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Terry Story’s Real Estate Survival Guide podcast includes her weekly round-up on NPR's "The Steve Pomeranz Show," WLRN and affiliates. The show provides expert advice in all aspects of the real estate transaction from listing to negotiations; to sales and purchase and everything in between.
Episodes
Friday May 15, 2020
How The Real Estate Industry Keeps Changing To Help You
Friday May 15, 2020
Friday May 15, 2020
May 13, 2020
During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams, about how the real estate industry is adjusting to innovatively conduct business during the coronavirus pandemic.
Realtors Getting Innovative
Steve first asked Terry to talk about one big change in the real estate industry—big conference calls between agents all across the country. “We have giant conference calls each week. We try to find out what each agent is hearing and seeing. A lot of agents have started doing webinars to show first-time buyers what their options are or straight-out buyers that we can still get them into the home they want, pandemic or no pandemic.” Terry shared. The most important thing about this innovative approach is that the essential information still gets to the potential client while practicing social distancing.
Terry, herself, decided to get ahead of the game by carefully tracking home sales in Palm Beach County. “As realtors, we’re foot soldiers,” she said. “We know what’s going on in the industry before any reports reflect it. With this information, I can spot a trend before it’s reported as a trend.”
How Buyers Can Help Themselves
Getting innovative during this pandemic is something you can and should do, too, if you’re a prospective home buyer.
Terry explained, “You’re going to have an area in mind. You can get a real sense of the neighborhoods in that area without ever leaving your car. Drive around. Use Google maps to find spots of interest such as restaurants, shops, and schools. Pay attention to things like traffic patterns. Remember that once you move, traffic is going to get heavier once everyone can be out and about freely. And use online databases for neighborhood data and statistics.” Steve added that using Google maps to actually see what a neighborhood looks like can be a big help to someone looking for a new home.
Getting proactive now will help you get a sense of what it would be like to live in different areas. This will help you narrow down what homes are actually of interest to you. Then, once you’ve settled on a neighborhood that meets your needs, call a realtor to get professional advice. They’ll be able to help you find homes that will work for you and set up virtual tours.
To learn more about buying or selling a home, visit https://teamterrystory.com/ or call Terry at 561-945-4348.
Friday May 15, 2020
The New Normal for Buying A Home
Friday May 15, 2020
Friday May 15, 2020
May 6, 2020
During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams in Boca Raton, about what the process of buying and closing on a home sale looks like in the coronavirus environment.
How Home Buying
All right, so we start with a listed property. Terry explains, “I would have already made videos of the home and taken my buyers on a virtual tour. Then, if they’re seriously interested, I arrange for them to do an actual real-world tour of the property, complete with mask, gloves, and even protective booties for their feet.”
Neither the buyer’s agent nor the seller or their agent can be inside the property when the buyer is doing an in-person tour. Social distancing, right? This is far different from the way it’s traditionally done, and it requires some trust. Terry noted that “We’re letting strangers into someone’s home, unsupervised, and the buyer and seller are being exposed to each other—possibly being exposed to the virus.” Terry pointed out that the positive thing about all of this is that the seller can pretty well safely assume that the buyer is a very serious, motivated buyer. Otherwise, they wouldn’t be willing to go through all these obstacles—the mask, the gloves, etc.
Terry continued explaining the procedure. “Let’s assume the seller’s agent knows the buyer by now and that the buyer has been qualified—really qualified, not just a pre-qualify. We’re talking about having proof of funds. That means that if the buyer is paying cash, then they’ve got the money in their bank account right now. If they’re financing buying the home, then they’ve been approved for the financing. It’s solid. They have a mortgage loan that’s been approved. The seller’s agent is going to, like, hold the buyer’s driver’s license while the buyer goes into the home, by themselves, for their do-it-yourself tour of the home.”
Steve added that getting that mortgage loan approval is noticeably more difficult than it was before the coronavirus hit. For example, because people’s employment situations are more uncertain, the bank is going to check on their income and employment situation not just when they apply for the loan but all the way up to right before closing, right before everybody signs everything and the bank hands over that big check.
Mortgage lenders are really just doing their due diligence. It’s just that things have changed, and the reality is that the buyer might have had a job when he first applied for financing, but he might have been laid off before we got to the closing. The lender is going to look at more than just the buyer’s assets or salary; they’re going to dig deeper and find out, for instance, if the buyer is considered to be an essential worker.
Terry summed things up by saying that the bottom line is this: it’s an agent’s job to act as a transaction broker. She said, “It’s my job as a listing agent to make sure that I’m bringing people to meet with the seller who is qualified and highly motivated to buy, especially right now.”
Getting To The Closing
Steve asked Terry to continue describing the step-by-step process of closing the sale. Once a qualified and motivated buyer is brought together with an eager seller, the next step is to come to an agreement on price. At that point, the process pretty much continues like it always has. As Terry explained, “It’s time for an inspection period. But one change is that inspection periods aren’t taking as long as they used to. They’re now typically a week or less, instead of ten days because inspectors just aren’t as busy these days.”
The lending process, from the agent’s point of view, is still basically the same, “Except,” Terry said, “that we’re checking on it every few days, calling the lender to make sure the money will be lent in a timely fashion. That could be a potential area of concern when you consider the strain that the coronavirus pandemic is putting on everyone.”
Terry explained that, in general, the name of the game is really just staying on top of everything, staying in touch with each party involved in the process to be sure that everyone is still on board. “We need to make sure that everyone still wants to be in on the deal, that everyone is still motivated and working toward the same goal of getting to the closing table. Frankly, we’re communicating more than we ever have before with the other realtor, just to make sure that we’re all still on the same page and that everything’s getting done properly.”
Sealing The Deal
Staying on top of each stage of the process is critical in preventing the sale of the home from falling through. As the process moves along, the final stage is the closing itself. This is another part of the process that’s changed as a result of the coronavirus.
Terry informed listeners that, “Closings can basically be done remotely now. Certain lenders have approval to close on a home completely remotely. The biggest issue is that some documents have to be notarized. But as we deal with more closings in this way, we’re learning how to get things done as smoothly as possible. The title companies are moving toward going completely digital, but if need be, someone from the title company will go out to the buyer to have documents signed. Agents are becoming couriers, doing whatever it takes to get all the necessary documents signed. We’re doing whatever it takes to get the job done and close on the home.”
Typically, the agent gets the seller to sign all the documents first, and then they get the documents to the buyer. Some lenders are sending a lot of the documents to the buyers in advance so that at the closing table there are fewer documents to sign. Once payment clears, the agent might have to be a courier once again to make sure the keys to the home get to the buyer.
If you’d like to learn more about buying or selling a home, visit https://teamterrystory.com/ or call Terry at 561-945-4348.
Friday Apr 17, 2020
The New Rules of Real Estate in the Time of Quarantine
Friday Apr 17, 2020
Friday Apr 17, 2020
4/15/20
During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams, about the state of the real estate industry and how agents are being affected during a time when most states are under mandatory quarantine.
The Rules Have Changed
With the majority of the country in quarantine, the rules have changed for the real estate industry. Though agents are considered essential workers, they have to follow different guidelines when helping clients find a home. “We’re not allowed to be in the house with a client when showing it,” Terry said. “The seller can’t be in there either. We’re allowed to show up and let the client in. Only the buyer can be in the home.”
But the majority of agents are taking even further precautions to help prevent potential spreading of the novel coronavirus and maintaining social distancing. “Most agents have created walking tours of homes ahead of time to offer clients. It’s only once they’ve expressed serious interest about the home that we invite them to tour in person. We also have sanitizer, gloves, booties, and other protective elements to help do our part to stop the coronavirus pandemic,” Terry said.
The video walking tours are popular online features anyway. They let agents show potential buyers a home room-by-room without the agent or buyer having to be in a location at a specific time. These virtual tours are especially helpful now and can be made more personal for specific clients. Terry added, “Despite everything that’s going on, homes are still being looked at, bought, and sold. We just have to adapt and keep everyone as safe as possible.”
Prices And Inventory
As can probably be expected, prices and housing inventory are being affected by the coronavirus pandemic as well. Terry said, “Prices are coming down. But as I’ve said before, you tend to get more and more quality offers when you lower the price of a home. However, I have seen some lowball offers. I have a property on the market for $740,000 and there was a $350,000 offer. We know times are hard, however, this is a precedent that we’re not going to set.” “And no one’s at that level of desperation just yet,” Steve added.
But there are a lot of questions. How long will the recession last? How long will people be out of work? What will the economy look like in a few months? Prices could continue to take some hits and inventory is affected also. Terry said, “Right now, we’ve been in a buyer’s market. We’re down to like three months of inventory, which is extremely low. A balanced healthy market is at six months.” Steve pointed out the additional fact that people who are quarantined in their homes aren’t going to be able to sell.
It’s Terry’s hope, however, that potential sellers will take advantage of the opportunity available to them. “With inventory down, now is a great time to sell. There are more people competing for fewer houses, which means more offers. If more sellers think like this, we’ll be able to boost inventory levels.”
Mortgages
Despite what’s happening in the world, it’s still relatively easy to get a mortgage if you’re buying a home, provided you qualify. The only situation where this isn’t quite as true is with jumbo mortgages. “Jumbo mortgages, at least in my market, are mortgages over $510,000. Lenders end up putting deals together and then selling them on the secondary market,” Terry said.
Steve offered some additional info on jumbo mortgages: “A mortgage broker told me that banks, hedge funds, and even some private investors typically buy these mortgages. But many don’t want to get stuck with such long-term mortgages at the low -interest rates being offered with so much uncertainty.”
All of this means that you really need to consider what type of home you want and need and whether you can afford the home without a jumbo loan. If you’re going to need significant financing, it might be better to wait.
If you’d like to learn more about buying or selling a home, check out Keller Williams!
Thursday Mar 19, 2020
A Home Buying Guide for Reluctant Millennials
Thursday Mar 19, 2020
Thursday Mar 19, 2020
During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams, about how overwhelming buying a home can feel for millennials. The two discussed some of the things that millennials need to know before buying a home.
Buying A Home As A Millennial
With the current state of the real estate marketplace being somewhat tricky to navigate, it’s even more difficult for millennials, some of the youngest homebuyers in the game. Terry said, “The biggest reason millennials feel so overwhelmed by the prospect of buying a house is simply the fact that they haven’t had the proper education.”
The thing millennials need to understand is that it doesn’t have to be that complicated. Get yourself connected to a good realtor. They will be able to put you in touch with a good lender. Or vice versa. If you start with a lender, you can see what financial resources you qualify for. Then the realtor can help you find a home in your price range.
One additional factor to keep in mind is the fact that 70% of millennials surveyed were familiar with the housing market crisis of 2008 and about half actually knew someone who lost their home. Steve commented, “That kind of leaves an indelible stamp on your brain. It takes a while to have new experiences to kind of remove those old feelings.”
Terry added, “It’s important for millennials to understand that we’re not in the midst of the same type of crisis and that interest rates are incredibly low right now.” That means that it really is a good time to buy, provided you educate yourself and stay within your means. Realtors are also seeing that millennials are getting a good amount of parental support when it comes to buying their first home. Sometimes it’s in the form of house hunting, but more and more, parents are helping their kids out financially.
Understanding Costs
The other major aspect of buying a house (especially versus renting) is what the house will actually cost. Remember, interest rates are low right now. “It’s cheaper to buy a home at a higher price with a lower interest rate; a 1% difference in interest rate equals a 10% difference in affordable home price,” Terry said. People tend to fixate on the dollar amount attached to a home price. But, for example, if you could afford a home that’s $400,000 and interest rates drop by 1%, you could ultimately buy a home valued at $440,000 for the same cost. Terry emphasized the point that “You have to look at the total cost to purchase, not just the price.”
“As interest rates come down, a sort of antigravity field is created around asset prices and prices go up. As interest rates rise, gravity is increased on asset prices and prices will come down,” Steve said. What does this mean? You need to think about the price of a home in terms of how long you’re going to live there. If the price of the home you buy comes down, will you have enough equity or will you be in the home long enough to wait out a cycle? Terry noted, “I typically tell people not to purchase a home unless they plan on living there at least five years.”
If you’d like to learn more about buying or selling a home, check out Keller Williams!
Tuesday Mar 03, 2020
Watch Out For Housing Myths That Can Lead You Astray
Tuesday Mar 03, 2020
Tuesday Mar 03, 2020
During this week’s Real Estate Roundup, Steve spoke with Terry Story, the 31-year veteran at Keller Williams, about a fundamental change happening in the real estate industry. Steve and Terry also talked about some key real estate myths that home sellers need to be aware of.
How Homebuyers Are Categorized
As Steve pointed out early in their conversation, “There’s a fundamental change in how homebuyers were historically categorized and how they’re being categorized today. Now, there are basically three tiers of homebuyers: upper, middle, and lower.”
The uppermost tier are the people who are willing to pay higher premiums for move-in ready homes with all the requisite amenities. Terry confirmed that she sees this type of buyer quite a bit. But she also sees a lot of buyers in the middle tier: people who want homes in their original condition. The goal with this type of homebuyer is to boost the home’s value through “sweat equity”—home improvements.
Finally, there’s the lower tier of buyers. This segment is primarily comprised of flippers or contractors, looking to pick up a home on the cheap, ideally paying no more than 60-70% of its retail value.
Speaking of value, Steve and Terry together noted that, “Land appreciates, houses depreciate.” Even if you’re not a renovator, if you stay in a home for several years, then you’re likely to spend a significant amount of money fixing it up, re-doing it, or maintaining it. Many people, when estimating how much value they have in their home, fail to take into account all the money they’ve put into it over the years, like replacing hot water heaters or heat/air systems.
The Middle Tier Is Falling Away
Steve mentioned that a recent article highlights how the middle tier buyer is falling away. “The reason is that current buyers are more comfortable with technology than they are with construction. Buyers are looking for homes they can move into quickly, homes that already have everything they want.”
There are simply more deterrents for middle-tier buyers, Terry chimed in. “If you’re buying a home that needs renovations, you have to have the money upfront to not only buy the home but then also to hire contractors,” she said. So, more people are in the top tier of those looking to buy a home that’s already the way they want it.
Five Real Estate Seller Myths
Steve and Terry then moved on to discuss some common real estate myths that are important for sellers to keep in mind. The first is that you don’t need a listing agent until your home is ready to go on the market. “I disagree with this,” Terry said. “I think it’s better to bring in the realtor before you put your home on the market. That way, they can help you determine what does and doesn’t need to be done to get your home ready to sell.”
Steve presented a second myth: “I do not need to upgrade the property for sale.” But according to Terry, it all depends on what the house needs and what type of upgrades are on the table. Her advice: “If you think a buyer’s going to come in and think it needs $10,000 worth of painting, it’s worth spending $1,000 in painting before putting your house on the market.”
The third myth—that you need to have an open house before you can sell your home—isn’t necessarily true either, according to Terry. “Open houses are a great way to get additional exposure, but the reality is that people are using technology such as real estate websites to decide what they want to look at, and then they’ll make an appointment to look at a home they’re interested in.” And virtual open houses are becoming increasingly more common.
Steve stated, “Number four, I need many open house signs at multiple key intersections.” He started to express skepticism about that one, but Terry chimed in and said that in her experience as an agent, that one isn’t a myth, it’s a good idea.
One final myth: A buyer that’s truly interested in a home will pay more than market value. “That’s a simple, flat out ‘no’,” said Terry. People are smarter and more well-informed as buyers these days. And Steve pointed out an adage that applies well beyond the real estate market: “Buyers only buy what they perceive has good value, period.” Terry added that if you over-price your home, potential homebuyers, even if they like the house, may not make an offer because they don’t think the seller has a realistic view of their home’s value and, therefore, won’t be easy to negotiate with.
If you’d like to learn more about buying or selling a home or to connect with Terry Story, check out Keller Williams!
Tuesday Feb 18, 2020
The Future Of The Real Estate Industry
Tuesday Feb 18, 2020
Tuesday Feb 18, 2020
During this week’s Real Estate Roundup, Steve spoke with Terry Story, 31-year veteran at Keller Williams, about the future of the real estate industry. Last week, Steve and Terry spoke about predictions realtors had made for the industry a decade ago. This week, they talked about the predictions realtors are making for the upcoming decade.
Condos And Townhomes On The Rise
One of the first predictions the realtors made for the next ten years is that “condos and townhomes will become more desirable than single-family homes, primarily because they’re less time-consuming in terms of upkeep and maintenance,” as Steve relayed.
This prediction is related to millennial buyers, who are looking for homes that are move-in ready and easy to take care of. They’re not interested in doing major renovations.
Boomers—those who are in their 60s and up—are largely aging at home. They’re not downsizing, selling their homes in order to move into retirement communities. This means housing inventory is down, but, as Steve and Terry have discussed in recent weeks, new construction is on the rise. According to the experts, condos and townhomes is the wave of the future.
Increasing Use Of Technology
Technology is already in every part of our lives, and realtors predict that technology will play an increasingly bigger role in the housing industry. The rise of online home-selling apps is particularly heralded, along with the increased use of social media to help sell homes.
Technology is also predicted to have a more significant presence within homes themselves. Smart homes, ones completely connected to and controlled by technology, are growing in popularity, particularly among younger homebuyers. Along with wanting move-in ready homes with low maintenance, millennials also want the convenience of being able to talk to their homes and use technology to make their daily lives easier.
Terry’s not so sure about being on board with all that. She said, “I don’t care for talking to a device that’s going to turn on my lights. I like to get up and turn on my own lights. Plus, I’m a little freaked out about who’s listening.”
Sustainability, Access, And Amenities
The real estate industry is predicted to move in the direction of more sustainable homes with “socially conscious business practices being a much more important part of the real estate equation,” Steve noted. This has already started with the smallest of things: people are switching to LED lightbulbs, which are far more economical and use much less electricity (up to 75% less) and last much longer than traditional incandescent bulbs.
People more and more want to live in areas that offer easy access to certain amenities and conveniences. For that reason, mass transit, like the Brightline rail system in Florida, which is rapidly expanding its service areas, is predicted to be increasingly important. Having access to good mass transportation means people can still choose to live in Boca Raton but be able to easily zip down to Miami. Terry commented that she’s hearing more people saying things like, “Listen, I don’t have to go to Miami that often, but when I do, I now know I can just hop on the Brightline.” (Boca Raton is being fast-tracked as a new Brightline station.) Steve is apparently one of the converts to using mass transit. He said, “Well, previously I never would have taken a train down to Miami, but now we’re considering doing that because the train’s nice, it seems like fun, and the connections are pretty good from what I understand.”
People want what they want and what homebuyers are predicted to want more of in the future is the convenience of having all their desired amenities at their fingertips. Steve rattled off a partial list: “They want dog runs, they want roof decks, they want work-friendly spaces.” Terry said that she’s seeing more people who are willing to live farther out from major cities and commute if they can get into a housing community that gives them what they’re looking for in the way of amenities. And builders and developers are taking notice.
The Silver Tsunami
There’s also a prediction for a wave of sales being referred to as the “Silver Tsunami.” This is when some 77 million baby boomers will finally start selling their homes, either to downsize or to move into retirement facilities. Zillow researchers report that “Nine million of these baby boomer homes will hit the market between 2017 and 2027.”
Steve and Terry both noted that that should solve the low housing market inventory problem. And with boomers both buying and selling, Steve mentioned reading that, “By roughly 2037, 21 million homes will have been sold as a result of the baby boomers.”
The End Of Paper Sales
Finally, one of the most likely predictions involves “the transition of the real estate industry from a manual, paper-laden process to an end-to-end digital experience within the next ten years,” which Steve quoted from the real estate predictions report. Eventually, the entire process of buying and selling a home will be paperless.
Wrapping up the Roundup, Steve quipped, “I think eventually renters will be able to lease an apartment in a matter of minutes just by filling out a few questions and snapping a selfie that will enable an algorithm to quickly build and vet their application in real-time.”
To learn more about buying or selling a home, or connect with Terry, go to Keller Williams!
Wednesday Feb 05, 2020
It’s A Great Time To Be Living In America: Enjoy It
Wednesday Feb 05, 2020
Wednesday Feb 05, 2020
In this week’s Real Estate Roundup, Steve spoke with Terry Story, 31-year veteran with Keller Williams, about the excellent state of the country’s economy, with housing inventory and employment levels on the rise. Steve and Terry also looked at some predictions that realtors made ten years ago.
Things Are Looking Up In Real Estate
There are a lot of positive changes happening. The real estate industry is hot. New home sales jumped 17% in December. Construction of new homes has increased significantly. In fact, Terry says, “if you look at new construction by region, the Northeast is up 25%. In the Midwest, construction is up 37%. And the West is up about 20%.”
The South is a bit of a different story. It’s only up 9%. Why? Steve suggested that perhaps the South already has enough new construction or that there’s just not enough land left to build on.
But the good news continues. The economy is thriving. The employment level is rising. The stock markets are at record highs. And, while home prices have risen, they’re only about 3% to 5% higher. And the employment and investment numbers mean that more people have more money, money they can spend on a new home.
Past Prediction One: Streamlining Home Sales
In 2010, a group of respected realtors was asked to offer predictions about things that might happen over the next ten years. This was a project called 2020 Re-envision. The realtors’ first prediction was that real estate agent commissions would go to a flat fee. Basically, the realtors were talking about companies popping up that wanted to control every aspect of selling a house. They would then simply employ agents to open doors, and agents would then receive a flat fee.
This prediction only came true for a few companies in a very small market. Terry never really bought into this idea of cutting out the real estate agent. She explained, “People like working with other people. And the truth of the matter is that selling real estate and buying real estate, it’s a very emotional experience.”
Prediction Two: Technological Changes
The second prediction the realtors made in 2010 was that technological advances would be used by realtors. This prediction has indeed come true.
Terry and her colleagues use 3-D imaging when showing homes, even doing a 3-D tour of a home. In addition, they also use a type of augmented reality or “virtual staging”. She reported, “We can take a home that’s empty and, with a computer, place furniture in it. A lot of people can’t visualize what a home could look like otherwise.”
Past Prediction Three: Less Office Work, More Service
The realtors also predicted that there would be a decline of commercial offices in favor of co-working and flexible office space. In terms of commercial sales, Terry isn’t sure if this prediction came to fruition. But she did note that for residential sales, a lot of realty companies’ brick and mortar stores are closing or consolidating. “If you really think about it, most realtors aren’t working out of an office. They’re out in the field, showing homes, talking with builders, etc. So, real estate agencies don’t need huge office buildings anyway.”
If you’d like to learn more about buying or selling a home, check out Keller Williams.
Tuesday Jan 21, 2020
Steve And Terry Tackle The Questions You Never Knew You Needed To Know
Tuesday Jan 21, 2020
Tuesday Jan 21, 2020
In this week’s Real Estate Roundup with Terry Story, the 31-year veteran with Keller Williams Realty in Boca Raton, Steve asked Terry to field some real estate questions he got from an article written by Gary Singer for the Sun Sentinel. Steve and Terry also discussed the age-old question of renting versus buying a home.
Dealing With Contractors
Steve’s first question to Terry was about dealing with contractors. Here’s the question:” In the middle of a major renovation, my contractor disappeared, leaving the work half done. I already paid her for most of the work. What should I do?”
Terry’s answer was, “It’s not about what you should do—‘cause, oh, boy, you’re in trouble now—it’s about what you should have done before you signed a contract. There’s not a whole lot you can do now except sue, if you can find them. What you should do first is some research, check them out with the Better Business Bureau. Make sure they’re licensed.”
Steve brought up an important point from Gary’s article, one that a lot of people may not be aware of. “If the contractor hasn’t paid the subcontractors, the subcontractors are going to come after you. And according to this article, you have to pay them, even though you’ve already paid the general contractor.” Terry gave listeners some good advice on how to avoid that situation. She said, “It’s really important before you pay the contractor the final sum, talk to the subcontractors, ask them ‘Hey, have you been paid? Are you being paid?’”
Issues With Emotional Support Animals
Steve’s next question had to do with people who have emotional support animals. Question:” I live in a condominium. Recently a disabled friend was coming to visit with her emotional support animal. The front desk would not let her up, stating that because she was not a resident, they did not have to allow her in with her dog. Is that legal?”
Terry’s answer was a resounding, “No”, that’s not legal. You have the legal right to have your emotional support animal with you even if you’re not a resident. She explained that this issue is covered under the Fair Housing Act, which protects not only residents but disabled people associated with the residents. Steve brought up the fact that you might be having to deal with someone at the desk who doesn’t really know the law, and he advised listeners who may run into this kind of problem to go to the condo board or homeowners’ association and make sure that they make it clear to all employees. Terry added that it’s a good idea to keep handy a note from your doctor authorizing you to have your support animal with you.
A Question About Fences
Here’s a question about an issue that often causes problems between neighbors, fences:” My neighbor attached bolts into my fence to secure some items in his yard. I’m concerned that this will damage my fence, especially if there’s a storm. I asked him to remove the bolts, but he blew me off. What can I do?”
Terry and Steve agreed that the important thing is to document everything, everything that’s done and everything that you do. That way you avoid having things devolve into just, “He said, she said”. Terry said, “You’ve already spoken to him, so the next step would be to send a polite and professional certified letter telling him to please remove them.” She advised listeners to be very careful about what steps they take when dealing with fences. “For example, say you’re dealing with some vines that your neighbor is growing on his side of the fence. You can cut the part of the vines that’s hanging over on your side of the fence, but you can’t cut them to the point where it kills the plant.” That’s why you have to be careful because the law can be kind of tricky.
Before they moved on, Terry made sure to point out that the first thing to do with any fence-related issue is to have a surveyor come out and make sure that the fence is yours. Don’t just take the previous homeowner’s word for it. What counts is what a surveyor says.
Renting Versus Buying A Home
Steve’s final question to Terry was about the debate over renting versus buying a home. He said, “A lot of people are still renting. Maybe they’ve been renting for years, and maybe they want to buy a house, but they don’t really think that they can afford it, or that their credit is good enough—all the kinds of things that keep people, through sheer inertia, continuing to rent instead of buying a house. What would you tell those people to consider to help them decide whether they could—and whether they should—make the move from renting to buying a home?”
Terry gave listeners a good, solid checklist of questions to ask yourself to help with making the renting versus buying a home decision.
Number 1: How much is your rent versus what kind of mortgage payment you’d have if you bought a house? Even with property taxes and homeowners’ insurance, you might be able to get into a house that’s bigger and nicer than your apartment and be paying less per month for it.
Number 2: Has your credit score improved? Your credit score is the key factor in (A) whether you can get a mortgage loan, and (B) what kind of interest rate you can get. Steve added that along with checking your credit score, you also want to check to see if lenders have loosened some of the FICO requirements, so maybe you qualify for a loan now when you didn’t before.
Number 3: Other things to think about are how much money you’re going to need upfront to cover the down payment and closing costs and about how much money you need to set aside to take care of the inevitable maintenance and repair costs that will come up from time to time when you own your home.
Number 4: And one last very important question to ask yourself is simply, “Have I gotten to the point in my life where I know what I want, such as a condo on the beach and where I’m ready to settle down?” In other words, are you mentally ready to buy a house?”
Steve and Terry wrapped up their conversation by repeating some questions Steve asks Terry all the time. “What’s the best time to buy a house?” As always, Terry’s answer was, “Now. It’s always now, Steve.” And what’s the best time to sell your home? “Always now.” Terry also made a point about selling your home right now that some people might not have considered. She said, “It’s wintertime, right? And some people think they shouldn’t put their home up for sale in the winter because there’s not as many buyers out looking during the winter, right? But think of it this way: less supply because fewer people are trying to sell their home right now means stronger demand and that means you might be able to get a higher price.” Terry smiled and repeated one more time, “It’s always a good time to sell your house.”
If you’re thinking about either buying or selling a home, get in touch with Terry Story at Keller Williams.
Friday Jan 03, 2020
The Secret To Successfully Flipping Homes
Friday Jan 03, 2020
Friday Jan 03, 2020
Steve starts the first segment of Real Estate Round-Up for 2018 with Terry Story’s tips on the requirements to be a successful home flipper.
Do Your Research
For starters, Terry says, effective home flippers know how to find a great deal and purchase homes at about 44% below market. Finding homes at steep discounts isn’t easy though. Expert flippers spend time looking for below-market properties online and by digging through courthouse records for bargains. They often purchase properties sight unseen because they really know the neighborhood and what comparable properties sell for.
Steve likens successful home flippers to stock investors who recognize the real value of beaten-down stocks and are willing to take deep positions in them.
Know Your Market
Further, home flippers know the end game all along, the full market value and final sales price of the home they buy, and the right target audience. To make a profit, they know exactly how much to invest in the house, and what to price it at for a quick sale.
Buyer Beware
Steve warns buyers of flipped homes to beware of shoddy, cosmetically focused workmanship and recommends inspecting the home thoroughly to make sure renovations were up to the mark.
60% Return
Terry adds that home flippers typically sell in the $100,000 to $200,000 price range, with average gross returns of about 60%, and with a flip typically completed in about 128 days from purchase to renovation to sale, which is incredibly quick. To do so, flippers have a whole system in place, with clear renovation plans, workers at the ready, and funds on hand to make it all go smoothly.
Steve compares this to evaluating a company’s inventory turns. Inventory ties up capital and warehouse space, so the sooner it’s cleared it out, the better. Similarly, if you sit on a home that you’ve renovated, you cannot free up capital to deploy it elsewhere, and your profits will be lower.
How To Spot Markets Ripe For A Flip
To spot markets that are ripe for flipping, successful home flippers look for telltale signs in markets across the country. For instance, they look at future development plans or applications for building permits to get a sense of whether a developer, a major business, or a retailer plans to move in and make the neighborhood more attractive and drive up housing.
When Does Home Remodeling Make Sense?
Next, Steve wants to know if people should remodel homes to sell them for more. Terry’s answer is a firm “no” because you only get back about 60% of what you put into the remodel. So remodeling only makes sense if you plan to enjoy the upgrades for yourself or if the house is falling apart and needs major repairs.
Moreover, buyers may not have the same taste as yours, so there’s added risk if you remodel just to get a higher price for your home. Instead, save your money for necessary infrastructure improvements such as a new roof or a new air conditioning system.
Older Citizens Selling Homes
In closing, Terry notes that she’s seeing a new trend of older, cash-strapped citizens looking to sell their homes, something she hasn’t come across before. Steve sees a similar trend in his investment advisory practice where people have a lot of money tied up in their homes. If money is an issue, he believes one should release that equity, thereby turning an illiquid asset into a liquid asset, invest some of it, and carefully spend the remaining principal to improve one’s quality of life in retirement, without the added headache of worrying about maintaining a property.
Monday Dec 23, 2019
The Hottest Places To Invest In Real Estate
Monday Dec 23, 2019
Monday Dec 23, 2019
Steve spoke with Terry Story, a 30-year veteran at Keller Williams. In this installment of the weekly Real Estate Roundup, Steve and Terry talked about some of the most popular places to invest in real estate, who’s investing, and why.
The Hottest Places To Invest Right Now
A lot of real estate is being scooped up in places that might make you scratch your head. On the list? Orlando, Las Vegas, and throughout Arizona. But why? These markets grew fast and were severely overbuilt which means they started to perform poorly- too much supply for the demand.
Initially, people were getting mortgages right and left, namely people who didn’t really deserve the deals they got. As demand for inventory dropped, the markets in these areas crashed. Now, though, there’s plenty of inventory up for grabs and demand is climbing. Homes are actually affordable.
These are also warm areas, which tend to be ideal spots for people who are retired and trying to downsize.
The Midwest
Two more areas in great demand? Places in the Midwest. The entire state of Colorado is seeing a massive influx of people putting down money on homes. Technically, Colorado falls just outside of the traditional Midwest region, but because it borders traditional midwestern states like Nebraska and Kansas, it can easily be considered part of the region. One reason for this influx? There is temptation to believe that it’s because marijuana is legal there. But the reality is that Colorado has so many diverse and temperate cities, there’s a lot to love about living there.
Perhaps the most shocking “hot” place to live right now is Ohio, Cleveland specifically. A lot of money is being poured into areas like Cleveland, and with bedrooms communities around a fairly clean and livable major city, Cleveland is almost a dark horse in terms of real estate.
The South
Texas also being on the list of hottest places to invest in real estate shouldn’t be that surprising. Despite the serious weather issues Texas typically faces – hurricanes, flooding, and extreme heat – the state has constantly been a magnet for home buyers. Why? Housing prices are notoriously good there. You can get a lot of bang for your buck, in terms of property size and square footage.
The Cyclical Nature Of Real Estate
As always, keep in mind that the real estate market is cyclical. An important take away here: watch out for procrastinating. A lot of people sit around and wait for the next recession to start making moves. This is a little backward thinking because you really miss out on the averages.
The truth is that most returns come when the market starts to expand again. Recessions, today, are much shorter than they used to be. If you wait for these, the cost of missing out on bigger opportunities during the wait might prove very frustrating.
If you’d like to learn more about buying or selling a home, or to learn more about Terry, check out Keller Williams!
Thursday Dec 19, 2019
Sell Your House For Cash Today—It’s All The Rage!
Thursday Dec 19, 2019
Thursday Dec 19, 2019
In this week’s Real Estate Roundup, Steve and Terry Story, who’s now got 31 years of experience with Keller Williams Realty in Boca Raton, had a conversation about selling your house quickly for cash. They also talked about the effects of aging baby boomers on the housing market.
Sell Your House For Cash Today
You’ve seen the signs on billboards or posters that read, “We Buy Ugly Houses”, or just, “Cash for Your House”. Steve asked Terry to explain the nature of that part of the real estate business.
She calls the people in that business “wholesalers” because that basically describes how they make their money. They look to buy houses at “wholesale” prices and sell them at “retail” prices. Terry explained how it works. “They buy houses, sometimes fix them up and then flip them, or they just buy them and flip them the same day. Say you want to sell your house right now. You call one of these numbers you see in an ad, and they write a contract to buy your house. A lot of times they assign it to a real buyer they already have lined up. As a seller, what’s really important to understand is that you’re selling your home at a severe discount.”
How The “Cash Right Now” Business Works
A successful real estate wholesaler makes their money by buying houses at a large discount and then quickly reselling them for a hefty profit. They can get a low price because they’re offering cash, and they’re offering to do the deal right now. If you’re a strongly motivated seller, for whatever reason, the offer of cash-in-hand right now may make you willing to sell your house for a lot less than it’s actually worth.
Steve offered an example to clarify things for listeners. “Say I’m in this business, and I have a buyer already lined up, willing to pay, let’s say, $140,000 for this house that’s worth $150,000. I go to the house. Maybe it’s owned by an elderly person who’s owned the house free and clear for years. I tell them, ‘I can give you cash today, no hassles, no long real estate closing time. I’ll give you 30 days to move out or whatever and I’ll give you $90,000 for your house.’ And they may think, ‘That’s good cash. That’s more cash than I’ve ever seen before.’ If the homeowner takes the deal, then I’ve already got a $50,000 profit locked in, since I have a buyer waiting with $140,000.”
The huge discount from the home’s value may make this kind of transaction look bad, like the buyer is maybe taking advantage of an elderly person, but there’s nothing illegal about it. Terry stressed the point that what homeowners need to know is that even if they’re desperate to sell their house quickly, they should still take the time to consult a professional real estate agent and get an appraisal. That way, she said, “If you still decide to sell it, at least you’re informed.” Steve agreed, urging sellers to at least do some minimal research on what their home is worth. He said, “I mean, at least go on online and pull up Zillow or something.”
That specific bit of advice prompted Terry to note to listeners that sites like Zillow don’t really provide accurate home values. The numbers you see on a site like that should be ignored as valid appraisals and only taken as very rough numbers. Those numbers are neighborhood averages. Zillow hasn’t really seen your actual house. For instance, they don’t know if you’ve completely remodeled the kitchen or the bathrooms. You might have a house right on the beach, but Zillow is averaging prices in the neighborhood that includes homes that are four or five blocks off the beach.
The Effect Of Baby Boomers On The Housing Market
Steve next turned the subject to the impact of aging baby boomers on the housing market. He started things off by quoting some recent statistics, saying, “Basically, boomers own one-third of all US properties, single-family homes and the like. And 27% of them will sell their home sometime within the next 20 years.” Terry contributed some more information: that between 2007 and 2017, roughly 730,000 homes were offered for sale by seniors, those over 60. She added that this is a trend that’s projected to keep growing for the next couple of decades. According to Terry, “From 2017 to 2027, they anticipate that number rising to 920,000 homes. And then from 2027 to 2037, we’re looking at 1.17 million homes for sale by boomers – and that’s per year for that whole decade.” She then made the point that this could lead to a really nice buyer’s market, since adding that many homes to the “for sale” inventory should put downward pressure on prices.
Terry wrapped up their conversation by joking with Steve, saying, “So, call me now to sell your house while prices are still up. Don’t wait 20 years.”
To learn more about buying or selling your home, you can connect with Terry at Keller Williams Realty.
Monday Dec 09, 2019
The Ins And Outs And The Ups And Downs Of Airbnb
Monday Dec 09, 2019
Monday Dec 09, 2019
During this week’s Real Estate Roundup, Steve spoke with Terry Story, a 31-year veteran at Keller Williams about the rise in popularity of Airbnb, a company that allows people to open their homes like a hotel or bed and breakfast. The two discussed where in the country the most Airbnbs exist and the rules regulating them. They then talked about the mortgage industry and the true story behind The Big Short.
Airbnbs—As Always, Florida Is In The Mix
Regardless of the category—and specifically when it comes to real estate—Florida is always at the top of the list. True to this, Florida has the most Airbnbs of any state. Miami Beach, despite fairly strict rules regarding Airbnbs, has among the most of any city. Also on the list: Orlando (which makes sense because of Disney World), Kissimmee, and Sarasota. The cities are measured and listed based on an Airbnb-to-resident ratio.
Terry clarified some points for homeowners about offering their home on Airbnb, such as the fact that they can prohibit guests from doing things such as smoking in the house.
The Big Short
In the early 2000s, a group of hedge fund guys viewed the real estate market as becoming a little crazy. They decided they could take advantage of the situation by betting against mortgages by selling short. (This was immortalized in the book-turned-movie, The Big Short). Basically, they delivered borrowed mortgages which they would eventually have to return to the market to buy equivalent mortgages in order to close out their short-sell transaction.
The theory behind their selling short was that they would be able to buy back the borrowed mortgages sold when mortgage prices were much lower. When you sell short, you make money when the asset price goes down. These guys took an incredible amount of risk, especially during the early 2000s when the market was in a bubble. Many people believed housing prices would continue to go up and that selling short was a terrible idea.
Although they were wrong for a long time and had to weather severe financial distress to maintain their short position in the mortgage market, ultimately, they were proven right. The housing market crashed, mortgages prices tanked, and those guys made a fortune.
Something of notable concern now is that one of the “big short” investors is betting against mortgages again. Previously, the reason for the short sell was the fact that people were getting mortgages that never should have been given one in the first place; the market was bound to crash. Today, his reason for short selling is his belief in climate change. More specifically, this short-seller thinks that there are a lot of homes susceptible to flood damage that may occur as a result of climate change. Many of those homes are in Florida, as well as in California and Texas. His belief is that the mortgages on many of the homes are simply too big relative to the risk of losing the home to flooding. Only time will tell whether he’s right again.
If you’d like to learn more about Terry or buying or selling a home, head over to the Keller Williams website.