Tuesday, September 3, 2019

Avoid These 3 Deal-Killing Errors

Beware these three deal killers both before and during the home selling process.
Recently, I spoke with someone from one of our local title companies. During our conversation, he said something that was pretty eye-opening: 15% to 18% of home sales collapse after going under contract.

To put that into perspective, that means that out of 100 deals, somewhere between 15 and 18 of them will fall apart. To prevent your deal from suffering the same fate, today I’ll list three “deal-killers” that you should avoid.

The first deal-killer on the list is not working with an experienced agent. Certain factors make our Lake Ridge market challenging and unique, and agents who are still new to the business suffer from inexperience that makes it difficult for them to successfully navigate through challenges that arise. It’s best to work with an agent or team that has years of experience and plenty of sales volume under their belts like the Allen Johnson Team.

  15% to 18% of home sales collapse after going under contract.

Other sellers make mistakes related to timing, preparing, pricing, and relationships
•Timing. Presenting news to your buyer and their agent and negotiating in a timely way are essential to the success of your sale.  
• Prep. Make sure you’re crossing your t’s and dotting your i’s ahead of each stage in the selling process. That means making preparations before you list your home, making sure inspections are complete, and making sure you reach the settlement table.
• Pricing. Your pricing strategy can either make or break your sale. If you price correctly from the start, challenges that may arise will be much easier to address. 
• Relationships. I can’t tell you how many times we’ve been able to salvage a deal based on a strong relationship we had with the agent on the other side. When agents collaborate well together, deals get done. It’s that simple.

The last deal killer is sort of a combination of the first two. To illustrate my point, let me share a quick story. We listed a home in Westridge that contained poly pipes, which is normal for certain homes in this area. The buyer’s agent was actually from Alexandria and was totally unfamiliar with poly pipes. 

As a result, they wrongly informed the buyer that replacing the pipes would cost anywhere from $10,000 to $15,000. In reality, we got them replaced for closer to $5,000, which made all the difference in keeping the deal alive. 

If you have any questions or you’re thinking about selling your Lake Ridge home, please give us a call. We’d love to sit down and speak with you!

Is Refinancing a Smart Move for You?

Are you considering refinancing your mortgage? Here are a few things you’ll need to take into account first.
We’ve been getting a bunch of questions recently about refinancing and whether it’s a smart move in our current market. Here are a few things you should think about if you’re experiencing the same dilemma.

For starters, if you’re going to consolidate some type of high-interest debt, refinancing makes a lot of sense because you can lock that debt into a much lower interest rate. That can save you a ton of money.

If you are currently in an adjustable-rate mortgage and it’s about to expire over the next year or two, it might be a good idea to refinance to a fixed rate before that adjustable rate skyrockets.

Another thing you’ll need to think about is the terms of your loan. Let’s say that you’ve been paying your mortgage down for the next seven years and you go to refinance. Typically, if you go to refinance for another 30 years, you’re basically extending the life that you’re paying for your loan by another seven years. For some people, that is advantageous and for others it’s not. You have to think about where you are in your life.

   Now is a great time to refinance, pull out your equity, and make another investment.

For example, we had a client who needed more cash flow from their property because they had a child going to college. They decided to extend their mortgage out so they could keep more of their cash and use those funds for college. Don’t just think about terms on one side. Think about them in the totality of where your life is and where you should have your cash.

If you’re a real estate investor, right now is a great time for you to take out a home equity line of credit, refinance, and pull out money to buy another investment property.

These are just a few of the things you’ll need to think about when refinancing. If you have any questions for me about the process or what you should do in your situation, don’t hesitate to give me a call or send me an email. If you have a rate over 4.5%, we should be talking. I hope to hear from you soon.

Thursday, August 29, 2019

Heard the latest and greatest AJ Team news?!?

Today I wanted to check in and let you all know what’s been going on lately with our team.
The AJ Team has been working really hard lately, so today I’ll update you on what we’ve been doing.

Every morning at 8 a.m., our team participates in a devotional where we pray over our past and current clients, our community, other agents, as well as anyone else who might benefit from being held up in prayer. We often have clients reach out to us to pray for them, and we just wanted to let you all know that you don’t have to be afraid to do the same. Sometimes handling life on your own can be hard; let the prayer warriors in your life help you.

Also, for the past three years, we’ve helped to fund the mentoring program at our local Title 1 school, and we’re going to continue to grow. Lately, we’ve been seeking out additional mentors to add to the program, so if you know of anyone interested in donating to the cause or being a once-a-week tutor, mentor, or life-skills coach, reach out to us. Children will one day become great resources, so we appreciate any and all of your contributions.

We’re excited to announce that the AJ Team won The Prince William County Best of Residential Agents Award.

Next, we’re excited to announce that the AJ Team won The Prince William County Best of Residential Agents Award. We thank all of you who have supported us and helped us grow. Even though we’re not perfect, we aim only to improve every day.

Finally, we’ve sold 106 homes to date, and our goal is to get to 200 homes sold. If you know of anyone who is in need of real estate services, whether they’re buying or selling, we’d love to talk to them. 

For any other questions or comments you may have, don’t hesitate to reach out to us. We hope to see you soon!