How to Close a Tough Sale

Are you having trouble closing a tough sale? There is one important thing you need to remember. Trust. Building trust with a client the most important aspect within any real estate transaction. To complete any deal with a home buyer or a seller, you will want to gain their trust by alleviating clients' three biggest fears.  Here are some important tips that will help you alleviate your customer’s biggest fears.

Fear #1: The Customer Won't Get Exactly What They Want

Possibly, your potential customer has had a bad experience with a past contractor or they have most likely heard stories from other people who have heard bad experiences. If someone wanted his/her bathroom remodeled and their contractor attempted to up sell an addition with two bathrooms, a laundry room and a kitchen. Or a contractor left the project halfway, he wasn’t listening or serving the customer. When you get to your potential customer’s home you should question them on exactly what they want. Actively listen to your customer repeat what they said to ensure that you are on the same page. Then prioritize on what they want.

Fear #2: The Customer Won't Get a Fair Price

Possibly, you understand the fear of unfair price and you can eliminate it by following a few steps. You can work with your customer to prepare a budget and then provide a price that falls within that range. By doing this you will have alleviated potential concerns that the price you have offered is too high and you will have alleviated price as a major concern in the project. Help your customer determine the amount they are willing to spend on the project and help them select the materials that will remain within that budget. If the customers are making selections which will affect their budgets, you should tell them. By doing this, you will eliminate any price fears.

Fear #3: The Contractor May Not Complete The Project In Time

When discussing the timeline for a project with your customer, you should discus on how soon you can be able to start, the amount of time the entire project will take, and how some issues may affect that project. Ask your customer whether they have a particular date in mind and if their expectations are not realistic, you should help them come up with a sensible timeline. And to reinforce your customer’s trust, you should stick to your promises. Ensure that you are returning phone calls on the same day.

What Is A Jumbo Loan?

Jumbo loans are mortgages that exceed $417,000 which is the traditional mortgage limit, also known as the conforming loan, for single-family mortgages. The conforming loan limit is the maximum amount that will be backed by Fannie Mae or Freddie Mac. However, the real estate market is not the same in every city, so in some places the jumbo loan threshold is higher. For example, in Alaska and Hawaii the conforming loan maximum is $625,000, so jumbo loans would be made for a larger amount. Jumbo loans are used to purchase higher priced homes.

Qualifying For a Jumbo Loan

It is not easy to qualify for a jumbo loan even if you have $1 million in liquid assets. Qualifying for a traditional mortgage loan means jumping through several hoops, and there may be more hoops to jump through for a jumbo loan. You will need to have all of the documents that will support your income from all sources. Tax returns and bank statements will also be required. It is nearly mandatory that you have at least six months of cash that could be used to make the payments on the jumbo loan. This requirement could be stricter if you work for yourself.

Your debt-to-income ratio must be below 36% if you are applying for a traditional mortgage loan. This ratio is calculated by dividing the total monthly debt payments by your monthly income. Jumbo loan applicants will need a significantly lower debt-to-income ratio. The ratio requirement may vary between jumbo loan lenders. However, it will not be as high as 36%.

An excellent credit score is essential when applying for a jumbo loan. Most jumbo loan lenders look for a credit score of at least 700. Keep in mind that credit scores are created by a variety of credit bureaus and by the independent FAIR ISSAC score organization.

Favorable Interest Rates are Available For Jumbo Loans

As recently as 2008, jumbo loans were not available, and if they were, the interest was higher than for traditional mortgage loans. However, borrowers looking for jumbo loans today will find that interest rates are slightly lower. The reason is people who apply for jumbo loans are viewed as less likely to default on the mortgage or fail to make payments on time. Many applicants are high-income earners with substantial assets. They are also considered to be financially stable through any economic downturn.

As with any mortgage, it pays to shop for the best jumbo loan deal. Jumbo loans come in a variety of adjustable and fixed interest rates. You might find investors among the secondary mortgage market.

Look at your finances carefully. Find the best jumbo lender for your needs. Be sure that you can make the long-term commitment to making the mortgage payment along with the high taxes and property insurance.

5 Tips To Manage Your Mortgage

A home’s curb appeal can be improved dramatically resulting in more buyer interest. Curb appeal can be enhanced by a few decorating and landscaping touches that do not have to be expensive. These are enhancements that the homeowner can also make without any special help. The desired outcome projects that will transform a home’s exterior from dull and outdated to stunning and contemporary.

Gutters
The homeowner can start with changing unsightly gutters into gutters that will elevate the elegance of the home. Old gutters that have bends and appear to be falling off and have unattractive downspouts should be replaced with gutters that look to be more durable and in good condition. Copper gutters are stunning, and they are a functional decor feature that impresses buyers. Copper gutters say that the homeowner cares about quality in the home.

Cover Some Of The Exterior Elements
If the air conditioner is not in use, then cover it with an attractive custom-made cover in a color that will make the A/C unit less noticeable. A lattice fence should be constructed to obscure the view of pool equipment. Pre-made fencing sections can be purchased and painted by the homeowner.

The Front Door
A front door that looks worn and outdated might benefit from a coat of high-quality paint. However, if the style of the door is clearly outdated, then the homeowner should consider buying one of the new and beautiful steel doors that fit with the architecture of the home. Information from Realtor.org indicates that a steel door will yield a high return on the investment. More importantly, a steel door is a wonderful curb appeal feature.

Add Shutters
A home’s appearance can be dramatically improved by adding shutters that will complement the home’s style. An expert in shutters is easy to find, and they can offer advice on the best shutters. The best approach is for the homeowner to show the expert a picture of the home.

Dress Up The Front Porch
If the home has a front porch, consider painting it if it looks worn and outdated. Add some wrought iron step handles, and place some flower pots on the porch where they can be seen from the street. Consider some hanging flower baskets.

The Landscaping
The grass should be cut and neatly trimmed along the cement walkways. Prune overgrown shrubs and hanging tree limbs, and plant some flowers in various colors. These steps will bring the front yard to life and give it a manicured look.

The Outside Is A Preview Of The Inside
Buyers will believe that the care that is given to home’s exterior, and the yard, indicate the care that the home’s interior has been given.

Curb Appeal Shape Up: 5 Ways To Transform A Home's Exterior

A home's curb appeal can be improved dramatically resulting in more buyer interest. Curb appeal can be enhanced by a few decorating and landscaping touches that do not have to be expensive. These are enhancements that the homeowner can also make without any special help. The desired outcome projects that will transform a home's exterior from dull and outdated to stunning and contemporary.

Gutters
The homeowner can start with changing unsightly gutters into gutters that will elevate the elegance of the home. Old gutters that have bends and appear to be falling off and have unattractive downspouts should be replaced with gutters that look to be more durable and in good condition. Copper gutters are stunning, and they are a functional decor feature that impresses buyers. Copper gutters say that the homeowner cares about quality in the home.

Cover Some Of The Exterior Elements
If the air conditioner is not in use, then cover it with an attractive custom-made cover in a color that will make the A/C unit less noticeable. A lattice fence should be constructed to obscure the view of pool equipment. Pre-made fencing sections can be purchased and painted by the homeowner.

The Front Door
A front door that looks worn and outdated might benefit from a coat of high-quality paint. However, if the style of the door is clearly outdated, then the homeowner should consider buying one of the new and beautiful steel doors that fit with the architecture of the home. Information from Realtor.org indicates that a steel door will yield a high return on the investment. More importantly, a steel door is a wonderful curb appeal feature.

Add Shutters
A home's appearance can be dramatically improved by adding shutters that will complement the home's style. An expert in shutters is easy to find, and they can offer advice on the best shutters. The best approach is for the homeowner to show the expert a picture of the home.

Dress Up The Front Porch
If the home has a front porch, consider painting it if it looks worn and outdated. Add some wrought iron step handles, and place some flower pots on the porch where they can be seen from the street. Consider some hanging flower baskets.

The Landscaping
The grass should be cut and neatly trimmed along the cement walkways. Prune overgrown shrubs and hanging tree limbs, and plant some flowers in various colors. These steps will bring the front yard to life and give it a manicured look.

The Outside Is A Preview Of The Inside
Buyers will believe that the care that is given to home's exterior, and the yard, indicate the care that the home's interior has been given.

Million-Dollar Home-Selling Techniques

Are you looking to sell a home? It is crucial to understand home-selling techniques if at you want to sell the property as fast as possible, for the best price. If you follow these simple steps, it will not take you long to find a potential buyer.

Getting The Attention Of Potential Buyers

The main duty of real estate professionals is attracting able and willing buyers. Most owners of million dollar homes use lavish marketing techniques. Buyers of such properties expect high quality forms of presentation if at all you want to grab their attention considering the high number of properties on sale within the country. You need to ask yourself how you are going to find someone to buy your property before you embark on the process. One of the best ways to find inspiration is talking to other sellers.

Spice Up Your House

It is not easy to sell your property from an open house. You can throw a party or any other special event so that guests and potential buyers can have fun. This will make them to remember the property once you put the same on sale. For instance, if you want to sell your condo, you can organize with other agents to hold a joint open house event and then invite restaurants as well as galleries to showcase their samples. Inviting other local businesses provides potential buyers with an opportunity to have a taste of what the neighborhood has to offer.

Create Good-Looking Photographs Of The Home

It is not mandatory to spend a lot of money on expensive cameras and other equipments to get quality presentations of your home. As long as you have someone with the best skills behind the lens, you can get high polished photographs that will promote the sale of your home. You can hire a trained photographer to capture high quality photos so that you publish them on magazines and other sources of information. A good number of brokerage firms have staff photographers who can help you to save more money as you advertise your home. You only need to select the best listing agent and you will be good to go.

Use Drones and Slideshows

You can mount a camera on a pole and use it to take aerial view of your property rather than spending a lot of money buying expensive equipments for slideshows. Video slideshows are among the most used techniques to advertise property.

The Different Ways To Finance Home Improvements

The home improvement project you have been dreaming about can become a reality with the help of one of the many ways for financing it. We have put together a list of the different ways to finance home improvements. These are described in a basic way, but with enough detail to help you understand if one of these ways is right for you.

The Home Equity Loan
This method requires a complex approval process, and it requires that you have enough equity in your home to meet the lender's guidelines. These loans always have upfront costs. It does have some tax benefits. The monthly payment is fixed as is the interest rate.

Refinance Your Home
Often this method has some high upfront costs considering the amount of money you probably need to borrow. The approval process is complicated and burdened with documentation. Of course, you must have enough equity in your home to be able to borrow against it. The amount will vary with lenders, but generally, you cannot borrow more than a total of 80 percent of your home's value. This method offers a tax benefit.

Use Credit Cards
There are no upfront costs involved with the use of credit cards, and the approval process is usually straightforward. Collateral is not required. The monthly payment is fixed, and it may be on a declining scale. The interest rates are often variable and can be high.

Store Credit Cards
The stores where you can purchase the materials for your project may offer credit. This method has a simple approval process and no upfront fees. You will not be required to have collateral. The monthly payments work very much like the credit card payments. The interest rates are variable and can be high.

Borrow From Your 401(k)/IRA
These methods can take time and can become complicated depending on where your funds are deposited. Collateral is not required. Some of these loans require an interest payment that is actually made to yourself. The length of time allowed for paying the loan back can be substantial. There are no tax benefits. The major drawback to using these funds is they are not working for you when you borrow them. This means that the money you borrow does not have a chance of continuing to grow.

Borrow From Your Life Insurance
This can be a complicated process with upfront approval costs. The payback terms vary depending on the life insurance company The amount of equity in the policy will be used as collateral, and the guidelines for this requirement also vary.


Obtain A Personal Loan
There can be minimal upfront costs. The approval process is largely dependent on your credit and the amount of the loan. This loan does not usually require collateral. The monthly payment and the interest rate are fixed.

The Breakdown Of Buying Your First Home

Buying your first home can be a daunting experience because there are some steps involved that you are not accustomed to. You are probably concerned about affording a home. However, you can be assured by the fact that many first time home buyers have completed the process successfully and without difficulties. Success comes with good planning and preparation. We have put together a breakdown of buying your first home which includes the steps in the entire process from the beginning through to closing. While these steps are easy to follow, you may feel more comfortable talking with a mortgage broker before you start. A broker is an independent source of help who works for you and not the lenders.

Review Your Finances And Then Get Pre-Approved For A Mortgage

There are several reasons for this being your first step. Real estate agents will want to know your pre-approved amount so they can find homes that you will be able to buy. Another reason is the assurance you will have from knowing that an expert has determined that you can afford a specific amount of your income for a house payment. You will also learn how much money you will need to put down. While you may not be able to get an exact number for the closing costs, you will get a good idea about what they will be. It is important that you plan for closing costs which are due at the time you sign the mortgage documents at the closing.

Your First Mortgage

As a first time home buyer, you may find that an FHA mortgage will work best with your financial situation. The credit requirements are more lenient and the down payment will be lower. Your pre-approval will stipulate the type of mortgage you have qualified for.

The Earnest Money Due When You Can Make An Offer On A Property

Earnest money is paid to a third party to hold until closing at which time it is deducted from your down payment amount. The purpose for requiring an earnest money deposit is to assure the seller that you want to buy their home. Otherwise, the seller could find their property off of the market for a long time without it being sold. If there is a reason why the sale should not be completed, such as a home inspection report that identifies serious problems, then your earnest money is refunded. Your real estate agent will include in the purchase agreement all conditions which will result in your deposit being returned.

Appraisal

The appraisal is required to assure the lender that the home is worth what you have agreed to pay for it. This is also an assurance that you need to have since the purchase is an investment for you. If the appraisal comes back at a lower price, then you may be able to negotiate a lower sales price. If you cannot, then your earnest money will be refunded.

Home Inspection

This is a most important step because you will want to know every problem the home has. You will need to know if costly repairs will be required, and whether these will affect getting a mortgage on the property. Even newer homes should be inspected since construction defects can be encountered.

Closing

This is the moment when you take ownership of the home. To do this, you will have to pay the remainder of the down payment, which is the amount after the earnest money is deducted, and the closing costs which should be provided to you a few days before the closing. You will be given a list of each item included in the closing costs.