Upcoming Free (& non-promotional) Home Buyer Classes:
Saturday, January 23rd, from 11am-2pm (ish)
        Vancouver YMCA, conference room
  11324 NE 51st Circle, Vancouver WA (corner of SR500 & Gher Road/112th Ave)

Monday night, February 8th, 5pm-8pm (ish)
       Marshall Community Center, conference room
    1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, February 13th, 9am-12pm (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....                                                                                  
....we also have home seller classes available too...link on left on website
                  
Remember...with reservation...we will throw in lunch, or dinner!  :-D
~~~~~~~~~

Hi there!  

   Almost one month into the new year, and I am hearing a reoccurring theme in the classes...rents are going up, and up...and there doesn't seem to be any ceiling for them.  :-(  Sadly, everything we are seeing shows that they will continue to rise this year.  Per the Clark County Housing authority, Clark County has a 2% vacancy rate....that's crazy!  Unfortunately it also explains why rental rates continue to rise.  It sucks...Why pay $1500 for rent, when you can have a house for that?  The lender who teaches the classes with me, Chris Berg (pinnacle mortgage 503-320-0925, cberg@pcmloan.com), posted a status on his facebook this week that I thought might interest everyone.  This week I am going to 'steal' his post for you.  I thought it was a good status for this weeks blog, and for what we are hearing a lot about at the classes...

LEARN THE 5 MISTAKES THAT FIRST TIME HOMEBUYERS MAKE THAT COSTS THEM THOUSANDS
1) Internet Credit Reports: There are dozens of companies dying to get you to allow them to pull your credit so that they can charge you for it then sell your credit profiles to any company willing to pay for it. After all of that you get a credit report with a score on it that is almost always different than what you lender will get. Learn how to get an actual copy of your report.
2) Prequalification instead of a Preapproval: I see this one every day. A buyer goes online and fills out a 5 minute form and is told by some online lender to go find a house to buy. The buyer pays for an inspection, an appraisal, and an earnest money deposit only to find out that their lender only pulled a credit report and never analyzed income. Now the buyer doesn't qualify and has spent thousands for nothing. This is a prequalification, not a preapproval. There is a huge difference, learn what they are.
3) Letting your lender pick your loan program: Did you know that not all lenders offer all the loan programs that you may qualify for? When you apply for a mortgage many lenders will tell you only about the loan program that they want you to use instead of the loan programs that they do not offer. Knowing the loan programs available before you pick a lender may be the difference between you being able to buy a home now instead of when they tell you that you can. Learn the pros and cons of all the major loan programs even the zero down payment loans they don’t tell you about!
4) Chasing rainbows: Just because you see a show on buying and remodeling homes on TV does not mean that there are loans available to do that. Knowing what you can and cannot do in this market can save you money and countless hours searching for the right home. Learn what is possible and what is not.
5) Not having the proper Education: It amazes me that most first time homebuyers spend more time looking at a fast food menu that they have seen a million times than they do picking out their loan, their lender, or a Realtor. Who you hire to help you buy a home is as importing as finding the home itself. Find out what is available to you instead of calling somebody who's face you saw on a bus or shopping cart.
Take a couple hours to attend one of our classes and learn all the major loan programs and what to expect when buying a home...the paperwork involved, the steps, and the process.  Good for Washington and Oregon taught by a licensed and experienced loan officer, and experienced realtor.
   
        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.... 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... 
 
 
Upcoming Topics:  Septic vs Sewer? 
                  Interview Questions to Ask Your Realtor?
                         Where do I go online to find homes, and what does those statuses mean?  

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 buyer classes?  Go to www.traciedemars.com  for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer 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).
​

Upcoming Free (& non-promotional) Home Buyer Classes:
Thursday night, January 14th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, January 23rd, 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
~~~~~~~~~

Hi there!  

   Wow...David Bowie passed... One of my all time favorite movies is Labyrinth, so let's give some love out to the Goblin King.  I admit that I tried pretty hard to name my son, Jareth, but alas...my husband wouldn't let me.  LOL  I do have a cat named Ludo though!  I want you to have a great week, and just know that...you remind me of the babe...   
                                                                    
   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 a buyers 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, 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 an earnest money.  Again though....this is money that would go towards your down payment when you close.


Inspection
   The inspection should be completed within 7 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. The average inspection cost is $350-$400. 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. Remember that you, as the buyer and your buyer's agent 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.

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 $500-$600. 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. 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. The home can be sold for no more than the appraisal price. If this happens, the earnest money will be returned to the buyer, but the inspection and appraisal fee is lost. 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, this fee can be returned to 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 NHF grant.  

What is the timeline?
Offer accepted (inspection period begins)
- home is pending sale
Earnest money is due (refundable, based on 4 legal reasons to back out of the agreement)
- within 3 days
Inspection
- within 10 calendar days
- Approximately $350-$400 (non-refundable)
Appraisal
- within 7 days of agreed upon inspection response
- $500-$600 (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....that is an email for a different week. :-)  


        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.... 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... 
 
 
Upcoming Topics:  Septic vs Sewer or  Where do I go online to find homes, and what does those statuses mean?  

Last Week:   New Home....building or buy existing???                   
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 buyer classes?  Go to www.traciedemars.com  for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer 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).
​

Upcoming Free (& non-promotional) Home Buyer Classes:

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

Thursday night, January 14th , from 5pm-8pm (ish)
       Marshall Community Center, conference room
       1009 E. McLoughlin Blvd, Vancouver WA (kitty corner from Clark College)

Saturday, January 23rd, 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
~~~~~~~~~
                                                                    
...and happy new year!  

   Wow, 2016...didn't we just have a new years?  In real estate, I am always thinking 6-8 weeks ahead, and I think that this tends to make the year(s) go by faster...or maybe it's just me.  :-)  


This week we are going to talk a bit about new homes since I had a couple of people ask me about this.  I want to thank you though first since I truly had no idea what to blog about this week!  I have had a couple of you email me some questions that I am happy to go over, and it gives me some fodder for the next couple of weeks too.  Whew!!  

New Homes...

First thing you need to understand is that there are 3 values to a home...the tax appraised value (typically the lowest value & based on information at least a year old), the building value (what it would cost to rebuild your home in case of destruction), and market value (what your home is worth on the open market if you were to sell it).  When the market fell, market value slipped to at, or below tax value.  As the market has recovered, tax value is going up, and so has market value...by a lot.  When the market was HOT, builders were hot as well, and when the market crashed...so did a lot of builders because it was a lot cheaper to buy an older home rather than have one built.  Now, of course, as the market as recovered, so have many of the builders, and the numbers are close enough between the two that many people are building again.  The housing inventory has also helped the builders since the inventory of homes is so low, that for many people, buying (or having built) a new home seems like an excellent alternative rather than purchasing an older one.  

New Home Considerations

   Some of the cons of the new homes are yard size.  Due to land use laws that were passed after the market crash, builder lot sizes are a lot smaller so while you will get a bigger house, but smaller yard.  You will also get a smaller garage.  New homes build garages for smaller cars....not mini-vans & trucks...and some full size cars may be pretty tight.  

   One of the other cons are interest rates...please remember that your lender can only lock in an interest rate for 30 days (45 with some extra charges).  From concept to finish it can take 4-6 months to build a home...with a lot of that time waiting for permits, and the for the county inspectors to come out and sign off on the homes stages.  Actual building time goes fairly quickly.  So...you won't be looking at the interest rates of today, and if there is a interest rate jump you could be out a house since your pre-approval is based on a monthly payment...not a purchase price.  Higher interest rates = higher mortgage payment.  What happens if you want a new home and don't want a 4-6 month wait?

Spec Homes...

   Some builders build 'spec homes', and these are already finished homes that they are selling.  Since the home is finished you won't be adding anything else unless it is appliances or AC units. You will have a standard close time of 30-50 days (depending on your loan type).  
   Some builders list these 'spec' homes in framing condition.  The listed price is the price for the finished product, not for the homes current condition.  :-)  Any, and all, upgrades you decide to make for the home though WILL increase the final purchase price.  The wait time for closing on this home may be about 6-8 weeks...depending upon the home and the finish time needed.  I have a client (hi!) doing this right now.  We found a home that they really like that is only in framing stage.  The home has a ton of upgrades as standard (local builder), and we were able to write in AC, 2.5% in closing costs, gas plumbing to the back patio, and a couple of other things....and they are using their own lender too.  The home will be finished about early-mid February, so their interest rate can be locked in a week or so.  New home without all the wait...  After the crash though, not too many builders do spec homes anymore though...and with the lack of home inventory, for builders that do start the permit process for a spec home end up selling it pretty quickly before it hits the market.  The market is currently looking pretty rosy for builders, and I do know of some builders right now that aren't really giving up anything (including closing costs) because there is a demand for their homes.  It's all kind of 'hit and miss'. 

On the RMLS (remember that is THE place to go to when looking for homes...the rest of those sites are all marketing), you can see the difference by looking at the year built and the following:
New = built spec home ready to go
Undercon = home is under construction, but not finished yet.  Still time (maybe) to make some changes
Proposed = Not started, usually no permits yet.  Will take the full 4-6 months, but more options for you to choose.

All of these homes will be listed with a purchase price of the finished product.  Just remember that some builders will be more 'flexible' than others in terms of price, closing costs, and other changes.  
 
   With a new home you really have no idea how the house will 'settle'.  Most people (me included) buy a new house so they don't have to do a bunch of work on it.  Sometimes this works...and sometimes it doesn't.  One of my friends lives in a home as old as mine who has had zero problems with her home, and hasn't really had to do anything other than the regular general maintenance, while I, on the other hand, have had SO MANY problems with our home and recently saved up three years to re-do the kitchen because my cabinets were, quite literally, falling apart.  Our homes are only 14-15 years old!  We have also had to re-do all the flooring, some of the plumbing, the furnace, and a couple of other things as well.  The difference?  The builder and the subcontractors they hired.  It pays to use a reputable builder, and cheaper is not better...unless you don't plan to be there long, or if you plan to turn it into a rental.  There are definitely some builders with better reputations than others, and with more longevity to their homes.  Don't get caught up in 'flash'....you need quality build over pretty flash.  



   You have no idea how the neighborhood is going to 'shake out'.  Maybe it starts out as all homeowners, and 5 years later you are surrounded by renters.  The house next door to mine has been bought & sold 5 times in 13 years!  We have had good neighbors...and not so great. 


   The nice thing about buying a new home?  This is YOUR home...(in most cases) you made the choices, and helped with the planning.  You have all the latest energy efficient insulation, products, appliances.  You have the newest technologies.  You have the 30 year roof (whew!  Won't have to replace that for awhile), the warranties for the appliances, the knowledge of not having had anyone in there before you...it is a fresh slate, and the peace of mind that comes with knowing that there is nothing 'wrong' or that 'needs to be done' with the home.  These are HUGE considerations!  We had our home built, and yes, I would do it again (just with a different builder).  LOL  :-)  In fact, my family is currently in process to have a home built on land.  There is a lot more to it when you are going that route vs a builder in a development.  

Builders....

   Our area has been, and still is, one of the top markets in the nation.  If you look around you will notice some national builders have decided to come play in our neck of the woods.  National builders tend to be less 'persuasive' with what they will do for the buyer, and tend to be more 'you HAVE to use OUR lender'.  The builder themselves will allow less buyer input since they are national, and not local.  I don't agree with the builder lender, and this is why...that lender works FOR the builder, and NOT you!  That lender is tied to the builder and wants to please them as that is where their bread is buttered.  That lender isn't really too concerned with having your referrals...would they like them?  Of course!  Will it make or break them if you do, or don't?  Not really...they have the builder.  The builder is their client...NOT YOU!  ...and this is my issue with them.  

   Local builders are more in tuned with the community.  They have more pride in turning out quality homes because YOUR referrals really do matter to them.  Local builders will be more lenient with closing costs, and local lenders.  Local builders will value your input and allow you make some changes to the home.  The home is more personally....yours.  Our local builders are also much more energy efficient than the national builders.  :-)  

   I am not saying that the national builders are bad, or bad quality....they are (for the most part) good homes.  The only thing you need to remember with national builders is that they will lack that 'personal' touch that allows the local builders more flexibility in working with buyers.  
   There are good and bad builders of both local and national builders...and really a home is only as good as the subcontractors that are hired....not the builder themselves.  


Finding a New Home...

   Use your buyers agent!  Remember that the builders lender works FOR the builder, and so does the builders real estate agent...they both work FOR the builder, and that is their number one client....NOT YOU!  Please remember that, as the buyer, YOU are driving the bus...YOU are the boss, and the number one client.  Lenders and real estate agents?  We are like GPS...just helping you to get there!  :-)  Not all new homes are on the market...most of them are, but as agents, we hear about developments coming up a lot sooner than the general public.  

The best time to buy a new home?
   Sounds weird, but historically, the best time is either at the very beginning of a development when the builder wants to get people in (no one wants to be 'first'), and at the end of the development when they just want to get it finished so they can fully move on to the next one.  Sometimes the end of the year is also good if the builder is trying to meet some numbers, but this is very 'iffy' and shouldn't be counted on. 

Is it better to buy new vs buying already built?
   This really is a personal decision.  Some folks prefer a new home, but some folks prefer the character that comes with an older home.  It is cheaper to buy a home already built than it is to have one built, but there is usually some items that you, the homeowner, will have to deal with on an existing home.  There is also the yard issue as new homes tend to have smaller, or no yards.  New homes also have smaller garages, larger bedrooms, but smaller family spaces, and HOA's...as new developments have HOA's, and most older neighborhoods don't.  Always weigh your pros and cons and choose what is best for you, and your family.  Talk with your buyers agent...ask questions... that's what I am here for.    

        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.... 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... 
 
 
Upcoming Topics:  Septic vs Sewer & What is 'escrow'?  

Last Week:   WHEN do you get the keys???                   
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 buyer classes?  Go to www.traciedemars.com  for local upcoming classes, or facebook: Tracie DeMars Real Estate for my home buyer 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).
​