​COVID & buying or selling...
Home Buyer & Seller Education & Classes


Please remember that, currently, ALL BUYER & SELLER classes are being held virtually. We look forward to teaching at the community centers again, once they open.

For the virtual classes, they are TWO hours long, and will start at the scheduled starting time. Please email traciedemars@aol.com for link & password

Upcoming Home BUYER Classes

Saturday, August 8, from 10am-12pm (ish)
Saturday, August 15, from 11am-1pm (ish)
Saturday, August 22nd, from 12pm-2pm (ish)
Monday, August 24th, from 5pm - 7pm (ish)
Saturday, August 29th, from 10am - 12pm (ish)

Upcoming Home SELLER Classes
Saturday, August 8th, from 12:30-2:30pm
Saturday, August 22nd, from 9am-11am
Thursday, August 27th, from 5:30pm-7:30pm

Happy August!

I have to admit.. I am sad today. Today is the day before the Clark County Fair would have started. Today I should be at the fairgrounds setting up our booth and getting ready for the fair to start tomorrow morning. We are at the fair every year, and as exhausting as it is, it is also fun, exciting...and honestly... I absolutely love it when our friends, family, clients (both past, present, and future) come and visit us. I love seeing everyone and visiting with them. I also love being able to give little gifts to everyone. I am also looking at the projected weather forecast for the next week, and honestly, I am crying a bit as it is really a PERFECT fair forecast.....of course it is, right? Remember how at the beginning of this year we were so excited? All the holidays that were going to fall on the weekends? 4th of July on a Saturday? Rock on! Halloween on a Saturday AND with a Full Moon? AWESOME! Christmas? New Years? On Saturdays? Score!! It's like the stars all lined up for a perfect year....and well, it's like that piece of cake you are so excited to come home to eat, and that you have been thinking about ALL day...and you come home, and it is GONE!!! Someone else ate it!! You know what I mean...right? That is what 2020 feels like to me... crazy.. but here we are.

HEADS UP, if you are a CLIENT, please check your mail boxes! We couldn't do a Client Appreciation this spring, but there is something in your mailbox that should be a little fun. We are also trying to plan something for the end of summer... we will see how that shakes out... stay tuned!

This month I am going to talk about showing a home and a few of those 'hidden' fees that people don't think about. Whether you are thinking about selling (because it is definitely a sellers market), or you are buying a home... how does that work right now with COVID and everything else going on? Well, hopefully, this should help. As always...feel free to reach out with any questions! Thank you!!

While showing homes, we go over lots of 'little' things that otherwise people don't think about. Some of these items are the 'hidden' costs of buying a home....those things that you weren't planning on, but probably should be. Not too long ago, I was on one of the facebook swap/free/sale sites, and I was reading how some people were upset with the home buying process and the 'hidden' fees they weren't told about. It is true that there are a LOT of fees and other expenses involved with buying a home. The point of these blogs, and of course, the home buyer classes is to give folks this information. There shouldn't be anything 'hidden' about the home buying process. As you know, I am a big fan of not sugarcoating anything....I believe that an ugly truth is better than a pretty lie every day of the week. You might not always like what I have to say (and that is ok), but I am not going to hold anything back from you on the off chance you might not ask me to help you buy, or sell, your home. Personally I don't just want to hear about the 'good' things about a loan, or process....I want to hear it all...the good, the bad, and the ugly, so that I can make the best decision for me and my family based on the pros and the cons....not just the good. So....yes, I am not going to just agree with what you read on the internet, or saw on HGTV, or heard from your direct and personal circle....I am going to give you the pros and cons because this is YOUR home buying (or selling) adventure, and YOU need to make the decisions. My job is to help you find, and have, all the information I can get you so that you can make those choices based on a full picture....not just half of one. Last month we talked about the 'basic' fees of earnest money, home inspection (including the possibility of radon & sewer scope), and appraisal. However there are a few other 'fees' that you might want to think about.

Other fees?

Changing out locks
...I always advise my clients to change out the locks of their new homes. Why? Well, even if the sellers give you all the keys they have...there is not guarantee that there isn't more keys running around somewhere. I used to change out my house locks every couple of years because my kids were always losing keys. Finally....last year... I went and purchased the the house locks that have the key pad. It is awesome!! I don't worry about lost keys anymore. Every family member has a code, and what is the best is that I can add and delete codes as needed. So...go away for a couple of days, and have a house sitter? Give them a code,and when you get back you simply delete the code. I tell you....worth it!

Mailbox key
...yes, legally you are not supposed to copy the mailbox key, but a lot of people do. Mail is not something you want to mess with. Take your HUD form down to the post office, and have them re-key the box, and get a new key. Cost is about $100, but for peace of mind...that isn't much. When you are changing out locks, talk with the locksmith... she/he may be able to help with this as well.

Paint
...you will probably want to paint some, or all, the rooms of your new home. Each gallon of paint runs about $25. Paint is the easiest thing you can do to make the home 'yours', and it's fun! Paint can change the entire feel of a room, or home. Personally, I am a fan of semi-gloss. I like the shine to it, and most importantly, it cleans up easy....with kids and big dogs, this is my go-to.

Minor repairs
...during the home inspection the inspector will probably point out repairs that the home may need. Some of these repairs may be cosmetic repairs that will be part of your 'honey-do list' with your new home. Remember that, at the home inspection, we are looking for any repairs that will affect the safety of the home, or occupants...or anything that may need a contractor to repair. The 'big' areas that we usually see repairs for are roofs, attic spaces, crawlspaces, and siding. These are the places that usually get called out during the repair process for a licensed contractor to come in Remember that home inspectors are licensed for home inspections. It is during this period that we will request a second opinion by a licensed contractor...who can give a better, more thorough inspection/repair for the item that the inspector called out. All homes have some repairs that will need to be done by the (new) homeowner....it is part of being a homeowner. Don't forget that the worst thing a homeowner can do is to defer maintenance. If you need help with that, give me a call or email... I always have a 'guy' that you can call for help. Anytime you need work done around the home that you can't do, give me a holler...I know people. I tease, but it is true. I know excellent contractors that will usually give you a better deal because I refer them out. I refer them out because they do a good job...and give better deals. Just like in Real Estate... referrals are the name of the game. :-)

Lawn supplies
...did you come from an apartment? Well, most likely now you have a yard. You will need a lawnmower to start with. There will be other lawn equipment that will follow...weed eaters, trimmers, wheel barrels, shovels, and a myriad other things that come with having a yard.

Appliances
...don't forget that washer, dryer, and fridges don't come with the home. If you don't already have these appliances then you may also be purchasing a washer, dryer, and/or a fridge. Just please, please, please wait until AFTER you get keys for the home before you go purchase these things.

Curtains/Blinds
...if your new home doesn't already have some then this may be on your 'to buy' list. Sometimes even if your home does have some, you may want new ones. Honestly, I have had very good luck with curtains at places like Target, or Fred Meyer, or even Wal-Mart. I think I've gotten all my curtains from Target. They have blinds as well.

House Cleaner/Carpet Cleaner
...when a home is vacant you know exactly what you're going to be walking into when your buyers agent (hopefully me LOL) gives you keys, but... when the home is owner occupied, you don't. Yes, you can and will do a walk thru of the home before closing, but it will still be occupied. In many cases, when the home is owner occupied the (soon to be) previous owner doesn't vacate the property until day of closing, or sometimes even a couple of days after closing. With cases like this, you really don't know what condition the home will be upon closing. We have to have faith that the (soon to be) previous owner will leave the home in a clean condition, but sometimes...well, sometimes, they don't. Also, one persons idea of clean is not another persons idea of 'clean'. :-) Many times, whether the home is vacant or owner occupied, a buyer will book a professional carpet cleaning, or house cleaning after closing....simply for peace of mind.

Insurance
...wait..you already have insurance, don't you? Well...yes, you have mortgage insurance, title insurance, and homeowners insurance, but what about earthquake insurance? You don't...
When I purchased my home my homeowners insurance included earthquake insurance. About 10 years ago though we received a letter that no longer would homeowners insurance include earthquake insurance....why? Because we live in the #1 high danger area for earthquakes. Because of that earthquake insurance must now be purchased separately. So, AFTER you buy your home, call your insurance company and add on earthquake insurance. Cost isn't too much, but it is important....just in case.

Toilet Seats
Yeah, I know you probably didn't think of that, but really....if it were me, I would change out the toilet seats when you buy your new home. Why? Well, since now you are thinking about it....I'm sure you can see why. LOL Toilet seats are not expensive, and really...having new seats just makes you feel better! :-D


As we've talked about, once you hire a Realtor to help you with your home adventure, you are ready for the 'fun' part.....LOOKING AT HOMES! :-) This is always an exciting time for buyers, and it should be! Every home you pull up to has the possibility to be 'the one'....The one you make an offer on, the one that you buy, the ONE that becomes YOUR HOME...and it is very exciting. For the sellers though, it is very stressful because currently it is THEIR home, and they're leaving so that strangers can come in. As a Realtor, we are trying to make this as easy as possible for both the buyer and seller, but we need help... especially right now...

We are in the world of COVID, and it has changed how we look at homes.

For the homeowners (sellers), we are asking that the home be available to show, that the home be clean, nothing of value is being left out, all medicines are put away and out of sight (not left in bathrooms or kitchen cabinets), anything that a seller wants excluded from the sale is noted, that sweet pups are either removed or kenneled, that sweet kitties are noted as inside only or inside/outside ok, and that please, please... homeowners (sellers) be gone for showings. Selling your home means opening up your home to strangers. Please note that anytime a Realtor shows your home, that Realtor is responsible for the buyers they bring into your home. If you have any COVID concerns, please bring them up with, and talk about them with your Realtor. As always, there is more to it than this, but that is a different class....and email. You can always call me for more information when you are selling your home.
For the buyers....it gets a bit more complicated... before we go house shopping, we are asking that you have a pre-approval letter with a solid lender, we are asking that you do not look at homes above your price range, we are asking that you have thought about the Top Three things you want in a home (so we can show you homes that have those items you value most), and that you help us help you.... We are currently in Phase 2 which means that we can't have more than 3 people (including the Realtor) in the house at a time, and yes, masks are currently required when we are showing homes. Many homes will request that we take off shoes so be sure to wear easy on/off shoes.
When a Realtor opens the lockbox to show you the home, we are taking responsibility for everything that happens from that moment on....until we lock up the house and put the key back into the lockbox. As I say all the time... Real Estate is NOT like HGTV... you don't just get to wander the home while your Realtor sits outside... we must be with you at all times when touring your potential new home. Sometimes this can be like herding cats, but we understand your excitement... just please, please as you are touring the home, and we know you have your family with you, please...we must all stay together. Don't make me sing to you here.....
As cool as those toys look, I'm sorry but the kiddos can't play with them, and sorry...but you can't jump on the beds either. It's ok to open cupboards, and closets, but we can't open dressers, or go through someone else's personal items. Touring a home is a VISUAL thing....sorry. However, yes, you can use the bathroom....usually.. sometimes we do have requests from sellers that bathrooms are NOT used. I showed a home last week where the sellers literally taped the toilets shut on days they were showing. I thought it was funny...
When we are looking at homes, often we have more than one home to look at, and many homes are owner occupied so your Realtor makes appointments. We do the best we can to make sure we have enough time to look at the homes, but we need to stay within our timeframes as the sellers are waiting to come home after we leave, or there are other Realtors waiting to show the home. I promise we are not trying to 'rush' you through the home...we are just trying to stay within the timeframes so that you can see the other homes on your list.
Looking at homes is exciting, and many of you will send your Realtor a long list of homes to go see, but what you don't know.....yet...that looking at homes is exhausting, and they quickly starts to blend together. Don't look at more than 6-8 in one appointment. I've had clients look at up to 10 at once, and that is a lot. We can do it....just be prepared. Your Realtor should give you a print out for each home we see, so be sure to take notes on each of the houses because they will blend together and you will not remember what you liked, or didn't like, about the first couple of homes by the time we get to the last couple of homes. :-)
With the real estate market being so crazy right now, it's important that if a home comes up that you like, that you let your Realtor know as soon as possible so we can make an appointment for you to see it. Many homes are receiving multiple offers and go pending within a few days. Your Realtor should be sending you a list of homes as they come on the market for you to check....drive by the homes...check out those neighborhoods....and let's make an appointment to go see the inside of the home.
Do not trust Internet photos! Realtors hire professional photographers for our listings for a reason. Smile Internet photos are a lot like internet dating...you don't know what you're going to get when you get there
Like the neighborhood, but not sure about the house? Let's at least go check out the inside! You never know as you can't judge a book (or a house) by its cover.
ASK QUESTIONS!! For heavens sake...this is a home you are thinking about buying... ask questions! As your Realtor, we are here to help! If we can't answer your questions, we can at least set up in the right direction to get those answers.
Buying a home is a very emotional experience. Your Realtor is here to point out pros/cons, and to help you.... Trust your heart, but use your head... or your Realtor. :-) Remember that we work FOR you.

As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one. Real Estate is not really about houses, it is about relationships. Your agent, and your lender work for YOU. You drive the bus...we are merely GPS to help you get to your goals. Like the classes, this weekly blog email is to help you with your home adventure. The goal is to be informative and non-promotional. :-) We are, however, hoping you will call and want us to help with your adventure.

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email, text, or facebook me anytime. I am, as always, happy to help!
Thank you again for your business and your referrals!! ...and thank you for referring these classes to your friends, family, and co-workers.
. ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings...

Information is power, and as always...May the odds be ever in your favor out there.... If you are looking for a real estate agent, I would love to be able to help you.
If you have any questions, or comments please get a hold of me anytime. You can call, text, email, or even facebook me. Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me as I would be honored to help you with your home buying, or home selling adventure.

Upcoming Topics:
What if I don't have a Down Payment?
How do I hire a Realtor, & do I have to sign anything?
Heating Types (but I want AC)

Last Week: Can you buy a home with ZERO out of pocket?


Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com
traciedemars@aol.com
“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com or www.freesellerclasses.com for local upcoming home BUYER and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​Upcoming Free (& non-promotional) Home Buyer Classes:
Please remember that, currently, ALL classes are being held virtually.  We look forward to teaching at the community centers again, once they open. 
 For the virtual classes, they are TWO hours long, and will start at the scheduled starting time.  Please email traciedemars@aol.com for link & password


Saturday, July 11th, from 9am-12pm (ish) 
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Monday, July 13th, from 5pm - 8pm (ish)
        Marshall Community Center, Conference room
       1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
Saturday, July 18th, from 11am-1pm ... VIRTUAL CLASS

Saturday, July 25th, from 11am-2pm (ish)  
​       Vancouver YMCA, conference room
       11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)



..Home Seller Classes are also virtual right now, and again TWO hours long.  Classes will start at scheduled time.  Please email TracieDeMars@aol.com for link & PasswordSaturday, June 27th, from 9:30am-11:30am
Thursday, July 9th, from 5:30pm-8pm
Saturday, July 25th, from 9am-11:30am
Monday, July 27th, from 5:30pm-8pm

                     
~~~~~~~~~
Happy Summer Day!

It definitely feels like summer today, and that is ok.  I love the rain...I really do, but something about a summer morning... it's pretty awesome.  I know that there is a lot going on in our world right now, and I do want to take a moment to acknowledge one thing... love...  Love for your neighbors, your friends, your family, YOURSELF, & others... ALL OTHERS.  I was always taught to show the same respect to the janitor, as I would to a CEO.  The same respect & care to someone different from me as I would to someone same as me.  'A mind is a like a parachute..it functions best when it is open'.  A heart is the same way...   Just my two cents, for what it is worth...  


Quick reminder... be on the look out in the next week or so for the CLIENT APPRECIATION cards!!  They are coming!!!  Thank you to everyone who refers us to their friends, family, and co-workers.  You mean so much to us, and we love when you call ... to talk, to ask questions, to ask us with your next home buying (& selling) adventure.  

This week we are going to talk about buying a home...and how much money is needed to do so.  All the time people call or email me about this, or come to the class and are surprised that yes, you do need 'some' money to buy a home.  They are told by someone, or hear on the radio, that you can buy a home with zero money out of your pocket.  I am so sorry....but this simply isn't true.  You CAN buy a home with zero down payment, but there are fees during the home buying adventure that you, as the buyer, will have to cover.  So....let's talk about those a bit..., and then later we will talk about the loans, and grants, that are out there to help you buy a home with ZERO down payment.  

So, what do you NEED to buy home? There are three fees associated with buying a home, and you need those.  There is no such thing as buying a home with no money out of your pocket.  So, what do you need???
 
 
Earnest Money
   This is the first fee associated with buying a home. The earnest money is a good faith deposit. It isn't your down payment and shouldn't be confused with it. Once an offer is accepted and signed around the earnest money check is due. This can be a cashier's check in some cases, as with most bank owned properties, or a personal check. The earnest money should be made out to the title company, and is due for deposit within 3 business days of the accepted offer. The purchase/sale will specify how much the buyer is putting up to secure the contract, to show 'good faith'. An earnest money deposit says to the seller: "Yes, I am serious enough about buying your house that I'm willing to put my money where my mouth is." 
Earnest money is refundable as long as the buyer backs out with a legal reason. If you back out of the accepted contract, without a legal reason, the earnest money is forfeit. In the coming weeks I will talk about the legal reasons for backing out of your offer and getting your earnest money refunded.  Your buyers agent is here to help you with that.  As YOUR real estate agent, we want to protect you, your investment, and your earnest money.
   Depending upon your loan, the earnest money CAN go towards your down payment amount, or be refunded to you after closing. The average earnest money in our area is $1,000 - $2,000, or more.. and some banks can/are requesting anywhere around 1%-3% of the purchase amount for earnest money.  A builder can, and usually does, require more money for an earnest money since, for the builder, there is more risk involved.  With a builder it is pretty common to want anywhere from 1%-3% of the purchase price for earnest money.  Again though....this is money that would go towards your down payment when you close.

Inspection
   The inspection should be completed within 9 days of the accepted contract. Legally your inspection period is 10 calendar days, but you never want to wait until the last minute as something could always come up, that you might want . The average inspection cost is about $400 - $450. The inspection is done by a licensed inspector who can provide a dry rot & pest report. The inspector is paid at time of service. The inspector will provide a written report and receipt for the service. This is a non-refundable fee as you are paying for a service that the inspector is rendering to you. If you chose to back out of the contract due to the inspection, this is a legal reason and you will NOT forfeit your earnest money. Inspections are non-invasive, but refer back to the inspection blog for questions to ask your inspector.  The inspection is a visual inspection of the homes current condition at the time of the inspection.  It is not an invasive inspection... this is not 'Holmes on Homes'.  A home inspection is a lot like having a used car checked out by a mechanic prior to buying it.  The mechanic (or Home Inspector) is going to take the car (or home) for a 'quick spin', and check out its current condition.  A buyer & seller can negotiate repairs, or a different remedy, to move forward to closing.  If the buyer/seller can not come to an agreement, then the deal dies.  Earnest money will be refunded as this is a legal reason to back out. Inspection fee is not refunded as the buyer is paying an inspector for their time & service...at time of service.  Remember that you, as the buyer, and your Realtor should both attend the inspection....and that you get what you pay for. **this fee can is not typically refunded back to you after closing.
There are other inspections that you, as the buyer, might want to consider.  A sewer scope is one of these, and cost is about $150-$200.  A sewer scope is done by a sewer professional, and they will stick a camera down the sewer line to inspect the condition of these to make sure there are no underlying issues there. Even if the home is on a septic tank, and the seller has had the septic inspected, or I should say, ESPECIALLY with a septic tank... get a sewer scope.  The tank is being inspected but not the lines going to the tank.  This has led to some pretty nasty surprises in the past.  
Another inspection that a buyer may want to consider...especially if any part of the living space is in the ground (split levels, daylight ranches, basement homes are a good example of a few), or if the home is near a body of water, is a radon inspection.  Radon is a ground occurring gas that can lead to health complications.  Most inspectors can offer these inspections, and there a few companies that offer these specifically.  It takes a few days and requires the home to be pretty much closed up.  In some cases, and with some homes, this can be difficult.  

Appraisal
   The last fee that can be expected prior to closing is the appraisal fee. After the inspection (and any repairs) is negotiated, and agreed upon, you, as the buyer, will contact your lender to give the go-ahead to order the appraisal. The average appraisal fee is anywhere from $600 - $800. This fee is paid to the lender.  An appraiser is hired by the lender to confirm the market value of the property. You can be willing to pay whatever you want for the home, but the bank will only loan as much as the appraiser says it's worth. The laws that came out after the market crash prevent buyers, buyer's agents, and seller's agents from having contact with the appraiser so we won't know it is done until the paperwork comes in. The appraisal is typically done within a week of ordering, and can take up to two weeks to have the paperwork to your lender AFTER the appraiser has come out.  Sometimes the appraiser comes out relatively quickly, but how quick, or slow the appraisal comes back depends on how busy the appraisers are.  
 The appraisal is a non-refundable fee. If the appraisal comes in lower than purchase price then the seller has the right to either lower the price of the home or back out of the agreement. If the seller was to pay any of the buyers closing costs then this can also affect those numbers as well, as the seller may choose to negotiate those.  If the home purchase was with a VA or FHA loan then that appraisal sticks to the home for six months.  If the seller & buyer can't come to agreement because of the low appraisal, then the earnest money will be returned to the buyer, but the inspection and appraisal fee is lost. The seller only receives a copy of the appraisal IF the appraisal comes in under the previously agreed upon purchase price.  If the appraisal comes in at the previously agreed upon purchase price, or above that price, the seller does not receive a copy of the appraisal.  
If you are purchasing a property from an investor you may be required to have TWO appraisals done...remember to talk with your lender as s/he is here to help you!   Depending upon your loan type, the appraisal fee coud be returned to you after closing like the earnest money.  Some of the zero down payment loans that will refund all, or part of your earnest money to you (and maybe your appraisal fee as well) is USDA (rural development) loans, VA loans (awesome programs for our veterans!!), the state down payment assistance loan, and the chenoa grant.  
The appraiser can call out repairs as well.  Most of the time, these have to do with paint peeling, missing visquean under the home, roof condition, missing carbon monoxide detectors, or missing earthquake straps. The appraiser does not do a home inspection on the home, so they are just looking for those items required by the loan type of the buyer.  If the appraiser calls out a repair, this is now a lender required item and has to be fixed to be financed.  The appraiser does not receive a copy of the home inspection.  The home inspection is strictly for the buyer & buyers agent.  The buyers inspector is hired to inspect condition of the home.  The appraiser is hired to inspect value of the home for the bank/loan.  I hope all of this helps, but don't forget to holler at me with any questions....

What is the timeline?
Offer accepted (inspection period begins)
- home is pending sale

Earnest money is due (refundable, based on 5 legal reasons --homeowners insurance/title, inspection, appraisal, financing-- to back out of the agreement)
- within 3 days

Inspection
- within 10 calendar days
- Approximately $400-$450 (non-refundable)


Appraisal
- within 7 days of agreed upon inspection response
- $600-$800 (non-refundable)

These are the 3 fees you can expect as you are starting the process to purchase a home. These 3 fees have nothing to do with closing costs, or down payment.  We talked about Closing Costs last month. If you need to see that one again, go to the blog page on www.learningtobuyahome.com.  

 
            Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  AND If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics: 
What other fees may be a part of buying a home?  
What if I don't have a Down Payment? 
How do I get a Realtor, and do I have to sign anything??

Last Week:  What are Closing Costs?

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​Let's talk about CLOSING COSTS (& client appreciation)
Upcoming Free (& non-promotional) Home Buyer & Seller Classes:
Until further notice, all classes are going to be held virtually due to the Coronavirus.
Please email traciedemars@aol.com, or cberglender@gmail.com for a link & password to the classes.
Thank you!
Home Buyer Classes:
Saturday, May 9th, from 9am-11am
Saturday, May 16th, from 12pm-2pm
Tuesday, May 19th, from 5pm-7pm
Saturday, May 30th, from 11am-1pm
Seller Classes:
Saturday, May 16th, from 9am-11am
Thursday May 21st, from 5pm-7pm

If these class dates and/or times don't work for you, please let us know. We understand that you have lives, and families, and work. We will work something out that works better with your schedule. Just let us know....
Good morning... or afternoon? I have lost all sense of time, and dates. It's a weird time in our lives right now. A few weeks ago when I wrote up the 'Forbearance and what it really means' blog, I thought that we would all be back to 'normal' by now...whatever 'normal' is... However, I think we can all agree that 2020 is the year that time forgot, and here we were all excited about holidays falling on weekend days...

Chris & I are getting used to the virtual classes, and people seem to like them. It is a shorter time frame though so there are things we simply do not have time to cover, and that's why I need to step these up again to at least every other week instead of just once a month as I've been doing. Please, if you have any questions, send them over to me, and I will be happy to help! Chris and I are both still working. I am still showing homes, and writing up offers, but showing homes is a bit trickier right now as we do want everyone to be safe, and we have to work within the guidelines that we have been given. Who says an old dog can't learn new tricks???
Just a quick message... usually about now we would be having our Client Appreciation Event where we THANK YOU for your friendship, your referrals, your continued business & support...and well, just for being part of our lives! We LOVE YOU. Let's be honest...that's not happening this year, so be on the lookout for a little something-something from me and Chris Berg in your mailbox in the next few weeks. When you get it you just have to tag us on the social media of your choice...Facebook? Instagram? ...and maybe leave us a glowing review somewhere?? We miss you!!
I want to go over Closing costs this time, and 'hopefully' I will be able to get a short video out on this too. I am working on that one... Let me know what you think!
Closing costs are an important part of the home buying (or selling) process, but no one really knows what they are, are often how much they're going to be....and why is that? Well, first you need to know that there are 28 people involved in the purchase/sale of a home. You will most likely only ever see four of them.... your lender, your agent, your inspector, and your title officer at the end. You'll hear a lot about appraisers, and underwriters, but that is a different blog. Everyone has a job to do in the transfer of the property from the seller to the buyer....and everyone needs to get paid. Your buyers agent is FREE (don't get caught by 'buyers agency fees' as those are not common), but that may be the only free thing you get. Seriously... you don't have to pay for a buyers agent! There is your good news. :-D
So what the heck is closing costs then? Lots of people talk about closing costs, but most people don't understand what they are...or how they're paid. Closing costs have two separate parts really...1....the part associated with your loan, and 2...the part associated with the title company and changing the ownership of the home to you..
One thing you need to know is that closing costs are not set...in other words...one persons closing costs will not be the same as another persons closing costs. Why? Because ...1....every person has a different loan based on their credit scores, type of loan, amount of home buying, amount (if any) of downpayment, what day they're closing (keys) on, interest rate, APR rate, lender they're using (some have more fees than others), etc... See how complicated that can get?
So what about the second part? Well, that can differ as well based on the title company since not every title company charges exactly the same for their individual costs. Then there is also the costs for the property taxes of the home, time of year you are buying based on when the taxes are due/have been paid, cost of your home owners insurance, amount of loan interest, and more. Even more confusing, yes?
Ok...now I know you are thinking that this weeks post is pointless then, but really, I have a point! :-) My point is that closing costs are variable based on you, your loan, your lender, your (soon to be) new home, and on the title company. So how do you figure that out? Well, really no one can figure out HOW much your closing costs are going to be until you have an accepted offer on a home...then we can figure out what your closing costs will be because you will have a home to base numbers off of, a loan chosen, a lender, and the title company picked out. Most numbers in real estate are a guesstimate until you have all the pieces in place...all the ducks in order...so to speak.
When you are getting pre-approved, your lender will base all your numbers on a guesstimate...what we think your costs are going to be. Most times lenders, etc will guess high so that the numbers will come in smaller and more affordable for you. It is always better to look like a hero than a zero! :-)
I know, I know...still not very helpful is it? I am sorry. Closing costs are as individual as you are. However, 98% of buyers will request the seller to pay for 2%-3% of their closing costs. Where does that number come from though as even this number changes depending on the person, their loan, the home involved, etc.
Well, to start... a FHA loan requires 3.5% downpayment. FHA is the most common loan type for buyers as it is very forgiving, and easier for the majority of folks to get pre-approved for. There are some loans, and yes, grants too, that can take care of that down payment for you....meaning a ZERO down loan for you, the buyer. There are some additional fees to using these down payment assistance programs that is part of your closing costs. There is also a zero down USDA loan that has other fees associated with it.
On average, the costs between title, loan, lender, taxes, interest, insurance, etc....run about 2%-3% of the homes purchase price....rarely does it run more. When listing a home, I (and many other agents) include at least some seller paid closing costs to the sales price of the home. This is done because so many buyers request those from the seller, and this way it isn't a surprise to the seller. So, yes, some sellers will pay for your closing costs when buying a home...of course, that depends on if there are other offers involved. In a multiple offer situation the seller may not pay any closing costs. One thing you need to know though is that if you ask for 3% in closing costs, and the lender only needs 2%, you don't get that other 1%....it goes back to the seller. You can't get cash back from buying a home....unless you are having your earnest money &/or appraisal fee returned to you...this happens if you are using a loan that covers your costs and fees. Usually your appraisal is part of your closing costs (but paid for at time of appraisal), and your earnest money is applied toward your down payment, or your closing costs.
Again, 85% of the time a buyer will request some of the closing costs to be paid for by the seller. The other 15% of the time a buyer will pay their own closing costs so they don't have to finance them. Right there is the REALITY of closing costs. The seller never actually 'pays' for your closing costs... the buyer is financing them into the purchase price of the home...adding the closing costs to their loan. The seller is merely accepting less than the purchase price so that the buyer can do this. If you remember ANYTHING about this email...that is what you should remember.
So, if a buyer has their own down payment, the lender can also help pay closing costs, and this can be done a couple of different ways. If a buyer is using one of the down payment assistance loans or grants, or the USDA loan, the lender can't help pay those closing costs. The buyer can use their earnest money towards these though. Not asking a seller for help with closing costs does make for a 'stronger' offer, but let's be honest...that isn't always an option for a lot of people. However, if able to do so, sometimes people will use the zero down loan or the down payment assistance loans, and use the money they have for their own closing costs, but asking the seller for help with closing costs is quite common. Really it depends on many things.
In short....buyers responsibility for closing costs are:
* Lender's Title Insurance Policy
* Half of the escrow fee
* Home Inspection (paid for at time of inspection)
* Recording fees
* First year Homeowners Insurance Premium
* First year Flood Insurance (if applies)
* Pro-rated property taxes
* Appraisal fee (paid for when appraisal is ordered)
* Survey fee (if required)
* HOA fees (if applies)
* Pro-rated HOA fees (if applies)
* Lender fees; appraisal fee (see above), credit report, loan origination fee, pre-paid interest, private mortgage insurance
All of these fees can change depending on the title company, the lender you've hired (closing costs can differ between lenders as some charge more & some charge less), the home insurance company you are using, the home inspector you've hired, the appraisers and what they're charging (and if you need a rush), etc..
Let me see if I can't make that part a bit easier...
I am going to give you 2 loans to choose from, and we are going to PRETEND that I am loaning you $1,000 for a year
First loan is 0% interest. Second loan is 5% interest.
What loan do you want? The 0% one, right? Most people (in the class) always choose this one, but frankly, there's not enough detail here for you choose a loan, so let's take it a step further....
I have to charge you (the buyer) closing costs. Closing costs is to pay for all those 28 people that are involved in the purchase/sale of a home. The seller has their own portion of closing costs to pay as well. On 'average', the closing costs for the seller are going to be about 8%-9% of the purchase price. Yep... there's a cost to buy a home, and a cost to sell a home too.
First loan at 0% Second loan at 5%
Remember...closing costs....
Bank one charges $200 Bank two charges $100
So, what happens a year from now? How much of your money do I have a year from now when you come back and pay me back my $1,000 that I loaned to you?
Well....let's break that down... Remember that the original $1,000 doesn't count because it was already my money. I loaned it to you, and now you are paying it back to me...
First loan at 0% Second loan at 5% Closing costs....
Bank one charges $200 Bank two charges $100 Interest...
Bank one 0% Bank two $50
---------- ------------
How much of your money do I have?
Bank one = $200 Bank two = $150
So with bank one it's going to cost you 20% to borrow that money for a year, & with bank two it's going to be 15%... Which one do you want now?
Of course, this is a very simplified example, but you get it. There is a lot more to closing costs & buying a home than just interest rate. You could have an amazing, unheard of interest rate, but the costs to get that rate could end up being astronomical, and not worth it over the length of your ownership. Remember that interest rates are NOT controlled or governed by the lenders....it is by the GOVERNMENT. All lenders are very close to each other because the interest rate is not in their control. Realistically speaking it is how much they are going to CHARGE you for the loan and the interest rate that is going to matter.
as always....I am available for questions...as is Chris Berg with Cardinal Financial (cberg@gmail.com or chris.berg@cardinalfinancial.com & 503-320-0925 cell)
One last thing you need to remember is that a real estate agent is not a sales person. It is not our job to 'sell' you anything. We are assistants, advisers, guidance, and help. You should not feel as if your agent is trying to sell you a home, or anything else, our job should be to help you in getting the home you want. This being said remember that you do not get T-Bone steaks for the price of hamburger...Look ONLY at homes within your budget. ALWAYS ask questions, and expect answers without a lot of lingo. I was always told that if you can't explain something in a way that the other person can understand clearly, it is because you don't understand it yourself. :-)
Information is power, and I hope that I am able to help you. Good luck, and as always...May the odds be ever in your favor out there.... AND If you are looking for a real estate agent, I would love to be able to help you.
As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one. Real Estate is not really about houses, it is about relationships. Your agent, and your lender work for YOU. You drive the bus...we are merely GPS to help you get to your goals. Like the classes, this weekly blog email is to help you with your home adventure. The goal is to be informative and non-promotional. :-) We are, however, hoping you will call and want us to help with your adventure.
If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email, text, or facebook me anytime. I am, as always, happy to help!
Thank you again for your business and your referrals!! ...and thank you for referring these classes to your friends, family, and co-workers.
. ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings...
Upcoming Topics:
Can you buy a home with ZERO out of pocket??
What are the costs of buying a home? ALL of them??
Buyers Agency...what are they really, and do you have to sign one?
Last Month: What does forbearance (rent or mortgage) really mean?
Have a great day, and I will talk to you soon,
;-D
Tracie DeMars
Real Estate broker
Re/Max - Van Mall
360/ 903-3504 cell
360/ 882-3600 fax
www.traciedemars.com
traciedemars@aol.com
“Interested in free and non promotional home education classes? Go to www.learningtobuyahome.com or www.freesellerclasses.com, for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”

"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."
- Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​So...let's play pretend....
Let's pretend you have an interview with a company that you really like, and look forward to working for. They know you, your experience, and how great you are.
However, there are some downsides... there are zero benefits, no raises, you will only get paid once, and you only get one shot to negotiate how much you will be paid for your work.
So you go to the interview, and it all goes well....or so you think.
Then you get the call....
Employer:
"Hi! The interview went great! As a company, we can't wait to hire you. Your experience, and skills are exactly what we are looking for!
However, we would like to talk about your payment. We really do love you, and are excited about moving forward, but we also interviewed a couple of other people. There is someone else that we have talked to that is cheaper.
Now, we understand that this other person (that is cheaper) doesn't have your skills, or your experience. They most likely won't do the job as well as you will, and can't answer our questions like you can. As a company we understand that this other person also probably won't provide the same services, or level of competence that you do. As a company, we also understand that we will probably end up paying more for services that you include, or hiring another person to do things that you include in your payment, but they say that they're cheaper and will do what you do for less. So, will you go down on your price?"
So... what do you think? As the employer? As the person who is interviewing?
Welcome to being self-employed.....
You are the company. The self employed person is the interviewee. As the company, you are hiring a person to provide a service for you. You are hiring their skills & experience to help you with something you want done, or need help with. Everyone wants the best work for the least amount out of their pocket... it's human nature. The catch is to make sure that this doesn't end up costing you more in the end. There is always going to be someone willing to do it for cheaper, but at what cost to you?
So, where does this come from? I received an email from someone who went with someone cheaper. These folks have questions about what's going on with the sale of their home, and about what their "cheaper" person is doing... and not doing. Sadly, I can not help them. They have a contract with this other person. I can not, legally, intervene in that relationship as it is against the Realtor Code of Ethics. I feel bad for these folks as they're good people, who are now second guessing their hire. 🤷‍♀️
This is for all self employed people.... not just real estate 🙂... contractors too.

For information on home buyer or home seller classes & more educational blogs....
Facebook: Tracie DeMars Real Estate
or
www.learningtobuyahome.com
www.freesellerclasses.com

​
Upcoming Free (& non-promotional) Home Buyer Classes: 
Home Showings 101...home buyer & seller education
​www.traciedemars.com

Saturday, February 8th, from 9am-12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Tuesday, February 11th, from 5pm - 8pm (ish)
        Marshall Community Center, Conference room
       1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, February 22nd, from 12pm-3pm (ish)
​       Vancouver YMCA, conference room
      11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave).                                                                                     
 
If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...look for link on top of website
                  
Happy February!   

Finally....January is over...not that it was the longest month ever, or anything like that...  The beginning of the year is a good time to sell your home (if you've been thinking about it), and it's a time where a lot of folks who have been thinking about buying a home start the pre-approval process.  This months blog is going to address something that is important for both sellers, and buyers....showing homes.  Let's talk about this...the funnest, and the scariest part...

As we've talked about in the past, there's a process to buying (and even selling) a home.... first,  you take a home buyer (or home seller) class, second, you move on to getting pre-approved.  Yes, even if you are selling a home, you want to get pre-approved before you go looking for your next home.  For a seller (who is going to be a homebuyer when their home sells) part of the information you will be giving to your lender is the guesstimated amount that you'll receive from the sale of your current home...your Realtor will help with this.  When you are buying a home, your Realtor is here to help you with your home adventure, and while yes, this is kind of scary...it is a lot of fun.  Whether this is your first home, or your 3rd, or 5th, or whatever...with a pre-approval & your Realtor,  you are ready for the 'fun' part.....LOOKING AT HOMES!  :-)  This is always an exciting time for buyers, and it should be!  Every home you pull up to has the possibility to be 'the one'....The one you make an offer on, the one that you buy, the ONE that becomes YOUR HOME...and it is very exciting, and yes, kind of scary too.  For the sellers though, it is very stressful because currently this IS their home, and they're leaving so that strangers can come in.  As a Realtor, we are trying to make this as easy as possible for both the buyer and seller, but we need help...

From the homeowners (sellers), we are asking that the home be available to show, that the home be clean, nothing of value is being left out, all medicines are put away and out of sight (not left in bathrooms or kitchen cabinets), anything that a seller wants excluded from the sale is noted, that sweet pups are either removed or kenneled, that sweet kitties are noted as inside only or inside/outside ok, and that please, please... homeowners (sellers) be gone for showings.  Before you go on the market, talk to your Realtor about HOW the showings will work with your home.  Some folks are cool with a few hours notice, some need more time.  Most of my clients need a bit more time for showings.  If you have kids and/or pets, it's ok to ask for 24 hour notice.  That way you have time to prepare your home to be seen in its best possible condition.  You are still living in your home, and the buyers and buyers Realtor will (or should) respect that.  A lockbox will be put on your home, and during a showing the buyers agent will access the box for the key.  An email and/or a text will be sent to the sellers Realtor to let them know that a Realtor with XYZ company has accessed the home, and for how long we were there.  Before a seller puts their home on the market there is preparation, and usually some 'honey-do's' that need to be done.  As always, there is more to it than this, but that is a different class....and email.  You can always call me for more information when you are selling your home. 
 
From the buyers....it gets a bit more complicated...  before we go house shopping, we are asking that you have a pre-approval letter with a solid lender, we are asking that you do not look at homes above your price range, we are asking that you have thought about the Top Three things you want in a home (so we can show you homes that have those items you value most), and that you help us help you....  
    When a Realtor opens the lockbox to show you the home, we are taking responsibility for everything that happens from that moment on....until we lock up the house and put the key back into the lockbox.  As I say all the time...  Real Estate is NOT like HGTV...  you don't just get to wander the home while your Realtor sits outside...  we must be with you at all times when touring your potential new home.  Sometimes this can be like herding cats, but we understand your excitement...  just please, please as you are touring the home, and we know you have your family with you, please...we must all stay together.  Don't make me sing to you here.....
    As cool as those toys look, I'm sorry but the kiddos can't play with them, and sorry...but you can't jump on the beds either.  It's ok to open cupboards, and closets, but we can't open dressers, or go through someone else's personal items.  Touring a home is a VISUAL thing....sorry.  Yes, you can use the bathroom. 
    When it's wet out (and lately it's been VERY wet), it's always a good take off our shoes before we enter someone else's home so be sure to wear easy on & off shoes, or use shoe booties.
    When we are looking at homes, often we have more than one home to look at, and many homes are owner occupied so your Realtor makes appointments.  We do the best we can to make sure we have enough time to look at the homes, but we need to stay within our timeframes as the sellers are waiting to come home after we leave, or there are other Realtors waiting to show the home.  I promise we are not trying to 'rush' you through the home...we are just trying to stay within the timeframes so that you can see the other homes on your list. 

    With the real estate market starting to pick up for spring, it's important that if a home comes up that you like, you need to let your Realtor know as soon as possible so we can make an appointment for you to see it.  Your Realtor should be sending you a list of homes as they come on the market for you to check....drive by the homes...check out those neighborhoods....and let's make an appointment to go see the inside of the home.
    Do not trust Internet photos!  Realtors hire professional photographers for our listings for a reason.  :-)  Internet photos are a lot like internet dating...you don't know what you're going to get when you get there  
    Like the neighborhood, but not sure about the house?  Let's at least go check out the inside!  You never know as you can't judge a book (or a house) by its cover. 
    ASK QUESTIONS!!  For heavens sake...this is a home you are thinking about buying...  ask questions!  As your Realtor, we are here to help!  If we can't answer your questions, we can at least set up in the right direction to get those answers. 
Buying a home is a very emotional experience.  Your Realtor is here to point out pros/cons, and to help you.... Trust your heart, but use your head...  or your Realtor.  :-)  Remember that we work FOR you.
  Once you find THE home it's time to talk about making an offer, and those pesky timelines that you need to know, and that we need to abide by.  So, let's talk about that....next month!  


Thank you, as always, for reading this. 
I hope this helps you this week!  Please, if you have any questions, please feel free to call, email, text, or even facebook me anytime.  I am always here to help!   

Information is power, and I hope that I am help you!  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.
 
I hope that explains this a bit, but if you have any questions, or comments please call or email me anytime!  Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me.  I would love to help you with your home buying, or home selling adventure!  :-)

    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 ....disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics:
How long is the home buying process... aka....when do I GET Keys?


Last Month:  New Year...New Home?  Maybe?  Where to Start?

Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

​Upcoming Free (& non-promotional) Home Buyer Classes: 
   
Saturday, January 11th, from 9am-12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
Monday, January 13th, from 5pm - 8pm (ish)
        Marshall Community Center, Conference room
       1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, January 25th, from 11am-2pm (ish)
​       Vancouver YMCA, conference room
       11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave).                                                                                           

 
If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~
                                                                    
Happy New Year!

  First I want to thank everyone for attending the Client Appreciation events!  Frozen II, and Star Wars:  The Rise of Skywalker was pretty awesome, and we loving hosting these events for you.  Just our way of saying Thank You for allowing Chris Berg & I to be a part of your home adventure.  

   Happy New Years!  :-)  2020  Is it just me, or was 2019 a bit bipolar?  It was a bit of a rough year, but now we move forward, and every day is a new start...thankfully!  You know, I remember being told that that time goes by faster as you get older.... I am here to tell you that it really is true.  I guess we all need to listen to Dr. Who, and to stop blinking!!!  ....sigh...  

   I hope you had a wonderful Christmas with friends, family, and food.... holiday food really is the best.  With the new year starting though, a lot of folks start thinking about new things, and resolutions.  I'm not a fan of resolutions... unless they are to eat more bacon, read more books, crochet more blankets, or help folks buy (or sell) a home.... those are about the only resolutions I can keep!  Do you have resolutions?  Do you keep yours?  

   The holidays are really about family & home, I think.....having friends & families over for the holidays, or going to someone else's home for the holiday celebration...add that to the new year, and new beginnings and many people start thinking about the next big step.  Is it time for a new home?  Maybe your current home is too small for your family now, and it's time for  a bigger home?  Maybe your family has become smaller and it's time for a smaller home?  Or are you renting your current home, and want to be a homeowner? 

Purchasing a home, whether it's your first home, or you've owned homes before, is one of the four BIG steps we take in life.  What most folks don't know is where to start, and what questions do you need to ask yourself?  What questions do you ask a lender? A Realtor?  What about classes?  There are SO many right now (it's because it IS the beginning of the year), but how do you KNOW which one is going to give you the best information?    There are definitely some questions you should ask....

Let's start with questions to ask yourself.... 

Bonus Answer.... 
What if I have a home currently, but want to get a new home?
I bought my first home in 2001.  It was an amazing time for my family, and while we made quite a few mistakes in the purchasing of the home (we went through a builders representative and didn't have our own Realtor), it was still exciting.  I started working for a builder shortly after we moved into our new home, and boy...was that an education.  A few years later we thought about selling, and buying a new home, but were not sure how that would work.   I mean....how do you buy a new home if you are IN the old home?  How would that work?  So we didn't.... we stayed, and that was ok as I was leaving the builder and working real estate outside of the builder by then...and it was best to stay put as the market was starting to slide...hello recession.  
I started teaching home buyer education classes because I remember how lost I was when I purchased my first home.  I mean...  believe it or not, but I did take a class before I bought...it was a very LONG class, and they used a booklet that made ZERO sense to me, so it was no help whatsoever.  I wanted to teach classes that made SENSE, and that used the paperwork that people would actually see when buying a home....that was 15 years ago.  About 7 years ago, as the market was heating up from the recession, I had a client call me asking this very question...  HOW do they buy a new home when they own a home already?  How do they sell their current home?  What about paperwork? Agents?  Fees?  Marketing? How do they set up, or handle showings?  How do they sell, and buy at the same time?  So....  we came up for a class for that too.  www.freesellerclasses.com, for upcoming classes, and YES, THE FOLLOWING ANSWERS STILL APPLY TO YOUR SITUATION TOO.  You can always call me with questions too...  I'm always here to help...

#1...  Do you have a steady income? 
When you decide it is time to try to buy a home, a lender is going to want to see a steady income.  Have you been on your job for at least 6 months?  Were you working before that?  Was it in the same industry?  If you weren't working before your current job, were you in school?  Were you in school for the occupation you are in, or something similar?  Are you self employed?  Do you have at least 2 years of 1099's and tax records to prove your income?  These are all questions a lender will ask, and need answers to.  Want more information on this part?  Contact Chris Berg at Cardinal Financial for answers.  He can be reached at Chris.Berg@cardinalfinancial.com, 503-320-0925.  Don't let the 503 number fool you....he is local.  :-)

Owning a home is usually a bit more expensive than renting.  With the rising costs of monthly rent, your rent and mortgage payment may be about the same, but owning does have a few more expenses.  When you rent, and something breaks, or has an issue, you call your landlord, or rental management company, and eventually things get repaired.  When you own a home, YOU are the landlord, and so you need to budget for those home repair issues that will come up.  Take $20 from each check and have it automatically deposited in a credit union or financial institution of your choice.  Do not have a check book or card for this account.  This is your home maintenance fund.  You know I love the home warranty, and remember that you can continue it year after year.  Use this fund to pay for that next year of the home warranty.  However, remember that the home warranty does not cover roofing, windows, walls, flooring, or siding.  This account should also be used to maintain and take care of those items as well.  

#2...How much debt to you have?
This is a big one.  We all have debt, and don't get me wrong....I think Dave Ramsey is a good guy with many excellent ideas, but there is one area that he preaches that actually hurts you in the pursuit of buying a home.  The idea of a cash based living style is wonderful, but when it comes to buying a home this will actually hurt you.  Strange as it is, having NO credit is worse than having BAD credit!  Some debt is actually good....not a lot...but some.  A lender will base the amount of your pre-approval on how much income you have vs how much debt you have.  Your mortgage payment can only be a certain percentage of your disposable income which, in a nutshell, is your income minus your debt.  Some debt is good because it gives you a history of payments.  Are you credit worthy?  Do you pay your debts?  Do you pay those debts on time?  Are you reliable?  Too much debt is bad because the ratio of your debt to your income is too high.  When you are applying for a mortgage, that is (for some of us) the largest debt we will ever carry.  How do lenders know if you will pay back that debt?  They will look at your credit score...which is determined by how well you pay your current debt.  This kinds of leads me to our next question.

#3...  What is your credit score?
Ah yes...the dreaded credit score!  In the upcoming weeks we will spend some time talking about credit scores...the good, the bad, and the ugly.  For right now though, a credit score is based on your credit history.  It tells the lender a story about your reliability of repaying your debt.  Frankly, at some time, we all have credit issues...or at least most of us do.  Many moons ago, when my husband and I were in the early years of our marriage, we had 'issues'.  We had 2 young children, and a ton of medical debt.  When our son was a baby, we declared chapter 7 bankruptcy.  At the time it was the only thing we could do.  My husbands wages were being garnished, and we couldn't even afford diapers.  We were, in a word, BROKE...and only going broker.  So, we made the decision to go bankrupt.  It was, looking back at it, really the best decision we could have made.  After the discharge, we took it upon ourselves to learn about how 'this' all works.  I think they should teach budgeting, and credit in schools.  This lack of understanding gets a lot of young adults in trouble....of course....just like everything else here this is just my opinion  :-)  So, we learned, and we made better decisions, and choices.  We learned to live within our means.  We learned to stock up, and save.  We went back to school to better ourselves, and our situations so we could provide a better life for (at the time) two children.  Our oldest daughter, and our son in law had a baby this year, and like most young couples they are broke. I guess it is where most of us start. She *barely* remembers what it was like when she was very young.
So about that Credit Score....
A credit score is based on what type of credit you have, if you make your payments on time (late payments ding your credit score), how much credit you are carrying, and if you pay off your credit in a timely fashion.  Do you have a car loan?  Do you make the minimum credit payment, or more?  Have you paid off a debt?  If you have paid off a credit card....don't close the account because closing the account can hurt your credit score.  Cut up the card if you want, but keep the account open.  Do you have high credit balances?  Lenders don't like to see this because if you have high credit balances it means you have less credit to draw on in case of emergency, and let's face it, we all have emergencies sometimes.  
In short, a credit score is based on your past credit history, and lenders use this number to determine how risky it is to loan to you.  With lending...it is all about risk.  They prefer to loan money to individuals with reliability.  They don't want to loan money to individuals with a high risk...someone who most likely won't pay back the money.  
So what can you do if your credit score is somewhat, less than stellar?  Call your lender, or call Chris.  They can go over your credit report with you, and point out the areas that you need to address.  They can, and should, actually HELP you to understand your credit report, and should be able to give you some steps to take to better your credit score.  Is it hard work?  Yes...but the end result is absolutely worth it.  It may take some time, but if you do all the steps, we can....and will...help you find a home.  

What is 'good' credit?  Most loans will want to say a 'mid-score' of at least 620.  There are three credit scoring companies, Equifax, Transunion, and Experian.  The lender will use the middle score of the three.  The better the credit score, the lower your interest rate for some loans as they have determined you have less risk. With a few loans, you can go as low at 580 on your credit score, but there are some 'hiccups' with that.  The majority of loan programs, especially the loan programs that help home buyers with downpayment will require a 620 mid score to loan money to buy a home.     


#4... Do you have a down payment?  Do you need help with one?
There are still a few 100% loan programs for those without a down payment, but there are a few strings for these.... mainly location, or being a member of the military.  Surprisingly, you don't have to be a first time home buyer for these programs.
  What if you are a first time home buyer thought?  Well, there is quite a few down payment grants & loans out there that can help with that.  Yes, there really is!  Many lenders, and classes will talk about one...maybe 2, of them...but there are some grants to help with your down payment too.  No lie...  There 
are also other ways to come up with a down payment....401k, 'gifts', tax refunds, etc.  All of these options (and the pros/cons of each) are discussed by Chris Berg at the free & non-promotional home buyer education classes. 
However, and this is VERY IMPORTANT, remember that you do need money for a earnest money deposit, the home inspection, and the appraisal though.  Anyone who tells you that you don't need any money to buy a home is blowing smoke.... *and I'll let you finish that*   

#5....  Have you taken a home buyer education class?
Buying a home, whether you have a home already, or are a first time home buyer, is a tense, exciting, thrilling, fun, and yet scary time for everyone.  These classes are about 3 - 3 1/2 hours long and will go over the entire real estate process & what the papers all really mean to you.  The lender will go over the entire loan process including closing costs, down payment loans/grants, and the loans (including the 100% loans), the pros & cons of each (not just the good stuff, but the things you really do need to know too) , credit (and help to get you there), interest rates, and more.  The real estate portion will help you understand the steps, the questions to ask a Realtor, inspections, appraisals, earnest money, and what all those papers involved in an offer really mean.  The classes are free, non-promotional, and taught at community centers for your convenience.   Before you talk with a Realtor, or a lender, and definitely BEFORE you sign any papers with either a Realtor or a lender... TAKE A CLASS.  A home buyer education class should be your first step....not the last one.  When you call to rsvp for a class.... ask how long the Realtor and lender have been teaching classes.  Ask how long the Realtor has been licensed.  Ask where the classes are being held at....are you going to a lender office?  A real estate office?  What will they go over?  There's nothing wrong with taking more than one class too..  Buying (and selling) a home are some of the biggest things that you will ever do.  The only thing that will cost you more money is having a child....and wouldn't it have been nice to have a handbook for that?  :-D    
               
      Information is power, and I hope that I am able to help you.  Good luck, and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.                                                                       
 
    As always....this is just a quick overview.... please remember that your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

If you have any questions about this, or something you have heard...or if you would like me to help you with your home adventure, please call, email,  text, or facebook me anytime.  I am, as always, happy to help!
 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 .   ..disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Next Week:    Interview Questions to hire a Realtor, or How long is the home buying process aka WHEN do I get keys?

                            
Last Week:   Winter time & buying (or not) buying a home                                                                             
Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home buying or selling classes?  Go to www.traciedemars.com or www.learningtobuyahome.com, for upcoming classes, or facebook: Tracie DeMars Real Estate for my home adventure education blog.  Classes are now available for home owners thinking about selling their home.  Links are on the left."
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).

Monday, December 9th, from 5pm - 8pm (ish)
        Marshall Community Center, Conference room
       1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, December 14th, from 12pm-3pm (ish)
​       Vancouver YMCA, conference room
       11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave).
Saturday, January 11th, from 9am-12pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)
Monday, January 13th, from 5pm - 8pm (ish)
        Marshall Community Center, Conference room
       1009 E McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)


If these class dates and/or times don't work for you, please let us know.  We understand that you have lives, and families, and work.  We will work something out that works better with your schedule.  Just let us know....   Due to the Christmas holiday, our next classes will be starting January 2019.                                                                               
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~

Happy Christmas Season!

  It's my favorite time of year!  Yay!!!  ....and time for our LAST Client Appreciation of the year!  Star Wars:  The Rise of Starwalker!   We are TWO WEEKS from that event!  HAve you emailed for your reservation?  We are full in the 21+ area, but plenty of seats in the general area are available still. 
As always...  the Client Appreciation events are just one way that Chris Berg (Cardinal Financial, 503-320-0925), and I say, THANK YOU, to you... our clients, our friends, and family.  We appreciate your continued support, and referrals. 
  So, we are smack dab in winter now where it's daylight until 2pm, and then BAM! it's darlk.  Then there is the rain too... I actually don't mind the rain so much, or winter.  For home buyers it is the best time to be looking for homes.  Yards may not look the prettiest right now, but winter is when home inspections shine.  If you are a home buyer, and you need help with closing costs, NOW is the time to be out looking at homes.  Right now is the time of year that we see the least amount of multiple offer bidding wars, and the time of  year that we see sellers most inclined to help buyers with those pesky closing costs. Yes, moving during the winter, the holidays, and the rain suck...but maybe getting help with closing costs, not having to compete with 4 other offers, and being able to see how a home actually lives during the wet weather... that is golden. 

  What should a home owner , and /or potential home buyer be looking at right now?  Well, water is the big one.  I showed a home a couple of weekends ago, during the rain, where you could see a 6 inch puddle of water sitting around the foundation of the entire West and southwest sides of the home.  I'm not kidding.... it was 6 inches deep, and pouring in the foundation vents.  Part of the repairs for this would be to move the gutter downspouts away from foundation, put in some window wells, and to re-grade the dirt away from the foundation so it all wasn't just puddling there with no where else to go but under the home.  My client did take a look under the home in the crawlspace, and yes, there was water in the crawlspace, but was it all from the water around the foundation, or from a high water table under the home?  Having a home inspection during this time of year also means when the inspector is looking in the attic space she/he will actually be able to see if the roof is leaking.  He/she can also be checking for moisture in siding or in/around windows and window trim.  In our area, it rains.... and usually much more frequently than it has been.  Take advantage of the time of year. 

 Luckily I haven't melted in the rain....yet... and while I don't like to take chances that someday it could melt me there are certain things that I am looking at with clients at this time of year. I am looking at how the water sits around the foundation, if there are window wells around the foundation vents, and while looking at those foundation vents, I am looking to see if there are holes in the vent screens. It's getting colder, and small animals are looking for warmth.  You know what is warm? Under your home.  If there is a torn foundation vent screen, these animals will go under your home.  What do they do there?  Well, like you would, they set up house.  They have an area of the visquean (or all of it) for their potty area, they will pull down insulation for a nice warm bed, and if  the home has forced air with duct work under the home?  Good grief...that's like winning the small animal lottery!  I've seen (ok, the inspectors have seen because I don't go under the home!) pictures of small animals that have actually torn INTO the ducts under the home and made a nice, cozy nest for themselves....complete with blowing warm air....nice... well, nice for them, but not nice for the homeowner. 
   We are looking at the furnace to see if it has been serviced within the last year.  Have the wall heaters been vacuumed out? Years, and years ago....1997, to be exact,my husband and I rented an older home in Vancouver.  It was a cold, wet winter, and we left to go do something... I don't remember what, but I do remember coming home after dark to see a fire truck in front of our home....lights shining.  We pretty much freaked out.  My younger brother was staying with us and fell asleep on the couch.  He woke up to go to his room, opened the door, and the wall was on FIRE!  He ran to the kitchen, called 911 (no cell phones back then folks), and filled pans with water to try to put it out.  Long story short, his room was on fire!  That room had cedar walls which helped slow down how fast the fire could have gone, and his throwing water on the wall helped, and the fact that the fire station was very close was helpful.  That room was shot with smoke damage, but it could have been much worse.  The culprit of the fire?  Dust, and dander build up in the (very old) wall heater.  All heating sources have a danger, part of being a homeowner is maintaining your heating sources. If you have a fireplace, and are using it (even if it just occasionally), please have it cleaned by a chimney company.  I've had clients call me because of chimney fires.... Don't burn paper products in your fireplace...no papers, no wrapping paper, no bills, no boxes, etc...  a fireplace is not an incinerator...it's for wood only.  
  Other things that a Realtor will be looking for (and homeowners should be doing/checking out)... new batteries in the smoke detectors because well, christmas trees, making sure that the electrical panels aren't recalled, making sure the home has carbon monoxide detectors (one on every level, and no higher than your knee), checking out the water heater for earthquake straps & overflow pipe, and don't forget the roof!  Especially this time of year, we'll be looking at the roof for any missing shingles too.

If you are a homeowner, and thinking about selling your home, now is a great time to go over your home with your favorite Realtor, or have an inspector come through your home.  If you need an inspector name/number, give me a holler...  I can give you a couple that are very good.  Any questions about anything you read here?  I'm hear to answer your questions!
If you are thinking about buying a home, now is the time to be out there looking for the best home for your family, and to be able to have that inspection during a time of year that you maybe hadn't thought about.  
Start the new year with your very own home adventure.  I am always happy, and excited, to help!  Now, if you don't mind... Rudolph the Red-Nosed Reindeer is on and I have to sing (badly, and off-key) along.....  
  
Information is power,  and as always...May the odds be ever in your favor out there....  If you are looking for a real estate agent, I would love to be able to help you.  
If you have any questions, or comments please get a hold of me anytime.  You can call, text, email, or even facebook me.  Please remember that while I mean these emails/blogs to be helpful, and educational, I am still hoping that you will call, or email me as I would be honored to help you with your home buying, or home selling adventure.

    As always....this is just a quick overview.... again...and I can't say this enough...please remember that your agent is NOT a salesperson, and should not be acting like one.  Real Estate is not really about houses, it is about relationships.  Your agent, and your lender work for YOU.  You drive the bus...we are merely GPS to help you get to your goals.  Like the classes, this weekly blog email is to help you with your home adventure.  The goal is to be informative and non-promotional.  :-)  We are, however, hoping you will call and want us to help with your adventure.  

 
Thank you again for your business and your referrals!!  ...and thank you for referring these classes to your friends, family, and co-workers. 
 
 ....disclaimer...if you have already purchased a home, or would no longer like to receive these emails, please let me know and I will be happy to remove you from any further mailings... 
 
 
Upcoming Topics:
What do I need to buy a home,

What if I don't have a Down Payment? .....  &....
What is closing costs?  
Debt to Income Ratios....What is this?


Last Week:  Winter time & buying (or not buying) a home....


Have a great day, and I will talk to you soon,   
;-D   
Tracie DeMars   
Real Estate broker    
Re/Max - Van Mall   
360/ 903-3504 cell   
360/ 882-3600 fax   
www.traciedemars.com   
traciedemars@aol.com   
    
“Interested in free and non promotional home education classes?  Go to www.learningtobuyahome.com or www.freehomebuyerclasses.com for local upcoming home buyer and home SELLER classes, or facebook: Tracie DeMars Real Estate for my home buyer education blog.”
"Listen to the mustn'ts, child. Listen to the don'ts. Listen to the shouldn'ts, the impossibles, the won'ts. Listen to the never haves, then listen close to me... Anything can happen, child. Anything can be."    
   - Shel Silverstein, American poet, cartoonist and composer, (1930 - 1999).