Spring has sprung, the flowers are in bloom, and the curbs are becoming more and more appealing by the day. Must mean it’s house hunting season. So, if you’re a first-time buyer, you’re going to want all the house hunting tips available to help snag your first home while fighting off all the other first-time buyers.

Don’t worry, with the right advice in hand, buying in a competitive market can be easier than you think. Conquer your homeownership goals with the following house hunting tips for first-time home buyers, curated by yours truly.

Tip #1: The right real estate agent can make all the difference.

When you’re ready to buy a house, it’s important to have the right people on your side. Friends and family members are a good start, and the right lender can help make sure you’re ready financially. But a real estate agent? A good agent makes all the difference. 

Consider this: A lot of people think of real estate agents as glorified tour guides. They unlock doors, they show you around, they answer questions, and that’s it…right? Wrong. 

A solid real estate agent (preferably a Realtor®—otherwise known as a certified agent who’s part of the National Association of Realtors) is half friend, half negotiator. They’re going to have your back through the home buying process, and they’ll spend much of their time scouring listings to find homes that fit your wants and needs. In fact, they’ll be able to search through listings you can’t even find on the most popular listing sites. Most importantly, they’re the ones who read through the contracts to make sure you’re getting a fair shake. 

Tip #2: Don’t get (too) attached. 

House hunting can feel like a roller coaster of emotion, and you’re probably going to fall in love with a lot of homes. Our next house hunting tip? Don’t get too attached to what you see online or in person. Sure, the listing pictures may knock your socks off, but remember that those homes are often professionally staged. 

As for in-person viewings? Remember that any home you put an offer on should be professionally inspected anyway, because you never know what that fresh coat of paint is hiding and you may not have immediate access to things like attics and crawl spaces. Looks can be deceiving either way, so don’t forget that most of the homes you’re seeing are staged to sell—not staged for the realities of life. 

Most of the homes you’re seeing are staged to sell—not staged for the realities of life. 

When starting out on this journey, the best thing you can do is come to terms with the notion that the first homes you look at probably won’t be the ones you buy. Use this as an opportunity to take notes on what you like and what you dislike, and compare other homes to that list. 

Tip #3: Waving the red flags.

When you do start attending open houses and scheduling private walkthroughs, there are are several factors to consider that might be so obvious. To sum up our next house hunting tip, here’s a short list of things to keep an eye (or a nose) out for:

• Bad smells: These can be indicative of backed-up sewage lines, hidden mold, garbage, or pests. When it comes to funky odors, trust your gut. 
• Humidity: If you can, get a humidity reading in basements and crawls, and keep an eye out for signs of moisture. Brown or yellow spots in the ceiling and bubbled wallpaper or drywall could indicate leaks in hidden areas.
• Craftsmanship: Look closely at corners, edges, and lines to make sure everything lines up. Look for bows, cracks, jams, and scratches, as those could be signs of poor worksmanship. And don’t forget to make sure doors and drawers close correctly. 
• Surroundings: People love to look at the home, but they often forget about the surroundings. Is the home located on a busy street? Near a church bell? Do the neighbors have dogs? We’d hate for first-time buyers to have buyer’s remorse because they forgot about the sights and sounds around the home.
• Perspective: Online listings have a habit of making spaces seem larger than they actually are. Rooms that once looked huge online turn out to be little more than the size of a coat closet. Perspective is everything, so don’t let that wide-angle lens fool you. 

Tip #4: Do your homework.

Your agent is going to take you to see plenty of homes, but you should also take the initiative to see some homes on your own time. If not by attending open houses by yourself (or with your partner), then at least by (safely) staking things out during off-hours. What’s the traffic look like at 2:00 PM on a weekday? What’s it like at 10:00 PM on a Saturday night?

These kinds of impromptu visits to homes or neighborhoods you like on the surface can reveal far more than a typical house tour, and could help narrow your selection or eliminate some options entirely. Ultimately, the more you see, the better off you’ll be. 

Impromptu visits to homes or neighborhoods you like on the surface can reveal far more than a typical house tour, and could help narrow your selection or eliminate some options entirely.

Tip #5: Get pre-approved.

If, by chance, you do stumble upon your dream home at any point in the house hunting process, you’re going to want to put in an offer. 

These days, offers backed by a lender’s pre-approval carry more weight than your standard pre-qualification (which is nothing more than a statement saying what you might be able to afford). A pre-approval is a bonafide, verified review of your qualifications—your income and your credit score, for example. Plus, it tells sellers that you’re serious about moving forward. 

Tip #6: Patience, patience, patience.

They say it’s a virtue, but it’s also a totally necessary house hunting tip for first-time buyers. Impulsivity leads to mistakes, and mistakes lead to regrets. The process can be unpredictable and time-consuming, but your agent and your lender should help provide a smooth, seamless process that gets you to the closing table in no time and with no regrets.

And now that you know how to house hunt, you’re ready to start the next chapter of your life!

The post House Hunting Tips for First-Time Home Buyers appeared first on Cardinal Financial.

What makes a good real estate agent for home buyers?

Your real estate agent is one of the most important players in the purchase process when it comes to sticking to your budget and narrowing down your home search. It’s a big job, so make sure it’s a good fit before you commit. As a buyer, your agent should have:

1. In-depth knowledge of the local area
2. A track record of closing quickly, for less than the asking price
3. Clear communication expectations
4. Strong negotiation skills

1. In-depth knowledge of the local area

Much of the housing market varies by location, even down to the street you might be living on. If your real estate agent doesn’t know the area well, they might not be able to negotiate your price based on comparable homes in the same market.

2. Track record of closing quickly, for less than the asking price

To avoid going over your budget, you’ll want a real estate agent who has a proven track record of negotiating a lower final price than what the seller initially asked for. Ideally, they also close quickly. After all, saving money is less satisfying when it keeps you from moving into your new home sooner.

3. Clear communication expectations

We think this is a good rule for any relationship—but we’re not here to talk about your love life. From the start, let your real estate agent know how you’d prefer to be contacted, how often, and when you’re typically available. If there’s a disconnect between what you’re comfortable with and how they operate, they might not be the right agent for you.

4. Strong real estate negotiating skills

The last thing you want is a real estate agent who doesn’t go to bat for you. In addition to researching their online reviews, refer to this real estate negotiating checklist to gauge your agent’s abilities:

• They’re skilled speakers. If they can make you feel confident and comfortable when you first meet, they can do the same with the opposite parties and keep negotiations running smoothly.
• They have additional real estate education. Has your real estate agent taken negotiating classes or pursued additional certifications in their industry? The more they know, the more equipped they are to negotiate reasonable terms for you.
• They know how to prioritize. Ideally, you’ll get everything you want in your home purchase—but negotiation usually entails some compromise. A good agent can recognize when to stand firm and when to back down.

Pro tip: Most real estate agents have both buyer and seller clients, but you may be able to find an Exclusive Buyer Agent (EBA) in your area who works (you guessed it) exclusively with buyers. Try this tool to find an EBA near you.

What makes a good real estate agent for home sellers?

Some indicators of a good real estate agent are universal: in-depth local area knowledge, clear communication, and strong real estate negotiating skills. But as a seller, your agent should also have:

1. A track record of selling at or above the asking price
2. Strong marketing strategies

1. Track record of selling at or above the asking price

To make the most of your sale, your agent should have a track record of negotiating a higher final price than what you initially asked for (or at least a record of sticking to the asking price rather than going lower, depending on the real estate market conditions at the time of the sale).

2. Strong marketing strategies

To attract the best buyers, you want to show your home off at its best. Your agent should be able to provide professional photography, accurate and enticing listings, and a strong social media presence. In the current pandemic market, their ability to offer virtual/video touring options along with in-person open houses is also an asset.

Is there anything else I need to do before choosing a real estate agent?

So, now you know what makes a good real estate agent. But before you go, let’s touch on what makes you a good real estate customer. For sellers, our house selling checklist is a great place to start. If you’re buying, consider getting prequalified for financing with your mortgage lender before choosing a real estate agent.

Prequalification is not an official approval or offer for a home loan. Think of it as an expert estimate of what you could be approved for based on basic information you provide like your income, debt, and credit score. Even though it’s not official, it helps your agent narrow down potential homes within your budget (and lets them know you’re serious about your home search). When you’re ready to get prequalified, our team is here to help.

Whether you’re buying or selling, a good real estate agent should offer strong negotiating skills, clear communication, and an in-depth knowledge of the local area.

The post What Makes a Good Real Estate Agent? appeared first on Cardinal Financial.

Some say “Change is the only constant” and in the mortgage biz, this couldn’t be more true. Whether you’re ready for it or not, change will come, and we all have the choice to either adapt or move on to another industry. The reality of the housing market right now is that there’s still an affordability issue. Even with the economy doing well and interest rates staying relatively low, the affordability and availability of homes is still a struggle. Some experts are optimistic in their housing market predictions for 2019 while others are a bit cynical. Wherever you’re at on the spectrum, it’s safe to assume that many of the same things that characterized last year’s market will follow us into the new year.

5 Bold Housing Market Predictions 2019

1. New construction will rise

Despite labor shortages, new home construction is predicted by many industry experts to continue rising. This makes it especially crucial for real estate agents to make connections with builders and mortgage lenders that work closely with builders. There are many benefits to having those kinds of connections in general, but this year, it will be particularly important to proactively make those connections. Though labor shortages may prevail, when builders start hiring again, you’ll be in their contacts list and set up to do business with their clients.

Here’s a shameless plug: did you know that Cardinal Financial works with builders? We provide fully underwritten approval prior to contract as well as flexible lending terms and products for home buyers who are purchasing newly constructed homes. Plus, we issue automated loan status updates at all important checkpoints for home buyers and real estate agents. What’s better than working with a mortgage lender that knows your pain points and anticipates your needs?

2. Home prices will increase

While housing labor is experiencing shortages, the opposite is predicted to happen with home prices this year. Scotsman Guide recently wrote, “Builders are grappling with increases in the cost to build homes, and this is directly impacting inventory by keeping it persistently low, which also is driving home prices higher.” So although it’s becoming more expensive to build new homes, that’s not the main reason why home prices are predicted to increase. It’s the labor shortages.

In that same article, Scotsman Guide also reported, “It is mostly a lack of available labor, which is the result of multiple factors, including a construction labor force that is not growing fast enough to keep pace with demand and a large redirection of the existing labor force to areas in the country affected by natural disasters.”

At Cardinal Financial, we can get your clients fully underwritten right up front—even without a property address. This gives home buyers the confidence to go in with a strong bid knowing they’re a few steps ahead in the process. And when their offer is stronger than others, it gives both of you an advantage over the competition. Especially in a seller’s market, full up-front underwriting helps seal the deal faster. And it can get your clients to the front of the line if there’s a negotiation.

3. Millennials will drive the market

Each new year is only adding more Millennials to the force of home buying power. In fact, research done by Realtor.com states that “Millennials will account for 45 percent of mortgages in 2019.” This increased competition can make the market tough. Do you know how to reach this generation?

Top 3 Reasons Why Millennials Want to Buy

More than ever, home buyers are starting their home search online, and that includes Millennials. Plus, consumers are increasingly relying on not only the opinions of their friends and family, but of online reviews. This data begs the question: how is your online presence?

Networking and advertising have always been a challenge for real estate agents. But now more than ever it’s important to build a stable online presence. Do you have all the right tools to do it? If not, the good news is, we do. Cardinal Financial has an award-winning, agency-caliber Marketing team that creates hundreds of print and digital co-marketing pieces for real estate agents who partner with us. It’s a competitive market, but the right partnerships make all the difference.

Now more than ever it’s important to build a stable online presence. Do you have all the right tools to do it?

4. Rates will increase steadily

Each time the Fed raises the 10-year Treasury yield, mortgage rates follow closely behind. We saw it happen twice in 2018 and there’s a good chance it’ll happen again in 2019. But when it comes to rates, keep in mind that, as the Scotsman Guide wisely points out, “regardless of any incremental increases, rates are still at historic lows.”

And that’s good news for real estate agents. It could mean that renters won’t be completely turned off from the idea of buying a house this year. That means your business doesn’t have to suffer. You may have to scour the listings a little more to find the right home at the right price but it’s still possible. The key this year will be managing your clients’ expectations and reminding them that, if homeownership is their goal, they might not get everything they want in their first home.

The key this year will be managing your clients’ expectations and reminding them that, if homeownership is their goal, they might not get everything they want in their first home.

5. 2019 will be a seller’s market

The last of my housing market predictions for 2019 is that this year will be a seller’s market. With the economy still going strong, rates and home prices rising, and demand increasing, we’re likely to see a housing market much like the one we had in 2018. Last year’s peak season was arguably a seller’s market exhibiting all those same characteristics.

It could be a tough year for buyers and sellers in the sense that neither of them is likely to get everything they want. But sellers are predicted to continue to have the upper hand. Realtor.com says, “We don’t expect a buyer’s market on the horizon within the next five years.” Still, don’t give up on home buyers. They’re only going to need an awesome real estate agent on their side more than ever before.

How to Win in a Competitive Housing Market

Did this article help you prepare to take on this year’s housing market? Share it on social media to spread the word!

The post 5 Bold Housing Market Predictions 2019 appeared first on Cardinal Financial.

For home buyers and sellers, here are a few real estate tips that might win you points with your agent.

When it comes to what real estate agents wish their clients knew about home buying and selling, we’ve heard the pain points. This isn’t an exhaustive list by any means, and every real estate agent will have different advice, but here are some helpful real estate tips your agent might tell you to help you have a more seamless experience.

Real estate tips for home buyers

1. Might want to get that starter home now

The market is highly competitive right now. And mortgage interest rates don’t seem to be getting lower anytime soon. To add to the mix, some homeowners are still waiting for the perfect home to float their way before they make the decision to buy.

Given the current state of home buying and selling, this isn’t the most practical mindset. In fact, it’s the kind of attitude that could keep people from homeownership entirely. If you’re serious about hitting your goal of buying a home, it might be wise to just get that starter home now. Then, you can either DIY and put in the sweat equity to turn it into the home of your dreams or sell it later in order to level up a house. Of course, this isn’t a decision to take lightly, so we recommend you consult your financial advisor before you think about buying a starter home.

2. The serious buyer gets pre-approved

Pre-approval is the part of the mortgage process where your lender checks your credit and verifies your income and assets with the intent of lending you a specific amount. This preliminary step gives you a clear picture of how much you can afford. A serious (and smart) home buyer will get pre-approved before they go on the hunt for a home—or before they enlist their real estate agent to do so for them. Pre-approval shows your agent that you’re serious about buying a home. And by knowing exactly how much you’re able to afford, it helps narrow down your agent’s search and saves both of you from wasting time looking at homes you can’t afford.

3. Be frugal well after pre-approval

Many home buyers start out with a very frugal mentality because they don’t know how much it’s really going to cost them to buy a home. They err on the side of expensive and pinch pennies. Up until they get pre-approved. Then, they find out how much they can afford, realize it’s not so bad, and go opening new lines of credit and making purchases for the house they don’t yet have.

We can’t tell you what to do, but it’s best to avoid taking on more credit card debt and opening new lines of credit until after you’ve closed on the home. For one thing, we know you’re excited to furnish your home, but such frivolous spending can get you into trouble later. For another thing, your mortgage lender will pull your credit again toward the end of the process. New debt will have to be worked into your debt-to-income ratio. If your ratio was already close to the maximum allowed by lending guidelines, it could potentially result in loan denial.

4. I can’t tell you everything about the neighborhood

Every home buyer wants to know about the neighborhood they’re buying into. It’s normal to ask questions about the neighborhood’s characteristics: crime rate, diversity, economic status, and so on. These are honest questions that every home buyer is bound to have. What your real estate agent will most likely tell you is that they can’t give out that information—that would violate the Fair Housing Act. But what they may tell you is that you can find out for yourself.

There are plenty of trusted websites with those kinds of statistics, or you can ask around and see what the neighbors have to say. Just know that, if you ask the neighbors, you’re going to get their personal perspective, not necessarily unbiased data. There are many ways you can find out neighborhood demographic information, but you’re not going to get it from your agent.

There are many ways you can find out neighborhood demographic information, but you’re not going to get it from your agent.

5. Ask about flood insurance

Flooding is the most common natural disaster in the U.S. and, believe it or not, it affects every state. According to FEMA and the National Flood Insurance Program, flooding isn’t just caused by excess rainfall. It’s also caused by “dams or levees breaking, new development changing how water flows above and below ground, snowmelt, and more.” And with the hurricanes and flooding we’ve had in the last decade, FEMA is making more flood map changes and expanding flood zones.

While this may be good and safe for homeowners, it’s also increasing flood insurance mandatories, adding an expense to homeownership. What might your agent say? Don’t be blindsided by flood insurance premiums. Asking about whether the property you’re interested in is in a flood zone should be as routine as asking how many bedrooms and bathrooms it has. The idea is to be prepared. If you know ahead of time that a home you like requires flood insurance, you have the chance to either prepare yourself mentally and financially for that added expense or pass up that house and find a different one to pursue.

Asking about whether the property you’re interested in is in a flood zone should be as routine as asking how many bedrooms and bathrooms it has.

6. It’s not over until it’s over

Read it again: it’s not over until it’s over. It’s not time to celebrate until final funding goes through. Even if you feel like everything is in your favor and you’re confident that this house is yours, anything can happen over the course of the buying process—even up to the day you sign. Stay nimble and don’t get your hopes up until everything is said and done. Your real estate agent will appreciate your level-headedness and you’ll be glad you didn’t pop open the champagne prematurely.

Real estate tips for home sellers

1. Make sure the price is right

When you’re selling your home, it’s tough to come up with the right dollar amount. You may get nostalgic and think about all the memories you’ve made there . . . and how can you put a price on that? When deciding on a fair price to put on your home, don’t trust websites to do it for you. Remember, those are just estimates. They can be helpful, but you shouldn’t take that to the bank.

Don’t get attached to the number those free online calculators spit out. Trust your real estate agent to help you come up with an accurate amount based on nearby comparable homes. How might your agent weigh in? Price it to sell quickly, especially in this competitive landscape. Although the memories you’ve made are priceless, the house you’ve made them in is not. It’s ultimately about finding that balance between competing in the market and getting the price you deserve.

It’s ultimately about finding that balance between competing in the market and getting the price you deserve.

2. Don’t skimp on staging

Among the other to-do list items you have to tackle when selling your house, staging is one of the most important. Though, mentally, it may fall by the wayside, don’t let it. Take staging seriously. There are a few key principles to remember here. For one: depersonalize and declutter. You want home shoppers to be able to picture themselves living there, not you. Make sure your house is bright and illuminated, whether by opening the curtains or turning on the lights, or both. Clean like crazy and make sure the place smells good. You want to appeal to all the senses, not just the eyes. Some say baking cookies a half hour before the viewers arrive adds to the experience because, not only does your house smell amazing, you get to give away an unexpected sweet treat that turns out to be a pleasant surprise.

3. Your open house actually gives me more business

Real estate agents get a lot of business via word of mouth. You’re not just attracting potential buyers who may be interested in your home when you hold an open house. You’re inviting people who could potentially become your agent’s clients. During your open house, your real estate agent will be networking hard, passing out business cards, and trying to make connections. You may be welcoming neighbors who might sell their home later or home shoppers who don’t yet have an agent. Either way, your agent has a chance to meet these people and possibly gain their business.

4. I’m not made of money

This real estate tip goes for home buyers too. It’s a common misconception in the real estate world that agents make tons of money. And with that misconception comes the idea that a real estate agent can just *poof* magically make things happen. The agent is an advocate, but they’re definitely not made of money. And while some home sellers (and buyers) may feel like they’re writing a big check to their real estate agent, the truth is that the agent is only pocketing a small percentage of that amount. After splitting that check with their brokerage, they’re then putting some of that money toward various expenses like the sign in front of your house and access to the MLS. At the end of the day, they’re really only profiting a small portion of what you’re paying them.

5. It may take longer than you think to sell

Just like when you were buying your home, keeping realistic expectations is key. It’s a competitive market out there, and even though in past years it may have been faster and easier for people to sell their home, it might not happen the same way for you. Do you have an ideal timeline in your mind? It might not to go your way. A good home seller is a patient and prepared home seller—and one that makes the real estate agent’s job a little bit easier.

6. Don’t let a low offer get you down

We know you’ve made memories in your home, and no price tag can do that justice. But think about where bidders are coming from. They’re not coming from a place of nostalgia. Their perspective is looking out for their best interest and trying to get the best deal possible. You might be tempted to think that bidders who give low offers are selfish, but remember your agenda when you bought the place. You too were looking out for your best interest and trying to get the best deal possible. Just like buyers, sellers have to be savvy and nimble. Don’t get offended if you get a low offer. Work with your agent to counter-offer or decide whether it’s a fair price to accept.

Did these real estate tips help you in your home purchase or sale? Share this article with your friends and family!

The post Real Estate Tips Your Agent Wishes You Knew appeared first on Cardinal Financial.

The road to homeownership can be a bumpy one—especially for first-time buyers. With all the unexpected detours that can arise, it’s good to work with a real estate agent who’s got your back. Here are four qualities we’ve found in great real estate agents.

They educate and guide you through the process

A great real estate agent is going to educate you, the buyer, on the home buying process. They should be able to explain what’s happening as well as what’s going to happen as the process continues. And, of course, they should be ready and willing to answer all of your questions, even if they have to do some research and get back to you. A great real estate agent will have access to updated housing industry information and can give you stats on the local area’s housing market.

Think of your real estate agent as a guide—almost like a counselor. This person should be able to walk alongside you throughout the home buying process, guiding the way. Before you see some houses together, they will probably ask about your wants, needs, budget, and more. This information gives them an idea of what you’re looking for, what kind of lifestyle needs your home should meet, and other important insight that will help them find the right price, neighborhood, and, ultimately, home for you.

They network for you

The housing industry is a network in itself. In this professional web, you’re bound to find some people who know each other. Your real estate agent is no exception. They’ll probably have visibility to properties that just hit the market and haven’t been publicly listed yet. In addition, an experienced agent might have connections with and can refer you to other vendors you’ll need during the home buying process, like mortgage lenders, home inspectors, title companies, and more.

They advocate and negotiate on your behalf

One of the best things about having a buyer’s agent working for you is that they have a responsibility to look out for your best financial interests. This is harder to find in an agent who represents both the buyer and the seller because they’re not fully invested in or contractually bound to your sole interests. A real estate agent whose full obligation is to represent you will be more likely to go the extra distance to advocate on your behalf during the transaction.

Not everyone is good at negotiations (or even likes them) especially when it comes to a first-time buyer negotiating home-related costs. The good news is your agent will take care of all of that. This includes preparing the offer and counteroffer documentation, making calls to the seller’s agent, and sticking up for your terms and conditions. Your agent can even help negotiate repairs after your home inspection. If negotiations feel intimidating, your real estate agent will be able to calm your nerves and help you feel confident in their ability to handle the task.

They keep track of all the details

Any number of mishaps can arise between the blissful beginning of your home search and the nitty gritty details of settlement. A skilled real estate agent can keep their eyes on all the moving parts and catch anything that others in the transaction have missed. And, if you’ve already applied for a mortgage, you know this process involves quite a bit of paperwork. Your real estate agent does this for a living—they’ll be able to help you manage and keep track of all the documents in the process. Weathered agents know all the steps, even ones that aren’t directly related to their role, and have the ability to help you understand concepts and documents related to home buying.

Looking for a stellar real estate agent? We’ve got connections. Get in touch today and we may be able to connect you with one of our preferred real estate agents.

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