About school2013

Michael Dougherty is the Broker/Owner of HomeSmart Fine Homes and Land located at 140 N Montezuma Street, Suite 201, Prescott Arizona 86301. The main Phone Number is 928-442-2121. Our Company is 7 years old and we have 80 active agent partners selling almost $100 Million in properties in 2013. We have associated with Renewal Education in Phoenix to offer online new agent and broker licensing. We have graduated more than 50 students through our program.

Why an FHA Loan can help move you into your next home?

An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

Because of that insurance, lenders can — and do — offer FHA loans at attractive interest rates and with less stringent and more flexible qualification requirements. The FHA is an agency within the U.S. Department of Housing and Urban Development.

Minimum credit scores for FHA loans depend on the type of loan the borrower needs. To get a mortgage with a down payment as low as 3.5 percent, the borrower needs a credit score of 580 or higher.

Those with credit scores between 500 and 579 must make down payments of at least 10 percent.

People with credit scores under 500 generally are ineligible for FHA loans. The FHA will make allowances under certain circumstances for applicants who have what it calls “nontraditional credit history or insufficient credit” if they meet requirements. Ask your FHA lender or an FHA loan specialist if you qualify.

For most borrowers, the FHA requires a down payment of just 3.5 percent of the purchase price of the home. In late 2014, Fannie Mae and Freddie Mac reduced minimum down payments to 3 percent from 10 percent, but such loans have limited availability.

FHA borrowers can use their own savings to make the down payment. But other allowed sources of cash include a gift from a family member or a grant from a state or local government down-payment assistance program.

The FHA allows home sellers, builders and lenders to pay some of the borrower’s closing costs, such as an appraisal, credit report or title expenses. For example, a builder might offer to pay closing costs as an incentive for the borrower to buy a new home.

Lenders typically charge a higher interest rate on the loan if they agree to pay closing costs. Borrowers can compare loan estimates from competing lenders to figure out which option makes the most sense.

Because the FHA is not a lender, but rather an insurer, borrowers need to get their loan through an FHA-approved lender (as opposed to directly from the FHA). Not all FHA-approved lenders offer the same interest rate and costs — even on the same FHA loan.

Costs, services and underwriting standards will vary among lenders or mortgage brokers, so it’s important for borrowers to shop around.

Two mortgage insurance premiums are required on all FHA loans: The upfront premium is 1.75 percent of the loan amount — $1,750 for a $100,000 loan. This upfront premium is paid when the borrower gets the loan. It can be financed as part of the loan amount.

The second is called the annual premium, although it is paid monthly. It varies based on the length of the loan, the loan amount and the initial loan-to-value ratio, or LTV. The following premiums are for loans of $625,500 or less.

Annual premiums for FHA loans
30-year loan, down payment (or equity) of less than 5 percent: 0.85 percent
30-year loan, down payment (or equity) of 5 percent or more: 0.80 percent
15-year loan, down payment (or equity) of less than 10 percent: 0.70 percent
15-year loan, down payment (or equity) of 10 percent or more: 0.45 percent

The FHA has a special loan product for borrowers who need extra cash to make repairs to their homes. The chief advantage of this type of loan, called a 203(k), is that the loan amount is not based on the current appraised value of the home, but on the projected value after the repairs are completed.

A so-called “streamlined” 203(k) allows the borrower to finance up to $35,000 for nonstructural repairs, such as painting and replacing cabinets or fixtures.

Of course, FHA insurance isn’t supposed to be an easy out for borrowers who are unhappy about their mortgage payments.

But loan servicers can offer some relief to borrowers who have an FHA-insured loan, have suffered a serious financial hardship or are struggling to make their payments. That relief might be in the form of a temporary period of forbearance, a loan modification that would lower the interest rate or extend the payback period or a deferral of part of the loan balance at no interest.

The Lori Shaw Group 928-420-3013 can refer you to Lenders offering good terms on FHA loans.

Reasons To Hire An Experienced Realtor Instead Of Buying A Home On Your Own OR with a new Realtor!

Buying or Selling a home can be overwhelming and very stressful. While it may be tempting to avoid realtor fees and handle things on your own, having a professional by your side versus some newly licensed realtor learning “the ropes” can make the process go more smoothly and provide valuable insight into what’s likely one of the biggest purchases of your life.

“Don’t try to buy or sell a house with out working with a seasoned realtor. Okay, that’s it,” real estate expert and host of NBC’s “Extra’s Mansions & Millionaires!” writes in his book Before You Buy!

Corbett breaks down 12 reasons it pays to hire a realtor. He writes:

Access to every home that’s on the market via MLS (Multiple Listing Service) and all other sources, including ones that may not be listed publicly.

Inside track to the deals before they event hit the market.

The ability to combine your Dream House Checklist with your price range.

Knowledge of recent comps (comparables) — what similar properties have sold recently and for how much.

Knowledge of neighborhoods.

Ability to have an your very own experienced negotiator negotiate with the sellers on your behalf.

The inside scoop from the sellers’ agents.

Expertise to negotiate and close the deal.

Experience to manage the legalities and solve any problems during the escrow process.

Muscle to get a deal through the escrow or “under contract” period.

A litany of referrals for inspectors, mortgage brokers, and even tradesman for renovations.

Objective professional advice.

Lori Shaw – The Lori Shaw Group of HomeSmart Fine Homes and Land is an experienced negotiator who has over 25 years helping Sellers and Buyers realize their goals.

Call Lori 928-420-3013 for a no obligation meeting on the Home you want to buy or the Home you want to sell in Prescott, Prescott Valley, Chino Valley or Dewey!!

U.S. Housing Market Roars Into 2017

Case-Shiller Says Home prices shrug off higher interest rates to cap year of robust growth in 2016

Home prices jumped in December to their fastest full-year growth since 2013, as buyers shrugged off the effects of higher interest rates.

The S&P CoreLogic Case-Shiller Indices, covering the entire nation, rose 5.8% in the 12 months ended in December, compared with a 5.6% year-over-year increase reported in November.

The 10-city index gained 4.9% over the year, up from 4.4% the previous month, while the 20-city index gained 5.6% year-over-year, versus a 5.2% increase in November.

“The big takeaway from this report is that all signs that the housing market was going to cool in 2016 are now reversed,” said Ralph McLaughlin, chief economist at Trulia. “The spring selling season is going to be another doozy for home buyers.”

The hottest markets in the country remain concentrated in the northwest, as many buyers priced out of the Silicon Valley area flee to secondary technology hubs. Seattle led the way with a 10.8% increase, while Portland posted a 10% year-over-year gain and Denver had an 8.9% annual increase.

A number of markets that have seen prices grow modestly since the recession are starting to see much faster rates of increase than they had in the recent past. Tampa, Fla., jumped 8.4%, while Atlanta enjoyed a gain of 6.3% and Las Vegas increased 5.8%.

Nationwide, home prices hit a record in September and have continued climbing by more than 5% year-over-year since then, driven by strong demand and a shortage of homes for sale.

Housing inventory in December hit its lowest level since 1999, when the National Association of Realtors started tracking the data. The number of homes for sale was down 7.1% in January compared with a year earlier, the Realtors said.

“With all 20 cities seeing prices rise over the last year, questions about whether this is a normal housing market or if prices could be heading for a fall are natural,” said David Blitzer, managing director at S&P Dow Jones Indices.

While Mr. Blitzer said the rate of appreciation is much higher than the average pace of 1.3% since 1975, it remains within the range economists consider normal. “Home prices are rising, but the speed is not alarming,” he said. Annual growth has ranged from -4% to 7% about two thirds of the time since 1975.

If mortgage rates continue to rise, economists said, the current rapid rate of home-price growth likely will slow.

“I’m not sure that it’s a bubble because demand is coming from solid job growth and improving demographics,” said David Berson, chief economist at Nationwide Insurance. “I don’t think it’s a bubble, but I don’t think it’s sustainable, nor is it healthy.”

Wages increased 2.5% in the year ending in January, better than the 2% gains that were common earlier in the recovery but still much slower than the rate of home-price growth.

Month-over-month the U.S. Index rose 0.2% in December before seasonal adjustment, while the 10-city and the 20-city index increased 0.3% from November to December.

After seasonal adjustment, the national index rose 0.7% month-over-month, while the 10-city and 20-city index rose 0.9% month-over month. After seasonal adjustment, all 20 cities posted price gains.

December’s numbers reflect the peak of a sharp rise in mortgage rates since Election Day. Average rates for 30-year fixed mortgages rose from roughly 3.5% around Election Day to 4.32% at the end of December, according to mortgage company Freddie Mac. In the past week they averaged 4.16%, Freddie Mac said last Thursday.

Purchases of existing homes increased 3.3% in January from a month earlier, the National Association of Realtors said Wednesday, suggesting continued strong demand.

Looking for an experienced realtor who is an associate broker with 25 years experience and a strong negotiator call Lori Shaw 928-420-3013 Lori Shaw Associate Broker

How Much Will Your Monthly Payment Change?

Mortgage rates are still historically low, but crossing over to the four-percent range raises worries to potential homebuyers. But, should they be worried? How much can this rise of mortgage rates change their monthly payment? How does this change monthly payments?

We calculated the monthly payment for Yavapai County based on the mortgage rate prevalent a couple of months ago (3.5 percent), the rate as of early January (4.2 percent) and a higher rate likely to be seen within the next two years (5.0 percent).

In Yavapai County the Avg Home Value is $231,605 at 3.5% Payment is $931 at 4.2% Payment is $1,109 at 5% Payment is $1,119.

National Association of Realtors expects that the 30 year fixed-rate will increase to 4.4 percent in 2017 and 4.8 percent in 2018 while home prices are expected to rise 3.9 and 3.2 percent, accordingly. Rising prices, in addition to rising mortgage rates, will push the monthly cost of housing up even higher for new homebuyers.

How to become a real estate agent

What do you need to know to do this job?


By the end of 2015, the housing market looked more robust than it had in years, which means more people are turning to a career in real estate. When you get your real estate license, you become responsible for one of the biggest decisions your clients will ever make. In every state, the process for how to become a real estate agent is different, but there are some constants across the industry: you’ll need to use technology to keep up with the fast pace and consumer demands, you’ll need to be able to adapt; and you’ll need to develop people skills if you don’t already have them. It’s not an easy career, but it’s a rewarding one.

So how do you know if a career as a real estate agent is right for you — and what it takes to get there? Here are answers to some frequently asked questions.

What do I need to know before getting into real estate?

What is a real estate agent?

In the U.S., a real estate agent is a person licensed to represent a buyer or seller in a property transaction. In exchange for representing the buyer or seller, agents are typically paid commission on the price of the property — though agent compensation varies from agent to agent and brokerage to brokerage.

Who licenses real estate agents?

Real estate agents are licensed by each state (and the District of Columbia). Although every state requires pre-licensing courses, the licensing requirements can vary widely from state to state.

How many real estate agents are there?

The Bureau of Labor Statistics reports that there are 337,400 real estate agents and 83,900 real estate brokers — a total of 421,300 operatives.

What’s the difference between a real estate agent and a Realtor?

All real estate agents are licensed by the state, but not all real estate agents are Realtors. A Realtor pays dues to the National Association of Realtors(NAR) and is entitled to the benefits of membership, including access to different technologies and transaction management services, access to health/dental and personal property insurance, banking services and discounts.

Realtor listings are posted for free on realtor.com, and Realtors also have access to NAR’s training programs, statistics and research. NAR advocates politically on behalf of Realtors, as well; its lobbying group is considered one of the most powerful in the country.

NAR also has constructed a code of ethics and standards of practice. It asks Realtors to complete 150 minutes of ethics training that meets its guidelines within a four-year cycle. The current cycle ends Dec. 31, 2016. Realtors may complete their ethical training through classes offered at local Realtor associations, correspondence, online courses or home study.

How many Realtors are there?

NAR reported that it had 1,160,392 members as of Sept. 30, 2015.

That’s a lot more than 421,300. Why is that?

The Bureau of Labor Statistics number is a projection “predicated on assumptions including a 5.2 percent unemployment rate in 2024 and labor productivity growth of 1.8 percent annually over the projected period.” This estimate is based on the Occupational Employment Handbook, which relies on the Occupational Employment Statistics survey, “a semi-annual mail survey of non-farm establishments.”

On the other hand, NAR membership comprises people “who are involved in residential and commercial real estate as brokers, salespeople, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry.”

What does the average real estate agent make?

The median pay for real estate brokers and sales agents was $43,430 per year in 2014, according to the Bureau of Labor Statistics.

Anything else I should know before I consider getting my license?

The real estate industry is facing some challenges — consumers are not required to use their services, for example, and some technological advances have made it easier for sellers and buyers to work without agents.

There are other threats to the industry, too. More than anything, real estate industry professionals themselves say that the biggest threat to the industry is low-quality agents.

How do I get my real estate license?

How long does it take to become a real estate agent?

It varies from state to state. Because the licensing requirements are different, in some states, the pre-licensing courses can be completed and the exam taken in a matter of weeks. For example, the pre-licensing courses can be finished in 63 hours in Florida. In California, three college-level pre-licensing courses must be taken — a total of 135 hours.

Are there pre-requirements?

Typically, you must be at least 18 years old, have a high school diploma or equivalent, and complete the real estate courses and pass the exam.

How much does it cost to become a real estate agent?

New agents should expect to pay for their licensing classes and a fee for every time they take the real estate licensing exam. Again, those fees vary from state to state.

There are a number of other fees affiliated with becoming a real estate agent. These include MLS and/or Association fees, errors and omissions (E&O) insurance, lockboxes, annual brokerage accounting fees, brokerage materials fees (for badges, orientation binders and so on).

And you will need to spend money in order to grow your business in real estate. You will need transportation and a cell phone at the very least — at best, you will have your own marketing budget and lead generation budget. There are office supplies and business cards to be considered, too.

What happens if I fail the real estate exam?

You can retake the real estate exam if you fail. Again, rules vary state by state, but there is generally no limit to the number of times you can take the exam before you pass it. You must wait until you have been notified that you failed the exam before you apply to re-take it in most states.

What happens if you practice real estate without a license?

Practicing real estate without a license — selling property that isn’t yours on behalf of a client — is illegal. If caught, at best, you will be fined. At worse, you will face jail time. Like licensing requirements, consequences vary from state to state.

What else do I need to become a real estate agent?

Real estate agents must find a sponsoring broker to supervise their sales. Some new agents choose to find a sponsoring broker before they take the licensing exam; others wait until they have passed the exam to find a sponsoring broker.

Do I need a broker?

What’s the difference between a real estate agent and a broker?

Real estate brokers are also licensed by the state. The licensing requirements are more rigorous for real estate brokers than for agents, but those requirements also vary state-by-state.

You must usually work for between one and three years as an agent before you can become a broker.

What should I know about my sponsoring broker?

New agents should ask their sponsoring brokers questions about trainingand support that the broker offers — mentoring or shadowing more experienced agents, for example. New agents will also want to ask about any monthly desk fees at the brokerage and the commission splits they can expect in their first couple of years on the job.

Other questions to ask include additional fees (transaction fees, association dues), marketing or advertising options (what will the brokerage provide, and what might you want to add yourself), the office culture and environment, referral policies, information about any regular sales meetings and how receptionists manage and distribute phone calls are all good things to know about your potential new brokerage.

Will I be considered a brokerage employee or an independent contractor?

This depends on the brokerage. Some brokerages (like Redfin) offer salaries and benefits for employees.

Most brokerages, however, hire real estate agents as independent contractors. This could mean that your health insurance coverage and other benefits that are typically picked up by full-time employers might be considered your responsibility.

What do I need to do to get clients?

Know your strengths and weaknesses, and act on that knowledge

If you make friends easily and have no problems approaching new people, but you aren’t very savvy about marketing, then you might want to look for a sponsoring broker who can help you market yourself but who’s relatively hands-off when it comes to generating new leads (finding new clients).

On the flip side, if you’re an introvert who finds it difficult to strike up conversations with people you don’t know very well, but you’re skilled at writing copy and putting together a marketing plan, then your ideal sponsoring broker will help you with lead generation or referrals but will let you manage your own marketing.

You will need to be able to provide advice about market conditions and listing price, host open house events, prepare documents and manage negotiations for your clients. Emotions can run high, so it will help to have skills solving problems and soothing ruffled feathers.

Choose the right technology

There are hundreds of tech tools available to help make your job as an agent easier. These include tools to help you manage your lead generation, client documents, listing videos, listing photos, open houses, business marketing and many, many more.

How do you know which technology is right for you? Pick tools that you will use. If there’s a free version or demo available, try it before you commit to spending money for something.