Tag: ohio

Cash is King: Exploring the Benefits and Drawbacks of a Cash Offer

Advantages of Paying Cash for a Home

One of the primary advantages of purchasing a home with cash is the expedited closing process. Normally, it takes approximately four weeks to finalize a home sale. However, if you are buying with cash and without a lender, the closing can occur in as little as a week. This swift transaction can benefit both the buyer and the seller by facilitating a prompt and efficient exchange of ownership.

Another advantage of paying cash is the elimination of contingencies. Mortgages can fall through for buyers who are preapproved, but when you pay in cash, you remove that possibility. A cash offer removes the need for a financing contingency, which is usually a requirement in real estate transactions involving bank financing. This can make your offer more appealing to sellers, who may be willing to accept a lower purchase price in exchange for a quick and hassle-free closing.

Additionally, when you buy a house in cash, you own it outright. This means that you don’t have to worry about the bank taking your home if you fall behind on payments, and you have the security of knowing that your home is truly yours.

Disadvantages of Paying Cash for a Home

One downside of paying cash for a home is that you tie up a large portion of your funds in one investment. The money you use to buy your house isn’t easily accessible, so if you need cash for other purposes, you may have to sell your home to access it. This can limit your financial flexibility and prevent you from investing in other potentially lucrative assets.

Another disadvantage is the lack of tax deductions. Buyers who use a mortgage to purchase a home can benefit from tax breaks on mortgage interest payments, which can result in significant savings over time. By paying cash for a home, you miss out on these tax deductions, which can be a significant financial loss in the long run.

The Bottom Line: Paying cash for a home has its pros and cons. The primary advantage of buying a home outright with cash is the ability to expedite the purchasing process, bypassing the need for mortgage approval and potential delays. This can provide buyers with a competitive edge in a fast-paced real estate market. Additionally, purchasing a home with cash can eliminate interest payments and potentially save thousands of dollars in the long run. On the other hand, tying up a large sum of money in a single asset can limit liquidity and diversification opportunities. It also requires careful financial planning to ensure that adequate funds remain available for emergencies or other investments. Ultimately, whether paying cash for a home is the right decision depends on individual financial circumstances and goals.

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Ready for Summer?

Longer days and warming weather make this time of year fun to get outside and tackle some of these projects. Spring home maintenance is essential for homeowners to ensure that their properties are in the best condition. Clean, repair, paint, and replace, and if you are preparing to sell your home, have your agent walk around and give their expert ideas. Here are some good tips to keep your home in tip-top shape.

Roof | Gutters: Winter can be brutal and cause wear and tear on your roof and little problems can turn into big, expensive problems fast. Check for missing or damaged shingles, and check for leaks or water damage. The gutters and downspouts will most likely be filled with debris. Over time, leaves and twigs can accumulate in your gutters, causing them to clog and lead to water damage to your home’s foundation. It’s best to check them and clear them all year. Check the downspouts to be sure they are directing water away from your home’s foundation.

HVAC – Inspect your HVAC system. Replace your air filters and clean your vents to ensure your system runs efficiently. If you notice any strange noises or odors coming from your HVAC system, it’s best to have a professional inspect it.

Window and Doors – Let the sun shine in! Clean your windows! Take your storm windows out and be sure your screens are examined for damage before putting them back in. Look for any gaps or cracks in doors and windows that will eventually lead to energy loss and higher energy bills. Use weather stripping or caulking to seal any gaps or cracks you find and get any damages fixed.

Yard – Now is the time to clean up your landscaping! Rake dead leaves and debris from your lawn, garden, or flowerbeds. Trim overgrown bushes or trees and remove any dead branches. Do research and see what type of new plants or flowers you might add to give your yard a makeover. Fences and gates can be in disrepair from the winter weather. Be sure to do a once-over for any repairs that need to be done.

House Exterior – Inspect your home’s exterior for any damage. Look for cracks or holes in your siding and inspect your chimney for any damage. Zero in on the siding or the paint. If you see peeling, you may want to get that fixed before it gets worse. Can you see any new signs of rotting wood? This goes for any deck or patio as well.

Power Wash – Such a therapeutic exercise to watch dirt and grime float away from your windows, doors, patios, decks, siding, driveway, walkways, and everything in between! Get rid of that winter grunge

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Is Your House Ready To Sell?

Putting your home on the market can involve several stresses and strains. Regardless of the reason behind selling, the goal is to sell it for the most money in the shortest amount of time. With the lease hassles and distractions. There is a lot to think about, prepare for, to organize. You must be objective about all the details in this your financial asset, your home.

Hire the most experienced realtor in your area to help you price your home right. The first thing buyers look for in their initial search for a home is the price. Your home might be perfect but if the price is too high you will miss out on a big group of buyers as it sits on the market longer. The realtor you hire should be well-versed in the ability to use comparative market analysis and determine the very best and the right listing price.

It’s easy to overlook small wear and tear issues in your home especially if you have been living in it for a longer period. It’s essential to remember that when a buyer is looking through your home, they are looking at the details. They will check to make certain the lights all work, and that the windows can open. How are your appliances? Do they all work? Are there any small leaks in a bathroom that you have forgotten about? Details like these can turn a buyer off no matter how small. They might be left wondering if the owner of the home has neglected bigger issues. Consider hiring an inspector for a pre-inspection to head off any potential issues.

Have your realtor walk through your home with you and help you decide what should be removed. A good rule of thumb is to remove about half of your furniture to enable rooms to appear bigger and more appealing. Create a cozy, intimate space in each room by rearranging furniture. Get rid of any clutter by purging and removing knick-knacks, and hiding any political affiliations, degrees, family photos, and other personal items. Paint should be traditional colors in each room. Open the blinds and pull back the curtains – let the light shine through. Staging your home is a good strategic move that can be done by a professional stager or you, as the seller, with your realtor.

The first thing a buyer sees after being enticed by your online presence is the outside of your home as they arrive to see it in person. The aesthetic look of the home’s exterior can be very telling as to what might be found on the inside. Get your yard landscaped if it’s not and keep it well maintained. Pull weeds, pick up sticks, fix burned grass patches, and rake the bushes clean of dead leaves. Walk around your home and notice if any paint is chipping or faded. Are your windows clean? Is your front door freshly painted? Are your gutters clear of debris? Again, having the realtor you hire look over everything with new eyes can be beneficial. Don’t take any criticism personally.

Once you have conquered all of the above and your home is ready to have a sign in the yard, the realtor you hire must be exceptional in the marketing of your home. Your realtor should know how to attract buyers online through professional photo listings and other new and creative ideas. The first place that buyers see a property is online, and if photos don’t look professional, buyers may disregard your property. Additionally, listings with high-quality photos can sell up to 32% faster.

The Bottom Line: Choosing the right realtor is paramount when putting your house on the market. One who is knowledgeable about your local market and with experience selling in your neighborhood. Selling a home is a big life milestone and can be complex with all the many steps involved. The consequences of a mistake can have a big impact. It pays to spend the time and money to make sure you are getting your home on the market and ready for success.

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How Old Is The Roof and Other Questions You Should Ask a Seller

Buying a home is about the largest single investment you’ll ever make, and you should spend a lot of time investigating the perfect house for your family. Once you buy the home, you can’t return it like a pair of shoes! Thus, be sure to get answers to questions that will give you peace of mind in your purchase. Your realtor should have the experience to navigate you through the due diligence.

Why is the house for sale: You may not get the real reason why. There are many reasons why people move, including job relocation, desire to get into a smaller/larger house, life events (marriage, the birth of a child, death of a spouse, or other reason), and retirement. But, if you can get an answer it might help in the negotiation of price. It might come in handy to have a local realtor on your team that knows how to find out this information.

How long has the home been on the market? If the house has been on the market for a long time, it might open up the opportunity to negotiate price and terms. Be aware that the home may have been relisted. Buyers tend to favor the newer listing, so some sellers relist to make the home look fresh on the market. Again, your realtor should know these very important details, and if not she will know how to find them.

How old is the roof?  A roof generally lasts between 15 and 50 years, depending on its materials. If you know how old the roof is, and what type is, you will better be able to determine how long it will last and calculate that into your offer price. Have your realtor request documentation regarding when the roof was last repaired or replaced and exactly what was done. If you buy a home with a roof that has been damaged or if an issue was neglected or at the end of its lifespan you could end up with a pretty expensive bill soon after you buy the house.

What was the previous selling price? If you know how much the seller paid for the home you will be able to see the value of the local market that the home is in – has it gone up or down? If they paid a lower price, they may be willing to negotiate. If they bought it close to what they are asking for, they most likely won’t budge. Furthermore, knowing the sales history can inform you of whether the property was transferred to a spouse or relative, if the home had been foreclosed on, and if the home was part of a short sale. Make the most rational decision by learning all that you can about the home.

Is there radon in the home? Radon is a colorless, odorless, radioactive gas that’s found in about 1 in every 15 homes.  Most Realtors will tell buyers to get a test done. If the home is found to have it, it will be safe to live in once the radon remediation occurs.

How is the school system? This really matters even if you don’t have children. The quality and rating of the school system affect the value of your home. The next buyers may have kids and you want to make a profit when the time comes to sell. Families will zero in on homes in the finest and strongest public school districts. Living among one will give you the advantage.

Has there ever been a pipe burst? A good inspector usually can tell if water damage has occurred, and any damage should be disclosed by the previous owner at the time of sale.  The big problem from water damage is moisture problems we are unable to see, behind drywall and trim which leads to mold. A mold remediation professional can tell you if mold is present and how to remove it.

Any signs of pests? Another disclosure should be made by the owners at the time of the sale. Even if they had a past infestation and dealt with it and can offer proof, such as a receipt for pest control it doesn’t mean the pests are gone for good. Whatever conditions made the home ripe for infestation- a slow leak under the house, rotting wood, or even a total neighborhood situation, get the answers with help from your Realtor.

There are many more investigative questions to ask and hopefully, you have the perfect Realtor that will do a search for all the answers to any questions you may have. Nothing is off limits – this is your investment.

  • Are there sex offenders in the neighborhood?
  • What is the slope of the driveway?
  • How old are the appliances?
  • How many offers have been made?
  • What type of foundation?
  • What is included in the sale?
  • Are there any neighborhood nuisances?
  • Any lead paint?

The Bottom Line: The realtor you choose to work with should provide you with any questions you need answered. There are so many decisions to make and it’s hard to know what you should be looking for. Be confident when you make the offer by knowing what exactly you are getting into.

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Community Matters When Buying a House

When a home-buying budget is tight, there’s always the temptation to buy a fantastic, big house in a less costly area. However, buying a home in an undesirable neighborhood might be a huge mistake, especially when it’s time to resell in the future. Choosing the right neighborhood is one of the most decisions you will make. Of course, there will always be issues you wouldn’t be able to discover until after you’ve moved in. But there are ways to scout out red flags ahead of time.

When you see homes that are rundown throughout the community, it could be a sign that the residents have given up and the neighborhood is in rapid decline. A street that is full of homes with broken/cracked windows, overgrown, unkempt yards, home vacancies, gutters filled with leaves and vines, sagging rooflines, pooling water in yards, homes with obvious chipping paint & broken fences should sound off an alarm. It’s a clue that the neighbors don’t take pride in their homes and with no upkeep, they can end up decreasing the property values for the entire street.

Are there too many houses that are for sale in the neighborhood? When driving through notice if there is an abundance of “for sale” or “for rent” signs. If everyone is trying to sell, it’s probably not a coincidence. There are plenty of reasons this could be going on, but it’s important to have your Realtor dig in and find out the details. Also, check with the local police department and find out about the crime – a real reason people would be making a mass exodus from the neighborhood.

How is the local school system? Are there fewer students enrolling? A sure sign of a healthy community is a blossoming school. Another reason to have a good, knowledgeable Realtor with you – he/she should know all these details or at least where you can find the information about the schools.

Most streets have some cracks and bumps but are you noticing big potholes in the neighborhood? This could mean that this is an area of neglect in the city. Is the local park a mess? If you can see that there is no organization to take care of the streets, the parks, and any public spaces in the neighborhood it is a sure sign that the property values are headed down.

Drive through the neighborhood on a beautiful day. Do you see people out and about? Are kids playing ball in yards? Bike riding? Is anyone sitting on the front porches? A big red flag if you don’t see people. This could signal that residents stay inside and don’t allow their children to play outdoors because they don’t feel safe outside. Again, check with the local police department.

The Bottom Line: Attention to the surroundings of any neighborhood is important. Often, the focus is on the home and how perfect it is for you, but a huge part of the way you live is where you live. Drive around, contact the local law enforcement agency, speak with local real estate agents, and do online research. 

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Closing Expectations

Your offer was accepted, the inspection is over, and anything that needed to be resolved has been. The only thing standing between you and moving into your new home is the closing table.  What should you expect?

PREPARING FOR THE CLOSING DATE:

Depending on how condensed your contract period is, you may receive the final settlement and HUD-1 statements with enough time to review them with your lender and real estate broker.  It isn’t uncommon, with the volume of new mortgages and refinances, to receive these documents just hours before closing.  Either way, you will have time at the closing table to have all your questions answered about the details and account for every penny of the transaction.

Prior to your closing, you will do a final walk-through of your new home with your broker to inspect its condition.  This is your opportunity to ensure all agreed-upon inspection items have been completed, the condition of the home hasn’t changed from when you went under contract, and all contractual items are in the home.  The final walk-through is not an opportunity to re-inspect the home.

WHAT TO BRING TO CLOSING

Make sure to bring a form of government-issued identification for the closing agent to verify you are, in fact, you.

You must bring funds that are immediately available for withdrawal, which includes wire transfers, cashier’s checks, or teller’s checks.  Title companies vary slightly as to what they will accept as good funds, so ask your Realtor before you gather documents. The actual dollar amount you will be required to bring to closing will be derived from the settlement statement prepared by the title company.

AT THE CLOSING TABLE

The closing is usually held at a title company location that is convenient to both parties of the transaction.  Most closings will include the seller and seller’s agent, buyer and buyer’s agent, lender, and the closing agent.  With more complex transactions there may be attorneys present for one or both sides.

There are three parts of the closing, the first two parts pertain to transferring the real estate from the seller to the buyer.  This includes all the documentation and accounting for the transfer.  If you are borrowing money, you will need to complete the third and final part, paying for the home.  This portion will contain the majority of documents and disclosures required by your lender.  Your lender should be present to answer any questions you may have during this section.

THE KEYS!!

Once all the documents have been successfully signed and all money dispersed, you are now the proud new owner of the home!  This will also be a good opportunity to ask the seller any additional questions you may have about your new property.  It is also a good idea to exchange contact information in case questions arise during the move-in process.

THE BOTTOM LINE

Though it may seem like the closing process is a lot of complex work, it’s worth the time and effort to get things right instead of hurrying up and signing a deal you don’t understand. Be wary of any pressure to close the deal fast. Real estate agents and other entities helping you will want their cut, but they won’t be around to care about the problems you could face in the long run from a bad deal.

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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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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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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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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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