Category: Title Insurance

Home Appraisal

A real estate appraisal is an essential piece of the buying and selling of property most notably if a buyer is going to need a loan to buy the home. No legitimate financial institution will lend money without an appraisal. The appraisal value of a home can make or break a sale, leaving this part of the real estate process one if not the most important, critical steps.

A home appraisal is different from a home inspection even though both an appraiser and an inspector will walk inside, outside and around the property to check everything with a fine tooth comb. The appraiser is finding the value of the home and the inspector is looking for problems or defects with it.

During an appraisal of a home, the appraiser will look at the state of repari, the features, square footage, number of bedrooms and bathrooms. It is good to give a list of repairs and improvements made such as a new roof, water heater, air conditioning, etc. Basically, anything the owner of the home can think of that will help the appraiser decide the general market value of the home.

The home will then be compared as accurately as possible by way of recent sales, homes sold that are similar, and a search will be done for properties that are identical to yours and what’s been sold or what is on sale in the neighborhood. The appraiser will also provide whether values of home are on the rise, decreasing or stable. If there are any concerns that he feels will harm the property’ value, it will be noted as well as flagging any bigger problems he may see in the foundation, the roof or any noticeable water leaks in ceilings or floors.

Again, an appraisal can make or break a sale of the home so it’s a nerve-wracking time. If the appraisal comes back higher or lower than the sale price, there will need to be more negotiating. If the seller isn’t happy with the outcome, a good Realtor will discuss with the appraiser why certain decisions were made. With the help of a Realtor, the seller can put together a valid argument as to why the appraisal is not correct.

Appraisals are valid for six months unless the home is in certain markets where homes are selling fast and prices continually change. At which point, lenders usually like an appraisal every three months.

The Bottom Line: Any good Realtor will press on the point that pricing the home correctly is most important. If a home is overpriced it’s not going to appraise and the sale usually falls through. Pricing issues are the number one reason homes don’t sell.

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Are You Ready For Your Interior Home Inspection?

It’s in a seller’s best interest to make sure their home is as ready as possible for inspection. All homes that have been lived in usually have a bit of damage from simply living in it.  After your home has been on the market and someone is interested in buying it, you have to pass the inspection.  Home inspection seems nerve-wracking but they are necessary before any sale. There are a few things you can do to be prepared for the day when the interior of your home is being inspected. 

Heating, Cooling, Water Heater: Each should have a date of their last inspection on them. If not, they could be flagged by the inspector.  If you can’t find a sticker, have your Realtor give you the name of a licensed contractor to come to have a look to see if any repairs or changes should be made and make sure all are running properly. 

Bathrooms: How is the grout in the shower, around the sink and in the tub looking? This one is an easy remedy if you see any cracks – match the grout color and fill in the damaged areas.  Make sure any pipe work that was performed meets legal standards and guidelines. For example: If you put in your own custom shower, note that the inspector will check below the surface to make sure that the membrane was installed properly and there isn’t water leaking below the shower that could damage the sub-floor and drywall.  The inspector will flush all the toilets and listen for any leaking sounds. Often you will just need a flapper valve if you hear a sound.  Cheap fix. 

Electrical: Test your outlets. For as little as $10, an outlet tester can be picked up at a home improvement store. An inspector will try every single one in your home. Be sure the cover plates are not cracked – another cheap and easy fix.  Every light fixture should have a working bulb and your smoke detector should work. 

Plumbing: Fill all your sinks part of the way and then pull the plug to see if they drain normally. Did it take a long time to fill the sink? It might be because you have low water pressure and is often a really easy fix. Occasionally, this could be an indication of a bigger problem within your plumbing system. It’s best, at that point, to hire a professional to come to see before an inspector. Check inside cabinets under sinks for moisture or around the valves.

Kitchen Appliances: Repair any that may need to be fixed as the inspector will run the dishwasher, the stove, oven, garbage disposal, vents, and fans. If you bought a new appliance while you lived in the home and installed it yourself, mistakes may have been made during setup. Check the water and drainage lines from a new dishwasher or refridgerator. 

Windows & Doors: Each window should be able to open, close and lock. If you find any hard movement, it can be easily fixed using spray silicone from the hardware store. Repair any caulking around the doors and make sure all the knobs/deadbolts are working properly. 

The Bottom Line: This is just a quick checklist of some of the things that you, as a homeowner, can look for and fix before an inspection inside your home.  Some of the issues may need the help of a professional.  The best advice we have heard is if you want the inspection to go smoothly, have your home inspected before it even goes on the market. This way, anything you can’t fix yourself, you will have time to find a reasonably priced contractor instead of rushing and paying top dollar after the fact. 

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Facebook Can Sell Your Home

technology

Take advantage of Facebook to sell your home — and be certain that the  Realtor you choose is social media savvy. The Facebook universe is voluntarily giving up its demographic information daily and 1.5 billion members can be directly reached. 

Video: Currently Facebook is fond of videos versus still images, which means the powers-that-be are at work with the algorithms of the platform that make the decision as to what a user will see on their newsfeeds, and video is at the top right now. Giving a tour of your home either live or prerecorded focusing on the best selling points of your home should be one of the first things posted. Invest in a photographer/videographer, it will pay off in the end.

Photos: Hiring that photographer/videographer will come in handy for these. People love pictures. Plain texts on Facebook rarely get the views that a post with a beautiful photo gets. Take advantage of the fact that social media users are visual beings and are attracted to properties they see while casually scrolling through Facebook. 

Post with a link within the text: In other words, put up one of your beautiful photos, with a short, well-worded text and the link at the end to click. Facebook wants us to stay on its platform and not navigate away. If the picture is the link to the MLS listing, the weight for the algorithm will be weighed much lower and miss newsfeeds. 

Facebook ads: Put aside a little money beyond the costs of advertising in your local classifieds, and consider buying a Facebook ad that goes to a web page showcasing your home.  The precision is incredible – you can target users according to various criteria, including location, gender, age, education, workplace, etc. Best of all? You don’t need to spend a lot of money on an ad. Start low – even just $5. 

The Bottom Line: Embrace Facebook for home selling. Over 90% of homebuyers start their hunt online and they will never even get in the car to go see a home for sale if the online presentation is not compelling. Write posts about what made YOU buy the home. Make the posts personal and detailed. Facebook’s ability to target posts and ads to your core demographics are invaluable.  69% of Realtors use Facebook because it works. Find that Realtor. 


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Selling A Home in January

Unfortunately, many people assume incorrectly that homes do not sell in the winter. Spring wins as people believe it is the best time to sell, but a good realtor will tell a seller that putting their home on the market in January to beat the competition.  After the holidays, people are back at work and looking online for their next move, and with the mindset of so many sellers to wait until Spring, the home on the market in January will have less competition. 

Real Estate becomes flooded come spring and summer and is dominated by high supply and high demand, meaning a home becomes one of the many for sale. Think about selling in a period of high demand but low supply, and being one of the few and standing out from the crowd and with less risk of getting lost in a market overload in the Spring. 

Redfin, a real estate organization, took a look a home sales from 2010 through 2014 to determine how well homes sold based on the season. The findings were surprising for many people, because they went against the standard assumption that winter was a time to avoid trying to sell a home. They found that, indeed, homes did sell best in spring, but only by a small margin. The next best time to sell a home turned out to be winter, followed by summer and then fall. Winter home sales were only one percentage point lower than the figures for spring, with summer trailing quite a bit behind.

The buyers are more serious in the cold, dark months of January and February. It’s not so hard to go house hunting in the beautiful months in Spring and Summer, but to go out in the frigid temps to look at homes means that buyer is motivated. 

January is the most popular month for corporate transfers. People who are transferring for work are highly motivated buyers and are limited to the time they can spend looking for a house. Take advantage of this situation, especially if living in an area with corporate headquarters, or major employers. 

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Title Insurance on New Construction Home

Most people know how important it is to have title insurance when buying a new home. The buyer needs to have protection against defects or problems because of liens, encumbrances or defects in the title when there is a transfer of property ownership.  But, what if the home being sold is new construction since there isn’t an actual previous home that has a title? 

When a home is sold, the original seller transfers the title deed to the buyer. The hope is that the seller has had full possession of the title without any liens on the property and has the right to sell it. A title company will research public records looking for problems that might be associated with the property – filing errors, forgeries, undisclosed heirs – and once searhed will provide a poliy to protect the buyer from an issues that may be uncovered later.

All of the above makes sense if a home that is being bought has been owned by someone else. What happens when a buyer is purchasing the land to build a new house on? Why would title insurance be needed? Because the land was owned and may have been broken up from an even larger parcel that has undiscovered claims. The title to that land may come into dispute in years to come. Most land is not completely claim-free, thus there is history. Furthermore, the builder may have bills unpaid to subcontractors and suppliers resulting in a lien on the new home. 

A title policy is the best and safest way in protecting the buyer of the land that the new home is being built on.  There will be no question of ownership in the future, especially if the home in the new subdivision was not properly subdivided. 

The Bottom Line: The lender will want to be sure that there is a clear title on the property.  Someone owned the land on which the new home is being built before the buyer and the title to that land may at some point come into dispute. And, while there is no question the owners could experience disruption during a dispute, the title insurance will ease the pain by covering the bills during the process. 

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Smooth Real Estate Transactions

Buying a home can be chock full of complications and setbacks, or it can go remarkably smooth and fast if it is planned carefully.  The Realtor needs to stay focused and be the voice of reason as they facilitate the process at closing and make sure all parties have completed all unfinished business prior to coming to the “closing table”. Here’s a quick list that Realtors can use to ensure a smooth closing. 

Repairs: The Realtor should check on the status of all repairs that were to be made on the home the day before closing. If there was an agreement that something needed to be fixed by closing, make sure that it is. If there was an arrangement for repairs to be taken care of after closing, make sure all the necessary paperwork shows this as fact.  A final walk-through should be done with the buyers. The sellers should make sure, with their Realtor, that the property is in the condition promised and all of their personal items are removed. 

Title Insurance:  All of the title work should be checked to ensure clear title and that the property can be transferred without any obstructions.  Should there be any title issues that might include judgments or liens,  they must be settled prior to the hour of closing.  The moment of truth in a real estate transaction happens at the closing table. Title First Agency will work hard to ensure a seamless experience for you and your clients. From contract to closing, we handle all the details to help a transaction run smoothly and close on time. 

Financing: The lender should be contacted the day before the closing to be certain that all the documents they need have been received. Occasionally, the closing is delayed due to one document or one final verification.  The interest rate for the loan should be locked as well as the final mortgage and monthly payments.  The Realtor should make sure the buyer has all the funds available and ready to close.  Having everything in hand the day before gives both the buyer and the seller 24 hours to review everything and have any questions ready, errors noticed or points not understood addressed. 

The Bottom Line: A thorough Realtor will make sure the buyers are ready for the closing. First-time buyers may not realize all the people that could possibly be at the closing table, and all the paperwork there will be that needs their signature. The buyer needs a cashier’s check or arrangments made to wire the closing funds to the escrow company.  The seller should bring all the keys, garage door openers, alarm codes and any other controls to the settlement. The Realtor should make sure and confirm that all utilities have been disconnected by the sellers and set up ready for the buyers upon closing. 

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Holiday Home Buying

Some of the best deals people can make is buying a home during the Christmas holiday season. The real estate inventory is limited as there are fewer people selling homes, but this will come as an advantage to buyers. The truth is negotiating a favorable price will be much easier than other times of the year. Other than getting a good deal on a new home there are a few really good advantages to now, being the time to find and buy that home. 

Closing on a new home before December 31 will bring tax benefits. Deductions can be itemized such as points paid upon closing, property taxes and mortgage interest rates. Often times, a move at this time of the year has to do with an employment move which can bring more tax breaks. 

Sellers who choose to have their home on the market during the holidays are usually more motivated than the rest of the year. Listing a home during an off peak time such as this often means a job relocation, or some time sensitive issue that puts buyers in a position to get a better deal. 

Everyone involved with the real estate deal – sellers, Realtors, title agencies, banks, inspectors, lenders – want to wrap the deal up before the holidays. This time of year brings about a much more focused and speedy process that takes longer during the rest of the year. Just make sure before you begin the process that the Realtor that you choose will not be leaving for vacation and become MIA for a week or so. 

Favorable financing comes at holiday time. Interest rates on mortgages and loans typically hit a lower point around the holidays because fewer people are looking to borrow. There is historically, less financial business being done during December. 

And, another pretty fine reason to buy a home during the holidays? January and February bring the seasonal sales. Think –  new furniture, appliances, decor, even next year’s holiday decorations! 

The Bottom Line: Buyers should watch the market conditions as well as look online at what is out there. Get the word out to Realtors that can help find any  “pocket listings”. Check out the many online calculators that are available and see how much can be saved over the life of a mortgage with even a little decrease in interest rates that tend to happen during the holidays.  

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Is It Time To Sell Your Home?

Are the walls closing in on you in your home? Are you feeling cramped? Maybe you have TOO much space and have launched all of your children and are ready to downsize. Are you ready to find your next home? Are you on the fence whether it’s a good time to sell or not? Of course, you want top dollar. So what are some of the signals that now is the time – or not?

  • Positive Equity:  The current market value of your home, less what you owe. If you can sell your home for more than you owe, you will benefit from positive equity. This can enable you to have enough money for closing costs and putting money down on your next home. At the very least, you want to be able to sell enough to cover the current balance of your mortgage. If none of this applies to you, there are many things you can do to improve the equity of your home, including home improvements. Speak with a skilled Realtor to know what you should repair, replace or upgrade.
  • Strong Market: You probably have a general idea of what is going on in your neighborhood – what the trend is; who is selling; what has sold and for how much. But, call your local Realtor and get the comps and find out exactly how hot the market is. You’ll be able to learn how long a home was on the market until it sold, what the price per square foot has been and if that number been increasing or decreasing. If it’s been low average days on market, it’s a pretty positive sign the market is hot for sellers.
  • Remodeling Won’t Raise The Value: Sometimes it’s beneficial to make updates in your home and you know that updating your kitchen or adding another bathroom will help you sell your home for top dollar.  But, making an appointment with a reputable Realtor to find out if adding money to your home will be worth it. Depending on the real estate in your neighborhood and what buyers are looking for, doing less may be more. Your Realtor will help you to understand what the market is doing – the rule of thumb is not to raise your home’s value any higher than 10 percent of the average cost of homes in your neighborhood.

The Bottom Line: Is it finally time to sell? There are many signs, we’ve just listed three. Talk to a Realtor, meet with a financial advisor or mortgage lender and make sure it makes sense financially. Being house poor is a reality, and as much as you want a larger home – or even a smaller home – it might not be the right time for you.

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Realtors’ Favorite Title and Escrow Company

realtor with buyers

Title First works hard to ensure a seamless experience for you and your clients. From contract to closing, Title First handles all the details to help your transactions run smoothly and close on time.

At Title First, we measure our success by your success. That’s why we offer a variety of services to help you grow your business.

TRANSACTION CENTER

Our secure online ordering portal allows you to submit orders quickly and track all your transactions to ensure there are no surprises.

MULTIPLE CLOSING LOCATIONS

Offer your clients more choices and close with convenience in any of our professional closing offices.

CLOSING AND SETTLEMENT

We offer a comprehensive suite of closing and settlement services for purchases and short sales.

CLOSING DOCUMENTS

We provide your clients with multiple options for obtaining copies of closing documents. All at no additional cost.

TITLE INSURANCE

We offer the ALTA Owners and Homeowner’s Extended coverage policies to protect your client’s investment and your business relationship.

NET-TO-SELLER

This convenient tool helps you estimate your clients’ profit and presents it in a professional format that you can share.
Net-to-Seller Calculator

INDUSTRY SERVICES

Title First can assist you in promoting your business with our full line of marketing solutions.

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Skilled Staging and Selling Homes

unwrapping a package

Prospective home buyers never like walking into an empty house where they can’t imagine themselves living. There should always be furniture and accessories to make the house, feel like a home. Hiring a professional Stager can help lessen the time a home is on the market as well as boost the offered price. The best Stager will create an environment that will help the buyer feel the “at home” feeling and never even consciously know exactly why!

It’s always hard on the sellers. They have loved their home and don’t see what a “stranger” in their home sees. Buyers like everything “spelled out” for them and may not be able to see that the dining room is really a family room. Or windows with different treatments may make the room look brighter and bigger. Rearranging furniture to balance and maximize a sense of space in rooms is key to the staging process. Too big a cozy couch that the seller loves could possibly dwarf the room it’s in. Sellers don’t often see that boxing up knick-knacks and family pictures can actually add more value to a room.

Many sellers are told to paint walls in a classic ivory and beige color scheme. That’s fine, but putting a twist on that to stand out from other homes on the market is a great idea. This way, at the end of the day, after a buyer has looked at many homes, they can easily call it to mind. The overall goal is to make each room feel fresh and inviting and easy for buyers to envision themselves and their belongings in. Grey, a very light blue, pale serene turquoise, charcoal, yellow – all accented with white are always pleasing. A skilled Stager will put a seller on the right path.

The Bottom Line: The seller’s goal is to have the house that potential buyers remember. The home that makes they can feel and see themselves living in. Open all the doors. Get rid of old window treatments. Rip up carpeting. Take down and box family photos. Fake plants, fake food and blow up mattresses are a turn-off.  Buyers open closets and cabinets! Remember to make sure they are organized and clean.

 

 

 

 

 

 

 

 

 

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