5 Tips on How to Navigate Home Appraisals

Being a full-time real estate investor, I am constantly navigating loan paperwork and appraisals on a regular basis. Over the years, I have implemented systems and processes to keep my property information organized and in one place, while also developing strategies to obtain the highest and most accurate property values.

If you are considering refinancing or taking out a home equity loan, there is a good chance that an appraisal will be necessary. To help you navigate this process, here are five valuable tips:

1. Request a full appraisal instead of a desktop appraisal. When applying for a home equity loan or refinancing, your mortgage company may offer a desktop appraisal at no cost to you. However, these appraisals often do not reflect the full value of your home. By opting for a full appraisal, you can ensure a more accurate assessment. Recently, I obtained a Home Equity Line of Credit (HELOC) on my personal home. While the desktop appraisal showed $400,000, the full appraisal revealed a value of over $700,000—a difference of $300,000. If the initial value does not meet your expectations, be sure to order a full appraisal.

2. Declutter your home, hire a professional cleaner, and stage your home. This step is crucial as it allows the appraiser to see your home in its best possible condition. A cluttered space can impact the appraiser's perception of your home's overall condition, potentially resulting in a lower appraisal value. Although this step requires effort, neglecting it can cost you thousands of dollars. If the appraiser reaches out and you are not ready, you can always reschedule for a later date when your home is properly prepared.

3. Remove personal pictures, if possible. Research has shown that African American homeowners receive lower appraisal values compared to their white counterparts. It is an unfortunate truth that minorities face on a daily basis. To mitigate any potential bias, replace personal pictures with neutral art when preparing for an appraisal.

4. Provide the appraiser with a list of recently sold comparable properties in your area. This proactive step can make the appraiser's job easier. By sharing information on recently sold properties within the last 90 days, you can help streamline their report by ensuring they consider accurate and relevant comparables. Additionally, this can be beneficial if the appraiser missed any comparable properties or is having difficulty finding suitable ones.

5. Follow up with the appraiser via email to express your gratitude and provide a list of enhancements and repairs made to your property. Appraisers work in various neighborhoods, making it impossible to stay informed about all the developments in every area. Informing them about upcoming developments and the housing demand in your vicinity can impact the value of your home. Furthermore, by providing detailed information on the improvements you have made, you assist the appraiser in compiling their report.

By following these five tips, you can navigate the appraisal process more effectively and increase the likelihood of obtaining an accurate and favorable appraisal value. Remember, attention to detail, strategic preparation, and proactive communication can significantly impact the outcome of your appraisal.

4 Ways to Reduce Your Mortgage Payment

While some individuals may prefer renting over owning a home due to the perceived lack of control over costs, it's important to note that there are opportunities for homeowners to lower their mortgage payments. In addition to the principal balance and interest, mortgage payments encompass taxes, homeowners insurance, and often private mortgage insurance (PMI) or mortgage insurance premium (MIP). Given the various components that influence the overall payment, there are several strategies to consider in order to reduce the burden of your mortgage.

One option is to explore the Homestead Exemption, a property tax exemption available to those who use their home as their primary residence. Applying for this exemption online through your county's website can lead to significant savings of approximately 20-30% on your property tax bill. 

Another approach is refinancing your mortgage, either with the existing lender or a different one, to take advantage of lower interest rates. It's advisable to monitor mortgage interest rates and consider refinancing if the new rate is at least 1% lower than your current rate, potentially leading to substantial monthly savings.

Homeowners can also seek out competitive rates for homeowners insurance. It's important to remember that you have the freedom to choose an insurance provider beyond the initial selection made prior to closing. By shopping around for insurance policies, you can find cost-effective options while ensuring that the coverage meets your lender's minimum requirements.

Private Mortgage Insurance (PMI) and Mortgage Insurance Premium (MIP) are additional costs that homeowners with conventional or FHA loans may encounter, respectively. For conventional loans, once you have achieved 20% equity in your home through a combination of principal repayment and property value appreciation, you can contact your lender to explore the process of removing PMI. Alternatively, working with a knowledgeable agent can help you explore innovative loan products that eliminate the need for PMI from the start. In the case of FHA loans, MIP remains for the duration of the loan. However, you can refer back to the refinancing option mentioned earlier and switch to a conventional loan once you have achieved 20% equity to eliminate the MIP requirement.

In conclusion, while rent payments are susceptible to increase over time, homeownership presents opportunities to reduce mortgage payments through strategies such as taking advantage of tax exemptions, refinancing, shopping for homeowners insurance, and addressing PMI or MIP requirements. By exploring these avenues, homeowners can potentially lower their monthly financial obligations and improve their overall financial well-being.

10 Ways to Prepare Your Home for Summer

Is your home ready for summer? With the season quickly approaching, it's essential to take the time to transition your home and ensure it's prepared for the changing climate. Fortunately, there are numerous ways to make your home summer-ready. Here are some helpful tips to get you started:

1. Check and service your air conditioning system. Clean or replace filters, and schedule professional maintenance if necessary.

2. Clean and repair your outdoor grill. Get your grill ready for barbecues and outdoor cooking by cleaning and inspecting it for any repairs needed.

3. Examine your outdoor furniture. Clean and inspect your outdoor furniture, repair or replace any damaged pieces, and add cushions or umbrellas for comfort.

4. Inspect and clean your gutters. Remove debris from gutters to prevent clogs and ensure proper drainage during summer storms.

5. Service your lawn equipment. Prepare your lawnmower, trimmers, and other equipment for the season by cleaning, sharpening blades, and replacing oil and fuel filters.

6. Upgrade your thermostat. Consider installing a programmable or smart thermostat that allows you to adjust the temperature based on your schedule and save energy when you're away.

7. Clean and repair your deck or patio. Remove debris, power wash, and reseal or stain your deck or patio to keep them looking their best and extend their lifespan.

8. Check your sprinkler system. Inspect and adjust your sprinkler system to ensure it's functioning properly and efficiently watering your lawn and plants.

9. Organize your outdoor storage. Clean and organize your shed or storage area, discarding unnecessary items and making space for summer equipment and accessories.

10. Create a summer emergency kit. Assemble an emergency kit with essential supplies such as water, non-perishable food, first aid items, flashlights, batteries, and a battery-powered radio in case of severe weather or other emergencies.

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Roadblocks for the Step-Up Buyer

Many people are talking about the challenges of homebuying or the likelihood of a market crash but is  anyone discussing how to overcome the roadblocks that we tend to harp on? There’s a lot of information and many opinions but has anyone talked to you personally? Has anyone asked you about your concerns and how to handle them? Let’s get the conversation started. 

1. Interest Rate - If you have bought a house in the last 8 years, you are probably having a hard time wrapping your head around an interest rate that is about double of what you currently have. 

2. Values - Not only are the rates double, but with appreciation between 10-30% in the last few years, you are also having to think about the higher values as well since the last time you purchased. 

3. Inventory - If I were to move to get a bigger home (or whatever), where would I go? There isn’t any inventory!

4. Timing - And if you have to sell your house before buying the next one, do you put your house up before you find the next one? How would all that timing work out.

Homeowners, have you had any of these thoughts recently?

It makes a lot of sense that you might. But please, don’t stop there! Here are some ways to get around these “barriers.”

1. Interest Rate - DATE the rate, MARRY the house! Rates will go down from where they are now, but they likely will never see the 2% or 3% in our lifetime. The faster you can come to accept this, the better you will be to continue building your wealth through real estate. And when the rates do go down, you can easily refinance the loan.

2. Values - I have a hard time with this too. I bought my first house in 2014, for $248,000 in one of the hottest neighborhoods in Intown Atlanta. It is difficult to find houses that are move-in ready at that price point, Inside the Perimeter or Outside the Perimeter. We need to get over this mental block as well. The prices today, we will likely look back on in a couple years and would rather have paid that amount than what is it going to be worth then.

3. Inventory - Having a great agent with the best lender connections can greatly resolve this problem. See number 4 below for another reason this will be okay.

4. Timing - Have you heard of a bridge loan being offered through lenders right now? This allows you to be ready to close on the bridge loan when you find your next house and use the equity for your home before actually selling it!* This means you can be patient for the right house, you can make an offer NOT contingent on the sale of your home, and you could even move into your new home while I work hard to sell your previous one.

As an investor, I am having to process these objections for myself also. They can be real barriers in our mind, but we have to push through them! Owning real estate is the tried and true way to build wealth. It will cost you too much to let these stop you.

"Where there is a will, there is a way!" I am someone who is committed to helping you find your way!

*In order to close on the next home before selling your next home, you will need to qualify for both loans on your debt to income ratio.

Unlocking the Hidden Potential: How to Turn Your Home Into an Income-Generating Haven

Hey there, homeowners! Let’s talk about something most people don’t realize: your home, as lovely as it may be, can actually be a liability. You see, owning a home comes with its fair share of expenses. From mortgage payments and property taxes to maintenance costs and utility bills, it all adds up. Not to mention the unpredictable curveballs life throws our way, like unexpected repairs or job changes. But fear not! Today, I’m here to show you how to turn that liability into a sparkling source of extra income. So buckle up and get ready to discover the untapped potential of your humble abode!

Renting out a Room
Why let that extra bedroom gather dust when it could be earning you some serious cash? Renting out a room is a fantastic way to generate additional income while making the most of your existing space. Whether you’re a fan of long-term tenants or prefer short-term rentals through platforms like Airbnb, that extra square footage could quickly become a lucrative asset.

Adding an ADU (Accessory Dwelling Unit)
Say hello to the ADU, your ticket to maximizing your home’s earning potential. An ADU is a self-contained living unit that can be added to your property—think granny flat, converted garage, or basement apartment. By creating this additional living space, you can rent it out to tenants and enjoy a steady stream of rental income. It’s a win-win!

Using a HELOC for Investment Properties
Ready to take your real estate game to the next level? Consider using a Home Equity Line of Credit (HELOC) to unlock the funds tied up in your home’s equity. With this financial tool, you can access a line of credit based on the appraised value of your property. Use the funds to invest in income-generating properties, such as rental homes or commercial spaces. Your home becomes a launchpad for your real estate empire!

Lights, Camera, Action — Renting Your Home for Movies, Commercials, and Photoshoots
Did you know that your home can be a star? By offering it as a rental location for movies, commercials, and photoshoots, you can turn your cozy abode into a sought-after backdrop for the entertainment industry. Get ready to see your home on the silver screen and enjoy a handsome payout for its temporary transformation.

Renting Your Home Hourly
If you have a spacious backyard or a refreshing pool, why not monetize them by renting them out for events and poolside get-togethers? With the rise of the sharing economy, platforms like Airbnb and Swimply have opened up exciting opportunities to turn your outdoor space into a money-making machine. If your backyard the envy of the neighborhood, rent it out as a venue for small events like birthday parties, barbecues, and even intimate weddings. With a well-maintained outdoor area, you can offer a picturesque setting for unforgettable gatherings and earn some extra cash along the way.

Simply put, your home is no longer just a place to lay your head—it’s a potential goldmine waiting to be tapped. By exploring options such as renting out a room, adding an ADU, using a HELOC for investment properties, renting your home for movies and photoshoots, embracing the gig economy for hourly rentals, and even renting your backyard for events and poolside retreats, you can transform your home from a liability into a reliable source of additional income. So why not unleash the earning potential of your humble abode and embark on a journey towards financial freedom?

So are you in? Let's chat more! The possibilities are endless!

Are Home Inspections Really Worth the Money?

Thinking about skipping a home inspection to save a few hundred dollars? 

Be forewarned, the few hundred dollars that you saved up front could end up costing you a few thousand in the long run, if not more! 

First things first, let’s talk through what a home inspection is. A home inspection is similar to a physical that you get from a doctor. It’s a thorough evaluation that is going to let you and the inspector know what all is good with the home that you plan to purchase and more importantly what is not so good with the home. All of this is great to know when making such a significant life and financial decision. 

Are there cases where there’s virtually nothing wrong or what is wrong is minor? Absolutely! But it’s not possible to know one way or another unless you get the home inspected, which I as a realtor always recommend, even if for no other reason than the peace of mind and being informed about your investment. 

Also when advising about home inspections, I always recommend that you have your home inspection performed by a certified professional that has been trained to go through a home from studs to studs and knows exactly what to look for. Not necessarily a handyman (or woman) that may have the skills to identify a few items around a home but hasn’t been professionally trained to perform an actual home inspection. 

Typically a professional home inspection will take between 2-3 hours depending on the size of the home. Once the inspection is completed the inspector will talk with you through their findings and provide a general consensus on the overall health of the home, allowing you as a buyer to make informed decisions going forward with your future home. 

So what if you’re contemplating purchasing a newly built home so you can bypass the home inspection? Not so fast! A home inspection is just as important on new construction properties. As with resale properties, you want to have a certified professional go through the newly built home from studs to studs to be sure the builders are doing things correctly and not cutting any corners. Once again, this is something you won’t know without having the home properly inspected.

It’s difficult to overstate just how important a home inspection is to the overall process of becoming a homeowner. Whether you’re buying an older property or new construction, the few hundred dollars up front to potentially save thousands on the back end is well worth it. 

Still not convinced? Let’s talk more!

Mortgage-Related FAQs for First-Time Homebuyers

Purchasing your first home can be exciting, but it can come with misinformation that makes it confusing. Here are a few of my mortgage-related frequently asked questions from first-time homebuyers:

Q: How do I know if it’s time to buy instead of rent?
A: If you have a steady and secure income and are ready for the responsibilities of homeownership, then it’s a great time to consider purchasing a home. I always say that the best time to buy a house is YESTERDAY. Many of my clients pay the same amount in their mortgage payment as they did when they were renters.

Q: How much do I need to save up for a down payment?
A: A common misconception is that a 20% down payment is necessary. Buyers can purchase a home for as little as 3 or 3.5% down, based on their particular financial situation. Although there are other fees associated with the transaction such as closing costs and prepaids, 3% allows many more people to gain access to homeownership. A conventional loan down payment is usually 20% of the sales price if a buyer is hoping to avoid PMI (Private Mortgage Insurance) included in monthly payments. A mortgage lender can tell you what types of loans you qualify for. In some areas, down payment assistance is available for first-time homebuyers.

Q: How do I know if I qualify for a loan and how much I can afford?
A: In order to know how much you qualify for, a mortgage lender can work with you to discuss requirements to get pre-approval for a loan. The lender will ask you some basic questions about your income and debts, can tell you what amount you can be approved for, and how much your mortgage payments will be. Lenders consider things like your credit score, income amount, debt, and other financials.

Q: What does the lender need from me to give me a loan?
A: Usually, you are asked to provide your last two tax returns to show proof of income. You should also be prepared to provide recent bank/credit card and asset statements, information about your employer, and proof of your current pay rate. You will also be asked for your social security number so they can run a credit check.

Q: How do I know which mortgage option is right for me?
A: Your mortgage lender is the best person to advise you on this question. Their products and qualifications change from time to time, so they would know best what options are available to meet your needs.

Do you want to explore if now is the right time for you to purchase? Do you want to be connected to a trusted mortgage lender? Reach out to me and let’s discuss!

*Note: this article can also be found on Jazmyne’s Revival at Home website.

3 Questions to Ask Before Selling Your Home

Looking to downsize or find something bigger? Whatever your reason is for selling, there are some important steps that must be taken to optimize your investment and get the best value for your home. 

Do I need a Realtor? 

Connecting with a Realtor is the most important step. Your Realtor can discuss your goals and timelines based on when you need or want to sell. A Realtor is able to let you know the best time to sell, analyze the market trends in the area of your home (to give the best advice on setting the listing price), and advise you on how to get your home ready to sell. Choosing the right price for your home can determine if you will have a quick sell or have a home that sits for months on end. The longer a home sits on the market, the more likely potential buyers will look at it as a negative. 

Should I do any upgrades to the home before selling? 

A Realtor will be able to connect you with any vendors and contractors that may be beneficial to getting your home prepped for sale. Knowing the top things buyers are looking for can help you to decide what areas of the home you should upgrade. As agents, we know what potential buyers are looking for and can give the best advice on what to do. We also give you tips on how to present your home once any upgrades are complete. For example, I always tell my clients to declutter and do a proper cleaning of the home. Buyers are very visual and want to envision themselves in the home. I also recommend choosing neutral decor as it attracts more people than distracts them. If you are not a savvy DIY interior designer, your agent can always link you with a reputable home staging company that can get your home "showroom" ready.

Does my property have curb appeal? 

The outside of your home is just as important as the interior. Cut those overgrown shrubs and excessive weeds. It will be the first thing buyers see when arriving to view it. Invest in good landscaping and lawn care to get the yard in tip top shape. Your Realtor will also want to schedule marketing photos to showcase the home in its best light.   

These are just a few of the questions to get you started but if you would like more information about selling your home or have questions you’d like to talk through, contact me today to schedule a consultation. 

Overcoming the Fears of Home Buying

As agents, our clients often disclose the fears they have when in regards to becoming a homeowner. And though valid, some fears delay the homeownership process unnecessarily. So we want to outline (and dispel) a few common fears and provide insight that helps our clients push through their hesitation and get to closing day! 

Interest Rates

High interest rates can be scary because the higher the rate, the higher the mortgage payment but the advantage with interest rates is that they are not permanent. Also, lower rates bring more buyers into the market, making home buying more challenging because of bidding wars, so we recommend you take advantage of the leverage you have as a buyer (to negotiate the best deal for yourself) when interest rates aren’t as competitive. We like to say “date the rate and marry the home”. The price of the home is fixed but you can always refinance when rates drop to help lower your mortgage payment.
 
Credit Scores

This is a valid concern as most lenders will require you to have at least a 620 credit score to be approved for a loan. The sooner you can speak with a lender and agent the better. If you're further out from making the purchase that gives you plenty of lead time to do what is needed to increase your score which will also help you get the best financing terms. 

Don’t have enough saved up to buy

Putting 20% down is not only rare but it actually isn’t necessary, between the both of us we can only remember one client that’s actually put down that much. With an FHA loan you can put down as little as 3.5% and as little as 3% for a conventional loan if you’re a first time homebuyer.

We also have resources that offer 100% financing with no PMI (Private Mortgage Insurance) or down payment assistance depending on each person's individual circumstances. We’ve had buyers pay as little as $2,000 out of pocket to get into their home, so there’s no reason to wait!

For those who want to start investing, there’s the Step Up Method. If you’re looking to purchase a 2nd home there’s a little trick we’ve both used. You can actually purchase the new home as your primary residence where you could not only get the best rate but also only have to put 5% down for a conventional loan, then rent out your previous home. This saves you from having to put down 20% and paying around 1% more in interest if you were to buy that 2nd home as an investment property. You can actually do this each year as a way to steadily build your real estate portfolio.

Home Repair Costs

Maintaining a home warranty on your home can give you more predictability with cost and peace of mind with your home. Generally your homeowners insurance will only cover catastrophic incidents but a home warranty has a broader coverage for many of the major systems in your home (i.e. plumbing, electrical, HVAC, appliances, etc). These policies typically charge a $100 deductible per incident and it’s as simple as picking up the phone and calling their number to get the repair process started. These warranties can range from around $500-750 depending on the plan tier and what items you want covered. Keep in mind if you hold off on renewal til close to the end of that year you could receive a coupon for savings off of that next year.

For any concern outside of warranty coverage we have an extensive list of contractors that we’ve worked with to help you get the best price and quality. We can help you coordinate this to make it a smooth transition into your new home.

So we’ve shared a few of the common fears our clients bring up, but now we want to hear from you! Do you have any of the same fears or is there something else you’re trying to work through? Either way, we want to connect with you and get the conversation started. Homeownership is a big decision but we believe it’s one of the best and most rewarding decisions you can make. 

What is a Pros Market?

Whenever I’m asked this question, I tell people they need a very good agent to navigate this market. What I mean is, you need someone with a lot of experience. Someone who knows what to ask for, how to negotiate & advocate for you, can get creative with challenging scenarios, and doesn’t slack off. Now I’m sure you’re saying “wouldn’t I want all of these anyway?” And of course my answer is yes, absolutely! But I’m emphasizing these qualities for this market specifically because there’s low room for error. You need an agent who knows what they’re doing because they’ve done it before. 

NAR’s (National Association of Realtors) membership is now at a record high of over 1.5 million agents. That means this market is saturated with licensed real estate agents—experts, pros, amateurs, & in between. With varying degrees of skill, some of these folks will do very well, while many others will be extremely challenged. The questions below will help you determine who is a good partner for you.

3 things to ask your potential agent:

1. Are you a solo agent, on a team, or do you have others working for you? How many clients are you currently representing? How many closings did you have last year?

   • One pro of working with a big agent (or an agent a part of a team) is that they usually have good systems but a con is you may not get as much individual attention. 2-7 clients is usually a good answer to this question. Anything between 15-45 closings last year is also a great number. 

2. Are you full time?

   • You want to ensure this isn’t just a side hustle.

3. What’s your superpower?

   • This will help you understand the type of agent partner you’d be getting. Personally, my superpower is setting expectations with clients and delivering clear results, having a strong vendor referral list, and most importantly, ethics! 

So I’ve given you a few things to consider, but maybe you’re saying “Adrienne, this agent is a close friend or family member who I have to work with” or “My agent is new, but I still want to give them a chance.” If either of these are your scenario, I don’t want you to violate the relationship that you have with your family member or friend so I am happy to discuss giving them a referral fee if you choose to work with me. I want to make sure that you are in the best hands possible when it comes to making the largest investment that you will ever make! 

Want to get the conversation started or have additional questions? Schedule a consultation below & be sure to click my name as your preferred agent.

3 Down Payment Assistance Programs You Should Know About

If there’s one type of client that I get most excited about as a Realtor it’s the “I don’t think I can afford it” client. They might have responsibly paid rent for years, maybe have a savings account that stacks slooowly, or they just assume that owning a home is something that “other people'' do.  Growing up my dad was a teacher, and we never owned a home—we lived in 6 rentals before I graduated high school. I think the biggest hurdles were mindset—thinking that it was a privilege that was financially out of reach for us—and ignorance of options that could get us there. With this as my personal background, it’s sharing these options that I get excited about, and there are a few such opportunities that I’d like to put out there today!

I’ve collaborated with Mark Daker from Ameris Bank on multiple transactions and he’s top-tier with communication and affordable options. Ameris is currently offering 3 programs I’ll highlight.

• My favorite and the one I find most accessible is the Ameris DPA Grant (DPA=down payment assistance). If you qualify you can receive the lesser of 4% of the purchase price or $12,500 toward your downpayment—that’s a game changer! To qualify for this grant, your income can be up to 80% of the median income for the area you’re moving into. Can’t do that math in your head? Me neither! Use this look-up tool link to insert an address of interest and find out the magic qualifying number! I love this program because it’s a grant—they’re giving you money! Think about this program as the rich relative you wish you had who asks for you to be responsibly employed in return for helping you out with your first home purchase.  

• Another program is the Ameris Dream. This is a true 100% financed loan—meaning you don’t make a downpayment—and is a good option if you’re low on savings you can apply to a home purchase. There are two qualifiers for this one. You can either qualify by income—your income being up to 80% of the median, just like the DPA Grant—OR you can qualify by buying a home in an area (census tract more specifically) that is considered “low to moderate income.” Again, not something anyone knows off the top of their head, so I have a handy tool to find out if an area you’re interested in is considered “low to moderate.” Just enter the address in this link, click “Census Demographic Data” and look for “Tract Income Level” and there you have it!

• The last one I’ll mention is the Ameris Housing Equity Enhancement Program (Ameris HEE). This is a smaller niche as the major qualifier is that you currently live in an approved census tract. I’ll include a map, but it is dominantly south, metro Atlanta with a few smaller pockets in the northeast and northwest. There is no income limit and it’s a grant for the lesser of 4% or $12,500—again, a significant amount!

These programs are all being offered specifically to help under-served areas and/or to develop homeownership for buyers that traditionally struggle to afford housing. We’ll take it! Other qualifiers relate to your credit score, debt-to-income ratio, etc. but they all make the prospect of affording a home purchase so much more attainable!

There is more to be known about all of these programs and I want my clients coming into homeownership well-educated, so please reach out with questions or for more information and I'd be glad to share! Mark Daker—the excellent lender mentioned above—can be reached at mark.daker@amerisbank.com and more information about these programs can be found at Ameris-DPA Programs.

Interested in this program or ready to learn more about your home buying options? Let’s chat!