Home Shopping with Shelly

Elizabeth's Last Minute Questions

It is really getting close to the end and my client is a bit nervous.  Today she asked:

What is the differnece between signing and closing?  In other words, "Shelly, when do I get the keys to my new house?"  When can I walk through the door and put down the first box?"  It needs to be this weekend.  I know Elizabeth.  But I cannot speed up the underwriters who have your stack of loan documents.  They review until they give that stamp of approval and then send it on to the escrow people who "work up the papers" readying them for your arrival.

Meanwhile, Elizabeth logically asks, "when do I have the utilities put into my name?"  And Shelly tells her: when we  get a time set up to sign and have a pretty good idea when you will have possession.  But Shelly encourages Elizabeth to contact the utility companies to give them a "heads up" on the switch so they don't turn anything off and can just move the service to her name.  Elizabeth also wants to know "do I need to bring any money to closing?"  Shelly tells her " I don't think so, and I don't want to pass the buck, but it is Nona and the escrow officer who can give you that information."  But Shelly says, "I don't think so."

I hate the waiting part, my clients hate the waiting part, but patience will pay off.  Keep reading and see what the real move in date turns out to be!

A report from Nona on Elizabeth's Closing

Well, it is really going to happen now.  Nona is Elizabeth's lender from Eagle Mortgage and she is working with the underwriters at USDA who have reviewed the documents and they are about ready to be sent to the title company.  And you know what that means?  When those "docs" get to Chicago Title, they will give Elizabeth and I a call and we will have an appointment to sign a stack of papers.....a big stack of papers.  I don't sign anything.  I just sit there and watch and fidget a bit.  Nona might come.  And we could all have lunch or something after if the schedule is right.  Or we could go out and get Elizabeth a Breve Mocha with whipped cream on top to celebrate although it may make her sail away.  We will see.  More pictures to come of the Closing and the key hand-off.  Yeah!

New First Time Buyers L & B: will they get this house?

Is the third offer really the charm?  L & B are waiting to find out.  The first house they offered on was a real fixer.  It needed everything from plumbing to windows.  It was looking good for awhile, but the price tag for repairs escalated along with their hopes and dreams for the home.  It ended up to be too much and we did the rescission.

The second offer was on a home they really loved.  It had bamboo floors and was in superior condition to the first property.  But the sellers just weren't ready to sell for the price we offered, so on to this house:

 

It's a good buy and others knew that too.  We just e-mailed an "escalation clause" to the listing agent in hopes of making it happen.  You can see Sunwood Lake from this house!  Check back for the results!

First Time Home Buyer Class in April 18th at Greene Realty

Sign up today at WSHFC Home Buyer Education

Through local partnerships, the Commission helps homebuyers learn how to purchase and maintain a home. Commission-sponsored homebuyer education seminars are meant to be the first step in purchasing a home.

Commission-sponsored seminars:

• Are free and open to the public, include information about the Commission's low-interest rate House Key State Bond first mortgage program, down payment assistance, and other loan programs; and
• Are accepted by all affordable housing loan programs as meeting or exceeding educational requirements.

All instructors have attended training and have agreed to standards which assure you that seminars:

• Are at least five hours in length, covering all major aspects of the home buying process
• Are presented in an open, unbiased format
• Use approved training materials and handouts
• Are offered by professionals who have attended our House Key and Homebuyer Education Instructor training
• No direct marketing or sales presentations may be given either by the instructor or any guest speakers

Reservations are required for all seminars.

If you will be using the low-interest rate State Bond House Key program to purchase your home, you must complete the seminar before your loan officer can lock in your interest rate.

DISCLAIMER  The sponsorship by the Commission of a homebuyer education seminar does not endorse a person, business practice, product or service other than those of the Commission.

Many people find they gain enough information at the seminar to successfully locate and finance a home of their own.  Others may find they need additional assistance.  Contact us with questions at [email protected].

Presented by Shelly Field, Greene Realty Group & Nona Woodard, Eagle Home Mortgage

Moving Past the Inspection & Repairs

It is a good day for Elizabeth.  The repair work on the window trim of her potential new home should be complete.  As usual, the problem got bigger when the contractor got into the area affected by water.  He had to "auger" out some blackened, moisture damaged areas and replace some material.  Elizabeth talked with the contractor about the plan for restoring the window area.  The conversation put her mind at ease and the inspection to rest.  The furnace has been serviced, the trim repaired, and the lawn should be mowed. 

  The culprit is that window to the left.  A little "wet" trim can cause some havoc.  But, yes Elizabeth, it can and was fixed!

What are we waiting on: the underwriters working on her loan package to move us to "closing" and Elizabeth into her home!  If it happens by April 15th, it will make her tax rebate a smoother process, too.

Keep reading as her big day approaches.  For now she is packing, and sorting, and packing and looking for boxes!

Here is the kitchen "before Elizabeth".  Keep watching for what she does with it!  What about that wallpaper border?  Will it stay, or will it go?  Will she keep the BRASS light fixtures?  MMMMM....

Inspection is History

Moving on towards being the owner of her first home, Elizabeth is coming up with an average of one question a day for me!  And I love hearing from her, so it is a win-win situation.  The home inspection went very well.  Pete Sutch did a thorough inspection of the major aspects of the house and we had a short list of things needing attention.  Elizabeth's son was there and he was a real trooper, volunteering his services to do some of the needed maintenance issues like cleaning the roof.  We asked the seller to do two things:  replace some trim that had water related damage and have the furnace serviced.  The furnace is already serviced and ready to go.  The trim boards are in process of being replaced.  Elizabeth went by the house to see the damage and give her okay to the intended repair.

The appraisal is the next step.  And today we got news from Nona, her lender, that the appraisal came in significantly higher than the sale price!  Another good news moment for Elizabeth as that gives her equity before she even moves in.

I made a copy of the title for her and she picked it up at our office along with some boxes I collected for her!  She is in the packing mode and shopping for items needed to make her dream home come together after she moves in.  She made a good decision to buy some almost new appliances.  She and her son did research and realized the price was too good to pass up.  Again, Elizabeth is being very wise in the decisions she is making as a new homeowner!

Now we wait for the lender to work with USDA to get the loan completed and we will move on to closing probably sooner than expected!  There are always little glitches that can arise.  But we will deal with them when and if they do!

I will get back to you with any glitches or with any more good news.

Elizabeth is Waiting for the Sellers Inspection Response

Another step towards home ownership is over.   The home inspection was complete by noon on Thursday.  On Friday I met Elizabeth at my office to finalize our "response" notice letting the seller know there were a couple of things we would like them to fix.  There was some water damage to trim under one window that needs attention.  We also asked to have the furnace serviced because there were no "service tags" posted on the unit.   Not hard requests, but we haven't heard back yet.  My guess from my real estate experience is they are getting an estimate on repairs for the window area.  They have 3 days to respond so the wait can'be too bad unless you are Elizabeth anxious to move forward with the purchase.

What is she doing in the meantime?  Hmmmmm, I took her some paint sample booklets from Sherwin Williams.  She is purchasing an almost new stainless steel refrigerator and gas range, and she is starting to sort out and pack for her move.

She is as cool as a cucumber.  Most of the time.  I will let you know when we hear about the inspection and what her next steps will be.

She discovered some good news that her 8000,00 tax rebate will be issued this year.  instead of next:

WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

1st Time Home Buyer: Elizabeth's Next Step

It is a new day and the process that started just Saturday (but really months & months before) continues for Elizabeth.  Last night I e-mailed her a copy of the purchase contract we put together yesterday with both the buyer and the seller's signatures.  That is what we, in the real estate biz call a signed around contract.  It is binding in other words.  But never fear Elizabeth we have addendums we call contingencies that give us options.  We used the financing contingency, the inspection contingency and the title contingency.  The purchase is waiting for those to be satisfied.

Today we will schedule a home inspection for Saturday.  That means we have to find a willing home inspector (one who works on Saturday) and get a time set up that works for everyone.  In this case, the house is vacant so the inspection is easier for everyone.

Vacant homes make access to all parts of the home much easier and more thorough for the inspector.  There are no shelves in front of the electric box for instance.  There is no furniture up against outlets etc.

So keep reading, we will get back to you about how these contingencies play out and hopefully drop off so Elizabeth can move into that lovely new space!

More pictures to come on Sunday or so.  What do you think so far?

Breaking NEWS: Elizabeth Changes Her Mind

Well, you know what they say about a lady's prerogative?  Elizabeth pulled out the stops and decided the house featured in the previous post was worth putting an offer on.  Now, we knew there was already an offer on the table making it dicey at best.  She was firmly against getting into a bidding war this being a "buyers' market" and all.  We wrote a clean offer after Elizabeth met with Nona Woodard to discuss her options for loans, down payments, monthly payments etc.  She felt very confident when we met at 1:30 this afternoon to sign the paperwork.  I faxed and e-mailed our offer to the listing agent.  Elizabeth told me I had 3 minutes (time for a commercial) like the agents do on HGTV.  After the commercial the agent just lets the client know and all is very neat and clean.  Well, no promises in Reality Real Estate.  She walked out of the office with a great deal of hope and a bunch of apprehension for the waiting period.

Nothing makes a buyer more anxious than making the decision to offer and then sit back and wait for the phone to ring.  It is the same for me.  I am so excited for Elizabeth because I know she loves this house.  Well, I went to the grocery store and headed south to my house.  Before I even started supper, the phone rang.  And guess what:  They accepted our offer!  She got the house.... that is one call I love to make.  Nona was with her when I called and there was a big Yahoo in the background.  Very exciting times for all involved.

In our next post, you will work through the next step of this process with Buyer and Realtor as we schedule and attend the HOME INSPECTION!  The seller has already let us know that we got such a good deal that he doesn't want to be "nickled and dimed" on the inspection.  That remains to be seen until the inspection report is in hand and Elizabeth reviews it with me.  At that point we decide what to ask for from the seller (if anything).

Stay with us as we follow this great lady on her journey toward home ownership!

Let the "Fun" Begin

Setting:  Olympia Washington area.  Saturday 2 pm

Weather:  Sunny, but cool

Place of Origin:  Greene Realty Group office parking lot

Characters:  Shelly the Realtor and Elizabeth the buyer

Background:  Elizabeth attended Nona Woodard & Shelly Field's first home buyers' seminar in January 2009!   She was a strong contributor to the class and showed an advanced knowledge & interest in the home buying process.  Our next class is April 18th.  Contact Shelly or Nona to sign up.

[email protected]

[email protected]

Adventure Begins

After circling the area in shear anticipation, Elizabeth gets a call from Shelly before 2 pm (the designated meet time) telling her that "we can leave early if she likes".  Of course, the buyer is only blocks away just waiting for the Realtor call.  (Realtor could have called earlier had she known by the way.) 

Buyer zips into the parking lot and parks.  She heads to the Realtor's car with brown portfolio in hand and a smile on her face.  She is ready, but she is nervous.  We greet one another and go over the Realtor's clipboard of house listings  (in the biz we call it "agent detail reports").  Our itinerary is set.  Realtor grabs the trusty GPS and starts feeding it the first address in the Delphi Country Club.  The "voice of the GPS lady" interrupts the visiting with instructions on where to turn.  Realtor is heavy into technology and also has the bluetooth speaker attached to the visor.  Realtor likes the speaker but hasn't yet figured out how to change the lovely ladies speech to English.  So, between the GPS gal and the speaker lady saying "la connectshion" or something like that, it got a little annoying.  But buyer and Realtor are in good humor so it becomes a joke rather than an irritation.  After all, Shelly spent all the money on the marvelous gadgetry and it must be used , right?

The duo gets to the very first house and Shelly thinks Elizabeth might hyperventilate.  Realtor didn't think to bring a brown paper lunch sack for such occurences!  However, calmness prevailed as they make their way down the walk to the front door of this lovely home.  Here Shelly uses another piece of technology, the "smart phone".  It is a Treo 755 that does everything the other stuff doesn't do; in this case it uses the infared to get the girls into the house via a keybox.  Shelly punches in the secret code that is updated nightly via the wireless world and the right noises beep from the box and their is the key and they are inside! 

Oh dear!  The buyer likes the first house.  She is in disbelief that it is really HER in a house that could someday be her own!  What an incredible feeling it was for both.  Shelly can get just as emotional along with the buyer.  We take a look around.  Realtor is pointing out the kitchen features (as if she couldn't tell herself) etc, etc.  All the while buyer is almost swooning with delight.  The house felt great.  We started "cooling down" however after a visit to the utility room.  In this home that happens to be the garage, not insulated by the way.  The bedrooms were a bit of a disappointment along with the small master bath.  Elizabeth has been hoping for a five piece bath including the soaking tub.  We walked the outside perimeter noting likes and dislikes.  It was a great first house to see.

House number two was a few miles away still in west Olympia.  It is a two story newer home in a nice area on a small lot.  It was an easy house to eliminate with few areas of interest.

Okay, then; off to house number three also in west Olympia.  Now remember, that part of Shelly's job is to set up appointments with people who live in the home.  This next house had tenants and they require 24 hours notice.  Realtor called 48 hours ahead and left a message with the agent in charge.  Not hearing back, Realtor called on Saturday morning to check availabitlity to show.  Agent assured Realtor that appointment was set with tenant.  Elizabeth and I arrive at home and are a bit sheepish immediately.  Deferred maintenance is staring us in the face, but not to be deterred, we walk towards the door.   The keybox opens, I take out the key and Elizabeth and I are commenting on the two overlowing bowls of cigarette butts on one side of the porch and the shovel by the door.  Do we need the shovel as a weapon for protection?  I gingerly open the door and peek in.  Loud barking greets me and I see several small dogs heading our way: yip, yip, yip.............YIKES.  We moved quickly in reverse in the "startled" mode.  Behind the four little pomeranian watch dogs came a women wrapped in a blanket with sleep on her face.  I explained why I was walking into her house and she was dazed.  She hadn't listened to the voice mail.  Perhaps the agent had left a message.  In the meantime, the dogs had burst out the door and were heading into the culdesac with woman in blanket chasing them to no avail.  We apologized several times and headed for the car.  She insisted we come in; we said not today and made our way to the next house in a hurry laughing as we left.

Oh my.  So much for the house in Goldcrest.  What I saw in my brief peek around the corner was kind of frightening even without the dogs and occupant.  We were off towards Lacey and more houses in the Classic Heights area.

The last house was a charmer.  Elizabeth fell in love with the light, bright interior, the large master with soaking tub and shower, the large kitchen, big utility and the split bedroom plan.  Buyer really likes this house.  We decide to bring in the family to take a look and schedule a second visit on Sunday morning.  In the meantime, Realtor calls the listing agent to find out there is an offer in process on the home.  Now what?  This is awkward because this is the first day out looking, and do we want to get into a bidding war?  The family likes the house but notices some things not apparent the day before: mainly the neighbor's dog.  It was out in force on Sunday barking and carrying on.  This is not a small dog either.  Other questions were about the vacant property across the street behind the house:  could it be industrial someday meaning more traffic and noise? 

Other issues included:

Buyer hadn't yet decided on loan type or been prequalified although appt was set for Tuesday.

Buyer is cautious and logical and is not in a hurry although she really likes this house

Solutions:

An appt is set up for Sunday with lender to discuss getting the USDA loan on this home at this address.

Buyer does get preapproved with no problem

However:

Buyer calls Realtor and makes her decision not to make an offer yet.  She is going to look more and give herself time to see more homes and not fall to the pressure another offer can pose. 

Will the offer on the table go to closing?  We don't know yet.  We will keep  you posted.

Here is the house and the potential buyer:

Elizabeth with her portfolio on the porch of her potential first home!   Look for the next picture after our next home tour.