June 2019

June 2019

4 Must-ask questions when

buying a home

Keeping your cool — How to remain calm when things don’t go as planned

Refresh your

real estate etiquette

Laura MacDonald also featured:

Mike Hege

contents

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buyers&sellers 4

Down payment secrets, myths and misconceptions

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4 Must-ask questions when buying a home

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Refresh your real estate etiquette Keeping your cool — How to remain calm when things don’t go as planned

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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 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.

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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 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 Copyright Featured Agent Magazine

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 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.

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. payments remain as low as 10%. This empowers firsttime 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 Copyright Featured Agent Magazine

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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featuredagent Mike Hege magazine

When Mike Hege purchased his first home 16 years ago, the experience opened his eyes to a new opportunity. Working as a Registered Nurse in the ER at the time, he realized that real estate provided a way to connect with people on a much deeper level. In the ER you only see people in challenging times, and Mike loved the idea of being part of a joyous transition by guiding people through the process of buying or selling a home.

Today, Mike is an accomplished REALTOR,® Broker-in Charge and Managing Partner at Pridemore Properties, a growing boutique firm in Charlotte, North Carolina. “As an independent firm, it’s a unique fit because we know each other, we help each other, and we love sharing and helping each other grow.” As a native to the area, Mike expertly serves clients in Huntersville and Lake Norman, as well as the entire Charlotte metro area, with a particular affinity for first-time homebuyers and sellers, as well as new construction.

A deep connection and trusted guidance is what sets Mike and his team apart. “Clients choose us because they know we are going to go that second mile for them. We make sure they get way more than they expect,” he explains. Mike and his team have a proven track record of client satisfaction, with an impressive 85% rate of referral. “Part of our mission is to guide clients and educate them throughout the entire process.”

Mike believes in lifelong learning, and is constantly looking for ways to grow. He holds a Master’s Degree in Real Estate and has earned numerous designations along the way. “I enjoy the day to day of real estate and all of the variety that comes with it,” Mike shares. “It’s been a very fulfilling journey for me, and has spurred me along this never ending quest for learning.” Mike is proud to be a part of the Dave Ramsey Network, as well as the Buffini & Company Mentorship Program. “I come from a place of

contribution and live by a mantra of constant never-ending improvement.”

This past year, Pridemore Properties reached over $100 Million, making it their best year, to date. “We pride ourselves on having a deep level of integrity as the foundation of our success, along with a courageous authenticity,” says Mike. The core values of the company are to offer remarkable service, expertise, and knowledge, but most importantly to establish an unshakable bond. The client’s best interest is always the top priority. “Without any regard to our own self interest, we make sure we always do the right thing for our clients,” Mike offers. “We have a culture as a company of building relationships, caring for our customers in a way that goes well beyond a real estate transaction and creates a valued experience.”

Mike and his team are very active in their local community and are always looking for ways to reach out and give back. One of the charities they are heavily involved in is Claire’s Army, which was created by Pridemore Properties agent Kevin Ratliff, in honor of his daughter who passed away. Claire’s Army provides care packages for pediatric patients going through cancer treatment, and monetary support for their families. Additionally, each year, a percentage of the company’s earnings get put back into the community by sponsoring various events around Huntersville.

“It’s not about promoting our business,” says Mike, “It’s about connecting with the community that we’re proud to be a part of.”

Mike works alongside his wife, Tami, who is also a licensed real estate broker. Together, they have four children, and a Golden Retriever/Cocker Spaniel mix named Chance. When he’s not working, Mike loves spending quality time with his family. He is also an avid reader, an active Crossfitter, and enjoys practicing martial arts, particularly Judo and Jiu Jitsu.

With a passion for service, and a willingness to go that extra mile, there is no limit to what Mike can achieve. “If we’re constantly on the journey of getting a little bit better each day, then we’re on the right path,” he says. “Buying and selling properties for happy clients reignites the flame every time. It’s a privilege to be in the real estate business, and to serve clients every day.”

Mike Hege, MRE Pridemore Properties | Charlotte, NC 704.491.9445 | mike@pridemoremail.com | www.mikehege.pridemoreproperties.com 6

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4 Must-ask questions when

Buying a home is the investment of a lifetime. To safeguard this investment, you’ll need to do your homework and go beyond the standard, surface-level questions that only get you so far. To understand a home’s true viability, you’ll need to arm yourself with all the facts, history, and records available. That way, you’ll be able to uncover any hidden costs or possible pitfalls that await. So, where do you begin?

For starters, consider the four questions below, inspiring you to think slightly outside-the-box when it comes to researching and assessing your future home’s potential.

What’s the cost of the average monthly utility bill? As you make your list of must-have home features, you’re probably crunching numbers for your budget planning. This is a wise move, but don’t overlook the smaller details. A properly insulated home with weather-proofed windows and doors can make all the difference in your bottom line during a harsh Copyright Featured Agent Magazine

buying a home

winter. The same is true for steamy summers that will test the durability and efficiency of your cooling unit.

Pay particular attention to these features and inquire with the current owners about what they pay in monthly utility bills. While you may have a budget in mind for your mortgage, a drafty home with old insulation can rack up your monthly pay-out. Get a clear idea of what the power rates are in the area and compare them to your potential home’s energy tallies.

Also, consider how much any standard maintenance would cost you — another forgettable annual fee that can add up over time. Before you buy, get the real lowdown on utility costs, from electric or gas heat to monthly HOA fees and trash collection.

What will you pay in property taxes? This helpful information is usually outlined on a listed home’s info sheet, but be sure to account for this detail. An offhand estimate shouldn’t suffice either.

While your purchase price impacts the home’s ongoing 7

tax rate, it’s wise to get a picture of the property tax history. Buying a home is enough of an undertaking without the added stress of unexpected or miscalculated annual costs that can break your budget. As an added bonus, understanding a home’s tax history and projected value is a smart figure to account for when making a savvy purchase offer.

Have there been any prior pipe or sewer problems? The Insurance Information Institute reports that broken pipes make up nearly 22% of all home insurance losses. This means that pipe and sewer issues are not only common, but they’re expensive. Be sure to ask sellers for a history of any pipe or sewer back-up problems, but you shouldn’t stop there. Hire a trusted home inspector who can verify a seller’s report and you can save yourself the headache if the pipes in question aren’t in the best shape. Likewise, you’ll be made aware of pipes that may need replacing shortly down the line. This research can help you adjust your offer accordingly to offset any future replacement costs.

Has the home undergone any major renovations? Sometimes, sellers and their agents are forthcoming with this essential information — but it doesn’t hurt to double-check. Request detailed records and documentation regarding any renovated bathrooms, additional wings or floors added, a basement 8

If you put in the legwork now, you’ll land a home that satisfies your budget, matches your vision, and will be the place you make memories to last a lifetime. that’s been finished — and the like. Firstly, this will help you assess the true cost of a renovation and help you craft a conscientious offer. Secondly, gathering information on prior home projects allows you to keep tabs on contractors used. It can also help you plan and budget for when the next round of renovations will likely be needed in the future. If you do this research, you could save yourself a hefty sum and earn an excellent bargaining chip along the way.

While some of these considerations may seem straightforward, you’d be surprised at the impact these finer points can make in terms of affordability, safety, and long-term planning. Buying a property of your own requires due diligence, but if you put in the legwork now, you’ll land a home that satisfies your budget, matches your vision, and will be the place you make memories to last a lifetime.

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Laura MacDonald Copyright Featured Agent Magazine

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Laura MacDonald Laura MacDonald describes her entry into the real estate industry as a fluke, which happened to result in a 28-year career. At the time, she was helping support her household by serving corporate clientele in the hospitality industry. When one of her regulars suggested she try her hand at real estate, Laura didn’t think much of it — but when a back injury sidelined her temporarily, she decided to explore her options and earn her license. Nearly three decades later, Laura has carved out an impressive track record and reputation for client-centered service that stands the test of time.

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Today, Laura serves clients across the Dallas FortWorth Metroplex and specializes in corporate relocation and residential resales, with added experience in luxury and ranch properties. “Because of my specialties, it’s very important that I’m familiar with more than just a few areas in the metroplex, so I cover a wide spectrum,” says Laura.

Over the course of her career, Laura has managed to drive roughly 75% of her business through repeat and referral clientele, and ranks in the Top 1% of agents in the DFW area. In describing her professional Copyright Featured Agent Magazine

“Real estate is my passion. Every day is different… Each client’s needs are different, and they’re all in a different place in their lives. It’s really rewarding to help keep their eyes on the ultimate goal and make it a fun and enjoyable experience in the process.”

style, Laura cites accessibility, transparency, and steadfast relationships as the foundational pillars of her approach. “I’ve been on the other side of the table — from empty nesting to large transitions — so I know what it feels like to be that buyer or seller.

I always keep that in mind when I’m working with a client,” she explains. “I put everything on the table up front, and I believe that research, information, and data are really critical when helping my clients make an informed decision. I consider my clients extended family, and even after the transaction is finished, I reach out, host client events, and let them know that I’m here to guide them, even when the process is complete.”

From high quality photography and live videos, to specialized landing pages and social media outreach campaigns, Laura ensures her approach is multifaceted and geared toward building a narrative.

“You have to tell a story,” Laura says.

In considering advice for aspiring agents and fellow professionals, Laura’s lesson is straightforward: make the leap. “Sometimes we’re fearful of going through that door. We stay in our comfort zones because that’s what we know,” she says. “Based on my experience, I’m a firm believer that you have to put yourself out there. You won’t know until you try.”

Communication is another core principle of Laura’s client philosophy. Fielding questions, taking calls, and remaining a resource long after the closing table has been reached are all central to her relationship with clients. “I have a high level of integrity, and honesty is key to what I do,” she says. “Sometimes I have to deliver news that’s less than rosy, but it’s my job to keep clients informed so they understand the facts and their options. That way, I can help them make a determination based on the reality of the situation.

Agents can’t be afraid to walk away from a bad deal. Clients come first.”

When marketing listings, Laura not only understands the value of diverse technology tools, but also the power of using them wisely. “It’s important to be consistent,” she says. “I believe in ongoing education, because you have to stay abreast of the market to bring more value to your clients.”

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Beyond the office, Laura gives to her community far and wide by backing causes close to her heart — from breast cancer awareness and research efforts through the Susan B. Komen Foundation, to organizations supporting those suffering from Alzheimer’s and heart disease.

She also donates a portion of every commission to a charitable cause of her clients’ choosing. In her free hours, she most enjoys time spent with family and loved ones, staying active through cycling, deep-sea

fishing, live music, travel, and spoiling her grandson and family dog.

As for the future, Laura has plans to continue growing her imprint steadily and organically, drawing upon her patently Midwestern can-do attitude.

Finally, with 28 years of esteemed service and no signs of slowing down, Laura MacDonald reflects on what she enjoys most about her career thus far.

“Real estate is my passion,” she says. “Every day is different. Each client’s needs are different, and they’re all in a different place in their lives. It’s really rewarding to help keep their eyes on the ultimate goal and make it a fun and enjoyable experience in the process.”

Laura MacDonald

RE/MAX DFW and Associates | Irving, TX 972.402.4133 | lauramacdonaldrealtor1@gmail.com www.lauramacdonaldrealtor.com 12

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Refresh your

real estate etiquette

There was a time when the rules of etiquette governed everyday interactions, and breaking those rules was ground for (mild) scandal. Fortunately, social norms have relaxed over the years, and most of us operate much less formally than in times past. But even in this informal age — and in some cases, because of it — it’s important to observe a set of guidelines and best practices when it comes to real estate etiquette. That’s because, at its heart, real estate is, and always will be, a people business. And as the famous Maya Angelou quote says: “… People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” With that in mind, here are some simple rules of real estate etiquette that can help ensure you always make your clients and colleagues feel good about working with you.

Behave Respectfully Toward Colleagues Real estate is a unique profession in that your competition is often also someone with whom you have to get along to reach a successful outcome for your client.

Cultivating a reputation as someone who is respectful to all the parties in a transaction — other agents, lenders, appraiser, stagers, inspectors and everyone else — will only serve you well. That means being on time for meetings (or calling if you’re going to be late), quickly responding to messages, being willing to resolve issues as they pop up and never speaking ill of someone behind their back. If you’ve heard someone else is difficult to work with, give them the benefit of the doubt. Go in with an open mind and you might find that the two of you hit it off and get along great. By demonstrating respect for your colleagues at every level, you’ll become someone other agents and real estate pros can’t wait to have the chance to work with again.

Offer Feedback on Listings — You take your clients to a home, they decide it’s not for them and then what? Do you just move on or do you let the seller know what your clients liked and didn’t like about it? Not offering feedback is a little like going on a first date and then never calling the person again — they’ll get over it, but they’ll always wonder what went wrong. Offering polite, constructive feedback is not only the right thing to do, it could lead to a deal.

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If your clients like the house with the exception of a few small things or one big deal breaker, you might be able to get the seller to make concessions and create a win/win outcome for everyone.

Mind Your Manners on Social Media — Love it or hate it, social media is here to stay. And it can be a landmine for your business if you’re not careful. A simple rule of thumb, never (ever) write something on social media you wouldn’t say to someone directly, and never post a photo you wouldn’t want your mom to see. Even if you have separate business and personal accounts set up, clients and colleagues are bound to cross from one to the other. And while technically not social media, be careful with texting, too. Never talk badly about a person or a business via text; it’s all too easy to accidentally send it to the wrong person. If you simply must get something off your chest, call a trusted friend — ideally someone not in the business — and talk about it instead.

Work Out Issues One-on-One — No matter who you work with or what size brokerage you’re in, at some point you’ll have a disagreement with a colleague.

When it happens, don’t be the person who immediately escalates the situation by involving your broker or cc’ing half the office on a snarky email chain. Work things out one-on-one, preferably face-to-face (too much can get lost in translation over email). It won’t always be easy, but when you gain the reputation for being someone who takes the high road, there’s a good chance those disagreements will hardly ever happen.

Leave the House Like You Find It — Whether or not the listing is occupied, it’s important to leave it in as good (or better) shape, than you find it. Turn off the lights (if it’s approaching dusk leave one light on), straighten anything that gets moved and be sure all doors and windows are closed and locked — that includes interior garage doors and any exterior gates or security doors. Additionally, if you notice anything out of place, say, a leaky faucet or a trail of ants on the kitchen floor, do your best to remedy the situation and be sure to contact the listing agent immediately to let them know what you saw.

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Keeping your cool — How to remain calm when things don’t go as planned

Change is inherent in the real estate industry, which means that learning to roll with changes as a real estate agent is an occupational hazard that simply can’t be avoided. Although the ever-changing and unpredictable nature of work as a professional REALTOR® is exciting, stimulating and incredibly rewarding, it can also be an incredibly stressful career.

There are dozens of variables at play in every transaction, whether you’re selling a distressed property, working with nervous first-time homebuyers, or even 14

working with seasoned investors. No matter how organized, how diligent, or how long you’ve been in the field, there are going to be days when things go a little haywire, and there’s nothing you can do to control it.

Fortunately, there are ways to control how you react to stressful situations. Indeed, there are tried-and-true tactics for keeping your cool, even when blindsided by an unexpected challenge in a purchase or sale.

Here are five tips that will help you to stay calm, when things don’t go as planned.

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way, making a phone call you don’t want to make isn’t hanging over your head for any longer than necessary. Addressing the situation as soon as possible will help you to feel less stressed.

Keep Away from the Caffeine — When stressful situations arise, steering clear of additional stimulants is a good idea. Caffeine can trigger additional adrenaline production which may give you a quick extra burst of energy, but will soon likely be followed by a “crash” period, where fatigue, if not outright exhaustion can set in. Reach for a glass of water, or a healthy juice in lieu of a caffeinated beverage when things feel chaotic.

Tap into the Power of Positivity — Catastrophizing when things go wrong only serves to induce additional stress. Try taking a few moments to identify the positive things happening in other transactions, in your life, or with a new promising client, to keep your chin up. Positive thinking during challenging times will do wonders in terms of keeping you focused on the next task at hand, rather than letting an obstacle or setback throw off your whole day.

Remember to Breathe — When you get word that an unforeseen delay, or other obstacle has arisen, the first thing to remember is that taking a few deep breaths will help to calm you down immediately. Try closing your eyes for a few minutes and put the problem on pause, to focus on breathing. This helps to calm your mind and can help slow down your body’s physical response to stress.

Seek a Solution — When a curveball is thrown your way, it’s helpful to look at the problem and identify whether there is anything you can do to correct it, or whether it’s out of your control. If there is a possible solution, determine your strategy, and take the next steps towards resolution. If there is nothing you can do about it, let your clients, or others involved know about the setback as soon as possible. That Copyright Featured Agent Magazine

Talk it Out — There is great benefit to discussing the challenge you’re facing with someone you trust.

Perhaps it is time to call your mentor, or your coach.

Maybe you need to just touch base with a confidante or close colleague. Not only will talking through the challenge likely feel like a weight off your shoulders, but there’s always the chance that whomever you call may have a solution you haven’t thought of. Either way, sharing your feelings with someone else can help take some of the sting out of a stressful experience.

As real estate agents, the personal satisfaction earned through helping others, succeeding in negotiations, or selling a home that clients are desperate to sell is limitless. Yet, all REALTORS® will have to work their way through stressful situations to get those rewards at some point in their career. It’s important to remember that staying calm, when times become stressful will only help you to better serve your clients, your referral partners, and your own well-being.

Learning to accept that obstacles will come up, and employing these best practices to stay as relaxed as possible when unexpected obstacles arise, will be an invaluable tool for the rest of your career.

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