Rick Sheppard, RE/MAX Achievers Inc.

Author and financial expert Dave Ramsey says it best "Is selling something as expensive as a house really as easy as planting a sign in your yard and waiting for buyers to stroll in? (Somewhere a real estate agent is laughing.) But seriously, selling a house is one time when you should always have a professional on board." If you're still thinking about selling your own home get my ebook published on Amazon to learn how a seasoned real estate pro gets it done - FSBO IT: A Broker's Guide to Selling your Own Home - https://rem.ax/fsboit

Home loan rates will continue to increase causing payments to rise, fewer buyers in the market, and home price increases to level off. This has started already and is expected to continue throughout the rest of the year. To stay current on local market conditions, check https://rem.ax/mchousingreports for our informative housing market reports.

Just as homes, home sellers, and home buyers vary, so do agents. Some will be good, some not so good. So the key question - how do you make sure you don’t end up with the wrong real estate agent? If you know and trust someone who has recently used the services of an agent, ask if they would recommend that agent. And also ask why. Such referrals are a great way to get started. Vet agents online. Do they have a website? Is it robust – current and informative? Does it provide some insight as to the agent’s personality, experience, communication skills, and business acumen? Check client testimonials on sites like Google, Yelp and Zillow. It’s one thing for an agent to pat himself on the back but much more impactful when actual clients praise an agent’s services. Interview an agent or agents in person. Click here to finish reading https://rem.ax/wrongagent.

Before you meet with the lender, learn important financing terms such as origination fee, discount points, and lock period. This way you’ll be prepared to ask relevant questions. Here are some examples: • Will I be charged an origination fee? If so, how much? • Will I be charged separate discount points? If so, how much? • Will I be charged any of these separate fees: processing, document preparation, underwriting, tax service, or flood certification? • Will there be additional fees at closing? • Is there a lock period with this loan? If so, how long? • Are there any penalties if I pay off the note early? • What is the interest rate I’ll be charged, and is it fixed or variable? • What term (length) of loan provides the best payment for my budget? Hire a lender that has been referred to you by a Realtor, family or friend! An inexperienced lender can cause you to miss out on that dream home!

. Even smart investors make mistakes. Here are three common mistakes and what you should do instead: • Not Doing Your Homework. Evaluate your financial situation and understand the right numbers to calculate. Learn the basics about cash flow, appreciation, and loan amortization. • Not finding the right property. Do a thorough search, including “off Multiple Listing Service” deals and best buys, to find the right property for you. Work with a REALTOR® who is an Investor Specialist. He or she can help find a good investment property and answer your questions. • Failing to get a professional inspection. You need to know if there have been problems with the property and that they have been or can be properly addressed. I have extensive experience in real estate investing - representing clients and with my own investing. Feel free to call me with your questions – I’ll be happy to help!

Buying your first home is a big step and making mistakes can cost you thousands of dollars. Here are three mistakes you should avoid: - Not having a professional home inspection. Review the report carefully so you don’t buy a home with serious issues, such as pests, mold, or water damage. - Not doing a “walk-through”. Visit the property, preferably a day or two before settlement, after all the furnishings have been removed so you won’t have any surprises later. - Not understanding the contract. A REALTOR® who serves as your “Buyer’s Representative” will help you understand your rights and responsibilities and guide you through the process. Want to learn more about the home buying process? Check out my various real estate blogs at my website: ricksheppard.com. And feel free to reach out to me directly if you have any specific questions.

Yes. In fact, one out of four first-time homebuyers uses a gift to make the down payment. Tax law allows gifts of up to $15,000 a year in 2020 without tax consequences to the giver or recipient. (The amount is adjusted annually so search IRS.gov for “gift tax” for the current figure.) You could get a gift from two parents or two friends (for $30,000) without paying a gift tax. Using a gift for a down payment helps you buy a home, whether you’re obtaining a Federal Housing Administration (FHA) mortgage or not. The best advice is to contact a knowledgeable REALTOR® and discuss this subject before you start looking at homes.

You need to do a walk-through with your REALTOR® typically within 24 hours of your closing to make sure the home is in the condition specified in the contract. You’ll want to look at each room (which now should be empty and clean), examine the hardwood floors, check the ceilings for leaks (in case there has been a recent storm), test the windows, turn on the appliances etc. to ensure there aren’t any surprises. You also want to check on the completion of any negotiated repairs or replacements that you and the seller agreed upon. If you find any problems, your REALTOR® will help you determine what you should pursue (such as possible new leak under the sink) with the seller or what you can handle yourself. If you’re buying a new home, you need to visit the property with the builder’s representative and create a “punch list” of items that are not completed to discuss at closing. You should get a written confirmation on when the builder will complete those items.

Make no mistake, kitchens have a huge impact on a home’s sale price. Statistically, home sellers get back as much as 85% of kitchen renovation costs in the final sale price. Conversely, buyers tend to deduct 5 times the anticipated kitchen renovation costs from their offered price. Example: If you invest $20,000 in a kitchen remodel, the value of your home will increase by $17,000. And you’ll get to enjoy your new kitchen until you eventually sell. But if you do nothing, and a buyer decides that, at a minimum, he’ll need to replace the old countertop with a $2000 granite top, he’ll deduct $8000 from his offered price. If you’re on a tight budget, there are some inexpensive steps you can take to make a dull and dated kitchen pop. Give cabinets a facelift with a fresh coat of paint on the cabinet doors and replace cabinet hardware. Contact me for me ideas.

A home inspection is performed after the buyer and seller have entered into a written contract. It’s a review of the home’s condition, from the foundation to the roof and everything in between. The point is to identify, in a written report, any area of the home that needs repair or replacement. The report is then used to set the final price and terms of the purchase. The buyer may choose to buy the house and make the repairs or walk away from the property if the costs would be too high and the sellers refuse to lower the price or make the repairs themselves. The earnest money is returned to the buyer provided the contract has a “sale contingent on inspection” clause. Want to learn more? Just give me a call or send a text and I’ll be happy to send you my free and informative Home Buyer Guide and Home Seller Guide. These guides are updated 4 times each year, which keeps the info fresh and relevant!

Many realtors send mailings to let people know when a home goes on the market or is recently sold. But you’re right to question the logic in a listing agent patting themselves on the back for selling a home in the manner you mentioned. Two things seem obvious here: 1) The listing agent underpriced the home, meaning their seller client likely left money on the table, and 2) By accepting an offer “BEFORE” the home “hit the market”, the listing agent and seller didn’t allow the basic law of supply and demand to play out. Might they have gotten a better price or better terms from another buyer? They’ll never know because the home wasn’t permitted to percolate a bit on the open market. Bottom line: if you find yourself conversing with an agent who is touting their ability to “quick sell” a home, you may want to converse with a few more agents before deciding on who you want to sell your home. And of course, I’m always available to answer your home selling and home buying questions.

Remember, everything you ask from a seller is a concession in their mind. Whether you’re asking them to lower the price, make a decorating allowance or contribute to your closing costs, they are primarily interested in the bottom-line dollar proceeds at closing. Here are a few things to keep in mind: Negotiations can be tough if you try to get the seller to both lower the price and also make other concessions or contributions to your closing costs too. It can actually compromise your ability to come to an agreement. Appraisers are now asked to consider the dollar value of any seller concessions when they determine the value of the home you are purchasing. Lenders will limit the contributions made by the seller without lowering your loan amount. It is important for you to ask your lender what they will allow the seller to pay.

Like most things in a capitalistic environment, value is based on the Law of Supply and Demand. That is, market value is simply what a buyer is willing to pay and a seller is willing to accept. This answer assumes that both parties are well informed about closed home sales that are “comparable” based on four important factors: 1.Location. Even within the same city or county, different neighborhoods can have completely different market values. Be sure to compare prices of recent sales in the same or nearby neighborhood. 2.Age. Comparable homes should be built within a few years of yours. Building codes and style trends vary with time and can greatly affect value. 3.Size of home and yard. Buyers can be sensitive to the price per square foot. Your home may be unique, but buyers will compare the price per square foot with neighboring properties for both the home and the yard. 4.Property condition. As the seller, you have many opportunities to increase the attractiveness of your home.

When sellers or their real estate agent overlook any of the important ingredients of a successful sale, a home can linger on the market. Here are three reasons why a home doesn’t sell quickly: 1. Asking price is too high. When a home first comes on the market, the list price must be at or near the market value so buyers will want to see it, then put in an offer. If you would like to know your home’s current value, I will gladly conduct a Maximum Home Value Audit. I conduct this in-depth analysis for no charge to identify your home’s highest possible value. 2. Poor marketing plan. Many real estate agents will do nothing more than put a sign in the yard and property details into the MLS. When I am hired to sell a home, I use a detailed marketing plan to reach more potential buyers. This includes paid Facebook and internet advertising, communicating with my extensive and ongoing buyer list, and reaching out to my various industry and buyer contacts. 3. Home is not staged properly.

First, decide if you want to keep your home or sell it before the foreclosure is complete. A talk with one or more of these professionals can help you make that decision: • A REALTOR® can help you review your selling options, which may include listing and selling your home via a short sale. • A Foreclosure Counselor will help you evaluate your current financial situation and can serve as an advocate with your bank. • A Tax Expert will advise you if you do a short sale or deed-in-lieu of foreclosure (both are avenues to consider if you no longer wish to own your home) since forgiveness of debt may be considered taxable income. •A Credit Counselor can help you develop a plan to address your current financial difficulty and put a plan in place to avoid future difficulty. They can also help you repair your credit score. This is good stuff whether you decide to keep your home or sell it. •An Attorney can provide guidance to help you if your lender has filed a foreclosure lawsuit

Multiple offers are a good thing – this can create a bidding atmosphere that can help your bottom line. But you can make a mistake if you don’t look at more than just the sales price being offered. Carefully weigh each buyer’s offer by considering these factors: ❖ Is the buyer pre-approved? Never take your home off the market without knowing that the buyer is financially able to purchase your home. Pre-qualified is not the same as pre-approved, it’s only the first step in getting approved. ❖ When do they want possession? When the buyer’s timing fits your preferences, it can make their offer more appealing. ❖ What repairs does the buyer expect before closing? Even if you are willing to make repairs, think about the time it will take before you accept. ❖ What items does the buyer expect to remain in the house? Buyers may request to keep appliances or wall-mounted televisions. Factor the cost of replacing these in your next home into the offer before accepting.

Here are three big tips you should consider when buying a home: • Understand how much home you can afford. Calculate the two numbers bankers and mortgage lenders use to determine the how much they will loan to you: payment-to-income ratio and debt-to-income ratio. • Understand the basics of home financing. Your ability to afford a home will be related to its price, your down payment (and the amount you’ll finance), the interest rate and closing costs pertinent to your loan, the term and the type of your loan. Study these items and the relationship between them. • Save thousands by making your own mortgage acceleration payment schedule. Take your current monthly mortgage payment of principal and interest and multiply that number by 13. Divide that total by 12 to get your new “accelerated” monthly payment. Want to learn more about the home buying and financing process? Call/Text me to get a copy of my just released Spring, 2022 Home Buyer Guide.

It’s true. For the past 18 months or so, there have been many more homebuyers than homes for sale. This has led to rising prices, multiple offers on the same property, and frustrated buyers. Here are 3 tips to help you win in this competitive market: • Be prepared. Have your financing in place and have online home searches set up so you receive alerts as soon as homes go on the market. Align yourself with a full time, seasoned realtor who can get you into homes as soon as they become available. • Be ready to make a decision. If a home you are interested in is priced right, you likely won’t have time to “come back for a second look next weekend”. Be ready to sign an offer contract on the day you first view a home. • Be flexible with your offer terms. If you need financing, use conventional over FHA, VA or USDA if possible. Consider putting a large, good faith deposit down. Offer to accept junk in the attic, garage or shed so the seller won’t need to clean out those areas.

It’s tough being a home buyer and has been since before the pandemic started. At least the government was suppressing rates – down as low as the mid to high 2% range. But that has been changing with rates now hovering around 5%. Here’s what you can expect throughout the rest of the year… * Government rate suppression is over - expect the Fed to incrementally raise rates as a means to slow the current high level of inflation. We could see rates in the 6-6.5% range by year’s end. * Higher rates mean fewer qualified buyers, which will level off home sales volume and prices. Not necessarily lower prices, just reduce price appreciation. * And lower sales volume will lead to rising inventory, further leveling off prices and providing more choices for home buyers. Bottom line: 5-6% interest rates are still quite attractive, historically speaking. As we enter the Summer and Fall seasons, you’ll have more homes to choose from. And as long as you financially qualify