The Brian and Kindra Show

On Season 2 Episode 19 of The Brian and Kindra Show, they discussed closing costs. When buying or selling a home the term closing costs are often tossed about but sometimes there is confusion as to what that really means.  Closing costs are the funds needed to close your transaction, not including your down payment.   First, a quick look at down payments.  Your loan type determines your down payment:  FHA loans require 3.5% down payments, VA and USDA require 0% down. With these three loan types, the buyer can request the seller to pay up to 6% of the purchase price in closing costs.  Conventional loans can be anywhere from 3% down payment up to whatever you want. With conventional loans a buyer is typically limited to only requesting the seller to pay up to 3% of the purchase price in closing costs. The Oklahoma Real Estate Commission requires licensees to disclose closing costs to the buyer and seller.  This can be a challenge to the licensee as each lender has different fees. Fees commonly seen on the settlement statement are: underwriting fees, origination fees, appraisal fees, etc.  Kindra said her estimate of expense is generally a bit higher than at closing, though it is still pretty close.  Brian and Kindra also noted that they have found that lenders either charge a loan origination fee, which is 1-1.5% of the loan price, or they have more itemized fees. All these fees are repetitive and Brian and Kindra know how to spot the differences if they don’t look right at closing.  One thing that gets tricky with closing costs are which ones are paid upfront and which are paid at closing. Earnest money has to be paid within three days of going under contract. In Woodward, home inspectors want payment at time of service and termite inspectors get their payment on the final settlement. Home inspectors do this because their report often makes or breaks the closing, so they need to be sure they are paid because sometimes they might not if they put it on the closing settlement. Another cost paid upfront is the first appraisal, usually around $550. There can also be a second appraisal or re-inspection and an appraisal management fee paid at closing. Some other fees at closing can be Insurance if you have a loan, escrow account fees, filing fees for the deed, pre paid interest and title opinion and insurance. Sometimes the closing cost fees can be daunting. The main point is to be prepared. Start saving money if you know you want to buy. As the market heats up with more options sellers will be less likely to pay closing costs. Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 18 of The Brian and Kindra Show they discussed the pros and cons of buying, building, or renting. Brian and Kindra feel strongly about the right to own real estate and of course, encourage home ownership.  However, they understand that home ownership is not for every person!  Renting is a safer and wiser option for some.  Renting can be very attractive for someone who doesn’t want to or is unable to do various types of home maintenance, lawn care, and upkeep. Maybe one is in a situation where they are facing life decisions of where to live and work, if so, buying in today’s market may not be the best option.  In a competitive seller’s market, a buyer needing financial assistance with a down payment and closing costs may choose to rent and save until they are able to submit a more attractive offer. If home ownership is definitely the choice for you, your next choice may be to buy or build a home.  In Woodward, building is a long process. It’s further from suppliers, so getting the proper tools and equipment isn’t as easy as it would be in a metro area with greater choices for supplies and contractors. In Woodward you have to order ahead or go to multiple stores looking for what you need. The further from the metro areas, the more complicated the building will be. When it comes to contractors, there are a limited number of them in smaller communities and those tend to be very skilled and very busy!  This could mean a long wait for a contractor to be able to take on and complete your building project.  Additionally, the idea of building is daunting for some people. It is often more expensive than intended. Financially, building a home requires a different level of financial commitment and loan availability. There is more at stake when you build because inflation of products will eb and flow depending on the supply at the time. This goes back to hiring a good contractor who can be preemptive on ordering supplies up front. When purchasing items for your new build, you might end up having to purchase the item you hate the least. Most lenders will not allow you to serve as your own contractor when building your home. They will often require a licensed and bonded professional. To apply for a loan to build a home, you have to provide the ground plans of the property complete with finishes to the lender. They will have an appraiser appraise the home based on that information, determining your budget to build the home. Inflation of products can put people in a bind as it puts them over budget and the funding may not be available to finish other parts of the property. When you talk to your lender, it might not be a bad idea to add 20% to your budget so you don’t have unexpected surprises. If you decide renting is not for you and building is daunting, the next option is to buy. Buying is perfect if you are only interested in some remodeling or a move in ready property. Home ownership allows you to have equity in your home and offers security that you won’t be kicked out (as long as you pay your mortgage). Buying is secure if you don’t like moving and want stability. Home ownership also allows you to make a house your home with your own choice of paint color and finishes or even pets!  Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

 On Season 2, Episode 17 of The Brian and Kindra Show, they met with team lead Judy Nelson-Bruley of Keller Williams Realty Elite Oklahoma City. She came to share some insight on how the OKC market is currently operating and to share some insight in a highly competitive sellers market.  The OKC market is operating at unprecedented levels. With any home of any price point, most (if not all) have multiple offers. Buyers are having to be creative with their bids to get a home. Judy mentions that it’s not always about money, it’s really about what the seller needs. A seller may need a very quick or a very long contract and closing date.  Maybe a seller is more inclined to accept a lower priced cash offer than a higher priced offer that must go through the lending process.   Oftentimes in aggressive markets as seen in OKC, buyers are paying the seller’s closing costs and their own broker fee to have a standing chance of buying the home. That’s almost unheard of in our area!The process when Brian takes a listing, is to share the listing with the Multiple Listing Service (MLS) within 24 hours making it available to all the realtors in that MLS to show and sell. However, larger markets like OKC are using a different process and for the first 7 days can only be shown and seen by agents in that listing office. Then, if that house is still available after 7 days it goes to the MLS. In these more aggressive sellers markets, agents are seeing 5-15 offers in 24 hours. The minimum offer one might see is the asking price, but it really depends on the resources of the buyer. Appraisers are doing their best to be fair, but some buyers are actually paying over the appraised value and bringing additional funds over their financed amount in order to purchase the home they desire. One of the most humbling realities of the sellers market, is that buyers who need assistance in their closing costs are often unable to win in a multiple offer situation.  These buyers would unlikely be able to offer over the asking price, would unlikely be able to pay any extra AND their offer asking for closing costs is likely to be a more challenging loan type and lesser net to the seller than other buyers.  Judy says that although this is a sad situation, these buyers can take the opportunity to save for their future purchase and potentially end up with a better ‘bargain’ when they are ready to purchase.  As Realtors, Brian and Kindra questioned how one prepares sellers for 5-15 offers? This many offers can be very confusing and difficult to process, even for seasoned agents!  Judy says, in part, this is why the agents are listing for the 7 days with an in office agreement, so that the sellers know they are working with professionals trusted by their Realtor. It is important for sellers to ask questions based on what their needs are for the offer they want to agree to. Some agents are reducing these multiple offers to a spreadsheet that is easier for the seller to read and understand. Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2 Episode 16 of The Brian and Kindra Show, they discussed home buying in a tight market. A tight market means the housing inventory is low. Currently, in Woodward, OK, our readers may find this to be true for them! Unfortunately, this sometimes means purchasing the house you hate the least. If you are looking to buy, the first and most important thing to do is get prequalified. Get a firm commitment from your mortgage company that you are prequalified to purchase a home. This will make the process so much easier. Hours, not days, are important in the game when you are buying a home that will have multiple offers. Stay in close contact with your real estate agent. Even if you don’t know what type of home you want, a realtor will still want to meet you. Speaking with them, you can establish a list of wants and needs so they can show you homes that match that. At the realtor tour every week, Brian and Kindra see every new listing in the area so they know what is for sale. Find a Realtor that knows the market and knows what is available in the market!There are many websites that can show you homes in the NWOK area. Feel free to scout out homes on your own. Also, don’t be afraid to text your realtor. If you have questions on ‘for sale by owner’ homes, your agent may be able to answer questions for you about those. Advisably, you should get a realtor to assist you in the purchase to make sure the transaction runs smoothly. They are busy people, but will always be able to respond to a message or give you a call when they are free. Be ready to make a decision. As you go through the process of looking at homes, you need to be able to jump. Knowing inventory is low and knowing that other buyers might want the same house as you, you need to be prepared. There can be contingencies in the contract that will protect you for a portion of it if you decide after signing that the home isn’t for you. Bid competitively in a tight market. Everyone wants to win, so you need to stand out. Keep contingencies to a minimum. Many buyers require a loan contingency. However, some contingencies, such as the sale of your current home can reduce your chances of having your offer accepted. However, if you are unable to avoid a contingency to sell your own house, be sure it’s under contract already. Don’t get caught up in a buying frenzy! If you like a house but aren’t completely sold on it, it’s ok to wait! Don’t buy it! On the flip side, if you’re pretty sure about the home, but you’re worried about the roof, etc. go ahead. Condition issues can be discovered during the inspection period. It’s okay to wait for the house you want, just understand that in a tight market the wait could be a while.Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2 Episode 15 of The Brian and Kindra Show, they discussed 10 home trends of 2021. Most of these trends are a reflection of the age of 2020 Covid 19 season of shut down and consequential quarantines. Some have noted a trend of having 2 kitchens: a back kitchen to do the prep and messy work and a front kitchen more for presentation. Brian and Kindra aren’t sure this will become a trend in Woodward, but they do agree that more and more customers are saying that a home can have too much of an open concept.  With an open concept house, people always see your dishes or what’s happening in the kitchen. Homeowners are beginning to close off their open concept to somewhat conceal the kitchen area. Some also note that with a more closed concept kitchen you are able to have more cabinets.  Outdoor spaces have really become popular allowing homeowners a space to entertain with social distance.  Outdoor heaters and fire pits are very attractive now, helping to create a more comfortable and cozy space even when the temperatures turn a bit chilly. And who doesn’t love a nice deck? These spaces and a grill are a great way to provide outside, distanced fun.  Pre-fabricated flex sheds are a hot commodity. Homeowners are taking the garden shed to the next level to provide extra living space for visiting family or friends. Or, with working from home being so prominent, it can be an extra office space that isn’t in the home. For people who are high-tech, a video conferencing living room is popular. This felt like a necessity when so many began working and schooling from home.  However it has turned even more personal for some with family afar.  A video conferencing space can provide a place to continue having shared experiences as a family. Kindra mentioned a family who had their child in college join them for game night via video conferencing.  Warmer palettes and design material have increased during quarantine. White and beige are the new colors schemes to provide a bright, refreshing feeling in your home. While we still see the gray color palette in Woodward, we anticipate homeowners trending back toward the warmer neutrals again.  Texture is also important and it was noted that velvet is becoming a popular choice in decoration.  Over the past few years, we have seen the entryway of homes become a focal point. Mudrooms are a particularly loved entry for homeowners with organizational space for backpacks and shoes and even a nice sink to bathe fido or a mop sink. Some locations are noting a rise in grand staircases or home entrances that really provide a WOW factor.  A lot of city dwellers have been reflecting on needing more space during quarantine and moving to the suburbs. Brian and Kindra have or are currently helping city transplants buy homes in the area. Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

On Season 2, Episode 14 of The Brian and Kindra Show they met with Matt and Jennifer Thompson of Modern Appliance.  Modern Appliance is a family owned and operated business with over 50 years of experience in sales and service.  Trends in appliances ebb and flow. Stainless steel is currently the most popular, followed by black stainless. Stainless steel moved into the kitchen scene some years ago because of the sleek, modern look.  It is also incredibly durable, fighting off rust, fire and heat.  This makes it a great choice if one is looking for an appliance that will age well showing minimum wear and tear.  Traditional black and white are still around, but are not as popular as previously. 80% of appliances now are coming out in stainless steel colors as a lot of manufacturers have stopped making white and black appliances to allow them to focus on the demand for stainless steel. Kindra is hoping for some fun colors to begin to trend, but that doesn’t seem to be on the horizon just yet. Many buyers and sellers question which kitchen appliances should remain in the home when it is sold.  The Oklahoma Real Estate contract used by Brian and Kindra says that the Free standing slide-in/drop-in kitchen stove and Built-in and under cabinet/counter appliance(s) are to remain with the property.  However, the refrigerator, washer, dryer and even the wine fridge are not necessarily staying at the property.  As a seller if you intend these non staying items to be negotiable, be sure to tell your Realtor.  As a buyer, be sure to send a list of what you expect to stay when you share the terms of your offer so that your agent can be sure all items are documented for you.  Keep your manuals handy and in one location so that they are easily accessible to the buyer upon their occupancy.  Additionally, Brian and Kindra promote shopping local for your appliances.  As they learned from their show with Modern Appliance, the local businesses often carry a level of product that is superior to what you might find in a ‘big box store’.  The local businesses are also very likely to provide service and maintenance to the appliances you purchase from them.  This is a huge benefit to you and an added bonus of information that you can share with your buyer.  Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.