Why Boise Real Estate Agents Are Like Pizza

Here are 11 reasons why Boise real estate agents are like pizza:

1.   You can get one just about anywhere

2.   Some have lots of dough

3.   Some have little dough

4.   Some have thin crusts

5.   Some have thick crusts

6.   Some are spicy

7.   Some are bland

8.   Some are square

9.   Some are round

10. Some are difficult to digest

11. Some give you gas

 

The Truth About Million Dollar Producers

Ever noticed those Realtors® driving around with “Million Dollar Producer” license frames on their cars?

Well, here’s the truth about those million dollar producers.

Selling $1 million of real estate isn’t all it’s cracked up to be.

Here’s why:

First, you multiply that $1 million of sales volume by the commission rate for the agent.

Assuming two agents in a transaction (one representing the seller; the other representing the buyer) who equally share a 6% commission, each agent receives a 3% commission.

3% X $1 million sales volume= $30,000 gross commission.

Then, the agent usually “splits” that gross commission with their broker, so we need to multiply that $30,000 by the percentage of commission the agent keeps.

Let’s assume that the agent is on a 65% “split”, which leaves $19,500 for the agent after giving up $10,500 (35%) for their broker.

This is actually a high commission split because many new agents start out with a 50/50 split with their brokers.

Then, the agent gets to pay their own expenses, including MLS dues, Realtor® dues, E&O insurance, health insurance, car payments, car insurance, gas, car maintenance, advertising, signs, telephone, website hosting, etc.

It’s pretty common for business expenses to run around 40% of commission income, which leaves an estimated net income of less than $12,000.

That’s equal to the 2014 poverty level for a one-person household, according to HHS guidelines.

As you can see, being a million-dollar producer is more of an embarrassment than something to brag about.

If an agent is only a million dollar producer, it might be a good idea to keep it a secret.

 

10 Tips For Mortgage Approval Success

Most real estate transactions depend upon mortgage approval.

Here are 10 helpful tips for mortgage approval success.

  1. Don’t make large deposits into your bank accounts. Most lenders will require 30-60 days’ of bank statements and want to know the source of deposited funds.
  2. Use your own money for the down payment. Your lender will want to ensure that your down payment came from you and that you didn’t borrow it.
  3. Fully disclose past financial problems, including foreclosure, short sale, or bankruptcy.
  4. Disclose changes in employment.  Lenders prefer two years’ continuous employment in the same line of work, but can make exceptions with adequate documentation.
  5. Disclose alimony and/or child support.  These payments will be considered as expenses against your income for loan qualification.
  6. Disclose any relationship you may have with the seller of the property to avoid the appearance of loan fraud.
  7. Do not shop for additional credit until after closing. More than one loan approval has been destroyed by a buyer financing a house full of furniture or that beautiful new Escalade before closing.
  8. File your tax returns on time.  Lenders are skeptical of borrowers who file extensions every year; especially if they owe unpaid taxes.
  9. Disclose any ownership in the company that employs you.  Self-employed borrowers undergo far greater scrutiny than borrowers with regular paychecks.
  10. Disclose all pertinent information to your lender.  It’s not good when the underwriter discovers things you “forgot” to mention on your application.