Bryan Vogt: Welcome back, this is Bryan Vogt with Ready, Set, Sold. We’ve been talking today about updating, the importance of updating. As I mentioned earlier we have a special guest today, and that’s Jason Stauffer of Gershman Mortgage.
What I wanted to talk to you about though, we were talking off air a day or two ago about the fact of just in your own personal situation being a lender with Gershman, that you’ve experienced a situation of sellers maybe not having the updates that they needed and not having the sales that they wanted. Maybe you could relay that story that you told me.
Jason Stauffer: A neighbor across the street, she had her house listed in I think June of 2016. Beautiful home from the outside, three acres, countryside, fantastic place. For some reason, buyers showed up, I would see cars looking at homes and after a week or two, nothing.
I went and talked to her, told her what I did for a living. I’ve been in the mortgage industry since 1998. I said, “Why isn’t your house sold?” “Well, my husband passed away five years ago, and I really haven’t done anything to this place.” She said, “My agents have told me to do things, but I just don’t want to. I have the home priced at where I want to and people can come in and do their own thing with it.”
Six months go by, no bites on the house. She takes it off the market, she’s going to stay there. Well, then she gets an idea, “Hey, maybe I should replace this carpet and put a fresh coat of paint in all the rooms and see what happens.” I don’t know what the cost would be on that, pretty minimal. She did all that, relisted it, three months later and within 90 days had her house under contract and closed.
Bryan Vogt: Yeah, and I love that story because some of the things you talked about is that many times the agents, and especially top agents, will always be talking about the need for updating and how critical they are. I think that that’s where people, in the last segment we were talking more about unfortunately some of the horror stories, in a sense that’s one of those situations there too.
Yes, she did get it sold but what it takes to get your house sold is making sure that you’ve done the updates. Updates are so critical when it comes to the sale of your home, and to get top dollar, and a fast sale. Then just simply by making some of those improvements that were suggested by the agents already, she had some great success and then you got new neighbors.
Jason Stauffer: Correct.
Bryan Vogt: You get along with them I hope.
Jason Stauffer: Absolutely, yes. Bringing them over cookies next week.
Bryan Vogt: Good for you. You know something else too that we were talking about, and that is simply the appraisal process too. There is that situation, and you mentioned to me about the idea that houses that seem to have those updates, to have those things, that it’s no guarantee but many times the appraisal process goes smoother.
Jason Stauffer: Most definitely. Years ago the appraisal process, our appraisers, would look in more detail as far as condition of the home, cleanliness of the home, things like that. Stained carpets used to not be able to pass an FHA inspection for one example. FHA has gotten a little looser on guidelines with city and county occupancy, things like that.
However, we all know that if an appraiser goes into a home that’s been updated and has that fresh look, that they are less likely, as you said not a guarantee, but less likely to have value issues.
Bryan Vogt: Right. Like you said, there’s different ways to appraise them and I’m not an appraiser so I don’t want to say that. There are different methods they can use to evaluate, most of them is what’s going on in the local market, the local area next to them. Again, there is that situation of it looks nice, it has the updates, they’re more to give the benefit of the doubt to those houses that don’t have those repairs, don’t have those things done. That’s a great point that you made.
Something else too that you said that really struck me too, I think it’s important and you can maybe give some more insight, FHA even VA, all these loans that sellers used to be more fearful of, they’ve really become great opportunities as far as loans go. They don’t really have those restrictions, do they, as much as they used to?
Jason Stauffer: You’re exactly right. When I got in this business and people heard the word, mainly VA, VA was the fear for some reason. The sellers were afraid they would not pass a VA inspection, a VA appraisal and they would shy away from them even if it was more money, a higher sales price.
However, this time I would gladly welcome any type of financing, VA, FHA, conventional, across the board are solid offers as long as the borrower has been pre-approved. Pre-approval is I’ve already looked at your income and collected documentation, along with your credit inquiry. Pre-qualification, you tell me you make X amounts of dollars, I believe you, I pull your credit, I say you’re good to go.
Big difference from a selling perspective and a buyers, you want to get pre-approved. You want to make sure your ducks are in a row, the lender’s comfortable with the income provided. From that pre-approval stage to the end game, which is to get you into your home, we can have that done for you in 30 days or less.
Bryan Vogt: Right, that’s important too because not all lenders can do the 30 days. I think also and we’ve talked before, the pre-approval process; I tell you the way you guys have it set up, you can do a pre-approval faster than some lenders can do a pre-qualification. You can tell people that they’ve got the money, that it’s a done deal.
Whether you’re the buyer or are the seller in particular, it’s always a nice thing to make sure you have that money. It doesn’t mean that a pre-qualification letter won’t work but it sure is nicer in the seller’s point of view. I think also for your guys point of view, that you know that you serviced a client the best they could. There’s not going to be some major concerns or issues usual with financing, all you’re really waiting for is the appraisal.
Jason Stauffer: Absolutely. If you are given a pre-approval from Gershman Mortgage, we’ve already verified income, we’ve already gotten the asset statements, bank accounts, and appraisal title, and employment verification, and you’re in your new home.
Bryan Vogt: Awesome.
Jason Stauffer: As long as you don’t quit your job in the process.
Bryan Vogt: That’s always a bummer, right. I hear you. We’re running out of time for this segment.
Jason Stauffer from Gershman Mortgage, thank you so much for spending some time with us and enlighten us not only about the updates but also on the mortgage.
Jason Stauffer: It was my pleasure sir.