Tag: mortgage

Emotionally Detaching From Your Home to Sell

According to the National Association of Realtors, the average number of years people stay in their homes is anywhere from 10-20 years. Owners and their families end up having great and often life-changing events and memories that happen under their roof. Their home is the biggest investment made and they become attached emotionally.

Having buyers come in and walk through their home, opening closets, cabinets, and drawers, walking through the bedrooms, looking behind furniture, and then criticizing (!!!) their beloved home can be soul-crushing.

Thus, the first hurdle to overcome after having made the decision to sell is to let go emotionally. Time to start looking at it as a positive financial opportunity and become distant from all the aspects of the property where memories were created. It’s hard pulling hearts away from recalling the moments; the paint colors, the perfect carpeting picked, a child’s first bedroom, or a dining room that held so many family dinners. The secret is to acknowledge that selling the home is going to be stressful and emotional upfront and hopefully that will enable good decisions going forward.

Once personal items like pictures, knick-knacks, etc. are removed to begin staging which it won’t feel as much like “home”. A good Realtor will give great recommendations to help make the home more neutral – maybe painting or pulling carpet – all of which will make the home seem more like a product that needs to sell and help to remove emotion.

It’s common for a seller to overprice their home when they are emotionally attached. The price of the home should be based on the market and the comparable properties, not the value the owner, someone with memories, puts on the home. An experienced Realtor will establish the price.

If a low offer should come in, it’s best to look at it as good news! Someone loves the home enough to even make an offer. The Realtor will negotiate and learn what the seller likes and dislikes keeping the owner out of that process while simultaneously keeping emotions out of the equation.

The Bottom Line: Make sure you are truly ready to sell your home. Make a list of the pros and cons of why you want to move and evaluate. Have an experienced Realtor help you once you have made the decision and realize that sentimental value does not translate to monetary value so you will need help pricing your home accordingly. Keep your emotions in check, make a clean break, and put your energy and time into making your new house the home of your dreams!

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Do You Need A Realtor To Buy A House?

The answer is no. You could buy a home without using a Realtor, but why? Is your hesitation because you believe that you will be paying the Realtor fees? Typically, buyers don’t pay the commission-the sellers do. There are no legal requirements that you need to have a Realtor in order to buy a home unless it’s on a Federal Housing Administration foreclosure property. There really isn’t anything stopping anyone from buying a home on their own, but we offer you a few reasons why you should have someone on your side advising you through the process.

Sure, you can look through the many internet real estate listings, but a knowledgeable Realtor can cut through all the fat, plus have access to other sites, know the neighborhood comps, have contact with other agents in town with “pocket listings” and sometimes know the background (or the “skinny”) on a few homes. A Realtor is going to do all the dirty work and guide you through it all.  They are going to research the market trends and other important information that can be tedious. When almost everything is accessible online, it can be easy to adopt false confidence that encourages you to handle it all yourself.

The housing market is immense, there are literally thousands of options available and it can prove to be difficult to narrow down which homes are even worth looking at.  Your Realtor will have data about crime rates, education options, local businesses, commute times, zoning codes and a lot of other information that will influence your final decision.

Once you fall in love with a home, a skilled Realtor will have been through many homes and is trained to look for issues that might be hidden from you. Once the problem is identified it can be addressed and the Realtor can ask for it to be repaired.

Real estate agents are negotiation experts. If you buy a home without an agent, you’ll have to negotiate and decide how much to offer on your own. This may cause you to unknowingly overpay for your home – or lose out on the one you want. The Realtor will negotiate on your behalf with the seller and seller’s agent.

The vast knowledge of market conditions and comp sales coupled with the Realtor’s knowledge will help put together a competitive offer at the best possible price.  You will be given information on at current home conditions to find any issues that could be leveraged during negotiations. The Realtor knows how to navigate through the many documents plus be your voice when the negotiating begins.  If you end up with questions and concerns or are completely confused, your Realtor will be able to clarify all the clauses, contingencies and jargon-filled fine print as well as find hidden fees and conditions that many people tend to skim over.

The Bottom Line: Anyone can shop for a new home without a Realtor. Buying and selling a house is one of the largest financial transactions people make in their lifetime. Realtors earn their commission by making sure you know exactly what you are doing. They are helping you through the many pages of documents required on the transaction. They are with you during the inspection (pest, foundation, furnace, sewer, electrical, plumbing, etc), appraisal, and disclosure. It’s in your best interest to use the resources of a skilled Real Estate Agent.

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How To Stage Your Home for Sale

A well-staged home can make people feel comfortable and at home, which is likely to increase the sale price.

Staging your home well allows buyers to see themselves in that space, which can help them become attached to it. This makes it harder to walk away without feeling a loss. The more attached to the space they feel, the more likely they are to make an offer.

Clean and Open Up the Space

Before showing off your space, take time to clean and declutter. This includes putting away unnecessary furniture, throw blankets and pillows. If you have too much stuff, put some of it in storage. Make the space minimal, and then add a few touches to make it feel like someone’s home. The space should look livable, but not lived-in.

Don’t Make It Too Personal

When inviting people into your home, it can be tempting to show off your style. This is your space, and chances are you have worked hard to make it comfortable and appealing to you and your friends and loved ones.

Remember, you want to appeal to as many buyers as possible. More interest from buyers means more bidding, and that usually means a higher sale price.

If you want to appeal to more potential buyers, it’s better to play it safe with décor. Consider putting away personal and unnecessary knick-knacks. Think clean lines and safe colors. If you decorate with books or art, try to keep the selections relatively neutral.

Consider Hiring a Professional

While staging on your own can keep costs down in the short term, hiring a professional may be worth the cost when the home sells. We tend to become attached to our spaces and design choices. An outside party who has worked with a wide variety of audiences as a professional will have an eye trained for mass appeal. Hiring a designer may even pay for itself if it increases the sale price.

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The Partnership of a Realtor and a Title Agency

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

ACCESS TO PROPERTY INFORMATION:

Title First Agency can help Realtors by getting the names, addresses, and phone numbers for properties that their clients are interested in buying. Maybe the buyer wants to find a home of a certain age or in a particular area – whatever it may be, a Title First Agent has the ability to access a lot of data and can find the information needed. Buyers often drive around neighborhoods that they want to live in and see the perfect home for their family. A Title First Agent can look up the information of who owns the home and how long they have been there at the exact address. This will enable the Realtor and the buyer to put together a homebuyer’s letter to the owner.

ADVERTISING AND MARKETING:

Title First can assist Realtors in promoting their business with our full line of marketing solutions. For your next listing, make a good first impression on potential clients and prospective buyers with a bound presentation of property information. We have the ability to help you design, print, and mail your full-color glossy, postcards. Use our Net-to-Seller tool that will help estimate a client’s profit and present it in a professional format to be shared. Or, give our Title First Agent App a try to provide a higher level of service to your clients. This app will enable you to give quick and easy estimates to any real estate financial question. The app features net sheets, quick estimates, closing, costs, prorated taxes, and much more. Finally, email us your MLS link, logo, and personal photo, and let us create a professional full-color info sheet for your listing.

Title First Agency has experienced real estate lawyers who have worked many years through settlements and closings. It’s an invaluable asset to always have legal experts on hand with a good title company. The buyer, seller, and you, the Realtor, can have peace of mind that purchases and end-to-end processes of closing on a property are performed seamlessly and on time.

The Bottom Line: At Title First Agency, we measure our success by your success. That’s why we offer a variety of services to help you grow your real estate business. Beyond the listed services, the issuing of insurance, and performing title searches, we can manage the escrow account for the home sale. We safeguard all money and documents related to the transaction for the parties involved, such as the deed to the home, closing costs, earnest money deposit, and the down payment.

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The Virtual Home Showing

Back in 2019, before the dreaded pandemic, there were occasional situations in which a home buyer was unable to view a specific property in person. Whether moving from out of state or navigating busy work schedules, when a buyer is unable to make an in-person showing, agents would show a home virtually, live or pretaped.

Now, the ability to have a virtual showing of a home to a buyer is crucial. The pandemic has put us all on a reboot. Everything has changed – how we buy and sell real estate how we shop, and how we interact with others. With limited ability to travel, or even be in the same room as someone who is not part of our household, many businesses and industries have had to change their game.

Technology can put agents and buyers in the same room as a potential home, to help narrow a buyer’s choices. Through platforms like Facebook, FaceTime, Skype, and Zoom, Realtors have been able to quickly adapt to the times without having to worry about draining their marketing budgets or struggling to learn new technologies.

Be ready! Just like an in-person showing, virtual showings must be pre-staged, the walkthrough must provide the clients with a sense of the layout, and the online experience must be easily accessible to all users. Don’t forget the outside of the home – where you should begin your tour as you would normally. You’ll want to make sure the buyer is getting a good look at the exterior from all angles. Buyers will want to get a grasp of the home’s curb appeal, the parking situation, and the surrounding neighborhood as much as possible.

You’ve got to drastically cut down on clutter, and make each space shine. Open the shades and turn on lights to eliminate unnecessary shadows. There is such a thing as too much light – which will overexpose your visuals and make things harder to see.  Let your Realtor run a practice showing a day in advance. Try to do it at the same time as your scheduled showing to replicate what the conditions are during the scheduled tour.

A live virtual tour will give prospective buyers the opportunity to ask questions on the spot and go back to certain areas for a closer look. Expect buyers to ask directions, such as zooming in on a spot, opening a closet door, or taking a step back. Don’t forget the attention to all the little details, upgrades, finishes etc. In addition give some brief information about the neighbourhood, local amenities, schools, facilities and so on.

The Bottom Line: More than ever, agents are relying on virtual showings for when their buyers are unable to see homes in person. Technology can now help you bring those clients into the listing virtually, and provide nearly the same experience as if they were standing in the home with you. 

You can record your livestream video and reuse it for YouTube or to publish on your website, Facebook page or other Social Media platforms. This can generate many additional leads and prolong the life of your tour. 

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MYTH: You Don’t Need Title Insurance and Other Fables

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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The Messy Next Door Neighbor

You’re about to put your house on the market and it’s in tip-top shape. You’ve done everything you can to make your home shine. You’ve hired the best Realtor, it’s been professionally staged and your home is priced right. But, there is just one problem. The messy neighbors next door could potentially scare away buyers. What is your game plan? Here are some peaceful ideas.

The first step of dealing with difficult neighbors should be to approach them in an open and non-confrontational manner. In a respectful and diplomatic way, let them know you are preparing to sell your home and would love their help, but without insulting their home. Let them know you would appreciate anything they can do to showcase the neighborhood well.

There may be reasons the outside of the home looks unkempt. The owner could be sick, or there is a new baby, to name just a couple of reasons. If they complain that it would be too difficult for them to do, offer to help clean up the mess, or hire professionals to get the job done. While it will be money out of your pocket, you won’t be forced to lower your asking price and in the end, you will be able to recoup that when you sell your home. A professional yard clean-up typically costs approximately $500 per quarter acre of land, so to put this cost into perspective, $500 is only 0.2% of a $250,000 home. Even if the clean-up only increases your property value by 2%, you’ll recoup ten times your investment.

The next step if your efforts are futile would be to try city hall. Explore how they can help you. Many cities and counties have ordinances that prohibit things such as a vehicle on jacks, old tires, or an inoperable trailer/truck parked on a lawn. Beyond being an eyesore, it could be dangerous to a child who might wander onto the property, thus the police should be contacted. The fire department and health officials might be concerned about any tall, dead grass that could be a fire hazard and an attraction to rats or other animals.

The problem may not be the fault of the homeowner if they rent out their home and their tenants aren’t taking care of it or behaving in a way that impacts the neighborhood. If after you have had a kind conversation with them and things still aren’t getting better, you should find the owner. Your Realtor will be able to assist you in tracking him down and help in encouraging cooperation from him.

The Bottom Line: The effects of a messy neighbor can be major. The entire neighborhood can be beautiful, but if there is just one home that has overgrowth, messy gardens, waste, or junk spread about it can bring down the value of all the homes in the area. While you might be the only one putting your home on the market at the moment, you can probably get the other neighbors to help the situation. A clean yard benefits all.

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Paying Cash For a House

You’ve offered to buy a home for cash and it has been accepted. You will make the earnest money deposit and provide the evidence of the available funding as soon as possible, if not before signing the contract. It’s still important to get a title search done, conduct a final walk-through, have inspections all before you go to closing where you will sign paperwork to transfer the property.

Buying a home for cash may feel great, but it’s not always the best choice for everyone who can afford to do it.

THE PROS

Faster Closing

First, sellers may take less than the asking price to a buyer who offers cash. Closing costs are lower and there aren’t any fees for a bank attorney or mortgage broker. There are no loan origination fees or other lender fees assessed. During a typical home sale, it averages about four weeks to close. If you’re buying in cash without a lender the closing can happen within as little as a week.

No Contingencies

Mortgages can fall through for buyers that are preapproved. When you pay in cash, you eliminate that possibility. Presenting a cash offer removes the need for a financing contingency which is usually a requirement in a real estate transaction where the buyer is using bank financing. Depending on market conditions, the buyer may present a lower offer than what other bidders with financing are offering the seller. The seller may be willing to accept a lower purchase price in exchange for being able to close a deal quickly.

You Own Your Home

Bottom line, if you’ve got a mortgage, you don’t actually own your house — the bank does. When you buy a house in cash, you can feel secure knowing that no one can take that house away from you, and big, unexpected problems like a job loss won’t leave you without a roof over your head. Furthermore, you have immediate equity in the property.

Interest Money is Saved

Even today when interest rates are extremely low, interest paid on mortgage loans adds up to a large sum of money, sometimes you would be paying nearly double the asking price of the home.

THE CONS

Tying Up Your Funds

If you spend your life savings buying a house in cash, you’ll tie up all your money in one large investment. The money you use to buy your house isn’t liquid (meaning you don’t have direct access to the cash, and you’d have to sell your home to get your hands on it), so if you need your money for any other reason, it won’t be readily available. Additionally, you may face a shortage of cash that could have been used to invest in other lucrative assets. Taking some of the cash you use to pay for a home and investing it instead, could possibly make you more money in the long run.

No Tax Deductions

A buyer that uses a mortgage to purchase a real estate property enjoys tax breaks on the mortgage interest payments. When a buyer decides to purchase a home using cash only, they miss out on the tax deductions that they would’ve enjoyed if they used mortgage financing to complete the transaction.

Extra Title Protection

Reviewing the title for any other claims, liens, or issues that could prevent you from taking full ownership is all part of the home-buying process. The title research takes place whether you pay in cash or get a mortgage, and it’s always smart to get title insurance on your investment, which will protect you in the event that the title research missed any claims.

When you get a mortgage to buy your house, there’s another entity interested in making sure the title is clear and that you stay in the house and keep paying your mortgage: the mortgage lender. Your lender will secure title insurance, too, so that if there is a claim filed at some point, you’ll have an additional layer of protection that a cash buyer wouldn’t have.

The Bottom Line:

It’s scary to spend your entire nest egg in one place. If you can pay cash for a house and still have money left over for emergencies, home repairs, and other unexpected things that come your way, paying in cash is probably a great financial move. On the other hand, if paying cash for a house completely wipes you out, you might want to reconsider.

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Prepare Your Home to Weather Cold Temperatures

Indoor Preparations

  1.  Insulate exposed pipes to prevent them from freezing. These pipes are often found in crawl spaces, exterior walls, attics and garages.
  2.  Make sure your attic is properly ventilated and insulated. This can prevent ice dams and costly water damage.
  3.  Test your heating system early to make sure it works before it gets too cold.
  4.  Replace your air filters and make sure vents are clean and clear.
  5.  Insulate your water heater to help it work more efficiently in cold weather.
  6.  Test your smoke and carbon monoxide detectors. Heating, candles, holiday décor and storms can increase the risk of house fires and dangerous CO levels during the winter.
  7.  Make sure your doors and windows seal correctly. In some cases, you’ll need to seal exterior gaps with caulk. In other cases, you may want to invest in more energy-efficient windows.

Outdoor Preparations

  1.  Check the roof for loose, damaged or missing shingles. Make repairs before the winter storms hit to prevent more serious damage to your roof and your home.
  2.  Clear out all the gutters to make sure water drains properly. This can prevent expensive water damage inside and outside your house.
  3.  Shut down your sprinkler system and blow out the line. (You may want to hire a local professional for help.)
  4.  Disconnect and drain outdoor hoses and faucets to prevent freezing.
  5.  Repair cracks in driveways, walkways and stairs leading to your house. This makes your home safer and makes it easier to clear snow.
  6.  Put away or cover patio furniture, barbeque equipment, gardening tools, etc.
  7.  Stain or seal your deck so it is more resilient during winter storms.
  8.  Check the trees in your yard and make sure there are no weak branches that could damage your home (or someone else’s property) if they broke under a heavy snowfall or in a windy storm.

We wish you well this winter! Contact us anytime if you have questions about your home financing options.

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The First Offer Is Usually The Best

Often, when a seller has taken the time to properly prepare their home for sale, and they’ve hired the best Realtor who takes pride in presenting and marketing that home well a seller will receive offers right away.

The time a home is on the market to sell decreases its value. The longer it is listed the less interested buyers and Realtors are in the property. People will begin to wonder what is wrong with the property. Sellers are in the best position to get a good price for their home when it is new to the market. If the home does not sell buyers become suspect.

So that first early offer? Sellers tend to reject it because they felt it happened too quickly and they want to hold out. Days, weeks even months later, they find themselves settling for less. That first offer should always be taken seriously and it’s probably the best opportunity you’ll have to control your price and terms. It might not be what the seller was hoping for, a good Realtor will walk the seller through a counteroffer, and even the ability to negotiate for other details can work for the seller.

With a “for sale” sign in any yard too long, no matter the reason, it makes it more difficult to stir up interest. As the days go on, the home becomes less desirable. The market could change and take a downturn leaving the home that is priced on the comps when it was listed, now priced too high. An identical home could enter the market at a lower price. 

The Bottom Line: The first three weeks are usually the most active that a property will have. If an offer is made during that time it’s worth working with that offer unless it’s ridiculously low.

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