Nancy Knows Madison County

First time home buyers: Are you still at the computer, doing endless "research" on how to snag the $8000 TAX CREDIT for buying a house this year? 

Does the November 30th deadline seem like a million years away as you think about fireworks (not turkey leftovers)?

First time home buyers: Get your butts in gear. NOW.

This is the wrong time to claim you only get motivated when a deadline looms.

This is the wrong time to tell everyone you are a "last minute kinda person" who pulls an all nighter when you have a term paper, and shops for Christmas presents on December 24th.

Here's why: Buying a house takes longer than you think. There are 8000 reasons you DO NOT want to miss this deadline.

Let's back things up. Do you think OTHER first time home buyers might wait until the last minute? Lenders could very likely experience an overwhelming amount of applications this fall.

With applications already taking 45 days, it could easily take 60 days to close your loan. Or more. Lenders are already ridicuously understaffed.

This means you will need to be in contract no later than the end of September.

If you have not already done so, you will need to accomplish this during the months of July, August and September:

1. Find a Mortgage person
   
2. Find a Real Estate Agent
   
3. Find a House
4. Make an Offer, negotiate terms. Find another house if first offer is rejected. Get new offer accepted.
   
5. Get financing completed and loan closed.

 

Some likely time lines and what to expect:

1.  Apply for a mortgage.  Provide the required documents and ask for a pre-approval. This will uncover any glitches standing in the way of your approval. This will make certain you have the right amount of funds in your account, or lined up as a gift. This will let you know your price range before you begin shopping for a house. This will let the Realtor know you have done your homework and are serious. ESTIMATED TIME REQUIRED: 1-2 weeks

2.  Figure out where you want to live and find a Realtor.  Look for a Realtor that knows the neighborhood where you would like to buy. Communicate openly and be on the same page if you are buying with another person.  ESTIMATED  TIME REQUIRED: 2-3 weeks

3.  Shop for a house with your Realtor.  ESTIMATED TIME LINE: 3-4 weeks.

4.  Make an offer, negotiate terms, get in contract. Ask your Realtor about timing before making an offer on a short sale or a lender owned property.  ESTIMATED TIME LINE: 1-2 weeks or more...depending on how many offers it will take to get a house. Market could become highly competitive as the deadline looms.

5.  Secure financing with lender, and close the loan. Inspections and appraisal will occur during the time as well. ESTIMATED TIME LINE: 6 weeks to 8 weeks

Worst case estimated time line: 19 weeks.

Weeks until November 30th? 22 weeks, beginning next week.

Can you do this in less time? Yes you can.

Just like when you gave your Mom that lame ceramic unicorn for Christmas (purchased in a panic on Christmas Eve, thrown in an obviously used gift bag, then sneakily placed under the Christmas tree minutes before gift opening).

 

 

 

 

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

Sounds like the title to a tantalizing new mystery book, doesn't it?  A book like that might be chock full of suspense with the characters experiencing emotions ranging from confusion to frustration and a maybe even a dash of irritation.

Too bad that what I'm talking about here isn't fiction.  For far too many home sellers, this mystery is all too real and common.  Every day in our market sellers are wondering "What happened to my REALTOR®?"

Nancy and I handle a lot of sellers who have had their listings expire from the MLS for one reason or another.  Sometimes it's price, and other times it's lack of attention from the listing agent.  Here's a prime example:

Last summer we visited with a seller that had his home on the market for one year with another agency.  His listing had expired and he was interviewing new agents.  A really good move on his part - sellers should talk to as many potential agents as possible to find a good fit for both them and the agent.  A few days after we talked, he called to tell us that he had chosen another agent but that it was a close call.

His house has now been on the market for over 560 days.  When I pulled up the listing history in the MLS, I noticed that the listing had only been touched once over the past year - and that was to extend the listing agreement.  In our MLS, agents input prospects to receive listings as they come on the market - the catch is that if your listing is there BEFORE the prospect is entered by the another agent, the prospect doesn't receive your listing.  So for approximately 10 months, his listing has sat there unattended and has not been populated into the listing cart of ANY prospect after he was listed.

It's actually sad, isn't it?

The number one complaint I hear from sellers who have had their listing expire is "My REALTOR® stuck a sign in the yard and disappeared.  I would have lowered my price if they had taken the time to do a market update every few months.  I never heard any feedback from showings, and in the 100 degree summer my house was being marketed with a picture of it with snow on the ground.  What gives?"

I believe that there are some agents out there that think the work stops when you get the listing agreement signed.  That's just not the case.

The gentleman in my example above took all the right steps, he interviewed multiple agents and he didn't pick his agent based solely on price.  So how can Edwardsville and Glen Carbon home sellers avoid becoming the main character in a bad mystery novel?  Arm yourself with these 10 questions for any agent you interview.

1.  How often will you communicate with me?  How will you communciate with me?  (If you prefer a call and your agent prefers e-mail, hash that out now.  Communication is the foundation for a great team, and you and your agent are a team).

2.  How long do you normally take to return a phone call?

3.  How long do you normally take to respond to an e-mail?

4.  Will you provide me with market updates that compare my house to ones that have closed as well as my active competition?

5.  When the seasons change, will you update your marketing materials?

6.  Will you set me up in the MLS to receive automatic e-mails when something new comes on the market that my home will be in competition with?

7.  Can I deal with you personally when I have a problem, or do I have to go through your assistant?

8.  Will you provide me with a monthly status update about where my home is being advertised?

9.  Even if you can't reach the other agent for showing feedback, would you please still call me and at least let me know that?

10.  Will you change MLS descriptions every few months to give my listing a fresh look?

If you receive an unsatisfactory answer to any of these questions, move on to the next agent.  The seller-agent relationship is not like an employer-employee relationship... it truly is a team effort and you must find an agent that matches your style for your home sale to be a success.

Questions about selling your home?  Stop by Sacred Grounds Cafe in Edwardsville every Tuesday from 12 - 1 to have them answered.  We'll be there talking all things real estate - and we'll even buy the latte.

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About the Author:  Kristina Pratt is a REALTOR® with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Nancy Milton help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Kristina@JustDuckyHomes.com

Maybe you're thinking of buying your first home to take advantage of the first-time buyer tax credit. Or perhaps you've outgrown your current home or need to downsize.  There are any number of reasons why you might be buying a new home.  If you're a first-timer you're likely full of questions about how the process works.  If you've bought a home before, it might be time for a refresher.  Either way, we're here to give you the information you need.

For a limited time, we'll be at Sacred Grounds cafe in downtown Edwardsville from 12 - 1 on Tuesdays to answer your home buying questions.  Let us buy you a cup of coffee and chat about everything from your specific needs to how the process works.

No pressure, no obligation - just a great cup of coffee and a chance to pick the brains of two real estate professionals.

Prefer your own private consultation?  No problem.  Just shoot us an e-mail or give us a call and let us know. 

 

About the Author:  Kristina Pratt is a Realtor with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Nancy Milton help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Kristina@JustDuckyHomes.com