Darren Schortgen Fort Wayne/New Haven, Indiana Homes 's Blog

Why the NAR is fighting the 20% down rule in the QRM!

Fri, 20 May 2011 13:04:00 -0700

This post is being written in response to a post that I read in which the author felt that the NAR should not fight the proposed 20% down rule in the QRM.

For starters, people need to understand what got the housing industry in trouble, and be sure to pass out the blame where it deserves to be passed out. To begin with, the amount down payment has shown to have little to do with whether the mortgage gets repaid or not. For example, USDA and VA loans are ones which don't require a downpayment by the buyer, yet they are no more frequently defaulted on than conventional mortgages.

Why do homes get foreclosed? The simple answer is that they do so when the home owner cannot afford to repay the mortgage. In many cases, someone bought using an ARM(Adjustible Rate Mortgage), and after the mortgage rate increased, and in many cases doubled, the owner could no longer make the payments. In other cases, the person responsible for paying the mortgage lost the home after job loss, divorce, or a major expense like medical bills. In those 3 examples, the mortgage was unlikely to get paid whether they had put down 20% or not.

I've heard some people argue that maybe we should require higher downpayments on homes above the median home price in the area, so as not to penalize 1st time home buyers. While that may help in some cases, what about the doctor who just graduated medical school? I have sold homes to doctors without a downpayment, and I am yet to see one of them default on their mortgage.

The conclusion I have drawn on this issue can be summed up in very simple terms. It's not about the downpayment - it's about the ability to repay the mortgage!

If you are interested in receiving personalized service from a Fort Wayne Realtor who puts you first, give me a call, or send me an email. I am always there for both new and previous clients, both before and after the sale.

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com

The Best This, or The Best That............Really?

Sun, 01 May 2011 19:39:03 -0700

I can't believe how often another Fort Wayne Realtor try to tell me that their listing has the best this, or the best that, in the neighborhood. Why can't my fellow Realtors understand that "the best" comes down to a matter of opinion. Let me give some examples.

I've had agents tell me that their listing has the best lot in the whole addition. As a matter of fact, I have had 4 different agents tell me this in the same addition that I was recently showing houses in. The interesting part is that the lots were all quite different from each other. One was heavily wooded. Another had no trees at all. One had a rolling terrain. Another had as level of a yard as you will find. Each of these might be the best lot to someone, however, none of these would be the best lot to everyone.

Floor plans are the same way. I have heard so many times about a house having the best floor plan. The thing is, the best floor plan is what works best for the potential buyer for the home. It's not a universal thing. Some people love split bedroom floor plans, while others like their bedrooms all near each other. When you throw in different styles of houses, which can often range from one to 3 levels, you can have all sorts of floor plans to choose from. And this extends to other rooms, too!

When it comes to Fort Wayne Real Estate, the best this, or the best that, comes down to what is best for you, the client. Your Fort Wayne Real Estate needs need the personalized service of a Fort Wayne Realtor who will work to find what is the best in your eyes.

The choice is easy, when it comes to your next Fort Wayne Real Estate sale or purchase. Hire the Fort Wayne Realtor who will look out for you. Hire me, Darren Schortgen.

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com

Because I represent the Seller!

Tue, 26 Apr 2011 23:38:29 -0700

As a Fort Wayne Realtor, I find that very little shocks me anymore when it comes to a real estate deal. Overall, I would have to say that I must shock others more than they shock me.

This afternoon, I received a call from the mortgage loan officer who is working with the Buyers on one of my Fort Wayne Real Estate listings. This was my first conversation with her, concerning this real estate transaction. She pointed out to me that our contract was originally written up to close by the end of May, but that in one of the counter offers, we changed for the home to close by the middle of June. She wanted to know if we could still close by the end of May, because it would save the Buyers money by doing so. Was she ever shocked when I told her that the only way we would close by then is if it’s in the best interests of the Seller, because that is who I represent. She seemed shocked by what I had just told her. Hello? What part of my commitment as a Fort Wayne Realtor to put my client's best interests ahead of the interests of someone that I do not represent did she not understand?

When it comes to choosing your Fort Wayne Realtor, do you want to work with someone who puts your best interests first? My clients know whose side I am on. I cooperate with the others involved, to ensure as smooth of a transaction as possible, but I never do anything that compromises my client’s best interests.

The choice is easy, when it comes to your next Fort Wayne Real Estate sale or purchase. Hire the Fort Wayne Realtor who will look out for you. Hire me, Darren Schortgen.

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com

Why Yes, I Do Work Evenings and Weekends!

Wed, 13 Apr 2011 16:40:47 -0700

It always surprises me when someone calls after 6:00 in the evening, or any time on the weekend, who is looking to buy or sell Fort Wayne Real Estate, and the first thing out of their mouth, after a pause, is “I was surprised to reach you. I thought for sure it would go to voice-mail”. It amazes me that people are still surprised by this.

The majority of my clients work hours between 8:00 a.m. and 6:00 p.m., although there are some exceptions. In order to properly service the needs of those people, I realize that I have to be available during the evenings, and on weekends, to both list and show homes. I often have clients who say that they don’t want to take up too much of my evening. It’s very considerate of them, but actually, it’s just fine with me if they do. That’s what I signed up for when I got into this business!

As a Fort Wayne Realtor, running my own Fort Wayne real estate office requires me to be accessible to clients, customers, other agents, title agents, home inspectors, surveyors, and a variety of other people, both during and outside the time frame of a normal business day.

Working as a Fort Wayne Realtor/Real Estate Broker is not a 9-5 job! At least not the way I do business!

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com

What 1st time Fort Wayne area homebuyers need to know!

Sat, 09 Apr 2011 18:48:57 -0700

Buying your first home can be overwhelming for a lot of people. You are entering unfamiliar territory. After years of renting, and paying someone else’s mortgage, you are now ready to start paying your own mortgage. But where do you begin?

The important first step is to go through the pre-approval process. Choosing a lender can be a difficult choice. You want to work with one that you can count on to help you through the process from start to finish, and to always be there for you when you have questions or concerns. If there is an issue that is preventing you from being pre-approved, you want a lender who can advise you on the steps to take to get beyond the issue. It is always good to get a recommendation from someone who has seen the work of the lender that you will end up working with. You can ask a friend who has already closed a loan with the help of a lender, who had a good experience. That might work out just fine. But a better place, in my opinion, would be to come to a Realtor for that recommendation. Why is that? It is because while your friend can make a recommendation based on a closed loan, a Realtor can make that recommendation based on dozens of closed loans.

Making the choice of which Fort Wayne or New Haven Indiana Realtor to work with is also a big decision. You want to choose someone, first and foremost, that you can trust, because this home purchase will, more than likely, be your largest purchase to date. It is important to choose someone who is available to you. You don’t want to work with someone who you can’t get ahold of, or that isn’t prompt when it comes to getting back to you. Choosing someone with experience and knowledge is also very important. You want to work with someone who has most of the answers for you, and has the resources to get the answers for you that they don’t already know. It is also a good idea to choose a Realtor who you can mesh with, personality-wise. You have to understand that you will be spending a lot of time with this person, often over a couple months or more, until this process is completed, and personality conflicts can lead to an unpleasant experience for all involved.

Something else important that I want to point out is that you, in general, are not paying anything out of your own pocket to work with a Realtor as your Buyer’s Agent. In most cases, the Buyer’s Agent is being paid by the Seller, but indirectly. Let me explain this. When a Seller hires a Listing Agent to list their house for sale, they agree to pay the Listing Agent X% of the sales price for their services of getting their home sold. If the Listing Agent belongs to a Multiple Listing Service(MLS), they offer a specified amount to any Buyer’s Agent who brings them an accepted offer on the property, provided it sells and closes. For example, it is often 1/2X%.

I also want to point out something else that is a common misconception regarding Buyer’s Agents. Some people say that they don’t need a Buyer’s Agent, and that they’ll just buy a home through the Listing Agent, thinking they will get a better deal. That couldn’t be further from the truth! The truth is that the seller is already paying the Listing Agent X%, whether the Listing Agent has to pay anything to a Buyer’s Agent or not. Also understand that Listing Agent represents the best interests of the seller, not yours. Which means that, often, not only will you not get a better deal, but that you will often get a worse deal. Having your own representation is very important.

The Buyer’s Agent that you hire is a very valuable resource to you. Finding homes that meet your criteria, and helping you have access to them is only the beginning. They help you by using their negotiating skills to help you arrive at an acceptable price, as well as acceptable terms to you. Part of the work of a good buyer’s agent is to help you in the selection of a good home inspector. Most of us are able to do this based on seeing the work of quite a few inspectors through the years. Another aspect of what I do as a buyers agent involves coordinating the transaction, and making sure that everyone is getting their part done, in order to see that the transaction closes on time. This involves working with the Listing Agent, Title Company, Lender, and anyone else involved that is necessary to see that your home buying experience goes as smoothly as possible.

If you have any questions on anything related to Fort Wayne or New Haven, Indiana real estate, or have the need for buyer representation in the Greater Fort Wayne Area, feel free to give me a call or send me an email. It will be a no pressure conversation. I look forward to the privilege of helping you with your real estate needs!

Darren Schortgen, Broker-Owner/REALTOR
Advanced Realty of Fort Wayne
(260)385-7603
Darren@DarrenSchortgen.com
www.DarrenSchortgen.com