November 2022 Midwest

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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 home buyers, 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 unequivo cally 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 govern ment’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 De velopment (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 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 al lowing 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 in surance 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 afford ability 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 finan cial 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.

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.

How to manage client stress

Real estate professionals are responsible for guiding clients through some of the most signif icant transactions of their lives. And because these transactions involve making huge life changes, coupled with major financial decisions, they’re going to be inherently stressful. But that doesn’t mean they have to be unpleasant. Learning how to manage clients’ stress (along with your own) can help make every aspect of the deal go more smoothly for everyone involved Try some of these client stress management tips:

Stay in the Moment

Clients will cause themselves lots of stress and sleepless nights envisioning all the ‘what if?’ scenarios that could possibly derail the deal. Encourage your buyers and sellers to stay in the moment and make decisions based upon facts you know to be true, not things that may or may not happen.

Focus on the Positive Buyers and sellers can get caught up in the negative aspects of a deal and talk themselves out of it entirely. Try to keep clients focused on the positive aspects of the deal and work through challenges one at a time, as they come up, rather than waiting and then trying to tackle them all at once.

Keep Your Ducks in a Row Clients will follow your lead, so be sure you’re setting the tone for a relaxed and productive partnership from the start Stay organized and informed so you can address concerns quickly and never leave a question unanswered. Not keeping clients informed is one of the quickest ways to undermine trust and create unnecessary stress.

Customize Communication

Each client comes with a different set of needs and expectations re garding communication Some will get stressed out if they don’t hear from you every day even if there’s nothing significant going on Others will prefer to hear from you only when there’s noteworthy news to report Learn each client’s preferred style and communicate accordingly, whether that’s through text messages, email, or good old-fashioned phone calls.

Take Five When you sense a client’s stress level rising, take a quick break to breathe and regroup; talk about something else for a few minutes You can also suggest going on a short walk, or stopping to have a quick bite. In fact, steady blood sugar and proper hydration will go a long way toward reducing everyone’s stress level. If you’re heading out for a full day seeing properties, put a small cooler with bottles of water and healthy snacks in your car so everyone (including you) can refresh when needed.

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When you think about careers that revolve around help ing others, being a nurse, doctor or social worker are usually what come to mind But assisting people during a major life decision is an important job too, just as REALTOR® Noel Dedrick, of Star Properties, Inc., dis covered after a 13 year career in healthcare Although she loved what she accomplished in that field, Noel ultimately decided to pursue a career as a real estate agent. As a young child, she dreamed of becoming an agent for the beautiful homes she saw in the Sunday paper.

So, in the early 2000s, after Noel and her husband wel comed their first child, the opportunity presented itself to make that dream come true. She jumped at the chance and has never looked back Seventeen years, countless transactions throughout Southeast Wisconsin, and a plethora of satisfied clients later, Noel still upholds

the highest standards for herself when it comes to her work “Honesty, high morals and integrity are very meaningful to me I feel like that flows smoothly and seamlessly when you hold true to the person you are. I love giving 110% in everything I do,” Noel shares. “Growing up, I faced many trying moments, and those experiences helped mold me into the person I am today.”

During transactions, her keen attention to detail dotted with a splash of humor are what keep her business thriving. “I believe that treating each and every client as if they are family is what keeps clients coming back,” she explains. “And they feel comfortable sending their family and friends to me because they know they’ll be in good hands ”

This approach has resulted in an impressive 90% referral

base, a true testament to Noel’s strong work ethic. “I am always out there pounding the pavement and keeping new streams of business flowing in as well,” says Noel “I am committed to exceeding expectations and sin cerely believe that the passion and dedication I bring to the table sets my clients up for confidence and a smooth transaction. My knowledge and trustworthiness make people feel comfortable. I am always here to earn and keep their business for today, tomorrow and forever ”

Having met her goal of attaining her broker ’s license in 2012, along with being named the Top Agent in Wash ington County every year since 2015, Noel graciously shares advice and words of wisdom to anyone consid ering a career in real estate. “I encourage everyone to follow their dreams Many times it feels impossible or that the odds are against you,” she says. “Just know that you will face many detours and obstacles along the way and there will be moments when you want to give up

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I AM CO M M I T T E D T O E X C E E D I N G E X P E C TAT I O N S A N D S I N C E R E LY B E L I E V E THAT THE PASSION AND DEDICAT ION I BRING TO THE TABLE SE TS MY CLIEN TS U P FOR CONFIDENCE AND A SMOOT H T R ANSACT ION. MY KNOW LEDGE AND T RUS T WORT HINESS MAKE PE OPLE FEEL COMFORTABLE. I AM ALWAYS HERE TO EARN AND KEEP THEIR B USINESS FOR TODAY, TOMORROW AND FORE V ER.”

you approach each triumph, you will learn from those obstacles. Take away the good, set aside the bad and keep moving forward ” Noel truly enjoys her dream job, and it shows in everything she does, whether she’s working with buyers or sellers. “What’s not to enjoy? This is such a humbling profession I get to help my clients find and buy the home they love. I stress the point that it is important to love the home you are buying. And when it is time to sell, I can assure my

clients that the transaction will be smooth and seamless.”

When she’s not busy working with clients, Noel treasures the time she spends with her husband, two children and their dogs. Traveling whenever possible is also a must for her family, as it gives them time out of their busy lives to recharge.

Looking back on all she has accom plished, Noel reflects on the advice she was given early on in her career: “The most memorable piece of advice I ever received is that everything you put your mind to is possible Make a plan, be re alistic and work hard. Do not let anyone discourage you from following your dreams ” Noel has certainly followed this advice and her dream is finally com ing true with the opening her very own brokerage, Dedrick Homes, serving southeast Wisconsin

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HONES T Y, HIGH MOR ALS AND IN TEGRI T Y ARE V ERY MEANINGF U L TO ME I FEEL LIKE THAT FLOWS SMOOTHLY AND SEAMLESSLY W HEN YOU HOLD T RUE TO THE PERSON YOU ARE I LOV E GIVING 110% IN E V ERY THING I DO.

Top 10 Reasons to be thankful you’re a

Every day is different Whether you’ve been in real estate five days or 15 years, you’ve never had two days that were exactly the same. And you love it that way!

You are your own boss While you may have a managing broker or team leader, for the most part, you get to plan your days and work at your own pace.

You have a flexible schedule Sure, you’re going to work nights and weekends sometimes, but you have the chance to mold your schedule around important events in your life.

There are always learning opportunities Becoming licensed is just the beginning Growing as an agent means there’s always something new and exciting to learn about.

You are in charge of your own destiny

When it comes to how much you can earn, the sky’s the limit. Very few careers offer so much potential to create the life you want.

You can work from anywhere With so many ways to work remotely, you can take your work with you and be productive from almost any location.

You get to see beautiful homes

There’s nothing quite like walking into a beautiful home and seeing it for the first time. REALTORS® get to have that experience a few times a week.

You’re an in-demand guest for career day Many people are curious about how REALTORS® spend their days. You have the chance to spread the word about this amazing career.

You get to meet incredible people As a REALTOR® you have the chance to meet and become friends with tons of interesting new people. And you get to help make their dreams come true Of course, the best reason to be thankful for being in real estate is getting the chance to help wonderful people buy or sell a home and change their lives.

7 Essential winter home prep projects

With winter on the horizon, now is the time to prepare your home for this unpredictable season. Properly preparing your home for winter will help keep you and your family comfortable, reduce heating costs and prevent structural issues that could result in costly repairs later. Most winter home prep can be completed as DIY projects. And even the ones that require professional assistance are a small investment now that can help you potentially save thousands later Let’s get started:

Start at the top Your home’s roof is the first line of defense against leaks and water damage. Inspect it for any loose, worn or missing shingles and have them replaced. Also look for any breaks in the flash ing seals around vent stacks and chimneys If your home has a flat roof (often found in warmer climates), use a leaf blower throughout the season to clear off leaves and other debris; this will help you detect any damaged areas.

Clear out gutters Gutters are another way to protect your home from water damage, but they only work properly when they’re clean. To prevent water from backing up and causing leaks, clean out all the fall leaves and other debris that has accumulated over the past few months. This not only protects against water damage, it will also keep pests and rodents from making themselves at home in the mess. If you find any missing or damaged gutters or fascia boards, have them replaced

Send water away Gutters are only one part of the equation when trying to minimize the chance of water getting where it doesn’t belong. You’ll also want to make sure the water they collect gets diverted far enough away from the home’s foundation To do that, add extensions to your downspouts. Ideally, you want the water to flow at least three feet away from the foundation to prevent the possibility of leaks and damage.

Inspect the system Have your furnace or heat pump inspected and repaired, if needed, by a professional, who will catch any current or potential issues before they leave you out in the cold. In addition to keeping you warm, a properly running heating system minimizes the risk of carbon monoxide issues and helps reduce heating costs. As the season progresses, remember to change the furnace filter monthly to ensure maximum efficiency.

Insulate hot water heater and pipes What’s not to love about a simple project that can save money and keep you more comfortable? Wrapping your hot water heater and pipes can help reduce utility costs while maintaining a comfortable water temper ature for bathing You can hire a plumber to do the job, or take it on yourself with specially cut insulation or foam available from home improvement centers.

Catch the cracks Winter is all about keeping

Winter Prep Quick Tips

• Have the heating system inspected and repaired before the first cold snap

• Inspect and repair roof, gutters and downspouts to prevent water damage

• Reverse ceiling fan blades to circulate warm air

• Find and fill any cracks around windows and doors

• Have the chimney cleaned before burning a fire

cold air and moisture and in warmer climates, pests out of your home, which is why you need to find and fix any cracks around doors and windows Inspect around window and door frames outside and if you find any gaps larger than the width of a nickel, fill them in with weather-resistant silicone caulk. Inspect all door sweeps and weather stripping and replace any that appear worn or cracked.

Sweep that chimney

A crackling fire is a cozy way to help heat your home, but before you burn the first logs of the season, you need to make sure you can do it safely. Call a chimney sweep to inspect the chimney and clean it if needed The inspection and cleaning together should ring in at less than $500, but any amount is a small price to pay if it prevents a chimney fire and the possibility of carbon monoxide leaking into your home.

No matter the climate you live in, the winter season can be hard on your home. Taking these precautions at the start of the season will help ensure your home makes it through winter without any serious issues and you stay comfortable and cozy until spring arrives.

Make your mark 5 Ways to stand out

If it seems like everyone you meet knows someone who is “in real estate,” there’s a good reason for that There are approximately 2 5 million licensed real estate agents in the United States. But, only about 20 percent of those agents are responsible for more than 80 percent of closings. Still, with such a crowded field, it can be challenging to stand out and rise above the masses. Here are several things you can do to connect with clients and potential clients and become one of the go-to real estate professionals in your community.

Become a Local Expert

A lot of agents will say they know their communities, but how many ac tually do? Take a deep dive and learn about everything your clients will want to know: schools, employers, hospitals and health care providers, places to worship, where to shop and what to eat. Go outside your com fort zone and daily routine and think about what others with a different lifestyle will want to know Find the best vegan restaurant, discover where someone can get the perfect cup of coffee on their morning commute, and learn which park has the best playground. If you’re a Millennial, investigate recreational opportunities for retirees If you’re a baby boomer with an empty nest, get back in touch with the school system so you can share that information with clients who have young children. Creating deep connections in the community not only means you have more knowledge to offer your clients, it helps you develop your pipeline of referral partners

purchasing Twitter ads to increase your reach; it’s a small investment that can pay off big

Stay True to Your Brand

Now more than ever, consumers are bombarded with a steady stream of marketing messages at every turn. That’s why it’s so important to maintain a consistent look and feel for your messaging across all channels You want to reach the point where prospective clients recognize that something is coming from you, even before they look for your name. Using a consistent color scheme, font, message tone, and style of photography across all dig ital and print media helps to establish and reinforce your brand identity

Make Social Media Matter

At this point, it’s no longer a question of if real estate professionals should use social medial. If you’re not, you are missing out on opportunities to connect with clients and pros pects in a meaningful way The most important thing with social media is to think before you post, and ask yourself if it’s something your clients need or want to see. Make an effort to offer social media content that is simultaneously useful, relevant, and enjoyable. Post updates on market conditions, your latest listings, links to your blog and content you find informative, and in spiring, motivational quotes. Remember, consistency is key. Only posting a few times a month if you happen to remember makes it seem like an afterthought. For extra impact try “boosting” Facebook posts or

There’s Always More to Learn You know those REALTORS® who have the alphabet soup of designations after their name? They’re on to some thing Achieving specialty designations shows clients you are serious about real estate and in it for the long haul. Plus, knowledge is power. Staying educated on what’s happening in the constantly evolving world of real estate will give you an advantage over agents who haven’t cracked a book since they first studied for their license

Consider Coaching

While it’s not the right fit for everyone, enlisting the services of a real estate coach can be the push many agents need to rise above and reach the next level Having an objective outsider look at your business can help move you past your comfort zone and see opportunities for growth you might be missing. Plus, having someone who is on your side and invested in your success feels inspiring.

Real estate is such a crowded field. It can be challenging to stand out and rise above the masses.

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The path that brought Chris Case to her career in real estate may have been unusual, but perhaps that’s what makes her such an unusually good agent Chris worked for years in televi sion and working in production with VIPs in conference centers and convention centers Over time, Chris felt she was ready for something new. Acquain tances suggested that her gift for defusing conflicts and handling high stress situations with easy grace would make her a superb real estate agent. They were absolutely right.

Chris started her real estate career in 2020, just days before the shutdown. “Everything happened so quickly, and it was very strange,” she recalls. At first, Chris was only able to find learning opportunities online, though she eventually found a coaching course that met in person once a week. Despite a tumultuous beginning, Chris sold eight homes in her first six months. “I’ve always been a go getter and I really enjoy working with people, so it just seemed to click ” In fact, since 2020 Chris has received three awards from Keller Williams: The Rising Star Award, the Pinnacle of Performance Award, and the Quantum Leap Award

One key to Chris’s success is her flexibility “I think what’s helped me so much is that I’m willing to work with all levels of clients and I will travel to wherever I’m needed,” she explains. Chris has worked throughout Cleveland with every type of property, with price points ranging from $25,000 to over $1,075,000. Each client and transaction, big or small, gets her very best effort.

Another thing that makes Chris stand out is her superior customer service skills. Coming from the production industry, Chris knows all about making every experi ence a positive one. “I’ve had a lot of clients come to

Chris Case

me after not having a great experience with a previous agent,” she shares. Chris empathizes with everyone she meets “When I work with my clients, I feel like we’re a team and we’re going to make this happen together There’s a lot of emotion and stress involved for many people and they handle it differently, so I try to be that calm peace for them ”

Clients know they can count on Chris, which is one of the reasons 70% of her business comes from return and referral clients. She provides her clients with support, clarity, and reliability and they know what’s happening every step of the way.

Chris knows the importance of a strong social media presence, and she’s happy to have been able to use hers for good. She enjoys posting “Fabulous Finds” where she shares interesting local businesses. Recently, she noticed a small field near a client’s home and learned that the space was actually a rescue that rehabilitates retired horses and turns them into therapy animals. She created a video about the rescue which was viewed over 600 times. Chris loves helping others by sharing what she learns.

Kindness and empathy is a big part of Chris’s personal life, as well as her career She is a part of the KW Cares Committee, a group which provides aid to agents in crisis and will also contribute to humanitarian efforts during natural disasters and other traumatic situations Chris has also started a program called Socks in a Box, which places collection sites to gather socks for the Northeast Ohio Coalition for the Homeless. In the two years since Chris began the program, they have already collected and donated nearly 1,000 pairs.

As Chris’s client base continues to expand, she expects to be starting a team within the next year so she can make even more of a difference. Although her success keeps her very busy, when she does find the time, Chris loves to go to sporting events, walk her dogs in the park, and enjoy an occasional cruise