The Sparrow Really Cares…Really.

Our three-part passion is (1) to care attentively for your home or property; (2) to enhance your home’s value and appreciation; (3) to maximize your annual investment income.

Meet Rayce Robinson, Our Go-To Mortgage Broker

Financing real estate deals these days can be challenging, but doable with the right people. We highly recommend our preferred mortgage broker Rayce Robinson – we’ve been working with him for 10 years! Check out his 4 minute video that covers the difference between an FHA loan and a conventional loan.

If you buy and own your house for a long time, the 5% down payment on the conventional loan will save you a lot of money over the FHA down payment of 3.5% (assuming you have good credit). Rayce has a wealth of information on his website, and is happy to answer any questions you may have about your mortgage options.

We encourage our clients to get prequalified with Rayce. You’re not committed to using him, but he is able to help us get your offer approved when you find the right house.

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Risky Business: Real Estate Auctions

risky business - blog

Have you seen the show Flip or Flop on HGTV? A husband and wife real estate team in California purchases homes at auctions with cash in order to renovate and resell them. We recently had a client who was interested in how real estate auctions work, and if they were a smart investment for her.

Home auctions and renovations produce high drama – they make for a good TV show, but are certainly a risky investment. Here are four risks you take when purchasing a home at auction:

Risk #1 – 10% Earnest Money

If you buy real estate at auction, you have to put 10% down and that is absolutely nonrefundable for any reason. You are committed from contract.

Risk #2 – No Inspections

All your inspections must be completed prior to bidding. You can’t really inspect the property before contract because usually the utilities are not on, and you are not guaranteed to win the bid. If you are buying with a loan, it is worse: no appraisal or loan contingency (and, you have to use the auction house’s lender).

Risk #3 – 5% Auction Fee

On top of your purchase price, they add a 5% auction fee. The auction house charges 5% premium and often an additional “technology fee” ($300 to $1000) for holding the auction to the buyer (in addition to whatever they charge the seller).

Risk #4 – Advantage to the Seller […]