Tag Archives: buyer's market

Buying, Uncategorized

VA & FHA Assumable Loans

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With interest rates higher than they used to be in the early 2020’s buyers are wondering if they can assume a loan with a lower interest rate…is it a good idea? Well as with most things…it depends!

“Lead me, Follow me, or Get out of my way”

General George S. Patton

Veterans Your Loan is Valuable – Check out my Podcast on VA & FHA Assumptions

Just a reminder you need to qualify for an assumption just like as if you were getting the loan yourself for the first time. All the VA Rules and FHA Rules for lending still apply.

What Makes a Good Assumable Loan?

  • If the difference between what is left on the loan and the Fair Market Value of the loan is equal to or less than what someone would want to pay as their down payment that is a great assumable loan.
  • But, let’s not forget the obvious-the Interest rate is less than the current going Interest rate.
  • There is are instances where you do not have to be a Veteran to assume a VA loan (IF THE VETERAN RELEASES THEIR ENTITLEMENT TO YOU FOR THE LENGTH OF THE LOAN) But still do not forget about the first two items since these are still the most important.

What Makes a Bad Assumable Loan?

  • The opposite of above – the remaining loan balance is low compared to the Fair Market Value of the home. Thus, the Buyer will need to pay a substantial amount in cash in order to assume the remaining balance on the loan.
  • Combine the above situation with a minimal difference in the Current Interest Rate and the current Assumable Loan and you do not have an ideal situation.

What to look for when trying to find one?

  • A listing with an FHA or VA Loan purchased around 2021 and the first half of 2022, possibly the last half of 2020. The reason being is that the interest rate is lower and the loan payoff is probably minimal.
  • See if the Listing Agent has already contacted the lender to see if they have a process for doing Assumptions?
  • The Listing Agent should have contact information and have discussed the potential for an Assumption with the contact person.
  • Knowledge is key, if the person in charge of the assumption has done this before, or better yet they are in a department that is all they do, your escrow may go much smoother than one who says, what?
  • Find out how fast is the fastest that the lender doing the assumption has ever done one? This will give you an idea on how long it could take you to get through yours.

A Buyer’s Agent will want to get updates often through the process either from their own Buyer or from the Lender. Every day counts when you are trying to close escrow and make everyone happy!

VIDEO ON VA AND FHA LOAN ASSUMPTIONS

Sell, Uncategorized

SELLER INSPECTIONS

We think that only Buyers need to get an Inspection on a home, but in reality when the Seller gets an inspection it can save them money on costly last minute repairs and even can increase the value before you list! Don’t forget to disclose what you found and how you fixed it!! Remember either you will find it or the Buyer will…

“Measure twice, cut once”

– adapted from John Florio 1591 book Second Frutes

Check out my Podcast by Clicking on the Image Above! Seller’s Get Your Inspections!

When a Seller has an inspection BEFORE they list, they have the opportunity to have things fixed on their own time table and thus costing less money for having urgent work done on the home to accommodate a Buyer Closing schedule. Here are just a few items that will come up when a Buyer has their inspection. Get ahead of the situation!

Most Common Inspection Items

  • Electrical – GFCI missing or not working, electrical outlets not working or not installed properly, exposed wires, circuit breaker mismatch, panel not labeled
  • Plumbing – Anti siphon missing from hose bib, leaky faucets, angle stops corroded or unable to move,
  • Sewer or Septic – Obstruction from the street to the home, belly in the line, deterioration of the line or tank
  • Floors – Gaps, mismatch tripping hazards, broken tiles
  • Termites – You really want to know this before you list!
  • Dishwasher – No high loop, not working properly, too noisy
  • Pool and/or Spa Equipment – Not working properly, less than 2-3 years useful life, not current to code
  • Water Heater – Leaking, no pan, less than 2-3 years useful life
  • HVAC – Not properly maintained, less than 2-3 years useful life, previous patch work done to keep it going, old R22 Freon
  • Windows – Broken seal, cracked windows, doesn’t open/close/lock
  • Roof – Debris, cracked tiles, roof less than 2-3 years useful life
  • Vegetation – Too close to the house or touching the roof (some loan products will call this out during the appraisal)
  • Handyman – Toilet seat not bolted properly, cracks in plaster or wood, door handles, locks, missing keys, tile cracks, doors not able to open close properly, missing or old smoke detectors and carbon monoxide detectors when there is gas in the home, anti tip device on the stove/oven missing, lack of proper attic insulation

So these are just a few of the things that a prospective Buyer’s Agent is going to be looking for. Why wait until you have already decided on a price for the home and then the Buyer wants you to come down on price or hurry up and fix everything in the next 2 weeks!

SELLER INSPECTIONS

Buying, Uncategorized

New and Improved Buyer’s Agent Rules February 2025

As a Buyer’s Agent we have new rules and now we have revised Rules!! Here is the basics of what we now need to do and how this affects you, the Buyer!!

I can’t predict the future, I have to wait for it like everybody else.

– Niels Bohr

Check out my Podcast by Clicking on the Image Above! How all the new rules affect Buyers!

The Basics of the Old Rules, New Rules and Revised Rules!! (as of today in Arizona)

  • Prior to August 2024 Sellers could provide an amount that they felt comfortable providing to a Buyer’s Agent prior to seeing the property on the MLS (Multiple Listing Service)
  • Prior to August 2024 Buyer’s Agents could show a property without a Buyer Broker Agreement (it was allowed, but optional, depending on Brokerage
  • After around August 1, 2024 (varied by location) Buyer Broker Agreements became a necessity for which we needed to have signed by the Buyer’s Prior to seeing a property and then submitted to our Broker for Review. We needed to communicate in writing our fees and have all parties to the Buyer Broker Agreement agree to them in writing prior to seeing properties.
  • Between August 1, 2024 and January 31, 2025 Sellers were able to authorize their Agents to fill out a form called a CABB to provide to the Buyer’s Agent stating the amount they felt comfortable providing to the Buyer’s Agent should they get under contract. (this seemed to cause confusion-so it was stopped)
  • After August 1, 2024 (varied by location) a form called the SCA – Seller Compensation Agreement was used to have the Buyer request from the Seller an amount or percentage to pay their Buyer’s Agent. Prior to January 31, 2025 this could be used in addition to the CABB, which is what caused confusion. Now if the Buyer is requesting the Seller make a contribution toward commissions to their Buyer’s Agent, the SCA form is how it is done.

There are a lot of other rules regarding the new practice so please do not hesitate to call me 480-809-5853 or contact your local Realtor® and get the latest scoop on what the process is!

Time to Get Shopping for Your Next Home

Buying, Uncategorized

BEYOND THE DOOR | BUYER’S AGENTS

The Value of a Great Buyer’s Agent goes beyond the time and money you save, it also includes peace of mind that all the boxes are being checked by a professional that deals with the boxes on a daily basis.

“Time is more valuable than money. You can get more money, but you cannot get more time.”

– Jim Rohn

THE VALUE OF A GREAT BUYER’S AGENTS

Check out my Podcast on Behind the Door (Buyer’s Agents)

What to look for in a Buyer’s Agent!

  • Not just years experience, but volume as a Buyer’s Agent | Some agents pride themselves as a listing agent (ratio should be no less than 40% Buyer’s Agent Experience)
  • Relatable Buyer Stories | Can they give you stories about past buyer transactions that show you they know their stuff?
  • Systems | A Great Buyer’s Agent has done this so many times they have a process (checklist) of what needs to be done and when!
  • Able to answer your questions | Are they open to answering all your questions and even “what would you do” based on your own history with buyer’s agents?
  • Can they express what their value is to you as your Buyer’s Agent? | If their value is all generic that could apply to any Buyer, then they don’t know you and your needs!

Post NAR Settlement

So we are still getting used to the ramifications of the lawsuits and the proposed NAR Settlement and awaiting for a definitive answer on everything we are being told, as to all the changes. There is one thing that seems to be more than probable as remaining and that is Buyer Broker Agreements–The Agreement between the Buyer’s Agent and the Buyer(s). This agreement is a very important document and if you are thinking of buying a home in the near future, I recommend asking to see this document well prior to wanting to see homes. While you are at it, ask to see all the documents you are going to be requested to sign either by the Brokerage you are thinking of using and by the State Real Estate Board you are in.

In the end a Great Buyer’s Agent is worth every dime and then some…like peace of mind that all the boxes are checked…

HAPPY HOME BUYING

Here is my YouTube Video Beyond the Door (Buyer’s Agent)
Buying, Uncategorized

HOW TO FIND THE BEST REAL ESTATE AGENT FOR YOU IN A NEW CITY

The best Real Estate Agent may not be the one with the most reviews!

Good fortune is what happens when opportunity meets planning.”

Thomas Edison
Check Out my Podcast on How to Find the Best Real Estate Agent for you in a New City!!

Some Questions to Think About Before You Call A Real Estate Agent!

  • What price point do I want to be in?
  • Do I want community living or single family home?
  • Do I want or not want a pool and/or spa?
  • Do I want it to be super walkable?
  • How close to Restaurants and Shopping?
  • How close to friends, family and/or work?
  • HOA or no HOA

You want to figure out what your ideal home would be like! You may not get 100% of what you are looking for, but you have a better chance of finding it if you are more specific than a 3 Bedroom/2 Bath in the City. You want to be able to articulate the most ideal scenario. When it comes to price point you want to be in a range and when looking exceed the range a little in case you are able to negotiate a lower price.

Some Questions to Write Out Before Interviewing Real Estate Agent!

  • What is the temperament I would prefer in an agent?
  • Are they available to block out a day or two at a time to show when you are in town?
  • Will they do FaceTime previews with you while you are out of town?
  • Have they had out of town Buyers before?
  • What did they find to be the most challenging?
  • Do they feel the Buyers enjoyed the experience?
  • What will be the driving arrangements when you are in town?

Working with out of town Buyer’s takes some organization! The schedule needs to encompass timing limitations and possible new home build hours, possible traffic, breaks in between to eat and drink, etc. it takes a lot of flexibility as well. So you want an agent that seems like they are up to the task and hopefully have done it successfully before.

Here are some ideas on how to find the right Real Estate Agent for you when you are moving to a new city!
Buying, Uncategorized

Are Higher Interest Rates Good For Buyers?

It may seem paradoxical but it may be true!

“Buy land, they’re not making it anymore”

Mark Twain
See how higher interest rates allow some buyers to buy that otherwise would not be able to when interest was low! Check out my PODCAST!

Some little known positives about higher interest rates!

  • Buyer’s have less competition to buy a home
  • Seller’s more likely to accept a contingency
  • Seller’s less likely to ask for an Appraisal Guarantee
  • Seller’s more likely to pay Closing Costs
  • Seller’s less likely to ask for Post Possession
  • Buyer’s have more homes to choose from

When Interest rates are low, everyone is buying, including cash buyer’s…why? Because they aren’t earning money keeping it in the bank, and the real estate prices are historically going up in a low interest rate market, so it’s a win-win for cash buyers to buy. This trend reverses itself when real estate prices go down substantially, and then those investor’s with cash start buying again when the sentiment is that the real estate market has hit a bottom. Investor’s tend to stay out when the market is stable and interest is high.

What it was really like when interest rates were low…

  • Seller’s receiving multiple offers on the first day!
  • Seller’s only taking offers for 24-48 hours and only if you saw the property!
  • Seller’s asking to stay in the property after closing for free for up to 6 months!
  • Buyer’s offering sometimes 25% or more over list price and then guaranteeing the Appraisal Gap before even knowing what it would appraise for…
  • Seller’s laughing at a contingency offer and then tossing it in the trash
  • Seller’s dictating everything from title company, buyer paying all closing costs (including those normally paid by seller’s), and when closing would be, denying homewarranties…
  • SELLER’S ARE IN CHARGE WHEN INTEREST RATES ARE LOW!

Here are some ideas on getting the Seller to help reduce your interest rate!!

Buying, Uncategorized

Condo Life

Why Condo Life is Fun! (and when)

“The secret to success is getting what you want. [The secret to] happiness is wanting what you get.”

Dale Carnegie
Scottsdale Arizona Camelview Optima

Check out my Podcast on “Condo Living”

The Pros of living in a Condo!

  1. Socialization with neighbors
  2. Possible walkability to restaurants
  3. Not responsible for things like landscaping, pool maintenance, outside storm issues

    The Cons of living in a Condo!

    1. Pesky neighbors
    2. No private yard
    3. HOA Fees that may increase or have assessments due to underfunding or under accounted for expenses

    What makes an awesome Condo!

    1. Concrete or sound proofing walls, floors, and ceilings
    2. Lot’s of areas for gatherings, BBQ Grills, Outdoor Patio’s, Pool & Spa, Indoor Clubhouse, walking paths, dog runs, and rooftop entertaining. (Think options!)
    3. An HOA that is financially sound and well run and financials that seem strong. A steady increase in HOA dues and not a jump. Surprisingly, those HOA’s that charge a fee when there is a sale and those funds go into the improvement of the building, are also a good sign.
    4. Walk-ability to whatever you love! If you love baseball then maybe a Condo that is right next to the Diamondbacks Stadium is for you. If you like Shopping then a Condo next Scottsdale Fashion Square may be your ideal condo. Or maybe you are a Capital Grille fanatic (like me) there is a condo within walking distance of there, too!
    Buying, Uncategorized

    Is it a Buyer’s Market? Not Quite…

    We appear to be in a Balanced Market!

    Never Judge Your Clarity by Someone Else’s Response

    Starting Over the TV Series

    Check out my Podcast on “Balanced Real Estate Market! What is that?”

    Right now we are all hearing that buying a home just isn’t possible, interest is too high, prices are too high or too low, the economy is bad, who knows what will happen in the future…So there may be some truth to all of these statements, but there are work arounds!

    So when interest rates go up, lending tends to not be as tight, it’s the old supply and demand. Also, Seller’s are more apt to help buy down the interest in a Balanced Market! This is an awesome trend that is going on right now. Talk to your Lender about this one before you put in an offer to see what the maximum amount a Seller can contribute to you!

    So prices being too high or too low, may not really be an issue if you are selling a home and buying a new one. In addition, Seller’s are more inclined to accept your contingent offer in a Balanced Market, giving you time to get your current home sold. But, be prepared to be a Seller who knows how to sweeten the pot for the right Buyer.

    So the economy is bad and who knows what will happen in the future…so some day prices will go back up and the economy will get better. History tells us that there are ups and downs in real estate, but except in very rare cases is a home purchase deemed to be worthless, even if it’s only worth the land due to some unforeseen condemnation.

    So if you are in the market to change your home, don’t be afraid, there are deals to be had and Seller’s are more reasonable than they have been in the last couple of years.

    Watch this short Video on the New Balanced Market!