Tag: closing

Is Your House Just Sitting On The Market?

Having a house sitting on the market can be expensive, stressful, and soul-crushing. There may be hundreds of reasons, but the following are the most common.

Priced Too High: Even if everything about your house is on point, if it’s priced wrong for the current market, it’s not going to sell. Be sure to use the best Realtor in your neighborhood who will provide you with a list price that they derived from looking through comps. The Realtor’s price may differ from the price you want to list it for, but at the end of the day, the listing price should be guided by comparables, not emotions. When residential real estate inventory is low, the market is hot for sellers. But that doesn’t mean buyers will overpay for a home. 

Online Presence: The first stop for buyers is usually Realtor.com, Zillow, Trulia as well as Realtor websites. If they see a home with terrible photos and bad lighting, they will keep on scrolling. Don’t use an iPhone, hire a photographer. Professional photos will make your home look at its very best online. They know all the right angles to give you the best light possible. They make homes look larger and showcase their best features. Make your home stands out against all the other homes people are seeing online. Money spent on photography could mean less time on the market and more money at closing time.

Personal Items: Too much furniture, galleries of personal pictures on the walls, or knick-knacks everywhere can make it too hard for buyers to imagine that they live in your house instead of you. Are your bathrooms clean? Is your walk-in closet jam-packed or organized? How about your appliances in the kitchen – do they sparkle? Not every buyer is a pet lover, so seeing, hearing, or smelling your dog or cat is something to be avoided at all costs. Don’t let your mess cost you a sale.

Needs too Much Work: A long list of maintenance issues can turn buyers off and potentially decrease the value of your home. More importantly, buyers expect the condition of your home to match the description. The more repairs that are needed, the less likely a buyer will want your house. Many buyers simply don’t want to deal with the cost or effort of doing repair work, even if it’s just a bunch of small repairs, such as tightening a handrail or replacing a broken tile.

No Marketing: You’ve got great pictures, but your Realtor might not be using the many social media resources. Social media should be an essential piece in your Realtor’s marketing package. There should be very focused marketing – your home should be directed towards the correct audience (age, financial status, and motivation of buyer) for your home. Highly targeted online marketing can include specialty websites, targeted online ads, and targeted and boosted social media engagement. The more buyers your home is exposed to, the more showings there will be, and the higher chance of an offer being received.

The Bottom Line: Hire an experienced, knowledgeable Realtor. To find that person ask neighbors, look at homes for sale in your area on the internet and see the photos used, look through social media at who is using it properly to market homes, and then interview several. Taking for granted the importance of hiring a top agent can stall the sale of your home.

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Clean Title at Closing

For a home sale to close there should be a clean title.

A clean title means there are no standing claims against the property and that the owner has the full legal right to sell the property. The job of the title company is to do the necessary work to ensure that the title is clean and ready for a smooth transfer of ownership.

Sometimes it gets a little bumpy. Hidden claims against the home must be resolved for the sale to go through. Most are easily resolved while others can be challenging.

Here’s ar a few types of claims that title agencies see most often:

Mechanic’s Liens

A mechanic’s lien is typically placed on the property prior to a contractor doing work to improve the property. It covers the cost of materials, equipment, and labor associated with the project. When the job is completed and paid for, it’s the contractor’s responsibility to release the lien. If that doesn’t happen for any reason, it becomes an issue to be resolved prior to settlement.

Bankruptcy Liens

A bankruptcy filing connected to someone holding title to a property is another common problem we see. When the bankruptcy situation is resolved, the lien must also be addressed. From time to time, that doesn’t happen and it takes some effort from the title company to clear the title.

Child or Spousal Support Liens

When a lien is filed for delinquent child support or spousal support, it can still be connected to the title, waiting to be discovered, even generations later.

Delinquent Tax Liens, Fraud & Forgery

Similarly, liens related to unpaid or late tax returns can hold up the process if left unresolved. Fraud and forgery are also common in the event that one person on the title signs the name of another person on the title, typically a spouse.

The Bottom Line: These are just a few issues that can cost a sale. Having the best title agency examine the title on each property is in your best interest. At Title First Agency, we work with Realtors from the signing of a contract to the signing of the closing, ensuring that the transactions run smoothly and close on time.

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What is the MLS?

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

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

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

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

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

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

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

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Upgrades For Your Home That Will Save Money and Energy

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

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

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

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

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

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

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

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

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

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

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

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Title Insurance Myths

MYTH: You don’t need 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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Get Your Offer Accepted

After searching online real estate sites, visiting open houses, and going on tours with your Realtor, you’ve finally found your dream home. If you’re willing to pay the asking price, the process should be simple, efficient, and worry-free. But often it is not. In a seller’s market, there are more home buyers than there are homes on the market. Your full-price offer will probably have some competition, so how what are some ways you can craft it so that it lands the perfect home?

A qualified and knowledgable Realtor is important. He will be your right-hand man, especially when it comes to finding the perfect home, making an offer, and negotiating the sale. For the buyer, this is a very emotional, stressful process so it is important to let the Realtor guide and advise you. If you have researched and hired the best Realtor, he will have plenty of years of experience and plenty of deals under his belt, thus being your primary source when you make that offer.

Get your pre-approval letter that will show readiness to buy a home. Not only does it solidify how much house you can afford to buy, but it also helps you determine if you should buy a house for the total amount you’ve qualified for. Plus, when you can supply a preapproval letter with your offer, the seller knows you are a serious candidate and are ready to get the deal done. In competitive real estate markets, it’s basically guaranteed that you need a preapproval letter to have a chance at catching the seller’s eye. 

Limit the contingencies. Contingent offers are common because they protect the buyer from the conditions of unexpected repairs, insufficient value, and title defects. If any of the conditions aren’t met, either party can consider the contract null and void. Contingencies typically benefit the buyer, and you can’t expect a seller to get multiple offers to accept unnecessary contingencies. With multiple offers on the table, they have more leverage. 

Your Realtor should let you know, however, that there are contingencies you absolutely do not want to remove such as a home inspection. After all, the last thing you want is to purchase a home that you can’t afford the repairs for. Limiting contingencies can make your offer more appealing, but make sure you don’t give up too much. Again, your Realtor will be your guide on strategy and approach.

Offer earnest money, also known as a good faith deposit, to put down prior to closing. Not always required but a good idea to offer it to show the seller you’re serious. When a buyer and seller enter a purchase agreement, the seller takes their home off the market. If the buyer backs out and the seller needs to relist their home, it can be very costly and they might have missed out on more serious buyers. 

Earnest money protects the seller in case the buyer backs out of the agreement. Typically, it’s around one to three percent of the sale price and is held in an escrow account until the deal is finalized. If the deal goes through, the earnest money is then applied to the buyers’ closing costs or down payment. 

The Bottom Line: Over the past couple of years, the real estate market has been so hot that it’s not unusual for homes to go off-market in days. We are even seeing homes that need serious work breaking price records. It’s easy to feel pessimistic if you are a buyer. Don’t give up. Make sure you have the best Realtor as your wingman and know that the key to getting your offer accepted in a heated market is to present the easiest, stress-free scenario for a seller.

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Buy the Least Expensive Home in the Best Neighborhood

Imagine finding the home of your dreams for sale and it’s the most expensive home on the street. And, it’s in your price range. Are you about to score!? Be careful. Making an offer on the best house in the neighborhood may not be economical.

Why should you not be the one with the best house? It makes a lot more sense—financially, anyway—to buy one of the lesser homes in the neighborhood. Every improvement you make will add to its value and increase your equity—and you’ll have a pretty high ceiling here, figuratively speaking. When you buy the lesser home in the neighborhood, it becomes much easier for you to increase the value of your real estate investment.

Not every single home that is purchased will result in a profit – real estate, like any other investment, is a gamble. Buying a home is often the biggest investment you’ll ever make. So, regardless of everything, you still should look at it as that: an investment. Resale value should always stay top of mind. 

If you have the least expensive home in the neighborhood, the other homes will actually drive your home value up. But the opposite is also true. If you have the most expensive house, the other homes will drive your home value down. This is another reason why mid-range homes tend to have a higher price per square foot than the fancier homes down the street. 

If the market shifts, and it does about every 7 years, you may be stuck at the top of the market in your area. When times are tough, buyers will opt for a less expensive home in hopes of getting a better deal. 

Having a knowledgeable Realtor is so important.  They understand the importance of resale value while you search for your home. They have all the market information you need to make a good decision. If there aren’t any comps to support the high price tag it will be harder to get a bank loan (unless you have cash!) Your Realtor, if you have found a great one, will ask the listing agent where he or she based the listing price. Normally listing agents will list homes based on past sales in the immediate market area unless the sellers themselves set the list price.

The Bottom Line: Why let lesser valued homes in the neighborhood drag yours down? Buy the smallest house in the best neighborhood and let the neighbors’ values bring yours up. A low-end house can be upgraded to your own specifications to increase the value to the average of the area.

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A Few of the Worst Home Selling Mistakes

Bad Photos: It all begins online today. Buyers are looking for their future homes on the web before they go see it in person. Do some homework and investigate – find the best Realtor to hire that is competent with their internet marketing strategy. Beautiful photos fall on your real estate agent. But! You should know that bad photos can be an impediment to the sale of your home. Thus, as a seller, it’s imperative that you must demand great photographs of your home. Most potential buyers in your market will be exposed to your home the first day it hits the market. Avoid “photos coming soon” and if you have to – wait a day or two for the perfect photographs.

Overpricing: The most common mistake sellers make. The Realtor you hire will suggest a price at which to list your home based on comparable homes that have already sold in the market. Overpricing a home just to see if you can score big is not a strategy for anyone really serious about selling. Overpricing a home will lead to missed opportunities with buyers that looking in the range at which your home should be listed.

The first 30 days your home is on the market is when there are the most eyeballs looking and you have the most leverage as a seller. If your home is overpriced during this timeline to “see what kind of offer you can get” you will lose traffic and attention during the critical 30-day window.

Too Much Clutter: If you have hired the best Realtor, he/she will have absolutely walked through your home with you and directed on what and how to declutter. People feel space more than anything.  That’s why ten-foot ceilings make houses feel bigger than eight-foot ceilings, even though the square footage is the same.

Decluttering has the same impact.  It increases the perceived size of your home.  Whether it’s removing pictures from hallways, kitchen appliances from the counter, or removing the bathroom hairdryer, all of these things consume the perceived space in your home.  The phrase “less is more” is really true when it comes to showing your home.  It makes a difference in your buyers’ perception of how big your house feels.

Emotional Attachment: You love your house. You have a million memories stored. However, it’s time to emotionally detach let a new family take over your house when you’re selling. Do your best not to be offended by a hopeful buyer’s demands. Be willing to adjust in reasonable ways you might not want to in order to make the sale. Don’t ruin a selling opportunity because you refuse to leave a light fixture behind that the buyer really wants because you’re attached to it.

Making “Thrifty” Repairs: Even small defects can turn buyers off. If they walk through your home and find loose doorknobs, leaky faucets, or wall dings, they’ll wonder if you’ve been neglecting bigger issues in the home as well. Some sellers ignore major repairs in hopes of closing the sale before anyone notices. However, if the home inspector catches detrimental damage, it will likely halt the sale until repairs or an agreement can be made.

Hiring the Wrong Realtor: When listing a home much of the success lies with the real estate agent you choose. Don’t hire the first one you meet. Search their online presence. If friends are giving you names to get in touch with ask, “why?”. Why are they the best? What have they done that was impressive? Many sellers will hire an agent based solely on the list price given by the agent, only to be thoroughly frustrated and disappointed down the road. 

Look for an agent that is compatible and communicates effectively who backs up what they say with data and finally who has a strong marketing plan. Experience matters.

The Bottom Line: There will be challenges and obstacles along the way as you list your home for sale. With the right guidance, you can avoid these common home selling mistakes. Your decision on a Realtor will have a major impact on the results you get and how much money you walk away with.

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Enhance Your Home’s Value Quickly and Inexpensively

If you are ready to sell, there are plenty of ways of increasing your home’s value that doesn’t require an extensive renovation project or a ton of money.

Your ultimate goal is to gain the maximum return on investment in the least amount of time. DIY projects can help to accomplish the look you want while staying within your budget. Whatever your circumstances are for renovating, here are a few cost-effective home improvement tips to increase the value of your home. 

1. PAINT

One of the most simple, cost-effective improvements of all is paint! Paint makes the walls in your home look brand new! It’s easy, affordable, and incredibly valuable. By painting over all the scuffs and nail holes on your walls, you’re going to make your entire house feel cleaner and newer instantly.

To maximize value, choose a light, neutral color. By going with a light color, you help the home appear larger. And by sticking with neutral tones, you help the home appeal to as many buyers as possible.  

2. REPLACE FIXTURES

Outdating lighting and plumbing fixtures can drag down the entire vibe of a home. But by replacing the old fixtures with either timeless or trendy ones, you breathe fresh life into the space. 

If you’re planning to sell in the very near future, trendy fixtures will probably get you the best bang for your buck. But if it will be a little while before you sell, and you don’t want to have to replace the fixtures again before listing your home, it’s probably best to stick with timeless fixtures that won’t instantly date themselves. 

Make sure your fixtures match the property in both style and quality. HIgh-end homes require more expensive lighting fixtures while mid-range homes can be updated with less expensive fixtures.

3. GET SMART

Smart home technology has become increasingly accessible over the past decade and is in high demand by buyers. Smart locks, security cameras, thermostats, and lighting all make your home more valuable, especially to tech-savvy buyers.

These systems can usually be installed without hiring a technician, so you won’t need to wait weeks for an installer to come out. Instead, you can boost your home’s value this weekend by installing these smart systems yourself. 

4. BOOST CURB APPEAL

In a world where first impressions are everything, the entrance to your home is a big deal. Not only is this how people will perceive your home when arriving in person, but it also sets the tone for your listing photos when buyers view your home online. 

Cleaning the front entrance, adding a fresh coat of paint to the front door, and sprucing up the landscaping in the front of the home all enhance your home’s perceived value without much time, money, or effort.

5. INCREASE ENERGY-EFFICIENCY

Buyers love energy-efficient homes. Many buyers are environmentally conscious and appreciate homes that work to conserve energy. And buyers are also aware of the cost savings that accompany energy-efficient homes. Buyers are usually willing to pay a little more for a home when they know they can save money on their utility bills month after month.

The Bottom Line: If you are considering increasing your home’s value so you can sell for top dollar in the near future, reach out to the best Realtor in your neighborhood.

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Title Problems Revisited

Every property has a history of owners.  That history is called an ownership chain, or more often, a title chain.  When a link in the chain has a problem, it’s called a title defect, or a cloud on title.

When purchasing a home, you may view title insurance as an unnecessary cost.  However, title insurance provides protection for both the seller and the buyer against title defects. Title insurance, as the name implies, insures against property title defects or ownership defects.  Some title problems may not become apparent for years. Others can hinder the sale of your home, and may even limit who you can sell your home to.

Here are some common issues that a title search mighty uncover:

PUBLIC RECORDS: Mistakes and errors happen but you do not want it affecting your home. The errors can be disastrous and cause you an undue financial burden to resolve. Simple clerical or filing errors could affect the deed or survey of your property.

UNKNOWN LIENS: Prior owners of your property may have left unpaid bills. And, even though the former debt is not your own, banks or other financing companies can place liens on your property for unpaid debts even after you have closed on the sale. This is an especially worrisome issue with distressed properties.

ILLEGAL DEEDS: While the chain of title on your property may appear perfectly sound, it’s possible that a prior deed was made by an undocumented immigrant, a minor, a person of unsound mind, or one who is reported single but in actuality married. These instances may affect the enforceability of prior deeds, affecting prior (and possibly present) ownership.

MISSING HEIRS: When a person dies, the ownership of their home may fall to their heirs or those named within their will. However, those heirs are sometimes missing or unknown at the time of death. Other times, family members may contest the will for their own property rights. These scenarios – which can happen long after you have purchased the property – may affect your rights to the property.

FORGERIES: Unfortunately, we don’t live in a completely honest world. Sometimes forged or fabricated documents that affect property ownership are filed within public records, obscuring the rightful ownership of the property. Once these forgeries come to light, your rights to your home may be in jeopardy.

UNDISCOVERED ENCUMBRANCES:  At the time that you purchase your home, you may not know that a third party holds a claim to all or part of your property – due to a former mortgage or lien, or non-financial claims, like restrictions or covenants limiting the use of your property.

UNKNOWN EASEMENTS: You may own your new home and its surrounding land, but an unknown easement may prohibit you from using it as you’d like or could allow government agencies, businesses, or other parties access to all or portions of your property. While usually non-financial issues, easements can still affect your right to enjoy your property.

BOUNDARY/SURVEY DISPUTES: You may have seen several surveys of your property prior to purchasing, however, other surveys may exist that show differing boundaries. Therefore, a neighbor or other party may be able to claim ownership of a portion of your property.

UNDISCOVERED WILL: When a property owner dies with no apparent will or heir, the state may sell his or her assets, including the home. When you purchase such a home, you assume your rights as the owner. However, even years later, the deceased owner’s will may come to light and your rights to the property may be seriously jeopardized.

The Bottom Line: 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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