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True Market Value of a Home

Every seller wants to sell their home for the best possible price – and as quickly as possible. To accomplish this requires taking a certain approach to the home sales process that many owners are unaware of. Getting the fair market value of your home starts with picking a real estate agent you can trust.

In real estate terms, the “market value” of a home is the most probable price that it will sell for, based on local housing market conditions and recent sales activity.  In the simplest sense, whatever someone is willing to pay for it is the true market value.

When searched online, you may find many estimates of your home that have been automatically generated based on public information like tax records, sales history, and comparable sales. Problem is, your home’s features and condition are not part of that equation. Every home and lot is unique, so having a real estate agent to help you select the most like-kind comps and add or subtract value based on differences in condition, updates, size and more.

A skilled Realtor will give you comparable properties with the same footage, same style of home, the similar number of bedrooms and bathrooms, located in the same area as your home and similar upgrades or updates.  A basic formula used: Comparable sales prices + value adding features = a good asking price

The Bottom Line:  Pricing your home too high and you may end up missing out on the buyers willing to pay the fair market value of your home, which results in reducing the price after 60 days. The buyers have usually moved on at that point or see your home as “unwanted” due to the long days on the market coupled with the price reductions. You may find your self “chasing the market down” – a term used when a home gets no offers (or too low offers) and continues to reduce the price to catch up with the market.

 

 

 

 

 

 

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Adding Value to Your Home

Want to increase the value of your home?  This can be done on the inside or the outside, from do-it-yourself for the smaller projects to hiring a contractor for the larger jobs. You can give your home a facelift a little at a time. Most homeowners don’t have the finances for a complete overhaul done all at once. To most people, their home is their largest investment and they would like to keep it in prime condition. Although the price of your home is mostly determined by the current market conditions, there are several things you can do to maximize the value of your home.

1. Decorative moldings can be used throughout the home to trim doors, floors, walls, windows, fireplaces, and ceilings. These moldings can be found at practically all home improvement stores and are fairly easy to install to enhance the look of any room.

2. An updated kitchen is what most potential buyers really want in their new home. Replacing the cabinets and countertops can be done gradually. You may also get creative and improve the old cabinets by painting them and then replacing knobs or handles.

3. Vinyl windows are a great way to increase the value of any house. These windows function better than the old wooden windows by opening for easy cleaning and they conserve more energy in the months when heat or central air will be used the most. They do not require painting and they can really make a house look beautiful.

4. Adding a new roof can make a very strong impression. The roof is the first thing people see and this can play a strong role in how much your house will sell for. A new sturdy roof provides protection from leaks that make ugly stains on the ceilings in your house that can lead to more damage.

5. Installing vinyl siding can add up to $10,000 to the value of your house. If you have fairly decent vinyl siding already, hire a power wash company to clean the siding and give your house a fresh new look.

6. Painting the interior rooms of your home can transform any house with a few coats of paint. You can be as colorful and creative as you like and you can take your time doing so, one room at a time.

7. Flooring absolutely makes the difference in any room. Whether you use linoleum, tile, wood or carpet, a new floor can make all the difference.

8. Adding new appliances such as a refrigerator, stove, dishwasher, washer, and dryer can greatly improve the value of your home. Along with adding a new water heater, furnace, and central air unit.

9. Exterior landscaping can enhance a home’s value. Keep your yard well maintained and strategically place flowers and shrubs. Installing or replacing a fence along your property line will also be a great attraction to potential buyers, especially if they have children and pets.

10. Adding a new deck is a great asset to the exterior look of your home. These can be made from a variety of wood and sealed to preserve the natural appearance.

Adding value to your home can be as simple and as affordable as you want it to be. Most improvements can be accomplished a little at a time, all depending on your time and budget. Smaller improvements can be made by simply adding potted plants along the stairs up to your freshly painted front door or by adding a small table or work of art in your foyer.

A visit to the home improvement store or looking through magazines can spark creativity when remodeling your home. Even if you have no idea where to start, one spark can lead to another and another,and then, before you know it, you have created a beautiful home that you may never want to leave!

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TITLE FIRST CAN ASSIST YOU IN PROMOTING YOUR BUSINESS WITH OUR FULL LINE OF MARKETING SOLUTIONS.

As a full-service title company, Title First believes in providing value-added services. Whether you’re a Realtor, lender, builder, law firm, buyer or seller, our helpful resources help you meet your goals.

Net-to-Seller:  This convenient tool helps you estimate your clients’ profit and presents it in a professional format that you can share.  Closing costs are calculated by adding up all various fees and charges a home seller pays when selling their home. For example, title insurance, home warranty, commissions, transfer tax, mortgage balance, prorated property taxes, mortgage balance and will also run various scenarios.

Full-Color Postcards, Imagery is powerful:  Stop working so hard. Title First has teamed up with PostcardBuilder.com to help you design, print, and mail your full-color, glossy, postcards. Choose from a variety of templates. Studies show that 56% of customers find print marketing to be the most trustworthy and are one of the best ways of exposure of your property and your business.

Property Profiles:  For your next listing, make a good impression on clients and prospective buyers with a bound presentation of property information.  Include some local market data that shows historic trends, how quickly homes are selling, or anything else that would be useful for the homeowner to understand how you will arrive at a price for their home. Explain  how the sales process works and how you will market their home in this presentation.

TitleFirstAgent Application:  Provide a higher level of service to your clients with a tool that enables you to give quick, easy estimates to any real estate financial questions. The app features net sheets, quick estimates, closing costs, prorated taxes and much more.  Watch the demo, here.

* Only available for Central Ohio

Listing Flyers:  Email us your MLS link, logo, and personal photo, and we will create a professional full-color info sheet for your listing.  This flyer, can help to sell your client’s home even when you aren’t there. Potential buyers will carry the flyer and all the information back to their home.

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Short Sale, Foreclosure and the Title to a Property

The most basic part of buying a new home is dealing with potential problems that may have been created by its previous owners. Short sales, foreclosures, bankruptcies and financial situations have added another element to the entire closing process that makes title insurance essential.  The title to a house is the document that proves that a person owns it.  Without that proof, the house can’t be sold or bought.

Title First Agency experts oversee and perform thousands of closings each year nationwide and ensure that all of the details of the title transfer and closing are in proper order. Unfortunately, at this time there are plenty of situations that could make problems with a title and complicate the process of buying the affected houses.  No matter why the house is being sold, its title problems must be cleaned up so they are not inherited by the buyer.

Short Sale: A short sale is when the lender agrees to let you sell your home for less than the outstanding mortgage debt. The proceeds from the sale pay off a portion of the mortgage balance and the lender releases the lien on the property. A title from a short sale is not always free and clear. A good Realtor will make sure to get a preliminary title search performed to determine the extent of outstanding legal obligations. If a home is bought without a clear title, the buyer could be responsible for the mechanic’s lien, which is a legal claim placed on a home to settle unpaid or partially paid contractor work,  any unsettled contractor liens, property-tax liens, IRS liens, homeowners’ association special assessment liens or even a second mortgage loan.

Foreclosure: Homeowners that can’t afford their home may decide to relinquish ownership and give the house to the bank that holds the mortgage. Mortgage foreclosures can cause a lot of issues with the chain of title. Sometimes, even though the owner loses their home, they may not actually lose the title to the property.  The property may have plenty of repair problems since financially distressed owners often let their properties fall into disrepair. From leaky basements, unpaid taxes,  to bills from homeowners’ associations to quarreling lenders – it can take some time to sort out who is owed what, how they will be paid, and when the title will finally be cleared. All buyers of foreclosed property need to protect themselves by making sure the title search shows that any previous mortgage was satisfied, canceled or otherwise released to avoid any future title problem.

The Bottom Line: There are dozens of potential barricades to clear title.  Buying or selling a home has become a complex transaction and you need a trusted title search company to guide you through the process. 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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FSBO Is Not Easy – Call A Realtor

Ready to sell your home? Of course, you want to make as much money as you can from the sale and you might be thinking your best plan to accomplish that is selling your home yourself – FSBO –  to avoid paying a real estate agent, which is understandable. But, we offer you a few reasons why hiring a good Realtor is a better idea.

Marketing a home is not easy:  Listing your home online doesn’t take much effort. Anyone can do that, which is why you must make your stand out and be noticed. A Realtor will have avenues to get the word out to other agents who are working in your price range and neighborhood, an option you won’t have to sell your home on your own. The Realtor’s very own website, Facebook & Instagram account will attract prospects that you simply won’t have the access to.

Qualifying a buyer is not easy:  There is a big difference between pre-approved for a mortgage and pre-qualified. A skilled Realtor will be able to find out whether the person that wants to see your house is qualified or just curious. Having to prepare your home to show takes a lot of work and you surely don’t want to put your life on hold while you ready your house for show – just for a curious neighbor. Realtors are trained to ask qualifying questions to determine the seriousness, qualification, and motivation of a person calling to see your home.

Staying unemotional about your home is not easy:  Selling your home and preparing to move is never easy and always an emotional process. A good Realtor will be there to buffer any situations that might occur because you might be letting your emotions take over. Most buyers know that an FSBO home has been priced by the seller and is quite often overpriced because they can’t detach themselves emotionally from their home. Savvy shoppers realize that after a while, sellers who can’t sell their home will finally hire a Realtor and the home will be on the market at the right price.  If they have the time to wait? They do. If not? They move on to another home.

Being home during the showing is not easy: Or smart. Nothing makes the buyers more uncomfortable than having the seller present when looking at a home. With FSBO you will have to be there touring your home with the potential buyer. More times than not, the showing will be rushed and some of your best selling points will be overlooked.

Negotiating is not easy: Especially if it’s your own home that you love and have emotional ties to. Negotiating is a complex matter and all transactions are unique.   Skilled Realtors know the laws, the contracts, the comparable sales, the closed sales that the banks usually look at when they decide to lend the money for the purchase, and the appraisal. There are plenty of points to negotiate on before the actual sale takes place. Repairs to the house, lawn upkeep, and even additions can be negotiated in the contract that may ultimately affect the price but can be negotiated almost entirely outside of the price discussion.  For every negotiating point, there’s a tactic to handle it best.

The bottom line:  Working without an agent requires a huge investment of time, knowledge, and effort. Besides separating your emotions from the home you love and possibly raised your family in, you should know how to stage it to sell, market it, negotiate and be able to accept a negative response from potential buyers. You can try to do it alone to save money, but hiring an agent has many advantages.  Interview and find the best Realtor in the area. Expect that they will be able to get the most exposure for your home, help you negotiate a better deal, and dedicate more time to your sale.  The right Realtor will bring expertise to the transaction, financially and legally.with many financial and legal

 

 

 

 

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Title Search for Buyers and Sellers

Buying or selling a home has become a complex transaction and you need a trusted title search company to guide you through the process. 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.

Title First will be responsible for ensuring that all the documents related to the ownership of a property are in order before the real estate transaction is performed. We will also provide an agent to oversee the entire closing process. Insurance will be furnished that protects the buyer and the lender if legal issues arise after the closing.

Once a home is bought, the buyer takes possession of the title for the property. Titles are at the local courthouses and the buyer does not own the property until his name appears on the title. There have been times when titles are not properly taken care of when a home changes hands, which means that if there are any liens on the property still have a claim on it. When this happens, the owner who did not sign off on the deed exchange still has a claim on the title.

Title First will perform searches on behalf of the property owner and the lender. We will review court records to guarantee that any liens on the property have been satisfied and that there are no outstanding claims. We also make sure that the seller that holds the title has the right to sell the property, and that it is has a clear title to close.

Title First will supervise over the loan closings and any other real estate transactions. We are then responsible for recording the title, mortgage and any other document related to the transaction at the local courthouse.

Title First will offer a title insurance policy that will provide coverage for property owners and buyers in the event of legal disputes related to the ownership of the property. However, these issues should not arise as all of the searches are done before the closing. But, there is always the occasion that something was overlooked that can threaten the interest of the owner or lender.

If you have a question or would like more information, please contact our title experts.  614-503-7434

 

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Real Estate Myths: Debunked

Are you ready to start looking for your first home?  Buying a home can seem intimidating, but it doesn’t have to be. Your home will likely be the biggest investment you’ll make in your life, which can also make it your biggest risk.  Don’t fall for the following myths:

Myth: If you pre-qualify for a loan, you will be approved for a mortgage

Loan approval involves an underwriter analyzing hundreds of pages of documentation, as well as considering other factors like the home appraisal report. A pre-qualification letter, however, is based on a quick, preliminary analysis of your credit report. Getting the letter is a recommended early step to show you’re a serious buyer, but it doesn’t mean a loan approval is guaranteed.

Myth: You need 20% for a down payment

There’s an array of loan options that don’t require 20 percent down — in fact, this amount is rare in today’s home buying market. According to the National Association of Realtors, 60 percent of millennials are putting just 6 percent down on average.

Saving for a big down payment can be advantageous, but you don’t want to deplete your savings or risk coming up short on your mortgage payment. Instead, you should save as much as possible for unexpected expenses.

Myth: You don’t need a real estate agent

Realtors are so important to the home buying process. Real estate agents get a commission, but the home buyer does not pay their fee. It is paid by the seller and is built into the selling price. Every seller expects to pay a buyers agent commission. If you show up without one thinking you can get a 3% discount on the price you will quickly regret it. Realtors help you get the lowest purchase price with their expertise and using comparables. Real estate contracts are long and often hard to understand for the average person. There are many items such as home appraisals, inspections, opt-out clauses, etc. that you need to know about in depth in order to protect yourself.

Myth: You need a perfect credit score

Your credit score doesn’t have to be flawless for you to be able to find a mortgage that fits your budget. It surprises many when they talk to a lender and realize that they can still qualify, even with a lower credit score. To offset potential negative factors on your credit history, you may need to have a larger down payment or meet other qualifications, but you don’t need to have a “perfect credit score” to qualify.

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Ohio Disclosure Rules

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When selling your home, you are obligated to disclose problems that could affect the property’s value or desirability in Ohio. Sellers and their Realtors are required to document any known defects to potential buyers. Sellers also have to take a proactive role by making written disclosures about the condition of the property.  Disclosure of a problem doesn’t mean you must repair or correct it. A buyer has an interest in getting the deal closed as well and oftentimes will overlook minor issues. More times than not, the disclosed item can become a point of negotiation between you and your buyer.

The Residential Property Disclosure Form is designed so that prospective home buyers are aware of known problems with the property during your ownership for a period not to exceed the past five years. Once the buyers have this in their hands, they have the right to rescind the purchase contract if it is made before the closing, within 30 days of signing the purchase contract and within three days of receiving the form itself.

Not everything needs to be disclosed. Many problems are obvious – a water stain on the ceiling for example or a deck that is rotten and falling apart. As a seller, you don’t have to disclose it. You can’t conceal or prevent a buyer from investigating the problem. A defect that is open, observable and can be discovered through inspection and inquiry is called a patent defect. The buyer can be held responsible and liable for all defects that could have been discovered upon inspection.  The burden is on the buyer to notice these issues prior to purchase.

If there’s any doubt about whether something should be disclosed, the best policy is to err on the side of disclosure. Full disclosure will protect sellers from future legal claims.

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Do a Home Inspection Before Listing to Sell

Be ready for the buyer’s home inspection. Find out the exact condition of your home before you put it on the market to sell. The home inspection is often where the deal falls apart because buyers will make their offer contingent on approval of the results. Hidden defects or problems can turn the negotiating into the buyer’s favor. Even if you offer to fix a problem that arises on the buyer’s inspection report, skittish buyers may be hesitant to close the deal. Knowing before you list your home gives you the opportunity to fix the problem or price accordingly.

  • Buyers use items that need to be repaired on a home inspection to ask for a reduced price. The reductions are commonly based on estimates that are often inflated.  When you fix the repairs, you can call the contractor with the best price, saving you money in the long run.
  • Sellers can justify listing price through a pre-inspection. You can feel confident in the price you are asking with the results available to buyers. In a hot market, some buyers will make an offer on a home without the home inspection contingency.
  • According to Forbes, “…. pre-inspection is a goodwill gesture. It demonstrates a willingness to go beyond what’s expected, and that sets you apart from other sellers. You’re sending a signal that your house is an “open book,” and that you’re being upfront about the property. All of this can give potential buyers peace of mind and confidence.”

Once you have the pre-inspection report in your hand you can’t ignore any issues that came up. You’ll be required to disclose that information as a known defect or fix it before anyone makes an offer.  There may be some issues that you aren’t able to take on and it will be reflected in the price. You and your Realtor will be able to establish the right sale price including what you can or can not fix before putting your house on the market.

The bottom line: As a seller, getting a home inspection before listing your home gives you more time to make the repairs that you can and to shop around and control the costs for the work.  Be sure to hire an experienced Realtor that will know how to interpret inspection reports, and to let you know which issues are vital to address before listing your home.

 

 

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Quitclaim Deeds

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When a mortgage is in danger of becoming an unsustainable burden a homeowner’s finances,  they may sign a quitclaim deed that will transfer some ownership interest in their home to another party. Quitclaim deeds are most often used when a home is transferred between family members or to cure a defect on the title, such as a name that has been misspelled, or  when an owner gets married and wants to add a spouse’s name to the title, or when the owners divorce and one spouse’s name is removed from the title. Sometimes, they may be used to transfer ownership of a home from an individual to a sole proprietorship or corporation.

Common facts needed to understand a quitclaim deed:

  1. The quitclaim deed contains no warranties of title or ownership. If the grantor owns nothing, the grantee receives nothing.
  2. When purchasing a home, the buyer should receive a general warranty deed, not a quitclaim deed. Title insurance is favorable and often required by mortgage lenders.
  3. A real estate purchaser under a quitclaim deed is in many legal situations considered to be on notice that the title has defects.  It is recommended that an experienced professional undertake a title examination based upon a title search and render a title opinion prior to completing the purchase.
  4. If one has borrowed money under a real estate mortgage, a quitclaim or other deed to a third party does not release one’s liability for the mortgage debt. The lender may release a debt, but a borrower can’t avoid payment by unilaterally shifting that debt to a third person.
  5. Subsequent ownership by the grantor after the delivery of a quitclaim deed is not impacted or transferred by the quitclaim deed.
  6. Recording any deed in the public records at a local courthouse or recorder’s office, as determined by state law, only gives public notice of one’s claim of ownership. A deed does not guarantee actual title or ownership.
  7. If two or more individuals are co-owners of real estate, a quitclaim deed by one owner only transfers at best that one owner’s ownership rights. If the quitclaim deed requires the signature of all co-owners, the deed is invalid unless all co-owners have signed it and the deed is then delivered to the grantee. However, if the quitclaim deed allows one co-owner to sign it and claims to transfers the entire property to a grantee who takes physical possession of the property, then the deed may create an adverse possession ownership claim to the entire property.
  8. If one individual owns real estate and desires to add a co-owner such as a spouse, a quitclaim deed might be used. It’s in the best interest to contact an attorney before doing so, in order to curtail any taxation or inheritance issues.
  9. Call the best Title Insurance Agency because a title examination is necessary.
  10. There can’t be a reversal in a quitclaim unless the original owner proves that the quitclaim deed was signed under duress in a court.

As efficient as quitclaim deeds are in transferring real estate ownership from one person to another, they suffer from certain shortcomings that make them inappropriate for all but their intended purposes. Whereas they transfer title to a property, nothing more and nothing less, purchasers demand transfer assurances that quitclaim deeds can’t provide. They want warranties that guarantee “clear title” or lack of ownership encumbrances in the property. In such transactions, sellers transfer their real properties with general or special warranty deeds that offer those assurances to their buyers.

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