Tag: mortgage

FSBO Is Not Easy – Call A Realtor

Ready to sell your home? Of course, you want to make as much money as you can from the sale and you might be thinking your best plan to accomplish that is selling your home yourself – FSBO –  to avoid paying a real estate agent, which is understandable. But, we offer you a few reasons why hiring a good Realtor is a better idea.

Marketing a home is not easy:  Listing your home online doesn’t take much effort. Anyone can do that, which is why you must make your stand out and be noticed. A Realtor will have avenues to get the word out to other agents who are working in your price range and neighborhood, an option you won’t have to sell your home on your own. The Realtor’s very own website, Facebook & Instagram account will attract prospects that you simply won’t have the access to.

Qualifying a buyer is not easy:  There is a big difference between pre-approved for a mortgage and pre-qualified. A skilled Realtor will be able to find out whether the person that wants to see your house is qualified or just curious. Having to prepare your home to show takes a lot of work and you surely don’t want to put your life on hold while you ready your house for show – just for a curious neighbor. Realtors are trained to ask qualifying questions to determine the seriousness, qualification, and motivation of a person calling to see your home.

Staying unemotional about your home is not easy:  Selling your home and preparing to move is never easy and always an emotional process. A good Realtor will be there to buffer any situations that might occur because you might be letting your emotions take over. Most buyers know that an FSBO home has been priced by the seller and is quite often overpriced because they can’t detach themselves emotionally from their home. Savvy shoppers realize that after a while, sellers who can’t sell their home will finally hire a Realtor and the home will be on the market at the right price.  If they have the time to wait? They do. If not? They move on to another home.

Being home during the showing is not easy: Or smart. Nothing makes the buyers more uncomfortable than having the seller present when looking at a home. With FSBO you will have to be there touring your home with the potential buyer. More times than not, the showing will be rushed and some of your best selling points will be overlooked.

Negotiating is not easy: Especially if it’s your own home that you love and have emotional ties to. Negotiating is a complex matter and all transactions are unique.   Skilled Realtors know the laws, the contracts, the comparable sales, the closed sales that the banks usually look at when they decide to lend the money for the purchase, and the appraisal. There are plenty of points to negotiate on before the actual sale takes place. Repairs to the house, lawn upkeep, and even additions can be negotiated in the contract that may ultimately affect the price but can be negotiated almost entirely outside of the price discussion.  For every negotiating point, there’s a tactic to handle it best.

The bottom line:  Working without an agent requires a huge investment of time, knowledge, and effort. Besides separating your emotions from the home you love and possibly raised your family in, you should know how to stage it to sell, market it, negotiate and be able to accept a negative response from potential buyers. You can try to do it alone to save money, but hiring an agent has many advantages.  Interview and find the best Realtor in the area. Expect that they will be able to get the most exposure for your home, help you negotiate a better deal, and dedicate more time to your sale.  The right Realtor will bring expertise to the transaction, financially and legally.with many financial and legal

 

 

 

 

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Real Estate Myths: Debunked

Are you ready to start looking for your first home?  Buying a home can seem intimidating, but it doesn’t have to be. Your home will likely be the biggest investment you’ll make in your life, which can also make it your biggest risk.  Don’t fall for the following myths:

Myth: If you pre-qualify for a loan, you will be approved for a mortgage

Loan approval involves an underwriter analyzing hundreds of pages of documentation, as well as considering other factors like the home appraisal report. A pre-qualification letter, however, is based on a quick, preliminary analysis of your credit report. Getting the letter is a recommended early step to show you’re a serious buyer, but it doesn’t mean a loan approval is guaranteed.

Myth: You need 20% for a down payment

There’s an array of loan options that don’t require 20 percent down — in fact, this amount is rare in today’s home buying market. According to the National Association of Realtors, 60 percent of millennials are putting just 6 percent down on average.

Saving for a big down payment can be advantageous, but you don’t want to deplete your savings or risk coming up short on your mortgage payment. Instead, you should save as much as possible for unexpected expenses.

Myth: You don’t need a real estate agent

Realtors are so important to the home buying process. Real estate agents get a commission, but the home buyer does not pay their fee. It is paid by the seller and is built into the selling price. Every seller expects to pay a buyers agent commission. If you show up without one thinking you can get a 3% discount on the price you will quickly regret it. Realtors help you get the lowest purchase price with their expertise and using comparables. Real estate contracts are long and often hard to understand for the average person. There are many items such as home appraisals, inspections, opt-out clauses, etc. that you need to know about in depth in order to protect yourself.

Myth: You need a perfect credit score

Your credit score doesn’t have to be flawless for you to be able to find a mortgage that fits your budget. It surprises many when they talk to a lender and realize that they can still qualify, even with a lower credit score. To offset potential negative factors on your credit history, you may need to have a larger down payment or meet other qualifications, but you don’t need to have a “perfect credit score” to qualify.

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Title Insurance and Liens

Home buyers

When putting in an offer on a home for sale and then applying for a loan, the best thing to do is to let a title company do a property title search to make sure there aren’t any bad liens on or against the property.

A lien is a notice attached to a property that lets people know that a creditor claims money is owed.  A lien is typically a public record. It is generally filed with a county records office or with a state agency, such as the secretary of state. Liens on real estate are a common way for creditors to collect what they are owed. More importantly, a lien means that the home could be foreclosed on and taken by the lien holder.   Again, a title search can say whether or not there is a lien levied against the property.

Examples of bad liens on a property:

  • Mortgage – the current homeowner’s lender can foreclose on the property if payments are not made every month.
  • Property Tax – placed on a home loan when property taxes are not paid and take priority over a mortgage lien.
  • Judgment – a judge has placed a lien on the property after a creditor has successfully sued the current homeowner.
  • Child Support – if child support has not been paid by the current owner the lien is placed.
  • IRS -secures the government’s interest in the property when the tax debt is not paid.

A lien on a home is a legal claim against the property. It gives creditors a stake in the home and a way to collect debts owed to them.  When getting a mortgage on a property, the lender will require a  purchase of a lender’s title insurance policy, which protects their interests in the property should there ever be a dispute in the title.   A policy of title insurance insures against defects in or liens or encumbrances on a party’s title to the property.

As a title company, much of our work can be done behind the scenes. The buyer may not even be aware that there may have been any title defects existing at all. They were simply taken care of before the closing.

 

 

 

 

 

 

 

 

 

 

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