March 2016 | The First Time Home Buyer Guide 1) Oh What a Beautiful Home...or is it? 2) First Time Home Buying Kit

6) Current Listings 7) First Time Buyer Tips

Oh What a Beautiful Home... or is It? By Leslie Wells Sellers often have high expectations and rightfully so! The 2016 market brings with it higher prices and an increased pressure to sell and sell fast. Today’s Realtor is expected to be knowledgeable about every facet of home sales and marketing including the best ways to sell a home for the highest price, in the shortest amount of time and with the least inconvenience to the seller’s lifestyle. Statistically, more homebuyers buyers shop the internet than ever before. This means home photography must be top-notch and must immediately grab the buyer’s attention. While some agents still rely on their cell-phone camera, others are finding great value in using professional photography. Utilizing the skills of a trained photographer can pay off big when done correctly. They know how to capture the right lighting, the little details like trim-work or unique kitchen backsplash. A good photo allows the viewer to feel more connected with the home. It helps them to imagine what it would be like to live there. Part of marketing is the ability to transform the ordinary into the extraordinary. Sometimes, we are challenged to take homes that have been marginally maintained and make them look desirable to a wide audience. Yards in desperate need of grass can instantly have lush lawns via the magic of Photoshop but just how much is too much? Where do we draw the line? We’ve all seen the late night ads featuring that delicious looking hamburger. They pull us in and sure enough, the next day we have a craving. We place our order and open our wrapper with anticipation. Sadly we find a soggy bun, limp lettuce and a questionable patty. We feel deceived and sometimes angry! continued...

page

02

Oh What a Beautiful Home... or is It? continued

This is not the experience we want buyers to have when house shopping. An agent recently shared a story with me about a buyer that had been looking for homes in a particular area. Upon finding a home online they made an appointment, booked a flight and let’s just say the outcome was not as the agent had anticipated it would be. The buyer likened the experience to a people on dating sites using someone else’s picture! While it is our job to showcase our properties in the most positive light, we should never want to hear a buyer say, “The photos are better than the house.”As you begin thinking about listing your property for sale, reflect on the things that first drew you to your home. If the baseboards need a touch-up, go ahead and do it. If the bathroom fixture was popular in 1985, it might be time for an upgrade. If the yard could benefit from a few carefully placed flowers, start planting. The more you do to bring your house to life, the easier it will be for Realtors to sell your home. Your efforts will help yield the best outcome possible. Buyers will fall in love with your home in pictures AND in person!

First Time Home Buying Kit So you’re ready to buy your first home. It’s a big decision, but rest assured- you’ve made the right one. In today’s market you have the potential of finding that perfect property and still securing a low interest rate. If there’s ever a good time to buy, it’s now. The homebuying process can be a little overwhelming for anyone, but especially firsttime home buyers. Where do you start? How do you make the best decision possible? How do you avoid regrets- considering it’s usually a 30 year commitment? We’ve heard all these questions (and more) in our xx years of experience. You have come to the right place to find the information you need. So let’s get started!

#1- Find a great REALTOR This is your first step, and coincidentally it’s one of the most important ones. Don’t rush this part of the process. Selecting the right Agent is paramount to making a sound financial decision. And, chances are you will be entering into a long-term relationship with that person. So how do you vet your Agent? Let’s start with the basics. Not all real estate agents are Realtors. Realtors are members of the National Association of Realtors® (NAR), and adhere to a Code of Ethics. This Code requires that they follow the Golden Rule and make your interests his/her priority. A Realtor is accountable to NAR. So start off by picking a Realtor. Now, out of the hundreds of Realtors available, how do you shorten the list? A great way to find a quality agent is to get a referral from someone you know. Of course not everyone can be so fortunate, so let’s consider this:

93% of Buyers say knowledge of the purchase process is the MOST important quality in an Agent1 98% of Buyers viewed Real Estate Agents as a useful source of knowledge2

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

page

03

First Time Home Buying Kit continued

Because Realtors are relied upon as a source of knowledge, you want to see if your Agent has any designations. A designation means special training was obtained in a specific area ( i.e. military relocation or property management). You can find these pretty easily- usually they’re listed next to the Agent’s name. Of course, you probably won’t know the meaning of each designationso ask your Realtor to explain. Let’s recap. You’ve found a Realtor, not just a real estate agent, who is knowledgeable in the specific areas that concern you most. Is that really all it takes? What if you’ve selected an excellent Agent, but that person doesn’t return your calls/emails/texts?

2013 Home Buyer survey shows poor communication is the #1 complaint against Realtors3

This is actually a huge problem. Unfortunately, you might have an awesome Realtor but the communication is lacking. Before you decide on an Agent, test them. See how long it takes for that Agent to respond to a few inquiries- not just one. Most Realtors will return the first call quickly- not so much later down the road. A main contributing factor to this problem is the following:

55% of Realtors say real estate is NOT their primary source of income4

Do yourself a favor and ask your Realtor how many hours a week they dedicate to real estate. When it comes to part-time Agents they are routinely ill-educated. They also don’t have as much on the line. Full-time Agents seem to take every transaction more seriously, and demonstrate a better knowledge of the process.

#2- Locate a Lender Now that you have your Realtor selected, it’s time to shop around for financing. You’ll need either a Lender (Bank) or a Mortgage Broker. Independent Mortgage Brokers can be extremely reliable to work with. They want your referral once the transaction is over. With large Lenders (Banks) you run the risk of becoming just another file number. It might also be harder to get a timely response. Now, on to the actual financing. The key to securing good financing is shopping around. Compare loan terms such as discount points, loan type, down payment requirement, interest rate and APR. Pay close attention to the loan origination fee, which can vary and isn’t cheap. There really is a loan for everyone. Don’t have money to put down? Try the rural USDA product. Not interested in rural areas and have some cash? FHA only requires 3.5%. Past or present Military? VA financing offers some unique perks. Looking to avoid private mortgage insurance (PMI)? Go Conventional with 20% down. There are many variations of each of these products, so ask your Realtor for advice.

Ok- the hardest part is over. You’ve compared loan terms and found the right choice. That’s great. But- chances are your Lender overlooked educating you on “non-allowables”. These are your home inspection and appraisal fees, about $400 each. This fee comes out of pocket and in short order. While the appraisal fee can be paid at the closing table, generally the inspection is paid within 15 days of your effective contract. With all that behind you, the time has come for getting “pre approved”. Your Lender will then provide you with a Pre approval letter. Since this letter is submitted with your offer, it carries a big punch. In essence, this is your “Golden Ticket” to start your home search!

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

page

04

First Time Home Buying Kit continued

#3- Finding your Home Pretty self-explanatory and affectionately called the “fun part”. At this point your Realtor will start to email you listings based on the criteria you provide. Communication is key! If you want a fenced in backyard, fireplace,zebra striped home and a chicken coop outback - it’s time to let your Agent know. When you find a home you like, your Realtor will schedule a viewing for you. Many times the listing pictures don’t portray a property accurately, so be prepared to view many homes. Ask your Realtor lots of questions, too. A good Realtor enjoys educating Buyers. Ask about school districts, taxes, comparable home pricing in the area, HOA/ CDD fees, etc. This is when having a good Agent starts to pay off.

The typical home Buyer’s search spanned 10 weeks, viewing 10 homes5

#4- Placing Your Offer It’s a Spanish-villa style home straight out of a Better Homes and Gardens issue. It’s beautiful- and you want it. First things first- let your Realtor know this is the one. He/She will begin the process of drafting up an offer. There are many negotiation techniques. Hopefully your Realtor read the “Art of the Deal” or some similar text.

Your offer will consist of a purchase price and terms. Before you decide on an offer price, your Agent should check local home values. Is the home priced too high? This will be a factor when it’s time for the appraisal. Do you want the Seller to provide a home warranty? Do you need a longer inspection period? Etc. If your Realtor wasn’t a Superhero in Step #3, he/she will be now.

#5- Overseeing the Transaction 1- effective contract, 45- days to close, Unlimited- potential setbacks. Granted there are a lot of averages in that statement, but you get the point. Just because you have an effective contract, doesn’t mean you’ll end up with the home. In fact, it’s not uncommon to lose a transaction based on financing, inspections, appraisal, or contractual time periods. Your Agent will play a huge role in making sure your contract gets to the closing table.

paint? Hope you’re not using VA financing- because that won’t pass. Everything’s looking good so far, but what about the appraisal? Your Lender will schedule this around the same time as the inspection. If it shows the home is overpriced, you’ll have to renegotiate your contract. There are 3 ways this can be done: the Seller can agree to accept the appraised value or you can decide to pay the difference out of pocket. The last option is to walk away and get your money back. A diligent Realtor will be in constant communication with you during this time. He/She will navigate any setbacks that arise and ensure that everyone is on point. His/Her goal is to get your file to closing as smoothly as possible.

The Escrow deposit is the first item to contend with. This is due within 3 days, or less, of an effective contract. It’s usually $1000, but can be any amount. There isn’t any wiggle room on this one. Got too busy and couldn’t make the deposit on time? Your contract is voided. Next on the list is the inspection period. It’s usually up to 15 days from an effective contract. Inspection periods can vary just like the rest of the contract, but whatever time frame you selected- adhere to it. Lenders will require your home to pass inspections. Some loan types are more strict when it comes to passing and failing. Peeling

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

page

05

First Time Home Buying Kit continued

#6- The Closing

If you need to sell your home in the future, call your Agent. He/She will be able to provide you with a market analysis. Don’t use just any Agent. Overpriced homes sit on the market. Since your Realtor has been vetted, it’s best to continue that relationship into the next real estate transaction.

The typical homeowner sells his/her home every 5-7 years6

Many a buyer has approached the closing table with apprehension. Especially if they’ve experienced a lot of difficulty in getting their file to close. Chances are, if you’re seated at the table- you’re a few signatures away from getting the keys. The closing itself is pretty uneventful. You will likely be faced with a large stack of papers that require signatures and initials. These are mostly mortgage documents. Closings can range greatly in time, but usually last 1-2 hours. If you’re lucky enough to buy with cash, expect a quick closing. Maybe even a half hour.

1,2,5NAR 2014 Profile of Home Buyers and Sellersv 3CAR 2013 Home Buyer Survey 42010 Realtor® Member Profiles 6www.homeinsight.com/details.asp?url_id=7

#7- Is There More? Parting is such sweet sorrow. But is it time to part with your Agent? If he/she turned out to be a Superhero after all, you hope not. Remember, Realtors are a wealth of information. Do you need a plumbing referral? Do you know how to file for Homesteaded taxes? Give him/her a call and make your life easier. Besides, a handful of years down the road you might just need that Agent again.

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

941-776-5571

8268 US Hwy 301N, Parrish

It’s MarchyMadness! #1M in Closed tnuoC eetana ni Transactions slatne So many great properties to choose from!

Professionally painted inside and out, 4BR, 2 1/2BA, gated community home. Upgrades include: hardwood floors, granite counter tops, stainless steel appliances, and 42” cabinets. A4146445 $285,000

Since 2005 in 34219!

Stunning tropical views from every window in this fabulous updated Patio Home in Tanglewood, one of West Bradenton’s most unique and convenient addresses. A4146313 $220,000

Fabulous, spotless home in the estate section of homes in River Plantation that offers four bedrooms plus a Den/Office, great room, separate living and dining. A4145925 $299,000

Just over 1,600 square feet of living space, this home is perfect for low-maintenance living. 3/2/2 split floor plan has a spacious kitchen with plenty of storage. A4145523 $229,000

3 bedroom, 2 bath block home in desirable Villages of Thousand Oaks. Major updates to this home includes PGT double pane impact resistant windows and sliding glass doors to your screened lanai. A4145225 $199,900

This pristine 2 bedroom 2 bath condo shows like a model in this gated and maintenancefree community. This home features an oversized detached one-car garage leading to the homes courtyard. A4145053 $149,900

Quiet and private on 5.75 Shady acres custom amish built home. A park like setting for a unique 3850 sq ft -pool- home. A4144917 $625,000

Look no further! This 5.42Acre property is full of possibilities. This home/property was a former animal rescue sanctuary so this property has all you need. Bring your animals. A4144525 $325,000

Gorgeous 4BR/2.5BA pool home on a lakefront lot with serene views. This home offers solid hardwood flooring throughout, formal living room and a separate formal dining room. A4143689 $349,500

If you are looking for a non deed restricted home site on over an acre, then look no further.In addition to the 2 car attached garage there is also a 20x30 detached garage for all of your extra toys. A4139794 $274,900

Oversized owner’s suite, split floor plan, and a bonus room located off of the pool deck are just some of the features of this desirable “Harmony” model by Neal Communities. A4137522 $379,900

Lush, tropical gardens and fountains greet you as you drive into Village Gardens - a hidden gem only a few blocks east of US 41/ Tamiami Trail in the Ringling Museum area. A4146383 $105,000

Shadow Brook community, no age restrictions and pets are welcome! Updated 1,459 sq ft 2 BR/2 BA home with front door entry into spacious great room. A4145180 $109,000

Gated 55+ community in the heart of Bradenton. Enjoy serene lake views from your balcony in this 1BR/1.5BA partially furnished end unit on the 2nd floor. A4145400 $56,900

Desirable conversion unit, can be 1 or 2 bedrooms with 2 full baths. Dining room, all appliances, glassed in lanai. Great for investors or part time owners. A4141109 $74,900

New price! Great location near US 41 and I-275 to build your new home on 1.77 acres in a non-deed restricted neighborhood. Zoned A1. A4137361 $71,800

Visit LeslieWellsRealty.com/Rentals for variety of Annual Rentals in Manatee County

8268 US Hwy 301N, Parrish, FL 34219 • 941-776-5571 • www.LeslieWellsRealty.com

page

07 First Time Home Buyer Tips

Crippling college debt. A job market that is still struggling. An economy that is barely holding on. We’ve all heard the obstacles that young people are facing as they enter the workforce and begin considering purchasing a new home. But are things really as dire as they seem for this incredibly huge demographic? Chances are they are not. In 2016 people are bombarded with information like never before. As humans we tend to notice the bad information over the good, as the bad is subconsciously

considered a threat to our existence and must take precedence. And in the perpetual news cycle we live under of “what is wrong today and here is who to blame for it”, it is no wonder that so many first time home buyers feel like they have no chance. The truth is they don’t. In fact, there are more resources and information for first time home buyers than ever before!!

That being said, here are a few tips to consider when taking the plunge:

1st Time Home Buyer Stats 39% of First Time Home Buyers are Single nar.org

First Time Buyers Represent 32% of all Sales Median age of first-time buyers: 31 Median household income of first time buyers: $69,400 Financers usually want to see 3x’s the income as the mortgage payment. Millennials emerged as a dominant force in 2015, representing almost 2 million sales realtor.org

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

page

08

First Time Home Buyer Tips continued

Uncle Sam Want to Help? There is a slew of grant programs out there for first time home buyers. A few places we recommend checking out include:

W W W. M Y M A N AT E E . ORG

http://apps.floridahousing.org/StandAlone/FTHBWizard/FTHBWizardForm2. aspx

WWW.HUD.GOV

http://portal.hud.gov/hudportal/ HUD?src=/states/florida/homeownership/buyingprgms

APPS.FLORIDAHOUSING. ORG

https://www.mymanatee.org/home/ government/departments/neighborhood-services/community-development/housing/downpayment-existing-repairs.html Some of these programs can get your down payment down to as little as $1000.00, so it makes sense to at least explore the possibilities. Your agent may be willing to help walk you through at least some of the processes.

myfico.com, around 90% of top lenders rely on FICO scores to help make their decisions. Check out http:// www.myfico.com/ for more infomation. HOA Contracts Matter! Homeowners Associations provide certain services for their residences, but it always comes at a cost. And some first time home buyers may not be comfortable with the level of control that the HOA puts on your first property. Examining these contracts and talking with neighbors is critical to understand exactly what it is you are getting into. Nine times out of ten everything is fine. Don’t end up that 10% that “assumed”, because we know what that means. Hidden Expenses. Of course you figured out the mortgage, interest and property taxes. But did you figure that property taxes were set to go up 10% the next year? And will most likely keep going up? Who is going to mow the yard and handle pest control? Termites are not to be taken lightly, and an unsightly lawn will get you fined (do you even own a lawnmower?). Rake the leaves and clean the gutters? Time is valuable and you have to take into consideration you aren’t going to be able to do it all, all the time. A few other things to consider include HOA fees, moving expenses and of course, some new furniture to go with your new house. None of these are huge issues, but make sure you take them into consideration.

Know Your FICO Score. Sure, you always hear about the three main credit reporting agencies that most companies rely upon (Equifax, Experian and Transunion) but it is your FICO score that you need to pay a lot of attention to. According to

Coffee's for Closers. Understanding the closing costs (and whether the buyer or seller traditionally pays which part) will prepare you for when the moment comes. Generally speaking, closing costs contain the following:

- Inspection Fees; - Loan Fees and Points; - Escrow Agent Fees; - Title Insurance Premiums; - Government Recording Fees; - Real Estate Agent Commissions; - Transfer Taxes or Stamp Fees (a tax based on a percentage of the sale price) - Potentially a portion of that month’s property insurance and taxes. Your agent can handle most of these negotiations, but it pays to understand the process and topics as a whole regardless. Qualify Vs Afford. Just because the bank says you can afford that $785k palace on the lake does not mean it is in your best interest to go for it. Affordability takes into account all of the hidden expenses we were talking about along with all the surprises that life throws at you over the years. Use your head and not your emotions when making this decision, it’s not to be taken lightly. If you would like to know what you qualify for and would like a custom LWR Affordability Analysis, please fill out the form below and one of our agents will contact you personally to see what your options are.

TIP: Your debt payments will be subtracted from your income during financing.

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

page

09 Would you or your company like to be featured in our next issue? Opportunities to increase your audience, create free content and improve your marketing. Click for more details http://lesliewellsrealty.com/news/newsletter-writers/

Want monthly information on local real estate and building news, events and businesses, and useful information on all things real estate? Click for more details

http://lesliewellsrealty.com/work-with-us/newsletter-signup/

LeslieWellsRealty.com | 8268 US Hwy 301N, Parrish, Fl 34219 | 941-776-5571

Celebrating 10 Years as the #1 Office for Most Closed Transactions in 34219! Thank you for trusting us with all of your real estate needs. We’re proud to be a part of this community and uphold our commitment to excellence by continuing to provide you with the very best service and professionalism. We LOVE Parrish! Please stop by our office before February 14 to pick up a complimentary box of sampler chocolates and meet some of our top-rated Realtors. We’re looking forward to seeing you soon!

8268 US Hwy 301N, Parrish, FL 34219* H 941-776-5571 H www.LeslieWellsRealty.com *per MLS