If you are a home seller, which of the multiple home purchase offers is the best choice? The highest price is not always the best offer. Pat Goldstein of Crye-Leike Realtors will be covering some factors to consider that make it more likely the buyer will close when they say they will close without a lot of extra cost to you.
Are you a homebuyer and you are more than a little frustrated with making offers on homes with someone else beating you out with their competing offer? I will be sharing some tips to follow that makes your offer much more competitive.
Tell me about YOUR real estate plans. Let me be on YOUR real estate journey as your lender. Let’s stay connected! Subscribe to our weekly podcasts with show notes at www.JoGarner.com
To Your Success,
Jo Garner, Mortgage Loan Officer NMLS# 757308
(901) 482-0354 Jo@JoGarner.com
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WELCOME TO REAL ESTATE MORTGAGE SHOPPE
Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. You can connect with me at www.JoGarner.com. Our general topic is WHICH HOME PURCHASE OFFER IS THE BEST OFFER? Thank you to Joe Rojas of Quality Title Group in Memphis, TN for sponsoring this episode of Real Estate Mortgage Shoppe. For closing on your home purchase or refinancing your home, call Joe Rojas at (901) 289-5821 at www.qualitytitlepro.com . Subscribe to get our weekly blogposts with podcasts at www.JoGarner.com. Call us while we are live at (901) 535-9732 Today is July 27th, 2018.
HOME BUYER AND HOME SELLER TIPS -TODAY’S TOPICS
If you are a home seller, which of the multiple home purchase offers is the best choice? The highest price is not always the best offer. Pat Goldstein of Crye-Leike Realtors will be covering some factors to consider that make it more likely the buyer will close when they say they will close without a lot of extra cost to you. Are you a homebuyer and you are more than a little frustrated with making offers on homes with someone else beating you out with their competing offer? I will be sharing some tips to follow that makes your offer much more competitive. If you are a homebuyer or seller, a realtor or lender, we invite you to call and offer your tips to our listeners.
INTRODUCING REALTOR PAT GOLDSTEIN
Pat Goldstein, a realtor with Crye-Leike Realtors in the Greater Memphis, TN and North Mississippi area is sitting in the co-host chair today. Pat has been a realtor for over 30 years and has earned a long line of awards. She was voted Realtor Associate of the Year in 2006 by Memphis Association of Realtors and given the Presidential Award and is a Life Member of the Multi-Million Dollar Club. Pat, at the Business Network International meetings and Talk Shoppe networking meetings, people call you the “Gold Standard” in real estate. Take a moment to tell our listeners a little bit about yourself and what you do for your clients. (Pat has about 1 minute to introduce herself and talk about what she does for her clients.)
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MR. PEREGRINE NEEDS TO MOVE
(Jo) Today’s topic is a hot one. Of course, as a licensed mortgage loan officer, it is my job to make sure my mortgage clients have a very strong prequalification letter that helps make their home purchase offer more compelling to the seller. Countless times before and after the closing, the sellers and their realtors have told me that our buyer did not offer the highest price for the home, but my borrower had the strongest prequalification lender letter.
One of my customers ask me to talk to the seller and let him know how strong their loan file was. The seller, Mr. Peregrine (not his real name) called me and sounded a bit exasperated. He was happy that he got multiple offers to purchase his home. He explained that he had landed a big paying position out of town and needed to move right away. He admitted that he h spent too much time fixing up his house to get top price and now he realized, it was more important for him to get the house sold and closed and get his money than to be stuck with having two house notes. “I am trying to decide which offer to accept, Jo. Your buyer did NOT offer the highest price for my house—someone else did. BUT, your borrower seems to be strong. I want to know, can you get this loan closed in LESS than 30 days? I need to move.”
Are you that buyer that wants to look your best, not only to a mortgage underwriter but to a home seller? I would like to be on your home buying journey as your lender. MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Connect with me at www.JoGarner.com. Email me at Jo@JoGarner.com or just call me at (901) 482-0354.
HOME SELLER FACTORS TO CONSIDER WHEN CHOOSING THE BEST OFFERPat, you work with both home buyers and sellers. What are some factors that sellers need to consider when they receive multiple offers for the purchase of their home? Can you give us some examples of situations you have experienced when you are representing sellers in multiple offer situations?
(Pat shares stories as examples of factors sellers need to consider when trying to choose the best offer in a multiple offer situation—about 4 to 5 minutes)
Just some ideas for factors to talk about ( you can say whatever you want on this topic—below are just suggestions)
1. The offer is much higher than the list price but the value for the neighborhood may not support sales price.
(getting verification from the lender that the buyer has the extra cash and the buyer agrees to pay the difference in the sales price and appraisal value if the value comes in lower)
(what about escalating offers up to a limit where the buyer agrees to raise the price a certain amount if other offers come in higher than their initial offer)
2. Calculating the amount to be subtracted from the offered price to account for concessions the buyer is asking the seller to pay
3. What about the amount of earnest money?
4. How do you weigh an all cash offer that is quiet a bit lower than the price offered from someone that needs financing?
5. How much difference does it make to a seller when it comes to the type financing the borrower is getting?
6. How important can a possession date be ? How often is the possession date a big deciding factor for sellers?
7. What about home inspection contingencies?
8. What about contingencies on the sale of the buyers’ current home? Is there any certain documentation a buyer can give a seller to show that their home will likely sell quickly? Etc?
(Jo) You’re listening to Real Estate Mortgage Shoppe and I’m your host, Jo Garner, licensed Mortgage Loan Officer. Connect with me at www.JoGarner.com or call me at (901) 482-0354. Call us while we are live at (901) 535-9732. When we come back, Pat Goldstein, realtor with Crye-Leike will be helping you decide which home purchase offer is the best one.
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LOOK BACK MEMPHIS TRIVIA CONTEST
2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Jimmy Ogle offers free historic walking tours downtown in the spring and fall. For information about Jimmy Ogle, go to www.JimmyOgle.com . The Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732.
Garner # 136 * 07/28/18
Barbara Walker
Question: I won a very special nationwide award in 1947. Who am I?
Hint: I was the last person from a city to be given this award.
Hint: I was the last person given this award in a bathing suit.
Final Hint: A street in Memphis was named in my honor.
Answer: Barbara Walker (Barbara Walker Hummel). Barbara, better known as Barbara Jo, was the last Miss America to be crowned in a bathing suit. She was also the last pageant contestant to represent just a city rather than an entire state (Miss Memphis). Barbara Jo represented a very wholesome image to America. She won the Miss Memphis pageant in 1947, while attending Memphis State College (The University of Memphis) and later that year won the National Pageant and became Miss America 1947. She pursued her degree and graduated from Memphis State in 1948.
The Walker family lived on Harrison Street, just north of Rhodes College, when Barbara won Miss America, and the street name was changed to Barbara in her honor.
After graduating college she married John V. Hummel, MD. Barbara had a wonderfully varied career from numerous theater performances to being one of the first female daytime TV talk show hosts in the country. She also performed as a soloist at Second Presbyterian Church for thirty-six years, and served the Beethoven Club, Decorative Arts Trust and Miss Memphis Pageant for many years.
Jimmy Ogle gives free walking tours on the sidewalks and parks in Downtown Memphis during the year, with the next being the Judge D’Army Bailey Courthouse Tour at 12:00 noon on Thursday, August 16 (meet at the southwest steps, corner of Second & Adams). Go to JimmyOgle.com.
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QUESTIONS ANSWERED BY Pat Goldstein, Realtor with Crye-Leike Real Estate
1. What are some factors that a home seller needs to consider when they are faced with multiple offers for their home?
A. The offer is much higher than the list price but the value for the neighborhood may not support sales price.
(getting verification from the lender that the buyer has the extra cash and the buyer agrees to pay the difference in the sales price and appraisal value if the value comes in lower)
(what about escalating offers up to a limit where the buyer agrees to raise the price a certain amount if other offers come in higher than their initial offer)
B. Calculating the amount to be subtracted from the offered price to account for concessions the buyer is asking the seller to pay
C. What about the amount of earnest money?
D. How do you weigh an all cash offer that is quiet a bit lower than the price offered from someone that needs financing?
E. How much difference does it make to a seller when it comes to the type financing the borrower is getting?
F. How important can a possession date be ? How often is the possession date a big deciding factor for sellers?
G. What about home inspection contingencies?
H. What about contingencies on the sale of the buyers’ current home? Is there any certain documentation a buyer can give a seller to show that their home will likely sell quickly? Etc?
I. How effective is a buyer’s genuine letter to the seller explaining what they like about the seller’s house and the back story on why it would mean so much to be able to purchase the home.
2. What are some tips that you can give a seller to get the highest price for their home?
3. What are some real estate strategy tips you can give to a homebuyer?
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QUESTIONS ANSWERED BY Jo Garner, Mortgage Loan Officer
1. What are your mortgage tips for homebuyers to make their home purchase offers more attractive to sellers?
My mama used to tell me that keeping a smile on my face could make me look nice even on a bad hair day with no time to put on makeup.
A. Making sure the language on the mortgage prequalification letter is strong. If the buyers volunteer all of their income and asset documents to be reviewed by the mortgage office, the mortgage loan officer can include in the prequalification letter that the borrower’s credit, income and asset documents have been reviewed by the lender. Most prequalification letters do not mention all of these details.
Making sure my mortgage clients get prequalified for much more than they really need on the mortgage so if they found a home that they really, really love, they can make their highest and best offer on the front end to the seller.
B. Getting the mortgage preapproved for the buyer with no contingencies requiring the buyer to have to sell the current home before buying the home they want to buy.
Example-Dorey Dobell (not her real name) who had been married for twenty years was making a new positive start in her life following a grueling divorce. She was awarded the big house she and her husband had owned but she also inherited the taxes and insurance and the mortgage payment.
She found a home she really liked in a different neighborhood. Out of all the homes she had seen, this one just felt really right—really peaceful, giving Dorey hope. She wanted this house badly but some others did too.
Dorey didn’t want to buy this house without selling her other one but she was afraid to make her offer to the sellers with a contingency that she had to sell her house first. She needed the equity she had built up in the old house to pay down on the new house so that the payments on the new house would be manageable on a single income.
The answer for Dorey. She got a short-term home equity line of credit on her old home to use for the down payment on the new home. She used some of the funds to paint and stage her old home so that it would sell in record time at the highest price. She was able to put down the large amount she initially wanted to pay down on the new house and, after doing some fix ups on the new house, she sold her old house and arranged to close on it the same day she was closing on the new home.
It was a happy ending to the story of the tale of two houses.
C. Finding money in other places to avoid asking the seller to pay the buyer’s closing costs and prepaid taxes and insurance.
Let me share the story of Cole and Darlene, a young couple buying their first home. They had planned on renting longer and saving up some money for a small down payment but the rental unit started getting overrun with poisonous spiders and there were other structural problems. They needed to move, but didn’t want to have to sign another lease for a whole year.
The answer was that they found a starter home in an area right outside town that qualified as a USDA 100% Rural Housing loan. It looked like there would be some competition for the home and, even with a zero down payment loan, they were still going to have to ask the sellers to pay their closing costs and prepaid taxes and insurance of about $6,000. This would make their offer not so attractive because it would lower the seller’s net profit by about $6,000.
The answer? Cole and Darlene got approved for TWO different programs and combined them. They qualified for the 100% down payment USDA Rural Housing mortgage and Tennessee Housing Development Agency let them use 5% of the sales price of the home as a 2nd lien assistance to pay for the closing cost and prepaid taxes and insurance. Cole and Darlene could buy the house they wanted with nothing down without asking the seller to pay anything for them.
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REAL ESTATE TIP OF THE WEEK
Pat Goldstein suggested that, in some situations, it might be better for the seller to go ahead and have a professional home inspection done so the buyers will be less likely to halt the loan process over items that concern them that they did not see on their own walk through the property. This can save a lot of time.
Jo mentioned that it is common for the buyer and seller to agree on a contract and get started processing the loan with a short deadline to close, only to have the whole process come to a stop when the buyer orders a home inspection and finds problems that were not addressed during the contract negotiating stage.
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ANNOUNCEMENTS
Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at Pinot’s Palette 8225 Dexter Rd Cordova, TN. This Wednesday August 1, 2018 Talk Shoppe presents Dr. Janet Cherry will be sharing some business etiquette tips from her latest book Manners On The Move From The Sandbox To The Executive Suite By Dr. Janet Cherry and co-authored by Judy Burda. JanetCherryTrainer@gmail.com and twburda@bellsouth.net
Talk Shoppe events are free thanks to advertisers like Mary Lou Nowak of Mid-South Home Helpers, non medical assistance helping your elderly or handicapped loved ones remain safely and comfortably in their own home. www.homehelpershomecare.com (901) 414-9696
2. Thank you to Joe Rojas of Quality Title Group for sponsoring this episode of Real Estate Mortgage Shoppe. Who do you know who wants to buy a home or refinance one in the Greater Memphis, TN area or North Mississippi. Call Joe Rojas of Quality Title Group at 901 289-5821 http://qualitytitlepro.com/
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE USE FICTIONAL CHARACTERS AND DO NOT REFLECT REAL PEOPLE OR ACTUAL DETAILS IN ANY OF THE SITUATIONS.
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QUOTE CORNER:
From Laughter Is The Best Medicine “ I just sold a lawnmower on Craig’s List. That’s the last time my neighbor will wake me up on a Saturday morning.” (I bet someone bought that lawnmower on the cheap.)
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REJOINDERS:
1. Bernice L. Ross, Austin Texas author and real estate syndicated columnist with Inman Real Estate Radio.
2. Mary Jane Lessely, Signs Now of Memphis (901) 368-0784 for signs, banners, window graphics, Electronic Reader Boards, Exhibit Displays and more www.SignsNowMemphis.com
3. Kevin Yee, Memphis, TN Save Energy Solutions www.sesinfo.biz. Keeping the bad air out of
Transitional Music: Torn Between Two Lovers Mary MacGregor; “I Choose You” By Sara Bareilles; “Signed Sealed Delivered” by Stevie Wonder; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest
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ABOUT PAT GOLDSTEIN, CRYE-LEIKE REALTORS
ABOUT PAT GOLDSTEIN, REALTOR CRYE-LEIKE, INC• (901) 606-2000
2006 MAAR Realtor Associate of the Year 2005 MAAR Presidential Award Recipient TAR Leadership Graduate Member National Association of Realtors
• Life Member of the Multi-Million Dollar Club. Toastmasters Division Governor CBS (Certified Builder Specialist)
• CRA (Certified Relocation Associate)
• CRS (Certified Residential Specialist)
• GREEN (Green Agent)
• GRI (Graduate, Realtors Institute)
• MMDC (Crye-Leike Multi-Million Dollar Club)
• SRES (Seniors Real Estate Specialist)
• SRS (Seller Representative Specialist)
• Vice-President (Circle of Excellence)
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?
Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 20 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 20 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com She was also the editor of Power Shoppe, a free weekly e-zine designed for real estate professionals and others indirectly connected to the real estate industry and currently publishes on her blog www.JoGarner.com