By Rachel Stults
Aug 1, 2022

It’s a slow Sunday morning. You’ve just brewed your Nespresso and popped open your laptop to check out the latest home listings before you hit the road for a day of open houses.

You’re DIYing this real estate thing, and you think you’re doing pretty well—after all, any info you might need is at your fingertips online, right? That and your own sterling judgment.

Oh, dear home buyer (or seller!)—we know you can do it on your own. But you really, really shouldn’t. This is likely the biggest financial decision of your entire life, and you need a Realtor® if you want to do it right. Here’s why.

1. They have the right expertise
Want to check the MLS for a 4B/2B with an EIK and a W/D? Real estate has its own language, full of acronyms and semi-arcane jargon, and your Realtor is trained to speak that language fluently.

Plus, buying or selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. Realtors have the expertise to help you prepare a killer deal—while avoiding delays or costly mistakes that can seriously mess you up.

2. They have turbocharged searching power
The Internet is awesome. You can find almost anything—anything! And with online real estate listing sites such as yours truly, you can find up-to-date home listings on your own, any time you want. But guess what? Realtors have access to even more listings. Sometimes properties are available but not actively advertised. A Realtor can help you find those hidden gems.

Plus, a good local Realtor is going to know the search area way better than you ever could. Have your eye on a particular neighborhood, but it’s just out of your price range? Your Realtor is equipped to know the ins and outs of every neighborhood, so she can direct you toward a home in your price range that you may have overlooked.
3. They have bullish negotiating chops
Any time you buy or sell a home, you’re going to encounter negotiations—and as today’s housing market heats up, those negotiations are more likely than ever to get a little heated.

You can expect lots of competition, cutthroat tactics, all-cash offers, and bidding wars. Don’t you want a savvy and professional negotiator on your side to seal the best deal for you?

And it’s not just about how much money you end up spending or netting. A Realtor will help draw up a purchase agreement that allows enough time for inspections, contingencies, and anything else that’s crucial to your particular needs.

4. They’re connected to everyone
Realtors might not know everything, but they make it their mission to know just about everyone who can possibly help in the process of buying or selling a home. Mortgage brokers, real estate attorneys, home inspectors, home stagers, interior designers—the list goes on—and they’re all in your Realtor’s network. Use them.

5. They adhere to a strict code of ethics
Not every real estate agent is a Realtor, who is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country.

What difference does it make? Realtors are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics.

6. They’re your sage parent/data analyst/therapist—all rolled into one
The thing about Realtors: They wear a lot of different hats. Sure, they’re salespeople, but they actually do a whole heck of a lot to earn their commission. They’re constantly driving around, checking out listings for you. They spend their own money on marketing your home (if you’re selling). They’re researching comps to make sure you’re getting the best deal.

And, of course, they’re working for you at nearly all hours of the day and night—whether you need more info on a home or just someone to talk to in order to feel at ease with the offer you just put in. This is the biggest financial (and possibly emotional) decision of your life, and guiding you through it isn’t a responsibility Realtors take lightly.

Unmarried Americans Would Prefer to Invest in a Home, According to Coldwell Banker Survey

Latest Coldwell Banker survey gauges home buyer and seller sentiments heading into 2022
ATHENA SNOW
NOV 17, 2021

MADISON, N.J. (November 17, 2021) – Americans pressed pause on many milestones in 2020, but in 2021 they reignited plans to buy and sell homes. The real estate market is strong according to the National Association of Realtors® and homeownership is top of mind for Americans. In fact, 82% of unmarried Americans would rather invest in a home than pay for a big expensive wedding, according to the latest survey from Coldwell Banker Real Estate LLC, a Realogy (NYSE: RLGY) company.

Conducted online by The Harris Poll among over 2,000 U.S. adults, the survey reveals what’s on home buyers’ and sellers’ minds as we close out a strong year for real estate in a market marked by tight inventory. A sellers’ market still prevails and competition remains strong across many cities, especially as younger Americans enter the real estate market and various demographics set their sights on homeownership.

Who’s Got Real Estate on their Mind?

Gen Z & Millennials are moving on up: Younger Americans surveyed (age 18-44) are more likely to say owning a home is an important financial goal for them (45%) compared to those 55+ (30%).
Goodbye renting, hello homeownership: 47% of Respondents who are renters say “owning a home” is an important financial goal for them.
Hispanic homeownership desire is high: 42% of Americans surveyed who self-identified as Hispanic say “owning a home” is an important financial goal, and among Hispanics this is higher than any other financial goal.
As many Americans experienced life in 2020 without big vacations or weddings, Coldwell Banker Real Estate set out to discover what goals Americans would prioritize. Overall, Americans are still thinking of homeownership, indicating that they would rather allocate money to achieving those dreams than investing in other personal milestones such as big weddings, vacations or even paying off their student debt.

What Would They Be Willing to Trade for a Home?

Home is the new engagement ring: 82% of unmarried Americans surveyed, including 85% of females who aren’t married, would rather invest in a home than pay for a big expensive wedding.
Staycation: Over three quarters of Respondents (77%) would rather invest in a home than spend money on an expensive vacation.
Save student debt for later: College graduates are more likely to select “owning a home” (41%) as an important financial goal than “paying off student debt” (17%).
Amid this tight housing market – and with so many Americans invested in finding the perfect home to fit their lifestyle – Coldwell Banker affiliated agents serve as trusted advisors, guiding people home since 1906.

QUOTES:

“The 2021 housing market has been marked by low inventory and competition as Americans continue to keep homeownership top of mind. Our latest survey suggests that, with generations of all ages and backgrounds prioritizing homeownership over other financial goals, this sellers’ market may continue into 2022. Our network of approximately 100,000 agents is ready to help home sellers take the next step.”M. Ryan Gorman, president and CEO, Coldwell Banker Real Estate LLC
“Coldwell Banker’s survey found that homeownership is a primary financial goal for 47 percent of Americans surveyed who identify as Hispanic. The U.S. Hispanic population reached more than 62 million in 2020, growing significantly in the past decade, according to the Pew Research Center. The affiliated agents at Coldwell Banker recognize this incredible potential for increasing homeownership, and they’re equipped to help this population looking for a home navigate the complexities of a tight housing market.”

Ricardo Rodriguez, Coldwell Banker Global Luxury Ambassador, Boston, Mass.

Survey Methodology

This survey was conducted online within the United States by The Harris Poll on behalf of Coldwell Banker from October 21 – 25, 2021 among 2,027 adults ages 18 and older. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact dgorecki@gscommunications.com.

About Coldwell Banker Real Estate LLC

Powered by its network of over 99,000 affiliated sales professionals in approximately 2,200 offices across 40 countries and territories, the Coldwell Banker® organization is a leading provider of full-service residential and commercial real estate brokerage services. The Coldwell Banker brand prides itself on its history of expertise, honesty and an empowering culture of excellence since its beginnings in 1906. Coldwell Banker Real Estate is committed to providing its network of sales professionals with the tools and insights needed to excel in today’s marketplace and is known for its bold leadership and dedication to driving the industry forward. The brand was named among the 2021 Women’s Choice Award® Most Recommended brands for customer experience and overall quality. Blue is bold and the integrity and values of Coldwell Banker give the Gen Blue network an unbeatable edge. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each office is independently owned and operated. To join Coldwell Banker Real Estate and unlock the possibilities of Gen Blue®, please visit www.coldwellbanker.com/join.

About Realogy Holdings Corp.

Realogy Holdings Corp. (NYSE: RLGY) is moving the real estate industry to what’s next. As the leading and most integrated provider of U.S. residential real estate services encompassing franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture, Realogy supported approximately 1.4 million home transactions in 2020. The company’s diverse brand portfolio includes some of the most recognized names in real estate: Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, and Sotheby’s International Realty®. Using innovative technology, data and marketing products, high-quality lead generation programs, and best-in-class learning and support services, Realogy fuels the productivity of its approximately 196,600 independent sales agents in the U.S. and approximately 140,800 independent sales agents in 117 other countries and territories, helping them build stronger businesses and best serve today’s consumers. Recognized for ten consecutive years as one of the World’s Most Ethical Companies, Realogy has also been designated a Great Place to Work four years in a row, named one of LinkedIn’s 2021 Top Companies in the U.S., and honored on the Forbes list of World’s Best Employers 2021.

If you bought a home with a down payment that is less than 20% of the purchase price, or if you refinanced with less than 20% equity, your lender will require you to purchase mortgage insurance.

It’s important to note that not all loan programs will offer the same terms. That’s why it’s smart to contact your agent when looking to find the right loan for you. A savvy agent can help you navigate the often confusing world of finance as they work with a wide range of professionals who can help.

Is There Only One Kind of Mortgage Insurance?

All mortgage insurance serves the same purpose-to protect your lender should you default on your mortgage. However, different loan types use different terminology for mortgage insurance.

– FHA – MIP (mortgage insurance premium)
– VA – no mortgage insurance required
– Conventional – PMI (private mortgage insurance)
– USDA – MI (mortgage insurance)

How Much Is It?

Your premium is determined by the lender and will depend on two things: your loan to value ratio and your credit score. So for example, someone with a credit score below 700 who puts down only 5%, will pay a higher premium than someone with a credit score of 760 who puts down 15%.

Conventional loans: 0.20% to 1.50%

FHA loans : Upfront premium often added to loan amount has two payments. 1.75% of loan amount + annual premium (paid monthly) 0.7% to 1.3%

USDA loans : Upfront premium of 2.75%, based on loan size, added to loan balance + .50% annual fee based on remaining principal balance

How Do I Pay It?

There are several options you have to pay mortgage insurance.

Monthly. This is the most common type of mortgage insurance payment. The premium will be calculated into your monthly payment. The lender will then pay the premium annually on your behalf. So for example, let’s say you’re purchasing a $200,000 home and have put down 10%. The PMI at a 1% rate would be $1,800 per year, $150 monthly.

One-time payment. If you prefer to keep your monthly payments as low as you can a single payment might be the way to go. Typically, this kind of premium will range from 1% to 2% of the loan amount, so taking the same example above, you would be paying anywhere from $1,800 to $3,600 at the time of closing to cover your mortgage insurance premiums. The lender might also let you roll the premium into your loan so that it will be financed over the life of the loan rather than annually.

Lender paid premium. Some lenders will pay the mortgage insurance if you agree to pay a higher interest rate. This keeps your monthly payments lower than if you had to pay a monthly PMI premium, however keep in mind that you will be paying this higher interest rate until you either refinance or pay off the loan.

How Do I Get Rid of PMI?

For conventional loans you must have at least 20% equity in the home. When you have paid the mortgage balance down to 80% of the home’s original appraised value, you can ask your lender to drop the mortgage insurance.

When your loan balance drops to 78% the mortgage servicer is required to eliminate the mortgage insurance.

FHA loans, however are dealt with differently.

For FHA loans with MIP (mortgage insurance premium) that originated before June, 2013, mortgage insurance cancels when the loan to value gets to 78% and 5 years have passed since the loan was created. FHA loans taken out after this date will pay mortgage insurance for as long as the loan is in place.

So as you can see, in some cases the best way to get out of paying mortgage insurance on an FHA loan is to simply refinance. USDA loans also have mortgage insurance for the life of the loan, so to get rid of mortgage insurance you would need to refinance.

Can I Get Out of PMI Early?

Get a new appraisal. Some lenders will consider a new appraisal instead of the one acquired at the time of purchase. If they agree with the appraisal – which typically costs from $300 to $500 – they might agree that you meet the 20% equity threshold and drop the PMI.

Make loan prepayments. Paying something as small as an extra $50 per month can drop your loan balance dramatically. There are a number of repayment calculators available online to help you find the best way to pay your loan down faster.

Remodel. Increase your home’s value by making improvements to your home. Not every change to your home will increase its value. Consult an agent about those changes you can make to your home before you get started.

How Do I Calculate My Equity?

Simply divide your current loan balance (how much you still owe) by the original appraised value (typically the same as the purchase price).

For example, let’s say you purchased a home for $250,000 dollars and have paid the mortgage down until it has a balance of $190,000. Your PMI should have been canceled by now, because you’re at less than 78% of original value.

Are There Any Other Requirements to Cancel?

Yes. You should request PMI cancellation in writing. You must be current on your payments and have a good payment history. You may be required to prove there are no other liens against the property. You might be required to get an appraisal to prove that the loan isn’t more than 80% of the home’s current value.

What if my Lender Doesn’t Agree to Drop It?

If your home has increased enough in value, you can refinance without paying mortgage insurance. Calculate the costs of refinancing to be sure it doesn’t cost more than if you were to simply keep paying the mortgage insurance.

Get more information on the home buying process by visiting https://www.coldwellbankerhomes.com/fl/boynton-beach/agent/saby-hedeman/aid_257335/

RE Q&A: Is It OK to Self-Insure Our House?

As property insurance grows more expensive, homeowners study other options. If an owner has paid off the mortgage, is self-insurance an option?

Question: We own our home outright, without a mortgage. Because of the insurance crisis, what is the feasibility of self-insuring our house rather than renewing our policy at an ever-higher cost? –Thomas

Answer: Under certain circumstances, it is feasible to go without homeowner’s casualty insurance. Even still, it is rarely, if ever, a good idea or a sound financial policy.

Banks and other mortgage lenders are good at making money and protecting their investments.

I often look at what mortgage lenders require of their customers to gauge the risk of a proposed action. For example, when asked whether a homeowner needs title insurance when purchasing a home, I respond that although they are not required by law to have this valuable coverage, every lender I have dealt with requires title insurance when lending money.

If a bank thinks it is necessary to protect their investment in your asset, you should afford yourself the same protection. Lenders also require their borrowers to have a casualty insurance policy for many of the same reasons.

Most people think of insurance as covering the small events – a fender bender, prescription drugs or a leaking water heater. While this is important, minor claims rarely exceed the cost of the policy, especially when considering the deductible.

When insurance shines is when the rare severe event happens. Not having health insurance and developing a serious health condition bankrupts many people. A dented fender is easy enough to live with, but replacing a totaled car can cost decades of car insurance premiums.

Similarly, if your house suffers a significant casualty – for example, a lost roof and flooding from severe weather, a fire, or even a guest hurting themselves on your lawn – the costs to the homeowner can be more than a lifetime of insurance premiums.

While no one enjoys paying their insurance bills, especially when they seem to increase every year, it still makes sense to grit your teeth and write a check.

Copyright © South Florida Sun Sentinel, Gary M. Singer. All rights reserved.

RE Q&A: Can Live-In Girlfriend Claim Ownership?

A homeowner paid off his condo and may ask his girlfriend to move in. If he does, can she claim partial ownership at some point in time?

Question: I own a condominium apartment and have paid off the mortgage. I am romantically involved but not married, and we are considering having her move in with me. How long after she moves in can she claim she wants half my home if we break up? – Roy

Answer: Because you owned your condo unit outright before you moved her in, she likely cannot claim even partial ownership if you break up.

At worst, if she financially assisted with renovations that raised the property value, she might have a claim to part of the increase in value of the property because of the work she helped pay for.

Had you bought the apartment together and she helped pay for the property and mortgage payments, but the title was only in your name, she could have a claim on part of the equity in your apartment.

While it is doubtful that your live-in girlfriend can gain ownership rights in your property, she can gain other rights in the apartment. You cannot just throw her out. You will need to sue and wait until a judge orders her out.

You will need to evict her if she has been paying rent through a lease.

But if she has not, you will need to sue for “unlawful detainer.” This type of lawsuit is used to remove people who formerly had permission to live in your property. Besides your situation, examples include adult children who fail to launch and overstay their welcome in their childhood bedroom, or when a college friend stays “just a few nights” on your couch and then refuses to leave.

If your girlfriend pays rent to live there, you should have a written lease.

Otherwise, a written cohabitation agreement is a great idea. This agreement helps work out the details of living together and what happens if your relationship sours. Think of it as a prenuptial agreement for unmarried people living together.

This question was asked by a reader who lives in Florida, which does not recognize “common-law” marriage. The answer to this question can vary depending on where you live.

Before moving in together, check the rules for your state.

Copyright © South Florida Sun Sentinel, Gary M. Singer. All rights reserved.