Off-Market Listings: How does Clear Cooperation affect you?

Today we’re going to discuss the Clear Cooperation Act that applies to all Texas realtors. It used to be that networking to find off market properties was a large responsibility for US realtors, but some new legislation has largely changed that. We want you to be in the know - so breaking down the Clear Cooperation Act will help you understand how the Texas real estate market has changed and what that means for you. Our goal is always to help you find the perfect home, so it's important that you understand this change. 

What is the Clear Cooperation Act?

The Clear Cooperation Act is a legislation that mandates within one business day of marketing a property to the public the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays, digital communications marketing, email blasts, listing sharing networks, and applications available to the general public.

In layman's terms, any public advertising means that a property should show up in the MLS within one business day. For those of you that don't know what the MLS is, it is the Multiple Listing Service and it’s an online database that only realtors licence holders have access to. The second that a realtor makes a property live it is instantly seen on the MLS. Websites such as Zillow, Realtor.com, or Trulia, are pulling their feeds from the MLS; making the MLS the primary source of data for everything regarding property in your area.

What does the Clear Cooperation Act mean?

First of all, this means that we cannot as realtors, discuss or advertise properties to other agents outside of our brokerage, which dramatically decreases the amount of properties that, in theory, should be sold off market. A huge part of our job was trying to get properties before they came to the general public and typically that meant that you could get a better deal before it went to the market. You didn't have to compete with many people. Since many people come to us and ask how good we are at finding off market properties, it is now our duty to share that it is largely illegal to find off market properties. 

We even can be fined for posting in a Facebook group about an upcoming property that isn't in MLS. We are literally not allowed to advertise to the public in any way without putting it in MLS within twenty four hours. The first fine is around $1,000 and after three strikes we can lose our license. So the second we put a sign in the yard, the clock is ticking to kind of get the property offloaded and make sure that it's in the MLS. 

Why was the Clear Cooperation Act put into place?

This law only applies here in Texas and the governing body for the Texas Real Estate Commission, are looking closely at fair housing laws. They want to make sure that all consumers are getting equal treatment, so this is really considered pro consumer legislation, even though it's a big change in the market. It just means when you're looking for a house, you should have access and information about all of the properties that are available. There shouldn't be a kind of a niche market of properties that are only available to those that are in the know about them. This should be on the platform that everyone is looking at, all the property should be available and so no one network has an advantage over the other.

How to make the Clear Cooperation Act work for you?

We have our license through a large brokerage that has about 350 other agents and every listing we have is actually our broker's listing. What this means is that we can legally share off market listings with other agents in our brokerage. Working with an agent that belongs to a large brokerage now has a huge advantage! They may have an opportunity to see things that just aren't on the market yet. Sellers still have the option to keep their listings as a “pocket listing” and keep it only within the brokerage they are working with. Some people do that due to privacy, such as celebrities or people nervous about others coming through their homes. There are reasons that people sell off the market, however statistics show that they sell for about 6% to 20% less than they would on the market.

While this is great exposure for sellers, it adds to the already competitive buyers market. The good news is that it’s estimated nearly 40%-70% of properties were being sold off market, which means there is going to be a significant change in the amount of properties that are available and it should level the playing field for all buyers! There will also be a “coming soon” feature added to the MLS with homes that you won’t be able to see on websites such as Zillow for 30 days. This will give your agent a good heads up of properties before they hit the market and hopefully get you in for a showing as soon as the property becomes live. We really feel as though the pros outweigh the cons here. 

Navigating the Clear Cooperation Act

We’re still learning more and asking questions about this change, so we more than understand that you would have questions about what this means and how this works. If you do, please reach out to us. You can find our contact info and reach out through where welivepodcast.com, or feel free to jump into our private Facebook group Where We Live on Facebook and start a thread there with a question for everybody else's benefit.

All you need to know is that we're here as your agent to help you navigate this! We don't want to lose our license either, and we want you to get the best house for you. We hope you learned something today! The real estate market is always changing and we want to be your resource for the most up to date information.

Until next time,

Brianna and Keelie

What to Look for in a Realtor when Selling

Let's discuss how to choose the right realtor to sell your home! While most realtors help clients buy and sell homes, interviewing a listing agent is a different process than selecting one with which to buy. Don't worry, an agent can be great at both. We want to make sure you know what to look for. This is part II to Episode 39, where we talked about how to select the best buyer's agent. Even in a hot market like the one we're in today, the best listing agent is going to sell your home faster and for more money. Let’s get into it!

1: Finding a Good Listing Agent

The first step is you need to make sure that you find a good listing agent. A good place to start is by calling the agent that helped you buy, if you had a good experience with them, of course. They’re going to be very knowledgeable about the property from the buying process and are going to have a leg up on already knowing you, how you like to work, and specific things about your house that others may not know. On the flip side, we definitely want to encourage you to see what else is out there and interview some others so that you can make the right decision! A great way to find someone is through referrals and, as always, we are more than happy to help you! The Remax network is worldwide and it’s an excellent source for connecting people with agents.

2: Schedule a Listing Appointment

After finding the right agent, regardless if you’ve used them before or not, they will need to come to your home for a listing appointment. The appointment is typically 1 to 1.5 hours long, during which you will discuss updates you’ve made, major events while you’ve been living there, and your honey-do list. Your agent will then tell you what they think needs to be done to prepare your home for market and get it sold. They will present a listing presentation where they will break down what they’re going to do to get your home prepared for market and get it sold. 

3: Signing a Listing Agreement

So now that you've done your homework, you either have all the confidence in the agent you've previously worked with or you've interviewed a few and you've chosen one that you like and  trust. Once you've chosen that agent, you'll sign a listing agreement, which really puts the wheels into motion. Even if you're not selling immediately, maybe you're selling six months from now, there are still things they’re going to be working on with you once the listing agreement is signed.

4: Setting Expectations

Make sure that during this process you are being transparent and realistic. If you have expectations on price, definitely don’t wait to discuss that with your agent. Or if there are other factors for when you move such as wanting your kids to be able to finish out the year. All of this will factor into what is the best strategy of how they will approach going to market and how they will approach negotiations. It’s all about finding someone that is aligned with your mission and priorities when it comes to selling your home. 

5: Market Analysis

When it comes to pricing your house appropriately, your listing agent is going to put together a market analysis for you. This is going to include data about homes that are similar and nearby that have recently sold, not only homes that have recently sold, but also homes that are currently on the market that are your active competition. It’s important to remember that people who overprice their homes typically stay on the market for longer and end up getting less for their house. That is due to people assuming that longer days on market means that there is something wrong with the house. This means way more showings and likely selling your house for less than you had hoped. It really goes to show just how important it is to work with your listing agent on the price and making sure they’re doing their research. People that know their market are going to be really well versed in what is a good comparable and what is not.

6: Marketing Your Home

We would say the biggest differentiator between a buyer's agent and a listing agent, is the marketing know-how. The two biggest reasons a home sells are the price and the exposure. This all goes back to your listing agent’s strategy and property prep. Listing agents will be meticulous about photos, because that is the first impression a buyer gets. So maybe they will suggest bringing someone in to stage the space or have specific ways they will suggest you prepare for photo day. Home buying feels a lot like online dating, if people don’t like what they see they will move on. After they pass the photo test the next big thing is property description. You want to make sure you’re making a good first impression! Since most people are searching for homes online it is crucial that your listing agent has an excellent strategy. 

Just like with any real estate agent you work with it is a team effort! 

7: Negotiations, Negotiations, Negotiations

We always say the most important thing to a seller is not just the price that you're giving them, but can they actually close and give you that price? They need to be a great negotiator because that is going to help you when offers start rolling in. This agent should help guide you to the best offer, because it's not all about the price point. If you're just comparing all the price points, you're going to miss a lot of other details that might make one offer much stronger than the other offers. That could cost you money at the end of the day, or it could put you at a higher risk for that buyer backing out. They're going to advise you on negotiating and quantifying those details. We want to get you the offer that is the most secure for the most money, so that you can move on in your buying process and whatever's next for you!

WE‘RE HERE TO HELP YOU FIND A GREAT AGENT!

A great agent is going to make it clear what both of our responsibilities are and they'll do regular check-ins to make sure you're hitting the timeline to get the house to market. I always say our job as agents is to raise the flare when something's urgent and has to be done right away. They're going to make sure that you're on time so that you get the desired result. If you’re looking to sell and buy at the same time then we definitely recommend using the same agent for both due to all of the moving pieces. It will relieve so much stress having one partner you trust handling everything for you!

If you're thinking about selling your home, please reach out to us via wherewelivepodcast.com. At the end of the day, the most important thing is that you choose an agent you like and that you trust and then trust them through the process. Don't forget to listen to Episode 39, What to Look for in a Realtor When Buying a Home and let us know if you have any further questions!

Until next time,

Brianna and Keelie

First Impressions from the Curb

Today, let's talk about curb appeal. We spend a lot of time inside our homes painting, organizing, living and enjoying. But how often do you think about the front of your house? Curb appeal can have a huge effect on resale value, neighborhood value and overall happiness in your home.

Spring is a great time to invest in your curb appeal. These improvements don't have to cost much money, but can make a huge impact. Even if you're not considering selling, you’re guaranteed to walk away from this post inspired to revamp your curb appeal.

Dallas is absolutely infamous for having cute houses on the inside, but absolutely hideous on the outside. We see that especially as realtors, so many people write off homes because the first picture is just horrible of the outside.

Why does the outside matter?

It’s a huge point of focus. Obviously, when selling a home, most people are going to see the outside and make their first impression based on how that feels to them. People will judge the neighborhood as a whole based on how the outside of the other homes look, too. It gives them a sense of what they think the neighbors are like and whether or not it's somewhere they can see themselves living.

Things you can do this weekend to revamp your curb appeal:

Paint

Paint can make a world of a difference! And no, we don't mean painting your entire exterior. (Unless you want to! In that case, make sure you use a masonry paint so that it will stand the test of time.)

Examples of things you can paint that will make a huge difference are your:

• Front door. That's something you can do in less than an hour. A colored front door is such an easy touch. We know people that paint their front door a couple of times a year just depending on what they want to do. It can give a great first impression, very low commitment, and it just adds some personality.

• Shutters! Changing the color of your shutters can dramatically change the look and feel of your house from the curb. Look on Pinterest and look at different colors of shutters and how they look with the color siding that you have and start there. You can always change it next year because it's a smaller project.

• Trim.  If you freshen up with some white or you use a contrasting color, it can make a huge, huge difference. The majority of this would be painting it probably white or black. Even just a trim paint job can communicate “hey, we've taken care of our home” and get things looking fresh again.

Plants

Plants are, in our opinion, one of the most inexpensive ways to add curb appeal to a home.If you're not hiring a landscape architect and working on a giant project, which you absolutely do not need to do in most circumstances, just putting a little effort would be more than most people in Dallas.

Examples of how to add a little pop to your home with plants:

• A decorative pot (or two) beside your front door

• Care for your landscaping by keeping up with trimming, replanting, weeds, etc. If you are not already subscribed to our email list, head over to wherewelivepodcast.com. From there, you can download our FREE Home Maintenance Checklist. We update this every single month and there are always several different items related to landscaping plants and other ways to improve your landscaping. This list is a great starting point to improve your curb appeal and your backyard. When you download it, you're going to automatically get an updated one every single month with what to do and when to do it.

• Add that beautiful tree to your front yard that will grow over time. Someone has to plant it first!

Windows

Sun screens keep a lot of the heat out because we have an intense heat here in the summertime, obviously from our sun. But the truth is, they're pretty ugly. If you're not effectively using them to save on your energy bill, get them out. At the very minimum, remove them when you're going to sell your house. Same with thermal seals. This is when you look at a window and it looks kind of foggy. If you try to clean it off and you can't clean it off, that means that the thermal seal has been lost. This is a cosmetic issue, but if it's in the front of your house, it's always going to look foggy. So we would say consider replacing the glass before you sell. This doesn't mean you need to replace the entire window and window frame, just the glass!

Bars on your windows indicate that there is something to be afraid of to potential buyers. For the sake of your resale value, remove those bars! It will not only look better visually and to buyers, but it will let more natural light into your home.

Sidewalks

Power-wash your sidewalks, driveway and even the exterior of your home to really make it feel more clean. This not only helps to get all the goop and grime off that has accumulated in the last year, but will help your home stand out on the block.

Is your sidewalk pitted out like Keelie’s? You’re in luck! The city of Dallas, if you're in Dallas, has a sidewalk replacement program where they will essentially split the cost of the materials with you. The labor itself is free, but it does take a while to get someone to come to your home. So, we recommend submitting as soon as possible, then when they get you the quote, you can decide if you want to do it or not. It's a good way to get your sidewalk fixed up to help with the curb appeal of the neighborhood. The information's all on this website: https://dallascityhall.com/services/311/Pages/default.aspx. 

Misc. Small Things

It's the little things that can really make a difference in your curb appeal. These can include:

• A cute, painted house number both on the front of your home AND on your sidewalk. Adds a modern touch and adds some flair from your sidewalk view. It’s not only practical if you ever need emergency services to come to your house, but it will also help your Amazon packages get delivered correctly. 

• A cute wreath on your front door. You can have a wreath for each holiday or season. Lots of options here!

• Doormats. If you want to take it to the next level, search Pinterest for ideas on how to layer them!

So we hope you got some ideas on how to freshen up your curb appeal. Even one or two of the small items is going to go a long way. So if you do some of these improvements, we'd love to see it. Tag us at @Dallas.Haven on Instagram.

For more information on home improvements and what to avoid. Go back and listen to episode 4 titled Top Five Home Improvement Mistakes.

Downsizing with NEAT Method

Today, we are talking about downsizing your space and making a small home work for your family. The real estate market remains very competitive for buyers, and many families are choosing to make their current home work harder for them. Even if they weren't thinking about moving, we're definitely all spending more time than we ever did at home. With that being said, we thought this was the perfect topic for people that feel like they're drowning under stuff in their current house and to help eliminate that daily clutter.

We interviewed two women in the downsizing business, Tara Kohlbacher and Missy Williams. Tara is a professional organizer who runs the Tulsa market for Neat Method, a luxury home organization company. When she's not organizing, she and her husband Isaac are busy raising two Irish twins who came to her family through adoption. She has a passion for transforming spaces from chaos to compose creating a neat life. Missy Williams recently downsized to an eight hundred square foot home with the help of Haven Realty Group. She's the co-founder and executive director of Seed Effect, a non-profit organization bringing the hope of Jesus and economic empowerment to refugees in East Africa. Prior to launching Seed Effect, Missy worked as an interior designer specializing in space planning as a working mom of two that works from home. She's found that an effective layout trumps square footage and an organized home calms the chaos.

Who else is better to get advice on downsizing and decluttering from than the experts? We will break down their version of minimalism, the benefits of downsizing, the NEAT method, and so much more! It was such a pleasure to pick their brains and learn about how we can help you make the most out of the space in your current home.

What Leads People to Minimalism 

There are many different things that attract people to minimalism, for Missy, it was the desire to eliminate unnecessary things demanding her time and energy. Her goal was to alleviate decision fatigue to allow her attention and energy to be focused on the decisions that really needed it, while removing a lot of the others. The first place she started was her closet by adopting almost a Steve Jobs like approach to clothes and developed a capsule wardrobe. The feeling of relief after eliminating all of the things from her closet she never even wore, that urge to continue simplifying started to spill over into the rest of her life. Putting the house back together at the end of the day felt like too much work and she became acutely aware of all the extra stuff in her home. She looked at the obscure piles of things in her house and wanted to relieve her household of those things by purging them! 

Tara had similar feelings, but her focus was more so on efficiency! Making her space work for her, creating efficiency, and simplifying everyday life. She felt overwhelmed in her last home and wanted to take a hard look at what she actually needed and how to organize that within her space. She realized that organization is not one size fits all and keeps that in mind with every single client, because the system she creates needs to make sense for their specific lifestyle so things don’t back slide into how they were before. Her career as an interior designer and obsession for efficiency really helped her transform how her space functions. 

The NEAT Method

The Neat Method is really founded on the principle that more stuff is going to require more of you. There is a customizable solution for your day to day life and a curated space composed of everything you need and use will eliminate clutter. It is entirely possible to have less space and less chaos with these 5 steps:

1. PURGE - Take everything out of the space you’re wanting to organize. Get rid of the things that you don’t use and are taking up valuable real estate. 

2. CATEGORIZE - Sort and put like-items together. This will help you when deciding what zones to place your categories in.

3. CONTAIN - Map out the best way to utilize the space then buy appropriate baskets, containers, dividers, etc to put everything. The Container Store will be your best friend!

4. IMPLEMENT - Putting your categorized items back into the appropriate zone and prioritize where the high value things you use the most frequently need to go to be accessible.

5. LABEL - This ensures everything has a place in your home, other people can navigate what goes where, and it makes it easier to maintain that space. 

For example, let’s say making lunches for your kids is really stressful and the set up you have in your pantry is not working. You start by taking everything out, you're sorting and categorizing it, and then mapping out a plan for products you need to buy to organize. After that you begin implementing things back into your space and labeling at the very end. You want that space to make sense for the primary use. So maybe that’s keeping snacks in a bin that’s eye level for your kids to be able to choose for their lunches or carving out dedicated space for your everyday grab-go items in the morning.

Overall the key to this method truly working for you is to make sure everything fits well in it’s dedicated zone and that it’s functional. If those two things aren’t being fulfilled then your items won’t end up where they belong and you’ll end up with a new mess of clutter, leaving you back at square one!

Benefits of Hiring a Professional Organizer

Organizers like Tara and Missy are problem solvers at the end of the day. Having that second set of eyes in your space to offer up creative solutions as well as someone else to hold you accountable is invaluable in the downsizing process. They can really spot what isn’t working and assess the best way to utilize a space for your specific lifestyle. Think of every cabinet and shelf as a space that needs to be individually designed so you’re getting the most out of it. Their job is to work with you to create a space that is functional, easy to maintain, and visually appealing. 

Developing Habits to Help Maintain Your Space

This all starts when you are first making over your pain point spaces! It’s important to make sure that everything has a home in a way that it fits and when we say “fits” we do not mean stuffed to the brim. Once everything has a dedicated space, even the little things like batteries, it becomes easier to manage a zone and clean up day to day. Many people look over the importance of labeling things, but what labeling does is it clearly defines what goes where so whether it’s your partner, children, or guests, they can find where things are or put things away. This will help involve everybody and control the chaos!

One of the last things to remember when it comes to maintaining your space is that you will have to reevaluate from time to time and continue to redo this process as your life and priorities change. There is no shame in accumulating more things or changing a set up that isn’t serving you anymore. Continue to revisit the NEAT method time and time again. These habits will give you more freedom in your space and make it continue to work for you. 

Missy and Tara’s Minimalist Beginner Reading List

7: An Experimental Mutiny Against Excess by Jen Hatmaker

The Minimalist Home: A Room-by-Room Guide to a Decluttered, Refocused Life by Joshua Becker

Essentialism: The Disciplined Pursuit of Less by Greg McKeown

Bonus: The Home Organized on Netflix

Are You Ready to get NEAT?

We hope the tips and insights Tara and Missy shared gave you the confidence that you don’t have to move in order to get a space that will work for you. Hopefully, it is encouraging to hear real life stories of downsizing and the NEAT method empowers you to transform your own home. If you would like to hear more details and tidbits from our incredible guests, definitely tune into the podcast. We would love to hear about your experience with downsizing and continue the conversation in our facebook group! 

Until next time,

Brianna & Keelie

How to Choose a Lender

Let's talk about lenders and mortgage rates! We come across many misconceptions when it comes to choosing a lender and getting the best rate. Unless you're purchasing a home with cash, your lender and your realtor work hand in hand while you pursue buying a home. A good lender can make the difference in getting your dream home or causing a nightmare scenario.

Choosing a lender is much more than the rate that you can get. While the rate does matter long term, it means absolutely nothing if you can't get a house short term and a lender plays a big role in actually securing and getting someone to accept the offer on the house. We want to make this process as smooth as possible for you, all while protecting your hard earned money and we’re going to talk about how to do just that!

MYTH: It’s good to compare your rate to others around you to get an idea of what is a good one for you.

FACT: Rates are not the same person to person, because there are a lot of different factors that go into determining your specific rate: credit score, debt to income ratio, the kind of mortgage, and loan type. There are a lot of different variables your lender will help you navigate.

MYTH: Big banks are obviously the best place and your best bet to go for a mortgage.

FACT: Big banks can be great, but they are notoriously slow and infamous for not closing on time in the real estate world. They're only open 9-5, Monday through Friday and there's not a lot of nimbleness where we need it when it comes to actually closing a house. So there are certain instances where it can make sense, but just because they're offering you a certain rate doesn’t outweigh the inconvenience. Due to that reputation of not being super nimble is exactly why a seller might look at it and compare it to the other offers that they have on the table and decide that this might not be worth the extra risk that they're going to take on. It may mean losing the house of your dreams.

MYTH: My lender and realtor play entirely independent roles in the home buying process.

FACT: There's a lot of communication between us and the lender that you don't see behind the scenes making sure that they have all their ducks in the row, because truly the majority of the contract period is the amount of time that your lender needs to get your mortgage created to get you underwritten, approved, and get everything across the finish line. So much rides on them having that all together.

What does rate shopping and comparing rates look like?

Rate shopping is when you're going to go look around and compare interest rates across various lenders. The majority of the rates you look at will be within the same ballpark with small variations. If there is a large variation in a rate it may be too good to be true and it’s good to approach it with a healthy amount of skepticism. One big mistake we see people make is that they talk to several different lenders on different days. It’s important to understand that the market changes daily, therefore rates change daily, especially being in a pandemic. We've had a lot of volatile situations, this happens frequently where worldwide events or market events end up changing the interest rate. With that being said, you want to make sure that you're comparing apples to apples, that if you're talking to lenders and getting a quote from them all on the very same day. 

Keep in mind that in most instances you're not going to be able to lock in your rate until you get under contract on a home. The rate that you get quoted that day is unlikely to be the rate that you actually end up paying, however it will give you a good indication of how their rates compare to others. Really, look at the big picture, mortgage rates for the last three years have been unbelievably low and are likely to stay that way generally for the next couple of years and beyond.

What else should I look for in a lender other than the rate?

A lot of that comes down to customer service and someone being competent at their job. You need someone that's going to be responsive, especially on nights and weekends, because that ends up being the time that we're most likely to place offers. We're going to need them to write us an approval letter specifically for you, specifically for that house. You're going to need someone who's going to be able to pick up your call and someone who's going to answer your questions quickly and effectively in a way that you understand. Having someone that you understand is especially important for first time buyers, because although a realtor can help you with some of that literacy, a lender is going to understand the nitty gritty of your financial situation. We're going to manage what you want to spend and they need to be on the ball in making sure that you understand everything that's expected of you to get that mortgage.

Next thing to keep in mind, checking rates and mortgages lender to lender is the big picture, but there are other fees and information you should check! It’s important to understand what are some of the standard fees that they charge, because they may vary slightly from lender to lender. There are also two interest rates, the base interest rate and another is going to be something known as APSA. That's the broader measure of the cost of the mortgage, It includes your interest rate, but it also includes all the other costs like broker fees, discount points, closing costs, and that's going to be expressed as a percentage of your loan. Instead of looking at this one, specifically charging me an underwriting fee that's less than the other, it's an easy way to compare percentage to percentage what people are charging just to take out the mortgage itself.

How does my lender affect my offer when purchasing a home?

In the current scenario that we're in, in  Dallas, Fort Worth and likely a lot of other markets it's extremely competitive, so a seller is able to choose from many different offers on their home. They're going to look closely not only at the purchase price, but they’re looking at the highest offer that can close. The seller needs to know that they're actually able to get that dollar amount and they can't put it all out on the line for a transaction that they don't think is going to close. It matters that the lender has a solid reputation of doing enough legwork up front that the people that they are bringing are vetted and qualified. If they say this person can purchase a home, we've got to be able to trust their word on that and some lenders are better than others at qualifying on the front end.

Will shopping for lenders have a negative impact on my credit score?

Although you should be particular about your credit when looking to buy a house, the good news is the credit bureau knows that you're likely to rate the shop. So you actually have a forty five day window from the first time one of the lenders pulls your credit to shop multiple lenders. The credit bureau basically gives you a forty five day grace period where any mortgage lender that pulls your credit is only going to count as one inquiry to your credit. Now, if you go open a new credit card, that's going to be its own inquiry. This is specific to shopping your mortgage rate. Obviously, after you do this shopping and you kind of get a general sense of your interest rate, please don't go buy a car on or anything else larger that will change your qualifications for a mortgage, because that will change the approval that's given by a lender.You want to be very aware of your financial picture and cautious when you're ready to buy a house.

When do I need to choose a lender?

Ideally, you need to understand what you're pre-approved for before you even go out and look at houses. A lender isn’t just inquiring about the amount of house that you could qualify for, but the amount you can afford monthly, your household budget, and if you can afford to buy a house! There are a lot of different people who will give you the same ballpark number that we can hit the ground running with, but when it comes time to make an offer it's going to make your life a lot more difficult if you don’t have one pinned down, because there are a lot of things that need to happen quickly as soon as we get under contract.

How do I know which lender is right for me?

Not all lenders are going to be the right fit for you and that's okay! There are plenty of lenders out there. You've got to have trust and confidence in this person and know that they're going to get the job done right for you. We want it to be a good fit for you, because your realtor and your lender are essentially co-workers to get the deal done and connected in what you need to get you to your end goal of getting a home.

Ask us about local lenders we trust!

We hope this helps you understand how to shop for your lender and choose the one that will be best for you. A good way to start that search is to ask for recommendations, feel free to reach out to us for some names of local DFW lenders that we trust.

For more mortgage and lender related information, go back and listen to Episode seven. Am I ready to buy a house? And Episode twenty The Hidden Costs of Buying a Home. It's our honor to support you as you make the largest financial decision of your life!

Until next time,

Brianna & Keelie

What to Look For in a Realtor When Buying a Home

Today we’re talking about choosing a realtor! We think it's vital to have great representation when buying a home. Many people rely on HGTV and Google to tell them what they need to know about realtors. When choosing an agent for buying, you’re looking for a slightly different skill set than when an agent is selling your home. Don't worry, we'll do a separate blog on what to look for in a listing agent.

Today, we’re going to discuss some realtor myths and 10 things to look for when shopping for a realtor. Your realtor can make or break your home buying experience, so use our tips to make sure you choose wisely! 

Realtor Myths

MYTH: It doesn't matter who your agent is, regardless, you're just going to figure this out, you're going to buy a house.

FACT: It absolutely matters. The right agent is going to be involved in every step of the transaction and likely far afterwards they’ll represent you. You have to be sure that you trust them and that they have your best interests in mind.

MYTH: It’s a sign of weakness when a realtor says, “I don’t know, but I’m going to find out for you.”

FACT: This happens all the time and the true test is how quickly they get back to you with answers and the resources they have access to to give you reliable information. 

MYTH: The longer they’ve been a realtor the more experience they have, therefore they are the best choice!

FACT: Someone may have held a license for ten years and sold a couple of homes. On the other hand they could be an agent for a year and have had a ton of experience in that time!

10 Things to Look For When Choosing a Realtor

1. Experience. This is more than just how many years they’ve been in the business. How many homes have they sold? Do they know the local market? Do they have an eye for potential issues in a property? What do they specialize in the kind of property you’re looking for? Did they come recommended? 

2. They know the local market. It would be a disservice to use someone that doesn’t have knowledge and connections within the area you’re looking to buy. 

3. Accessibility and availability. You want something with the availability to get there quickly! If it takes an hour and a half get a showing lined up for you, that means they’re going to be less agile in their schedule to be able to accommodate that showing. 

4. Find someone who specializes in the property type you’re in the market for. For example, that’s a ranch, condo, single family home, land, etc.

5. Trust and transparency. You want someone you can trust to manage and protect you during this huge financial investment. They should shoot you straight about what you can afford and the upfront/backend costs throughout the process.

6. Leadership. Your agent should be able to guide you through the whole process, the buying process from start to finish as a whole in entirety. A good agent absolutely knows the contract inside and out.

7. A good agent loves to negotiate. There are so many parts to the negotiation and the whole picture that are much more than just the dollar amount. They should want to win for you!

8. Being a great vendor connection resource. It’s important to find someone that has a network of people they trust and have a relationship with that they can refer you to: lenders, inspectors, general contractors, movers, etc. 

9. In sync communication styles. You want someone responsive with a communication style you jive with. There is a lot of anxiety in the home-buying process and having good communication with your realtor will alleviate a lot of that. 

10. They make you feel confident throughout the buying process. At the end of the day you want someone that’s a teammate in your investment. 

“How Do I Find a Realtor?”

Well, you might be asking, “These are great questions to ask an agent, but how do I even find one in the first place?” Referrals are the best way to get connected with an agent. Ask your friends, ask your family, ask around on social media. It's a great way to get connected, but definitely make sure to meet with them and ask questions, because this can be an extremely personal fit and you want to make sure that your expectations are aligned in the process.

Now, maybe you've gotten referred to two different agents, how do you choose between one? Really take a look at who would be the best fit based on the tips above, meet with them in person, and see which one’s answers and energy feels the best to you. A great agent is going to then get you connected with a reputable local lender who's going to get you pre-approved. After that, they’re going to ask you to work with one at a time. You're going to sign an exclusive representation document, basically saying that they owe you their advice and opinions. It’ll also specify that their fees are covered by the seller. Buyer's agents are free to you in the state of Texas, which is great news! 

Choose Your Realtor Wisely

At the end of the day, working exclusively with one excellent agent is going to yield the best results, as they're going to be your eyes and ears out in the marketplace and they're going to make sure that your needs get met. The steps are as follows: get an agent, get a lender, get pre-approved, and then you can go look at homes.

We hope this helps you choose the right realtor for you. We are passionate, as you can tell, about our role as agents and it would be an honor to help you or your loved ones buy a home. Find us on Instagram @Dallas.Haven if you have more questions about choosing the right agent! Head on over to WhereWeLivepodcast.com to continue the conversation in our Facebook group, listen to our podcast, and connect with us!

Until next time,

Brianna & Keelie

How to Win in Multiple Offers

Today we’re giving you our tips and tricks to win in a multiple offer situation. If you're a buyer this spring, multiple offers are commonplace and there aren't enough homes on the market to meet buyer demand.

Competing against other buyers to win a home will be a likely scenario. It's competitive! As realtors, we have some general tips that will help you be successful.

Know what you can afford.

You have to get pre-approved to avoid heartache in the home search process. In general, you need to know exactly what works for your budget in terms of monthly payment, not just total what you can qualify for, but how much you want to be paying on a monthly basis. You need to talk to a lender to be able to really wrap your head around that. Some of the things that can make you stand out here, if you're being put up against the other buyers in multiple offers situation is having a higher down payment. That is going to be attractive to a seller, because it shows you as a stronger financial suitor. So a conventional loan over an FHA, for example, is typically viewed by sellers as stronger financially due to the qualifications necessary for those kinds of loans. 

Keep in mind, a lot of lenders offer what's called pre-underwriting, which can be a really great tool here. A lot of people have them under different names, but it basically means they have done the hard work of really digging deep into your background, verifying everything, and taking it through their process. Sellers love to hear that, because it reduces major risk on their end. Lots of lots of the unknowns are already answered.

We want to wrap up the budget portion of this conversation by encouraging you to consider looking below the top of your budget so that you have more flexibility to flex your muscles and write an offer that is over. If we're looking at houses that are at the tip top of your budget, you're not going to have any room to write a super competitive offer. Really do your research on what is reasonable for your budget and what the market is like. 

For more insight on buying and selling at the same time check out Episode 32 for advice and Episode 36 to learn about a new program offered to individuals doing this. 

Be prepared to act fast. 

If you're touring a property, you should be prepared to make a fast decision, because in this market we do not have time. You need to be able to make a decision almost immediately, or at least that same day within a few hours, whether or not you want to move forward and write an offer on this property. So what that means is that you should be searching online with your agent and keeping your MLS portal updated so you can see the minute a home that fits your criteria goes on the market; your realtor will be your best teammate and partner here. They should be helping you find resources and letting you know what is normal for your budget.  A good realtor is one of your greatest assets when it comes to asking quickly.

What we’re seeing with houses that go on the market expecting multiple offers they give time for people to get in the house and then set a deadline. This gives you time to discuss with your agent and figure out what your best foot forward is and put forth your final and best offer. Typically, that's all within about 48 hours. So if the House goes on the market Friday, we're seeing deadlines of either Saturday evening or maybe Sunday afternoon. You really only have an opportunity to see that house one time. They'll set the offer deadline and expect that every offer they have is final and best. It really comes into being prepared, knowing what neighborhoods you want, knowing which schools are important, what are the must haves, what are the deal breakers, and which houses you're really willing to fight for. If you know what you’re looking for, when you do find it, you’ll be ready to win.

Know what will help you win in specific situations. 

Price is always going to be important. And so we are always going to look at the price. We're going to look at the comps for the house, what it's reasonably worth based on the market. But then there's also the conversation of what you're willing to pay for a house. Right. I always say I don't want you to overpay for a house without you knowing it. But in this market, there are a lot of people that are overpaying by choice because it's the right thing to do and prices are increasing like crazy in our area. And so those are just conversations that we should have with data, with knowledge and go into eyes wide open.

Your realtor should do a thorough job of researching the home and speaking with the agent. The more we know about the seller and about their specific situation, the better of an offer we can craft to their liking. At the end of the day it doesn’t just come down to price, the whole package matters. Don't underestimate a great realtor here, someone that's professional, someone who's quick and detailed with paperwork, someone who's kind and who is going to be good to work with you.Why that matters is if all of a sudden you're in a multiple offers situation. Where all four of your officers look generally the same, they're going to choose the one that looks like they're the most buttoned up and that's going to actually make the deal happen. So that's the reason that all of these factors really matter. 

Put in a good word for yourself. 

We recommend someone else putting a good word in for you, like a neighbor. They have a vested interest in who moves in there. Don't underestimate what may be the thing that gets your foot just past the finish line. And if there’s not a neighbor around to chat with you can always put in a good work for yourself by writing a love letter to the seller. If it's close enough, the seller may care a whole lot more about who's going to come live in this house that they have cared for for the past twenty years. We want to use every opportunity of leverage that we can, so we want to tell them how wonderful and amazing you are and see if we can pull at those heartstrings. It’s also important to note that it is no longer encouraged to put a photo of your family on that letter. We want to be careful from a discrimination standpoint and we're going to help you navigate that.

Keep in mind, if your offer isn't any good, your love letter doesn't matter. So it's absolutely helpful, but  we need to know that the brass tacks, the paperwork, and the money part of the situation is squared away. This is the entire package of what it means to present you as a buyer, to present you as a lender. We've talked about that a lot in previous posts, how lenders can kind of give you a leg up or not depending on their reputations.

Take advantage of the option period.

One last point that I will do is that we have something called the option period here in Texas, which is a negotiated amount of time. As soon as all parties sign the contract that you have the unrestricted right to walk away to terminate the contract for any reason. Typically, it's going to be 5-10 days on the shorter side, because of these multiple offer situations. I will say that that is one of the best tools that we have in a market when  you have to make a fast decision about something that is a huge choice. Our option period is also super cheap, it's typically $150-$250, that's all you would lose to get a few more days to really take a deep breath, evaluate the home, get some more information, get it inspected and see the home again. So you're always going to want to hold it loosely during the option period anyways in case there are things that you need to walk away from, but use the option period to your advantage. 

We’re here to help you!

It's an honor to get to help buyers each and every day find their dream home, with these tips, you will reduce buyer's remorse, but go into your home search prepared and ready to win when you find the perfect home. If you're looking for a home this spring and need a great realtor on your side, please reach out. If you're selling a home in this market, go back and listen to Episode 20 where we give you all of our tips on how to drum up multiple offers. 

We want to hear which topics interest you most for our upcoming posts, head on over to WhereWeLivepodcast.com to continue the conversation in our Facebook group, listen to our podcast, and connect with us.

Until next time,

Keelie & Brianna

Home Renovations with Edwin Alexandro of Alexandro Design Group

Everyone has at least one design flaw in their home, a design choice that the previous homeowner thought was chic, but makes you cringe every time you see it. We interviewed a local designer and contractor to answer our clients’ top asked questions! We don't know about you, but we find a world of renovations and upgrading your home to be intimidating. We often have more questions than answers about these projects and are very excited to have an expert in the field to give some insight from what to look for when hiring a contractor to renovation red flags.

Today we’re getting advice from Edwin Alexandro, who specializes in niche renovations from kitchens to bathrooms, and everything in between. He’s been in the construction world from infancy as his father served south Texas as a master craftsman. Edwin has degrees in Interior Design and Architectural Drafting from the Art Institute of Houston and approaches each project as a creative artist with an eye for perfection. We feel as though he’s an awesome resource for our Where We Live community! Let’s get right into it…

Edwin’s Role(s) in the Renovation Process

“I wear a multitude of hats! After doing a client consultation we start the architectural planning and from there I put together a detailed quote so they can narrow down what is important to them and their budget. From that point on, I put on my construction hat and it moves into the actual development aspect where we go through the permitting process and then we'll kind of break ground. After that we'll start the production after we go through the planning process. Typically, what my day in, day out looks like is I'll be on the job site with my trades and sometimes we just have to be creative on the field. There's going to be some things that we're just not able to see before we get into the production. There may be like a gas line hidden in the wall or some dedicated circuits in the attic that might need to be relocated that we didn't know were there until we pulled off the drywall. 

Typically for me, I'll be on the field and I'll be making calls as we go and as the project unfolds. If I'm not troubleshooting in the field with my subcontractors I’m drafting for another client, visiting vendors, picking out finished materials, or speaking with other vendors as production is unfolding.”

What should you look for when interviewing and selecting a contractor?

“The best way to vet a contractor is, one, have them give you a reference list. Give you some phone numbers so that you can call some previous clients they’ve worked with so that you can find out what their process looks like. Were they on time? Did they stick with the budget? Were there any surprises? Did you communicate well? These are all very important factors.

Secondly, you want to know what their process looks like ahead of time. What is/isn’t included in their quote? For example if they give you a quote for a bathroom renovation, is the tile, plumbing, and countertop included in that? That is a very important thing to ask and a seasoned contractor is going to be able to answer those questions for you.”

What do you wish people knew about hiring a professional to help with their home renovation project?

“Everyone's going to have a different vision. What you want is to find someone that's going to bring out the design that you're looking for. You don't want an interior designer or an architect that's going to come to you and try to sell you on what their vision is. What I personally love doing with my clients is collaborating with them! I want them to feel involved in the process of bringing their space to life.

It shouldn't be like if you go on to their website, that every project that they take on is exactly the same, because that makes them more of a salesman than someone that’s going to elevate and execute your vision.”

What are some important things to look for when shopping for a contractor?

“Transparency is key. You want to make sure that this contractor isn’t afraid to tell you, “Hey, that's not realistic.” And if it's not realistic, here are some options to solve your budget concerns. That helps some clients just realize, what is/isn’t possible and why the planning process is so vital.

Once you get a thorough quote that reflects everything that is on your list of plans, you'll be able to collaborate with your contractor, your interior designer, on how to eliminate some wish list items that you don't need. And it'll also help you focus on the things that you do need, like those higher impact investments that you're looking for on your production. You can get through the process of elimination and just get rid of all the items that really don't matter, don't make that much of a difference.”

What should people be wary of when working with a contractor?

“If the contractor comes back with, ‘Hey, it's going to be $45,000 to renovate your bathroom,’ in one lump sum, be wary of that. You want to know what you're getting and you want full transparency of what's costing what, because you want to have the option to eliminate some things that you do not need. If the contract is coming back with one large lump sum number and everything is not broken down for you, I would caution you on proceeding with that contractor, because you're going to get some surprises.”

Big thanks to Edwin for sharing his expertise with us!

We hope this conversation gave you confidence to begin to tackle some projects that are far beyond your DIY abilities. For more information on what mistakes you should avoid while making home improvements, go back and listen to our thoughts in Episode 4 of the Where We Live Podcast. Thank you, again, to Edwin for giving us some valuable insight when it comes to hiring and working with contractors!

Until next time!

Keelie + Brianna

How to Succeed in the Spring Market

We're prepping potential buyers and sellers for the spring market! Traditionally, spring is the time when residential real estate gets busy, and the more you know, the better prepared you will be for a successful process. While this year we'll look a little different than years past, a lot of this information is true. Each and every year we will set expectations for buyers, sellers, and those trying to both at the same time. Let's prepare for the market conditions that are just around the corner!

What Does the 2021 Spring 2021 Housing Market Look Like?

Spring in general tends to be very popular because it allows people to buy or sell and move at the end of a school year. That tends to be our most popular season for people to move at that season.Residential real estate often is impacted by the school year. Another reason spring is so popular is due to it being past the holidays and it not being a popular time to vacation. spring is past the holidays. It's not as popular a time to vacation. People are really focused on real estate and making sure that they get to the next place that they want to be.

With residential real estate, it's really all about supply and demand. There tends to be a lot more houses on the market, because a lot of people are looking to move; however that means there are a lot more buyers out there as well. Ultimately. you get more selection with more houses on the market, but you are pretty much guaranteed to have more competition. We expect that this year is going to be really similar to other years in that we have extremely low inventory right now, but a rise in inventory as the vaccine rolls out and consumers get more comfortable selling their homes. However, we still anticipate that inventory is going to be pretty tight this spring versus springs' in the past. 

How To Prepare for buying a home during the spring 

1. Prepare for competition. This is a seller's market, so multiple offers are pretty standard.

2. Get pre-approved. Talk to a lender and have a clear picture of your finances.

3. Know your budget. Take into account what you want to pay monthly.

4. Consider homes under your budget. This will give you room to flex up during bidding wars.

5. Do your house homework. Check zillow, go to open houses, walk around neighborhoods, and get an IN PERSON feel for what you desire in a home.

6. Have clear criteria. Talk to your spouse about what you want, your non-negotiables, and look at homes within your desired school district.

7. Have a clear timeline. Consider your lease, if you’ll have to pay multiple mortgages, and how quickly you can feasibly/financially move.

8. Guard your heart. You need to be prepared to fall into the process quickly, but really guard your heart and not fall in love with the house until you're close to closing. You need to like the house enough to get under contract, but there are several hurdles in the process that you're going to need to get through.

Speak to Your Realtor

We suggest having a very frank conversation with your realtor and ask them, “Do you expect that with the search criteria that I have, am I going to be in a competitive situation?” Having that conversation with your realtor will help you understand what an offer realistically is going to look like so that you're prepared. This will give you an idea of how much you will have to offer based on the home's listing price and what a winning offer would look like. We're not going to dive into all the details of what that looks like in this blog, because we think that's an entirely separate one. We want to just touch base and let you know that that's a whole other topic and it's something you can do to prepare yourself so that you're ready to go. Follow your realtor's guidance and advice when you're writing an offer!

How-To Prepare For Selling a Home During the Spring

1. Get in touch with your realtor. They’re going to be a huge advocate in making sure that you get your home sold on your preferred timeline.

2. Start prepping your home NOW. Your realtor can give a consultation on what would be the best return on your investment i.e. staging, repainting, fixing your roof.

3. Book contractors/tradespeople ASAP. Spring is a really busy season for them so get them on the books ahead of time, otherwise this could impact your timeline moving forward.

4. Establish the value of your home. Work with your agent to understand the range your house would sell at today and get a handle on the value of your home in today's market.

5. Be financially aware. Things to factor into your budget: light updates, closing costs, warranty title, policy repairs, and paying off your mortgage. Ask your realtor for a net sheet so you don’t have any surprises!

6. Have realistic selling expectations. There’s a misperception that your house will sell for 20 thousand dollars more, because there are more sellers. While it may be true that because demand is typically increased in the spring, you may see a higher return than other times of the year; it is not a guarantee.

Trying to Buy AND Sell During the Spring

If you’re going to be a seller and a buyer, don’t be overwhelmed! This is very common and doable, with a lot of different options depending on your timing and financial picture. We have an entire blog going into the specifics and nitty gritty about how to buy and sell a home at the same time that you can find here. With that being said, there's one specific option that we want to share with you that we didn’t go into depth on in that blog. The one thing that we really want to address here is how do you get the funds to buy and sell? A lot of people’s fears are finding a house and not being able to act quickly enough. People want to make sure that they get the right next house and that they aren’t left homeless, because they had to sell their house and they couldn't find the next house quick enough or vice versa. They sold their house and now they have to buy a house that they're not really happy with.

We are super excited because we have exclusive access to a program that allows you to use the equity that's in your current home so you don't have to have extra liquid funds available for a down payment, get to use the equity in your current home to choose your next home, purchase it, move into it, and then sell your house so you don't have to have the extra funds. You don't have to be homeless and you get to choose the exact home that you want. You don't have to let people through your house and have the hassle of showings while you're living in your house. You're beating out all of that. On top of that, there's an option to get funds through them to spruce up the home that you're selling to make sure that you're going to get top dollar. This program will lend the funds to pay the mortgage on your existing home for up to six months until it sells so you're not stuck with that dreaded double mortgage.

We just want you to know that there are options out there. If you're really thinking about that, stressing about that, have a conversation with us. We'd love to talk to you about how to make this work in a way that really works for your specific situation as realtors.

We’re Here to Help!

We love the spring, even though it can be a crazy time for us. We always want your real estate experience to be as smooth as possible. So follow these tips to avoid headaches in the near term. For those of you looking for a great spring market experience, some of our other episodes will help you in even more detail. For our first time homebuyers Episode 7 answers the question, “Am I ready to buy a house?” And if you're selling your home and moving to your next one, don't forget to listen to this episode!

That wraps up this Where We Live blog about the spring market! We want to hear which topics interest you. Head on over to WhereWeLivepodcast.com to continue the conversation in our Facebook group, read more blog posts, listen to our podcast, and connect with us!

Until next time,

Keelie & Brianna

Homestead Exemptions: What You Need to Know

Today we’re going to cover what you need to know about the homestead exemption here in Texas. The homestead exemption can save you a lot of money in property taxes on your primary residence. If you haven't heard this term before or aren't clear on how it applies to you, listen up!

We know the word taxes sends everyone running for cover, but this doesn't need to be complicated or scary. While our primary job as realtors is to help families buy or sell homes, we are here for the long haul to make homeownership as smooth as possible. To us, the homestead exemption is a no brainer way to save a lot of money. 

Homestead Exemption Qualifiers

We first want to disclose that we are not experts nor property tax experts; we are simply realtors. Each resident can qualify for an exemption in their home's value for school taxes, that amount depends on the city, county, and local government tax laws.

Qualifiers:

1. Only applies to your primary residence as of January 1st.

2. If you bought a house last year you are just now eligible.

3. If you buy a house after January 1st you have to wait till the next calendar year to file.

4. You need to file it by April 30th of this tax year.

5. It needs to be your residential home, it cannot be owned by a corporation.

6. The address must be reflected on your driver's license (you can change this online once you’ve moved).

We are simplifying the terms and each county has a little bit of different details and rules and different processes. There are a couple of different specific exemptions as well, so if you're older than 65, have a disability or you're a veteran, make sure that you're looking out for additional exemptions that apply to you.

Your Home’s Valuation

Let's talk a little bit about how the homestead exemption is valued. It actually lowers your home's valuation in the eyes of your county. In the eyes of the state and appraisal district, the amount that you're being taxed on is lower, because your county assesses your home, assigns an appraisal value, and that is what they determine your taxes off of. Now, that is not the same as the value that your home would be to the open market and it may not even reflect what you most recently sold your home for. The county has their own system that determines the value of the homes and the reason that that's different is, because they can't see inside homes. They're not assessing the quality of the finishes and things that are inside. All that the tax district can see is what your home most recently sold for and what permits you've pulled to upgrade the home.

Typically, your value to the tax appraisal district on your house is going to be less than what you paid for it and what it would sell for on the open market. Normally, we wouldn't want to devalue our home, but in the eyes of the appraisal district, we want to keep that as low as possible since that's what we're getting taxed on. Tax appraisal in the eyes of a tax district is very different from the appraised value that we would use in a property sale when we're going to sell your home on the open market. Now, let’s get into how that appraisal comes to play for your homestead exemption.

Example:

$100,000 tax appraised home and you qualify for $25,000 tax exemption. Now you will only be charged school taxes on $75,000. It’s not $25,000 in savings, but you aren’t paying taxes on that portion. 

It’s likely to be a significant amount, which is why we’re telling you about it now and why it’s worth your time! You should be filing for your homestead exemption between January 1st and April 30th, the year after you purchased your home. It’s absolutely free to file your homestead exemption and you file it with your appraisal district for your county on their website. For those of you that are in DFW, go to WhereWeLivePodcast.com to download our free one pager with easy info on how to file in DFW.

PSA: Beware of Scams!

Unfortunately, we all know that there are scams out there, people looking to make a dime everywhere. After you buy a home, you will get some very official looking junk mail and there will be people trying to sell you ways to file for your homestead exemption. You will never have to pay a dime to file for your homestead exemption, so if you get a letter in the mail asking for any amount of money it’s a scam. Do not pay attention to it and do not definitely don't give them your money.

Grace Period

Now, if you found this a year after you've purchased your home or on May 1st of the year after you purchased your home, don't worry! If you forget to file, there actually is a two year grace period. Definitely check into the local laws in your county of how to do that, if they'll credit you back, etc. The good news is once you apply, you do not have to reapply. As long as you fit the basic requirements and you've filed correctly you won't have to do that again until you decide to move.

If you guys buy a home with us, don't worry, we always remind you when it's time to file your homestead. If you're not in Dallas, set yourself a reminder for the calendar year after you buy a home!

Go ahead and save some money!

Congratulations to all of you who bought a home this past year. Go ahead and save some dollars on that property tax money! Filing a homestead exemption is very easy and it's worth your time to save major money on your property taxes. Again, if you're in DFW, don't forget to go to WhereWeLivePodcast.com to download our free one pager on how to file in our local counties. We are here to help no matter what stage of homeownership you're in. If you have additional questions you would like us to answer in the future, drop us a note in the Where We Live Facebook group.

We hope you learned something with us today and helped you save some money!  Head on over to WhereWeLivePodcast.com to continue the conversation in our Facebook group, listen to our podcast, and connect with us.

Until next time,

Brianna & Keelie

2021 Real Estate Market Predictions

Today we’re going to go over our residential real estate outlook for 2021, whether you're a current homeowner or looking to buy or sell a home this year, we've got something for you!

We don't have a crystal ball, but we have hard earned experience and love to keep a pulse on market trends. Today we will be discussing market predictions for 2021, what trends we see in home buying this year, and even how our new president relates to real estate. Our goal is to give you the information that we do have at this point, so let's dive in…

What We Know:

• The Fed has indicated that rates are going to continue to remain low, meaning that it is still really cheap to get a mortgage this year. In simple terms it means that the interest rate to borrow money is super low, so it's just not as expensive to get a mortgage. Meaning you can get a more expensive house for kind of the same price that you would if your mortgage rate was a little higher.

• A market indicator that is rolling over from 2020 into 2021 is low inventory. The amount of inventory on the market can really affect home prices, how competitive it is to get a home, and how much money you can get for your home as a seller. 

• You weren't allowed to be evicted if you were delinquent in 2020 so it was anticipated that would end in 2021 and as a result more homes would be hitting the market. Now with the Biden administration, it is likely that those are going to be extended kind of the moratorium on evictions in the ongoing pandemic. We're going to watch what the administration can do and what they will do in terms of policies that will affect inventory and particularly those related to evictions.

• It's possible that there will be a fifteen thousand dollar tax credit for first time homebuyers, under the Biden administration. That could give a real boost to the market and help a lot of people be able to afford getting into homes that they haven't been able to because prices have skyrocketed.

• Across the nation, we're still seeing a seller's market. This means that there are more buyers out there than there are homes available. So this just makes it a great time for you to sell you. It means you can sell more quickly and you can sell for a higher dollar amount.

What We Think:

• As the vaccine rolls out people will gain more confidence in getting back out in the world, selling their homes, and moving. Which again, would result in more inventory!

• A lot of decisions around home buying and selling this year is going to be job based. There was a lot of uncertainty around jobs in 2020 and coming into 2021 people are gaining more clarity on what their work life is going to be like. They may want more space now that they’re working from home or they may want to move state since a commute isn’t a factor anymore.

• It will be important to keep an eye on your local government and capital gains tax changes! This could make more people want to invest in real estate opposed to other entities. 

Exurb Moves

People seem to be moving for one of three reasons: space, family, and jobs. A lot of people are moving out to suburbs and a new term for us is “exurbs”, which means the smaller towns that are on the fringe of even the suburbs that are maybe even more rural exurbs. Lots of people are fleeing the city.

Most people are wanting more space of some sort. Even for our condo buyers, making sure that you have a balcony or somewhere that you can just go outside, that is your own space. And for a single family, a place to host people in a more safe way has become a huge priority. Due to the inability to travel we’re really seeing people more to be close to their families. We’re even seeing family based moves stemming from wanting to move to districts where their children can physically attend school. 

Homebuyer Wishlist

One big thing we see homebuyers looking for is a home office, sometimes even two! It's been so interesting to see home offices advertised on a listing and to be shown as, “Hey, two home offices!” Even homebuilders are reimagining offices and not just one versus two, but the location that they are in the house, maybe putting them more toward the back of the house where people can really put their head down in their full time workstation. It's been interesting to see that evolve!

Another thing we've seen a ton is that the  demand for pools is up like crazy. A lot of people used to feel like they were like a ton of work and not worth the effort. With being at home in 2020 people really came to love their pools, valuing having a little oasis, and an outdoor space to entertain guests. Especially not knowing when public pools and spaces like that will be available again has really made it a priority for some buyers. 

Re-evaluating for 2021

Overall, we see people just reevaluating their home and making choices to make their house work for them better. They are seeing where their home is lacking and choosing to move to a home that is more efficient in those areas; whether it be the pool, to be closer to family, have an in home office space, or a better outdoor space. People are reevaluating due to 2020 forcing us to be more homebody focused and we're using our homes differently than we have in the past. We never could have predicted 2020, and we're all curious to see what 2021 will hold for the real estate market.

We hope this helps you wherever you are on your homeownership journey!

Until next time,

Brianna & Keelie

Protecting Your Investment: Home Insurance vs Home Warranties

Today, we’re discussing how to be prepared for what might happen. If you’re brand new to home ownership or just considering dipping your toe in the water, you’re aware that things can (and do) go wrong. While we hope that this doesn’t happen to you, acts of God are out of your control. Hail, robbery, flood; the list is long!

As a new homeowner, you are a target of marketing for countless products and policies advertised to protect you. What is the difference between home insurance and a home warranty? What’s the best way to protect against the unknown?

What Is Home Insurance?

Home insurance covers you in the event of an accident or a disaster. It fixes the damage to your house, to your yard, to other structures and your personal property inside of the house. It really protects you against things that are absolutely out of your control and/or going to be a big out of pocket expense. Most common things that we see here are hail and flood.

Other examples beyond mother nature would be burglary. Home burglary insurance will help you out in that arena. Also, if you have a guest over at your house and they trip on the stairs, they get injured, and they now have medical bills - It could help out in that situation too, since it happened on your property, in your house.

A ton of companies offer home insurance policies, larger ones like State Farm and Allstate as well as local companies. You have the freedom to shop around on home insurance and it is required if you have a mortgage. Your lender requires you to have home insurance, because they want to protect their investment in lending you the money to actually buy that house.

Cost Breakdown

For your insurance policy, you pay an annual fee and it's likely that if you have an escrow set up, it feels like it's monthly to you, but it's actually paid once a year. If you need to make a claim, you just pay the minimum deductible and then your insurance policy helps cover the rest of the expenses. You can shop every single year for the best coverage for you and then you need to have money set away for that deductible as well in the case that an event happens. Luckily, instead of having to set aside $20,000 for a new roof, it might only be $1,000- $5,000. It can really help you in terms of cash flow, budgeting, and protecting you from having to spend a ton out of pocket unexpectedly.

Claims Process

Let's use the roof issue as an example, because that is definitely one of the most common scenarios that we see in north Texas. We're going to walk you step by step through how that claims process would actually work. 

Damage Occurs -

The shingles are there to protect  and shed water away from your house. As the shingles deteriorate, they are less and less likely able to do that job. A leak occurs so the homeowners then call the insurance company they chose and now hold a policy with. They file a claim and say, “Hey, we had hail damage. I need somebody to come out and take a look at my roof and see if insurance would cover the cost of a new roof.”

Adjuster Assessment -

They then have what's called an adjuster come out. The adjuster works for the insurance company, they assess the damage to see if it's a valid claim and if it's something that the insurance company should cover. If they say the claim is approved, you would pay your deductible and they would complete the roof work and basically cover any of the cost above what your deductible was.

The Deductible - 

What we most commonly see with roof deductibles is a range from 1% to 4%, and that's a percentage of the value of your policy. So if you have a $400,000 home, a 1% policy means you're going to pay $4,000 deductible to have your roof replaced entirely. If you have a 4%t deductible, your deductible is going to cost $16,000 on that $400,000 home, which is a very large and substantial difference. You do have to pay something, but paying $4,000 for a brand new roof is well worth the investment.

Just to reiterate, home insurance is required if you have a mortgage. If you do not maintain home insurance, your lender is going to put a policy in place for you and you are not going to like it because it's going to be expensive. They have a luxury taste in home insurance, because they're not paying for it.

Home Insurance Shopping Musts!

We're going to give you some tips on important things to look for when shopping; We advise buyers a lot on this as they are looking for homes and assessing what insurance policies they need. 

#1 Be aware if you are in an area where you're going to require or would want special insurance. For example, in California you can add on a policy in case of an earthquake. Sometimes lenders will require you to have such things, some of them they will not. You just have to assess your risk tolerance, your financial situation, and whether that's worth paying for those kinds of policies for you and for your specific home.

#2 We want you to not only look at how much this policy cost, but also the deductible. Oftentimes the least expensive policy has the largest deductible. We are advising that you pay special attention to the deductible in the event that you need to replace your roof, because chances are fairly high that you will need to use that and pay that deductible. Compare that along with what is how much the policy costs? What's the actual annual payment? A cheap policy might look really attractive in the short term, but if they don't actually pay for what they need to do in the long term, it may be a lot more expensive for you.

#3 We want to know who will actually pay out in the event of an issue and I would say that the best way to figure this out is just word of mouth. Who do you know that has a policy with a certain company, ask them their experience or look up reviews! Chances are that your local community has plenty of insurance brokers who help you shop those policies. They can kind of compare everything side by side. We have a great one we're always happy to connect you with, so you don't have to do all of that individual searching yourself!

#4 You want to understand what the claims process is like and really who you can communicate with when you have an issue. There are a lot of companies, especially recently, that are going online only - they don't even have service representatives. The claims process is completely online and you are at the mercy of how they move that process along. There's no one whose office you can walk into and say “what's the status” or a phone number you can call and ask the questions that you need to. Be aware of those cheaper options where it's all online, you don't have an actual agent that's there to represent you, Whereas, a good agent will tell you whether a claim is even worth filing because it may not be in your best interest to file a claim for something. We see a ton of value in having an actual local agent that can just give you more guidance.

#5 When you're comparing to make sure that you have enough personal property coverage, you can include things like your wedding ring or some expensive piece that you have in your home. You don't have to have your homeowner's policy and your car policy through the same company, but you can and oftentimes there's opportunities to bundle those together and save a little bit of money.

The World of Home Warranties

We're going to talk about home warranty now in detail. Which, in contrast, is an optional policy that protects your budget more than it really protects your home. It covers the major systems and appliances from normal wear and tear, but it really protects you from big expenses all at once. Home warranty is typically a one year at a time policy and you can continue to keep it on, but it's one year at a time so you could shop it each year as you do your home insurance. 

It's a policy that protects the major systems and appliances in your home. An average policy is going to cost you $500 hundred bucks a year, depending on kind of what you include.  How you use a home warranty is, if you had a leak under your sink, you can call to tell them the issue, they're going to come out to fix it, and what you pay for is the service call. Your dishwasher goes out or your refrigerator goes out, if those are covered and they come out and service those items.

It’s common that this is part of a real estate transaction here in Texas, where the seller would pay for a home warranty of the buyer's choosing up to a certain amount. You have complete freedom to choose and if you want to buy a more expensive policy, you just pay the difference from what was written in the contract to the policy that you chose. It's a one year policy and the thought behind this is that it helps so that you don't have some large, unexpected expense right after closing. This will protect you.

Warranty Woes

Here’s the deal, home warranties have a really bad reputation for actually paying out. It really matters when you're shopping what policy that you choose and which company you choose. We are partial to more local home warranties where there are people that we can physically get a hold of. We completely can see the value of a home warranty, especially the first year that you own a home if you don't have good savings and an emergency fund. For every homeowner we recommend that you have an emergency fund or an unplanned expenses fund, because there are going to be things that go wrong that you just don't foresee. It's good to have $5,000 in a little savings account so you have a buffer. A home warranty can really help with your budget in that as you attempt to build up that emergency fund that first year, all you have to pay is your service call.

In conclusion:

We really hope that you walk away from this article with greater clarity on what function insurance serves and how a home warranty could supplement that while one is generally required, the other can assist if you don't have emergency savings or just don't want an unexpected expense right after closing.

If you guys have any further questions, please shoot us a note in the Where We Live Facebook group. We love to connect with you all over there so come join us! If you're a current homeowner and want to know more about how to keep your home in the best shape it can be signed up for our monthly home maintenance checklist at WhereWeLivepodcast.com.

Brianna & Keelie