Today's homebuying experience

The Market
Getting Started
Finding Your New Home
Making a Winning Offer
Contract to Close
A Responsible Homeowner

How's the Market?

Central Ohio Market

Central Ohio Active Listings

What's Driving this Seller's Market?

Robust & Diverse Economy

• 17 Fortune 1,000 HQ's
• State Capital of Ohio
• 52 Colleges/Universities (Including OSU)
• Top 10 USA Millenial Concentrations
• +1M People by 2050
• No Sector +20% of Workforce
• Soon to become Semiconductor Capital of World (Intel, Google, Amazon, Facebook...)

Where are the listing?

BIA STudy

• At the current construction rate, the region is falling short and would need to approximately double its housing production to meet the projected need.

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Waiting for

Reasons to Buy

• Planted Roots + Plan to Stay (3-5 Years)
• Debt Under Control + Strong Credit
• Saved for Downpayment + Closing Costs + Rainy Day
• Benefit from Rising Equity
• Job Stability
• Work from Home Revolution
• Same Monthly Payment

Reasons to reconsider

• May Move in 1-3 Years
• Job Instability
• Unfavorable Credit
• Not Enough Saved
• Can't Qualify for What You Want

How to Quantify?

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Qualifying for a Loan

Know Your Credit Standing

How Credit is Determined

• Best is 850, Low 580'ish
• Median Score of Three Credit Reporting Agencies
• Lowest Median Score if Joint Applicants
• 740+ Gets Best Rates
• Lender Uses Certain Algorithm (Can't Rely on Sites Like Credit Karma, but Good Start)

credit Repair Tips

• Pull Credit Early in Process
• Check for Errors
• Dispute Mistakes + Ask for Proof
• Get Accounts in Good Standing
• Minimize Utilization (
• Great Lender Should Have Referral Partner for More Complex Situations

Current Rates (January 8th)

• 6.62% (Conv. 30 Year Fixed)
• 6.07% (15 Year Fixed)
• 6.09% (FHA 30 Year)
• 6.1% (VA 30 Year)

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How much can you afford?

• 35% - 50% Monthly Gross Income
• Subtract Minimum Monthly Payments on Credit Report
• Result is Total Monthly Housing Payment

Example

• $6,000 Monthly Income
• x 45% = $2,7000
• - $500 Minimum Monthly Debts on Credit Report
• = $2,200 Max Housing Payment

Loan Types

Conventional

• $726,200 Max Loan Amount
• 740+ Credit Best
• 3-20% Down
• Gift Funds Allowed
• PMI Drops @ 78% Loan:Value

FHA

• 488,750 Max Loan Amount
• 580+ Credit
• 3.5% Down
• Gift Funds Allowed
• PMI for Life of Loan

Closing Costs

• Estimate 1-5% of Purchase Price
• Includes Loan Costs, Appraisal, Inspections, Taxes
• Lender Will Go Over All Fees

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Getting Pre-Approved

What' You'll NEed

• Two Years of W2's
• Two Months of Paystubs
• Two Months of Bank Statements

run credit purchases past lender

Hire Right

Your "Core Four"

• Buyer Agent
• Loan Officer
• Home Inspector
• Insurance Agent

traits of your ideal agent

• Know How to Qualify
• Heart of a Teacher
• Thoroughly Understand of Market
• Full-Time in Real Estate
• Work only with Agreement in Place
• Use Two Ears, One Mouth Proportinately
• Have Strategy for Finding Off-Market Homes
• Fiduciary Not Functionary

Types of Representation offered

• Listing Agent (Represents Seller)
• Buyer Agent (Represents Buyer)
• Dual Agency

What Agent Owes their Client

• Obedience
• Loyalty
• Disclosure
• Reasonable Care & Diligence
• Accounting
• Confidentialiy

Buyer Agent Interview Questions

• Experience w/First-Time Buyers + References?
• How Long They've Been Licensed?
• Their Strategy for Finding Off-Market Homes for Sale?
• How and When Can They be Reached?
• Real Estate Full-Time?
• Ever Needed to Use Their E&O Insurance?
• Been Disciplined by Division of Real Estate?

Buyer Agent Interview Questions

• Ever Been Disciplined by Division of Real Estate?
• How Many Homes Will You Show me?
• What are Your Fees?
• Working with You or Team Member?
• Will you Have Time for me?
• Required to sign Exclusivity Agreement?
• Can I Cancel Contract if not Happy?

Choosing Your best lender

• Heart of a Teacher
• Experience and Patience to Answer All Questions
• Local + Available During Crunch Time
• Great Communicator
• Competitive w/Rates

The Home Search

Viewed 9 homes in person

Searched for 8 Weeks

Timeline (13-14 Weeks)

Target Market

Showing protocol

• Home is listed with agent on MLS
• Showings Start Date
• 30-60 Minute Showing Window
• Preview Showing if Requested
• Be Respectful (Not Your Property)
• Be Honest (Not My Home)

If you'd Like to Make an offer

• CMA Prepared
• Listing Agent Called
• Have Lender Run Numbers
• Property-Specific Pre-Approval
• Cash > Pre-Approval > Pre Qualification
• Using Standard Board Purchase Contract
• Up Against 4+ Offers
• This is when your agent earns their keep

What Sellers Want

• Net Most Money
• Least Amount of Headaches
• Competent & Trusted Buyer Agent
• Reputable & Trusted Lender
• On Time Closing
• Appraisal Gap Coverage
• Post-Closing Possession

Questions Your Lender May Be Asked

• Have you Verified Funds?
• Pre Qual, Pre-Approved, or Pre-Underwritten?
• Can Meet Timeline?

Offer Accepted!

Time to Close the Deal

Offer to Close (4 Weeks)

• Earnest Money $500 - $2,000 (3-5 Days)
• Inspection Period $400 - $600 (7-10 Days)
• Remedy Period (?)
• Appraisal & Loan Commitment (20-25 Days)
• Title Commitment (15 Days Before Close)
• "Clear to Close"
• Final Walk-Thru (1-2 Days Before Close)

Big Three Contingencies in Deal

• Satisfactory Inspection
• Financing
• Clear & Marketable Title

Home Inspection FAQ's

should you skip it?

How miuch does it cost

What is inspected?

• Visual Inspection
• Non-Invasive

Most Common Home Inspection issues

• Wiring
• Roofing
• Heating & Cooling Systems
• Plumbing Issues
• Water Intrusion
• Structural Damage
• Poor Perimeter Drainage

Tips for getting through inspection

• No Home is Perfect
• Inspector is Generalist
• Get Inspector in Early in Case Issues Found
• Inspector Should Clarify Not Terrify
• Major Issues Should Give You Pause

Closing

• Switch Utilities
• Final Walk-Thru
• Certified Funds
• Certified Funds
• Closing Paperwork

Being a good homeowner

Take care of it - it will take care of you

• Home 1st. Asset 2nd
• Annual HVAC Servicing
• Seasonal Maintenance
• Keep Water Away
• Don't Let Repairs Drag On
• Don't Overimprove and Expect More

Most Common Buying Myths

Find Home then Get Pre-Approved

• Need to be Prepared to Act Quickly
• Shows Strength to Sellers

Make Lowest OFfer first

• A Competitively Priced Home will Sell Fast w/Multiple Offers
• Sellers Have Stack of "Players" v. "Non-Players"

thinking of Skipping Inspection

• Safety #1
• Murphy's Law
• O'Reilly's Law

Go to Listing agent will help

• Listing Agent Reps Seller
• No Duty to Look Out for Your Best Interest
• Making Same Commission
• Ethical/Legal Headache

my value proposition

• Trained on WSJ Top 100 Team
• Excellent Standing Amongst Peers
• Full-Time
• Strategy for Finding Off-Market Homes
• Project Manager > Salesman
• Experienced Negotiator
• Network of Reputable Contractors
• Managing Broker of Largest Firm in Central OH

what questions do you have?