All posts by Bettina Settles

My clients appreciate my compassion, empathetic nature when dealing with them and their transaction but more than willing to educate in a simple way to make a complex transaction understood. Being accessible and cooperative when it comes to dealing with clients and cooperative agents has earned me high praises from both. They have learned that I am dedicated, honest, and knowledgeable and can become very persuasive when it comes when working a transaction for my clients.
buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, Uncategorized

BUYERS, HOW TO GET THE DEAL DONE

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As I was reviewing my email I  ran across a blog that caught my attention. The topic was about buyers on how they can and sometimes do ruin their own real estate deals. As I read through the blog I remembered some of my buyer clients that almost did just that.

Even before most buyers are contacting an agent to help them buy a home, they try to educate themselves via the internet but sometimes forget the basic first step to get started. The mortgage pre-qualification.

will it be enough?Not knowing what they can afford in the beginning they begin looking at homes online that are priced higher than their financial ability and sooner or later they become disappointed when they discover they cannot have the home of their dreams. With so many homes now listed as a short sale and REO’s (bank owned), a pre- approval is a must to submit an offer.

With the market as it is today some want to buy a castle for the price of a shack and try to low-ball an already lower than market value home. They will have their offer either not countered or not accepted. When they find what they are looking for and do not make an offer because they think they can get a better deal with the next house, house hunting now turns into a marathon and not a sprint. Eventually they will find themselves under the gun, having to move and just buy anything, just to be buying something. Many times this might lead to a never ending money pit of repairs and updates. Then there are the ones who expect an undervalued home to have absolutely no issues and expect it to be in move in condition. They are surprised that the carpet is not clean, not their color choice, that some of the appliances are missing, some drywall has to be repaired, or maybe that the roof needs replacing within less than a year.

So how to avoid all of the heartaches:

  • Let’s get pre-approved! Know what you can truly afford and what you might have to bring to the table at the time of closing. Please do not confuse this with pre-qualification.
  • Make a list of what you are looking for in a house. What is most important and what can you live without when it comes down to it.
  • What commute are you willing to have? Are you wanting to move to a rural area or are you a city dweller?
  • Are you willing to do some repairs? And how much? Or do you want a move-in home.

These are all decisions that should be made before you start looking for your home. The hunt will go a lot faster and smother.

commitment, Communication, education, Inspiration, organizing, Team work, tips

FOLLOW THROUGH WITH COMMITMENTS YOU HAVE MADE

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Business Team Signing ContractHow many times do you find yourself unable to follow through with commitments you made to others? This could apply to work or personal commitments. Every day I see good people who have great intentions but don’t follow thought with a commitment they made.

Just today, I talked with someone on the West Coast who was hired over 10 days ago to accomplish a very simple task that only takes a few days to accomplish. During my follow-up with them I found out they have not yet started the task. I guess this person had great intentions but their actions speak louder.

When you cannot follow through with a commitment you made, what do you do? Just ignore it? Do you ask for help? Do you communicate your issue?

First, don’t ignore it! Communicate immediately! Most of the time we realize early on when we have over booked ourselves. Communicate the situation right from the beginning and don’t wait till the last minute. The person you committed to will look more favorably toward you when you speak up early than when you do not communicate.

Second, offer a solution.  You made the commitment so be part of the solution and not the potential issue.

 

Now look at the total situation.

What do I need to do to be able to follow through with commitments I have made?

What do I need to do to assure that this will not happen again in the future?

Do I need to hire more people?

Do I need to cut down on the work I am doing?

Do I need to ask for help?

 

Remember, people will judge you by your actions, not your intentions.  You may have a heart of gold – but so does a hard-boiled egg.  ~Author Unknown

buying, commitment, Communication, education, Inspiration, organizing, planning, selling, Team work, tips

CENTRAL INDIANA HOME STATISTIC UPDATE FOR MARCH

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The Central Indiana’s housing inventory still remains low just like the rest of the nation, even as we have buyers ready to pounce due to the still low interest rate. New Listings in central Indiana increased 3.8 percent to 3,968. Pending or sales in escrow are down by 7.3 % and the overall Inventory levels reduced by 6.0%. I am not surprised! Homeowners are still a little gushy when it comes to listing their home and due that we currently have an inventory of 4.7 months. That is down by 14.9%.

Right now between 7.3% and 8.5% of pending or in-escrow offers are not closing. The reason could be that the property is not passing inspections, buyer cannot get financed for some reason, the property does not appraise for the agreed purchase price, or the buyers are not willing to or not able to bring additional money to the table. When a property closes the price is on average about 92.4% of the original asking price.

In the nearby area of Hancock County, the number of properties available increased 22.1% over last year. Morgan County did not perform as well showing the largest decrease in available listings, indicating a 21.2% loss over last year. Hamilton County has seen the largest increase in home pricing over last year with 26.1% in comparison to Decatur County where home prices decreased over last year by 24%.

List of Counties from the highest % increase in available properties to the least:

County

new listings
Hancock County

22.1
Johnson County

19.2
Boone County

14.6
Hamilton County

12.1
Shelby County

8.3
Hendricks County

5.1
Marion County

0.3
Madison County

-8.1
Decatur County

-10.8
Brown County

-12.9
Putnam County

-15.7
Montgomery County

-19.6
Morgan County

-21.2

 

County from highest % increase to the lowest when it comes to median sales price of home:

 

County

Med Sales price
Hamilton County

26.1
Putnam County

24.7
Boone County

24.1
Johnson County

11.3
Marion County

9.8
Morgan County

2.2
Madison County

-1
Hendricks County

-1.4
Hancock County

-1.8
Shelby County

-6.4
Montgomery County

-15.4
Brown County

-16
Decatur County

-24
commitment, Communication, education, Inspiration, organizing, Team work, tips

RULES YOU SHOULD PUT INTO YOUR LEASE AGREEMENT

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inboxHaving reviewed so many lease agreements, I have seen some that were structured very well and others that concerned potential investment buyers to a point that they decided not to pursue that property. After experiencing leases that varied so much in quality I decided to pull together some basic information that I believe should be covered in a lease agreement.

First a quick disclosure! I am NOT an attorney and this is not intended to be legal advice. You should seek out the legal and professional advice of a Real Estate Attorney who deals with Landlord and Tenant laws within your state.

Some of the basic items you should include in your lease are just basic house rules such as no illegal activity of any kind, taking out the trash, cleaning the unit on regular basis, and lost key procedure.

Other things you should include are the due date of the rent (it is the tenant’s responsibility to get the rent paid ON TIME to the landlord). When there is a roommate who does not have their portion of the rent, the rent is still due in full and you are not negotiating between roommates. Include late payment information and do not accept cash. Only money orders or certified bank checks. You can accept personal checks but make them aware that when a personal check bounces you will no longer accept them. Only money orders or bank checks!

When a tenant is responsible for the utility payments include that you are not the one who is responsible for any utility outage when they don’t pay for their utilities or a storm disrupts their services. They need to contact the utility company directly.

Add that when you need to call for service person for something like clearing a drain, and it is found that they were negligent because something was stuffed down the drain that should not have been there, you will charge them for the damages.

Include that you don’t allow for satellite dish installation without prior approval. Many times the dish companies will install them on the roof which could cause roof damages. You could also end up with many of them placed all around which could be unsightly.

Make the tenants aware that when they have a break-in to call the police first and the second call should be to their insurance carrier, not you. Include that they should secure all the windows and doors when leaving the house.

Other things to add to a lease agreement are things like:

  • No inoperable vehicles. When a vehicle is not working get it fixed within a specified time or it will get towed at vehicle owner’s expense.
  • No grilling inside the house or within several feet of the house outside.
  • No inside furniture outside.
  • No open flames inside the house.
  • Get tenant insurance. The owner / landlord is not responsible for the loss of tenant’s belongings.

I can think of many other things to add to a lease agreement and when I see a 2 page lease agreement I can assume something is missing.

buying, commitment, Communication, education, Inspiration, organizing, planning, selling, Short sale, Team work, tips

BUYER’S URBAN BUYING TREND IS NOT SLOWING DOWN

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With the downtrend of the market many buyers, first time and seasoned buyers, are rethinking the location of where they will buy their home. Many families moved to the suburbs for various reasons and left the urban lifestyle behind.

The tide is changing and more and more buyers are moving from the suburbs back into the urban areas. There are many reasons why the change in migration. Looking at the buyers, who are currently moving back and planning on becoming urbanites, the reasons are very different but also similar at the same time.

urbanSome of them are looking for the connectivity and closeness of work, home and play. They can just keep the car parked and maybe either walk or take the bicycle to work. Others might just look for the entertainment and closeness to shopping and friends.

I hear many of them talk about the travel time that is spent traveling from their suburban home to their work. Most of the time they would like to spend this driving time with friends or family rather than sitting in the car. Looking at the overall trend the migration from the suburbs to the urban areas will have a steady flow. Suburban lifestyle is not dead by far but the face of the areas will take on a different look.

buying, commitment, Communication, education, Inspiration, selling, Short sale, Team work, tips

WHAT IS A QUALIFIED MORTGAGE (QM)?

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Question Mark Key on Computer KeyboardThe Dodd-Frank Wall Street Reform and Consumer Protection Act, which became federal law on July 21, 2010 used the term “qualified mortgage” (QM) first. You need to envision the QM loan like a funnel were everything needs to filter though and this funnel was given certain government guide lines it needs to meet. Some of this information came from the Qualified Mortgage website and I encourage every buyer to read up on the information.

The type of loan that comes out of the bottom of the funnel is a Qualified Mortgage (QM) that meets certain government standards:

  1. Borrowers Debt-To-Income (DTI) ratios are not to be HIGHER than 43% based on monthly gross income.
  2. Loan terms cannot be longer than 30 years.
  3. Borrowers lending points and fees cannot exceed 3% of the total amount borrowed.
  4. Cannot be a negative amortization loan.
  5. Cannot be an interest only loan.
  6. Cannot have a balloon payment.

Now that you and your mortgage have passed the federal QM rules, you now you need to be able to pass your lenders rules before they lend you the money. This is where I found some borrowers are confused.

Some of their rules might include:

  1. Acceptable credit rating
  2. Acceptable time on the job
  3. Proof of income
  4. Proof of expenses

It is also possible that the borrowers Debt-To-Income (DTI) ratio is LESS than the 43% required by the Feds but at the same time the lender may be using a DTI as little as 35%. This would cause you to not get approved for the loan. Yes, many lenders now use tighter rules than the federal QM guidelines to assure they will not have to foreclose on borrowers because they cannot pay for their mortgage.

When you have further questions feel free to contact us. We are not mortgage advisers but we have connections with some great advisers we seek for advice when we have questions ourselves.

commitment, Communication, education, Inspiration, planning, selling, Team work, tips

IS THE NEIGHBORS DOG STALLING THE SALE OF YOUR HOME?

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Terrier Dog and Cat Sitting on a SofaMany times I receive feedback like this from other agents when they show a property that is listed with me; “The buyer likes the house but the neighbors loud dog, trash, ugly yard is a total turn off”.

There is really not much you can do about your neighbors, especially when it comes to an over the top barking dog. I did see that some homes sold for much less than some of the area comps due to snarling, barking dogs. Many families with kids refuse to buy a home when there is a snarling, barking dog because they are afraid the dog will harm the kids. The barking dog can also be a turn off.

One thing you can do is get with your neighbor. Invite them over and let them hear from your side of the fence how their animals sound when you are trying to have a conversation. During the conversation you might suggest the dog trainer you used to help you train your dog or maybe the doggy daycare you take your dogs to when you are out. A worn out and tired dog is a happy and sleepy dog and has no time to bark.

Also do your homework. Many towns have ordinances in place that does address things like barking dogs. See what ordinance could apply in your case and if you can’t find one during a search contact the town and ask them. They will be glad to help. Not only check for any ordinances but also keep good records of problems just in case you decide to take the case to court. The best scenario would be when the two of you could work it out.

One thing you should not do is threaten the neighbor. Let’s keep it civil.

buying, commitment, Communication, education, Inspiration, organizing, planning, selling, Short sale, Team work, tips

“KNOW BEFORE YOU OWE” MORTGAGE FORMS

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Stack of DocumentsJust as we are getting familiar with the implemented 3 page Settlement Statement, formerly called the HUD-1 form, we will have another change to the new 5 page Closing Statement that must to be in place by August 15, 2015. The other form that will change is the Loan Estimate which will replace the old Good Faith Estimate. When you compare the two (3 page Settlement Statement and new 5 page Closing Statement) you will see some significant changes.

Some of the changes you will immediately notice:

  • The 5 page Closing Statement has to be in the borrower’s hands three business days before closing.
  • At the closing table the 5 page closing statement replaces the 3 page Settlement Statement HUD-1
  • Another change is the name from Settlement Statement to Closing Statement.
  • The Settlement Statement was broken down in line numbers from 100 to 1400
  • The Closing Statement is broken down in sections from A to J and in addition you will see the loan terms, Projected Payments, Cost at closing, loan cost, and any other cost you will face at the time of closing.

The reason for the changes to the Closing Statement is to help borrowers understand all the options that are available to them. They can then choose the deal that’s best for them and later at the closing table they can avoid costly surprises.

The Loan Estimate needs to be in the borrowers within three business days after they submit a loan application. This estimate provides a summary of the key loan terms like loan amount, interest rate, monthly principal, and interest. It also gives you the estimated loan and closing costs. All the lenders have to use the same form after August 15th 2015 and this will make it much simpler for the borrower to shop and compare different mortgages.

commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

A PICTURE IS WORTH MORE THAN A THOUSAND WORDS

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We all have heard that saying. Sometimes, what you intended to communicate with a picture is maybe not what others are understanding.

postiveWhen you use pictures for marketing make sure that the picture describes exactly what you intend. You do not want to communicate something negative when your intention was to communicate something positive or welcoming.

Think of it this way. You are new to the city and walking into an office you need to visit. You have the choice to speak with a person that is standing in the room with their arms crossed and have smile on their face or the other person that looks more relaxed with their arms by their side with a big smile on their face.  Personally I would bypass the first person and go straight for the person who appears relaxed with the big smile.

Now why would you use pictures in your marketing that communicates “Back Off” rather than “Welcome, how can I help you?”. Is it because others did it? Just because others do it does not mean it is the right thing to do.

Is it because you thought it looks great? Consider asking someone independent who will give you an honest opinion.

Just because a picture was taken by a professional photographer does not mean it is the right picture for your advertising. Sometimes less is more.

commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

TENANT SCREENING; A MUST WHEN RENTING

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working like a dogWhen you are a landlord there might be a time when you need to find a new tenant for your rental unit. Keep in mind the largest cash flow killer for a landlord is tenant turnover and the better you screen your tenants the better the chances of finding a tenant who will pay the rent and remain in the unit longer. This will help your cash flow.

One thing you should consider is running a separate credit and background check on each occupant who is over 18 years old. There are several great tenant screening companies out there who can help you with this. They not only run the credit and background check but also the potential tenant’s rental history. When you have a potential tenant call, make an appointment to meet with them. Preferably in person!

Have every potential tenant that is over 18 fill out a separate rental application. Compare the rental application information with their issued state ID.  Look for discrepancies or lapses in rental history or rental payment. When you find things like this ask about them.

Make certain you call the potential tenants previous landlords, not the current one. Call as far back in history as you can. This will give you a better idea as to whether they will be likely to pay the rent. Checking with the current landlord might not tell you the true relationship they had with this tenant because they are glad that they are moving. Just because they did not get along does not mean they will not get along with you.

Drive by the current rental unit the potential tenant is occupying right now. How do they take care of their current rental? Is it neat and clean or is it trashy? This will tell you how this potential tenant might take care of your rental. Run a zoning violation search against the rental the tenant currently occupies. This will also give you great insights on how they care for the outside of the property.

You might also check their online presence through FB, twitter, or other social media sites. You might be surprised what you can find.

When you meet and speak with them, what is the first impression you are getting? How well do they speak about their current or their past landlords? Do they get upset when you tell them that you have more than one application for the unit and it will take no longer than a few days to make a final decision?

If you are a landlord who allows pets in the rental unit seek information about the potential renter’s pets. Also check for local ordinances in place that either excludes certain pets. A valid and current pet certification may have to be held by the owner.

During your conversation with them set your expectations for them on how to treat the rental unit and the usage limitations set forth by zoning ordinances of the city. Make them aware of what actions they may take that could cause them to lose their rental deposit. You might also consider giving them a handout about this topic.

Make sure you are charging a rental deposit. Use a move-in and move-out check list as well.