​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