Tag: buyer

Title Insurance Myths

MYTH: Nobody needs title insurance

Everyone needs title insurance. You may think you know the entire history of the house you’re purchasing, but it’s impossible to know everything. Title insurance protects your right to the property in the event that a previously unknown heir claims ownership of the property if it is later revealed that the “sellers” were not the rightful owners, or if liens against the property resurface. If you have an owner’s title insurance policy, you will not be responsible for paying any of the fees associated with protecting your right to the property, should these types of issues arise.

MYTH: New construction homes don’t need title insurance

Your home could be brand new, but the land on which the house is built isn’t. Chances are, the land had several previous owners before construction began. Buying property on such land opens you up to certain risks tied to ownership issues from previous owners.

Disputed wills, easements, and property liens are just a few of the issues common to land ownership. You could get caught in between the mess and end up losing your resources or, worse still, your new property as well. Title insurance is crucial even for a new home and should be among your list of priorities during the closing process.

MYTH: If no one challenges ownership, then the title policy is a waste

At the closing, when you purchase a title insurance policy, the closing company does the bulk of the work behind the scenes. The title company goes through many steps to make sure that everything is in place by that time, including conducting a comprehensive title search and identifying any potential issues. The team investigates the entire history of the property to ensure that you, the buyer, will be aware of any problems that will need to be addressed before closing. By the time the closing comes around, the title company has completed a great deal of research and legwork for you.

MYTH: Title insurance offers only minimal protection

When you purchase a home, you receive the “title” to the property. This title is your legal right to own it. Early in the home buying process, a title search is conducted to review the history of the property and uncover any issues that could limit your right to ownership. Even after the most meticulous search of public records, there can be hidden title defects, such as tax liens, forged signatures, claims by ex-spouses, and recording errors. These title defects can remain undiscovered for months or even years after you purchase the home.

MYTH: Title insurance is the same thing as homeowner’s insurance

Homeowners insurance protects you so you have the resources to pay for any damage that might occur to your property. Title insurance protects you from anyone else claiming your home is theirs or for some prior owner’s back taxes or encumbrances or any other real property dispute

Title First Agency: Dedicated to innovation and passionate about service, Title First Agency is your comprehensive, nationwide resource for title and real estate settlement services. Headquartered in Columbus, Ohio, Title First has branch offices throughout the Midwest and a robust virtual partner network throughout the country. Title First got its start in 1956 as an affiliate of a local law firm and has since emerged as one of the largest independent title agencies in the nation. Proudly servicing Realtors, lenders, builders, developers, law firms, buyers and sellers, Title First is equipped to serve your residential and commercial title and settlement needs.

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Seller’s Market: Make Your Offer Stand Out

Buying a home is one of the biggest and most important decisions a person will make in their lifetime. Financial stress is often compounded in a seller’s market when there is heavy competition among buyers. If you want your offer to be the most attractive, here are some tips.

Get preapproved. The one resounding rule all real estate experts will agree on is to get a mortgage preapproval before you begin your search for a new home. If you want to look like a serious buyer, the first thing you need to do is show the seller that you can actually close on the home. Get a mortgage preapproval – not just a pre-qualification – letter, and if you are a cash buyer, submit proof of funds with the offer.

Work with an experienced Realtor. Find someone you trust who truly knows the local market. Even better when that Realtor has connections to other Realtors — not only to view the non-public listings but also will know what other properties in neighborhoods you like might come on the market soon.  In today’s hot seller’s market, you’ll need someone who can steer you away from pitfalls, is a master negotiator, fiercely devoted to putting your best interests first, and can multi-task. The right agent can make a world of difference.

Up your earnest money deposit. If the house you’re making an offer on is the be-all-end-all, and you can’t imagine not living in it, prepare to boost your earnest money deposit. Show the seller that you mean business and you’re prepared to do what it takes. Your Realtor will be able to guide you to that perfect number that will prove your worthy.

Waive the inspection contingency. Most sellers are anxious about the home inspection. They worry that the buyer will ask for major repairs. This is an aggressive tactic that can be risky but yield positive results. Talk to your Realtor because right now, buyers have had an inspector attend home showings with them to do a quick on-site inspection. In the end, if you have the financial means to play it out this way, then the additional cost of making your own repairs is a risk you might be willing to take in order to get the house you want.

The key to getting your offer accepted in this heated market is to present the easiest, stress-free scenario for a seller.  The fewer demands you make as a buyer, the more likely it is that your offer will be accepted. Contingencies come in many forms, and the fewer of them you have, the more attractive your offer will be. Keep the offer straightforward.

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Buying Vacant Land

With vacant land, it is very important to thoroughly understand all that you are buying. Many buyers purchase vacant land with the plan to build their dream home. With that in mind, research plays an important role in ensuring that your lot has the capacity and potential to house your dream home and all your desired features.

Equipped with essential initial knowledge about a vacant lot, potential buyers can maximize their time during a showing to ask detailed and specific questions about each property.

If you do your research, you may be able to buy land in an area soon to experience growth or revitalization. Even if you opt not to build right away, you could see some appreciation in your investment within a relatively short amount of time.

When you are researching land for sale, you have the opportunity to select the perfect lot for your dream home. You may find land near a waterfront, with breathtaking views, or as far from civilization as you like. Once you locate the perfect spot, you can create and customize the home of your dreams.

Vacant land is less expensive than developed land. With such a low price tag, you’ll enjoy a lower interest rate and pay off the mortgage faster than a traditional home purchase might allow. From there, you can start construction on your dream home.

Vacant land has many benefits but also numerous caveats. Vacant land is always a safe, appreciable investment when you do the research and due diligence to determine the property’s value and potential.

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Get the Edge in a Seller’s Market

A seller’s market is when there are more people buying houses than there are houses for sale.  If you’re looking to buy a home right now, it may be hard to get one at a fair price. In the most sought-after areas, houses are going under contract in a matter of days, even hours. What can you do to be prepared if you must buy a home now?

Hire the best Realtor

Do a search on Realtors. Get the best, with the most experience, you can find. This will give you the advantage you need in a competitive market as she/he will be on the frontlines, keeping you in the know at all times.

Be ready to act instantly

No matter where you live, listings for homes in popular neighborhoods are often few and far between. When these homes do hit the market, they don’t last long. If your heart is set on buying in one of the more popular areas, starting your house hunt early and having patience means that when the moment comes, you’ll need to act quickly.

If you’re really interested in a home, ask your Realtor to get as much info as you can beforehand: property reports, disclosures, etc. Keep your schedule open so that when a home becomes available, you can get to it immediately. .

Get pre-approved

One of the smartest things you can do to ensure your chances of getting the home you want. This part can very well make or break the process. Assume others will be putting in an offer as well and having a pre-approval letter in your hand will give you an edge.

Having your lender verify your ability to afford a home loan for a certain amount lets the seller know you are qualified and motivated. It shows financial security which gives the seller the confidence to feel that the sale will go smoothly with you.

Keep your offer simple

Most offers include contingencies- things like completing inspections and receiving a mortgage commitment -that needs to happen for the transaction to move forward.

When looking at offers, sellers tend to see contingencies as potential opportunities for the deal to fall apart. As a result, they’re more likely to choose an offer that’s relatively “clean” or reduces their risk of potential hang-ups.

In a competitive market, you might see other buyers removing or reducing their contingency periods to make their offer more competitive.

But remember! If you choose to, for example, waive an inspection contingency, you’re agreeing to buy the home regardless of what problems may exist. You’ve got to be OK with that.

Start with a strong sale price

Besides keeping your contingencies in check, there is another component of the offer that will help set you apart from the crowd and it’s fairly obvious — the offer price.

If it is possible for you, consider putting down a larger deposit which will let the seller know you are serious. Be flexible with the closing date to accommodate the seller’s schedule. And know that the sellers are likely to be enticed by a big payout, or if possible, a cash offer. Offer the asking price – and even more, if you think you can swing it. Use a mortgage calculator to see what your monthly payments will look like.

Write a personal note to the seller

Remember that many sellers have an emotional attachment to their home and moving is often hard for them. They’ve put their heart and soul into the home, built families, and made memories in the home. Write a note letting them know why you love their home and how you plan to take care of it. They may love to hear how their home will be in good hands.

Be prepared to negotiate

The whole experience of buying a home is emotional and if the home you are trying to buy has multiple offers, this isn’t the time to throw in a lot of extras. Keep the contract as clean as possible by not asking for extras such as closing cost changes, home warranties, appliances or furniture.

The Bottom Line: Be flexible. As a buyer in a seller’s market, not everything will go the way you want it to. Be patient. If you are working with the best Realtor, they will have the experience to keep you calm while guiding you in the right direction.

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Buyer’s Market Vs. Seller’s Market

What is a Buyer’s Market?

A buyer’s market occurs when the availability of homes (supply) exceeds the number of buyers looking for a home (demand). Anyone looking for their next home to buy, a buyer’s market is the ideal time to make the move. The ability to but a fabulous home for a lower cost is greater.

Homes may remain longer on the market if trying to sell during a buyer’s market. There are so many homes available thus securing a buyer is tougher and lowering the price might need to happen.

What is a Seller’s Market?

A seller’s market occurs when demand exceeds supply. In other words, there are many interested buyers, but the real estate inventory is low. Since there are fewer homes available, sellers are at an advantage.

In a seller’s market, homes sell faster, and buyers must compete with each other in order to score a property. These market conditions often make buyers willing to spend more on a home than they would otherwise. Therefore, sellers can raise their asking prices.

Due to the shortage of housing, these conditions often lead to bidding wars. During bidding wars, buyers will make competing offers and drive up the price, typically above what the seller initially asked for.

Determining if it’s a Seller’s Market or a Buyer’s Market

You can use supply to determine if the market favors buyers or sellers. As a general rule, a neutral market will have 6 months of housing supply. This means that if there’s less than 6 months worth of inventory, it’s a seller’s market, and if there’s more than 6 months’ worth of inventory, it’s a buyers market. When determining if it’s a buyer’s or seller’s market, you must look at housing supply on a local level, usually by neighborhood or zip code, as it’s not uncommon for areas in the same city to be in different markets. 

How well a home is bought or sold is dependent upon the market the home is currently in. Just because the news says the nation is in one market doesn’t mean it is the same everywhere. Meet with a Realtor for the best information. Any strategy used to buy or sell a home is also dependent on the market it is in and the Realtor. Choose an agent wisely, stick to the strategies and homes can be bought and sold in any market.

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Choosing a Realtor

Looking for the best real estate agent, one that is an experienced professional who listens to your concerns and knows their market? That person 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, but it’s not as challenging as you might think. 

Read Reviews

Online reviews are one of your best assets when it comes to choosing a realtor. Read all of the reviews that you can find before selecting who you’ll work with, and look for an agent whose previous clients have only positive things to say about their experiences. However, if you read one with great reviews as well as c few complaints, be able to distinguish whether the complaints are about the individual realtor versus complaints about the stress of the home buying process itself.

Ask friends, families, coworkers, and anyone else whose opinion you trust if they have any local agent referrals. Previous buyers are one of your best assets for finding a great Realtor since they can speak honestly about their own experiences. Plus, you can trust that if someone you know is giving you a recommendation, chances are it’s because they enjoyed working with that agent and would work with them again.

Interview A Few Agents

Real estate pros urge buyers and sellers to interview at least three agents.

  • Always ask an agent for a list of recent references.
  • Ask each agent you’re considering how they plan to help you find the perfect home (for buyers) or market your home (for sellers)
  • Note how an agent responds to your inquiry. If the answer is fast, thorough, and informative, there is a good chance you will get that type of service throughout your buying or selling process.
  • Ask to be provided a list of their recent sales, not just a general number of sales or sales volume.

Listing Price Determination

No one, not even the best Realtor can tell you how much your home will end up selling for. Good Realtors will show you comparable sales, pending sales, and active sales in your neighborhood and surrounding areas. Ultimately, the buyer tells you the price that is right. The Realtor you choose should suggest a list price that will attract that buyer and then where it goes from there is up to the buyer.

Consider this:

  • To get a listing, sadly there are Realtors out there that will bend the truth. Since they can not guarantee a sales price, the Realtor that quotes you the highest price should be able to back that up with facts and figures. If the agent does not have any good stats, that might be a red flag.
  • Watch for the Realtor that gives you a range of prices that depend on factors such as location, the market and any improvements you have made in your home.
  • Pricing a home is an art. Realtors have no control over the market, only the marketing plan. If it is priced right, you’ll get an offer. Priced to high, you might not get a single showing and end up reducing the price leaving buyers to try to figure out what is wrong with your home.

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Kitchen Changes to Sell a Home

First Friday Feature: An Updated and Modern Kitchen | Kitchen ...

The kitchen is king. A newly renovated kitchen can help you sell your home for more money and sell your home faster. But, before you take on the work, prospective sellers should talk to the Realtors local to them and find out how they compare to the rest of the market. Find out what their home, their kitchen in this instance needs to have for the buyers out there looking for a new home. Often the kitchen can make or break a home sale. Kitchens can be the deciding factor.

Clean

The cheapest thing to do is to start with an immaculately clean kitchen. Clear counters of clutter and remove any items from the tops of cabinets and the refrigerator. This makes the kitchen appear larger and getting rid of any personal items will help potential buyers focus on seeing their own things in the area.

Paint

Fresh paint is a relatively inexpensive way of changing the entire look of a room. Opt for light, neutral colors. There is an endless amount of primers and paints available now, making it easy to really make a transformation. Sometimes just cleaning and painting is all it takes to make your kitchen look totally transformed!

Cabinets

It might not be in the budget to change out the cabinetry completely, but there are little things that can be done to create a total makeover.

  • Replace doorknobs and drawer pulls with classic finishes such as brushed nickel or stainless steel for a brand new look. Hardware stores carry a variety.
  • Painting cabinets always make an instant upgrade. Ask a knowledgeable Realtor what color is the most popular. Add a pop of color by simply painting the inside of the cabinets.

Backsplash

Have some fun with this update. Make a bold statement or blend it into the background. If it is outdated, it’s fairly simple to replace it DIY. This is a way to help make a kitchen stand out from the others on the market. Realtors often select subway tile and while white is the most popular, a color can be used to coordinate with the countertops.

Flooring

Refinish wood floors or replace broken ceramic tiles. For scratched, torn, or faded linoleum, it might be time for a complete redo. Most Realtors will confirm that hardwood flooring is the biggest preference closely followed by tile. Consult with a good Realtor on which is the best seller in the neighborhood.

Countertops

A bigger job but can make an incredible difference in the kitchen. If changing the countertops and living in the home for a time before selling it, install what is enjoyable to live with but will also add value. If changing countertops to sell a home, upgrade to the standards of the neighborhood.

Lights

Replace old and outdated light fixtures with pendant lights. Spray paint any brass fixtures. Upgrading lighting fixtures can help improve potential buyers’ first impressions. Buyers all know they will spend most of their time in the kitchen and proper lighting is a good purchase. Proper lighting can make the difference between a dull room and a rich first impression.

Stage

Potential buyers want to envision themselves and their “things” in the kitchen. Again, have a Realtor that will speak the truth of what should be done.

  • For eat-in kitchens, use a smaller table and chairs to make the area appear larger. Place a throw rug under the table to define the separate space.
  • A few well-placed plants bring life and warmth.
  • Add gourmet touches to your now cleared counters such as a bowl of polished fruit, a full bottle of herbed olive oil, or a small wine rack.
  • Polish fixtures, replace light bulbs, and dust every corner.
  • Remove magnets from the refrigerator to help depersonalize.
  • Window treatments should be light or neutral colored.
  • Stow cleaning products under the sink.

The Botton Line: First impressions really matter in Real Estate. Within seconds, we all decide whether we like something or not. The house might be in the best neighborhood, but if the first impression isn’t up to par, it will be tough to sell. And, again, the kitchen is still king when selling a home and a “modern, updated kitchen” tops the list every time in surveys.

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Four Things You Can Do Right Now To Get Your Home Ready To Sell

Price: An unrealistic price tag is the top of the list. Most of the time when a home isn’t selling it is because it is overpriced. No matter if the market is a “buyers” or a “sellers”, no one will overpay for a home. A Realtor with experience especially one that knows your neighborhood will help you to evaluate and set the right price. Search the internet to find a Realtor.

Landscaping: The very first thing buyers see when they pull up to your home for sale is your yard – the lawn, the plants, flowerbeds. You don’t have to spend a lot of money. Mow your lawn, remove sticks and leaves, trim your bushes, add some mulch in flower beds and trim trees if needed. Clean the gutters, patch up the driveway and the concrete walkways. If you have a fence, look for where it might need repairs. Add some potted plants.

Exterior: Not only will buyers notice the landscaping, but the outside of your physical home will speak volumes about what the inside looks like. There have been times that buyers cancel going into the home just by judging the outside. Consider updating projects that will make a big impact on the look of the home. Repairs like, roofing, siding and replacing windows. Or simple projects like painting the front door & adding new hardware to it. Rent a pressure washer for the exterior to get rid of dust, grime, and mildew.

Depersonalize: Take the “home” out of your house. Spend time gathering personal items like family photos, memorabilia, personal keepsakes and anything political. You want future buyers to be able to picture themselves in your home. Most of the items in your bathrooms are probably personal, makeup, toothbrushes, bathrobe, etc. The best rule of thumb is to remove everything from your bathroom counters and in bathtubs and showers first. Then put back only a few decorative items like a hand towel, bath salts or candle but no personal care products.

The Bottom Line: Everyone is limited right now on where they can go. The safest place to be is at home. So, if you are planning to put your home on the market there are many things you can do while you are in “lock-down”. If you really think about it, there has never been a better time than now to get projects done at home.

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Increase the Value of Your Home, Inexpensively

family in new house

Considering selling your home by next Spring? You will want to get the best price, of course, so start now by getting your home in tip-top shape. You don’t need to spend a lot of money and can do much on your own. Here are a few ideas and if you need guidance, calling the most experienced Realtor to visit and give you advice is always a good idea.

Deep Clean: Start with decluttering every room and closet. Donate, sell or throw away things you don’t use anymore. Vacuum, mop, & dust every surface, every vent, every blind and scrub the bathrooms. Get down on the floor and get your baseboards and lower cabinet doors wiped down. Wash the walls and make all your windows sparkle. Steam-clean all the carpets. These are all perfect cold, Winter day chores to tackle.

Paint: While you may love your brightly painted rooms, they make it harder to sell as the potential buyer usually can’t see beyond your taste. Use neutral colors and watch as minor flaws are hidden and the rooms are brightened. Simply paint the trim and see a new room appear! Just updating paint jobs, especially in the master bedroom the entry foyer, living room, and kitchen can increase the value of your home.

The Face of the Home: Rent a power washer if you don’t have one and transform the exterior of your home from “lived in” to “like new”. Use it on the siding, brick or wood, sidewalks, driveways, decks, porches, garage doors, any porch furniture that is left out and windows.

Landscaping: Depending on the time of year – if it’s right now, Fall, get the leaves up and off the ground. Rake out gardens and pick up sticks. Cut down any low hanging branches or twigs. Removed dead shrubs and make sure the property is well-edged.

Spruce Up Your Kitchen: No need to gut and rebuild. Add value by replacing cabinet hardware, the faucet in the sink, even appliances if they are dented or overused. Repaint walls and even cabinets.

The Bottom Line: There are so many ways to upgrade your home before you sell it and literally up the value by thousands. A simple change of light switch and outlet covers make a world of difference. So, if you are waiting until Spring to list your home, spend the dark Winter months knocking off a to-do list!

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First Time Home Buyer Tips

Home buying or selling is stressful. It’s worth knowing what to look out for –and what mistakes to avoid – when buying a home.

Be sure to have your loan pre-approved, not just pre-qualified before going house hunting. You want to be in the best negotiating position. Shop around and then meet with a financial institution to help you understand the mortgage process and your own financial situation. They will be able to better prepare you on knowing what type of down payment you can afford and help you to not make the mistake that is often made – spending all on the down payment and closing costs. You want to be able to cover any unexpected repairs or necessary renovations.

Get the home inspected by a reputable inspector. The seller will have had the home appraised, but you will want to have an inspector look for problems all throughout the home. He will look at the roof, foundation, plumbing, electrical system and make sure the home is functional when you move in.

Keep your emotions in check! Hire the best, most experienced Realtor and he or she will help you to remain level-headed. Take in all of their advice and use their knowledge of the real estate process. There will be many emotional ups and downs when you are buying a home, and your judgment can get clouded. Knowing your price range is important. Do not look at homes over your budget – that is the easiest way to get emotionally sucked in.

Owning a home can be a great investment. As a homebuyer, search for a home that you can add value to, as this ensures a rise in the equity to help you climb the property ladder. Having an experienced Realtor is key to learning about the best location and which neighborhood will always be one that grows. Often it’s best to buy the smallest home on the nicest block of big homes. Doing this will give you plenty of room for building equity as you update the home.

The Bottom Line: It can take weeks or months, even a year to find the home you want to buy. After some time, stress and exhaustion can have a hand in making rash decisions. To stay away from the common pitfalls, having a Realtor by your side is one of the best decisions you can make. He or she will negotiate real estate deals, guide you through the process and give you professional opinions and recommendations, as well as help you keep your emotions in check.

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