You Only Have One Chance to Make a First Impression & That Includes the Internet

With more and more people turning to the internet for shopping, it was only a matter of time before people started to do the same when searching homes for sale.  Gone are the days when you relied on a real estate agent for access into a homes interior, and he/she would have to drive you around to show you a variety of homes just to walk in the door, know that it is not what you want, and walk right back out.  Now potential buyers have that power to explore inside, outside and all around houses all by themselves without having to leave the comfort of their home, or with their smart phone as they are out and about.

With this in mind, the demand for quality real estate photographs has never been higher, and yet, we still find home photos on line that are dark, that are of a corner of a room, and are just poor quality.  Heck, there are even photos of laundry thrown about and dishes in the sink.  When searching homes for sale online, you will inevitably come across many potential homes.  However, the only ones that will be given a second look at are those that are presented well in the photos.  After all, if the house does not look good in a picture, what are the odds of it looking good in person? 

There are two main problems that occur in amateur real estate photography that are sure to cause a potential buyer to gloss over the listing online.  The first is perspective and the second is season.

Many real estate agents are content with standing directly in front of a home when taking a front shot.  This provides no depth to the house and makes it look smaller than it is and almost cartoonish.  Instead, the better perspective would be to move off to one side of the house and crouch down.  That way, the building looks bigger by comparison, and you can see how far back it goes.  Even if the house does not go back very far, it at least lets a potential buyer know that there is a home behind that door.

  Second, the issue of seasonal photographs is such an obvious one that it seems everybody should be aware of it.  If I am looking for a house in the summer, it will be hard to picture myself there if the photo was taken under two feet of snow. 

For those agents who do not have an eye for architectural photography or the ability to enhance photos, it is a wise investment in having them taken by a professional.  There is no better way to peak interest in a home than to have quality images on line as soon as the property is listed.  It is all about that 1st Impression. 

The Importance of Credit Scores in Real Estate

The search for a new home can be an exciting one; however, before you begin your quest for that dream home, your Realtor® would require that one of your first steps would be to meet with a mortgage lender.  This individual will help you determine the price range at which you should be looking, and at the end of the meeting, if all goes well, you should find yourself pre-qualified for a mortgage loan. 

What is one of the primary factors that go into a lender’s decision of whether or not to grant a loan?  Credit scores.  It has been estimated that nearly 75% of all mortgage loan decisions are made with the applicant’s credit score in mind.

The importance of credit scores in mortgage decisions and real estate transactions has risen over the past decades, and this is in large part due to what the lenders call risk-based mortgage pricing.  Essentially, the lender will make a decision on a mortgage based on how much risk is involved in the transaction.  If an individual has a credit score below 700 (which I’m sure none of you do), then that tells the lender that they are at higher risk of defaulting on their obligation to pay, and that will be reflected in the loan that they propose.  They may be offered a higher interest rate.

Now before you rush off to a free credit report website in a wave of panic, please keep in mind that a credit score is not a permanent and accurate representation of who you are as a person, and many mortgage lenders understand that.  It is important to find a lender who can see you as an individual with your own story.  That is not to say that you should ask them to completely disregard a credit score of 450 and give you a loan for that million dollar home, but there are some lenders out there who are willing to work with a low credit score, owing to the fact that you are not a number, but a person.  They will take into account things like your rental history.

That being said, it can’t hurt to try and raise your score before meeting with a lender, and there are many ways to do this.  Getting a credit card and keeping up with the payments is a quick and easy way to improve your credit and show lenders that you are serious.  In the end, that is all the lenders want.  They want to know that you are a responsible borrower and understand the value of a positive credit history, and a high credit score will give them a good first impression. 

Mortgage Industry Adjusts as Real Estate Market Fluctuates: An Interview with Robyn Sealover

The following is an interview with Robyn Sealover, a mortgage specialist. Robyn has more than 20 years in the real estate industry including three and half years in the mortgage business.

Once someone has decided on a home to purchase, it’s time to secure a mortgage. Or is it? We often hear that one should be pre-qualified before searching? Is this true or does it vary? Please explain.

It is best to get pre-qualified before the search for a new home begins.  This will determine whether someone may be credit worthy as well as what price range they may be able to afford.  It will save the buyer as well as a realtor’s time ensuring that they are searching for an affordable home and not something that is ‘OUT’ of their price range and comfort zone.

It’s said that most mortgages are 30-year terms, although some are 15 or 21-year options. Do you recommend the 30-year or does it vary based on the individuals seeking a loan and/or the cost of the home and down payment?

While the majority of most loans are for 30 years, with interest rates being at all-time lows, it may make sense for borrowers to examine the possibility of shortening the term of a loan.  Each circumstance will vary depending upon how much a borrower can comfortably afford.   The payment for a 30 year mortgage would be less than a 15 year loan since the payment is condensed.  There are no 21 year mortgages.  There are 30, 25, 20, 15, and 10 year mortgages that are the norm.  The rates for a 30, 25, and 20 are usually very similar.  Most 15 & 10 year rates are lower. 

In “The Money Book for the Young, Fabulous and Broke,” Suze Orman says there are three different types of mortgages: fixed, adjustable and hybrid. She recommends hybrid mortgages for first-time buyers stating they are the best deal. First, can you explain the different types and second, in your opinion, is Orman on target with her recommendation of hybrid mortgages for first-time buyers?

I really value Suze Orman and think that she has done a fabulous job educating people on how to manage their finances and prepare for the future.  I truly recommend reading her books or watching her seminar.  While I value her opinion, I don’t recommend a hybrid mortgage.  This is an adjustable mortgage that may start with lower payments that are fixed but then amortize or adjust to a higher rate.  With the market being the way that it has been and interest rates at all-time lows, it would be wise to grab a low rate without the fear of the rate adjusting to a higher rate and payment. 

Orman also says homeowners typically stay put for only five to seven years. This seems like a short amount of time, especially considering that many have taken out 30-year mortgages. Why is this and what does it mean for mortgage lenders?

Most people do not stay in their first home since this is usually a smaller home or a “starter home.”  By using a 30 year mortgage, the payments would be lower.  When their income/family size increases, most plan on purchasing a larger home.  There is mobility in home purchasing but many have found the right home and will stay there for a lifetime and raise a family following the American dream.  It is a good idea to establish a relationship with a lender to determine when it may be a good time to move up or conversely down-size and help determine the correct payment plan.

Let’s talk interest rates. We’ve been hearing it’s at an “all–time low” for  about two years now along with a bunch of other things such as “now’s the time to buy.” What’s a “good rate” and what are the current rates for a mortgage right now?

We are currently experiencing historically LOW interest rates.  This really is a great time to buy.  Home prices have stabilized somewhat and we haven’t been as severely affected by the prices of homes in Central Pennsylvania.  This will enable a buyer to have more buying power…therefore getting more BANG for the buck!  It is hard to quote a rate though because there are so many variables.  It all depends on what credit score a borrower may have.  What their LTV or loan to value may be.  This means how much they may be investing in a purchase: what type of loan program may be used, where the home may be located, etc.  With so many variables, the rate is really case by case.  If you look at the stock market, you will see how the stocks go up and down constantly!  Any rate that is quoted to someone is like the stock market.  It will change frequently and is only effective when it is quoted.  The rates may change multiple times during the day. 

It used to be that many saved for a home and put 20% down. Is this still the case? If not, what’s the cause of the shift?

It is actually shifting back towards wanting to have more money available for the down payment.  There have been so many foreclosures, which has made making a mortgage purchase with less money down, more of a risk.  The risk factors are determined by looking at someone’s three credit scores.  The lower the credit score, the higher the risk.  There are still programs that you may be able to purchase with little money down, but once again, this is a case by case determination. 

What signs are you looking for that the real estate industry is recovering?

The real estate market is still floundering and trying to recover from some of the toughest years we have had in some time.  The effects of some poor investments may take quite a while before we can say that it has recovered.  The glut of foreclosed homes on the market has affected the price and value of many homes.  We have been fortunate that Central PA has not been as severely affected as some areas since this is a conservative area, but we have still seen some harder times.  People are more cautious before making a purchase and are trying to educate themselves.  This is a great thing.  A more educated purchase will ensure that a home owner is making a wise decision.  Purchasing a home is the biggest investment someone will make in their life so it is important to choose wisely.

Lawyer’s Realty is a one-stop shop for real estate transactions by including both a qualified legal representative and a real estate professional in the transaction.  How does this legal representation trickle down to the mortgage lender? Does it help make the process smoother? Please explain.

It does make things easier to be able to know that all parties involved in the purchase process are able to interact and communicate easily since the title, realtor, and attorneys are all available within one “house.”  A more cohesive transaction will help ensure that a purchase will run smoothly.

Have You Ever Dreamed of a Vacation Home to Escape To?

Its summer and that means vacation!  Nothing says relaxation and fun like a summer home! So why not give your REALTOR® a call about getting yourself one of those “get away homes” while it is a Buyer’s Market.  

Having a REALTOR® is important when making all of the vital decisions.  We will guide you through the process quickly so you can start enjoying your down time! We can assist you in the selection of your new second home by providing objective information about each property. We have access to a variety of informational resources and can provide local community information on utilities, zoning and various other details.  

Obtaining financing for a second home can be challenging without the proper guidance.  This is where your REALTOR® can also be of great importance.  We can help identify qualified lenders that will have the right program for your situation.  

With a negotiated agreement in hand, it is time to complete the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, faulty structure, roof condition, septic tank and well tests, just to name a few.  Your REALTOR® can assist you in locating qualified and professional inspectors to complete these inspections and provide you with written reports. 

When looking at a property, make sure you truly like the community. For that, there's no substitute for spending time in a prospective town.  The more you know an area, the better you can eliminate some of the risks of buying. You may want to consider renting for a season. This way you'll find out about up-and-coming areas and projects that could affect your investment.

According to Forbes, when renting a summer property, you will also want to maximize your purchase around a recreational activity.  Here are some locations you may want to check out:

• The Poconos offers year round recreation and is the ideal spot to rent or buy a vacation home.  The Pocono Mountains offer skiing (winter), horseback riding (spring), sailing (summer), and hiking (fall). There's even a Fall Foliage Hotline to point you to the most spectacular views and scenic driving routes.  There is no limit to your activities here!
• Another hot spot The Wellsboro area, home of the Pennsylvania Grand Canyon, offers hundreds of miles of hiking and biking trails from flat packed surfaces to rugged mountain terrain.
• The village of New Hope is nestled along the banks of the Delaware River. New Hope and its surrounding area offer visitors scenic countryside, romantic hideaways and family fun.  Enjoy the New Hope Renaissance Faire, beautiful wine country, the arts, historic districts, nightlife and of course, shopping!

As soon as you are sure the property is right for you, and you want to make it your home to escape too, it is time to close on your second home. Again, we can guide you through this process and make sure everything flows together smoothly.  Give us a call today to get started!

Customer Loyalty

My daughter who is part of the XYZ, or whatever generation the 20 something crowd is part of, has explained to me that her generation is “non-trusting”.  Now this is the generation of growing up with all their business out there for the world to see:  MTV Real World, You Tube, Facebook, and these are only the beginning. Non-trusting, I ask?  Yes, it seems that they are very skeptical and tend to not trust very easily which makes gaining their loyalty challenging. 

Coming from a Realtor’s standpoint and needing to gain their trust and loyalty so that we can work for them to the best of our ability, how do we obtain buyer loyalty today?  It seems to be harder to do than in the past with this new generation of buyers.  It was always understood that by living and doing business by the Golden Rule: to treat others how you would want to be treated, would gain you loyalty and respect.  Is that still all it takes? I would hope that is still true, but maybe we need to adjust. 

Building rapport and gaining the loyalty has to be accomplished at the very beginning, or these future buyers will be on the internet setting up a showing request with someone else believing that they can just call any agent to show up at a house to let them in to see it, because they are not loyal to anyone in particular. I believe we will be most effective if communication is honest, educational, and coming from a place of listening from the start. 

Today’s Realtors certainly need to be on leading edge of technology and be available to buyers even if it is a quick text message reply at midnight.  Again, they will be on the internet if you are not willing to be available and flexible with your time, as these buyers expect, or should I say, demand instant communication.   

If an agent can build rapport with their client(s) early on, the trust and loyalty will follow.  As Orison Swett Marden said, "The golden rule for every business person is this: Put yourself in your customer's place"

What has a business done for you in the past that lead you to be loyal to their company or brand?

Lori Zimmerman is the Operations Manager and a REALTOR® at Lawyers Realty, LLC in Lemoyne, PA    

Drop the "Fly by Night" - The Importance of Having a Buyer’s Agent Represent You.

So You are Shopping to Buy a Home.  Shopping?  Yes, Shopping. 

You are on the internet and see a house of interest or drive past a home with a For Sale sign, and you have questions on these homes or you want to take a tour.  What do you do? You call the agent on the sign or on the listing, of course.  They show you the house.  It is not really what you wanted, so you continue your search. You do the same thing with the next property that you want to see and so on, and so on, don’t you? 

Good idea?  Not so much, and I will explain why this is not in your best interest.

Buying a home is more complex then just calling a listing agent and asking that agent to show you a house. 

Before you start looking at homes, it would best to do your research to locate a REALTOR® to represent YOU.   By hiring a REALTOR®, you will have representation throughout the entire process.  They will also be objective when showing you a home and point out potential issues. A buyer’s agent will be able to show you any property that is listed for sale no matter which company has it listed.  Brokers co-operate by listing their properties on the multi-listing service.  Keep in mind that a listing agent is looking out for the interests of the seller – they are representing them and in doing so, owe them their loyalty. 

Whether you are a first time home buyer or have gone through the process many times, you should still plan to use a buyer’s agent for the same reasons as listed above.  Upon your initial meeting you would want to discuss the Exclusive Buyer Agency Agreement with your REALTOR® which would spell out the relationship between you both. 

All real estate licensees are not the same. Only real estate licensees who are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called REALTORS® and are committed to treat all parties to a transaction honestly. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. An independent survey reports that 84% of home buyers would use the same REALTOR® again. To read more about why you should use a REALTOR® visit: http://bit.ly/OPBo5.

The best thing a home buyer can do is to research and gather as much information as possible so they can make an informed decision. Remember that knowledge is power!  Don’t be afraid to ask questions.   

What advice would you give any one buying a house in today’s market?

Avoid These Top Home Selling Mistakes!

We continue our blog from last week about how you can avoid difficult and costly hurdles to selling your home in a tough economy. Remember, home sellers often set unrealistic expectations that can delay the process.   The following list contains the second part in the two-part series of common mistakes to avoid.

6. Thinking you need to be in the home to explain things to a prospective buyer

Being present during a showing may actually harm your chances of selling your home because the prospective buyers and their agent can often feel uncomfortable talking or exploring the house freely while you’re present. 

7. Not being objective about your home

You have to be open and honest with yourself if you want to sell your home.  This means listening to your REALTOR® when he or she offers suggestions on improvements for selling your home quickly.  You may have sold houses before, but today is a different market and your REALTOR® has their “pulse” on it. 

8. Putting the home on the market before it's ready

Don’t overlook the value of hiring a stager. Staging your home before placing it on the market is the packaging which will help you sell.  Also, be sure to remove clutter and begin to pack as much as possible so the house not only looks clean and tidy, but it will also show as spacious as possible.  Once it is on the market, be extra careful if you are still living in the home to keep it neat, clean and tidy in the event of possible showings.

9. Not comparing your home to others in the area / market

A good REALTOR® will pull data (comps) of other homes that are currently on the market (your competition) and recent homes that sold in your area.  These homes will be of comparable age, size and condition. This will help you set realistic expectations on price and save you a considerable amount of time in lowering the price. Remember, it is best to list your home correctly from the beginning and not after it has been sitting on the market. 

10. Getting Emotionally Involved

You have to be prepared to sell your house.  Your home will always have more value to you, than to others. Perhaps it’s the home you grew up in or the home where you raised your children. Whatever the case may be, you cannot let these factors hold you back from selling when you receive a reasonable offer. Remember, your REALTOR® can help you determine the value of your home, without becoming emotionally involved.

We want to hear from you! What other factors should be considered when selling your home?