Real Estate Resources – Artisan Sotheby's International Realty

Choosing the right realtor: questions to ask before you hire

A knowledgeable and experienced realtor can make a significant difference in your overall experience. To ensure you find the best fit for your real estate needs, here are some questions to ask potential realtors before hiring one.

1. What’s your experience in the local market?

Ask about their years in the business and how many transactions they’ve completed, especially in your target neighborhood.

Experience in your specific market can be a valuable asset.

2. What’s your business philosophy?

While there’s no right or wrong answer to this question, the response will help you assess what’s important to the agent and determine how closely the agent’s goals match yours.

3. Are you a full-time realtor?

Some realtors work part-time or have other commitments.

While this doesn’t necessarily disqualify them, you would want to know how accessible and dedicated they will be during your real estate transaction.

4. What’s your marketing strategy for sellers?

Ask about how they plan to market your property, including online listings, open houses, and any unique tactics they may use to attract potential buyers.

5. How will you help me find the right property as a buyer?

For buyers, know how the realtor plans to help you find the right property.

Ask about their approach to searching for homes, scheduling viewings, and negotiating offers on your behalf.

6. Can you explain the process step-by-step?

A good realtor should be able to explain the buying or selling process in detail.

They should walk you through each step, from the initial consultation to closing, and answer any questions.

7. How will you keep me informed about the progress of my transaction?

The best answer here is a question. A realtor who pays close attention to the way you prefer to communicate and responds accordingly will make for the smoothest transaction.

8. What’s your approach to negotiation?

Negotiation skills are essential in real estate. Inquire about the realtor’s approach to negotiation and their track record in securing favorable deals for their clients.

9. Do you have any designations or certifications?

Real estate professionals have to undergo additional specialized training to obtain these distinctions.

Designations and certifications help define the skills that an agent can apply to your particular real estate needs.

10. What sets you apart from other realtors?

This question can help you understand the realtor’s unique strengths and value proposition.

Look for qualities and services that align with your specific needs.

In conclusion,

Choosing the right realtor is a significant decision that can impact the success of your real estate transaction.

By asking these questions, you can make an informed choice and work with a realtor who is best equipped, like Randy and me, to help you achieve your goals.

Artisan Sotheby's Real Estate Office — 6984 McKinley St, Sebastopol, CA 95472

Additionally, we not only have the knowledge that comes with being a professional realtor and are highly adept at negotiating the best terms on behalf of our clients, but we also have a keen sense of neighborhoods, homes, and the people we are working with.

Also, unique homes require skillful marketing, through our local expertise and Sotheby’s International Realty’s interconnected global network of offices that are dedicated to the extraordinary.

Finally, we strive to provide the highest level of service and build lasting relationships with our clients. Randy and I can be there by your side, protecting the interests that you trust. Call us!

Navigating the Closing Process: A Guide for Homebuyers

The closing process is the final step in a real estate transaction. Although this process seems overwhelming, it can be a smooth experience with proper planning.

If you plan to purchase a property, we are here to provide insights about this process.

Closing Process Timeline

You may expect to close 30 to 45 days after the contract is signed. However, this timeframe can vary depending on different circumstances, such as mortgage approval and the complexity of the transaction.

The Escrow Process

You are officially in escrow once both parties have signed the purchase agreement. Escrow refers to a financial arrangement in which a third party, the escrow agent, holds the deposited earnest money.

The escrow process typically involves the following:

Opening the escrow account
Completing the inspection and repair requests
Mortgage application and underwriting
Appraisal
Acquiring homeowners insurance and title insurance
Loan approval
Final walk-through
Closing appointment

Is Earnest Money Refundable?

NAR, Earnest Money & Escrow Real Estate: There are several scenarios when a buyer could face forfeiting their earnest money. If a buyer waives contingencies, ignores timelines, or gets cold feet, it could mean losing the earnest money deposit.

When it comes to real estate, a case of buyer’s remorse could be even more painful than a lost deposit. To avoid both, ensure the home you’re bidding on is “the one.”

How Much Are Closing Costs?

Zillow: Buyer closing costs are usually between 2% to 5% of the home’s purchase price. For example, if the home costs $300,000, you might pay between $6,000 and $15,000 in closing costs.

A lot of factors impact how much you’ll pay in closing costs. For buyers, it depends on your loan program, the size of the loan, and individual lender practices. For sellers, it comes down to what you’ve negotiated in terms of concessions and agent commission.

Track Your Closing Costs

Be prepared and know who’s responsible for the fees and expenses at the closing table. We have prepared a worksheet to help you track your closing costs.

Homeowners Insurance

A homeowners insurance policy will protect you against certain losses and damage to your new home and is generally required by lenders before closing.

Moreover, some lenders will collect the money you owe for homeowners insurance as part of your monthly mortgage payment and place it in an escrow account, paying the insurer on your behalf when the bill is due.

Title Insurance

Title insurance protects your ownership right to your home; from fraudulent claims against your ownership and mistakes made in earlier sales.

Additionally, in some states, it is customary for the seller to purchase the policy on your behalf.

Final Walk-Through

Conduct a final walk-through of the property before closing. To guarantee that the house is in the same or better condition if you negotiated repairs after the home inspection.

Here’s a detailed list of what to check on your final walk-through.

Transfer of Ownership

Once all the documents are signed, funds are transferred, and the closing is complete, property ownership officially transfers to you.

Congratulations! At this point, you will receive the keys to your new home.

In Conclusion,

Preparation is vital; from gathering all necessary documentation to conducting a thorough home inspection.

Also, staying in close communication with your real estate agent and other parties involved will keep you updated on the progress.

Furthermore, we understand that the closing process can be daunting, and we are here to help you fill the gaps in your home-buying knowledge. Call us, and we will establish a plan to achieve your personal real estate goals.

Finally, best of luck on your journey, and may your new home bring you years of happiness and fulfillment!

Sustainable Living: Green Home 2023

As the world becomes increasingly aware of sustainable living, individuals and households are taking conscious steps to reduce their environmental footprint.

One of the areas where we can make a significant impact is within our own homes. This blog post will provide valuable insights into creating a greener home for you.

Eco-friendly Practices

1. Switch to energy-efficient lighting

One example of energy-efficient lighting is LED lighting. LEDs have revolutionized the lighting industry due to their remarkable energy efficiency.

Also, LED bulbs use 80% less energy and last longer than incandescent bulbs.

2. Water conservation

Water scarcity is a growing concern worldwide. In response, homeowners are adopting water-saving techniques. Such as:

- - Low-flow toilets

Traditional toilets typically use around 3.5 to 7 gallons of water per flush, whereas low-flow toilets aim to use 1.6 gallons or less.

- - Low-flow shower heads

Standard modern shower heads typically have a flow rate of around 2.5 gallons per minute. In contrast, low-flow shower heads have a flow rate of 2.0 gallons per minute or less, with some models achieving rates as low as 1.5 gallons per minute.

- - Water-saving faucets

The standard faucet typically has flow rates of 2.2 gallons per minute or higher, while low-flow faucets aim for flow rates of 1.5 gallons per minute or less.

- - Rainwater harvesting systems

This allows homeowners to collect and reuse rainwater for non-potable purposes such as gardening and cleaning.

3. Install solar panels

Solar panels offer a renewable, cost-effective, and eco-friendly solution to meet our energy needs while reducing our carbon footprint.

- - How do they work?

Energy.gov: Solar radiation is light – also known as electromagnetic radiation – that is emitted by the sun. While every location on Earth receives some sunlight over a year, the amount of solar radiation that reaches any one spot on the Earth’s surface varies. Solar technologies capture this radiation and turn it into useful forms of energy.

- - Will it increase the value of my home?

Zillow: Nationally, homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power. For the median-valued home, that translates to an additional $9,274.

One reason houses with solar-energy systems sell for more than those without them is that they can provide substantial future energy cost savings.

For homeowners who know they consume a lot of power, these future savings are worth spending a bit more money upfront.

4. Smart home integration

Smart home technologies are integrated into eco-friendly real estate to optimize energy consumption. These technologies enable homeowners to monitor and control energy usage, heating and cooling systems, lighting, and appliances remotely.

In addition, by connecting your home with smart devices, you can reduce your household energy usage by as much as 30%.

The Value of Energy Efficiency

NAR, Majority of Agents, Brokers Find Value in Promoting Energy Efficiency in Listings, A majority (63%) of agents and brokers said promoting energy efficiency in listings is very or somewhat valuable, according to a new report from the National Association of Realtors®.

“While each area of the country has a unique climate and community resources, Realtors® are finding the need to embrace their clients’ sustainability interests,” said Jessica Lautz, NAR deputy chief economist and vice president of research.

“Buyers often seek homes that either lessen their environmental footprint or reduce their monthly energy costs. There is value in promoting green features and energy information to future home buyers.”

in Conclusion

The concept of sustainable living has evolved, leading to the rise of greener homes. By embracing these trends and making sustainable choices, we can collectively make a significant impact on preserving our planet’s resources and creating a more sustainable future.

If you’re interested in more sustainability content, check out PISE in Paradise, which discusses a green building method and its environmental benefits.

Lastly, let us all take the necessary steps toward a greener tomorrow.

Prepare for the Spring Real Estate Market 2023

As the flowers start to bloom, the real estate market is getting ready for one of the most active real estate seasons: spring. The spring real estate market can be very competitive, with more buyers and sellers entering the market. If you plan to buy or sell a home this season, it is important to be prepared.

Start preparing for the Spring Real Estate Market

Here are some tips to put you in the best position this season. Whether you are buying or selling a home, the spring market can be a great opportunity to achieve your real estate goals.

Start planning early: The earlier you start planning, the better prepared you will be. If you are planning to sell your home, start decluttering and cleaning out your home. If you are planning to buy a home, start researching neighborhoods and determining your budget.
Find a reputable real estate agent: A good real estate agent can help you navigate the competitive spring market. Look for agents like Randy and Heidi who are experienced, have a good track record of success in the local market, and know the local sales trends. Read more on About Us to get to know us.
Get pre-approved for a mortgage: If you plan to buy a home, get pre-approved for a mortgage before you start house hunting. This will give you an advantage in a competitive market and show sellers that you are a serious buyer.
Price your home correctly: If you are planning to sell your home, make sure you price it correctly. A real estate agent can help you determine the appropriate price based on comparable homes in your area and current market conditions.
Make necessary repairs and improvements: If your home needs repairs or improvements, make them before listing your home. This can help your home sell faster and for a higher price.
Stage your home: Staging your home can help it sell faster and for a higher price. Hire a professional or use online resources to stage your home and make it more appealing to buyers. Check out Home Staging Success for staging tips and tricks.

Homebuying Forecast

Michael Hyman, NAR Research Data Specialist, Housing Affordability Conditions Improved in January 2023 for the Third Consecutive Month, at the national level, housing affordability rose in January compared to the previous month, according to NAR’s Housing Affordability Index. Compared to the prior month, the monthly mortgage payment decreased by 3.3% while the median price of single-family homes declined by 2.4%, making home buying more affordable in January. The monthly mortgage payment decreased by $62 from last month.

Sonoma County Housing Market

Redfin: In February 2023, Sonoma County home prices were down 4.9% compared to last year, selling for a median price of $745K. On average, homes in Sonoma County sell after 48 days on the market compared to 29 days last year. There were 226 homes sold in February this year, down from 332 last year.

Work with experienced real estate agents

The real estate market is busy during the spring season as many houses are put up for sale. Unique homes require skillful marketing, and we can help you make your home stand out and be marketed effectively. If you are planning to enter the real estate market this season, give us a call!

Sonoma County First-time Home Buyer Loans in 2023

Purchasing a home can seem like a completely overwhelming endeavor. After all, it is one of the most significant investments you can make, with numerous steps and requirements.

However, various types of loans are available to Sonoma County first-time home buyers who require assistance.

First-time home buyer loans:

The average down payment for a house in California is between 15% and 20% of the purchase price. If you can afford this price, you can get a conventional loan with a low-interest rate.

However, there is some first-time home buyer who doesn’t have this much money saved for a down payment. Fortunately, there are mortgage plans that have a low-down payment:

VA loan: Sponsored by the Department of Veterans Affairs, VA Loans are open to veterans, reservists, active-duty personnel, and surviving spouses and are one of the only options available for zero down payment loans.

FHA loan: Backed by the Federal Housing Administration, FHA loans are open to anyone, and while they require a down payment, they can be as low as 3.5 percent. Drawbacks include a slower loan process and the need to pay mortgage insurance for FHA loans.

USDA loan: Organized by the U.S. Department of Agriculture as part of its Rural Development Guaranteed Housing Loan program. USDA offers financing with no down payment, lenient requirements, and competitive mortgage rates.

Conventional 97: With Fannie Mae, you may qualify to borrow up to 97% of the value of your home, leaving you with only 3% to cover your down payment. This type of loan requires a credit score of 620 and higher, and at least one of the borrowers must qualify as a first-time home buyer.

If you’re not sure which type of loan to get when buying your first home, your lender or realtor can help you find the right fit based on your finances, and your realtor can also guide you by discussing alternatives and developing a plan of action to achieve your personal real estate goals.

How to choose your realtor on your first home-buying:

When choosing a realtor, it’s essential to know how long they have been in residential real estate. Like most professions, experience is no guarantee of skill. However, a large portion of real estate is learned on the job. Randy and I bring 45 years of industry experience in residential, commercial, and land sales.

We are here to help you fill the gaps in your home-buying knowledge. The more familiar you are with the procedure, the less overwhelming it will be.

If you are considering becoming a homeowner in Sonoma County, we hope you’ll give us a call. There is never any obligation, of course—and the old saying is true in this case: it can’t hurt to ask!

7 Reasons to Work With a REALTOR®

REALTORS® aren’t just agents. They’re professional members of the National Association of REALTORS® and subscribe to its strict code of ethics. This is the REALTOR® difference for home buyers:

1. Ethical treatment.
Every REALTOR® must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a REALTOR®’s client, you can expect honest and ethical treatment in all transaction-related matters. The first obligation is to you, the client.

2. An expert guide.
Buying a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.

3. Objective information and opinions.
REALTORS® can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. REALTORs® can use that data to help you determine if the property has what you need. By understanding both your needs and search area, they can also point out neighborhoods you don’t know much about but that might suit your needs better than you’d thought.

4. Expanded search power.
Sometimes properties are available but not actively advertised. A REALTOR® can help you find
opportunities not listed on home search sites and can help you avoid out-of-date listings that might be showing up as available online but are no longer on the market.

5. Negotiation knowledge.
There are many factors up for discussion in a deal. A REALTOR® will look at every angle from your perspective, including crafting a purchase agreement that allows enough time for you to complete inspections and investigations of the property before you are bound to complete the purchase.

6. Up-to-date experience.
Most people buy only a few homes in their lifetime, usually with quite a few years in between each purchase. Even if you’ve done it before, laws and regulations change. REALTORS® handle hundreds of transactions over the course of their career.

7. Your rock during emotional moments.
A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.

Homegrown Realtors

Randy and I are fortunate to call Sonoma County our home. We have built a strong professional foundation rooted in our love and respect for the area as well as the people who call it home. We joined Sotheby’s International Realty over ten years ago not only for the worldwide brand recognition and quality of service but because Sotheby’s has a profound respect for the people that work within the organization. This commitment ultimately benefits the people who hire a Sotheby’s agent to represent them. We are honored to serve Sonoma County residents to find their ideal home and be an ambassador for Sotheby’s International Realty brand. Give us a call today and learn more about how we can help you reach your real estate goals.

Real Estate Unpacked: 7 Reasons to Own a Home

Real Estate can be an overwhelming topic. There is a lot of information and misinformation that can be confusing. One of our favorite resources for condensed and accurate real estate information is Realtor Magazine. We recently rediscovered some articles illustrating various topics. As a result, we are posting them in a series we are calling Real Estate Unpacked.

We will cover a multitude of topics including but not limited to:

Top Reasons to Own a Home
Top Reasons to Work with a Realtor
House Hunting
Preparing to Purchase a Home
Tracking your Budget
Improving your Credit Score
Choosing a Lender
Creative Financing

7 Reasons to Own A Home

1. Tax benefits.
The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, and some of the costs involved in buying a home.

2. Appreciation.
Historically, real estate has had a long-term, stable growth in value. While home prices have appreciated nationally at an average annual rate between 3 and 5 percent, depending on the index used for the calculation, home value appreciation in different metro areas can appreciate at markedly different rates than the national average. Here in California, the average annual rate of increase is 4% and according to some experts and projected to rise on up to almost 7%.

3. Equity.
Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings.
Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax. The only stipulation here is you must have lived in the home for two years out of the last five years.

5. Predictability.
Unlike rent, your fixed-rate mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase.

6. Freedom.
The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.

7. Stability.
Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity.

Heidi and I are here to answer any questions you may have, just give us a call!

House Design May Change Due to a Single Word

There’s news in the world of house design—for a change!

Those who keep in touch with the house design innovations that Sebastopol buyers are currently favoring know one thing is for certain: they don’t change overnight. True innovations are rare.

Fads occasionally come and go (remember “industrial décor” and barn door sliders?)—but by definition, fads don’t wind up making much of a dent in how most Sebastopol homes are built or remodeled. That’s a good thing: overexuberant style-chasing can be expensive to correct once a clever style has come and gone.

We bring this up because it looks as if there are a couple of interconnected house design ideas that look like they might be durable—and if so, Sebastopol home buyers and sellers will want to be aware of them.

First is a house design feature that’s gradually been working its way up in popularity: the ground floor master bedroom. A recent article in The Wall Street Journal pointed to the demographics that make this a house design winner. They call it “main-floor master bedroom”—but whatever you call it, the logic is irrefutable. As the number of America’s seniors grows, the practicality of easy access grows with it, gradually shifting from convenience to necessity.

The associated and more consequential design news is summed up in one word: flex. A flex room or area is one that has no designated purpose, but which can be configured and later re-configured to accommodate changing needs and lifestyles. Flex rooms are usually sited off the entry hall, near the main living space, generally close to a bathroom (“so they can easily morph into bedrooms”). They have ample electric wiring so they can become home offices or media centers. Or anything else, not yet anticipated.

Flex rooms used to be called “bonus rooms”—but that might be selling the innovative element short. To us, the term “bonus room” has always seemed like a luxury afterthought; a non-necessity. “Flex room” sounds active and dynamic—and valuable. In fact, the essence of the idea may be more of a marketing insight than design innovation. Whichever it is, it’s something Sebastpol sellers can appreciate for its practicality: potential buyers will tend to project their own needs into the space. As a house planner put it to the Journal, “When you name it ‘dining room,’ buyers will never get that out of their mind.”

In a wider sense, the “flex” idea is a reflection of 21^st-century reality. At this point, we all understand that change is the most predictable element of our future. Having built-in flexibility in a home’s design is one way to assure that it stays in style—and also a way to ensure its lasting resale value. Maximizing that is our specialty—so be sure to keep our number handy!

Future Sebastopol Home Sales May Defy Assumptions

Many Sebastopol homeowners will be planning to list their properties this spring because it’s when future home sales would be expected to peak. Historically, at least, spring is when a sudden crush of prospects usually arrive on the scene. But this year, the upward drift in mortgage interest rates might have would-be sellers worried. After all, it’s common sense that any rise in home loan rates would put a damper on buyers’ enthusiasm.

Sometimes common sense and reality don’t go hand in hand. When we try to estimate the strength of Sebastopol’s future home sales, it could be a case in point.

That’s one way to look at the conclusions drawn by a pair of studies released last week. Both were focused on examining how rising interest rates are likely to affect future home sales. If you assume that higher mortgage rates automatically dampen home buying activity, that in itself could become a self-fulfilling prophecy. For Sebastopol homeowners currently deciding whether the prospects for future home sales are on the decline, that could be a factor in their decision about whether to list their own properties.

John Burns Real Estate Consulting examined the “common sense” idea about the dampening effect of rising mortgage interest rates—and found historical evidence that put the kibosh on it. They looked at ten separate periods since 1975 during which rates rose by 1% or more, and found little or no impact on sales if the underlying economy was strong. Apparently, the public optimism that accompanies a roaring economy offsets the effect of higher monthly mortgage payments.

Another study by market research journalist Greg McCarriston summarized a late-2017 Redfin-commissioned survey. More than 4,000 people were polled in late 2017 about their own homebuying plans. Surprisingly, only 6% of those quizzed said they would cancel their own homebuying plans if mortgage rates passed 5%. A surprising 46% said that would either have no effect on their plans—or that it would actually increase their urgency to buy since rates might rise further.

Common sense or not, if both studies prove out, the strength of recent economic news could energize this spring’s Sebastopol future home sales activity—despite a creeping rise in interest rates. That will be good news for homeowners who decide to sell, and for buyers who are planning on the traditional spring flood of new properties entering the market. If you are thinking about joining either group, we hope you’ll give us a call!