Month: March 2022

Buy the Least Expensive Home in the Best Neighborhood

Imagine finding the home of your dreams for sale and it’s the most expensive home on the street. And, it’s in your price range. Are you about to score!? Be careful. Making an offer on the best house in the neighborhood may not be economical.

Why should you not be the one with the best house? It makes a lot more sense—financially, anyway—to buy one of the lesser homes in the neighborhood. Every improvement you make will add to its value and increase your equity—and you’ll have a pretty high ceiling here, figuratively speaking. When you buy the lesser home in the neighborhood, it becomes much easier for you to increase the value of your real estate investment.

Not every single home that is purchased will result in a profit – real estate, like any other investment, is a gamble. Buying a home is often the biggest investment you’ll ever make. So, regardless of everything, you still should look at it as that: an investment. Resale value should always stay top of mind. 

If you have the least expensive home in the neighborhood, the other homes will actually drive your home value up. But the opposite is also true. If you have the most expensive house, the other homes will drive your home value down. This is another reason why mid-range homes tend to have a higher price per square foot than the fancier homes down the street. 

If the market shifts, and it does about every 7 years, you may be stuck at the top of the market in your area. When times are tough, buyers will opt for a less expensive home in hopes of getting a better deal. 

Having a knowledgeable Realtor is so important.  They understand the importance of resale value while you search for your home. They have all the market information you need to make a good decision. If there aren’t any comps to support the high price tag it will be harder to get a bank loan (unless you have cash!) Your Realtor, if you have found a great one, will ask the listing agent where he or she based the listing price. Normally listing agents will list homes based on past sales in the immediate market area unless the sellers themselves set the list price.

The Bottom Line: Why let lesser valued homes in the neighborhood drag yours down? Buy the smallest house in the best neighborhood and let the neighbors’ values bring yours up. A low-end house can be upgraded to your own specifications to increase the value to the average of the area.

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A Few of the Worst Home Selling Mistakes

Bad Photos: It all begins online today. Buyers are looking for their future homes on the web before they go see it in person. Do some homework and investigate – find the best Realtor to hire that is competent with their internet marketing strategy. Beautiful photos fall on your real estate agent. But! You should know that bad photos can be an impediment to the sale of your home. Thus, as a seller, it’s imperative that you must demand great photographs of your home. Most potential buyers in your market will be exposed to your home the first day it hits the market. Avoid “photos coming soon” and if you have to – wait a day or two for the perfect photographs.

Overpricing: The most common mistake sellers make. The Realtor you hire will suggest a price at which to list your home based on comparable homes that have already sold in the market. Overpricing a home just to see if you can score big is not a strategy for anyone really serious about selling. Overpricing a home will lead to missed opportunities with buyers that looking in the range at which your home should be listed.

The first 30 days your home is on the market is when there are the most eyeballs looking and you have the most leverage as a seller. If your home is overpriced during this timeline to “see what kind of offer you can get” you will lose traffic and attention during the critical 30-day window.

Too Much Clutter: If you have hired the best Realtor, he/she will have absolutely walked through your home with you and directed on what and how to declutter. People feel space more than anything.  That’s why ten-foot ceilings make houses feel bigger than eight-foot ceilings, even though the square footage is the same.

Decluttering has the same impact.  It increases the perceived size of your home.  Whether it’s removing pictures from hallways, kitchen appliances from the counter, or removing the bathroom hairdryer, all of these things consume the perceived space in your home.  The phrase “less is more” is really true when it comes to showing your home.  It makes a difference in your buyers’ perception of how big your house feels.

Emotional Attachment: You love your house. You have a million memories stored. However, it’s time to emotionally detach let a new family take over your house when you’re selling. Do your best not to be offended by a hopeful buyer’s demands. Be willing to adjust in reasonable ways you might not want to in order to make the sale. Don’t ruin a selling opportunity because you refuse to leave a light fixture behind that the buyer really wants because you’re attached to it.

Making “Thrifty” Repairs: Even small defects can turn buyers off. If they walk through your home and find loose doorknobs, leaky faucets, or wall dings, they’ll wonder if you’ve been neglecting bigger issues in the home as well. Some sellers ignore major repairs in hopes of closing the sale before anyone notices. However, if the home inspector catches detrimental damage, it will likely halt the sale until repairs or an agreement can be made.

Hiring the Wrong Realtor: When listing a home much of the success lies with the real estate agent you choose. Don’t hire the first one you meet. Search their online presence. If friends are giving you names to get in touch with ask, “why?”. Why are they the best? What have they done that was impressive? Many sellers will hire an agent based solely on the list price given by the agent, only to be thoroughly frustrated and disappointed down the road. 

Look for an agent that is compatible and communicates effectively who backs up what they say with data and finally who has a strong marketing plan. Experience matters.

The Bottom Line: There will be challenges and obstacles along the way as you list your home for sale. With the right guidance, you can avoid these common home selling mistakes. Your decision on a Realtor will have a major impact on the results you get and how much money you walk away with.

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Enhance Your Home’s Value Quickly and Inexpensively

If you are ready to sell, there are plenty of ways of increasing your home’s value that doesn’t require an extensive renovation project or a ton of money.

Your ultimate goal is to gain the maximum return on investment in the least amount of time. DIY projects can help to accomplish the look you want while staying within your budget. Whatever your circumstances are for renovating, here are a few cost-effective home improvement tips to increase the value of your home. 

1. PAINT

One of the most simple, cost-effective improvements of all is paint! Paint makes the walls in your home look brand new! It’s easy, affordable, and incredibly valuable. By painting over all the scuffs and nail holes on your walls, you’re going to make your entire house feel cleaner and newer instantly.

To maximize value, choose a light, neutral color. By going with a light color, you help the home appear larger. And by sticking with neutral tones, you help the home appeal to as many buyers as possible.  

2. REPLACE FIXTURES

Outdating lighting and plumbing fixtures can drag down the entire vibe of a home. But by replacing the old fixtures with either timeless or trendy ones, you breathe fresh life into the space. 

If you’re planning to sell in the very near future, trendy fixtures will probably get you the best bang for your buck. But if it will be a little while before you sell, and you don’t want to have to replace the fixtures again before listing your home, it’s probably best to stick with timeless fixtures that won’t instantly date themselves. 

Make sure your fixtures match the property in both style and quality. HIgh-end homes require more expensive lighting fixtures while mid-range homes can be updated with less expensive fixtures.

3. GET SMART

Smart home technology has become increasingly accessible over the past decade and is in high demand by buyers. Smart locks, security cameras, thermostats, and lighting all make your home more valuable, especially to tech-savvy buyers.

These systems can usually be installed without hiring a technician, so you won’t need to wait weeks for an installer to come out. Instead, you can boost your home’s value this weekend by installing these smart systems yourself. 

4. BOOST CURB APPEAL

In a world where first impressions are everything, the entrance to your home is a big deal. Not only is this how people will perceive your home when arriving in person, but it also sets the tone for your listing photos when buyers view your home online. 

Cleaning the front entrance, adding a fresh coat of paint to the front door, and sprucing up the landscaping in the front of the home all enhance your home’s perceived value without much time, money, or effort.

5. INCREASE ENERGY-EFFICIENCY

Buyers love energy-efficient homes. Many buyers are environmentally conscious and appreciate homes that work to conserve energy. And buyers are also aware of the cost savings that accompany energy-efficient homes. Buyers are usually willing to pay a little more for a home when they know they can save money on their utility bills month after month.

The Bottom Line: If you are considering increasing your home’s value so you can sell for top dollar in the near future, reach out to the best Realtor in your neighborhood.

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Title Problems Revisited

Every property has a history of owners.  That history is called an ownership chain, or more often, a title chain.  When a link in the chain has a problem, it’s called a title defect, or a cloud on title.

When purchasing a home, you may view title insurance as an unnecessary cost.  However, title insurance provides protection for both the seller and the buyer against title defects. Title insurance, as the name implies, insures against property title defects or ownership defects.  Some title problems may not become apparent for years. Others can hinder the sale of your home, and may even limit who you can sell your home to.

Here are some common issues that a title search mighty uncover:

PUBLIC RECORDS: Mistakes and errors happen but you do not want it affecting your home. The errors can be disastrous and cause you an undue financial burden to resolve. Simple clerical or filing errors could affect the deed or survey of your property.

UNKNOWN LIENS: Prior owners of your property may have left unpaid bills. And, even though the former debt is not your own, banks or other financing companies can place liens on your property for unpaid debts even after you have closed on the sale. This is an especially worrisome issue with distressed properties.

ILLEGAL DEEDS: While the chain of title on your property may appear perfectly sound, it’s possible that a prior deed was made by an undocumented immigrant, a minor, a person of unsound mind, or one who is reported single but in actuality married. These instances may affect the enforceability of prior deeds, affecting prior (and possibly present) ownership.

MISSING HEIRS: When a person dies, the ownership of their home may fall to their heirs or those named within their will. However, those heirs are sometimes missing or unknown at the time of death. Other times, family members may contest the will for their own property rights. These scenarios – which can happen long after you have purchased the property – may affect your rights to the property.

FORGERIES: Unfortunately, we don’t live in a completely honest world. Sometimes forged or fabricated documents that affect property ownership are filed within public records, obscuring the rightful ownership of the property. Once these forgeries come to light, your rights to your home may be in jeopardy.

UNDISCOVERED ENCUMBRANCES:  At the time that you purchase your home, you may not know that a third party holds a claim to all or part of your property – due to a former mortgage or lien, or non-financial claims, like restrictions or covenants limiting the use of your property.

UNKNOWN EASEMENTS: You may own your new home and its surrounding land, but an unknown easement may prohibit you from using it as you’d like or could allow government agencies, businesses, or other parties access to all or portions of your property. While usually non-financial issues, easements can still affect your right to enjoy your property.

BOUNDARY/SURVEY DISPUTES: You may have seen several surveys of your property prior to purchasing, however, other surveys may exist that show differing boundaries. Therefore, a neighbor or other party may be able to claim ownership of a portion of your property.

UNDISCOVERED WILL: When a property owner dies with no apparent will or heir, the state may sell his or her assets, including the home. When you purchase such a home, you assume your rights as the owner. However, even years later, the deceased owner’s will may come to light and your rights to the property may be seriously jeopardized.

The Bottom Line: The experts at Title First oversee and perform thousands of closings each year. When using Title First, you can sign confidently on the dotted line knowing that all details of your title transfer and closing are in proper order. We are here to answer any questions you may have about buying or selling a home, and our team will guide you through the entire process.

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Emotionally Detaching From Your Home to Sell

According to the National Association of Realtors, the average number of years people stay in their homes is anywhere from 10-20 years. Owners and their families end up having great and often life-changing events and memories that happen under their roof. Their home is the biggest investment made and they become attached emotionally.

Having buyers come in and walk through their home, opening closets, cabinets, and drawers, walking through the bedrooms, looking behind furniture, and then criticizing (!!!) their beloved home can be soul-crushing.

Thus, the first hurdle to overcome after having made the decision to sell is to let go emotionally. Time to start looking at it as a positive financial opportunity and become distant from all the aspects of the property where memories were created. It’s hard pulling hearts away from recalling the moments; the paint colors, the perfect carpeting picked, a child’s first bedroom, or a dining room that held so many family dinners. The secret is to acknowledge that selling the home is going to be stressful and emotional upfront and hopefully that will enable good decisions going forward.

Once personal items like pictures, knick-knacks, etc. are removed to begin staging which it won’t feel as much like “home”. A good Realtor will give great recommendations to help make the home more neutral – maybe painting or pulling carpet – all of which will make the home seem more like a product that needs to sell and help to remove emotion.

It’s common for a seller to overprice their home when they are emotionally attached. The price of the home should be based on the market and the comparable properties, not the value the owner, someone with memories, puts on the home. An experienced Realtor will establish the price.

If a low offer should come in, it’s best to look at it as good news! Someone loves the home enough to even make an offer. The Realtor will negotiate and learn what the seller likes and dislikes keeping the owner out of that process while simultaneously keeping emotions out of the equation.

The Bottom Line: Make sure you are truly ready to sell your home. Make a list of the pros and cons of why you want to move and evaluate. Have an experienced Realtor help you once you have made the decision and realize that sentimental value does not translate to monetary value so you will need help pricing your home accordingly. Keep your emotions in check, make a clean break, and put your energy and time into making your new house the home of your dreams!

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