingencies in this hot sellers’ market. The inventory is low, and buyers are willing to make the best offers possible to sellers in order to get houses in San Bernardino. As much as the buyer wants to make the offer appealing, they should have a list of the mandatory contingencies so as to be protected if the conditions are not met by the seller. Excluding contingencies is a risky move that later brings remorse to the buyer.
no doubt that most of the haste decisions made with no adequate preparations always end up in the regret box. This is not different when it comes to real estate. Homebuyer remorse is a result of numerous causes that are avoidable.
Choose the right mortgage rate- There are different types of mortgage rates available for buyers depending on their qualifications, credit scores, and financial capabilities. Buyers should therefore understand these types to enable them to choose the best for them. A buyer might choose a mortgage higher than their finances, and end up struggling to pay every month for it
Work with a realtor- It’s likely for buyers to prefer buying a home without a real estate agent in the name of saving on the realtor fee but contrary, this might even cost them more later. It is always advantageous to work with a realtor as they act as buyer’s advocates and help them look for the ideal homes in conducive neighborhoods, negotiate with the seller and even work on the paperwork. It’s easy to get the best home deals with a realtor on board, which is a great way helps avoid buyer’s remorse.
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A pre-approval is when a prospective buyer visits various mortgage lenders to acquire how much money they can get to purchase a property. It is necessary that they visit several lenders so that they choose the best rates. A pre-approval requires the buyer to present some documents such as pay stub, bank statement and returns on tax. The documents are used to assess one’s financial discipline and also the flow of money in and out of the home. Mortgage lenders then give the buyer a letter indicating how much they can acquire in they apply for a loan. Buyers should note keenly that pre-qualification is different from pre-approvals and that for pre-qualification it is usually done earlier. Acquiring a pre-approval can take 8 to 10 days. Pre-approvals make a buyers stand better chances of closing on the property.
reaming of buying a house is one thing and making it happen is a task of its own. The journey to owning a home needs one prepares financially which may take several years. Once a person is ready, the individual follows the following steps in acquiring a home.
GET A PRE-APPROVAL
How long does it take to buy a house?
By Ian batra
FIND A REAL ESTATE AGENT
A realtor is important in home buying as they assist buyer in the whole process of purchase. They are also important when it comes to guiding the client on what to do and at the same time represent buyer when negotiating. Acquiring a real estate agent is mostly based on referrals from friend and family who recently bought a new home. As a buyer must should get a realtor that is trustworthy and reliable. The process is fast and takes few days or one week.
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Whileyou.
MAKE AN OFFER
GET INTO A CONTRACT AND DEPOSIT EARNEST MONEY
It is the final process of home buying and takes around one week. It however depends with the realtor being involved and other factors which may make it take longer. Lenders offer the buyer the closing disclosure showing what is required at the closing. Lenders give the buyer 3 days so that they can read through and understand. After the three days, the mortgage lender will set up a date upon which the buyer signs loan paper, pays deposit and takes control of the new property. During closing it is important to have the seller, agents from both parties and an attorney.
Upon acceptance of an offer, the buyer and seller get into a legal contract and deposit earnest money into an escrow account to the seller that the buyer is serious about the purchase. However if the sale process does not go through then the earnest money is refundable on various circumstances.
SCHEDULE A HOME INSPECTION
The process involves visiting open houses, narrowing down the location where one would love to settle and setting up private appointments with realtor so to go a view newly listed property. It is important for a buy to be clear on what type of home he or she would love whether it is a condominium or a single house. Depending on the skill that the buyer has it is better for someone to have good bidding skills or involve a realtor bid for
After being pre-approved a person comfortable starts house hunting. The process takes 4 to 5 months depending on the time of the year, type of home one is searching for and the inventory levels in the market. In highly competitive markets it is difficult to find a home and may take longer.
The process takes less than month. It is when the buyer
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house hunting, carry out your own research such as comparing the market value the property with that of the neighborhood. Also ask of how long the property has been on the market and whether there are home owner association alongside with other issues whether the locality of the house is a flood zone area.
involves a professional inspector to survey the home and find out if there are any defects. If a buyer had agreed to waive home inspection contingency, it is still important for them to inspect the house that they find out the cost of repairs. At this point a buyer has the right to walk put on a property if the defects are dire since one cannot force a buyer to buy property that is too damaged but on condition that the buyer will lose earnest money. Some loans such as the VA ones require a home inspection since it shows a professional home worth value.
Once a buyer is interested with a particular house they proceed to make an offer which takes about one week. In this stage, the buyer’s agent writes a letter to the listing agent indicating their interest on a property and their terms. In highly competitive markets buyer agents prefer to be flexible with their term and waive some contingencies. It is important to attach a pre-approval letter if the property is to be bought using a loan or proof of fund if it is a cash buyer involved in the whole process. Buyers include a personalized letter indicating why they are interested with the house and also show that they found incredible.
CLOSING
HOUSE HUNTING
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Buyers
THE PLACE OF REAL ESTATE AGENTS IN THE BUYING PROCESS
Can I meet additional costs?
Many people are tempted to DIY or try some short cuts, but let me warn you beforehand, it will not work!
California market one of the most expensive markets in the whole country, and presents a rather lucrative opportunity for the investors. But, if you are planning to buy a home this year, consider the following questions;
THe last two years have been extremely tough for the real estate market, which for the most part has been characterized by extremely tigh inventory suplies, conditions that have made housing prices astronomically high. 70 percent of all homes in California are selling above the list price. At the same time, price appreciation in southern California has been a steady 6.3 percent, with a median price of $808,000 in year over year gains. This makes the Southern
What are my expectations?
I understand that we are living in tough economic times, and buying a house right now really doesnt seem like the right thing to do, now add the pain of the agent costs, among many others. It appears appealing cutting back on the agent costs, but in the long run, how fast can you get your dream home? Agents are a valuable
Do I need a real estate agent?
Am I ready to make compromises?
Ready to become a homebuyer in Southern California?
By Kamesha Keesee
in Southern California, especially buyers in my area of Corona, needs to ask themselves these 4 questions:
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Flexibility is key in the housing market. You might find a diamond in the rough for below your budget- A home in need of some TLC, labor and money to make it feel like home. It might be worth your consideration. With the low-price tag, there is room to make it your own. And if you need additional funds, a renovation loan is always on the table. Another interesting thing is to see if you qualify for an FHA loan that will couple with The Energy Efficiency Mortgage- A product that will help repair the home.
WHAT ABOUT THE ADDITIONAL COSTS?
Finally, have an open mind when entering the market. It is possible to enter wanting one thing and getting something else instead. Case and point, you might get a duplex that allows you to make money on one half while living in the other. Your mortgage would be determined by the rent you earn on the extra property. But above all, make sure you can afford the home and that you are completely sure that that is what you want to do! Buying a home is a milestone, a difficult one at that.
Making an offer on a home over listing price is one thing, and encountering additional costs is another. During an inspection, unexpected roof repair, electrical, or termite expenses may
resource in that they have connections to the MLS. you could be looking for a home for up to six months without an agent. Although i have to say that there are people who have perfected the art of buying and selling without having to need an agent, ad therefore do not need the specialties of an agent. A real estate agent with much experience will see faults in a home that you on your own couldn’t. Get yourself a real estate agent that is a great negotiator who will get you the best deal and, best of all, save you money!
AM I READY TO COMPROMISES?MAKE
YOUR EXPECTIONS WITH THE PROCESS, AND THE HOUSE
When buying a home, a person tends to have a picture of what they want, and that’s okay. But in this market, you are going to need to adjust your expectations. Your dream, be it a condo or a singlefamily home, comes with a higher price tag. Nationally, people have been paying 50,000 to 100,000 over the list price. The market might be cooling off, but chances are you will still pay a steep price when buying a home. Therefore, assess your financial situation and see whether you can comfortably meet the seller’s demand. If not, it’s okay to rethink your expectations and make them a lot more realistic.
come up. You might not want to lose the home but is it within your budget to fix these things? Remember, in this kind of market, any delay could mean another buyer. But that doesn’t mean you agree to buy the home if you can’t afford the repairs, see if the seller is willing to negotiate and if not, it is alright to walk away.
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Some times after almost living in a rental home for almost 5 years, their rent is increased. Landlords add their rent mostly after five years
In occurrences where there are constant rent increases, it is important that a tenant talks to the landlord and express to home or her that they are not comfortable with the huge percentage of increase. Also inform the landlord that it is a reason for you to look for another property. Tenants’ should Tenants should also practice good communication skills in order to win an argument. In most cases if the tenant is has been faithful with paying rent on time, then the landlord can reduce the amount of money increased by a given percentage.
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ISSUES RELATED TO FINANCES
By Serina Lowden
Are you stuck in rental?
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as opposed to increasing rent after every year. When rent is added after say 5 years the increment rates are so high up to 25% that some landlords opt to move and thus it is advisable to add rent constantly with fewer rent rates rather than adding a lot of money after a long time.
etting stuck with rental is common with both tenant and the landlords. As for the tenants, some of the problems that they encounter are;
It is a common practice for rent to go up after a certain period of time. Even as the practice continues, various reasons support the practice. At times renters add rent to increase their profits, cater for the maintenance and repair costs or even so that they are at per with the market rates. Real estate being a seller market landlord are the ones who in most cases determine the amount of money to charge as rent.
HOW TO GO ABOUT INITIATION OF A TENANCY
RIGHTS AND RESPONSIBILITY
When carrying out such negotiations, it is advisable to argue out both empathetically and reasonably otherwise the landlord will be happy to hear the tenant speak of moving out.
A tenancy agreement is essential for both parties as it binds them and indicated what both parties are obliged to. Before commencement of leasing, both parties sign and the landlord give the tenant a copy. As much as it is important for the contracts to be in a written form, there are instances where the buyer and the seller communicate verbally and they are both able keep their word. For example it is difficult for a landlord to tell a tenant that they can have a given property and then later change their mind. Also tenants verbally agree to pay a given amount of money or rent a particular house and make sure they stick to their promise. However a verbal agreement with no particular evidence is not always advisable.
The tenancy agreement entails a lot of details such as the both the names of the landlord and tenant, service address for residences of both parties, phone numbers of both parties, the date on which the both the tenant and the landlord get to sign, when the contract will begin and also when it will end. Other additional information is such as; age of tenant, how many people will be living in the property and also how much money will be paid and after how long will the money be paid alongside with the processes involved.
Normally there are two terms of tenancy whereby we have the fixed term tenancy and periodic tenancy. Fixed term tenancy is an agreement between a landlord and a tenant until a specified date. In this type of tenancy is where most people lie. Most rental property are paid for every month especially on residential homes. For periodic tenancies, the landlord and the tenant agree that the tenant will pay rent for the home for a certain period of time say five years or ten years.
At the end of the fixed term tenancies, it changes to a periodic tenancy unless the landlord and the tenant enter into a new agreement or either the landlord ends the tenancy due to reasons indicated in the act containing periodic agreements. The tenant on the other hand can also end the tenancy if he or she is no longer interested in renting the property again or there is need to relocate. IN events where the tenant ends the contract, they must give a clearly written note one month before the end date.
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As for the tenant the they have a responsibility of making sure that they pay the rent on time, keep the house clean and tidy and also ensure they report and problem with the house to the owner or caretaker immediately. Note however that in case anything in the property is damaged as a result of carelessness, then it is the tenant who takes care of the repair costs. They also should know that they are responsible for the monthly bills such as water and electricity, together with replacing old smoke batteries.
There are normally guidelines that govern tenancies and related contracts. Among them are; the land lord must maintain they property they have rented out and at the same time ensure that it is in good condition before handing over, state whether the property in question is insured and ensure that the home is suitable for residential purposes in that the property is free from health hazards.
Whether an individual is a tenant or a landlord it is necessary for them to be aware of basic guidelines to ensure smooth running of the contract.
ownership association.
By Briana Frazier
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WORKING WITH A REAL ESTATE AGENT
3 lessons I learned about paying for my first home
Having a realtor is among the best choices one could ever make. Home buying is a process that involves a lot of transactions and signatures. After signing the contract of home buying, several procedures such as home inspections and appraisals follow. If the home in question has problems that need to be repaired then it is important to discuss the matter with the seller. There are also loans that need to be paid for, insurances to buy not forgetting that there are property that are usually under a home
ome purchase is a dream of almost every American. Buying my first home at 26, the process was both exciting but off course with a few challenges here and there. The experiences taught me a lot of new things I knew not about. Few of the lessons I learnt were;
Realtors in such instances are essential since they have more experience about home purchase thus they smoothen the whole process. A realtor represented me in the home buying process and in an instance where we visited one of the home houses. Since he had more experienced in the field, he was able to realize that the home was overcharged and we baked out in time. I got the realtor from a family friend who had bought a home earlier than me and since the allies had accredited the realtor I was confident in him. Working with the real estate agent was a good experience since he was there in every stage of the home purchase and at no single point did I feel left out. I realized that one should be careful when selecting a realtor and when possible have a personal relationship, having good ties helped me in the entire process.
Closing costs can end up being complicated especially if it the first time. They include expenses out of the pocket such as notary fees, cost of deed and title insurance. As according to my realtor’s advice, I asked for a credit from my
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DO NOT BE AFRAID TO GET AGGRESSIVE Home purchase being a personal and financial commitment, it is important to push for answers one need in order to make an informed decision. At the stage as buyer one should not be afraid of not offending anyone in the process of seeking for answers. However, it is not advisable to be rude and arrogant. Buyers conduct their due diligence and confidently run necessary inspection making sure they do not settle for less neither do they buy a home that does not fit their interests. I in partnership with my realtor had t5o be hard on the seller and their realtors otherwise I would have bought an overcharged house with a lot of defects. Being aggressive had its own challenges which ended up being a blessing in disguise. It is because I backed out on several house especially a specific home I was particularly attached to but it had a lot of problems with the piping and was similarly expensive. Finally I settled on the house I currently live in and all has been okay.
Most sellers get mix up when the pre-approval letter indicates that one can receive more money than the actual amount the seller needs. As for my pre approval letter, it indicated that I was entitled to more money than I actually needed to buy my first home. Since I very well knew I did not need the whole amount so I was able to get money that was just enough.
seller which is a common practice and it helped me in knowing the amount of money to prepare for upfront. I also realized that one can ask from the mortgage lender the extent at which they support the buyer towards the closing costs. I thought that it was a good idea to pay more money in the closing cost but I was surprised when my real estate agent advised me not to.
FINANCIAL LESSONS
I always read from the newspapers and journals about the PMI and always had a negative attitude. However when I purchased my first home, I bought a PMI which so far has been manageable. The insurance can be a blessing or a curse depending on how one perceives it. Many people do not like it since there are additional monthly rates involved which do not add up home equity. I preferred having a PMI rather than spend all my saving on the down payment and that way I am able to comfortable service the loan and at the same time have some saving to cater for renovation and maintaining the home.
One of the biggest mistakes I ever made was hiring an un-collaborative attorney since during closing he was unavailable all along and could not answer my calls leaving me stranded. It became worse when I would engage a conference call and the mortgage lenders, seller and his agent failed to turn up which extended to physical meetings. It is because the teams had no history of ever working in harmony. It really cost me a lot especially b4ecause I ended up wasting a lot of time and money before I got the home.
Frazier Group Realty Inc. 3739 Sixth Street Riverside, CA 92501 “Your Real Estate Navigator” rubyfrazier@fraziergrouprealty.comwww.fraziergrouprealty.com O: (951) 686-5261 F: (714) 908-7298 Lic# 01751773
It is important to learn of the housing market before you enter the actual process of house hunting. It will help the buy to budget for the process involved. Determine what type of market is in Mississippi and the inventory levels. Also find out the current market value of the city you want to move to. After doing that it is the right time to put finances in order. As a buyer it is important to assess your debt to income ratio. DTI simply means the amount of money that is used to pay debts versus the amount of money one receives as income. At times a buyer may
ississippi is the home of Elvis Presley commonly referred to as “the king”. It is located in the southern parts of the United States with the state of Alabama in the East and Mississippi River in the west. When one needs to move to Mississippi there are important consideration to makes and are very necessary. Some of them include;
By Edwin Engelke
the most expensive cities while Crystal springs, Brookhaven and Lauren are the least expensive.
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Are you ready to become a homebuyer in Mississippi?
WHERE DO YOU WANT TO MOVE TO/ Mississippi is a big state with many states. One has to determine the place one intends to buy a home which can be challenging. Specify on the amount of money to want to spend on a house and the lifestyle of the place. Cities such as Long beach, Natchez and Biloxi are among
Here are some considerations to make
MISSISSIPPI HOUSING MARKET
find that he has to work on the DTI so that money spent on debt is way less than income to also improve on the credit scores. Good credit scores are attractive to move lenders and as a result they become more confident in you.
Young families have to check on the quality of school in Mississippi. Being a state it is wise to get a place with quality education and one which is affordable and off course in a safe place. I f an individual is satisfied with the factors and is confident, then he is good to start the both exciting and adventurous house buying process.
QUALITY OF EDUCATION
JOB SECURITY
DOWN PAYMENT
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require a minimum down payment of 3.5%. After the down payment is in order one is sure that the home purchase process is going to move fast.
INSURANCES TO BUY IN MISSISSIPPI
A prospective buyer needs to find out for how long they intend to use the house. Duration of stay is essential since it will make the buyer assess whether it is easier to buy or rent. Moreover they are able to determine which type of mortgage is best for them. There are two types of mortgages; we have the fixed types and the adjustable type. I for example plan for settle in Biloxi forever then choosing the fixed rate mortgage is better. Adjustable mortgage rates are used by people who want to pay the mortgage in a short period of time.
DURATION OF STAY
It is important to know the ratings of most of the lenders in Mississippi. With multiple varieties it is easier to pick on the best rate from one of the lenders. Prospective buyers not only focus on the interest rates but also on the down payment and the closing costs. It is wise to check on the APR to check the cheapest loans. Check also whether the budget allows one to allocate some of the income towards other savings account such as payment retirement plan and college savings. If the interest is too high one can choose to either deposit more money during closing or negotiate with the lender.
Before purchasing a home it is crucial to thoroughly go through all the insurance that must be paid for on or before closing. Find also if there are any special insurance needed such hurricane insurance and how much they cost. Buyers have the freedom to visit several insurance sellers and determine what amount to pay. Take note also of some property that the insurance is catered for in the HOA. Prospective buyers at this point also need to figure out which places have the most and least occurrences of hurricanes.
which occurred in 2008 can come up which needs one to be prepared.
Job security is a big factor in determining if one is legible for a mortgage. It is also important to choose which type of mortgage to consider. Mississippi being a state that is expanding in its economy increases the chance of employment. However it noteworthy to understand that disasters like the Covid 19 in 2019 and the great recession
Just like any other state it is necessary to have enough savings for a down payment. Most states require one to have a minimum amount of 20% of the total home value. After knowing how much is needed from the mortgage lender one is then able to know the way forward. Most peoples cannot afford the 20% down payment. At such a loan it is the high time to find out whether one can get private loan such as FHA and VA loans and the minimum down payment they require. FHA loans for instance
MONTHLY BUDGET
HAVING A GREAT REAL ESTATE AGENT
A professional real estate agent with experienced is a good deal for buyers. It is a good idea to have a personal relationship with a realtor in your buying area and express your interest in getting property within a certain locality. As a buyer you have to show that you are ready to buy and have
Realtors warn people against property that is unsafe or other wisely not worthy. People sell their property because of different reason and when the reason is sensitive, such divorce people will prefer to sell off-market or when a seller wants to discreetly liquidate stock. Note also that most top end property is sold offmarket.
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to flexible working schedule so that you visit several houses. A good realtor will inform you about homes that probably sellers have not yet signed for them to be listed and as a buyer you get to visit them home earlier than anyone else.
he current real estate market is intense and having a home can be tricky. However there are strategies upon which one can use to acquire your dream home even before it is in the market place. Some of the methods buyers use in home purchase process is;
By Francine Marsolek
SEPTEMBER 2022 | 93
Up your buyer’s game. How to buy a house even before it hits the market
on the transitional life of parents is important. People with kids have a higher probability of moving from a given place to another in search of homes closer to social amenities such as schools.
DO A MASS MAILING AND PLAY IT SAFE
then it is a good idea to knock on doors asking if there is a person willing to sell their homes. As a buyer you should have a list with your contact details and other relevant information. However with knocking on people’s door the buyer should be ready to receive rejects but it is okay. It is better for a prospective buyer to visit during the weekend when most people are at home or during public holidays
BOOM IN VARIOUS PROPERTY PORTALS
Ifknow.anindividual
It is important if buyers register with different property portal so that once they have property to sell you are first to know. The method is also of great advantages since buyers are informed of any homes with offers whereby one can be the first one to buy the property.
CONTACT HOME OWNERSHIP BOARDS
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Sometimes mailing works wonders in buying homes. As a buyer one writes a letter showing who you are and asks if someone is willing to sell a home in the near future. There are sellers who prefer to sell their homes off market in order to avoid real estate charges. After finding a house, one visits to see whether it fits their interest but always note that one must not necessarily buy a given home. Home inspection is also essential to avoid extra expenses in the future thus a buyer should hire a professional to check if there are any given problems with the home. The trick is to get an expert do a due diligence for you since most realtors recommend only 10% of the homes. Buyers also must have the ability to make decision quick since there is usually less time and be ready to purchase a given home.
APPROACH LANDLORDS
Informing others that you are looking for a home to buy is a good idea. As a buyer one can probably tell most of his friends and family that if they have heard of any available house they tell you. Those that you tell your interest will keep their ears open and eyes peeled and in case of any home found you will be the first person to is specific about a given area
If buyers want to buy property in a particular area or flat, then it is easier to contact the home owner association boards and ask them if anyone intends to move from their locality. Also it is worth to ask them if they have an empty house they are willing to sell. With the modern technology it is important to also visit their social media platforms and express your interest since most building have their website. Using hashtags such as #real estate or #moving will show you many houses that are up for sale.
Talking to people is crucial. Also people are encouraged to join clubs such as lion’s club and while having regular communication, you tell your fellow club member that you want to buy a home and if they have heard of any to inform Checkingyou.
Landlords who have heard a certain home empty for a long time would probably love the idea of selling the home. Note that the further away the landlord is the faster he would sell you the house. When a buyer spots such a home, they inform the buyer of their interest to buy the house and if he is willing. If yes, as a buyer, you visit the home and if pleased with the house the purchase process proceeds. Sometimes it is the buyers who prompt their seller to sell for them the house and the method works incredibly well.
TALK TO FAMILY AND FRIENDS
ERIC L. FRAZIER MBA NMLS ID: 461807 Vice President and Mortgage Advisor First NMLSBankID: 551928 Mobile: (714) Eric.Frazier@fbol.com475-8629 SPEAKERS: MEAGAN HARRIS Program Coordinator Golden State Finance Authority Office: (855) 740-8422 Fax: (916) mharris@rcrcnet.org444-3551 Learn about: • Update on the California Housing Crisis and Interest Rates • How to Access your Home Equity with First Bank Home Equity Lines of Credit & Loans • How to obtain an interest rate of 3% on First Bank Checking Accounts • How to qualify for Down Payment and Closing Grants and Loans from Golden State Finance Authority • How to qualify for Down Payment and Closing Grants and Loans with the California Housing Finance Agency • How Intermediate adjustable Rate Mortgage work & provide very low-interest rates • Home Purchase Strategies, FHA/VA/USDA, and other special Programs to Help You Buy Now! Let’s get you there. www.first.bank There’s no place like your own home. FIRST BANK WISDOM ® : SEMINARHOMEBUYERONLINE SATURDAY, SEPTEMBER 10 10:00 to 12:00 PM Register http://buyhomeseminars.comat BRANCH MANAGERS John Dong, Corona Diana Leja, Jurupa Valley Anna Flores, Mira Loma Albert Rhee, Lakewood HOSTS:
In the last five months the real estate market has witnessed a drop in buyer demand although hopes for improvement are still high due to the back to school period. It has been attributed to the seller driven market characterized by the constant median home price increase, high mortgage rates and tight inventories. The rest of the third quarter will most probably experience slower buyer demand reflected on the low year over year rates as well as the low paced home price increase. In most third quarter months, buying activities is lower as compared to the second phase. However in 2022, the case was different since most houses were unaffordable. There is hope for home price reduction in the near future which could be as a result of seasonality, low buyer demand or both.
Real Estate trends to watch out for in the next quarter
What to expect in the next quarter
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ARE HOME PRICES DROPPING?
By Harriet Robertson
New York Housing Market Update:
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ew York also referred to as the Empire State, is known to high market prices, just like the rest of the United States. The empire state also has higher inventories and characterized by high mortgage rates. As experienced in the second quarter particularly June, the number of homes that were available for sale was only 38,960 a drop from 45,400 experienced in 2021. Inventories were tighter at the time since dropping by 6.1 percent to 3.1 months. Q2 also experienced a drop in the number of new houses that were listed at the time. These prior incidences led to increase in the median sale price from $379,000 to $428, 820. Research says the median home prices in New York had had a constant increase in prices for 26 continuous months.
BOTTOM LINE
As stated earlier, Q3 is associated with a slower real estate market. It is foreseen that prices tags with sky rocketed priced will be on the decrease but the prices will still be high. According to Jessica Lautz, emphasis should be on affordability. A real estate market with high mortgage rates and home prices discourages many first time home buyers. However if the buyer market is still strong, home prices will definitely go up in favor of sellers though it is expected that prices will leverage.
NEW YORK’S REAL ESTATE MARKET IN AUGUST 2022
Research conducted on the New York’s market trend indicates that rising rates must not necessitate to lower home prices. Take note that not all property buyers need mortgages. In such an incidence the buyer has nothing to worry about whether the interest rates are high or low. It is also the reason of the housing market gap demand for high end homes are high while those of the lower bracket are low.
Covid 19 pandemic hit New York City hard. In August alone it was a buyer market which was as a result of unaffordability. Most people are relocating to the suburbs where lifestyle is cheaper and others moving from more expensive town more affordable ones. August witnessed more number of homes available for sale than the buyers willing to buy showing that once after a very long time supply was more than buyer demand. Currently the real estate market total sales to listing ratio are less than 0.12which in turn tends to favor buyers. For instance in July 2022 the median listing price was $890K while the median sale price was $820K. Normally buyers prefer a sake to list ratio of 90% percent and below whereas seller like it when the sale to list ratio is 100% or higher. July favored buyers since the sale to list ratio was less than 100%.
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WILL MORTGAGE RATES NORMALIZE?
HOME PRICES AND INVENTORY LEVELS
Fed’s action and growing fears of recession will aid reduce the mortgage rates. Realtors would definitely not want to get back to scenarios experienced in the earlier times of the year where they recorded reduced home prices. It is prospected that 30 year fixed mortgage plan will have their rates slightly above 5% while those of 15 years will be at 4.35%. Inflation evidences will further lower mortgage rates. According to Core logic’s Hepp benchmark rates in a 30 year mortgage will 5.5% in the third quarter of 2022.
There will be more inventories in the market but not enough to meet market demand. It might be the best time to buy property in in the third quarter since there competition is not stiff. Seller also advised to put up affordable price tags on homes for sale. Q3 is the best time for first time home buyers and those whose offers never went through to try their luck. It is also clear that market demand on the neighborhoods of New York City currently have higher market demand, examples being West Village and Flatiron due to their restaurants, shopping and nightlife.
Rent prices are high in New York. As long as there are high inventory levels and supply cannot meet market demand, rent will continue to increase. When the real estate market is competitive, automatically the rental market increases in favor of the landlord. For example in May 2022, the mean rental asking price had increased by 34% compared to the previous year.
Buyers do not like to accept offer that do not have pre-approvals. Also the pre-approval letter should be less than a month old. It does not matter on how much a person puts in the offer but as long as the seller has no proof, most of them will reject the offer. It is a big mistake if a property buyer buys a car since it lowers the credit score and would reduce the loan amount to be given. Making an offer blindly also makes
Are you thinking to go all in with a big offer on a house?
By Janet Petrozelle
Someone
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may get lured into thinking that if a buyer makes the highest offer he will win the bid. That is not always the case since due to various reasons such as;
Inconvenient timelines to the seller are a turn off especially when they feel they are being pressurized to move or they want to immediately want to sell out the property but the buyer’s times indicates that the buyer will take longer than the seller intends. Curbing this is possible if the buyer or his agent communicate with the seller or the listing agent involved and ask when they
TIMELINES THAT IS NOT FLEXIBLE
intend to close the property and see if they can adjust to the seller timelines. Doing these results to a win-win situation on both parties.
PAPERWORK IS NOT RIGHT
Here are 6 reasons why your higher offer won’t win the house
Some buyers will ask the seller to include certain appliances within the home such as chandelier, Jacuzzi which the seller cannot afford. In most cases if the listing does not include certain features you do not have to insist to the seller to include them and think that by giving the highest offer
the deal will strike through. The might think that as a buyer you are taking advantage of the situation which is not necessarily Itright.isprofessional for a buyer and his agent to be disciplined when making the offer. By saying so I mean that the buyer should also take care of the interest of the seller. Note that if a buyer practices something that will annoy the seller then he will automatically pick another offer.
GIVING UP AFTER THE FIRST OFFER WAS CANCELLED
There are instances where by sellers make the highest offer but again give too many contingencies. Many contingencies make an offer to appear weaker since it makes it difficult to close earlier. For instance it is a deal breaker if you inform the seller that for you to buy his house you first have to sell out yours. It indicates that the buyer is not decided as to whether wants the property. Other contingencies that turn off seller are when they are asked to pay for most or for all the closing costs. Depending on whether you make the highest offer or not it is advisable that only important contingencies are put in place such as the home inspection, financial and appraisal contingency. Skipping the above three contingencies is very risk to the buyer and may adversely affect him or her.
THE CASH BUYER WINS
the seller doubt if really the person is capable of making the initial down payment and also catering for the closing cost involved.
ASKING FOR TOO MANY INCLUSIONS INSIDE THE HOME
In most cases it is common that offers with a high prices way above the listing price are cancelled. It is because such offers often have one or two mistakes like failing to have a pre-approval letter or being incomplete. If an offer is cancelled someone should not give up. Instead ask the buyer asks his agent to tell the listing agent that if possible they can still consider taking the offer. As a buyer it is important to find out why the offer was rejected and if one can correct and bid again. There is always room for negotiation even if a counter offer is not involved. In presence of counter offer the buyer discusses with the seller until they come to an agreement.
There are instances where by the seller can pick out on the among the lowest offer if they are cash buyers.
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Paper work involves writing a personalized letter to the seller telling him that you love the house and why you would love to buy it. You can include that it close to a school thus suitable for your kids. Such letters are appealing the buyer and if well written and with a less offer then there are chance of winning the bid.
In most cases home seller love cash buyers and as long as an offer letter is attached to the proof of funds the buyer is will most likely win the offer. An advantage of having cash is that o the purchase process is reduced in a big way since there are no mortgage lenders, escrow is closed quickly neither does the process require an appraisal. About 43% of home buyers in 2014 were cash buyers which show that although such incidences are rare, they are present. If possible cash buying stands a better chance to win a bid and owning a new property.
TOO CONTINGENCIESMANY
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TLC is the acronym for tender, loving and care. The term sounds contradictory when it comes to real estate. I t is a term that realtor and especially sellers use to explain to the buyer that it require some touches here and there. TLC can be a good thing and at the same time a word that indicates that the house is totally messy and needs repairs that could end up very expensive. In some instances it enables the buyer to get the house in a cheaper price and also get to customize the house in way that the buyer finds best. Other instances require a buyer to invest a lot of time, money and hard work in TLC homes which end up frustrating the buyer, especially in areas where a home is bought with a lot of problem such as broken plumbing system, stained carpets, worn out paints and other issues associated with buying a house.
Do you understand what TLC means in home buying?
Buyers are always encouraged to have an experienced home inspector who will be able to detected serious problems that may be invisible. With such experts one can determine if buying a TLC home is a good deal or a bad one. It is best to back out when the home in question requires numerous amounts of money to repair and have new installations.
By John Costigan
PROS OF BUYING A TLC HOME
Buying a home that requires TLC is a good idea especially when a buyer is ready to make some installation and repairs. Such home sell for up to 10% less than the amount the seller intends to sell the property at. Buying the home cheaper automates that the money saved in home buying process can be used to customize the home according to on desire by for instance painting the color of choice and installing the floor of
MEANING OF A TLC HOME
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Thereduced.second
The last step in determining the amount of, money to be spend in the home buying process 5o subtract the amount that will be spent on repairs from the estimated home value of the ready to move in homes. The value that one will get is the one that should be the home price of a TLC home. It is however difficult for the prices to be exactly the same but one gets the correct range to work with.
might buy a home and start repairing but before completion realize that the home will not have any more value. At such a point the person will have wasted a lot of money in acquiring the building permits, appraisal and loans to pay. It thus advisable not to buy a home that is completely wrecked out.
Itbudget.hasdisadvantages
step is to find out the amount of money that will be spending in repairing the home. Buyers should bear in mind that they should only spend 2% to 5% in the home purchase on renovations but with major repairs the cost could rise up to 10%.
when an individual needs a house quickly but cannot move in immediately due to its condition. Duration of repairs vary from a few day to several months depending on the extent of damage of property. Buyers of TLC home also need to know whether or not to involve a contractor in the whole process. If the repairs take a longer time than the expected time required, it can cause stress to the family.
Buying a TLC home has its advantages and disadvantages. Some of the demerits incurred are that buying a home that requires tender loving and care is that it may end up a very expensive process. Especially in instances where one does not involve a home inspector or the home inspector does not identify major problem making the buyer to have an incorrect
HOW TO BID FOR A TLC HOME Find out the home value of homes in the neighborhood already sold out. That being the first step that is involved, one find out the amount of money the buyer will save if they decide to buy the home and also if they home being a TLC is priced fairly or should the prices be further
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choice. Buying a cheaper home also dictates les money on property taxes.
It is also key to note that one can buy a TLC home and by making adjustments required they are able to add on the home’s value.
Investors prefer to buy such homes, make some amendments and up grading making it a ready to move in. The buyer can then choose whether to be a landlord or sell out the property making profit. Other prefer to buying of TLC homes and repair the home slowly as they reside in the area.
CONSIDERATION IN BUYING A TLC HOME
With that in mind a buyer is wise enough to determine whether purchasing a TLC home is worth to consider. When choosing becomes difficult buyers are encouraged to seek help from professional realtors and come up with a fruitful soluion.
It is unfortunate when one an individual buys a home but suddenly loses interest on the property or finds no value in repairing the home. It then leads the buyer or sells the house again at much lower prices. For example an individual
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MARKET TREND
San Francisco Housing market update: A look at prices, market rates and forecast for Q3, 2022
SINGLE FAMILY HOME
In July 2022, the average number of home that was sold out was ant one hundred and seventy three. The value indicates an -26.1% year-overyear and is also a decrease form two hundred and thirty six homes sold in June 2022.
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Francisco since 2012, is one of the most expensive states in the U.S. Northern California fetches the highest prices when it comes to both purchasing a home and the general lifestyle of the area. It is common for people to wonder whether the home prices in S.F are likely to decrease but to be honest, there are little to no possibilities of any such scenarios. Since Covid 19 pandemic mortgage rates are extremely low which would be a reason for high home prices.
Median sale price of homes in the state was 1.6 million dollars showing a -9.73% year-over-year. The value also shows a drop from last month whereby the market price was 1.8 million dollars Median market days for such homes in July were
By Norman Green
San Francisco in July recorded lower sales compared to 2021. Sales were at 3.2 percent lower, the average value of homes being$1.5 M. The market days in the season were higher also with 30 days while 2021 the number was 18.
San
Further, the number of houses sold was lower being only 420 while in the S.F market in 2021 sold over 600 homes.
Median market days of town houses were 42 showing that the homes stayed longer in the market than 20221 due to the +13% YoY. It further depicts that July had more market days compared then June the month prior which had registered 26 days. Town houses on the other hand had 36 median market days reflecting a +29% an increase from the same time last year. June had 23 days which shows that townhomes took longer to sell in July.
CONDOMINIUMS AND TOWN HOUSES
San Francisco being among the most expensive states in the world has faced major setbacks especially in the bays areas. John Gittelsohn explains the situation by saying only few people are willing to go the extra mile in order to afford the lifestyle in such areas mainly San Francisco, San Jose and Oakland. He further explain a scenario where a five bed roomed palatial home had an opening market of $9 million and by June the market price had dropped to $4 million and still no offer had been dropped. Bay areas in San Francisco are particularly very expensive which the reason lower market demand is. Recently there have been high mortgage rates which only worsen the market state. However there is still some home due to low number of available houses for sale.
are deemed to further go up with 8.6% over the next 12 months. As long as the number of homes available cannot meet market demand then it automatically records higher inventories which encourage high market Sanprice.Francisco
San Francisco investors have enjoyed incredible profits especially Northern California. Major reasons that led to this is that the state is home to major tech companies such as Face book and twitter with thousands of employees. It is thus worth to invest in S.F.
OnJune.average
San Francisco is a seller market due to the increased number of buyers flooding the market and the high inventory levels. Most sellers report to have multiple offers on a home. Research further shows that most homes sell 8% above the listing price and pend for only 21 days. Homes with higher demand at times sell for even up to 19% staying for only 12 in the market. By July 2022 the sale to list price for all types of homes were 105.6% with – 4.5% year-over-year. Homes that sold above the list price were at 56.9% with -10.7 YoY while homes with price drops were at only 23.4% and +9.0 YoY.
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SAN FRANCISCO MARKET FUTURE FORECASTS
HOUSING MARKET IN SAN FRANCISCO
Purchasing property in San Francisco will be more Homeexpensive.marketprices
Condominiums in July 2022 went for $1.1M registered a -0.46% YoY. The data also dictates a drop from the previous month where home were sold out at $1.2M while town houses fetched a higher price in the same month 2022 with it had a +49.6% YoY and dictates a rise from $1.1M in
foreclosures will further go up Government aid and moratoriums made banks not to foreclose distressed homes during Covid 19 pandemic and thus filings on foreclosures have been low. It thus dictates that whether it is the third quarter of 2022 or later, foreclosures will Asincrease.from2012
townhouses registered a -50.0% YoY selling only 2 houses as compared to the previous month where by 5 homes were sold out. Condominiums on the other hand sold out 216 home in the area and indicated a -36.1%. The number got in July was a drop from the previous month which sold out 280 houses.
17 days indicating a +5 YoY while June were the median market days were 14 showing the homes stayed in the market longer.
BUYING TOO MUCH HOUSE
LONG REPAYMENT TERMS
The mistakes9
Buying
After the 2007- 2008 great recession, most mortgage lenders became stricter about buying a more expensive home. Essentially one becomes house poor if he or she is spending too much money to service a loan and in the process not able to invest in other areas such as retirement plans.
By Steven Rivkin
It is a problem that is mostly experienced with buyers that only focus on the interest rates and those that look forward to paying less money every month. Such people end up paying more money in the long run. For example if a buyer has a debt of $200,000 to be paid in 10 years with a 4% interest rate. The buyer might decide to pay the debt in 20 years with a lower interest rate of say 3%. The latter choice makes you pay more money in the long run.
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a new home is a decision that is both tough and complicated. However it is an exciting thing to get your new home which fits your interests well. In the home buying process there are some mortgage mistakes that are commonly made which negatively affect you as the buyer. They include;
It is worthwhile to compare different mortgage lenders and find out which one has the best rates. Sticking to one lender might be expensive in the long run. It is because different lenders have different rates and thus the need to do a thorough research. In most cases local lenders are better to work with compared to banks since the house purchase process is faster.
CONSIDERING THE INTEREST RATES ONLY
Most buyers at first get pre-qualified and then preapproved and that is all. Preapproval only gives one a rough estimate of the loan they can get. Asking the underwriter to draft a letter showing how much is qualified for is important in the whole process as the lender show the exact amount one is qualified for in a loan. The letter also serves as a commitment from the lenders Knowing the amount one will get, it is easier to search for a house. At times it makes one to get the house at a much lower price.
FAILING TO SHOP AROUND
INTEREST ONLY AND ADJUSTABLE RATES
GETTING LURED IN A DECEPTIVE MARKET
A buyer should be aware of the different types of loan offered by the lender they choose. Mostly buyers do not express their goals to the lender and end up making wrong decisions. An interest only rate takes a longer period of time and is best for people that intend to dwell in the home for a long time. Adjustable are used by people who need the house for shorter period of time. Both types of interest have their own pros and cons thus the buyer should be careful and make the right choice.
As a buyer you should f know that buying a house is a long and complicated process. Buyers make common mistakes especially in areas they do not understand. It could be because the buyer is in a competitive market or over excited about the house purchase. As a buyer one should know that it is their right to ask question in specific areas that are not clear. At this point one can tell whether the lender is suitable to work with. A good lender is pro-active and ready to answer questions even when they are asked more than once.
Mortgage processes are process making fishy lenders deceive you so that they get more money. Normally when the interest rates are exceedingly low, the buyer should be more careful. It is more likely to be a trap since it could mean large amount of money needed at the closing or
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SHOPPING FOR TOO MUCH
skyrocketing the interest rates when it is time to lock up their interest rates. Professional realtors are important at this stage as they can predict when the deal might not be a good idea.
different lenders.
Shopping around too much in a mortgage can be problematic as well as shopping less. Before the house purchase process, buyers work toward making their credit score as high as possible. Buyer should be aware than running a credit report too much lowers the score. Thus the buyer agent is helpful at such points when the buyer is not sure what to do. The realtor advices the buyer on the best lenders available, especially in a competitive market.
Most buyers focus on the interest rates given by specific a lender which is not enough. When comparing different lenders, also check on the fees paid, credit, discount point and the closing cost. If a buyer only focuses on one factor then it is difficult find out the total cost charged by each mortgage lender. Buyers are advised to assess the annual percentage rate in order to have more accurate data of charges with
NOT ASKING THE RIGHT QUESTIONS
SETTLING FOR PREAPPROVAL
Pre-approval and pre-qualification are words that are used interchangeably by most people. However the two words are very different in their meaning.
PRE-QUALIFICATION
Mortgage pre-qualification and pre-approval
PRE-APPROVAL
PRE-QUALIFICATION
Pre-qualification is the initial process of loan application. It is when a potential home buyer visits a mortgage lender who shallowly assesses the credit card scores and is able to tell how much an individual can get as loan. They advise the client on the best loan to take which matches the individual’s goals and interests. Prequalification can be undertaken online or even over the phone and is a process that necessarily does not have to be paid for since it is simply a guide.
PRE-APPROVALS
Pre-qualification is essential in that an individual is able to budget properly on the amount of
By James Joseph
INFORMATION NEEDED
As for pre approvals the information needed is copies of pay slips that show the recent salary a client received. A credit score is also necessary since the mortgage lender use it to determine if a person is financially disciplined to receive a loan. They also check on whether an individual pays other loan in time. For a pre-approval a bank account and the two most recent bank statements are also required. They determine the flow of income in and out of the account.
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Pre-qualificationPre-qualification’requires one to give general income information about an individual. A credit check is also necessary since it is used to tell the financial discipline of an individual. Other information needed are bank accounts flow, mortgage amount paid and also the down payment. As for pre-qualification no tax information is required.
Mortgage lenders in the process also need the down payment amount required and the amount of mortgage amount that an individual requires. As opposed to pre-qualification the amount of tax that the client pays is necessary. Personal and business tax that the client pays is needed. More so the amount paid in the last two years. When do I need pre-qualification and when do I need pre approvals.
What is the difference?
Pre-approval follow pre-qualification and is a more complex process. It is the letter that determines the actual amount one can receive. Pre-approvals take longer up to two weeks. In order to get pre-approved an individual must first complete a mortgage application and give the letter with other documentations in order for them to conduct careful financial analysis. In smooth running of pre-approvals the lender give the client the specified amount they are qualified for in mortgage and thus a person can clearly calculated the interest rate amount. Being pre-approved serves a great advantage since a potential buyer stands more chance to win the offer. It is a process whereby many buyers out of some reason skip but it negatively affects them in the long run.
PRE-APPROVALS
PRE-APPROVAL
PRE-QUALIFICATION
Pre-approvals are time consuming since they require an under writer to carefully study the bank statements, analyze the bank account and examine the financial discipline of an individual involved. For that reason it is possible that a pre-
A Pre-approval on the contrary is valuable
money to set aside for purchasing a home. They are also able to tall on the amount of money they can acquire if they want a loan and most importantly buyers easily narrow down to the best possible home to buy with the budget they have. Based on the information given to lenders, pre-qualification is just an estimate of what one can be given by lender but it is not a guarantee neither is it an agreement of lender lending you any amount of money.
As stated earlier pre-qualification can be done virtually and if all the information is given it is possible to be pre-qualified in just a matter of minutes. However the process can take longer depending with the lenders one chooses. Different lenders have different time frames. Other reasons that make it a shorter time is that it does not require a lot of information to be studied.
WHICH PROCESS TAKES LONGER?
approval takes up to 10 days maximum, for one to be told the actual amount of money one can receive for a mortgage.
especially when one wants to make an offer on a home. It makes an individual to appear more serious while making for an offer and thus a buyer stands more chances to win on the offer. Being pre-approved shows that the potential buyer has his or her finances in order. It is always advisable that an individual has a buyer gets pre-approved before making an offer on a house if he is really serious about the home purchase process. It is a stage that especially first time home buyers ignore and in the long run they end up suffering both emotionally and mentally. Being pre-qualified is not just enough.
WHICH ONE IS BETTER
Both processes are important in their own ways and that pre-qualification comes before preapproval. However it is essential to point out that almost every one can get a pre-qualification but that does not guarantee someone that they can get pre-approved for a loan. It is necessary to treat both steps keenly and practice good financial discipline to have good credit scores which is a merit.
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REO Property is one foreclosed by the bank and could not sell at auction.
OFFER THE BANK A QUICK CLOSING. Bankers look forward to closing the deal as quickly as possible. Prospective buyers should give a closing of 30 days maximum. An REO property is a buyer market that works in their favor. That is because their main reason for selling is to dispose of the home. Sellers commonly accept to lower the home sale price if negotiated, provided the deal will be closed fast. Although it is recommended that the deal closes within a month, there is no harm in closing earlier. One can even ask for an offer to close earlier, even a week. Very short closing might not be possible, but it will make the investor seem like a hero and make the bank want to work with the individual in the future.
MAKE CLEAN OFFERS (FOREGO UNNECESSARY INSPECTIONS)
An
In most cases, bankers do not manage the property and therefore want to do away with it as fast as possible. Such properties are cheap and ideal for real estate investors to maximize profit. Such properties are free of issues such as title liens; thus no need to buy PMIs. Although the houses have lower market prices, not all are worth buying. Most investors like to take advantage of REOs because of the massive return proposition these properties potentially have. To sell bank-owned property, bankers first find out the market price of similar homes recently sold. With that, they set either an equal or a lower value. Investors then present their offers to the bank. Following that, bankers select the highest and the best offer. REOs are associated with rigid bidding wars, and for one to emerge the best, one should;
Bankers are attracted to offers that have few to no contingencies. They don’t prefer to be
By Monica Hill
Ways to make banks say yes to your REO offer in California today!
SPLIT FEES
There are cases where buyers do not know the difference between a pre-approval and a pre-qualification. For example, for financed buyers, it is mandatory to have a pre-approval letter well drafted by underwriters indicating that you qualify for the loan. On the other hand, cash buyers need proof of funds showing that they have the funds required.
HAVING AN OBSCURE NUMBER
As it is always said, “cash is king.” A wellindicated proof of funds attached with an offer letter will probably make one the next REO owner. Most REO properties get sold to cash buyers for a lesser amount. There are also instances where one is not given a loan due to various circumstances. Buyers who want an REO usually submit an offer letter with proof of fund to show that one has the money required for the home.
Escrow fees, Title fees, and transfer fees get paid separately. Therefore, a buyer indicating that you intend to split the costs will show more seriousness, and it also suggests that a buyer is business minded.
HAVE THE HIGHEST AND THE BEST OFFER
BE FRIENDLY
In as much as bankers are strict, they are humans also. When purchasing an REO home, submit a personalized letter and the offer letter. It is advisable to comment on the home and inform the buyer why you got interested in the house. Being positive represents buyers in a good way and thus lures sellers to such people. On several occasions, it leads to long-term relationships.
An offer has to stand out to be considered in most cases. One can be unique in many ways, such as;
SUBMIT A PRE-APPROVAL LETTER
engaged in so much work and waiting due to numerous contingencies. Although it is rare advising one on waiving home inspection and appraisal contingencies, in such a scenario, an offer stands out if the process is skipped. Not having a home inspection contingency requires one to perform due diligence on the property; otherwise, purchasing the property might be expensive in the long run. Most investors prefer to inspect the home before submitting the offer, the safer option. Cash buyers do not need an appraisal contingency since they do not rely on lenders. Remember contingencies are not a must-have; the lesser they are, the shorter the closing.
Most bankers pick the best and the highest offers, where multiple offers are included. As a buyer, ensure your request is one such. Also, expect further negotiation and counter offers, especially in brutal bidding wars. Having the best offer includes tightening time frames and excluding contingency dates.
BE A UNIQUE BUYER
BE A CASH BUYER.
The obscure number is that which not many buyers have. For example, if a home is sold at $200,000, many buyers will have the exact figure similar to the given or insignificant differences. A buyer having a figure such as $200,200 would be a good idea; however, it might hurt. Unique values encourage the bank to proceed with the offer.
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BLACKBIRD HOUSE
Bridgid Coulter founds Blackbird house. Her inspiration behind having such a place was for her and other women of colour to find a place where they could feel supported, guided, and advance in their personality and profession. A co-working space founded in Los Angeles also became home to Lisa Gordon, a retired Psychologist. As for Lisa, after retiring, she looked forward to getting a place that would make her comfortable in her career and with people of the same race. After visiting many sites, she realized that most were not welcoming, especially to people of a different race, even though such places were empowering. Upon learning about Blackbird, Lisa was relieving to her because she knew people already in the space could understand her flaws helping her to overcome them. At the same time, she would make the transition to being a businesswoman.
ROLE OF A CO-WORKING SPACE
SUPPORTING BUSINESS WOMEN OF COLOUR
Blackbird House, A Black-Owned Co-Working Space, Is Working To Advance And Support Diverse Businesswomen
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Bridgid’s main reason for opening the co-space environment was that many women of colour were not well represented in the co-working spaces that were already in existence. She got curious about what a co-working space prioritizing women of colour would look like and thus started Blackbird house. Today the house is beneficial, especially after the Covid 19
Black-owned working spaces are significantly increasing. Today, most Americans are working from home due to the Covid 19 pandemic. Most women of colour find it relieving to work at home away from all the hassle encountered in a white colour job. Working from home as well helps women to take care of their families while at the same time being productive at work. A survey conducted in 2021 by Future Forum stated that most black women forced to work from home are treated more fairly than initially and are even more
Afterproductive.Covid
co-working space to make the home working experience feel better. With quiet working spaces, people can work comfortably without having to go to the office. Such places are also incredible with community development and foster creativity with other people of racism. Blackbird and other co-working spaces spice up an individual’s experience while working away from the office and provide an environment where people can work on projects with a tight deadline due to its quiet atmosphere.
19 subsided, many black women and Latinos are not in a hurry to return to their offices. 41% of Latin women and 48% prefer to continue working from the comfort of their sofas and dining tables. Working from home is enjoyable to such people, but it also has its fair share of hardships, especially for people with kids or a noisy family. Coming from such an environment requires
pandemic where many people are taking their financial freedom into their own hands. The place has eased the hardships that were initially present in getting a space whereby one would be supportive. Ericka James, the dean of the Walton School of the University of Pennsylvania, during an interview held in 2020, pointed out that the business world was slow to reflect the racial make-up of the country. He added that so far, it has been possible for people to go to the moon, more that it is possible to have self-driven cars, and people have even created social media platforms for people from all over the world to communicate. These achievements indicate that people have been ignored or have not majored in creating a more diverse working environment.
Cheadle spent a lot of time marshalling Blackbird house so its members would feel at home when they visited. It also aims at creating an experience for its members instead of a “folding table in the back”. She curated the house so that people who would visit would think about the beauty of other luxurious and gorgeous places such as Neue House and SoHo house and think of themselves in the same way. Some of its members classify the space as one whereby people appreciate themselves as they are without necessarily having the pressure of code-switch while working. Lisa terms the space as perfect and one that suits her needs perfectly well.
BLACKBIRD IS MORE THAN A WORKING SPACE
Blackbird house is not only a co-working space but also a place where giving in-person and digital responsibility takes care of the rate of production, mental health or well-being and
advocacy of women of colour. Bridgid Cheadle plans the house in other states and even internationally. The blackbird house in Los Angeles includes a communal work environment, six private offices, multiple conference rooms, a meditation room and a café. In as much as the space prioritizes mainly women of colour, it is also open to other women.
GLOBENEWSWIRE.COMFROMPHOTO SEPTEMBER 2022 | 125
Real Estate you own is not like cars that decay over time and you have to replace them. Real Estate you own is not like clothes that go out of style and you have to buy new ones. Real Estate you own is not like expensive vacations or experiences that only last a moment in time.
Real Estate you own is not like staying at your parents house where you know can’t stay forever.
Home ownership brings stability to individuals and families who have never had a dwelling place that they could call their own. There is something special about owning real estate that is unlike anything else on earth you can own.
Real Estate you own is not like an apartment where the landlord may increase the rent until it’s no longer affordable.
126 | SEPTEMBER 2022
by Eric Lawrence Frazier MBA
Home Ownership
Home ownership is the beginning of wealth that increases over time and becomes your estate & legacy
Home ownership is the pride of a mother nurturer and the kitchen her domain
Home ownership
Home ownership is the pride of a father provider and protector of his territory and family.
It’s the birthday parties, and anniversaries in the living room and kitchen.
Its’ the family nights and block parties and the fellowship of family connections
Until you say it’s time to move.
It’s more than money saved, gifts recieved and grants It’sobtainedmore than the debt you incur to buy it.
ownership is the manifestation of you - your style, your colors, your smell, your stuff, your junk, your memories, your yard and your spaces, your life.
it’s the high school and college graduation, and wedding receptions
It’s the height markers on your first child’s bedroom wall. It’s the hearts drawn in the concrete slabs when you pour your patio floor
Home ownership is the foundation of permanence and the place where life happens, birthdays celebrated, deaths mourned.
Home ownership is the place you build memories that can never be taken from you. Memories etched in walls and concrete, experienced in rooms and floors, Memories living in trees and shrubs planted by your Howehand.
It’s more than the payments you make to own it. It’s more than the appreciation that comes with keeping it over time.
It’s the back yard barbecue with friends, neighbors and family contentions
It’s memories, it’s family, and it’s life that can happen in one place
It’s more than real estate. Land, brick and mortar, wood frame construction and chicken wire.
