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Millennial Real Estate Tips

GDW Welcome back to The Real Deal In Real Estate. Today we’re going to discuss real estate realities, especially for the millennials out there. I’m here with our Real Deal team, Josh Greene of Eastern Title and Settlement. We also have Dana Rice from Compass Real Estate, and Chong Yi of The Yi Team at Fairway Independent Mortgage Corp.

Welcome! Dana, great to have you here. Guys, welcome back. Dana, I’ll start with you. We talked about millennials. What is the trend that you’re seeing amongst this upcoming generation?

DANA  Mainly it’s been the emphasis of being close to amenities, being close to downtown vitality, and all sorts of restaurants and things. As people get older, it happens, they’re looking for more space, more closet space, maybe a yard or something. So that’s really the trend. It’s opening and expanding the net that they’re casting, in terms of what they’re interested in.

GDW  Are you seeing that millennials are more hesitant when it comes to making that big of a purchase?

DANA  Well, it is a process that is a little bit intimidating, because the rules of engagement in every market place. Right now we’re in a very hot market in DC. And as we all know, if you don’t know exactly how to engage you’re going to miss out on opportunities. In terms of being afraid, I don’t think millennials are afraid. I think they’re learning a little bit more about the process themselves.

GDW  It’s not an instant gratification kind of world in real estate, like it is in social media.

JOSH  You know a lot of millennials are transactional. Real estate really isn’t transactional, it’s relationship driven. So it really matters that your real estate agent knows the market place, the neighborhood, your loan officer. Maybe the agent knows the loan officer and knows he’s a good loan officer and is going to accept that contract, compared to this other loan officer they might not know, and the title company. So it really depends on your team and not pressing a button and saying “hey look, we just found this home. Let’s go make an offer without even talking to an agent”.

CHONG  Being a millennial myself…

GDW  Haha, Oh, yeah.

CHONG  Because I’m “at that age”, I can understand that apprehension. In some cases a lot of them grew up with their parents during the 2008 era. Some of them are scared that something like that can happen again. I look at it in terms of an investment standpoint.  People think of getting a mortgage and buying a house as adding on debt. In my opinion it’s actually gaining an asset.

GDW  I like that.

CHONG  Where else are you going to buy a home for 5%, a $500,000 property for $25,000 out of pocket? If you buy $500,000 in Apple stock you have to  have $500,000 to do so.

GDW  That’s a great way to look at it.

CHONG   You have to live somewhere and pay rent, so why not pay yourself rent?

GDW  True, that’s what my dad always said. Stop paying the other person, pay yourself.

ALL  That’s true, that’s true.

GDW  Now, when it comes to the homes that are out there that want to attract these millenial buyers, Dana, what are some ways to really get the millennials interested in these older homes?

DANA  Sure. There’s a real inventory crisis right now. There’s not a lot of inventory. Even though it’s a hot market and we’re very busy, what it’s coming down to is there just isn’t enough inventory for these buyers. That doesn’t mean that you can just put your house on the market. In terms of attracting the buyers, it’s more of a respect. The buyers are judging you as soon as they walk through the door. Everybody watches the tv shows. Everyone is thinking: did they stage? Did they clean up? Did they remove their personal photos? In terms of what’s happening and how to prepare, I would say the first thing, before you do anything, is engage with an agent. And I know because I’m an agent. But it really can matter because you can work with someone a year in advance and do small things. If you’re doing it alone you may end up doing something with your property that actually ends up harming you in the end. We have this knowledge, its free. Let us give it to you.

GDW  And you say too, when it comes to the homes. Once a home has hit online, you’re pretty much…

DANA  It’s almost too late. At this point, with all of our clients, one of the things I like to say is, you don’t even know what you don’t know yet. If you’re waiting for it to show up, or you’re sitting at lunch and you’re just scrolling through pictures, it’s over. The most important thing is recognize that in this competitive marketplace you need any sort of advantage. Time is an advantage, and information is an advantage.

GDW  And a great team is an advantage.

JOSH  And it has to be Instagram ready, Dana was telling me earlier.

DANA  Yeah, definitely check out Instagram.

GDW  It has to look good, so the buyer can see themselves living there. So, Josh, Dana, Chong, thank you guys so very much. If you’re looking for a new home, go to the www.theRealDealDMV.com, or call 240-422-8871 and get that competitive advantage.  Call now to get free advice and millennial real estate tips.

 

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GDW  The real estate market is sizzling hot right now and our Real Deal team is here to help you get ahead of the competition. I’m joined by Chong Yi of The Yi Team at Fairway Independent Mortgage Corp, Josh Greene at Eastern Title and Settlement, and Lonnie Whitehead of Powerhouse Realty. Welcome back to Great Day Washington!

JOSH  Good morning!

CHONG  Thank you!

LONNIE  Good morning!

GDW  Now the real estate market is hot right now in addition to it being summer, you have some tips on the perfect buying process so that viewers can get ahead of the home buying. Tell us about that.

CHONG  I think that everything you do in life should have a certain process. That you can do from beginning to end, figuring every step that you should do, because you need to set the right expectations to advise someone what is going to happen next. This is interesting, when I found out we were going to talk about this, I was like “wow! for once, somebody who’s actually putting it on paper. On our team we have a perfect loan process that we try to do for every single transaction. But I’ve never really heard of a realtor. Actually they probably do, but…

JOSH  I’ve never heard of a realtor having a checklist. I know we have them, but when a realtor has one?! Wow! I’m impressed.

GDW  This is great. For home buyers this is the biggest purchase they’ll ever make in their lives and you have this step-by-step process that takes the pressure off, puts them more at ease. Tell us about that.

LONNIE  What I like to do is sit down with a homebuyer first, go through this process. The process starts off the first step on that is select an agent, which hopefully will be me. And it will shows them a nice visual outlook of what’s gonna happen each step of the way from selecting your lender, because that’s important for the preapproval letter, and also letting them know they have to select a good title company that will help them close that deal.

JOSH  The other thing he was telling me was it’s color coded so each color represents something different. Like orange is money or green is money?

LONNIE  Correct.  It’s a nice visual. So when you see orange you know it’s going to come out of your pocket before settlement. One of the first questions I get is when do I have to spend money  before I go to settlement? So I show them for example the home inspection they have to pay out of pocket, termite inspection. Earnest money deposit has to go out with the offer.

GDW  This is so organized! So the homeowners can concentrate on all the wonderful things they’re going to do with their homes. So you have really laid it out for them. So this flow chart, it takes people from beginning to end Lonnie?

LONNIE  Correct.

GDW  Tell us more about this. Because when they get to the end, how are people feeling at the end of this process?

LONNIE  You know every time I go through this process that I actually got from my broker. I learned this from my broker years ago, I learned a lot from him. This process helps the transaction go so smoothly. All my clients tell me they’ve heard so many horror stories about working with realtors, and going through the process. Giving them this in the beginning, it just makes this a lot easier.

GDW  It’s the yellow brick road. And I’m sure, Josh and Chong that this is like a breeze when you have a realtor come to settlement it just makes it a lot easier.

CHONG  Can I just say, about Lonnie, who he reminds me of?

GDW  Who is that?

CHONG  One of the greatest football minds of all time, and probably one of the greatest, may he rest in peace. His name is Bill Walsh. And what they used to do, they would script out the first drive, regardless of what the defense is doing, and practice it until it’s perfection. And because of that he’s won 4-5 football championships. So I consider now, Lonnie, the Bill Walsh of real estate.

ALL  Hahaha, that is awesome.

LONNIE  I appreciate that, I appreciate that.

GDW  Well in order to win a championship, you do have to be strategic, you do have to have a plan.

 

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The details matter in metro DC real estate market, especially when prepping for your home loan. Find out how to be prepared with tips to stay competitive.

Expert advice from Chong Yi, The Yi Team at Fairway Independent Mortgage Corporation, Josh Greene of Eastern Title, Rockstar Realtor, Tori McKinney, Keller Williams Realty. This 6 minute segment of Real Deal In Real Estate aired Thursday, June 21, 2018 on Great Day Washington, WUSA9.

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Don’t Know Your Mortgage Rate? Here’s Why That’s Bad
By Aly J. Yale, Forbes.com

Most homebuyers are keenly aware of their mortgage rate—at least at the outset. But it seems that awareness wanes once they get settled in. In fact, according to a recent study by Bankrate, a whopping 29% of homeowners don’t know their current mortgage rate.

It’s a mistake that experts say could have serious repercussions. From thousands more paid in interest to missed payments and lost financial opportunities, the costs of not knowing your rate can be big.

Don’t know your mortgage rate? According to industry experts, here’s what could happen.

You might be paying off the wrong debts.
“It is important for homeowners to know their mortgage rate so they can compare it to the interest rates on their other debt like student loans, car loans or credit card debt. This can help them prioritize which to pay off first.

People are often tempted to use any extra dollars they have to pay down their home mortgage before other debt sources because it is the largest. But considering home mortgage rates are usually lower than interest rates on other forms of debt, this could be a mistake, as they are likely accruing interest at higher rates on their other debts and should prioritize paying those off first.” -Paul Ruedi, Ruedi Wealth Management

Your loan may take longer to pay off.
“Understanding your mortgage is key to having a plan in place to reach your goal for that property. When you know your interest rate and monthly payment, you’re in a better position to pay off the loan sooner should you choose to make additional principal payments.” -Stephen Rischall, 1080 Financial Group

You might miss a chance to refinance.
“It’s important to know your mortgage rate so that you can compare it to current mortgage rates to evaluate whether you may want to consider refinancing your mortgage. This is especially important with adjustable-rate mortgages because if your interest rate is increasing as interest rates continue to rise, you may need to make a decision to refinance to a fixed rate. The higher interest rates go, the higher your variable rate mortgage is going to go and the more money it will cost you.” -Ed Snyder, Oaktree Financial Advisors

“Over time, mortgage rates fluctuate within an economic driven market. A smart borrower will understand that their mortgage is a fluid investment, so as rates change the mortgage may need to be restructured.” -Chong Yi, The Yi Team at Fairway Independent Mortgage

You might not know where you’re money’s going.
“All too often everything mortgage is grouped together in the consumer’s eyes. This means that not knowing your mortgage rate is correlated with not knowing what type of mortgage you have. This can be a huge problem.

Also, because a house payment often feeds an escrow account that pays insurance and property taxes, not just a mortgage, it is easy to lose track of what expenses you are paying. The recent Wells Fargo scandals point to an ever-increasing need for customers to monitor their accounts.” -Matthew Ure, Anthony Capital

Your payment could be changing, and you won’t be prepared.
“It is especially important to know your interest rate if you have an adjustable rate mortgage. After the fixed period of term and rate, your rate will float and you will want to know the maximum it can adjust each year. You don’t want to be unaware of a large spike in the monthly payment, especially if your budget is tight.” -Clint Walkner, Walkner Condon Financial Advisors

You might miss a payment.
“It is especially important for people to watch their rate if they have an adjustable-rate loan because, in a rising interest rate environment, like the one we are in now, it could potentially cause them to miss a payment, because the overall monthly payment has increased to a level too high to be sustainable.” -Ted Snow, Snow Financial Group

Only One Piece of the Puzzle
Ultimately, homeowners should know more than just their rate if they want to come out on top.

As Yi puts it, “Your mortgage is a long-term investment. Keep sight of your long-term goals. Are children in your future? College tuition? Are you staying in the house for a few years or a few decades? What are your retirement plans?”

Homeowners should consider these goals—as well as their rate—when structuring their initial mortgage loan and again as they work to repay it or refinance it.

Full article at Forbes.com »

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By Kristin Messerli

The majority of homebuyers, especially Millennials, do extensive research online and on their mobile devices before making any purchase — especially for something as large as a home. According to the National Association of Realtors, 89% of new home shoppers use a mobile search engine at the onset and throughout their research.

While many lenders are jumping on the trend to incorporate new and better technology into their customer experience, they are often ignoring the key reasons why the technology is important and therefore missing the mark in implementation.

While many assume mobile technology is all about efficiency, it’s also about building a relationship. Millennials (and all buyers) hope to deepen connections with their mortgage advisors and improve their knowledge about their purchase through the use of mobile apps and technology-based communication.
Here are five reasons why mobile technology should be key to every lender’s strategy:

1. Buyers want personalization.
As an industry-leading study by PricewaterhouseCoopers (PwC) points out, personalization is the most important influencer of customers having a positive interaction with loan officers (42%), with strong communication (26%) and knowledgeable (18%) being important aspects of their experience. Personalization during the buying process means engaging with customers in preferred ways (i.e. digitally) and by reaching out and making the customer feel special (closing gifts, cards).

In an interview with Kelly Zitlow, a branch manager at Cherry Creek Mortgage, she states “[females] in particular like to have accessible information that is responsive and can be communicated in different ways…” Understanding how to personalize to your audience is important to establishing trust. Often, that personalization can occur efficiently and effectively through the use of technology or simply communicating digitally in the formats your customers prefer. Loan officers should be aware of how they can best communicate their message in a way that connects personally with their customers.

2. Buyers want relationship.
PwC summarized the engagement needs during various touchpoints in the buying process well, noting that all customers “want the convenience of digital at different stages, but when complexities arise, they want someone by their side.” Loan officers should remind themselves that their customers will remember the people they work with during the buying process, and the personal connections they build, much more so than any rate or mortgage product.

Ultimately, people do business with people. Despite the false narrative that Millennials only want technology, lenders will remain competitive over the next few years if they focus on strategies to build and sustain long-term relationships with today’s young and diverse buyers. Consumers want technology to enhance the relationship and improve the communication experience, not to get rid of either.

For example, in an interview with Sean Herrero from Commerce Home Mortgage, he states that he uses video to improve his relationships and build trust with borrowers. He was hesitant like most to begin using video, as it can be difficult to watch yourself on-screen, but he explains that it’s well worth the effort. Borrowers want to feel good about who they are working with — whether that is an individual or a brand. Getting personal and authentic is key to winning business with young buyers. Using video not only engages your audience, but Herrero shares “people can connect with who I am.” (Full interview here)

3. Buyers want education.
Millennial consumers are heavy researchers, and they expect their loan officers to be their guides through the purchasing process. PwC identified that customers “expect mortgage education (through webcasts, in-person events, and the lender website) to be a part of their experience.” Lenders can better utilize technology, social media, and various vendor solutions to leverage their expertise to build a strong reputation and bring in leads.

Top producer Chong Yi, of Apex Home Loans, focuses his borrower experience and brand on financial literacy. He says that many people, especially Millennials and diverse segments, view debt as a bad thing, but Yi views his role as their advisor to help his customers understand and evaluate the investment. Loan officers would benefit greatly from focusing their marketing and branding efforts around building a reputation as a trusted advisor.

4. Buyers want transparency and options.
Today’s borrowers want to make informed and empowered decisions. According to an HBR article, the key to gaining a sale in today’s marketplace is making decisions simple and helping buyers “confidently navigate the purchase journey.” Buyers want to easily navigate and understand information about the company or product, they want to know whether or not they can trust the information, and lastly, they want to easily weigh their options.

Top producer Dan Keller follows this exact formula for success with his clients. In an interview with Dave Savage. Keller explains how he walks his prospects through a simple and consistent path to understanding the mortgage process and their options every time. First, he has an educational blog where he hosts a simple packet of information that serves as a guide through the process and their work with him, including where he sources his information/expertise. Secondly, he builds trust through education and third-party reviews. Keller states that 27% of his business last year came from his blog and Yelp. Finally, when he meets with his customers, they trust his data when he explains their options through a total cost analysis.

5. Buyers want convenience.
Simply put, buyers are shopping on their mobile devices and want their lenders to be there too. According to PwC, 49% of customers are curious about how mobile apps can assist them in streamlining the mortgage process, and three out of five would like their lender to offer a mobile app. Lenders have an opportunity to leverage technology to improve efficiency, convenience and customer service for consumers. As an added benefit to lenders, mobile technology and communication improves productivity significantly, often saving time and resources.

We recently released the industry’s first comprehensive report of all the top mobile apps for homebuyers at every stage of the purchasing process, so that lenders can know how to communicate with buyers using leading apps and make strong recommendations for improving the consumer experience through mobile technology (from finding the right home to making smart financial decisions). Download the free report here.

In an interview with Rick Sharga, chief marketing officer of Ten-X, formerly auction.com, he shares his perspective on companies who are successful in today’s environment, stating “[Millennials] would like to do a transaction any time they’d like, anywhere they happen to be, on any computing device they happen to prefer… Companies who successfully service this audience in the future will have to enable Millennials to get to your products and services online, on-demand.”

Full article at HousingWire.com » Mobile Tech for Millennials

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