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Empty Houses Look Smaller and Other Tips Realtors Want You to Know

A vacant, empty home does not sell faster. There aren’t many buyers out there that are able to see themselves and their belongings in a furniture-less home. It’s important to leave a few basic pieces behind or risk the home looking and feeling smaller than it is. As a seller, you want to help people see your home’s potential. Listen to the advice of a seasoned realtor or consider hiring a professional home-stager.

Get at least three references before choosing a realtor. Hiring an experienced agent to be with you throughout the entire process of buying a house can save you many problems. If you can, reach out to the people involved in the realtor’s last three transactions, not just names they have given you as a reference. Use this opportunity to find out if previous clients were happy with their experience. Learn what kind of a negotiator the realtor in question is and whether they were attentive to their clients throughout the process, from start to finish.

Hire a professional real estate photographer before you put your home on the market. A lot of realtors will often come to you with one, as part of their “package”, because selling your home is as important to them as to you. Everyone knows buyers are looking online before they even decide to go inside and a pro will know exactly what angle, lighting, and framing to use to bring out the best features of your home. The photos buyers see online are what ultimately help the decision of whether the home is worth the time to see.

A house that is overpriced won’t sell. If you price your home too high the right buyers won’t even give it a look. Buyers are savvy now, they are able to do homework and find out what a home is worth. They’ve hired skilled Realtors that have gathered all the comps for the neighborhood. Price it too high and your home will sit on the market without interest or traffic and the longer it sits the more of a negative association will come with your home. Buyers automatically assume homes on the market for a long time mean that there is something wrong. 

The selling of your home is a business transaction and not an emotional one. A home is one of the biggest investments made and people become attached emotionally. Acknowledge that selling your home is going to be stressful and emotional upfront and that will enable you to make good decisions going forward such as the pricing. Remember, it’s the people that make the memories, not the places. You are selling for a reason and oftentimes that means there is a new positive experience on the horizon. Focus on that.

The Bottom Line: Most successful real estate agents are true professionals and any advice they offer is in their client’s best interests. The right realtor will know how to market and sell your house. They will help you sell for more and save money where it counts while negotiating for anything else you might need.

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Why Are You Selling Your Home and Other Questions Buyers Ask

If you are selling your house, be prepared for the questions. Buyers, with the help of an accomplished, local Realtor that has their best interest in mind and will equip them with questions to ask you, lest they forget in all the excitement that comes with house hunting.

A sampling of some questions you should prepare to answer:

  • Have you made any major renovations or repairs? Have receipts ready to show if there have been any repairs or renovations made while you have owned the home. In some states, sellers must disclose any current problems but they don’t necessarily have to disclose past problems. Be prepared to have proof that if any major structural changes have been made that it was done up to code and was approved by the county.
  • How long has the house been on the market? The more time your house has spent on the market the more power a buyer believes they have to negotiate a lower price.
  • Are all the appliances and fixtures included in the sale? Usually, anything attached to the home is included in a home sale. But, it’s best to never assume or you could run into disappointment. For example lighting fixtures or window treatments.
  • When was the roof installed? Knowing the answer to this can make or break your decision. If the roof is older, it will surely need to be repaired or replaced soon after the purchase. This will give the buyer the option to ask you to fix it or adjust the price.
  • When was the last time your HVAC was serviced? This is cheaper and easier to fix than a bad roof, but it’s important to know as many details about the system. As a seller, have the paperwork ready that shows maintenance dates, the warranty (if still good), and the bills at hand for heating and cooling. What is the monthly cost of utilities? The buyer can then make a decision to either have the seller fix it or negotiate the price of the home.
  • Why are you selling? Depending on your answer, the buyer, with aid of their realtor, will be looking for a way to prepare a lower offer if it means you can get out of your home faster.
  • How long has the house been on the market? If it has been on too long, buyers become leery and think there must be something inherently wrong with the home. Additionally, if it’s been on for a long time, the seller may be more motivated and willing to negotiate.
  • What is the neighborhood like? The value of your house is affected by the neighborhood. A good realtor will have given the buyer all the comps from your area. It may be easy to read a neighborhood if there are concerns – there might be foreclosure signs or abandoned homes. Be prepared to be flexible on your asking price.

The Bottom Line: There are many questions that a seller will be asked so that the buyer will feel confident in their decision to purchase your home. It can be complicated and sometimes overwhelming but with an experienced real estate agent you can expect an uneventful transaction. The best realtors out there will be able to turn any negative into a positive while answering the questions the buyer has.

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The Case For Having Your Home Staged to Sell

Home buyers put a lot of effort and intention into finding the perfect home for their families. When they walk in the front door, it should feel like home to them. They need to feel that personal connection and envision themselves in each room. A home stager can help you put your home together by creating the atmosphere you need to appeal to buyers as they walk through your home. The buyer will have the feeling of being at home and never consciously know exactly why!

The person staging your home will have to be honest, and it can be hard on you as a seller. You have loved your home and can’t see exactly what an outsider can see in your home. It will be best to let the personality of the house be showcased and not your family’s personality. All the trinkets you have collected over the years and out on display will probably have to be packed and put into storage. Rearranging furniture to balance and maximize a sense of space in a room is yet another key to the process. For instance, too big of a couch could dwarf a room. It can be important to get rid of unnecessary furniture and might take a professional to guide you in the right direction.

Each room should feel fresh and inviting and often simply (and cheaply) painting pleasing colors on the walls can make a lasting impression on a buyer. Neutrals are the safest way to go. Even if a buyer isn’t smitten with your neutral choice they won’t feel like they would have to run out and paint over it right away as they might with a pink or a red. Don’t be offended if the person you have hired to stage your home wants to change the color of your favorite room. The goal is to sell your home as fast as possible, so do your best to remove any emotional attachment.

All homes have selling points such as unique architectural elements you may take for granted or a fabulous view that is hidden by window treatments. These should be showcased, highlighted, and staged to stand out. There are ways to enhance each room and it is best to have a critical eye to make sure that each detail shows its defined purpose.

The Bottom Line:  Obviously if you are trying to sell your home it goes without saying that you want to sell it as quickly as possible and get the asking price. It will make all the difference in the world to hire a professional home stager or to vet a trusted realtor who has the knowledge and experience to maximize your home’s potential.

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Potential Problems That Could Delay Your Closing

If you are planning on buying or selling a home, it’s important to understand that there can be delays in the closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, but there can always be an issue.

In almost any real estate transaction that includes mortgage financing, the lender requires title insurance. The title company will conduct a search of the property’s title history to look for anything that might affect the buyer’s—and therefore the lender’s—interest in the property. Any defect in title raises the possibility of some third party asserting their own interest in the property. Liens, which give creditors a non-possessory interest in real property, are a common type of title defect. Before a closing may proceed, all title defects must be resolved to the satisfaction of the title insurance company.

If an appraisal comes back to a lender that values the home at less than the agreed-upon loan amount, it may hold up the process. Lenders will not approve loans for more money than a home is appraised for. Sellers might then lower the price of the home or choose to complete home repairs to increase the property’s value. Buyers could front the difference between the appraisal value and the original sale price. The parties could also contest the appraisal. Whichever the eventual solution, the closing date will likely move further into the future.

Home inspections can uncover mold problems, faulty wiring, roof leaks, fire hazards, code violations, cracks in the home’s foundation, and many other potential problems. Smaller issues can even put a closing on hold until the seller resolves the problem to the buyer’s satisfaction. The buyers may also discover a problem for themselves during the final walk-through of a home. They may observe problems with the plumbing, electrical, or HVAC systems, or notice that the sellers didn’t perform an agreed-upon repair or concession.

The Bottom Line: The process of buying or selling a home can be trying and a lot of the issues are simply out of your control. While these listed above are just the most common reasons a closing is delayed, there are plenty of smaller issues. It’s important to have a qualified and knowledgeable Realtor that can deal with last-minute issues and surprises and will stay on top of every step until you hear the magical words: “Clear to Close”.

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Home Inspection Before Listing

A pre-listing home inspection uncovers potential surprises that could possibly derail the sale of your house. If you’re ready to sell your home and want to ensure the sale process will go smoothly and quickly, you may want to consider a pre-listing home inspection. You will get a “heads-up” on any problems that a potential buyer will want to have repaired.

Knowing what is wrong, issues can be attended to and taken care of before you even put your home on the market. Too often, a home inspection is where the deal falls apart because buyers will make their offer contingent on approval of the results. Hidden defects or problems can turn any negotiation in 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.

Most Realtors will tell you to make major repairs before you list your home. The buyer’s inspection will uncover significant defects, and you will be expected to repair them if you want to get the full price for your home. The problem is that you will only have until closing to get the repairs done after the buyer’s inspection.

The limited time frame leaves sellers scrambling to get everything fixed in time. With a pre-listing inspection, you set your own schedule for repairs. There is no rush to list the property until you have made sure the home is in good shape.

You’ll be putting your home on the market with the confidence you’ve corrected any large problems.

Sellers can justify their listing prices 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 let you know which issues are vital to address before listing your home.

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Fixed Rate Vs. Adjustable Rate Mortgage

What Is A Fixed Rate Mortgage?

A fixed-rate mortgage is a home loan in which the interest rate is locked in for the term of the loan. For example, if you get a 30-year fixed-rate mortgage with a 7% interest rate, your rate will remain 7% until your loan is either paid in full or refinanced, regardless of changes in going market rates.

The Benefits: Many homebuyers choose a fixed-rate mortgage because of payment stability. With a fixed-rate mortgage, your principal and interest remain the same for the duration of the loan. This makes budgeting easier since you know what the payments will be. Although it’s impossible to forecast if rates will rise or fall in the future, a fixed-rate mortgage helps protect you from an increase in rates. If you want to pay off your loan sooner, you generally have the option to make additional principal payments too.

The Cons: The drawback is that your initial rate could be higher with a fixed rate than what you would pay on an adjustable rate. There is also a chance that rates could go down, leaving you locked in at a higher rate. However, as long as you maintain solid credit, income, and debt levels, you should be able to refinance your loan to get a lower going rate if they were to go down.

What is An Adjustable Rate Mortgage?

An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 5 to 10 years. The interest rate can/may change (adjust) each year thereafter once the initial fixed period ends. For example, with a 5/1 ARM loan for a 30-year term, your interest rate would be fixed for the initial 5 years and could fluctuate up or down each subsequent year for the next 25 years.

The Benefits: ARMs usually have a lower initial interest rate when compared to a fixed rate, but remember that the rate will reset. Many homebuyers consider this type of rate attractive because of the initial lower payment, which could help them get a larger loan amount. This mortgage allows you to convert it into a fixed rate once the introductory period elapses. If the economic situation seems less certain, this option is convenient. On the other hand, you can stick to the arrangement if the economy is pretty predictable, giving you the confidence of consistency.

The Cons: The potential downside to an ARM is that your rate would go up if market rates increase. This would mean a sudden increase in your monthly mortgage payments. And, depending on the severity of the rate change, the payment increase could be steep. This can make it difficult to budget accurately.     

The Bottom Line: This is a huge decision, so be sure to connect with a reputable lender who will be able to guide you on the right type of mortgage for your situation. Key questions you would need to consider are: How long are you planning to stay in the home? How will you plan your housing budget if you get an ARM and the rates rise? At the end of the day, whether you choose a fixed-rate mortgage or an ARM, don’t be enticed into borrowing more than you can afford. Plan on what fits your budget and goals.

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Improve Energy Efficiency and Add Value to Your Home

A green home sells faster and for more money than homes without energy-efficient designations according to Freddie Mac research. It was found that homes with high energy-efficiency ratings sold for 2.7% more on average compared to homes that did not.

You can invest in upgrades that will improve energy efficiency while adding value to your home. Here are a few examples of upgrades that will lower your energy bills and increase the value of your home.

Double-Pane Windows: When the heating and cooling system doesn’t have to work as hard to keep a consistent indoor temperature, there will be an obvious decrease in energy costs. Upgrade to double-pane windows, regardless of the type, and you will see some pretty significant energy savings. Energy Star-rated windows help maintain a consistent temperature inside your home year-round. And when it’s time to sell, window upgrades are a value-added selling point with buyers.

Spray Foam Insulation: Installing new spray foam insulation in a home that was already insulated or in a more contemporary house will see a 10 to 15 percent reduction in its cooling and heating costs. Adding more insulation to the attic is “one of the easiest things homeowners can do to improve the energy efficiency of their homes.

Use Energy Star Appliances: Another easy way that homeowners can improve their home’s energy efficiency is to replace all appliances with newer, more energy-efficient models. These will save you 10% to 50% of the energy required, and much more if you are replacing an old appliance.

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 reduce recurring costs for consumers.

Upgrading your appliances is a way to increase value to your home and make it more appealing, as most buyers don’t want dated, unsanitary, malfunctioning appliances.

New Garage Door: A garage with poor energy efficiency can have a spillover effect on the rest of your home, particularly if the garage is attached to your home. Replacing your garage door will help your entire house stay cool in the summer and warm in the winter. Since a new door allows air conditioning and heating systems to work more effectively, it could reduce electricity waste and lower your energy bill.

The garage door is part of the curb appeal of your home – one of the first features buyers notice. An old, faded and damaged one can create a negative vision. Updating your garage door is one of the best home improvement return on investments.

The Bottom Line: A good realtor will know that a large part of selling your energy saving home will be to educate the buyer of all the benefits and values an energy efficient home brings. Your updated home will be a huge asset especially as the housing market evolves.

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Full-Service Title Company

Title First Coverage Map

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 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.

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

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Should You Buy a Home That Has Been Foreclosed?

Buying a foreclosed home comes with risk but can be a great deal. Foreclosed homes are inundating the real estate market and can be a fantastic opportunity. Before you dive into the foreclosure market, you need to manage your expectations and know what you’re doing. It is always recommended to work with an experienced team of professionals, especially if you’re new to the process, to ensure you have a positive and profitable experience.

Get an Inspection. Foreclosed homes are sold “as-is” and are owned by banks that don’t and won’t make repairs to the property. It must be understood that in most cases these homes have been poorly maintained as the owner often vacates the home because they could not make their mortgage payments. The maintenance and condition can be an issue because of the circumstances under which the owner had to move out and the amount of time the house has been unoccupied.  Some people are forced into foreclosure and are very bitter about it thus taking out their frustration on the home before the bank repossesses it. For example, they may remove appliances and fixtures. 

Not every bank-owned property needs repairs – but many do. While you can’t get the bank to fix the problems the inspector finds, in many cases, you can use it to negotiate a lower sales price. An inspection helps you to know exactly what you are getting into.

Get a comparative market analysis. Never assume that a foreclosed home is listed below market value. There is a common misconception that buyers will get a good deal on foreclosed properties. The bank’s goal is to recoup as much of its money as it can and will put the home on the market for more than it is worth. A good realtor can help you learn what prices of other homes in the neighborhood are selling. Knowing this information coupled with the inspection results, you will be better able to determine what price you will pay for the home.

The process to close on a foreclosure can take more time. The offer you prepare to make will go to a bank, not to an individual seller. There are many layers of approval that the offer must go through. Foreclosed homes more times than not run into title issues, such as uncovered liens on the property that can further delay and complicate the situation.

The Bottom Line:  It’s possible to find foreclosed homes that are being offered at below-market rates. These homes are sold “as-is” so due diligence is extra important. Work with the best realtor that will be able to explain both the pros and the cons of buying the home. The amount of risk and potential reward of buying a foreclosed home can vary depending on which part of the foreclosure process the home is in.

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Buyers: What to Expect From Your Realtor

Hiring the right Realtor for the job is critical when buying or selling a home. Without experienced professionals by your side, the entire process can become a nightmare. The three main factors that will sell a home are price, condition, and location. No one can change the location, so if a home is priced correctly according to its condition, then it will sell. A good Realtor should properly research the market, and advise you to list the property at a price that will bring offers. Unfortunately, if the price advised is too high, in order to simply get the listing, you won’t know until months later when your house remains unsold.

The right realtor for you might not necessarily work at the largest brokerage, close the most transactions, or make the most money. Real estate professionals have a saying that 20% of the agents do 80% of the business. Your goal is to find one among that that 20% to work for you, and it’s not as challenging as you might think to find the best one.

Since your house is one of the biggest investments you’ll ever make, it makes sense to be a little choosy about whom you hire to help sell or buy it. Find an agent whose philosophy and methods align with your preferences. And be prepared to interview at least two or three agents to find the right person. Asking the right questions will help you gain insight into the agent’s capabilities and personality. 

A real estate agent will walk their clients through each step of the transaction onto closing. The following are some of the things you should look for when searching for the best realtor:

  • Endless Knowledge of the specific area that you are hunting. It’s important that the realtor know the good and the bad of each neighborhood and if she does not know it, will be able to find good and useful information. She needs to be able to give you research on the schools, the crime rate, upcoming development plans, and any other situation that might impact your decision.
  • It’s wonderful when the realtor is active in the community. By being a part of local organizations, charities, and events, they should have good relationships with other involved professionals in the area such as loan officers and home inspectors.
  • The realtor should be up-to-date on industry news and trends as well as take classes in continuing education programs. Having someone by your side while you look for a home that is knowledgeable is important. And, if they don’t know something they know where to get the information immediately.
  • Ask friends, family, and coworkers who they know or who they have heard about. Get recommendations. Check online reviews. Learn more about them from their social media.
  • The realtor you choose should make you feel like you are their only client. He should be available to answer any questions and address any concerns. you should be able to access them easily by phone, email or text and their response should be timely.
  • The best realtors are proactive and help find properties to see easily and quickly. They should know of price adjustments as they happen and proved you will any information on sales activity so that you have an idea of what is going on in the area you are interested in to help set an expectation on how much you may have to pay for a property.
  • The role of the real estate agent for a buyer when negotiating the offer is to communicate with the listing agent and/or seller on your behalf to negotiate the best price and terms. When preparing the offer you should be provided with a comparative market analysis (comps), a list of recently sold properties, active comparables, and expired listings and then should advise you on how differences in properties affect value. They will understand the market trends and advise you on an offer strategy.
  • Your realtor should have the ability to know what is normal or not with a home that might not be visible to you on the first showing. She will carefully inspect the property disclosure statement to determine if there are any red flags. An extra step she might take is getting the monthly cost for heat, water, and electricity.
  • Your realtor should be ready to help finalize, tie up loose ends and help answer any questions to be ready for closing. The deposit needs to be handed in on time in trust, documents including mortgage information need to be sent and so much more. To be sure it all goes smoothly and that you don’t get lost in the process, you’ll need an experienced realtor.

The Bottom Line: The home buying process is always complicated, whether you’re moving to a new state or buying your first place in your home state. Who you choose to work with is essential to the success of your house hunting and having the right realtor by your side can make a huge difference.

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