Before Asking The Right Questions

Define Your Needs and Preferences: Clearly outline your requirements, preferences, and budget for your new home. Consider factors such as size, layout, style, amenities, and location preferences. Having a clear vision of what you want will help you communicate effectively with potential builders.

Hire Your Own Real Estate Professional: Your realtor works exclusively for your interests. They advocate on your behalf throughout the process. They provide expert negotiation skills, market knowledge, and research to secure the best terms and pricing from the builder. Your realtor assists with customization choices, guides you through the construction process, and offers objective advice and support. They also protect your legal and financial interests, ensuring contracts are fair.

10 Questions To Ask

1. What is your experience in the home building industry?: Inquire about the builder’s experience, including years in business, types of projects completed, and specialization areas.
2. Can you provide references from past clients?: Request references from previous clients to gauge their satisfaction with the builder’s work, communication, and professionalism.
3. Are you licensed, bonded, and insured?: Ensure that the builder holds the necessary licenses, bonds, and insurance to operate legally and protect against liabilities during construction.
4. What is your process for handling changes or modifications during construction?: Understand how the builder accommodates changes to the original plans, including the process, timeline, and potential costs involved.
5. How do you ensure quality control during construction?: Inquire about the builder’s quality control measures, including inspections, supervision, and use of quality materials and craftsmanship.
6. What is the estimated timeline for completing the project?: Obtain a realistic timeline for the construction process, including milestones and potential factors that could affect the schedule, such as weather delays.
7. What is included in the contract price, and are there any potential additional costs?: Clarify what is covered in the contract price, including materials, labor, permits, and site preparation. Additionally, discuss potential additional costs that may arise during construction.
8. Do you offer any warranties or guarantees on your work?: Inquire about the builder’s warranty coverage for materials and workmanship, as well as any guarantees provided after the completion of the project.
9. How do you handle communicating with clients throughout the construction process?: Understand the builder’s communication protocols, including how often updates are provided, who the main point of contact is, and how concerns or questions are addressed.
10. Can you provide a detailed breakdown of costs and payment schedule?: Request a comprehensive breakdown of all costs associated with the project, including payment schedules and milestones. Ensure that payment terms are clear and align with your budget and financial preferences.

Building A Home Involves A Team

Building a home is like putting together a puzzle with lots of pieces. You’ve got different people involved, like architects,

builders, and other experts, and they all have to work together smoothly. To make sure everything goes well, you need to do your homework. That means talking to different builders and experts, asking them questions, and checking out their work. It’s like interviewing them to see if they’re the right fit for your project. By doing your research and picking the right team, you can make sure your dream home becomes a reality, just the way you want it.

Erica Garvin

The post Hiring A Homebuilder? Here Are 10 Questions To Ask first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Increases

The total housing inventory at the end of February 2024 rose 8.20% to 2,389 existing homes available for sale. Over the last 12 months this area has had an average of 1,031 closed sales
per month. This represents an unsold inventory index of 2.32 MSI for this period.

Average Days on Market Lengthens

The average number of 40.93 days that homes spent on the market before selling increased by 5.45 days or 15.35% in February 2024 compared to last year’s same month at 35.48
DOM.

Average Sale Price Going Up

According to the preliminary trends, this market area has experienced some upward momentum with the increase of Average Price this month. Prices went up 5.38% in February 2024 to $297,067 versus the previous year at $281,890.

Sales Success Is Positive

Overall, with Average Prices going up and Days on Market increasing, the Listed versus Closed Ratio finished strong this month. There were 1,092 New Listings in January 2024, down 8.85%
from last year at 1,198. Furthermore, there were 740 Closed Listings this month versus last year at 700, a 5.71% increase. Closed versus Listed trends yielded a 67.8% ratio, up from the previous year’s, February 2023, at 58.4%, a 15.98% upswing. This will certainly create pressure in the months to come.

Erica Garvin

The post February 2024- Oklahoma Market Update first appeared on Ivy Key Team .

Pros & Cons of Building A New Home

Pros:

• Customization: Building a new home allows you to customize it according to your preferences. You can choose the layout, materials, finishes, and amenities to suit your needs and lifestyle.
• Energy Efficiency: New homes often incorporate the latest energy-efficient technologies and building materials, resulting in lower utility bills and a reduced environmental impact.
• Modern Features: You can integrate modern features such as smart home technology, energy-efficient appliances, and advanced security systems into your new home design.

• Warranty: Most new homes come with warranties that cover defects in construction and materials, providing peace of mind to homeowners.
• Lower Maintenance: Since everything in a new home is brand new, maintenance and repair costs are typically lower in the initial years compared to an older home.
• No Renovation Required: You won’t need to renovate or update the home for quite some time, saving both time and money in the long run.

Cons:

• Cost: Building a new home can be more expensive than purchasing an existing one, especially if you opt for custom features or high-end finishes.
• Time: Construction of a new home can take several months to over a year, depending on various factors such as weather, permits, and contractor availability, which means you may have to wait longer to move in.
• Location Limitations: Finding suitable land for building a new home in a desirable location can be challenging, and it may require compromises on factors such as commute time, school districts, or neighborhood amenities.
• Resale Value: Initially, the resale value of a newly constructed home may not be as high as that of established homes in the same area, as it lacks the history and established neighborhood reputation.
• Unknown Neighborhood Dynamics: When building in a new development, you may not have a clear idea of the neighborhood dynamics, such as noise levels, community amenities, or future developments, which can impact your satisfaction with the location in the long term.

Pros & Cons Of Buying An Existing Home

Pros:

• Immediate Availability: Existing homes are typically ready for occupancy soon after the purchase process is complete, allowing you to move in quickly without waiting for construction.
• Established Neighborhood: Existing homes are often located in established neighborhoods with mature trees, amenities, and community dynamics already in place. This can provide a sense of stability and community.
• Known Features and Layout: With an existing home, you can see exactly what you’re getting before you buy. You can evaluate the layout, size, condition, and features of the house in person.

• Negotiation Flexibility: There may be room for negotiation on the price of an existing home, especially if it’s been on the market for a while or needs some updates or repairs.
• Less Decision-Making Stress: Unlike building a new home where you’re making countless decisions, buying an existing home involves fewer decisions since the house is already built.

Cons:

• Repairs and Maintenance: Older homes may require more frequent repairs and maintenance compared to new homes. You may encounter issues such as plumbing problems, electrical issues, or the need for a new roof or HVAC system.
• Limited Customization: While you can renovate an existing home, there are limitations to how much you can customize it compared to building a new home from scratch.
• Energy Inefficiency: Older homes may lack modern energy-efficient features and insulation, resulting in higher utility bills and a greater environmental footprint.
• Hidden Problems: Despite inspections, there may be hidden problems with an existing home that only become apparent after you’ve moved in, potentially leading to unexpected expenses.
• Outdated Features: Older homes may have outdated features, layouts, or design elements that don’t align with modern preferences or lifestyle needs, requiring renovation or adaptation.
• Less Warranty Coverage: Unlike new homes that often come with warranties, existing homes may have limited or no warranty coverage, leaving you responsible for any repairs or replacements.

Which Option Is Right For You?

Deciding whether to build a home or buy an existing one is a significant decision that requires careful consideration of various factors. Here’s a step-by-step guide to help you make an informed choice:

Evaluate Your Needs and Preferences: Consider your lifestyle, family size, future plans, and must-have features in a home. Determine if customization and specific design preferences are crucial to you or if you’re comfortable with the features of an existing home.

Assess Your Budget: Determine your budget for purchasing a home, including potential renovation or customization costs for an existing home. Obtain quotes from builders and compare them with the cost of existing homes in your desired location.

Research Locations: Explore different neighborhoods and consider factors such as commute times, school districts, amenities, and community atmosphere. Determine if suitable land is available for building in your preferred location, and assess zoning regulations and building codes.

Consider Time Frame: Evaluate your timeline for moving into a new home. Building a home typically takes longer than purchasing an existing one, so consider your patience and flexibility regarding the move-in date.

Consult with Professionals: Speak with real estate agents, architects, builders, and financial advisors to gather insights and advice tailored to your specific situation. Get estimates for construction costs, potential resale values, and market trends in your desired location.

Visit Model Homes and Open Houses: Tour model homes to get a sense of the design, features, and quality offered by builders in your area. Attend open houses for existing homes to see firsthand what’s available on the market and to compare with the prospect of building.

Consider Your Long-Term Goals: Think about your long-term plans for the home. Are you looking for a forever home, or do you anticipate moving again in a few years? Evaluate how building or buying an existing home aligns with your financial goals, lifestyle aspirations, and future plans.

Trust Your Instincts: Ultimately, trust your instincts and choose the option that feels right for you and your family. Consider factors such as emotional attachment to a custom-built home versus the convenience of buying an existing one.

Erica Garvin

The post Building A New Home Vs Buying An Existing One: What You Need To Know first appeared on Ivy Key Team .

Initial Expenses Involved in Buying a Home

When purchasing a home, there are a few upfront out-of-pocket expenses. This includes Earnest Money, Inspection Fee, and Appraisal Costs. The earnest money is a deposit made by the buyer to demonstrate their serious intent to purchase the property. It is a good faith deposit, typically 1% of the home’s purchase price, that the buyer provides to the seller when submitting an offer. The earnest money is held in an escrow account and is later applied toward the buyer’s down payment and closing costs. If there is no down payment or closing costs, then the buyer will receive money back at the closing table.

Having a home inspection is a crucial step in the home-buying process, ensuring that your prospective investment remains free of any unforeseen issues. A home inspection provides a thorough examination of the property’s structural and mechanical components, identifying potential problems that may not be evident during a standard walkthrough. By investing in a home inspection, you gain valuable insights into the condition of the home, allowing you to make informed decisions and negotiate repairs or adjustments with the seller before finalizing the purchase. The costs of a home inspection can range from $350-$900.

Your mortgage lender will require an appraisal to be done on the property to ensure that the amount of money being borrowed aligns with the actual value of the property. The appraiser evaluates various factors, including the property’s size, condition, location, comparable home sales in the area, and any unique features. The primary purpose of the appraisal is to provide an unbiased and objective valuation of the property. This is crucial for both the buyer and the lender, as it helps determine the fair market value of the home. The cost of the appraisal can range from $600-$800.

What Are Reserves?

Lender-required reserves refer to the amount of money that a mortgage lender may require a borrower to have in reserve, beyond the down payment and closing costs, as a financial safety net. These reserves act as a cushion to cover future mortgage payments and other housing-related expenses in case of unexpected financial challenges.

Money-saving accounts and 401(k)s may be eligible sources for lender-required reserves. Money-saving accounts, such as savings or checking accounts, are straightforward options. Lenders often prefer liquid assets that can be easily accessed if needed. These accounts demonstrate a borrower’s ability to cover mortgage payments and other expenses.

Budgeting & Saving Tips

1. Establish a Monthly Savings Goal: Based on the total savings target and the timeline for purchasing a home, help your clients set a monthly savings goal. Divide the total amount they need to save by the number of months before they plan to buy.
2. Create a Separate Savings Account: Encourage your clients to open a separate savings account dedicated to their homebuying fund. This helps them track their progress and prevents the funds from being easily spent on other expenses.
3. Cut Unnecessary Expenses: Identify areas where your clients can cut back on unnecessary expenses. This might include dining out less frequently, reducing entertainment expenses, or renegotiating subscription services. Redirect the saved funds to their homebuying savings.
4. Increase Income if Possible: Explore opportunities for your clients to increase their income, such as taking on a part-time job, freelancing, or exploring side hustles. Supplementing their income can accelerate the savings process.

5. Take Advantage of Windfalls: Advise your clients to allocate unexpected financial windfalls, such as tax refunds, work bonuses, or monetary gifts, toward their homebuying fund. This can significantly boost their savings.

6. Regularly Review and Adjust the Plan: Regularly review the savings plan with your clients to ensure they are on track. If there are changes in their financial situation or homebuying timeline, be ready to adjust the plan accordingly.

Home Ownership Is A Journey

Homeownership is a journey that deserves careful consideration and patience. Rushing into such a substantial financial commitment can lead to potential pitfalls and regrets. Taking the time to thoroughly research, plan, and assess one’s financial readiness ensures a more informed decision and a smoother journey. Patience allows prospective homeowners to explore various options, weigh the pros and cons, and make choices aligned with their long-term goals.

Oklahoma Realtor

Erica Garvin

The post Mastering Your Money: Insider Tips for Future Homeownership Success first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Increases

The total housing inventory at the end of December 2023 rose 8.88% to 2,526 existing homes available for sale. Over the last 12 months, this area has had an average of 1,027 closed sales per month. This represents an unsold inventory index of 2.46 MSI for this period.

Average Days on Market Lengthens

The average number of 34.35 days that homes spent on the market before selling increased by 5.45 days or 18.84% in December 2023 compared to last year’s same month at 28.90 DOM.

Average Sale Price Going Up

According to the preliminary trends, this market area has experienced some upward momentum with the increase in Average Price this month. Prices went up 3.01% in December 2023 to $293,793 versus the previous year at $285,222.

Sales Success is Positive

Overall, with Average Prices going up and Days on the Market increasing, the Listed versus Closed Ratio finished weak this month. There were 983 New Listings in December 2023, up 5.36% from last year at 933. Furthermore, there were 865 Closed Listings this month versus last year at 976, a -11.37% decrease. Closed versus Listed trends yielded an 88.0% ratio, down from the previous year’s, December 2022, at 104.6%, a 15.88% downswing. This will certainly create pressure on an increasing Month Supply of Inventory (MSI) in the months to come

Erica Garvin

The post January 2024- Oklahoma Market Update first appeared on Ivy Key Team .

Reasons To Consider Buying A Home:

One key benefit is the opportunity to build equity over time as you pay down your mortgage. This equity can be a valuable asset and can be accessed through home equity loans or lines of credit. Owning a home provides stability and a sense of security. You have control over your living space and don’t have to worry about landlords changing rental terms, offering a more stable and secure living arrangement. Owning a home can also be a part of a long-term financial plan. As you pay off your mortgage, your housing costs decrease, offering financial security, especially in retirement.

Homeownership also allows you to personalize your space according to your preferences. You have the freedom to make home improvements and renovations, creating a living environment that suits your lifestyle. With a fixed-rate mortgage, your monthly payments remain stable over the life of the loan. This predictability can make budgeting and financial planning easier, providing peace of mind. Homeownership often fosters a sense of community. You become part of a neighborhood, and the connections formed with neighbors can contribute to a strong sense of belonging.

Your Home Buying Journey

• Interview and enlist the help of a licensed realtor. Your realtor will have direct access to mortgage lenders and other vendors needed to make your home-buying journey seamless.

Contact A Realtor

• Apply for your home loan with a mortgage lender. This pivotal step opens the door to insightful conversations about options, monthly payments, considerations for the down payment, and understanding the necessary closing cost requirements. A tailored game plan will be made to strategically navigate your home-buying journey.

• Find your perfect home with the help of your savvy real estate agent. She/he will help you navigate inspections, surveys, and/or appraisals. They will also assist in coordinating things between the title company, lender, and the listing parties.

• Prior to closing on your home, your realtor will help coordinate utilities and other pre-closing needs. Once you close you will be handed the keys to your brand new home!

2024 Housing Market Predictions

If you are considering purchasing a home in 2024, be sure to analyze your financial situation to ensure that the pros outweigh the cons. The housing market outlook was once bleak, but better days are on the horizon.

Erica Garvin

The post 2024, The Year of New Homeowners first appeared on Ivy Key Team .

Our newest Facebook group is designed to help our newest real estate agents crush it in their first year! The group was founded when our CEO, Erica Garvin, met with a group of real estate agents and came up with the 7 pillars to run a successful real estate business.

Pillar 1: Branding

Creating your own unique identity that conveys what your business is about is so important. A strong brand builds trust and credibility and becomes recognizable in any market.

Pillar 2: Entrepreneur

This pillar caters to the agent by focusing on the well-being of mind, body, and business. It is no secret that many agents fail due to a lack of knowledge on how to run and operate a successful business

Pillar 3: Customer Service

Many agents believe that we are in the business of helping buyers and sellers find or sell their homes. Instead, agents should approach their business from a customer service point of view. This mind shift opens up creative ways that an agent can improve the customer experience

Pillar 4: Lead Generation

Many agents have trouble not only obtaining organic leads but also knowing what to do once they have them. Here we discuss all forms of lead generation including how to warm up a cold lead.

Pillar 5: Expansion

A valuable trait in a successful real estate agent is their ability to create actions that will lead to their business growth regardless of their current situation. I have seen agents with 2 clients one year, but through consistency grow to 20+ clients the next.

Pillar 6: Automation

Another word for automation is systems. Having systems in place will ensure that no clients fall through the cracks and make the process from start to finish seamless. It will also help you as an agent become savvy, organized, and on track to hitting your goals no matter the market you are in.

Pillar 7: Relationships

Fostering and maintaining relationships is a great way for you to be the go-to realtor in your market. Being intentional and precise in your day-to-day can be proven beneficial in being known as “that realtor.” In a good way.

Erica Garvin

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post New real estate agent? Join our Facebook group first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Increases

The total housing inventory at the end of November 2023 rose 9.29% to 2,706 existing homes available for sale. Over the last 12 months, this area has had an average of 1,036 closed sales per month. This represents an unsold inventory index of 2.61 MSI for this period.

Average Days on Market Lengthens

The average number of 32.19 days that homes spent on the market before selling increased by 7.37 days or 29.68% in November 2023 compared to last year’s same month at 24.82 DOM.

Average Sale Price Going Up

According to the preliminary trends, this market area has experienced some upward momentum with the increase of Average Price this month. Prices went up 2.77% in November 2023 to $291,805 versus the previous year at $283,931.

Sales Success for November 2023 is Positive

Overall, with Average Prices going up and Days on Market increasing, the Listed versus Closed Ratio finished weak this month. There were 1,217 New Listings in November 2023, up 7.51% from last year at 1,132. Furthermore, there were 896 Closed Listings this month versus last year at 935, a -4.17% decrease.
Closed versus Listed trends yielded a 73.6% ratio, down from previous year’s, November 2022, at 82.6% , a 10.86% downswing. This will certainly create pressure on an increasing Months Supply of Inventory (MSI) in the months to come.

Erica Garvin

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post December 2023- Oklahoma Market Update first appeared on Ivy Key Team .

What is Foreclosure & How Does It Affect You?

When you miss a monthly payment on your mortgage the bank that holds the mortgage is alerted. After several missed payments the bank will proceed to file a Notice of Default to start the foreclosure process. Once filed the homeowner that is in arrears on the monthly payments will be served or notified via mail that the bank has begun foreclosure proceedings. The bank will want to sell the property so that any missed payments, outstanding balances on the loan, and property liens are paid. If the home sells for more than what is owed, then the homeowner has the right to collect the excess proceeds. The surplus funds can be collected by filing a motion at your local court or by hiring an attorney to collect these funds on your behalf.

Once a foreclosure is complete the effects are felt immediately. Foreclosure can cause a drastic drop in credit score. This deep impact will last for several years and prevent you from qualifying for another home in the near future. It may also affect your ability to qualify for rental homes or apartments if a credit check is a part of your application process. Utility companies may also increase deposits as they often require a credit check when activating services. Not to mention the stress and financial burden the foreclosure will cause it is best to avoid it at all costs.

Foreclosure Prevention Resources

Do Not Ignore Any Notices

Avoiding the problem and hoping that it goes away is not the answer. Trust me when I say that it may seem easier to turn a blind eye, but it will absolutely hurt you later down the road. Yes, that means you need to open up every notice that the bank sends you. Understand that I am writing from a place of compassion as I know that the guilt and stress you feel are heavy, but understanding where you are at will help us know where we need to go.

Reassessing Finances

Taking the time to see the big picture of your financial situation is the first step in overcoming the hurdle of foreclosure. The best way to analyze your finances is to determine how much is owed and calculate what it would take for you to catch up. This may be taking into account you working overtime or even calculating a tax refund that will help make up missed payments. If you are unable to free up additional funds to catch up on the missed mortgage payments then I recommend reassessing your finances to make sure that moving forward you will not

Speak With Your Mortgage Bank

If you find yourself unable to catch up on missed payments always speak with your mortgage bank. Often they have programs available to help homeowners avoid foreclosures. These often look like applying the outstanding balance to the end of the loan by increasing the loan term. Lenders may also be able to increase the monthly payments for a specified time to allow homeowners to become current on missed payments. Once the back payment is paid then the monthly payments will return to their original amounts. Speaking with the bank will help you put a plan into action to avoid foreclosure.

What To Do If All Else Fails

If a foreclosure is inevitable, Selling your home may be the right choice. This puts the power back into your hands and avoids a foreclosure on your record. Speak with a qualified real estate professional and determine the next steps for selling your home. Be sure that your real estate professional understands how delicate your situation may be and has had experience with handling foreclosures. They may need to speak with your lender and the attorneys that are handling the foreclosure. If you find yourself needing to sell, realize that time is of the essence. Waiting may not give your real estate agent enough time to sell.

Erica Garvin

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post Are You In Foreclosure? Find Out How To Stop It Now! first appeared on Ivy Key Team .

Seller Financing

If you are unable to secure a loan through a bank you may want to consider seller financing. Seller financing is when the owner of a property finances the home instead of the bank. The first step in achieving this is to identify the property you are wanting to buy. A qualified real estate agent may also have a list of properties in your area that sellers are essentially willing to be the bank.

Once you identify the property you are interested in, if the seller has not initially offered seller financing then a conversation will be had on agreeable terms that both buyer and seller are satisfied with. Keep in mind that often interest rates or down payments may be steeper than if you were to go through a mortgage bank as there are some risks involved with the seller financing the property. Once terms are established and written into an agreement, then closing would take place normally. Be sure to connect with a qualified realtor to review the terms

Rent To Own

Rent to own is a great opportunity to purchase your dream home sooner rather than later. Rent to Own is when a buyer agrees to rent a home from the owner for a certain time period and becomes a tenant. Once the time period has expired the tenant than becomes the buyer and has the option to purchase. Depending on the terms a predetermined amount of the monthly rent may be applied towards the tenant purchasing the home. When the time comes, The buyer can choose to purchase by applying for a mortgage loan assuming that he/she has been working on becoming eligible for financing. The owner may also be willing to be the “bank” and allow the buyer to finance directly through them.

Real Estate IS Flexible

Many buyers have this idea that real estate is rigid and that there is only one way to become a homeowner. This is an absolute myth! When it comes to real estate we can be creative in helping a buyer find the perfect home for them. It starts with understanding your goals. Once we understand, we can then provide options on what best helps you to achieve those goals. With options, there is power in choice. Real estate is not a one-size-fits-all! Many future homebuyers just need a plan to help guide them to the next step in their homebuying journey.

Erica Garvin

The post How To Buy A Home Without Going Through A Bank first appeared on Ivy Key Team .