I meant to have this out here earlier but, at least it's out!  Here's part 2 of "Misconceptions About Real Estate Agents".

 

Unless you’ve walked in the shoes of a Real Estate Agent, you may think that what they do is an easy way to make a lot of money.  If you think this, you’re mistaken.  Here are some common misconceptions about Real Estate Agents:

• 5. Because information is readily available online, Real Estate agents aren’t necessary anymore.  Response: Simply finding a home is only a small step in a process.  A good real estate agent is necessary to gather information, advise, know all terms to address in a contract and negotiate all terms and repairs.  Experienced agents have been through the contract process enough times to anticipate problems and avoid or catch them early enough so that the process can close (smoothly).  A layperson (or inexperienced agent) who can’t identify issues early may have a rough time getting a sale closed or may not close at all. A good agent will communicate with the lender and the closing agent until closing and be there if needed, after closing.  (Would you pull your own tooth?)
• 6. A buyer’s agent will cost me more money.  Response:  Buyers’ agents earn a living by selling homes to buyers.  A listing agent represents the seller and, because the listing contract was already negotiated before you ever see the house, the listing agent can/will earn the full commission when a buyer comes to them, directly and, yet, will not work in the buyer's best interest because that would be a conflict of the seller's interests.  In fact, since the listing agent represents the seller, the buyer is paying the same amount for a house with or without having professional representation.  Finding the home is a very small part of the services an agent offers. Wouldn't you rather have an experienced professional on your side?
• 7. Realtor® is just another word for Real Estate agent.  Response: A Realtor® is a Real Estate Agent who has earned the title of Realtor® by belonging to The Association of Realtors®.  All agents are not Realtors® but all Realtors® are Real Estate Agents.  Agents must join the state association and their county association if their office requires it.  Most do.  Some remote areas don’t join Associations.  Those who are members get their listings in the MLS.
• 8. I can work with many agents to find a home. Whoever finds me the house first is who I’ll use.  Response:  All agents have access to the same listings.  In this day and age, especially, gas is expensive, time is money and agents need to know that they will get paid for the work they do.  Driving people around to look at homes is only a portion of finding the right home for a buyer.  Agents don’t get paid until after a transaction closes.  It is unfair to expect anyone to work for free.  Therefore, agencies are now requiring buyers to sign contracts with agents just like sellers have done for years. This ensures that the agent is representing the buyer to the exclusion of any seller and that the buyer will commit to the agent to follow through with the agent that is working for them.  The new trend is to retain a buyer’s agent as you would retain an attorney.  Fees can be up to $499 to pay for the agent’s out of pocket expenses and, occasionally, some will be reimbursed at closing.

 

This weekend, Nashville, TN was snowed in.  Since the winters are usually mild with an average of 3 snows a year, and, of those, one may stick for a day or two, we were surprised to get 5".  Residents think they can drive in it...but they're really just lucky if they can make it from point A to point B without incident. Technically, it's not only about knowing how to drive in snow and ice.

Because we don't get much snow here in Middle TN, we don't put snow tires on our cars or chains on our tires and we're simply not prepared for it. Those who have 4-Wheel drive vehicles cockily believe that they are invincible.  The problem is that the temperature lingers at the freezing point.  It snows, then melts, then freezes over, leaving unidentifiable sheets of ice as road cover for overly confident, oblivious drivers to glide off and over roadsides, landing at the bottom of easements on top of each other like Emperor Penguins sliding off an embankment. Those who truly are experienced snow drivers don't have the accessories and can't account for what the other drivers they accost are going to do.

The last storm we had like this was in '94, only a few months after my move from South Florida.  I was with my friend who was from New York and he was driving in this snow...trying to get home and there was a dip in the road.  We didn't have the momentum to get uphill in the Toyota pickup so we were stuck in the dip.  A large 4-Wheeler stopped next to us and offered to tow us uphill for $10.  We declined the offer as my friend had driven in snow for years and knew his limitations.  We watched him take off, uphill, only to slide back down. Now that was comedy!

The news advised us to stay inside unless it's absolutely necessary to drive.  For the same reason as people who stay by their yachts in a hurricane, people constantly choose to ignore this advice.  At 5:00 PM on the first snow day, there had been reports of over 200 auto accidents in the Nashville area.  If you absolutely must drive in or after a snowstorm, just do it very slowly and ignore the idiots who get all up in yer rear end.

Hey, and I must add: if you need any information regarding Nashville Real Estate, just ask. Email me, call me or visit my site, www.RealtyNashville.com.

From time to time, I encounter or read comments from the public regarding their concept of Real Estate agents and how they earn their living. I was thinking about it today so I decided to compile some of these misnomers and address them in today's blog. I came up with a lot of them so I've split them up into a few parts. The rest will be available soon so stay tuned...

Unless you’ve walked in the shoes of a Real Estate Agent, you may think that what they do is an easy way to make a lot of money. If you think this, you’re mistaken. Here are some common misconceptions about Real Estate Agents:

1. Real estate agents earn 6% commission. Response: Often, commission to list a residential property is 6% but there is no standard, set commission in any area. The listing agent markets the property to buyers’ agents and the public and offers (usually) half to buyer’s agents as incentive to show buyers. Along with the (3%) commission, each agent has a negotiated commission split with their office, depending on experience and/or performance so the brokerage gets a part of that. Sometimes, the agent pays a monthly fee to their brokerage, as well.

2. Real Estate agents are paid a salary. Response: Agents work for 100% commission and don’t get paid until after a transaction closes.

3. The company pays for the agent’s expenses. Response: At least in this area, agents pay for their own signs, gas, advertising, affiliations with clubs and associations, licensing, car insurance, errors and omissions insurance, MLS fees, cards, websites and everything else associated with their listings and marketing themselves to gain clients.

4. MLS is for the public. Response: The MLS (multiple listing service) began as a way for agents to share their listings with agents. It started out as a book and, in the mid to late ‘90s, it was put on the internet. After a while, this information became available to the public. Agents pay for their listings to be in the MLS. In the 2000’s, online “lead generation” companies, started to use the information in the MLS to attract buyers and then sell the buyer’s information (back) to the agents (who, ironically, still pay for the listings to be available to these companies).

As I mentioned before, there's a lot of information here so please check back for part 2 and, as always, if you have any questions about Nashville Real Estate, or Real Estate in Tennessee, I'll be glad to answer them.

Rates have gone from under 5% within the past couple of weeks to over 5% (for those with good credit scores).   When rates are in the 4s, buyers want that rate.  They don't lock it in and then they ask for it when the rate is no longer available.  Then they say, "I should have...".   It's understandable to want the lowest rate, possible.   It sounds so simple but timing is the key to getting the rate you want.  You must lock your rate in on the day that the rate is available or you risk losing it forever.

Of course, you must have a property under contract to lock the rate in.  That's why it's best to start looking now and find that property.  Gee, anywhere in the 5s is low, low, low!  Compare it to rates of 12 to 18% in the 80s.  Can you even imagine how much payments would be on that type of rate? 

Another reason to start looking now is that you may be entitled to a tax credit.  A first time buyer can get up to $8,000 and a current homeowner, if you have lived in your home for 5 or more years, currently and concurrently can get up to $6,500.

For more details, see my previous blog @ http://is.gd/6k5Lr

Questions?  Call or email me any time.

Alyse Sands

615-668-9940

 

Due to current market conditions manifesting a large volume of distressed properties, the existing policy of not allowing financing for flipped properties has been revised. Legitimate property flipping transactions are now eligible to be financed by Wells Fargo Home Mortgage (primary residence and second homes only).

Effective immediately, all conventional loans not yet funded that meet the definition of a flip must: (1) follow the policy guidelines below; and (2) be reviewed and approved by NDS/NCO (if exception not already obtained).

Additional appraisal products are required that will result in additional time and cost to the transaction. If a full second appraisal is required, NDS/NCO must authorize and will order through the Appraisal Compliance Department. See processes below to prevent any delays in the ordering process.

-- Purchase transactions only.

-- Primary and second homes only.

--Full documentation.

-- If the loan is denied due to flip transaction requirements, the file cannot be brokered out.

-- If the seller is on title less than 90 days prior to the purchase contract date of the subject property, LTV cannot exceed 80%. Executing a new sales contract to avoid this requirement is not allowed.

If the seller is on title for more than 90 days but less than 12 months prior to purchase contract date of the subject property, follow standard published program LTV requirements. Executing a new sales contract to exceed the 12 months is not allowed.

-- Down payment and cash needed to close must be fully documented.

-- No gift of equity allowed.

-- No funds from the seller (including down payment assistance programs) will be allowed other than standard seller contributions.

-- Second mortgage financing allowed.

Form 4506-T must be processed as part of the origination of the loan.

If the increase between the seller's purchase price and the sales price on the subject transaction is greater than 15%, two full appraisals will be required. If the value of one of the appraisals is lower, the lower of the two values must be used. A reconciliation of the appraisals may be allowed by following the standard escalation process as long as the loan is not High Balance ($417000-$729750).

If the increase between the seller's purchase price and the sales price on the subject transaction is less than 15%, a CCR or an exterior appraisal must be ordered to validate the original appraised value.

The appraiser must:

-- provide the listing and sales history of the subject property;

-- comment on improvements to the subject property, supported with photos;

-- acknowledge the large increase in sales price from the previous sale and provide commentary on support for a large increase in value.

A LoanSafe report must be reviewed alongside the appraisal(s) with specific attention to the available sales, property history, buyers/sellers of nearby properties, etc.

Property must be exposed to the open market through MLS, traditional (non- Internet) auction, developer marketing, etc.

Buyer and seller may not be represented by the same real estate agent or broker.

Sales contract must be reviewed. Any reference to "assignment of a contract of sale" is ineligible.

Seller must be on title to the subject property.

No more than one title transfer, as documented by a 12 month chain of title and title commitment other than financial institutions or government entities, in the last 12 months. Be aware that asset management companies that lenders hire to handle foreclosure and short sales (such as Premiere Asset Services) would not count as a title change.

A 12 month chain of title must be obtained on the subject property.

Ownership of an LLC, corporation or trust must be fully documented.

Transactions must be arms length.

It's Official: More Homebuyers Qualify for Tax Credit

Today, November 6, 2009, President Obama signed an expanded version of the $8,000 first-time home buyer tax credit that was set to expire on November 30, 2009. The new version of the tax credit goes into effect on November 7, 2009 and has the potential to stimulate the housing market even more than the old version. More people will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers who have not owned a primary residence in the last 3 years, it has been expanded to include a $6,500 tax credit for home buyers who have lived in their current primary residence for at least 5 consecutive years out of the past 8 years. Under the old rules, move-up homebuyers did not qualify. Consider these examples:

Example 1: Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit because she lived in the same residence as her primary for at least 5 consecutive years out of the past 8.

Example 2: Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit because he lived in the same residence as his primary home for at least 5 consecutive years out of the past 8.

Example 3: Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit because she did not live in the same residence as her primary home for at least 5 consecutive years out of the past 8. ­

Example 4: Bob, an existing homeowner, signed a contract on October 22, 2009, to purchase a new home. He has lived in his current home for more than 5 consecutive years and is within the new income limits. He will go to settlement on November 22, 2009. Bob will qualify for the new $6,500 tax credit as there is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

The tax credit applies to homes that are purchased for less than $800,000 and before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. This is similar to a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit -- especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old versions of the credit. Some of these are feeder markets for the Upper Cumberlands. As these sellers relocate, higher sales in those markets could translate into more sales here.

There are many creative ways of structuring your home purchase transaction. The licensed and certified mortgage professionals at Reliant Bank can help maximize the benefits of the credit. Here are a few examples:

* The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence. You could live in one unit and rent out the others.

* If 2 unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income, or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)

* The credit applies even if you have co-signers on your mortgage loan. Today's good news regarding the expanded home buyer tax credit will have a positive impact on housing nationally. It is vitally important to share this information with our community so that we can benefit here at home as well.

I'm a professional, single woman.  I depend on my real estate income to pay my bills...no surprise because we all have to make a living.  Some people have a partner with a second income.  Not me.  I worked my way through school, I had a career in advertising some time ago and I've been working full time in Real Estate for 11 years.  I'm successful at what I do.  I grew up with a Real Estate Broker for a mom, I worked in her office as a young adult and I started originating loans in the early 90s.  Experience is my middle name (okay...it's really Michele).  I can anticipate a problem and avoid it well before it actually happens and I can prequalify any buyer you stand in front of me.  If the home you want exists, I'll find it.

I understand that sometimes service people will back-burner their friends when they're busy.  Maybe they think friends will understand because they're friends but I'll bend over backwards in business for my friend-clients and for my client-clients.  It's so important to me that I do the best I can do in everything I do and that I'm recommended by anyone I've worked for because they experienced quality service. 

Oftentimes, friends will use their friends' services just because they're friends.  Loyal friends don't always qualify each other.  Loyalty is important but so is good service.  I want my friends to know that I'm not only a friend but that I'm an excellent negotiator, an experienced educator, a Broker (the highest education for an agent) and that I want to provide references for them, too.  Question me.  Test my knowlege but, more than anything, think of me when it comes to Real Estate.  That's what I do best.  By using my Nashville Real Estate services, you're not doing me a favor, you're getting the best dang (southernism) service there is.  Support me by referring my Nashville Real Estate services to anyone you may hear talking about Nashville real estate (or surrounding areas).  So friends, use my services because I know my business, not just because I'm a loyal friend....and thanks in advance for your credence (and loyalty).  I will think of you, too.

Some 300,000 households who otherwise couldn't have entered the market will buy a home this year because of the $8000 tax credit. First time buyers (or those who haven't owned in the past 3 years) cannot afford to miss out on this opportunity. In order to benefit from this, the home purchase must be closed before December 1, 2009.

Buyers must act quickly to:

A. Get a mortgage pre-approval. You must be prepared when you find your dream home. Sellers will negotiate more when they know you CAN buy their home and banks require an approval letter before they will even look at your offer. You will know how much you can afford, the approximate rate and payments. Apply for free here: http://is.gd/2qj3d-

B. Have your agent, Alyse Sands, search for your dream home from thousands of bank foreclosures, resales and new homes, look at the homes that meet your search criteria, fall in love with one and get it under contract.

C. Time to close: Lenders are backed up and it may take up to 60 days to close a loan these days, especially because thousands of first time buyers will be closing right before the deadline of Dec. 1.

ACT NOW! Call me, Alyse Sands. I specialize in educating buyers. I will explain the process before we begin so there are no surprises. I'm a full-time Broker-Agent and Loan Professional for the past 10+ years.

The only way to know when the market has turned is after it's started going up it so buying at the bottom of the market is possible...but only by accident.  There's no way for anyone to predict exactly when the bottom will hit.

It seems that the market has picked up in Middle Tennessee within the past couple of months.  All of the agents I know, including myself, have been working with more buyers and have started getting offers on their listings.  That's proof positive that activity is up from a few months ago.

This is a tool for the public to use to justify or check on home values for those who are using it for curiosity's sake. It's fine but it is not viable information to use for market value for selling or buying and this is why:

When I, as a licensed Real Estate Professional, prepare a market analysis, I utilize information on recently sold properties that are similar in size, construction, age and area, starting with the same subdivision...APPLES TO APPLES.  I use the MLS information before using the tax records because many times the tax records are not recorded properly and much of the time the square footage is inaccurately listed.  MLS listings usually post square footage that was given by a previous appraisal or measured by the agent and is more accurate.  Agents and appraisers use price per square foot to come up with market value for a property compared with properties that are most like it in every way.  We also search first for homes that have sold within the past few months and, if we cannot find any recent sales, we'll go back six months.

Zillow does not take into consideration the age and construction of the home and it pulls the square footage from the tax records.  This is done without human intervention.  Nobody is checking to see if these comparable properties are truly comparable to the subject property.  Using the square footage from the tax records, it uses all properties close to the size within a radius of the subject property, regardless of age or construction.

You must have accurate information when buying or selling property.  This is one of the biggest purchases you'll ever make.  This is also just one more reason to use a professional when purchasing a home whether you are the buyer or the seller.