Why Buy Now – The Impact of Waiting

Business Week has an article that explores the case for buying now based on low interest rates. The article discusses the financial impact that interest rates have on the cost of buying and paying off a home. “Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed.” If you are waiting for Tampa Bay home prices to fall further, click here for the article.

Here is a quick excerpt:

You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is “more stable” and it’s safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you’re borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I’m trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime. full article.

Did You Pick The Right Home? The Contract-to-Close Process.

Congratulations, your offer to buy the home was accepted – now what? Did you really pick the right home? Does your Realtor have a “Due Diligence Checklist” to help determine if this is truly the right home to match your needs across the four fundamentals of home buying? You need a proven process to ensure that you take advantage of every negotiation opportunity that arises during the inspection, appraisal and closing process. The goal is to confirm if this is the right home, reduce unpleasant surprises, and save you money by going way beyond what a traditional agent would offer.

Manage the Process
Once the home is under contract (in escrow), our team and system manage all the details. Using our tested Home Buying System, we coordinate the timelines, escrow, inspections, repairs, survey, warranty, appraisal, financing, home insurance, title and other aspects of the closing.  There are over 125 steps, a multitude of variables, and several companies that must communicate and execute perfectly to close the transaction on time.

Fall Out Rate
National statistics show that 34% or more of transactions fall apart during the contract phase. While we cannot control every aspect and every company involved in the transaction, our system pro-actively manages the variables to ensure that you are buying the right home at the right price. When turbulence arises, you can have the confidence to know that we have encountered this situation before and have an alternate flight plan. Here are some examples of unpleasant mortgage surprises, but there are others for inspections, repairs and title issues.

Are you tired of agents who “wing it? Have you been left in the lurch before? Call today to experience a team with a repeatable business process that consistently produces raving fans.

Home Buyers Beware: Avoid these 12 Unpleasant Mortgage Surprises

Don’t be left at the alter without a loan! The Tampa real estate market is seeing a high percentage of transactions fall apart during the contract process due to financing issues. One thing we have learned over the years holds true: “Promises and personalities do not ensure success, process does”.

To avoid the pitfalls below, Team Bohannon used a Home Buying System to ensure the lender has the processes, performance guarantees, and communication in place to protect against these 12 Unpleasant Mortgage Surprises.

– The loan program you were quoted is no longer available.
– The loan was not locked interest rate floated above your approved rate.
– The Good Faith Estimate doesn’t match the final fees.
– Closing Costs were not estimated based upon local customs.
– Neighborhood CDDs were not figured into closing costs.
– The home does not appraise for the purchase price.
– The appraisal is late.
– The loan isn’t approved on time.
– Unreasonable last minute requests for buyer documentation.
– Underwriters do not approve financing at the last moment.
– Contributions toward closing costs are disallowed at the last moment.
– The company goes out of business during the transaction.
– Key personnel leave the company delaying the approval process.
– The conditional loan commitment was mistaken for a full loan approval.

When a lender examines your credit, they are assuming that your credit score will not drop between initial preapproval and final underwriting. They are also assuming that you will not be making any major purchases such as furniture or cars in between contract and closing.

What steps can you take to avoid these issues? For starters, do not make the mistake of selecting a lender based solely on the interest rate or by passing acquaintance. As part of our value added services, we walk you though qualitative and quantitative comparisons of loan options for your new Tampa Bay home. While we cannot control every company and person involved in the loan approval process, our Home Buying System is designed to pro-actively manage all the variables that could signal trouble.

For the quantitative analysis, our system  uses the a Lender Comparison Matrix to analyze the Good Faith Estimates (GFEs) from leading lenders. The LCM provides a detailed costs comparison that can help uncover hidden costs. This organized and systematic process helps remove the guesswork and select the best loan for your overall goals.

For the qualitative analysis, we focus on the track record and business practices of the loan officers and their lending institutions. Low interest rates are great, but can they deliver on time, without surprises, and will they call you back? Is the processor and underwriter based locally, or are you at the mercy of a far off processing center? How much knowledge and experience does that loan officer have? What are the chances the company will still be in business by closing, or the contacts will still be at the company?

Contact Team Bohannon today at (813) 979-4963 for a information on obtaining the best loan.

What is a Real Estate Team? Why Should I care?

emythbookjWho & What is “The Team”?
You might be wondering “what is a Real Estate Team”? Why should I care?  Realtors who provide goodservice can expect to see business grow. Like any small business, there comes a time when the business grows to a point where one person can no longer do everything. At this point, Realtors must decide how to proceed: attempt to maintain service levels all by themselves, or hire a team. Traditional Realtors operate as solo agents, while others form teams – or quasi operating companies. Regardless if you select a traditional Tampa Realtor (solo practitioner) or a team, you will have one primary point of contact responsible for fulfilling your goals.  Here are the differences below should matter to you:

 A Real Estate Team, as run by Team Bohannon:
– has multiple agents working together
– has a staff to implement marketing plans
– has administrators oversee details between contract and closing
– has “specialist” for various aspects of the real estate business
– utilizes systems to achieve predictable results & service levels
– allows agents to grow “as a business” rather than “as a craft”
– pools resources and spend money on marketing
– has meetings, business process and accountability
– has employees, benefits, budgets, and financial planning
– ensures someone is available 7 day per week
– allows agents to achieve life/work balance.
– can do several things at once: show homes, implement marketing plans, provide feedback on showings, update a market analysis, handle negotiations, review inspections, follow-up on financing, meet appraisers, manage contracts, and attend closings.

 Traditional Agent/Solo Realtor
– is kind of like a “one-man-band”
– can quickly become very busy and overwhelmed
– faces major time pressure to do multiple things at once
– has a challenge maintaining service levels at times
– must have diverse skills: sales, marketing, administrative, clerical, creative
– cannot realistically work 7 days a week, every week
– are more subject to burn-out
– will leave town and take vacations or be unavailable at times
– must do several thing at once: show “out of town” buyers homes, implement marketing plans, provide feedback on showings, update a market analysis, handle negotiations, review inspections, follow-up on financing, meet appraisers, manage contracts, and attend closings.

Using Systems Properly
We know that great systems poorly executed will fail to deliver results.  We have learned a few lessons en-route to selling over 4,100 homes in the Tampa Bay area. We rely on a team approach to ensure our systems produce world-class service at every phase of the transaction. There are over 125 steps, exponential variables, and several companies that must communicate and execute in harmony to close a transaction on time. The team implements systems to coordinate the timelines, escrow, inspections, repairs, survey, warranty, appraisal, financing, home insurance, title and other aspects of the closing.  It has taken years to assemble a team and align the right people with the right skills to run the system. If turbulence arises, you can have the confidence to know that we have encountered the situation before and have an alternate flight plan. The system and the team allow us to deliver a predictable level of service that you can feel confident in when recommending us to your friends and family.

The Extended Team: Business Management Team & Vendors
Every team has a coach. Although we have been in business for decades, we have found value in consulting a Business Coach for process audits, new ideas and continuing education. Our coach brings ideas from top experts in the real estate, marketing and technology fields from around the country. We discuss best practices and key books such as: The Speed of Trust by Stephen M.R. Covey. Our business management coach helps us keep the focused on building long term relationships that form the foundation of world-call service and durable competitive advantage.

As your Value Added Real Estate Experts in Tampa, we work closely with lenders, title companies, inspectors, movers and an array of home repaid vendors. We cultivate relationships with qualified vendors that are in alignment with our mission. We look for experienced vendors with high standards of performance. In some cases, we have negotiated special discount for our clients.  We rely heavily on satisfaction surveys to monitor 3rd party vendor performance.

Call today to sepak with Team Bohannon at (813) 979-4963.

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