HomeBuying

I don't think there's anybody at all that thinks they can buy or sell the home and not spend any money between the contract to closing, but a lot of times people are a little confused about exactly who pays what and what are they going to have to pay. So here's a little breakdown of that whole scenario. And whether you're the buyer or the seller, what you're going to have to actually outlay before you get to the closing table. So remember, on the buying side, you're obviously the one that's going to spend the lion's share of the dollars even though you may be saving for those closing costs and the down payment, remember, there are a couple of things that you're going to have to pay before you actually get to the closing table. First of all, when you write that contract, you're going to have to put an earnest money deposit. Generally, this is going to be about 1% of the purchase price of the house. So if you're looking at a $400,000 house, that earnest money deposit is going to need to be about $4,000. So that can generally be paid by check, cashier's check or a money order or wire transfer, but it gets paid right then and yes, it gets deposited. We're not putting that cheque in the desk drawer until closing. However, that money does get applied towards your final closing costs and down payment number so it doesn't just go away, but you are going to have to pay that at contract. The next thing you're going to have to pay is going to be your inspection. That's going to get paid directly to the inspector, generally going to be between five and $600, depending on the size of the house, and it may end up being more if you have additional inspections like radon, electrical, roofing, etc. The third thing you're going to have to pay out of closing, and this may well for most people be the last thing you're going to have to pay outside of closing, is your appraisal. Keep in mind that appraiser wants to get paid whether your deal goes through or not. So they're not going to count that as one of your closing costs. That's generally going to be between five and $600 or so, and that is going to be required to be paid by the lender out of your pocket before closing. Once you get to the closing table, you can estimate that your closing costs are probably going to be between 2% and 3%. A lot of that depends on the type of loan, the lender, and all that good stuff, but that's going to cover all of your insurance, your taxes, your title search, your title insurance, all sorts of little fees like wire transfer fees, and such generally between 2% and 3% of your total cost, in addition to your down payment. Now what if you are the seller in the transaction, your final closing costs number is probably going to be less than $2,000. In most cases, it's going to be between $1,000 and $1,500. That's going to cover the fee for the attorneys to prepare your deed and again, all the city, county, and state taxes because everybody wants a little piece of the action. The other thing that you're going to have to pay for as a seller is the termite inspection. That's the only inspection that the seller pays for not the buyer—generally about $100. The buyers also going to have their inspection so if they want repairs done and you negotiate repairs, you're gonna have to pay for those too. Whether you are on the buying side or the selling side there are definitely costs but they are a whole lot easier to swallow when you know about them ahead of time. If you have any questions on either side of the transaction or if you need help buying or selling a home I'd love to help you give me a call! Have questions I didn't answer? Send me an email or dm me on Instagram @cindybennettrealestate.

If you're on social media at all, you've probably seen someone do this trend, "Five Things I'd Never Do As A..." Well, I definitely have thoughts on this, and while there are probably more, these are either the top 5, or the first 5 that come to mind, I'm not sure which. (If I think too hard about it, I'd probably have 50.) Anyway, without further ado, here they are: 1- I would NEVER start looking at homes without talking to a lender first. Knowing your numbers- not only what you qualify for, but also what your downpayment options are, your closing costs, and your monthly payment will be is invaluable info. I cannot stress enough how often people guess incorrectly at this and fall in love with a house that's more than they can (or want to) swing, or start looking at homes and get exhausted because they can't find what they want, and they can actually afford me. (I mean, my clients don't, because I don't show anyone homes before they're preapproved.) 2- I would NEVER assume that Zestimate is accurately valuing my house. These automated estimates are based on an algorithm, so obviously they've not been in your home. Renovated kitchen? They have no idea. No updates at all? Still, they have no idea. It's simply based on the amount of similarly sized homes in the area that have sold recently. That's it. No homes like yours have sold? The more opportunity for it being incorrect. There is no replacement for having a real, live Realtor® walk through and do a thorough assessment and comparative market analysis. 3- I would NEVER buy the most improved house in the neighborhood. Yep. If it's between the $500,000 turn key, HGTV "big reveal" style home, or the "needs a little love" home down the block that is $400,000 (caveat- I'm assuming that the homes in the neighborhood trend closer to that $400k range) I'm picking the $400k home and putting in the work. It will be what I want, probably not cost me $100k, AND give me some instant equity. 4- I would never RELY on a home warranty to cover me for everything. I'm not bashing home warranties (although I could- that's another post entirely), and I do think in some circumstances, they provide a bit of a safety net. But, having had lots of experiences with these, in most cases, you can get the small things done for the same price (or a bit more) with SO MUCH less hassle by just calling someone who does that work. Will they replace your heat pump if it conks out? Yes, but with lots of hoops for you to jump through. 5- I would NEVER expect the inspector on my listing or home to find nothing. There is literally ALWAYS something, and they are paid to find it. I can almost guarantee, too, that if you have one inspector over today, and they give a list of things to fix (and you fix them all), you can have another over the next day, and they'll find a whole new list. Do the best to get your repairs done, but don't expect nothing. And if you're buying? Remember- everything can be fixed. It's just a matter of what needs to be done, how much it will cost, and who pays for it. Did any of these surprise you? I'd love to hear something you'd never do after buying or selling one (or 100) homes!

Let's discuss what I mean by "referral platforms" and what happens when you start your home search using one. Have questions? I'd love to help answer them! Find me on Instagram @cindybennettrealestate or send me a message with the chat button below.

Well, it's been a minute since I bought my first home, but it occurred to me that there are some things that I really wish I had known. So here are the seven things that I wish I had known when I bought my first house. Number one, as soon as you start looking at Pinterest, scrolling through apps, and looking at homes, find yourself an agent. Whether it is your next-door neighbor's best friend, or you find someone online on social media, ask your friends, ask your family, and find an agent that is going to work for you. Number two, the listing agent represents the seller. So if you are scrolling through homes online, and you roll up into an open house on a Sunday, and you love it, the only agent that you have now had any sort of communication or relationship with is the agent that represents the seller, that is not necessarily the agent you want representing you. Number three, don't be afraid to ask questions. And I mean, ask questions, there is no stupid question. Ask your lender, ask your friends, ask your agent, and make sure that all of your questions get answered, I see this almost more with folks who have purchased multiple homes than I do with first-time buyers. So even if you've bought five, six, or ten houses, you probably haven't bought them this year in this market, and maybe not in this state or in this city or county. So don't hesitate to ask, I promise we're not going to judge you and think it's a stupid question. Number four, know your numbers. So you're obviously going to be saving for your closing costs and your downpayment, and all of that stuff. But remember, you're going to want to furnish that house too. You might want to buy some plants, you're gonna have to pay for movers. So make sure that you're accounting for those things. I have some great checklists and your agent probably does too. Make sure that you're preparing for all of those circumstances that are going to come up. Number five know the disclosure laws. Here in Virginia, we are a buyer-beware state which means the seller doesn't have to tell you all of the stories about the times that the pipes leaked or anything else. They are going to say as far as we know, it's okay. Unless as far as they know, it's not. They are required to disclose if they know there's a problem, but proving that they knew or didn't know later is very difficult. Have an inspection with an inspector you trust and again, ask questions. Number six, just to reiterate, have an inspection. You can have any and all inspections as long as you have listed those in the contract and agreed upon that with the seller in your contract for purchase. So not just a whole house inspection, but if you're particularly concerned about the roof, you can get a roofer out there to check it out. You are going to pay for all those inspections but it is a whole heck of a lot easier to do that than pay for a new roof after closing. Finally, number seven, lean on your agent. This goes back to selecting an agent that is somebody that you are comfortable with, comfortable asking questions and comfortable getting referrals from. My clients call me years, months, whatever later and asked me for a great lawn care person or a great gutter guy. If you want somebody who can be a resource, make sure you have all your information. I promise you a will make the process so much easier. If you are looking to buy a house I would love to talk to you. I am happy to help answer any questions whether you are here in the central Virginia region and I would love to help you but I have agents and friends all over the country that I can put you in touch with to give you the same level of service.

I've got some good news if you've been thinking of buying a home, and the last couple of years have proven to be just too stressful. The market that has been so consistently crazy for the past couple of years is finally starting to calm a bit, making the buying process just that much less stressful. While we are still in a seller's market here in the Richmond area, the wild times of no inspections, no appraisals, and multiple offers driving prices way over asking seem to be waning, and at least a bit of negotiating power is coming back to buyers. Here are a few of the things we haven't seen in a while that are a sight for sore eyes if you're buying: Negotiation and Contingencies are back!  According to a recent survey done by the National Association of Realtors®,  Homes that sold at- or above-asking price peaked at 82% in Feb. and March of 2022 when mortgage rates were below 4% and dropped to 69% for homes that sold within the last month when rates hovered near 6%. By contrast, the share of sellers who sold below-asking jumped from 18% in Feb. and March 2022 to 31% for those sold within the last month. Additionally, 92% of all recent sellers accepted some buyer-friendly terms. Those included: 41% Accepted some contingencies in the contract (appraisal, home inspection, home sale, financing, etc.) 32% Dropped the price because the home didn't meet appraisal 32% Paid for some or all of the buyer's closing costs 30% Had to be flexible on the ideal timeline for closing 29% Paid for repairs to the home after the appraisal 28% Were not able to rent the home back after close despite asking to How about an inspection? An inspection is always a great idea. Remember, Virginia is "buyer beware," meaning unless there is a material defect, sellers don't have any disclosures they are required to provide. (And trust me, not everyone understands what "material defect" means.) Over the last couple of years, we've seen fewer and fewer inspections requested as buyers with stiff competition try to make their offers more appealing to the sellers. Of sellers who sold in the last month, 95% reported that the buyer requested a home inspection, up from 82% of those who sold 6-12 months ago. More than twice as many buyers of homes that sold in the last month asked for repairs as a result of the home inspection (67%) compared to homes that sold 6-12 months ago (31%). The number of surveyed sellers who refused to pay for any repairs during that time dropped from 8% to zero. Keep in mind, we are still in a low inventory market, and most homes are still selling quickly. However, in our area at least, we are seeing fewer double digit multiple offer situations, and more where there are just a few. Every neighborhood is different, and every home is as well. Those homes that are totally "done" are still selling pretty competitively, but there are opportunities in this market for buyers.  If you're selling, checking all those boxes for things buyers love is starting to make more of a difference than it has, and knowing the market conditions and how to price accordingly is important again. Homes are still selling, and selling well, so don't despair that you've missed your window. You haven't! Whether you're buying or selling, I'd love to talk to you about your individual real estate goals and how to help attain them. Give me a call!  

As we close out yet another "unprecedented" summer, it's a great time to check in on the market and give you a few numbers, but also a breakdown of my assessment on things. Here in the Richmond area, we have definitely seen things cool a bit, but it's by no means ground to a screeching halt. A few things to note, number wise. (These are numbers for the Richmond Metro area, so the city and surrounding counties) The average home price has finally dipped a bit month to month, dropping from $429,015 in July to $420,926 in August. If you look at this graph, you'll see how prices have trended generally over the last year, and it's been pretty steadily increasing all along, until now. (July was a bit lower than June as well.) Days on Market has actually gone up in August over July as well, with the average home now staying on the market 15 days instead of 11. Yep, these are not huge differences month over month, and they are still stronger numbers than last year at this same time. We are very much still in a market with low inventory, and we still have a bit of a backlog of buyers that are still looking for homes. So what does this all mean if you are one of those buyers still looking in this market? Good news! We are seeing more negotiation for buyers, with people able to actually "make an offer" in some cases, as well as have full home inspection and appraisal clauses in their contracts. This is something we haven't seen in some time, and as someone who works with a LOT of buyers, I have to say it's a welcome change! But what if you're selling? Have you missed your window? Absolutely not. As I mentioned before, we still have fairly low inventory, and that means there are still more buyers than sellers, and pretty high demand. Did you miss the window of multiple offers with no contingencies and way over asking? Maybe. We are still seeing plenty of multiple offers, but that's a bit unpredictable, even in the "hottest" of areas. If you need to sell, though (or just want to sell), it is still a good time, just in a more normal sense of good, rather than totally crazy like it was 6 months ago. Do you have questions about the market as we head into fall? I'd love to help you get your questions answered, and make sure you have all the information to make any move you need or want to make. Call me!

Okay, so let's talk about rent backs. What is a rent back? That's something that we're hearing all over the place in the market the last year. So, lots of sellers want to stay in their home after they close because maybe they haven't found a home or maybe they have found a home, but they can't move into it right away. So, when you hear the term rent back bandied about basically what that means is the seller would like to retain possession after closing for a fixed period of time. But how does that work? I mean, it sounds like a great idea, but how does that impact you with the buyer of that home? So when we do a rent back, we use what is called a possession by seller agreement and basically, it's just like a lease, you basically become a landlord for whatever it is that you and the seller of the home you're buying have determined you want to do. There are all sorts of ways to structure this. But yes, you do own the home after closing. Yes, you do want to make sure your homeowners insurance covers it. Every little detail of that process needs to be in writing and you need to understand that you basically have a tenant. So, if the washing machine breaks, it's on you, not them in most cases. So, there's lots to go into that. But remember, if you want to do something like that, that is outside of the details of the actual sales contract, we need to have all of that in writing to avoid any confusion and make sure everyone is covered. So remember, anytime we do anything in a real estate contract, listing or selling, we want to have everything in writing. If you have questions about any of those details, or you have an unusual situation, reach out to me I'd love to answer any of your questions.

We've all heard that old adage, cash is king many, many times. But what do you do if you're trying to buy a home in this market and you don't have a dump truck full of cash? Let's unpack that a little bit. Why is cash king anyway? Well, it's all about risk, right? The seller wants to make sure that what you offer them is what they're going to get at the end of the day, and it's guaranteed not going to have any unexpected loopholes throughout the transaction. There are some ways that we can make your noncash deal as competitive or close to a cash deal without you having to have piles and piles of cold hard cash. A few of those things that are going to help your noncash offer feel more like a cash offer to that seller are going to be waiving the inspection or making the inspection less of a question mark for them. Waiving the appraisal or making the appraisal less of a question mark for the seller. So that's coming up with a little bit of extra cash if the appraised price and the purchase price don't quite meet. And another is, and perhaps the most important make sure that you are well qualified with a local lender who might even talk to the listing agent to let them know how solid your offer and your qualifications are. If you have any more questions about writing the perfect offer in the seller's market, I'd love to talk to you. Give me a call, send me a message. Shoot me a DM and let's get started.

So you just saw that that house you offered on sold and it went for less than you offered, how the heck did that happen? Sometimes it's all about the money. And sometimes it's not having an agent that's going to do the research to make sure that your offer is best positioned to be appealing to that individual seller is going to make a huge difference in getting your offer accepted. Just like you may have an individual reason for buying a home, your family has grown, you're downsizing, you're moving to a new city, new job, things like that the seller is gonna have their own motivation as well. Knowing what those things are, are going to help you find that sweet spot that's going to dovetail your needs with theirs and get that winning offer. If you want to find out more ways to get your offer accepted in this market or get started on the process of buying a home give me a call send me a message I'd love to talk to you.

How do you even go about picking the right Realtor? And is it even important? In the market that we're in right now, or really any market at all, having a good agent on your side on your team really is a crucial component of either selling or buying that house. You really want an agent that's going to be willing and able to have those hard conversations. So that means telling you that your offer may not win and helping you craft the offer that will. That means telling you that your cats smell a little bit more than you maybe think they do. That is telling you that you might need to move that old sofa out and have your home staged. So while we all like to hear what we like to hear, sometimes we need somebody to give us those hard questions hit us with those hard truths to get us where we want to go. Obviously, I'm going to tell you, I am the agent that's going to give you the hard truths, ask the hard questions, and tell you what you may not always want to hear. So if you're ready to have some of those hard conversations that are going to help you get where you want to be in your real estate goals. Give me a call. I'd love to talk to you!