Januaary 2022

January 2022

Key questions

to ask your agent

A fresh start —

Winter home staging

Patrick Jones Jones Luxury Group

7 Things you need to know

before investing in real estate

contents

professionals 4

Consider the down payment — Secrets, myths and misconceptions

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A fresh start — Winter home staging

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3 Easy ways to convert internet leads into real-world sales

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Patrick Jones

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Key questions to ask your agent Initial investment — 7 Things you need to know before investing in real estate

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Consider the down payment —

Secrets, myths and misconceptions Agents and mortgage brokers alike understand that one of the biggest hurdles facing their clients is the financial burden of a down payment. Though navigating the house hunt and sourcing an affordable mortgage are key, affording a down payment looms large in the minds of first-time homebuyers. The fact is, there are decades of misinformation and confusion out there when it comes to how much is enough for a down payment. Plenty of would-be homeowners write themselves off, assuming they’re not qualified or don’t have the capital to afford a home. While some mortgage brokers and agents understand that 4

there are alternatives available for all kinds of homebuyers, here are a few facts and options to keep in mind to rewrite what you think you know about down payments.

The Myth of 20% Down — 40% of American homebuyers believe that a down payment unequivocally means forking over 20% of the home’s purchase price, up-front. What’s more, even homebuyers with a healthy amount in savings may balk at trading in their nest egg for a home they then won’t be able to afford. All that withstanding, it’s completely possible Copyright Featured Agent Magazine

The right down payment isn’t one size fits all, so homebuyers would be wise to explore the options that work best for their wallets and overall plans.

to afford a home with as little as 3.5% down. How about 0% down? The truth is, it can happen.

There are a variety of loan products and programs available to entice skeptical homebuyers. For instance, conventional loans that adhere to the federal government’s standards — as outlined by Fannie Mae and Freddie Mac — require just 5% down for loans up to $417,000. For loans larger than $417,000, down payments remain as low as 10%. This empowers first-time homebuyers to make that leap and buy into the market at a down payment rate that won’t break the bank.

Other worthwhile programs that cut the costs of down payments include: Fannie Mae’s 3% program, FHA loans, and VA/USDA loans. FHA loans are sponsored by the federal government’s Housing and Urban Development (HUD) agency and call for just 3.5% down for qualified buyers. Similarly, VA and USDA loans are cost-effective choices for most military veterans and active-duty military servicemembers. VA and USDA loans require 0% down and focus on homes for sale in rural and outermost suburbs. Altogether, the tides have turned when it comes to the myth of 20% down. The loan offerings out there are diverse and speak to would-be buyers from most all walks of life.

The Benefits of Mortgage Insurance — Here’s another question to consider: why do banks and mortgage institutions allow homeowners to utilize low down payment loans in the first place? While low down Copyright Featured Agent Magazine

payments benefit buyers, what about the institutions that back mortgages? Here’s where mortgage insurance comes into play.

When securing a low down payment, lenders pair these loan options with mortgage insurance. For those who didn’t pay that notorious 20% up front, mortgage insurance is a vehicle that protects lenders, while allowing buyers to build equity in their home over time.

The basic idea is for buyers to steadily pay into their mortgage insurance policy until they’ve accumulated that 20% they might have put towards a sizable down payment. This allows the initial investment of buying a home to cost less, while giving lenders some peace of mind, too.

What else do you need to know about mortgage insurance and how it relates to the right down payment?

It does increase buyers’ monthly home payments.

However, the monthly cost of mortgage insurance isn’t astronomical, though it certainly should factor into a buyers budget when determining a property’s affordability. The bright side is this: once a buyer has paid off a portion of their loan (typically that 20% equity rate) then they can cancel mortgage insurance and save themselves the monthly cost.

At the end of the day, finding the right down payment when purchasing a home is all about examining financial wherewithal and homeownership goals. The right down payment isn’t one size fits all, so homebuyers would be wise to explore the options that work best for their wallets and overall plans.

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A fresh start —

Winter home staging

Listing a home for sale during the winter months comes with its own unique set of challenges, not the least of which is how to stage a home for the season once the holidays have passed. It’s easy to make a home look beautiful and inviting when everything is merry and bright, but more challenging when all the decorations have been put away and the weather is still gloomy and gray. But with some creativity and the right tools, it’s possible to make winter home staging look easy. Here’s how: Clear the Clutter — Just like we tend to lighten up our eating habits after the holidays, our visual diet can use a break, too. The holidays are all about sparkle, shine, glitter and glam. And while all those things are beautiful, they can become overwhelming over time.

That’s why January is the perfect time to stage homes to look clean, soothing and clutter free. It’s a welcome 6

break after the visual feast of the holidays. And because people tend to be spending most of their time indoors during the winter, clutter or anything overdone can contribute to feelings of claustrophobic cabin fever.

Shift the Color Palette — After a season of bright red, kelly green, and shiny metallics, a more muted color palette feels right this time of year. Try adding accents in rich, classic shades like slate blue, burgundy, ivory and sage green. You definitely want to incorporate color inside to counter the gray skies outside, but it should be muted and subtle, rather than bright and bold.

Add Layers and Texture — Potential homeowners want to walk into a home that looks and feels like a place conducive to snuggling in and relaxing. Adding texture and layers with decorative rugs, warm throws Copyright Featured Agent Magazine

and extra pillows will create those feelings. Focus on cozy, touchable fabrics such as flannel, faux fur and chunky cable knits that look like a favorite sweater.

Make sure bedroom comforters and bedspreads have the same seasonally appropriate look and feel.

Bring the Outdoors In — Rooms always feel more authentic when you bring a bit of the outside in.

Place seasonal citrus fruits like oranges and grapefruit or pomegranates in a wooden or heavy ceramic bowl on the kitchen or dining room table. Pine cones offer the same earthy, organic ambiance. Even a small, indoor herb or succulent garden placed on a windowsill brings a dash of much-needed green life to a space and serves as a reminder that spring will eventually arrive.

Go Into the Light — When it’s dark and gloomy outside, it’s important for the home’s interior to look bright. Consider upping the wattage of the bulbs in lamps throughout the house and adding sleek torchiere lamps in dark corners to cast a warm glow Copyright Featured Agent Magazine

throughout the room. Don’t forget to leave the porch light and other exterior lights on so the home’s exterior appears inviting.

Show Other Seasons — Ask the homeowners for photos of the property during the spring and summer. Put them together in a photo album or in picture frames placed strategically throughout the house.

Those viewing the house will appreciate seeing the flowers blooming in the spring or the garden overflowing with vegetables during the summer.

Add Thoughtful Details — Little details can make a big difference to prospective homeowners who are viewing the house. Make sure there are clean doormats by all exterior doors so they can wipe their feet before coming in. No one wants to walk around inside all bundled up, so bring in a coat rack or place some removable hooks in the entry way so they can shed coats, scarves and hats and walk around unencumbered.

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Key questions

to ask your agent

Buying or selling a home is one of the most significant financial transactions most people will ever be involved in. So it follows that choosing a real estate agent to help reach those goals is one of the most important decisions anyone can make. Surprisingly, though, many people don’t spend the time they should or ask the right questions of their buyer’s or listing agent.

They might say that they prefer to ‘go with their gut’ or just ‘have a good feeling’ about someone. While it’s certainly important to feel a connection and develop a rapport with your agent, there are several pertinent questions you should also ask. This isn’t necessarily the complete list, but will give you a good start and generate some revealing information.

Questions to ask a listing agent

Have you worked with homes in this price range? A competent agent should be able to sell a home regardless of listing price. But it’s ideal to have an agent who regularly works with homes in the same range as your home. They will have unique insights into the market and the buyers who are looking for homes just like yours.

How will you market this listing? Your home won’t sell if no one knows about it. Agents today have more marketing options than ever and should be able to answer this question quickly and thoroughly. If they don’t seem to have a concrete plan in place, keep looking.

How do you communicate with clients? This isn’t necessarily a trick question, per se. But the best answer is for the agent to ask back, “How would you like me to communicate with you?” An agent should tailor their communication style and frequency to your preferences.

What is your average days on market? Simply put, days on market means the length of time a listing appears on the Multiple Listing Service (MLS) before it sells. While a number of factors affect this, agents with a lower than average number of days are pricing and marketing their listings effectively.

Questions to ask a buyer’s agent

How often do you work with people like me? Whether you’re a first-time homebuyer, starting over after divorce or widowhood, upsizing, downsizing or relocating to a new city, every buyer has unique needs. Find a buyer’s agent who has plenty of experience working with people in your situation.

May I speak with some of your past clients? Reading online reviews can shed a lot of light on how an agent’s past clients feel about them, but it doesn’t tell the whole story. Even if you don’t actually plan to speak with past clients directly, an agent’s enthusiastic or reluctant answer to this question can tell you a lot.

How many homes have you found in this neighborhood? The more familiar an agent is with the area you want to live, the better chance you have of finding a home you’re going to love. There’s a good chance they’ll know about homes that are about to come on the market but aren’t yet listed.

Do you work with a network of professionals? Connected agents should have a network of professionals ready and waiting — from lenders and title agents to contractors and painters. If they can’t offer solid referrals, keep looking for an agent who can.

How do you win a bidding war? There isn’t a single correct answer to this question; it’s more about how prepared the agent is with an answer and whether or not they have a plan in place to handle this inevitable situation.

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Patrick Jones Jones Luxury Group

Patrick Jones

The ability to understand that your mindset sets the stage for your success in life is an excellent trait to have.

For Patrick Jones of Jones Luxury Group in Phoenix, AZ, that right mindset paired with his positive attitude and strong work ethic, has led to a successful career as a REALTOR® for more than two decades.

Years ago, Patrick made the decision to leave his well-paying job in corporate America to dive head first into the real estate industry. “I had no idea what I was doing back then, but I knew I needed to make a change,” Patrick explains. “Life isn’t a dress rehearsal.

If you’re not happy with what you’re doing, do something about it or stop complaining!” Now with over 25 years of experience under his belt, Patrick can say with confidence it was absolutely the right decision.

Always guiding his clients with honestly and integrity, Patrick knows the value of communication when it comes to earning their trust during the buying or selling process. He never shies away from hard conversations. “If I have to deliver bad news, I do it as soon as I know about it,” says Patrick.

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It is exactly this practice that keeps his clients coming back and referring him to others. In fact, Patrick proudly boasts that nearly 95% of his business comes from repeat clients and referrals. For him, it’s as simple as being available to take phone calls and always being honest with clients about their expectations. In addition, Patrick has a solid social media presence, which is also helpful in gaining leads and making deals. “I do a good job marketing on social media, but it’s also important to be myself so followers get a good sense of who I am as a person. I’ve posted photo shoots for listings that weren’t even on the MLS yet and sold them through those posts.”

When it comes to specific market segments, Patrick specializes in luxury sales in the Scottsdale area, but isn’t above assisting clients all over the Greater Phoenix area with anything and everything, including rentals. Having owned his own brokerage for 15 years, Patrick speaks with authority when he emphasizes the importance of making personal connections to gain new business. “Real estate is all about building relationships, so the connection an agent has with Copyright Featured Agent Magazine

“Everyone knows someone who is a real estate agent, but I want to earn my clients’ respect by going way above and beyond their expectations.”

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clients should be a priority. Everyone knows someone who is a real estate agent, but I want to earn my clients’ respect by going way above and beyond their expectations.”

And just how does he do that? He recalls one recent incident where his clients listed their four million dollar home and inadvertently let their landscaper go in the process. When they couldn’t find another who was immediately available, Patrick took it upon himself to purchase a hedge clipper and lawn mower and got right to work. “The first time I used the hedge clipper, I cut off the tip of my finger and ended up in the Emergency Room! But I took care of the landscaping the entire time the listing was active. Talk about going above and beyond,” Patrick said with a laugh.

When not working, Patrick enjoys being active, whether it’s playing kickball, leading his dodgeball teammates as captain of the team, bowling in a league, playing tennis or spending time with his two Australian Shepherd puppies. However, it all feels like play to Patrick thanks to the way he has been able to integrate

his personal life into his work life. “I love that I don’t have to go sit in an office for eight hours a day. I work hard seven days a week and I play hard seven days a week. I meet and connect with a lot of people that way and that’s what I love most.”

Patrick has no plans to slow down any time soon and looks forward to continuing to focus on selling homes and assisting clients. Additionally, he remains active in his community as a member of the Board of Directors of the Carefree/Cave Creek Chamber of Commerce, the Desert Foothills Library, and serves on the Advisory Board for the Desert Foothills Leadership Academy.

Patrick also previously served on the Board of Directors of the National Association of REALTORS,® and is past President of the Scottsdale Area Association of REALTORS.®

So, what is the one piece of advice he would give anyone new to the industry? “Get up every day and act like a REALTOR.® Some days it will be easy and some days it will be hard, but you have to have that mindset every day if you’re going to be successful.”

Patrick Jones Jones Luxury Group | HUNT Real Estate | Scottsdale, AZ 480-251-2215 | jonesluxurygroup@gmail.com | www.jonesluxurygroup.com 12

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Initial investment — 7 Things you need

to know before investing in real estate If you’re considering investing in real estate, rest assured you’re in good company. Millions of Americans have successfully done so in the past, and countless others continue to do so each year. However, that’s not to say that being successful with real estate investments is guaranteed. Like all investments, real estate comes with its own set of risks, so it’s not a decision to be made without careful consideration and planning. Here are seven essential factors you need to consider before purchasing your first investment property.

You’ll Need to Do Your Homework — Before you decide to take the plunge into real estate investing, spend time talking with other investors, with your financial advisor, asset manager, or CPA. Seek out advice from those who have experience, and learn as much as you can through research. When it comes to investing in real estate, knowledge is power.

Running the Numbers is Necessary — Investing in real estate will require that you have an incredibly solid grasp on your financial status. If you intend to become a landlord, know roughly what rental rates the market will bear. Keep in mind that an investment is only lucrative if you earn money from it, either in the short term or long term. Basing your decision solely on an expectation of rapid appreciation can backfire.

Be Sure You’re Ready to be a Landlord — Being a landlord comes with its own unique set of challenges. Anyone who has been a landlord for at least a few years will confirm that things can and will go awry.

Your property may be damaged, or your tenants may be difficult. They may pay rent late, or they may be noisy and disturb neighbors. Consider that these possibilities are very real, and determine whether you want the responsibility of handling these issues. Even if a property management company assumes the bulk of the responsibility for your property, at the end of the day, you are ultimately the owner, which means that you’ll be obligated to make tough decisions from time to time.

Weigh the Pros and Cons of a Live-In Property — For your first investment, it is more Copyright Featured Agent Magazine

than worth considering the possibility of living in the property. You may find a home with apartment units attached, for example. Or you may invest in a duplex or triplex, and choose to live onsite in one of the units.

First-time homebuyers often find this option to make a great deal of financial sense.

Lead with Your Head, Not Your Heart — Unlike buying a first home to live in, or upgrading to your dream home, purchasing investment properties should not be an emotionally driven decision. On the contrary, falling in love with the way a property looks doesn’t necessarily mean it’s the right property to purchase as an investment. Remember that real estate investing is by and large a business decision, rather than an emotional decision, and you’ll be more likely to save yourself time and money.

Take an Honest Look at Your Liquidity — As a real estate investor, you need liquid capital on hand.

Appliances break, roofs leak, carpets need replacing, and rooms need to be repainted. You’ll need to make sure you have a reasonable cushion of cash on hand to be able to cover the costs of repairs, maintenance and cleaning of an investment property.

Have Realistic Expectations — Very few people get rich quick from real estate investments, and those who do are typically investors with years of experience. Furthermore, if you’re hoping to make a lot of money from a real estate investment, but opt for a low down-payment loan, chances are that you won’t see that dream through to fruition for quite some time.

Becoming a real estate investor has proven to be a dream come true for millions of Americans, and there is no reason why it can’t be the same incredible experience for you. However, it is not a decision that is best made spur-of-the-moment. Take time to explore your options, research the markets where you are hoping to invest, and ask for help from experts. You’ll find that the time you put into planning a smart investment strategy will prove invaluable over time.

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3 Easy ways to convert

internet leads into real-world sales

Any agent or lender worth his or her salt understands that today’s buyers start their home search online.

While plenty of attention is paid to crafting a quality website or commanding social media, how do you close the divide between casual online engagement and an actual sale? Consider some of the tips below when it comes to reaching through that computer or smart phone screen and turning a virtual lead into a real-world client.

Be responsive — Immediate results and responses are the norm in this digital era. Though this may not be your cup of tea, it’s essential to be swift in reacting to online engagement, like contact forms, newsletter e-mail signs-ups, or requested quotes. Online leads want answers and attention fast — that’s why they’ve turned to the internet. Do your best to be prompt in your follow-up. Even if the potential client isn’t quite 14

ready to commit, you’ve already demonstrated your readiness to hit the grounding running to earn their business. Don’t let e-mail inquiries languish in your inbox, either. Of course, schedules can get hectic, but the longer you let a lead go untouched, the greater the chance that he or she has already moved on to greener pastures.

Ask open-ended questions — If your digital communication with a potential client has begun to go stale, it can signal a change of heart or mounting disinterest in your lead. To keep your conversation flowing, focus on the client’s perspective and ask open-ended questions. Whether you’re reaching out through social media or e-mail, this approach to agent-client communication can inspire a sense of ease in your lead. Meanwhile, cementing a connection on the personal level, by engaging in a client’s Copyright Featured Agent Magazine

While online leads can feel abstract, or too distant and anonymous to cultivate into real-world sales, don’t be discouraged. The internet is a powerful tool and there are no ends to the possibilities in attracting potential clientele. interests and passions, can forge a bond that goes beyond the computer screen. This will make you far more memorable than those who are only focused on one thing: the sale. Be curious, engage genuinely, remember that the lead on the other side of the screen is a person just like you. Authentic interest and personalized care can showcase a personality that any client would love to work with.

Follow up, then follow up again — It’s easy for messages to get lost in the endless corridors of the internet. Emails get overlooked in inboxes, social media messages are read and forgotten. Don’t consider a follow-up e-mail, text, call, or message a nuisance. It takes a few tries to establish a line of communication with a potential online lead. The caveat is this: don’t Copyright Featured Agent Magazine

flood your would-be client with endless, automated messages, or communication that reeks of the unprofessional — think messages sent at odd hours, filled with typos, missing your professional signature. As always, be mindful in your communication and end messages on a positive note, while putting the ball in his or her court. Demonstrate that you’re committed to their business. Odds are, they’ll be reminded why they were interested in your services in the first place.

While online leads can feel abstract, or too distant and anonymous to cultivate into real-world sales, don’t be discouraged. The internet is a powerful tool and there are no ends to the possibilities in attracting potential clientele. All you need is the right approach when it comes to virtual communication.

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