Month: May 2022

What is the MLS?

The real estate market is competitive, and the business is unique in that competitors must also cooperate with each other to ensure a successful transaction. MLS systems facilitate that cooperation. 

In the late 1800s, real estate brokers regularly gathered at the offices of their local associations to share information about properties they were trying to sell. They agreed to compensate other brokers who helped sell those properties, and the first MLS was born, based on a fundamental principle that’s unique to organized real estate: Help me sell my inventory and I’ll help you sell yours.

The Multiple Listing Service (MLS) is a tool that allows Realtors to work with other agents in their region, even if they work for competing agencies or brokerages. There are currently 700-800 regional MLS databases that are created and funded by local real estate professionals to facilitate property sales.

In most cases, MLS content is provided free of charge to the public by participating brokerages.  Some MLS data is not made public in order to ensure seller privacy or safety, such as seller contact information and home vacancy status. For this reason, it’s beneficial to work with a real estate professional who can help you navigate all information available on the MLS.

Your ability to search for the right home is arguably the most important step. Homebuyers and sellers are able to work closely with a trusted real estate professional of their choice while seeing the best outcomes for their real estate transactions. Without the MLS, many agencies would only showcase properties listed by their agents, severely limiting a homebuyer’s ability to search for all homes available in an area. The MLS, then, is a helpful tool for both homebuyers and sellers: It allows sellers the widest exposure in advertising their homes for sale while allowing buyers to search listings across many agencies or brokerages with ease.

Because agents and brokers pay membership to their local MLS, home sellers must work with an agent in order to have their property listed in the MLS. For Sale by Owner (FSBO) homes are not listed in the MLS. In addition to including standard information like square footage and photos, agents are also able to upload and download documents to the MLS, including seller disclosures and HOA regulations.

The Bottom Line: The MLS can help all parties involved in a real estate transaction by providing important information on homes for sale and getting those homes more exposure. However, it’s only accessible to real estate professionals, which is one of the many reasons why you should work with a real estate agent.

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Closing Expectations

Your offer was accepted, the inspection is over, and anything that needed to be resolved has been. The only thing standing between you and moving into your new home is the closing table.  What should you expect?

PREPARING FOR THE CLOSING DATE:

Depending on how condensed your contract period is, you may receive the final settlement and HUD-1 statements with enough time to review them with your lender and real estate broker.  It isn’t uncommon, with the volume of new mortgages and refinances, to receive these documents just hours before closing.  Either way, you will have time at the closing table to have all your questions answered about the details and account for every penny of the transaction.

Prior to your closing, you will do a final walk-through of your new home with your broker to inspect its condition.  This is your opportunity to ensure all agreed-upon inspection items have been completed, the condition of the home hasn’t changed from when you went under contract, and all contractual items are in the home.  The final walk-through is not an opportunity to re-inspect the home.

WHAT TO BRING TO CLOSING

Make sure to bring a form of government-issued identification for the closing agent to verify you are, in fact, you.

You must bring funds that are immediately available for withdrawal, which includes wire transfers, cashier’s checks, or teller’s checks.  Title companies vary slightly as to what they will accept as good funds, so ask your Realtor before you gather documents. The actual dollar amount you will be required to bring to closing will be derived from the settlement statement prepared by the title company.

AT THE CLOSING TABLE

The closing is usually held at a title company location that is convenient to both parties of the transaction.  Most closings will include the seller and seller’s agent, buyer and buyer’s agent, lender, and the closing agent.  With more complex transactions there may be attorneys present for one or both sides.

There are three parts of the closing, the first two parts pertain to transferring the real estate from the seller to the buyer.  This includes all the documentation and accounting for the transfer.  If you are borrowing money, you will need to complete the third and final part, paying for the home.  This portion will contain the majority of documents and disclosures required by your lender.  Your lender should be present to answer any questions you may have during this section.

THE KEYS!!

Once all the documents have been successfully signed and all money dispersed, you are now the proud new owner of the home!  This will also be a good opportunity to ask the seller any additional questions you may have about your new property.  It is also a good idea to exchange contact information in case questions arise during the move-in process.

THE BOTTOM LINE

Though it may seem like the closing process is a lot of complex work, it’s worth the time and effort to get things right instead of hurrying up and signing a deal you don’t understand. Be wary of any pressure to close the deal fast. Real estate agents and other entities helping you will want their cut, but they won’t be around to care about the problems you could face in the long run from a bad deal.

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Upgrades For Your Home That Will Save Money and Energy

Programmable Thermostats: Installing a programmable thermostat is one of the easiest ways to save energy, cut utility bills and to “green your home”. It’s suggested that you program and set your thermostat to 68 degrees in cold weather and 78 degrees in warm weather. Your HVAC system will only kick on when it reaches the designated temperatures in your house. You won’t have to think about adjusting the thermostat again; it does it all for you. The great news is that you can also expect to cut 3 to 5 percent off of your energy bill for every degree you set your thermostat below 68 in the winter and above 78 in the summer

Low-flow Plumbing Fixtures: Low-flow plumbing may not seem like a vital efficiency improvement. However, considering that homeowners use showers, faucets, and toilets multiple times every day, such an upgrade makes perfect sense.

The Environmental Protection Agency (EPA) puts the savings into perspective: if every American switched to low-flow fixtures, the country would collectively save about $8 billion on water costs per year. Those considering a switch to low-flow models should also consider the cost of heating water.

Because hot water must be warmed by electricity or natural gas, this adds to the energy bill. Low-flow equipment, especially showerheads, can reduce these extra energy costs because they use less hot water.

ENERGY STAR Appliances: Energy Star is a government-backed program for identifying products and appliances that meet certain energy efficiency standards. It was established in 1992 by the US Environmental Protection Agency as a way to promote products designed to use less energy and, hopefully, reduce costs for consumers.

By looking for the Energy Star label, you can ensure that the product you end up buying is more energy-efficient than most alternatives. This will save you money and help to lower your impact on the environment.

HVAC System Upgrades: If you are making frequent repairs on your HVAC system or enduring hot and cold spells in some of the rooms in your home, it’s probably time to replace the old inefficient system with an Energy Star-rated model. Expect to save about $200 per year on your utility bill, plus make your house far more comfortable.

You can also save money by dividing your heating and cooling system into multiple zones throughout your home. You’ll have to purchase more than one HVAC system, but in a larger home it makes sense, because you can control the temperatures of each zone individually, rather than from a single-point censor.

Landscaping:  New and appropriate landscaping can add to the energy efficiency of your home by providing shade in the summer months and insulation in the winter months. The EPA suggests planting trees that lose their leaves on the western and southern sides of your home to support this fact. In the summer, the trees will provide shade and block infrared radiation, keeping your house cooler. In the winter, when the trees lose their leaves, they will allow sunlight to reach the windows and warm your home. Planting native trees is best, because they will thrive in your city’s environment. Additionally, the plants and other landscaping can help support the environment and wildlife around your home. 

Tankless Water Heater: Before you take a shower do you wait awhile before the hot water comes out? All cold water went down the drain with your money. You’re also paying for your water heater to store, heat and reheat a supply of water in the tank. Enjoy instant hot water with a tankless water heater. Only the water that is needed as it passes through an electric coil is used. This eliminates excess energy costs and wasted energy associated with a tank, often saving a reported 50 percent on your energy bill 

The Bottom Line: Maintaining a home doesn’t have to be expensive. Since the recurring monthly costs aren’t fixed, there is a lot you can do to keep them down. These home improvement investments will upgrade your home, save you money and increase the value of your home.

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Smart Pricing to Sell

When it’s time to sell your home, hiring the most experienced Realtor is key to getting it sold fast. How you price your home will help determine if it sits or sells fast. The most important thing a skilled realtor will do is name the price. Too many agents tell sellers what they want to hear instead of what they need to hear to sell their home. And, in this strong sellers’ market, it’s still possible to overprice your listing.

Pricing a home is a complex calculation that takes training, understanding of the market, and researching all the comparable sales in (comps). When a home is listed too high, buyers pass on even looking at it. It will end up being on the market for a long period of time and the price will eventually be forced to be lowered to be competitive. But, by that time buyers assume there must be something wrong with the home and it will gain a bad reputation and continue to be bypassed. Even the buyers who do look at it will lowball the new price and the home will end up being sold for less than what it would have had you priced it correctly to being with. Homes sell for the most money when they are on the market for less than 30 days in almost all markets.

You don’t want your home priced lower than it is worth, but you want it low enough to create excitement among buyers and possibly even multiple offers coming in. This is an excellent option if you want to sell a home fast.

A good Realtor will make sure that the seller’s home shows up in online searches. To make sure this happens, a proper price is paramount. If the neighborhood comps are lower, the house may not show up if it’s even slightly higher! For instance, if the comps top out at $300,000, and the buyer wants a 4 bedroom home in that neighborhood under $300,000, the house listed at $325,000 won’t even show up in the search.

Pricing a home to sell properly is a skill that the best Realtors have. It is the most critical piece to selling your home. The right price is 75% of the marketing for any home on the market. It’s what will attract buyers. So, when you are interviewing Realtors to sell your home, ask the question “what’s my home worth” and know they can’t tell you what it will sell for but expect comparable sales, pending sales, and active sales. Finally, ask to see a track record of their previous listings – the original price and the final sale number. And, don’t be afraid to ask for a personal guarantee from them.

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