A First-Time Homebuyer's Story and Why You're My Favorite Clients

 

As a newly promoted 23-year old soldier stationed at Ft Belvoir, Virginia, I was excited to take advantage of two amazing military benefits: BAH: Basic Allowance for Housing allowing me to move out of the barracks and off-post (yay!), and 100% VA Loan, no down payment required, to buy my own house (yay! again).

I had already spent a year or so exploring the area and knew exactly where I wanted to live. Kismet showed up on cue with a For Sale sign on the cutest one-bedroom cottage, with a white picket fence, in my price range, located in a quaint little town - literally over the river and through the woods. Yes, it really looked like this photo! I contacted the listing agent, who wrote and presented my offer, which the Seller accepted. Yay! #3. 

While under contract, the Northern Virginia real estate market took a hard left and prices went through the roof. Kismet krashed when I received a call from "my/not my" agent notifying me that the Seller was cancelling our contract and selling the home to someone else for much more. I was heartbroken. It wasn't until I shared my story with JAG that I realized just how naïve, and unrepresented, I was. 

It took another year to get over the sting of losing out on my dream home. I committed to being more prepared the next time and decided that the best way to be an educated homebuyer was to go to real estate school myself - not for the license, but for the knowledge. Which I did and subsequently purchased my first home.

Fast forward ten years ... 

A series of post-military corporate moves brought me to Utah, and soon afterward I took advantage of the opportunity to become a REALTOR®. Most agents will tell you that their favorite clients are sellers. Because of my first real estate experience, mine will forever be first-time homebuyers. I will always honor their trust in me.

Kim Novak, Broker/Owner, Novak Advantage Real Estate (801) 726-1443

ABR: Accredited Buyer Representative, RENE: Real Estate Negotiation Expert

HUD Homes: Reverse Mortgage Foreclosures Offer Buyers Opportunities

2009 + (78 - 62) = 2025

Prediction: We'll see a growing trend of HUD Home opportunities for Buyers over the next 5+ years that are the result of Reverse Mortgage foreclosure. Aging is a natural process that occurs independently of real estate market conditions. According to NRMLA: National Reverse Mortgage Lenders Association statistics, the height of Reverse Mortgage loan originations, since tracking began in 1990, was in 2009. With life expectancy in the US at 78.6 years, 2025 may be the mid-point of a 10-year trend already underway. But don't think this is all doom-and-gloom. Reverse Mortgage foreclosure can result from other factors such as the home no longer being used as the borrower's principal residence, failure to occupy the home for 12 consecutive months because of illness (think "going to a nursing home"), or not meeting mortgage obligations such as keeping property taxes paid current, maintaining homeowners insurance and continuing upkeep of the home.

Reverse Mortgages are officially known as HECM: Home Equity Conversion Mortgages and are generally available to persons aged 62+ who own their home free & clear or have a significant amount of equity. The vast majority are insured FHA Loans. When an FHA Loan is foreclosed, it becomes a HUD Home owned by the US Government and is listed for sale by a REALTOR® on the MLS: Multiple Listing Service.

During the past few months, I've twice crossed paths professionally with Reverse Mortgage situations. First, with a family trying to determine if it made sense to purchase the property themselves under the discounted provisions afforded only to heirs, and, most recently, representing a Buyer make an offer on a HUD Home that resulted from a Reverse Mortgage foreclosure. Looking forward to 2020 and beyond, Reverse Mortgage foreclosures will offer viable new home purchase opportunities for savvy homebuyers.

Kim Novak is an SFR: Short Sale & Foreclosure Resource and Registered HUD Broker NAID# NVKSLS0536. She has represented Buyers, Sellers, and VA & REO Bank-Owned Properties throughout her 24-year career.

First-Time Homebuyers: New Construction as a Solution to Inventory Shortage Woes

Patience.

A little can go a long way for a first-time home buyer win in our ultra-competitive, seller's market. If you're in to month #4 of house hunting, your new home would be 1/2 way to completion by now ... at a set price that hasn't increased in tandem with our appreciating market, enjoying an experience that virtually eliminates multiple-offer bidding wars. New construction is an opportunity for you to win in today's real estate market - a brand new home with built-in equity.

Don't let anyone tell you that there aren't affordable options. Don't let anyone tell you they won't work with your agent. Don't let anyone tell you that you'll save money if you buy directly from the builder, without representation. And don't limit your options by going it alone.

Choosing the right REALTOR® as your guide is an important first step to success; a qualified and experienced professional who will be your advocate in navigating all of the new communities, price-points & floor plans, financing options & incentives, warranties & reputation, and translating new construction contracts & builder-ese.

It's All About the Benefits (to you). I offer my clients a comprehensive new home guidebook, which includes a new home communities tour and a builder-match featuring one-to-one meetings with the builders' sales reps. One of the most valuable benefits this affords my clients is that I often know about new home communities and "spec" homes that are almost at completion before they are even made public or listed in the MLS: Multiple Listing Service. Another win for you.

Let's go have fun with this!

Kim Novak is a CSP: Certified New Home Sales Professional and ABR: Accredited Buyer Representative. She has worked cooperatively with Utah Builders and their Sales Teams since 1995, professionally representing her Homebuyer Clients Finding Home in Utah.