Self-Employed and Buying a Home? Here’s What You Need to Know

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Self-employed people can absolutely get approved for mortgages and purchase real estate. But the process can be a bit more challenging—and if you’re self-employed, it’s important to know what to expect when you apply for a mortgage.

So what, exactly, should you expect?

A recent article from realtor.com outlined things self-employed individuals need to know before they start shopping for a home, including:

• You’ll need to have been self-employed for at least two years. Most lenders will want you to submit documentation that verifies the past two years of your employment. That means, if you’re self-employed, you will need to have been working for yourself for at least two years. Be prepared to show tax returns going back two years in order to verify your self-employed status, and the amount of income you gross and net from your work.
• Tax breaks can impact your borrowing potential. One benefit of being self-employed is that you can write off certain business expenses, which lowers your taxable income (and lowers your tax bill). But while paying fewer taxes is great for your bank account, it’s not always great for buying a house. When determining whether to approve your mortgage (and how much to approve), your lender will look at your net income (the total after any tax deductions), not your gross income (the total amount you earned). This can prevent you from securing a mortgage at all, or securing a mortgage for the amount you need to buy your home. So if you’re planning on buying a home in the near future, consider how many expenses you want to deduct.
• The process can take longer. In theory, the approval process for a self-employed person should take the same amount of time as a traditionally employed person. But if you’ve had any recent changes in your business—or you have income from a variety of sources—it may take longer to collect all the necessary documentation and process your mortgage application.

For more tips, get in touch! Kevin and Jennifer Hanley, REALTOR Over 1000 homes sold! The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

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184 Things That REALTORs Do For Their Sellers

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Pre-listing activities

1. Make appointment with seller for listing presentation.
2. Send a written or e-mail confirmation of appointment and call to confirm.
3. Review appointment questions.
4. Research all comparable currently listed properties.
5. Find sales activity for past 18 months from MLS and public databases.
6. Research “average days on market” for properties similar in type, price and location.
7. Download and review property tax roll information.
8. Prepare “comparable market analysis” (CMA) to establish market value.
9. Obtain copy of subdivision plat/complex layout.
10. Research property’s ownership and deed type.
11. Research property’s public record information for lot size and dimensions.
12. Verify legal description.
13. Research property’s land use coding and deed restrictions.
14. Research property’s current use and zoning.
15. Verify legal names of owner(s) in county’s public property records.
16. Prepare listing presentation package with above materials.
17. Perform exterior “curb appeal assessment” of subject property.
18. Compile and assemble formal file on property.
19. Confirm current public schools and explain their impact on market value.
20. Review listing appointment checklist to ensure completion of all tasks.

Listing appointment presentation

21. Give seller an overview of current market conditions and projections.
22. Review agent and company credentials and accomplishments.
23. Present company’s profile and position or “niche” in the marketplace.
24. Present CMA results, including comparables, solds, current listings and expireds.
25. Offer professional pricing strategy based and interpretation of current market conditions.
26. Discuss goals to market effectively.
27. Explain market power and benefits of multiple listing service.
28. Explain market power of Web marketing, IDX, and REALTOR.com.
29. Describe the work the broker and agent do “behind the scenes” and agent’s availability on weekends.
30. Describe agent’s role in screening qualified buyers to protect against curiosity seekers.
31. Present and discuss strategic master marketing plan.
32. Explain different agency relationships and determine seller’s preference.
33. Review all clauses in listing contract and obtain seller’s signature.

After listing agreement is signed

34. Review current title information.
35. Measure overall and heated square footage.
36. Measure interior room sizes.
37. Confirm lot size via owner’s copy of certified survey, if available.
38. Note any and all unrecorded property lines, agreements, easements.
39. Obtain house plans, if applicable and available.
40. Review house plans, make copy.
41. Order plat map for retention in property’s listing file.
42. Prepare showing instructions for buyers’ agents and agree on showing time with seller.
43. Obtain current mortgage loan(s) information: companies and account numbers.
44. Verify current loan information with lender(s).
45. Check assumable loan(s) and any special requirements.
46. Discuss possible buyer financing alternatives and options with seller.
47. Review current appraisal if available.
48. Identify Homeowner Association manager is applicable.
49. Verify Homeowner Association fees with manager–mandatory or optional and current annual fee.
50. Order copy of Homeowner Association bylaws, if applicable.
51. Research electricity availability and supplier’s name and phone number.
52. Calculate average utility usage from last 12 months of bills.
53. Research and verify city sewer/septic tank system.
54. Calculate average water system fees or rates from last 12 months of bills.
55. Or confirm well status, depth and output from Well Report.
56. Research/verify natural gas availability, supplier’s name and phone number.
57. Verify security system, term of service and whether owned or leased.
58. Verify if seller has transferable Termite Bond.
59. Ascertain need for lead-based paint disclosure.
60. Prepare detailed list of property amenities and assess market impact.
61. Prepare detailed list of property’s “Inclusions & Conveyances with Sale.”
62. Complete list of completed repairs and maintenance items.
63. Send “Vacancy Checklist” to seller if property is vacant.
64. Explain benefits of Homeowner Warranty to seller.
65. Assist sellers with completion and submission of Homeowner Warranty application.
66. When received, place Homeowner Warranty in property file for conveyance at time of sale.
67. Have extra key made for lockbox.
68. Verify if property has rental units involved. And if so:
69. Make copies of all leases for retention in listing file.
70. Verify all rents and deposits.
71. Inform tenants of listing and discuss how showings will be handled.
72. Arrange for yard sign installation.
73. Assist seller with completion of Seller’s Disclosure form.
74. Complete “new listing checklist.”
75. Review results of Curb Appeal Assessment with seller and suggest improvements for salability.
76. Review results of Interior Decor Assessment and suggest changes to shorten time on market.
77. Load listing time into transaction management software.

Entering property in MLS database

78. Prepare MLS Profile Sheet–agent is responsible for “quality control” and accuracy of listing data.
79. Enter property data from Profile Sheet into MLS listing database.
80. Proofread MLS database listing for accuracy, including property placement in mapping function.
81. Add property to company’s Active Listings.
82. Provide seller with signed copies of Listing Agreement and MLS Profile Data Form within 48 hours.
83. Take more photos for upload into MLS and use in flyers. Discuss efficacy of panoramic photography.

Marketing the listing

84. Create print and Internet ads with seller’s input.
85. Coordinate showings with owners, tenants and other agents. Return all calls–weekends included.
86. Install electronic lockbox. Program with agreed-upon showing time windows.
87. Prepare mailing and contact list.
88. Generate mail-merge letters to contact list.
89. Order “Just Listed” labels and reports.
90. Prepare flyers and feedback forms.
91. Review comparable MLS listings regularly to ensure property remains competitive in price, terms, conditions and availability.
92. Prepare property marketing brochure for seller’s review.
93. Arrange for printing or copying of supply of marketing brochures or flyers.
94. Place marketing brochures in all company agent mailboxes.
95. Upload listing to company and agent Internet sites, if applicable.
96. Mail “Just Listed” notice to all neighborhood residents.
97. Advise Network Referral Program of listing.
98. Provide marketing data to buyers from international relocation networks.
99. Provide marketing data to buyers coming from referral network.
100. “Special Feature” cards from marketing, if applicable.
101. Submit ads to company’s participating Internet real estate sites.
102. Convey price changes promptly to all Internet groups.
103. Reprint/supply brochures promptly as needed.
104. Review and update loan information in MLS as required.
105. Send feedback e-mails/faxes to buyers’ agents after showings.
106. Review weekly Market Study.
107. Discuss feedback from showing agents with seller to determine if changes will accelerate the sale.
108. Place regular weekly update calls to seller to discuss marketing and pricing.
109. Promptly enter price changes in MLS listings database.

The offer and the contract

110. Receive and review all Offer to Purchase contracts submitted by buyers or buyers’ agents.
111. Evaluate offer(s) and prepare “net sheet” on each for owner to compare.
112. Counsel seller on offers. Explain merits and weakness of each component of each offer.
113. Contact buyers’ agents to review buyer’s qualifications and discuss offer.
114. Fax/deliver Seller’s Disclosure to buyer’s agent or buyer upon request and prior to offer if possible.
115. Confirm buyer is pre-qualified by calling loan officer.
116. Obtain pre-qualification letter on buyer from loan officer.
117. Negotiate all offers on seller’s behalf, setting time limit for loan approval and closing date.
118. Prepare and convey any counteroffers, acceptance or amendments to buyer’s agent.
119. Fax copies of contract and all addendums to closing attorney or title company.
120. When Offer-to-Purchase contract is accepted and signed by seller, deliver to buyer’s agent.
121. Record and promptly deposit buyer’s money into escrow account.
122. Disseminate “Under-Contract Showing Restrictions” as seller requests.
123. Deliver copies of fully signed Offer to Purchase contract to sellers.
124. Fax/deliver copies of Offer to Purchase contract to selling agent.
125. Fax copies of Offer to Purchase contract to lender.
126. Provide copies of signed Offer to Purchase contract for office file.
127. Advise seller in handling additional offers to purchase submitted between contract and closing.
128. Change MLS status to “Sale Pending.”
129. Update transaction management program to show “Sale Pending.”
130. Review buyer’s credit report results–Advise seller of worst and best case scenarios.
131. Provide credit report information to seller if property is to be sellerfinanced.
132. Assist buyer with obtaining financing and follow up as necessary.
133. Coordinate with lender on discount points being locked in with dates.
134. Deliver unrecorded property information to buyer.
135. Order septic inspection, if applicable.
136. Receive and review septic system report and access any impact on sale.
137. Deliver copy of septic system inspection report to lender and buyer.
138. Deliver well flow test report copies to lender, buyer and listing file.
139. Verify termite inspection ordered.
140. Verify mold inspection ordered, if required.

Tracking the loan process

141. Confirm return of verifications of deposit and buyer’s employment.
142. Follow loan processing through to the underwriter.
143. Add lender and other vendors to transaction management program so agents, buyer and seller can track progress of sale.
144. Contact lender weekly to ensure processing is on track.
145. Relay final approval of buyer’s loan application to seller.

Home inspection

146. Coordinate buyer’s professional home inspection with seller.
147. Review home inspector’s report.
148. Enter completion into transaction management tracking software program.
149. Explain seller’s responsibilities of loan limits and interpret any clauses in the contract.
150. Ensure seller’s compliance with home inspection clause requirements.
151. Assist seller with identifying and negotiating with trustworthy contractors for required repairs.
152. Negotiate payment and oversee completion of all required repairs on seller’s behalf, if needed.

The Appraisal (The agent sells the home twice – once to the buyer and then to the appraiser!)

153. Schedule appraisal.
154. Provide comparable sales used in market pricing to appraiser.
155. Follow up on appraisal.
156. Enter completion into transaction management program.
157. Assist seller in questioning appraisal report if it seems too low.

Closing preparations and duties

158. Make sure contract is signed by all parties.
159. Coordinate closing process with buyer’s agent and lender.
160. Update closing forms and files.
161. Ensure all parties have all forms and information needed to close the sale.
162. Select location for closing.
163. Confirm closing date and time and notify all parties.
164. Solve any title problems (boundary disputes, easements, etc.) or in obtaining death certificates.
165. Work with buyer’s agent in scheduling and conducting buyer’s final walkthrough prior to closing.
166. Research all tax, HOA, utility and other applicable prorations.
167. Request final closing figures from closing agent (attorney or title company).
168. Receive and carefully review closing figures to ensure accuracy.
169. Forward verified closing figures to buyer’s agent.
170. Request copy of closing documents from closing agent.
171. Confirm the buyer and buyer’s agent received title insurance commitment.
172. Provide “Home Owners Warranty” for availability at closing.
173. Review all closing documents carefully for errors.
174. Forward closing documents to absentee seller as requested.
175. Review documents with closing agent (attorney).
176. Provide earnest money deposit from escrow account to closing agent.
177. Coordinate closing with seller’s next purchase, resolving timing issues.
178. Have a “no surprises” closing so that seller receives a net proceeds check at closing.
179. Refer sellers to one of the best agents at their destination, if applicable.
180. Change MLS status to Sold. Enter sale date, price, selling broker and agent’s ID numbers, etc.
181. Close out listing in transaction management program.

Follow-up after closing

182. Answer questions about filing claims with Homeowner Warranty company, if requested.
183. Attempt to clarify and resolve any repair conflicts if buyer is dissatisfied.
184. Respond to any follow-up calls and provide any additional information required from office files.

We are ready to WOW you in 2023! Kevin and Jennifer Hanley, REALTORS 904-515-2479 The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside HanleyHomeTeam.com

Buying a Home? Make Sure You’re Prepared for These Closing Costs

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Buying a home, buying a home in Jacksonville, closing costs, homes for sale in Jacksonville FL, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, The best real estate agent in Jacksonville

Buying a home is about more than just the purchase price. There are additional costs you’ll incur when you buy a home, most of which are due at closing—and it’s important to be prepared (and to budget!) for those costs.

So, as a buyer, what closing costs can you expect to pay when you buy a home?

A recent video from realtor.com outlined fees buyers should be prepared to pay at closing, including:

• Lender fees. Your bank or mortgage broker will charge you a loan origination fee that you’ll have to pay at closing. If you purchase points to “buy down” your mortgage, you’ll also have to cover those costs.
• Escrow fees. Escrows are independent companies that complete the closing transaction. Not only are they responsible for ensuring the transaction is legally binding, but they also collect and distribute money from all parties involved (including the lender)—and charge fees for their services. 
• Appraisal fees. Lenders need an appraisal to make sure the house is worth what the buyer has agreed to pay for it—and as the buyer, you’ll need to cover the fee for the appraisal.

Surprises in real estate are no fun! Don’t be surprised – call us and be prepared. Kevin and Jennifer Hanley, REALTOR Over 1000 homes sold! The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Use These Tips to Save on Utilities This Winter

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Utilities can be expensive, especially during the winter when people spend more time at home and use more electricity, water, and other utilities.

But there are small changes you can make that can add up to big savings on your utility bills.

So what, exactly, are those changes?

A recent video from realtor.com outlined tips homeowners can use to save on utilities this winter, including: 

• Unplug “energy vampires.” According to the video, residential electric costs have gone up 14 percent over the past 10 years. And if you want to save on your electric bill, a great way to do it is to turn off any “energy vampires.” Energy vampires are tools and appliances that typically stay plugged in, but are often not in use (like printers and chargers). Unplug them and you’re likely to see a significant drop in your electric bill.
• Swap out your incandescent light bulbs to low energy LED bulbs. Incandescent light bulbs use a lot of energy. So, another way to save money on your electric bill is to swap out those incandescent light bulbs for low energy LED bulbs, which use significantly less energy. Not only are these bulbs long-lasting (according to the video, they last, on average, 18 years!), but they can also dramatically lower your energy costs up to 85 percent, according to the video.
• Wash your clothes in cold water. If you want to lower your water bill, consider washing your clothes in cold water instead of warm. Your clothes will get just as clean, and you’ll bring down your water costs in the process. (According to the video, washing your clothes in cold water saves about $130 per year.)

For more great tips, contact us! Kevin and Jennifer Hanley, REALTOR Over 1000 homes sold! The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

Trying to Figure Out the Best Time to Sell Your Home? Keep These Factors in Mind

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When you sell your home, you want to sell it at a time when it will sell as quickly and profitably as possible.

But how, exactly, do you determine when that time is?

A recent article from realtor.com outlined things to consider when determining the best time to sell your home, including:

• Spring isn’t always the best time to sell. Conventional wisdom says that spring is the best time of year to sell your home. But that’s not always the case. Because so many sellers think spring is the ideal selling time, there will be more homes on the market—which means you’ll have to compete with a higher volume of homes than you would if you sold at another time of year. If you’re concerned your home won’t stand up well to competition, consider selling at a slower time of year—like fall or winter.
• Consider the economy. When determining the best time to sell your home, season isn’t the only thing to consider. The economy is just as important. If your local economy is struggling, buyers may also be struggling, which can make it more challenging to sell.
• What condition is your home in? The best time to list your home is when it’s ready to be listed. If you want to fetch top dollar for your home, make sure it’s in good shape—and that you tackle any necessary repairs—before you put it on the market.

What’s the best time for YOU to sell your home? Let’s figure it out together. Kevin and Jennifer Hanley, REALTOR Over 1000 homes sold! The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com

2023 May Be a Great Time to Buy a Rental Property

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Buying a home, homes for sale in Jacksonville FL, investment homes, Jacksonville FL Real Estate, Jacksonville Real Estate, real estate, real estate advice, real estate information, Real Estate Team, real estate tips, rental homes, The best real estate agent in Jacksonville

A lot of prospective buyers aren’t feeling like now is a great time to buy real estate and are either hoping for a major crash, or a huge price correction. 

Only time will tell if either of those will happen to the extent some buyers are hoping for, but while they’re waiting it out, it might be the perfect time for real estate investors to get themselves a deal on a rental property.

It’s never a good time to buy real estate for everybody, and over the past few years it wasn’t ideal for investors. A seasoned real estate investor can typically find a deal, regardless of the current real estate market, but the extremely low mortgage rates caused a lot of buyer competition for the limited number of houses for sale, which made it virtually impossible for investors to buy a property at a profitable price. With rates rising and the market slowly shifting, investors will start to see more opportunities.

Here are a few reasons why it may shape up to be a great time to buy a rental property, beyond having less competition:

• Many of the people who are afraid to buy (or simply can’t buy) due to higher rates and prices, are renters who need a place to live.
• Rents have been on the rise recently, due in large part to the high demand for rentals and lack of places for rent.
• In their plan to “reset” the real estate market, The Federal Reserve has been actively trying to increase the amount of houses for sale by raising interest rates, which should give you more options to choose from.
• While many homeowners are in good financial shape, have a lot of equity in their home, and will simply stay put rather than sell in the shifting market, some homeowners will absolutely need to sell. Those who are negatively impacted by the economy—like losing a job and having a tough time making ends meet due to inflation—might have to sell their property quickly. (You might even start seeing short sales or foreclosures again.)

While there will likely be more opportunities to buy a rental property, they probably won’t be a no-brainer that just falls in your lap. Here are a few things to do and keep in mind if you want to capitalize on the shifting market:

• Have your finances lined up. Set a budget for how much you’re willing to spend on a property. If you need a loan, get pre-approved for a mortgage by a lender so you know how much you have to work with. If you’re paying cash, set a limit on how much you’re willing to part with on your first property.
• Establish what type of property you’re looking for. Investment properties come in all shapes and sizes; figure out what appeals most to you. For example, do you want a multi-family with several rental units, or would you rather have a single-family rental? 
• Figure out where you want to search. Where is your ideal location? Do you want a property in your town, or one in another area altogether? 
• Be patient, but ready to pounce. Just because a property had a price reduction, that doesn’t mean it’s below market value and a good deal. Finding properties that will produce good cash flow and return on your investment may take a little while to find, so be patient. But when you do see one that’s clearly below market value (or you can negotiate down to that point), don’t hesitate; get it before someone else scoops up the opportunity.

The Takeaway:

It hasn’t been easy for real estate investors to find a decent deal over the past few years, let alone be able to buy a property at a profitable price due to competition from other buyers. But with many buyers sidelined because of the rising mortgage rates, and some property owners negatively impacted by the economy, 2023 looks like a promising year for investors to find a rental property where the numbers make sense.

Tips for Parents That Want to Help Their Child Buy a Home

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As a parent, you want to do everything you can to give your children the best life.

And as they enter adulthood, for some parents, that includes helping them purchase their first home.

But how, exactly, do you go about helping your child purchase a home?

A recent article from realtor.com outlined tips and strategies to help parents that want to help their kids buy real estate, including:

• Give the down payment as a gift. One of the most common ways parents help their children purchase a home is by contributing to their down payment. As a parent, you have two options for helping your child with a down payment: you can loan them the money, or gift it to them. If you loan your kid the money, they’ll be on the hook for taxes. If you gift them the money (up to $16,000 per parent), the gift is considered tax-free.
• Be a co-owner with your kid… Some lenders will also allow you to buy a home with your child and set the equity however you’d like (for example, you own 60 percent, your child owns 40 percent), which dictates how much each party takes home if and when you sell the home. This can be a good option if the goal is to eventually sell the home to your child; that way, they can eventually become the full owners of the property—and you can get back your investment.
• …or buy a house on your own and rent it to your child. If your child doesn’t qualify for a mortgage (and if you have the funds to do so), you can also purchase a home on your own—and then rent it to your child. That gives them time to build up their credit and save for a down payment—and eventually, purchase a home on their own.

Need more parent tips? Give us a call! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 HanleyHomeTeam.com