What Are The Benefits Of Having A Realtor With A Mortgage License? – Sonni Harvin
On this episode of The Closing Table, we sat down with Sonni Harvin!
To watch the full episode, check it out on YouTube below. In the meantime, here’s a summary of the conversation…
Here’s what you missed from Sonni Harvin…
The conversation began with a fill-in-the-blank icebreaker on the key to longevity as a realtor, what makes a neighborhood more valuable, and more. Sonni, who is known for her expertise in real estate, is much more than just a real estate professional. She introduces herself as an avid traveler and someone who genuinely believes in the power of kindness as a guiding principle in life.
Drawing from her experience of nearly eight years in the industry, Sonni emphasizes that her current focus revolves around referrals. She notes that the prevailing theme in the market is intense competition. Although there was a lull in activity from November to February, things picked up significantly by the end of March. Currently, the market is characterized by competitive offers, with buyers often resorting to tactics like overpricing, appraisal guarantees, and other strategies to stand out. The only significant factor that initially deterred some buyers was interest rates, but it seems that the market has now accepted that rates are unlikely to decrease. Sonni primarily serves the areas of Wayne, Oakland, and Macomb.
As a licensed realtor and mortgage loan originator, Sonni effectively combines her knowledge of mortgage origination with her expertise in the real estate profession to benefit her clients. She leverages this dual expertise in several ways to provide valuable guidance and support. One way Sonni utilizes her understanding of mortgage origination is by emphasizing the importance of getting pre-approved to her clients. Her comprehensive knowledge of the mortgage process allows her to highlight the significance of pre-approval and caution against the potential pitfalls that can occur when clients begin house hunting before securing pre-approval. By doing so, Sonni establishes credibility and ensures her clients understand the crucial steps to take before embarking on their home search.
Furthermore, Sonni recognizes that each client’s situation is unique, and people come with different financial circumstances. Building relationships with a variety of lenders allows her to cater to her clients’ specific needs and offer them a range of mortgage products. This flexibility ensures that Sonni can provide her clients with suitable options and assist them in finding the best financing solution for their particular situation.
Addressing consumer concerns about fluctuating interest rates, Sonni introduces the concept of rate locks to potential buyers. A rate lock period typically lasts between 30 to 60 days. She explains that when interest rates experience a slight dip, it presents an opportune time for buyers to take advantage of favorable rates while they continue their home search. By securing a rate lock during this period, buyers gain peace of mind knowing what their payment will be based on the locked-in rate, even if they are still in the process of finding their ideal home. This knowledge can provide buyers with a sense of comfort and confidence throughout their homebuying journey.
Not all mortgages receive the desired pre-approval, and Sonni sheds light on common reasons why mortgage applications may be denied. One significant factor that can lead to denial is the debt-to-income ratio. Sonni personally experienced this when she had multiple properties that appeared on her credit report, resulting in her own denial. Another reason for denial is inadequate employment verification, such as having a relatively short employment tenure or lacking reliable means to verify employment. Additionally, insufficient tax returns to support income can be a red flag for lenders. These factors are among the primary reasons why mortgage applications are often denied upfront. It is crucial to note that even after obtaining pre-approval, individuals should refrain from making significant financial decisions, such as purchasing a car or furniture, as such actions can negatively impact their mortgage approval.
In the real estate market, a significant portion of buyers, approximately 71%, are simultaneously sellers. Sonni employs various methods to ensure that her buying clients can sell their homes in a timely manner to have the necessary funds for their new purchase. One strategy she implements is offering free occupancy, allowing clients to stay in their current home for approximately 30 days after closing. Another option is a rent-back arrangement, where the buyer pays the mortgage while the sellers remain in the house for a specified period. Additionally, some mortgage shops offer solutions like equity loans or bridge loans, enabling individuals to access the equity in their current home to assist with the down payment and closing costs of their new home. These approaches provide flexibility and help facilitate a smooth transition for clients who are both buying and selling properties.
The value of a home is ultimately determined by what prospective buyers are willing to pay, but there are several critical factors that can influence that value. Sonni highlights these factors and their impact on home value. One crucial factor is the comparable sales (comps) in the area. Appraisals often rely on these comps to determine how a house’s value compares to other nearby homes. However, Sonni explains that in the current market, where buyers are willing to pay regardless of the comps, their influence becomes limited. While comps can provide a rough estimate of the appraisal value, appraisal guarantees, where buyers agree to pay a certain price regardless of the appraisal, have made comps less significant.
Ultimately, in this market, the perceived value of the house becomes more important. Factors such as school systems, taxes, and the physical attributes of the property, such as a well-designed kitchen and bathrooms, play a significant role in determining its value. Sonni advises her clients that the value of a property can be seen as a triangle comprising price, condition, and location. It’s essential to understand that it’s not always possible to have all three aspects perfectly aligned, so buyers need to prioritize the two factors that matter most to them.
As a real estate professional, Sonni has had numerous experiences that she takes pride in, but one memorable experience stands out—the very first sale she made. This particular sale solidified her belief that helping people find homes is her calling and ministry. The sale involved a military family originally from Wayne County, living in Italy, and facing relocation to the US due to redeployment. Communication was challenging and expensive, prompting Sonni to suggest using WhatsApp as a hassle-free and cost-effective means of staying in touch.
The family greatly appreciated her going above and beyond for their benefit. When they arrived in the US, Sonni showed them around ten homes in a single day, recognizing their limited time frame. Despite the demanding schedule, Sonni found joy in assisting them, and it reaffirmed her passion for her work as a real estate professional. This experience underscored her belief in homeownership as a means of investing in oneself and building wealth, further reinforcing her dedication to helping others find their dream homes.
Looking back on her journey, Sonni reflects on the key lessons she has learned about herself, the industry, and the importance of serving others. One important realization Sonni has had about herself is the truth behind the saying, “When you find something you love, you’ll never work a day in your life.” Unlike previous jobs that involved long commutes, which she despised, Sonni noticed that when driving for real estate, she didn’t mind the commute at all. Her focus was on reaching the destination, thinking about how her clients would perceive the house and how she could highlight its features. Sunday nights, which used to evoke a sense of dread, now excite her as she looks forward to exploring new strategies and opportunities for her business in the upcoming week. This self-awareness reinforces her passion for the real estate industry and her commitment to providing exceptional service to her clients.
Sonni has also learned the immense value of kindness in her interactions with others. In a world where unkindness can be prevalent, she has found that people appreciate and respond positively to genuine kindness. Additionally, patience has become a significant virtue for her, with real estate testing and strengthening her patience even further (second only to her kids). Having experienced multiple transactions as a customer before obtaining her license, Sonni has a unique perspective on understanding difficult customers. She can empathize with their intentions of seeking the best deal and being well-informed, given her previous experiences. This perspective allows her to relate to clients and navigate the process more effectively.
The conversation wraps up with Sonni sharing how these lessons profoundly influence her future goals and aspirations as a real estate entrepreneur. She has come to realize that the most significant return on investment (ROI) she receives is by nurturing her relationships with past clients. Rather than spending a substantial amount of money on various marketing strategies, Sonni believes that investing in her clients and showing them genuine care yields the best results. Her goal for the year is to be more present for her past clients, ensuring that they feel valued and remembered. By focusing on building strong connections and fostering client loyalty, she aims to establish herself as the go-to real estate professional in the minds of her clients, creating a lasting impression and referral network.
Check out Sonni Harvin:
Facebook: https://www.facebook.com/SonniHarvin
Facebook Business Page: https://www.facebook.com/sonnirealestateteam
Instagram: https://www.instagram.com/sonnirealestate/
Instagram Business Page: https://www.instagram.com/sonnirealestateteam/
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