The Bells Blog

This is the 64 million dollar question right now in the Bluegrass. Ok, maybe the $250,000 question.  But it's a big one.

How do you know when it's the right time to put your house on the market?  Well, the best way to answer that question is to call your agent. 

Mom and I talk with homeowners all the time about prepping their house for market.  And, it's never too early to call us.  We can guide you through ALL aspects of preparing for market.  We'll sit with you for an hour or so after touring your home to set a great plan with you.  A few topics of conversation during this visit would be:

What range in selling price is your market showing today?

What repairs and improvements should you consider to optimize your return?

How long will it take to complete these items?

Should we bring in a stager or interior designer to help?  For our listed clients, we'll provide this service to you at our expense.

What goals do you have regarding your next home and your return on your current property?

What other questions do you have in mind?

Once we have a chance to meet, you'll feel a lot better about the direction to take.  Call us anytime!

We're Mother and daughter... helping you make it home!

Historically, the Spring market in Central Kentucky brings a shift in energy and a faster pace.  So, as we prepare our buyers for the home-buying process, we assure that everyone is ready to move quickly on a property in case it's necessary.  Here are a couple ways to be prepared.

1. Establish a solid relationship with your Realtor long before you go to an open house or start looking for properties online.  We've said it before.  Whether you've bought and sold property many times before, or you're a first time buyer, a great plan up front can minimize surprises and make for a smoother transaction.  Select an agent and then sit with them for an hour or so to set out your plan.  And lastly, establish a Buyer Agency Agreement with them.  This will line out several intricacies of the transaction.

2. Understand the Offer to Purchase Agreement BEFORE you write an offer with your agent.  Ask your Realtor to go through the Offer to Purchase (the purchase contract) with you so you understand the specifics, as well as particular timelines in the transaction.  For instance, how long would you have to complete a home inspection, if you choose to get one?  And, how long does the seller have to respond to your initial offer?  Talking about these items up front helps a lot when you decide to move on a property quickly.  We make a habit of providing our buyer clients a copy of the Offer to Purchase Agreement, with notes throughout, explaining each section.  This is especially important in faster markets.

Lastly, once you have a great plan in place, have fun.  This is an exciting time, enjoy it!

What we really do is serve you, our valued clients, as your trusted advisor.  We guide you through your unique investment and move, looking after your best interest every step of the way.

Oh sure, we do everything we can to describe and highlight all the features and benefits of the homes we list and show.   And we'll go above and beyond the call for our buyer and seller clients to assure the best possible outcome for your transaction.

We're hand holders, confidants, problem solvers, protectors of other peoples pets, professional door lockers and light switcher off and on'ers. We proofread your contracts and paperwork ten times before we say it's ready, we check our emails and text messages in the middle of the night for you.  And we have dreams about your home search and sale too.

Buying and selling a house is different for everyone.  Each client has different goals, stories, and different reasons for making what should always be considered your important and significant move.

So for us, it's essential not to think of it as "selling".

You may have heard others talk about the inspection process in their real estate transaction and wonder how it works.  Here's a quick explanation...

When a buyer makes an offer on a property and the offer is accepted by both buyer and seller, the property is now under "contract".  Written in that contract are guidelines under which the buyer may inspect the property.  These inspections can include a complete property inspection conducted by a licensed property inspector.  The inspector will inspect the property  and compile a report of what they find.  The buyer also has the option of selecting particular systems/items to inspect.  The inspector will discuss with the buyer the specifics of the inspection, and any areas not within their expertise.

Wood destroying organism (termite) inspections are also outlined in the "Offer to Purchase Agreement".

In our area, the buyer may choose one of three ways to purchase a house with respect to inspections.  This may vary in other areas.

1. Buyer may purchase the house "As-Is" without the option to complete inspections.

2. Buyer may elect to complete inspections.  And, if any item/items in the report are unsatisfactory to the buyer, the buyer has the option to void the contract within a specified number of days from offer acceptance.

3. Buyer may complete inspections, then via their agent and the Listing agent, negotiate repair(s) between the buyer and seller.

The Offer to Purchase Agreement goes into all the guidelines for each option and MUCH greater detail.  Your Realtor or agent can assist you with the specifics in your area.

The inspection process isn't intended to address cosmetic issues or evidence of normal wear and tear.  Even new homes can have flaws, and every house ages as time goes by.  Upon inspection, items that reveal safety concerns, deficits in  the overall structure of the house or questions about the performance of the major systems of the house will likely be of greatest importance.

All in all, the inspection process is an opportunity to learn more about the property, and to make educated decisions about the transaction.

(All statements are based on local Board of Realtors forms .  Please consult your local Realtor/real estate professional to learn more about what is customary in your area.)

 The Bells are Mother and daughter, Kentucky state licensed real estate Broker Associates with Rector Hayden Realtors, a wholly owned subsidiary of HomeServices of America, Inc., a Berkshire Hathaway affiliate in Lexington Kentucky. 

Sunday afternoon I was visiting with a new neighbor who was telling me about how her Son would like to sell his house.  “But I know it’s tough to sell a house during the Fall and Winter” she says.

NOT TRUE!

I have always said, if a house is in good condition, market ready, and is priced properly, it should sell.

Home buyers buy during all times of the year and for a multitude of reasons.  People get transferred, get married, have another child, and experience other milestones that allow them to make a change in their living situation.  This happens every day of every month of the year.

In addition, especially in the Central Kentucky market, inventory is low.  And, there are a lot of buyers who are waiting for the right property to become available.  If they find it in July, great!  But they’d be willing to move in December all the same.

Here’s an example.  Around Thanksgiving of last year, we received a phone call from some former clients.  Their family had grown and they were excited to buy their forever home.  Upon our initial consultation, we encouraged them to replace carpet and make some updates to the kitchen.  They completed the updates and made some other preparations to assure it “market ready”.  We listed it the first week of February, and it sold 7 days later.

Condition, market readiness, and price , those are the three key consideration when selling, at any time of the year.

The Bells are Mother Daughter real estate professionals, working together to help you make Lexington Kentucky home.

Imagine this scenario.  A year has rolled around and it’s time to check in with your trusted family doctor.  So, you open up the phone book to “physicians”, close your eyes, and randomly float your index finger over the first name it hits, right?

NOOO!!!

You do your research, look through websites, ask friends and family for recommendations.  And, then you establish a long lasting relationship with this person.  They quickly become a TRUSTED individual with whom you have great confidence.

The same should be said for your Realtor!

During a real estate transaction, representation is crucial and important.  You want to be assured that you have secured a highly experienced and qualified real estate professional to take you through your transaction.  Now, any transaction can have a bump or two in the road.  And, a confident Realtor should be able to handle that for you.  The key is to make your selection EARLY ON, make it wisely, and stick to it.

Here’s a couple reasons why…

1. Consistency is key! Buying property is a VERY personal experience.  By committing to ONE Realtor you trust in the beginning, you have that ONE person working FOR YOU, who understands exactly what you want and how you like to work.  You don’t want to have to explain that to several people.  And, you don’t really want a lot of people to know your business, right?  You also don’t want to be bombarded by phone calls, emails, and snail mail from all the  nice Realtors you’ve contacted at Open Houses, on the web, or from yard signs.  Let YOUR Realtor make those inquiries FOR you and kingly tell those agents at Open Houses that you have a representative.

2. Loyalty is important and so is a Buyer Agency Agreement. This is a simple document that you and your Realtor can complete to establish that your agent will work DILLIGENTLY to find you the type of home you desire, and strive to provide you with exceptional service in managing the transaction.  You, in turn, agree to work with that person exclusively, and consult with them on all aspects of your unique transaction.  It’s a beautiful thing and often creates long lasting business relationships and friendships.  And, you’ll feel good about calling them to sell that house when you’re ready.

Your agent is making an investment in time and expense for you.  And, they aren’t compensated until you close.  Isn’t it fair to return the same loyalty?

The best favor you can do for yourself AS SOON as you’ve decided to buy a home is to find your agent.  Do your research, check out websites, ask around.  You’re likely to find your Realtor for life!

Mom and I sat down with a new client during our initial buyer consultation a few weeks ago.  The buyer consultation is an absolute necessity when planning for a home purchase.  It takes about an hour and sets a great plan for a smooth transaction.

 Our client had never bought a house before and was eager to learn about the process.  He was also a little uncertain as to our exact role as his buyer’s agent.  He looked up and said “So, what services will you provide to me in my purchase?”

We had a lot to share with him……..

We said we’d take care of…

His home search, generating an auto search based on his preferred parameters, setting up showings, coordinating with listing agents, communicating market developments, and sharing pertinent details during home tours.

Preparation of the Offer to Purchase documentation as well as all the state disclosures, necessary addendums and agreements.  Negotiation of the terms of the offer with the listing agent so that the offer would turn into a contract on the new home.

Coordination of his mortgage loan.

We’d look out for him in the preparation of his offer, assuring that all clauses and terms necessary for his very unique transaction wouldn’t be missed.

We’d represent him in negotiating any repairs that arise from the property inspection.  And, if there isn’t an agreement in those negotiations, we’ve made all the necessary preparations to release him from the transaction if it comes down to that.

We’d explain a lot of concepts about the transaction, including:

                Owner’s Title Insurance and why it’s different from the lender policy.

                Mortgage Insurance Premiums

                Deed preparation and how he’ll take title.

                Terms of financing and how we arrive at that final number

                The Settlement Statement

                What we’ll do to help him decide on the best initial offer

                Physical aspects of a house and what to look out for.

                Market data, school information, utility bills, property taxes, escrow accounts, good faith             deposits, sellers disclosures, Agency Representation, Fair Housing, Affiliated Business     Arrangements, and the list goes on and on.

He and his wife found a lovely house and the transaction is moving along beautifully!  And, we’re ALL glad we sat down in the beginning to put together a great plan.

We all come to a point in our lives (I hope) where we make the decision to buy our first home.  You’ve rented for a few years, and you want something of your own.   This decision often comes with questions and concerns, sometimes even a little trepidation.

Here are a few things to think about that may put your mind at ease.

1. You may not need as much cash as you think.

Most first time buyers aren’t fortunate enough to pay cash.  And, many people would like to get financing with the minimum amount down.  There are new programs that may allow for a 3% down payment with no mortgage insurance, which can be pricey.  Talk to a lender to find out exactly what you’ll need.  It may not be as much as you expect.  Sellers are even able to pay for some of your closing costs which will greatly reduce your cash at closing.

2. Home warranties and information up front can help if something goes wrong with the house.

Buying a home does not come without risk.  But, you can offset some of the risk by purchasing a 1 year home warranty through your Realtor.   Or, you can ask the seller to pay for it for you.  That way, if a system fails or something needs to be replaced, you have a special plan in place to address it.  

3. You’re sort of paying yourself when you make your mortgage payment.

When you pay rent, that money goes to no one but your landlord.  You’re essentially paying off their mortgage for them.  Why not pay towards your OWN mortgage?  Look at it this way.  If you’re paying $700 in rent for a year, that’s $8400 you just gave someone to build up equity on their property!  If you paid that $8400 on your loan, you pay down YOUR balance, on which you’ll owe less when you sell, and will hopefully get back when you’re ready to move up.  Now, of course, not all of your mortgage payment goes toward the balance on your loan.  But, doesn’t that sound better?

4. There’s no tax deduction for rent paid.

You may your $8400 this year, and it’s gone.  You pay $8400 on your mortgage, and you get to deduct a portion of interest (which is a pretty good chunk) on your taxes.  In addition, a portion of your property taxes is deductible too!

5. Your rent increased by HOW MUCH?

When you secure a fixed rate loan, that’s exactly what you get, a fixed rate.  If your payment is $800 today.  It will be $800 in 2043.  Assuming you don’t refinance during that time.    What will your rent be in 2014?

6. It’s YOURS, ALL YOURS!

When you buy a house, it’s yours.  Paint the walls your favorite shade of lime green!  Buy that hot pink shag carpet you’ve had your eye on!  Go for it!  There’s no landlord telling you what you can and cannot do with your place any more.

We’ve heard  about location, location, location.  And, the adage still holds.  It’s obviously important to select a home in a desirable area.   As with anything else, there are caveats.

One of the other important objectives I focus on with buyers is selecting a home that will sell well in the future.

SELL?  Why would someone think about SELLING a house when they’re buying it?

Well, it’s pretty simple.  Lives change, families grow, and there are great many other reasons people move.  So, one of the most important considerations when buying, is your chances of selling it.

Someone once explained it to me like this.  And, I often use this with both buyers and sellers…

                Ever hear a song on the radio that seems to be one they play every fifth song?   It’s really catchy, has a great beat, “you can dance to it”.  (Sorry, showing my age.)  And, it seems to appeal to A LOT of people.  In fact, it appeals to the MASSES.  That’s what you’re looking for when buying.

Something that appeals to the majority of people who consider buying it in the future.

So, as you look at prospective houses in which you may make a home.  Give some serious consideration as to how easily you can sell it in the future.

Happy house hunting!

The Bells are Mother Daughter real estate professionals in Central Kentucky.  They’re making Lexington Kentucky home for families and individuals every day.

Wouldn’t it be great to arrive at a car dealership, test drive the perfect car for you, decide you want to buy it, then say.  “Thanks, my agent will be in touch to negotiate an offer.”  All the pressure is off and you have your own personal representative to handle the transaction.

Well, of course that’s not how we typically buy cars, but it’s ONE way to buy a house.  

You see, in real estate transactions, the listing agent represents the seller, and can sometimes represent the buyer as well.  This is called “Dual Agency” and works great!  Often, these are some of our smoothest  transactions.  One agent knows exactly what’s happening on both sides at all times, and everything is held confidential between buyer and seller.

Another great way for a buyer to be represented is through a “Buyers Agent” which is much like the car dealership example.

A “Buyer’s Agent” is the Realtor you select early in your home search who will serve as your exclusive representative in the purchase of your home.   This means they are your “agent”.  When you visit open houses, you’ll present your agent’s card to the listing agent so you can walk through the house without a lot of questions.   When you see a For Sale by Owner sign, you’ll call your agent so they can contact the seller for you.  When you want to see houses that look interesting to you, your agent will set up all the showings for you, provide area and home tours for you, draft all the paperwork for your offer, speak on your behalf to the listing agent, and handle the entire transaction for you.

Now, doesn’t that sound a lot easier?  One dedicated Realtor there for you to represent you in your most important purchase.

The Bells are Mother Daughter Realtors in Lexington, Kentucky and they would be honored to talk with you more about buyer representation.  They’re making Lexington Kentucky home!