Kevin Smith Real Estate Podcast

Today’s special guest has some important information to share about his approach to helping clients through the home buying process. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Today I’m joined by a new special guest, Frank Blakeley with Bay Home Equity Loans, to talk about the home buying process.  First of all, Frank says that when he works with clients, he likes to treat their transactions as if they were his own.  So, the first step Frank takes with his clients is talking about their financing goals. Frank asks clients about how much they have for a down payment, what they can afford for a monthly budget, what type of home they are looking for, and more.  This conversation will determine whether the client’s goals are possible and, if so, what needs to happen for those goals to be met.  The next step is filling out an application, which can be done over the phone or through email. Frank has found that 70% of the people his team works with are able to become pre-qualified after filling out this application, and pre-qualification is half the battle. “ With proof of pre-approval in hand, buyers are able to make much stronger offers. ”Of course, pre-approval is what truly verifies a buyer’s ability to make a home purchase. This is why Kevin and his team use their underwriter to help buyers obtain a fully underwritten pre-approval. With proof of pre-approval in hand, buyers are able to make much stronger offers.  Sellers benefit from this pre-approval as well. It affords them peace of mind in knowing that their transaction will run smoothly and on time.  If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Emilie McVay, an interior designer from Luminous Staging, is here to discuss the many benefits of staging your home before it hits the market. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Today, Emilie McVay from Luminous Staging is here to discuss some of the benefits of using a professional designer to stage your home before you put it on the market. Emilie has been an interior designer for residential properties for 23 years, and she has been staging for one year. Emilie has helped some of my new clients who have a house coming up on the market, and she has a few tips to share with you. First of all, millennials are the biggest population looking for homes. Since millennials are very tech savvy, they are interested in smart home technology, like Alexa or Google Home. They want systems they can operate through their iPhone while they’re away so that they can control things like lighting, security, and appliances. Adding some smart home systems will add value to your home, as will doing some home improvement projects before your home hits the market. As a seller, you do typically have to pay for the staging consultation. However, if you’re not sure about getting your home staged and your Realtor really thinks it’s a good idea, or if you don’t have enough money out of pocket to pay for staging up front, Emilie does offer getting paid out of escrow. That way, you also get to see how staging adds value to your home and helps your home sell quicker. Staging can increase the value of your home by 15% to 30% on average. Emilie also says that a staged home sells 87% faster than a non-staged home. Remember, 97% of people look at properties online before they walk into a home. Staging helps your professional photos catch a buyer’s eye when they are looking at homes online. “ Staged homes sell 87% faster than non-staged homes. ” Properly staging your home is more than having the right furniture; it’s about creating the right space flow. When someone walks into the home, it’s important that they feel like the flow of the home and the space planning matches their lifestyle. Staging also makes your home look bigger, which will be very appealing. Emilie also pays special attention to the design of your home. If your home was built in 1935, for example, she’s not going to use contemporary, modern furniture. Your home should have a cohesive look inside and outside so that when a buyer walks in, they’ll say, “Wow, this home looks well put-together.” Emilie can stage a home in under a week. However, if your home needs a few repairs or decluttering, the entire process takes closer to four or five weeks. I would like to thank Emilie for talking with us today. If you have any questions for her, you can give her a call at (949) 235-0466 or email her at [email protected]. As always, if you have any real estate questions, just give me a call or send me an email. I would be happy to help you!

If you’ve been putting off your home sale, what are you waiting for? The time to list is right now, and there are five reasons why. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation I know many people think they should wait until spring to list their home, but I’ve got five reasons today as to why you should list right now. Prices have gone up.  Depending on your location, prices have risen between 3.5% and 5.5% percent. Here in Southern California, they’ve increased significantly. Inventory is low. In the last several years we’ve had 6,000 homes on the market in Orange County, but right now we have just around 3,900. The market is in desperate need of more listings.“ The market is in desperate need of more listings. ”Interest rates are at historic lows. We’re still seeing interest rates ranging around 4%. This means buyers have increased buying power and will be willing to bid for your property against other buyers. Consumer confidence is high. The economy right now is doing phenomenally and unemployment is currently below 4%. With more money in their pockets due to tax reform, many people are ready to make their next home purchase.Millennials are entering the market. According to a recent study by Bank of America, 64% of millennials have saved $15,000 toward a home and 50% have saved over $100,000. If you price your home correctly, now is a great opportunity to take advantage of this demographic’s entrance into the market. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

I’d like to offer my congratulations to millennials out there. Here’s why. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation I’d like to start today by congratulating all the millennials out there. It seems like you’re finally growing up. I recently read a survey that said that 60% of millennials are saving money nowadays, which is 50% more than there were in 2015. 47% of those people have at least $15,000 saved, which is fantastic. Our typical stereotype of the “lazy millennial” is changing. They’re saving at a nearly identical rate to Generation X, while still trailing baby boomers (75%). With the economy changing, new jobs and a low unemployment rate has resulted in people being more positive in general. Some stocks have doubled in price and we’ve seen some incredible highs on the Dow as well. If you have enough saved to buy a home, I’d love to help out. To all the millennials out there: keep doing what you’re doing and keep saving. If you have enough saved to buy a home, I’d love to help you out. Even if you don’t have the typical 6% to 10% for a down payment, there are programs out there to get you into a home for less. If you have any questions for me in the meantime or if there is anything I can help you with, give me a call or send me an email. I would love to hear from you.

By joining VAREP, you can help veterans get into homes and give back to your community. Best of all, you can have fun while you’re doing it. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation How can VAREP help your career and give you the opportunity to give back to your community? VAREP is a 501(c)(3) nonprofit dedicated to educating veterans about their benefits. Our mission is also to educate other mortgage professionals—specifically Realtors—about why they should help veterans get into homes. We also do a lot of good for the veteran community as a whole. To date, we’ve given away 26 mortgage-free homes and over $500 million to help veterans with home renovations. Last year, we were able to accomplish a great deal through our VAREP Cares program by helping veterans with home renovations and raising money for them, and that’s one of the privileges of our membership. In order to give back, we do a lot of fundraising, and many of our sponsors throughout the industry have generously donated to this program. We also attend conventions around the country with other VAREP chapters and speak to our representatives and senators in Washington D.C. about how they can help veterans. We invite you to join VAREP. Now that you know what VAREP is all about, we invite you to join us, which you can do by clicking here. As a part of VAREP, you’ll have the opportunity to meet and network with other veterans and have a lot of fun while you’re at it. You should also know that we’re BRE-certified instructors who teach agents about VA loans, so you can earn eight continuing education credits toward your license. You don’t have to be a veteran to join—all you need is a willingness to give back to your community. If you have any questions about VAREP or you’re interested in joining us, don’t hesitate to reach out to us. We’d be happy to speak with you. Click the image to see a list of VAREP events and information!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } You are invited to our VAREP appreciation mixer! Join us on December 19 at the Auld Dubliner. To RSVP To The Event Click HereTo Learn More About VAREP Click Here I’m here with Barry Krevoy from the Veterans Association of Real Estate Professionals, also known as VAREP. Our Orange County chapter is proud to present our appreciation mixer on December 19 from 4:30 p.m. to 6:30 p.m. Join us at the Auld Dubliner at 2497 Park Avenue in The District. If you were involved in VAREP this year, we want to see you there. Bring a friend, bring your family members, and bring any veterans who are interested in the organization. Members, nonmembers, and sponsors are all welcome. Members, nonmembers, sponsors, and, of course, veterans are all welcome. RSVP to Delores White here. We’ll have a lot of fun and good food, so come and hang out with us. As always, if you have any questions, just give us a call or send us an email. We would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } I have eight tips to share with you that will help your home show better if you’re listing it now in the wintertime. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation If you’re listing your home in wintertime, there are certain things you need to think about that you wouldn’t have to think about during the other seasons. Some of these things can vary depending on which coast you live on, but they’re important to keep in mind nonetheless. Here are eight tips to follow to make sure you list your house appropriately for the wintertime and your house sells for top dollar: 1. Take listing photos of the home during springtime or use photos that were taken during the springtime to post online. This way, the trees along the exterior of your home have leaves on them and don’t look barren. 2. Don’t over-decorate for the holidays. This way, the inside of your home won’t look so cluttered. Sellers want to see your home—not the holidays. 3. Maintain good curb appeal. In the winter, your lawn will need a different kind of maintenance, and your home’s exterior might need more artificial lighting to brighten its appearance. I have eight tips to share with you that will help your home show better if you’re listing it now in the wintertime. 4. Remember your safety manners. On the east coast, you’ll have to deal with ice, snow, and sleet, so it’s a good idea to sprinkle salt along your driveway and entryway to keep people from slipping. On the West Coast, you’ll typically only need to deal with rain, so keep a mat by the door or an area where people can take off their shoes. 5. Declutter the area around the door. On the east coast, you might have a lot of snowshoes, scarves, hats, and heavy coats lying around, so set up a hanger or a coat rack so people have a place to hang their own coats when they walk in. 6. Make sure your house is functional. Make sure you turn on the heater before you list the property. If there are any mechanical issues with your heater, get them fixed. There’s nothing worse than walking into a house that’s freezing instead of warm and cozy. 7. Make sure you have plenty of light. Since the sun sets earlier this time of year, consider setting timers on your outside lights to activate late in the afternoon or evening so buyers have a well-lit home to visit after they get off work. 8. Heed the advice your agent gives you. If you use their expertise and follow their direction, your home will sell for a higher price and you’ll be much better off in general. If you have any more questions about preparing your house to be listed in winter or you’re curious about our market, don’t hesitate to reach out to me. I’d be happy to help you.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Before you begin your home search, it’s critical that you take some steps to prepare. Today, I’ve got six things for you to think about. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Today, I’d like to share a list of six things to think about when preparing to purchase a home.  1. Check your credit. If you don’t already know your credit score, you definitely want to pull your report. Two options I recommend are www.annualcreditreport.com and Credit Karma. If you have some time before you buy, focus some energy on improving your score. No matter where your score is now, a better score will almost always help you get a better rate. 2. Don’t open up new accounts. Your credit history is based on how long you’ve had your credit, how often you pay, and whether you pay on time. The last thing you want to do before buying a home is open up a new line of credit. 3. Using gifted money toward your home purchase. Around the holidays, consider asking for financial gifts instead of material items. A little extra cash could go toward your down payment, and help you transition more smoothly into your new home. Knowing what you can actually afford before you start looking will save you a lot of trouble. 4. Keep an eye on interest rates. Even a slight increase in interest rates will decrease your buying power, so being aware of current rates before you purchase a home will give you an advantage. 5. Get a lender. If you don’t already have a lender, I would be happy to give you some referrals. 6. Get pre-approved. Knowing what you can actually afford before you start looking will save you a lot of trouble. Once you provide some documents to your lender, they will be able to get you pre-approved so that you can start your home search. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } Should you invest in an Airbnb property or would a long-term rental be better for your real estate goals? I’ll go over a few pros and cons for you to consider today. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation If you haven’t used Airbnb yet, it’s a great experience. I’ve booked a 5-bedroom, 5-bathroom house in Rome for 10 of us to go on a Mediterranean cruise. We got the kitchen and a great location to see the city. You can rent an Airbnb for $200 to $500 a day, which has many investors purchasing short-term rental properties. However, what are the pros and cons of investing in an Airbnb property? How do these properties compare to long-term rentals? Investing in an Airbnb property is a great way to bring in a larger cash flow each month, but there are a few things you need to be cautious of. First of all, pay attention to the location of the property. Is the property in a homeowners association or association complex? Some HOAs have rules in place that do not allow a rental for less than 30 days, so make sure you will be able to have a short-term rental before you purchase a property. You should also check the zoning. Certain cities do not allow any type of short-term rentals except in certain zoning areas so that the city can establish a tax base and collect taxes for short-term rentals. When you invest in a long-term rental, you typically buy a single-family home that will bring in $1,500 month. With Airbnb, you can bring in $200 to $500 a day, which could net you $9,000 a month. With an Airbnb property, you could net as much as $9,000 a month. You should also pay attention to commission. On a long-term rental, you’ll pay about 10% per month on the income you get from the property to a property management company. The property management company will take care of maintenance, cleaning, and day-to-day issues. Airbnb commissions are more complex. People can check in on a daily or weekly basis, and the commission rate is closer to 50%. Make sure you get an agreement with a property management company that is fair for both sides. Finally, what happens after you get tired of running an Airbnb? What is your exit strategy? That home needs to be in a good, rentable area so that you can transition the property into a long-term rental. Your other option is to sell the property, so make sure you purchase in an area where you will be able to get all of the money you invested in the property back when it comes time to sell again. If you have any additional questions about short-term or long-term property investments, just give me a call or send me an email. I would be happy to help you!

.embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; height: auto; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; } With a renovation loan, you can add renovation projects on a home you buy to the actual mortgage. Watch this video to learn more about them. Buying a home? Click here to perform a full home searchSelling a home? Click here for a FREE Home Price Evaluation Today I’m joined by a special guest: Barry Krevoy, who is our LoanDepot representative. We had a situation that came up this last weekend. My buyers are looking for that perfect home that’s turnkey and ready to go. When I talked to Barry about this, he found that they’re well-qualified to get the loan, but he was suggesting that maybe we look into a renovation loan. So today, Barry will be talking about renovation loans—the different types, and how they all work. A renovation loan is just like any other loan, except for the fact that we’ll be adding renovation projects on the home to your actual mortgage. There are two different types: a full renovation loan, which you can do a conventional FHA loan on, and a VA renovation loan, which is a streamline loan. There are also FHA and conventional streamlines. Streamlines are non-structural, so you can put in new countertops, new carpet, new appliances, and so on. No permits are required for this, since it’s not for construction projects. It really opens up a lot of options, and takes a house that needed love and turns it into the house of your dreams. Then there are full-rental loans, where you can add bedrooms, floors, and other larger projects. We have a lot of people that are getting priced out because everybody wants a single-family residence with 2,000 square feet. There might be properties out there where you can add a bedroom, bathroom, or maybe a second story. It really opens up a lot of options, and takes a house that needed love and turns it into the house of your dreams. In flipping shows like the ones you see on HGTV, they don’t buy a home and flip it using money they have laying around; they use renovation loans to finance it. As far as benefits go for regular buyers, the interest rates will be a little bit higher because you’re packing more into the loan. On a full renovation loan, you can put six months' worth of payments into the loans, so you don’t even have to make a payment on the house for six months. Another great fact is that you can use the renovation loan to flip a house, and you only have to put 15% down. We all know on an investment property, you usually have to put 25% down, so there really are a lot of benefits. If you’re interested in a renovation loan, I suggest you give me or Kevin a call, text, or email. Let’s see whether or not it works for you.