Realtor Robin Jones' Blog

Whether you’re buying or selling a home, you need a great Realtor. Ask these questions before you commit.

1. May I see your resume?
Look for advanced training, designations, professional recognition, and membership in professional organizations.

2. What’s your commission?
Commissions vary because some agents are worth more than others. Find out exactly what you’re getting for your money.

3. What makes you special?
You want to know specifically what sets your Realtor apart from others. Ask for testimonials or references.

4. How often will I hear from you?
You really need to click with each other here. You want someone who will communicate as often as you want and in the way that’s most convenient for you.

5. What’s your plan for marketing my home?
No agent can guarantee a sale, so find out their process. Make sure you get specifics…a 1-page action plan with details and target dates. Incorporate that into the sales contract.

6. How many transactions did you complete last year?
Since property values vary, you need to know how many deals were closed. Too few (less than 25 or 30) and they’re not a pro, too many (over 70) and you sacrifice personal attention.

7. What do you know about where I want to live?
Find out how many of the homes your Realtor sold last year were located where you want to buy. You want a Realtor who specializes in the community where you want to live.

Remember, when you choose your Realtor, look for training, experience, a proven track record, and above all, chemistry.

The final installment on preparing to buy a home is about what to do in the home stretch. I hope you’ve been following along for the last week.

2 months out:

Shop around for mortgages. Get a new set of FICO credit scores and start talking to lenders. Narrow it down to just a few before applying. When you allow lenders to check your credit, a “hard inquiry” goes on your credit report. However, FICO groups all mortgage-related inquiries in a 30-45 day period so they appear as a single inquiry.

Get pre-approved. A pre-approval letter requires a hard inquiry on your credit, but shows you’re a serious buyer.

Choose a Realtor. Your Realtor will help you with everything from finding your home to making an offer to referring lenders, inspectors, etc.

After your offer is accepted: Secure your mortgage. Act quickly – the full approval process typically takes four to six weeks. You should already have a lender lined up at this point anyway.

Schedule an appraisal, a home inspection, and a walk-through. You need the appraisal for loan approval. An inspection isn’t required, but can uncover serious problems before the deal closes. The walk-through is done about 24 hours before closing to confirm that the seller has made agreed-upon repairs and your home is move-in ready.

Get homeowners insurance. You’ll need to prove you have it at closing.

Confirm how much money you’ll need at closing. This can include down payment, legal fees, document preparation costs, property taxes, and title insurance. Make sure you have everything covered. This is not the time for surprises.

Buying a home doesn’t have to be stressful when you know what to do and when to do it.

Last time I talked about what to do 1 year out when preparing to buy a home. Today let’s focus on what to do in the three to six months before you buy.

6 months:

Understand all your mortgage options. Don’t find yourself in foreclosure because you didn’t know what you were getting into. Each type of mortgage comes with its own advantages and risks and you need to pick the one that fits your needs and lifestyle.

Figure out what you can afford. Once you know what kind of mortgage you’ll have and how much down payment you can come up with, you can determine what you can afford. Set a budget range and try to stay below the high end if possible.

Figure out the extras. Here’s a short list: taxes, insurance, utilities, upgrades, repairs, redecorating, new appliances, etc., etc. Your Realtor can help you with what to expect.

Increase your savings. Whether you want to increase your down payment or have money set aside for all those unexpected expenses that come with home ownership, this is crunch time and padding your savings is critical.

3 months:

Use credit sparingly. The FICO scoring system that most mortgage companies look at not only tracks your payment histories, but also how much of your available balances you’re using on credit cards and revolving lines of credit. Try to keep balances below 30%.

Don’t open or close any accounts. I know I said this in the last post, but it still applies.

Next time, what to do in the home stretch. Check back soon!

As promised, my next few posts will be about how to prepare to buy a home. Today we’re starting with what you’ll need to do one year out to start getting ready. No surprises…it’s all about credit.

1. Review your credit report. You can get free copies of your report from Equifax, Experian and TransUnion at AnnualCreditReport.com. It’s important to get all three because some may show different things than others. Look carefully for errors. It’s up to you to make sure they’re removed. They affect your interest rate and your ability to get a home loan.

2. Check your credit score. Your credit score affects the rates and terms of your loan. Most mortgage lenders use FICO credit scores. Get yours at My FICO. Improve your credit score by paying all bills on time and paying down credit cards and revolving debt. Don’t open or close any new accounts once you decide to buy a home.

3. Reduce debt. Get rid high balance credit cards, store charge cards, payday loans. Not only will these make it harder for you to get a home loan, they should also be a wake up call to get your spending under control.

4. Save! Change your spending habits. Cut out luxuries you don’t need. Even a change jar can add up to hundreds of dollars in no time.

5. Switch to automatic bill pay on all your bills that offer that option. Late payments drastically drop your credit score so take advantage of automatic bill pay wherever you can.

Check back soon for what to do at six months out.

It’s that time of year…the time when we reflect on how far we’ve come this year and where we want to go next year. If one of your plans for 2011 is to buy a home, here are some resolutions for you to make it happen.

1. Evaluate why you want to buy. Is home ownership one of your goals? Are your finances in order? Are you at a place in your life where it makes sense? Are you ready to settle down? Make sure you’re buying for the right reasons for you and your family.

2. Separate your wants from your needs. To find the home that will be the best for you, you have to prioritize so you know where you can compromise. Do you really need a fireplace and a kitchen center island? Probably not. But you probably do need 3 bedrooms.

3. Pay attention to the area you want to buy in. Be aware of prices and what you can get for the money. Understand your market.

4. Learn about different kind of mortgages and determine which one fits your financial situation best.

5. Evaluate your finances and determine the budget you can allocate for your monthly mortgage payment. Don’t forget to figure in taxes and insurance. You may get approved for a higher amount, but if you know what you can comfortably afford, you won’t be tempted to get in over your head.

6. Get your credit score and, if it’s below 650, get to work on raising it. 750 is better. The higher you can get your score, the better your chance of approval and a lower interest rate. Have errors removed from your reports. Pay down debt. Save money.

7. Get pre-approved for a loan. There is a difference between pre-qualified and pre-approved. Make sure you are pre-approved.

If you haven’t already started doing these things, get started now. Don’t wait. Buying a home requires a lot of advance work and planning, but I promise you, it’s all worth it! Keep checking back throughout January for more posts about what to do at each stage of the process.

Click here for my holiday message to you, plus one of my favorite recipes to make for holiday brunch.

No factor is more important than price when it comes to selling your home. Pricing your home right is part art and part science.

Trust your Realtor to help you come up with not just a price, but a pricing strategy. You are too close to the situation and are not likely to be as objective as you need to be.

Your pricing strategy will be based on your needs and priorities as well as the reality of the market. You will need to decide your initial asking price and how long you will stick with that before reducing it if your home doesn’t sell. You will need to decide how low you can and will go on the price and what other factors you’re willing to negotiate.

Price too high and people will write your home off without a second look. Price it too low and buyers will assume there is something wrong with it.

Once you determine your pricing stance, your Realtor will then review comparable listings and sales which should include active listings, withdrawn and expired listings and pending home sales. Factors may include how long the average home stays on the market, cost per square foot, and bonus features or contract contingencies.

Selling your home is very personal so trust your Realtor, get involved in the strategy and, most importantly, be flexible.

Most people don’t choose to move in the winter time, but sometimes it’s not up to you. However, there is a silver lining to the dreaded winter house hunt. You get to see how homes handle the winter weather. Any home can shine when it’s warm and sunny, but winter is a home’s true test.

Here are some things to look for:

1. Are there any drafty areas in the house?

2. Does the water run quickly and quietly from each faucet or does it rattle and take a little time to start flowing?

3. Is the hot water hot?

4. Are outdoor stairs and railings sturdy or do they buckle under the weight of snow and ice?

5. Is there any dampness in the basement.

6. Are all rooms sufficiently warm when the heat is on?

7. Do all doors and windows shut tight

If you pay attention to all the potential winter pitfalls, buying a house this time of year could really be a blessing.

If you haven’t already got up your holiday decorations, you’re definitely thinking about it by now. But what if your home is on the market right noe?

Most real estate experts will tell you that, to sell your home, you need to remove your personal touch. It should be a blank canvas that potential buyers can imagine themselves stepping into. But during the holidays, all that turns around. Most people get that warm fuzzy feeling this time of year and what better place to make them feel that way than when you’re trying to sell them your home.

This is not to say that you should put up every construction paper garland and clothespin toy soldier that the kids have brought home since preschool. But people do appreciate a festive atmosphere. It can make them feel right at home which is exactly what you want, right?

Stick to the basic principles of decorating. Choose a color and style theme and carry it from room to room. You don’t have to go out and buy all new holiday decor. Just pick and choose wisely from your collection and maybe add a few new pieces. This time of year, there are plenty of options – traditional red and green with Santa; blue and silver with snowflakes; colorful lights and a tree in each room. You’re bound to find way to give your home the holiday feeling that your family has grown to love over the years while creating an inviting warmth for potential buyers.

The Winter Update newsletter is online now with all your winter tips, plus the featured home. In this issue:

Hot Topic for Sellers: Winter Decor – Yes or No?
Hot Topic for Buyers: Is That Home Winter-Ready?
The Showing Your Home Tip is all about the power of scent.

Check it all out right here.