What Are The Facts About Land Contracts? – Kristy Flavin
On this episode of The Closing Table, we sat down with Kristy Flavin!
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 Kristy Flavin…
The conversation began with a word association icebreaker on commission, land contract, and more. Kristy then reveals aspects of her life beyond the realm of real estate. Outside of her professional pursuits, she is a dedicated mother to two girls, sharing a love for sports that stems from her own college basketball days. Additionally, she cherishes the opportunity to travel, both with and without her children, as a means of exploration and creating lasting memories.
Kristy’s primary market lies within Southeast Michigan, with the flexibility to serve clients across the entire state. Metro Detroit accounts for the majority of her business, known for its vibrant atmosphere and notable landmarks. Economically, the local market showcases remarkable strength, albeit with limited inventory. However, signs of improvement in certain areas are becoming evident. Homes in this region spend an average of only 8 days on the market, highlighting the high demand. Housing prices remain robust, having experienced a slight increase after a temporary dip. Notably, Kristy is delighted to share that this year has witnessed her best start in comparison to the previous five years.
Kevin then asked Kristy about one of her most remarkable instances of obtaining a client through an unconventional route. She shared that it occurred when a fellow agent from her office approached her. This agent shared that they had a close relative who was in need of real estate services but couldn’t work with them directly due to personal reasons. Recognizing the opportunity, Kristy happily accepted the referral and proceeded to work with the client. This unique lead turned out to be a great experience, proving that non-traditional avenues can sometimes lead to fruitful outcomes in the real estate industry.
Next, Kristy expresses her deep fondness for working with first-time homebuyers, as they hold a special place in her heart. One particular couple she assisted stands out in her memory. Both working in the health field at the University of Michigan, they needed a home within a reasonable driving distance to Ann Arbor due to their demanding schedules. However, they also desired to reside amidst nature rather than the typical suburban setting and sought a property in a good school district. With unwavering determination, Kristy managed to discover a small, charming starter home located by a picturesque lake, offering the most breathtaking views. Additionally, she was able to refer them to the daycare and preschool that her own daughters had attended when she resided in that area. Being a part of this couple’s journey as they embarked on parenthood and created new memories in their perfect family home was an incredibly heartwarming experience for Kristy.
While reflecting on her past experiences, Kristy candidly shares an encounter with a couple, one of whom happened to be an engineer. She emphasizes that her intention is not to generalize or hold biases against engineers, but in this particular instance, it proved challenging to show them houses. Regardless of presenting them with the best properties available, they meticulously scrutinized every detail, leading to failed inspections over minor concerns. This experience was undeniably tough for Kristy, as they ultimately decided to part ways without finding a suitable home together. However, she emphasizes that despite the outcome, there was no ill will between them. It simply became apparent that they were not an ideal fit. Throughout the process, Kristy maintained professionalism, understanding that different clients have unique needs and preferences that must be respected.
Kristy then expresses her passion for assisting investors and recalls a particular client who was seeking to invest in a property. One crucial aspect to understand about investment properties is that they are not intended for personal residence. Throughout the property search, the client would often express concerns about specific features or conditions. In these instances, Kristy took the opportunity to explain that as an investment property, the focus would be on enhancing its appeal for future tenants or fulfilling the investor’s specific goals. The conversations would then shift toward discussions of numbers and return on investment (ROI). By carefully evaluating potential properties, considering market trends, and identifying areas of growth and potential rental demand, Kristy helped guide her client towards a successful investment outcome. The key factors that contributed to their investment success included thorough market research, strategic property selection, and a clear understanding of the client’s financial goals.
Following that, Kristy acknowledges her travels to various destinations like Italy, Africa, and England, where she has been exposed to diverse cultures and architectural styles. While she may not specifically pick up on design elements, she deeply appreciates the diversity of these cultures. Working in Southeast Michigan, which boasts a richly diverse population, Kristy leverages her travel experiences to better understand and connect with clients from different countries or cultural backgrounds. She applies the knowledge and insights gained from her travels to provide a more nuanced and personalized approach when assisting clients in her city.
The two then talked about land contracts and how real estate agents navigate the process. According to Kristy, the success of a land contract depends on the willingness of both the seller and the buyer to reach a mutually beneficial agreement. For instance, in a recent transaction involving the sale of a lakehouse priced around $800,000, a potential buyer expressed interest in a land contract. The seller, who did not have a mortgage on the property and was not in a hurry to receive the entire sum upfront, agreed to consider the land contract option. However, the seller stipulated a significant down payment and a short payoff time. In this scenario, if the buyer agreed to put down $200,000 and pay off the land contract in two years, with an agreed-upon interest rate, it would be advantageous for the seller from a tax perspective. The buyer, facing challenges in securing traditional financing, found the land contract arrangement appealing. Kristy emphasizes the importance of involving an attorney to review and ensure the clarity of the contract language, both for protection and to establish a transparent agreement.
The conversation wraps up with Kristy advising aspiring homeowners to begin by preparing themselves. This entails seeking education either independently or from a trusted source about homeownership. It is crucial to approach a bank for pre-approval and determine the loan amount for which one qualifies. Saving a substantial down payment is also vital to secure the best loan program possible. Once prepared, engaging a qualified real estate agent becomes essential to navigate the homebuying process correctly. Location is a critical factor to consider, as it cannot be changed. While one can renovate and personalize a house, the location remains constant. Avoiding overextension is also crucial; if the lender suggests a qualification for a $300,000 loan, it is advisable to calculate the monthly payments and aim for a lower budget to ensure financial comfort. Lastly, it may sound cliché, but hiring an agent is paramount. An agent plays a crucial role in educating the buyer, providing clear communication, and ensuring they work diligently on the buyer’s behalf, rather than merely pursuing a commission.
Check out Kristy Flavin:
Facebook: https://www.facebook.com/kristy.sholesflavin
Facebook Business Page: https://www.facebook.com/profile.php?id=100064139109191
Instagram: https://www.instagram.com/kristy_flavin/
If you loved this episode subscribe so you never miss one! Want more The Closing Table content? Head over to our blog.