real estate Archives - Page 29 of 29

Do a Home Inspection Before Listing to Sell

Be ready for the buyer’s home inspection. Find out the exact condition of your home before you put it on the market to sell. The home inspection is often where the deal falls apart because buyers will make their offer contingent on approval of the results. Hidden defects or problems can turn the negotiating into the buyer’s favor. Even if you offer to fix a problem that arises on the buyer’s inspection report, skittish buyers may be hesitant to close the deal. Knowing before you list your home gives you the opportunity to fix the problem or price accordingly.

Buyers use items that need to be repaired on a home inspection to ask for a reduced price. The reductions are commonly based on estimates that are often inflated. When you fix the repairs, you can call the contractor with the best price, saving you money in the long run.
Sellers can justify listing price through a pre-inspection. You can feel confident in the price you are asking with the results available to buyers. In a hot market, some buyers will make an offer on a home without the home inspection contingency.
According to Forbes, “…. pre-inspection is a goodwill gesture. It demonstrates a willingness to go beyond what’s expected, and that sets you apart from other sellers. You’re sending a signal that your house is an “open book,” and that you’re being upfront about the property. All of this can give potential buyers peace of mind and confidence.”

Once you have the pre-inspection report in your hand you can’t ignore any issues that came up. You’ll be required to disclose that information as a known defect or fix it before anyone makes an offer. There may be some issues that you aren’t able to take on and it will be reflected in the price. You and your Realtor will be able to establish the right sale price including what you can or can not fix before putting your house on the market.

The bottom line: As a seller, getting a home inspection before listing your home gives you more time to make the repairs that you can and to shop around and control the costs for the work. Be sure to hire an experienced Realtor that will know how to interpret inspection reports, and to let you know which issues are vital to address before listing your home.

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Quitclaim Deeds

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When a mortgage is in danger of becoming an unsustainable burden a homeowner’s finances, they may sign a quitclaim deed that will transfer some ownership interest in their home to another party. Quitclaim deeds are most often used when a home is transferred between family members or to cure a defect on the title, such as a name that has been misspelled, or when an owner gets married and wants to add a spouse’s name to the title, or when the owners divorce and one spouse’s name is removed from the title. Sometimes, they may be used to transfer ownership of a home from an individual to a sole proprietorship or corporation.

Common facts needed to understand a quitclaim deed:

The quitclaim deed contains no warranties of title or ownership. If the grantor owns nothing, the grantee receives nothing.
When purchasing a home, the buyer should receive a general warranty deed, not a quitclaim deed. Title insurance is favorable and often required by mortgage lenders.
A real estate purchaser under a quitclaim deed is in many legal situations considered to be on notice that the title has defects. It is recommended that an experienced professional undertake a title examination based upon a title search and render a title opinion prior to completing the purchase.
If one has borrowed money under a real estate mortgage, a quitclaim or other deed to a third party does not release one’s liability for the mortgage debt. The lender may release a debt, but a borrower can’t avoid payment by unilaterally shifting that debt to a third person.
Subsequent ownership by the grantor after the delivery of a quitclaim deed is not impacted or transferred by the quitclaim deed.
Recording any deed in the public records at a local courthouse or recorder’s office, as determined by state law, only gives public notice of one’s claim of ownership. A deed does not guarantee actual title or ownership.
If two or more individuals are co-owners of real estate, a quitclaim deed by one owner only transfers at best that one owner’s ownership rights. If the quitclaim deed requires the signature of all co-owners, the deed is invalid unless all co-owners have signed it and the deed is then delivered to the grantee. However, if the quitclaim deed allows one co-owner to sign it and claims to transfers the entire property to a grantee who takes physical possession of the property, then the deed may create an adverse possession ownership claim to the entire property.
If one individual owns real estate and desires to add a co-owner such as a spouse, a quitclaim deed might be used. It’s in the best interest to contact an attorney before doing so, in order to curtail any taxation or inheritance issues.
Call the best Title Insurance Agency because a title examination is necessary.
There can’t be a reversal in a quitclaim unless the original owner proves that the quitclaim deed was signed under duress in a court.

As efficient as quitclaim deeds are in transferring real estate ownership from one person to another, they suffer from certain shortcomings that make them inappropriate for all but their intended purposes. Whereas they transfer title to a property, nothing more and nothing less, purchasers demand transfer assurances that quitclaim deeds can’t provide. They want warranties that guarantee “clear title” or lack of ownership encumbrances in the property. In such transactions, sellers transfer their real properties with general or special warranty deeds that offer those assurances to their buyers.

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Millennials and Real Estate

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The millennial generation has emerged as a dominant force in the housing market. They are looking for homes that are turnkey with very little work needed. Forbes listed this group to be the top 10 real estate trends to watch out for in 2018. What are they looking for?

Green Home – Millennials want to do their part to conserve natural resources. Recent studies have found that they are the most willing to pay extra for an energy efficient home. These homes will be designed to conserve energy, water, and gas and have the smallest impact on the environment. Features might include double hung windows, efficient air and heating systems, low-flow toilets, even bamboo flooring.

Tiny Home – Millennials prefer experiences over “things” and don’t want a lot of maintenance. They are learning to live within their means and to pay off school loans by adapting to a pared-down lifestyle. Living a minimalistic lifestyle will reduce their carbon footprint, and lessen the amount of useless junk that so many other generations hold on to.

Three Bedroom Home – This and two bathrooms is the most preferred, and 1,000 square feet is the minimum. They want a home in the suburbs that will accommodate a family if they are married with thoughts of a future within a safe neighborhood and good schools. They want privacy, fenced smaller low maintenance yards and trees.

Investment Home – Millennials are looking for homes they can buy and rent out to generate income. Flipping homes after renovating is another motivation. These homes may need repair but are in the best neighborhoods. They believe that investing in real estate is less risk, has tax benefits and has the potential for higher returns than the stock market.

Where are they buying homes? Past generations were taught to go where the jobs were regardless of the quality of life to be found in any given city. Millennials want to live in places they love, expecting employers will find them there.

How are they finding their homes? 91 percent use online resources to start the housing search, and 70 percent will then work with a traditional real estate agent. Quality photos will be key to marketing a home.

Millennials are just starting to shape the housing market. Their incomes will increase as they age and more change will come. The real estate industry needs to understand them, follow the trends, be innovative and proactive to convince them to buy a home.

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Rent or Buy a Home in Ohio

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Are you tired of watching your money fly out of your wallet and into your landlord’s to pay the rent and get nothing in return? If you are living in Ohio, it is better to buy than to rent. It has been widely believed that if you don’t plan to stay for more than 7 years in an area, it’s best to rent. But that is simply not the case in Ohio as buying is the cheaper option no matter the length of time spent living in most cities.

Renting a home has some good advantages. You won’t have any maintenance costs or repair bills, it will all be the landlord’s responsibility. Think leaking roof, broken hot water heater, air conditioning, big-ticket repairs. Renting can often allow you to live in a premium area of a city with the best school system where you would otherwise be unable to afford to buy a home. Renting enables you to be able to move without any strings attached. If your job is more mobile, most landlords will let you out of a lease with a 30-day notice. You may want more flexibility. If you are locked into a mortgage it will be harder for you to move in a few months time.

When you rent there won’t be any return on your money for the property. The landlord will be the one who benefits and earns the income. So, maybe it’s time for your money to build equity and work for you by owning a home. It is an investment that has great benefits that can add up over time and you end up with a valuable asset – a home that is paid for. As you pay your mortgage each month, the value of your home continues to rise. Plus, there are tax benefits. The federal government encourages homeownership by offering tax incentives for homeowners.

“Owning a home is more affordable than renting in Ohio, which has the lowest monthly mortgage cost on our list. The monthly rent is $294 more expensive than the mortgage on a home with a median list price of $154,900 — which is the second-lowest list price in our study.” Go Banking Rates.

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Title Insurance and Liens

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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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Cyber Threats in Real Estate

Buying, selling & refinancing a home requires submission of personal information to the lender which includes social security numbers, bank account numbers and credit/loan account numbers. Sadly, there are hackers out there looking for this personal information to steal.

Never trust wiring instructions sent by email, especially if there is a claim made that submitting a payment has changed and a new account is provided. The hackers are sending out sophisticated and convincing emails that look like they are coming from your Realtor. They often contain signatures, fonts, and logos that are an exact match to the original. Always confirm in person or by telephone to a verified and trusted phone number. Never wire money without double checking that the wiring instructions are correct.

How to avoid getting into this situation:

Never send wire transfer information, or any type of sensitive information, via email. This includes all types of financial information, not just wire instructions.
Never conduct business over unsecured WiFi
Make sure you learn your Realtor/Lenders email and communication practices. For instance, do they expect to be sending you sensitive information through email?
If wiring funds, first contact the recipient using a verified phone number to confirm that the wiring information is accurate. The phone number should be obtained from a reliable source.
If email is the only method available for sending information about a transaction, make sure it is encrypted.
Delete old emails regularly, as they may reveal information that hackers can use.
Change usernames and passwords on a regular basis, and make sure that they’re difficult to guess.
Make sure anti-virus technology is up to date, and that firewalls are installed and working.
Never open suspicious emails. If the email has already been opened, never click on any links in the email, open any attachments or reply to the email.

Cyber threats in real estate are too incredibly common. We all need to be vigilant and have security practices in place. One mistake acted on by a fraudulent request, could result in the loss of hundreds of thousands of dollars or personal data loss.

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The Importance of Title Insurance

No one gives much thought to the importance of title insurance. Something that can protect owners of real property events and matters that can be brought up form the past. But what happens when an old title issue surfaces and a claim is made on a policy? Many homeowners decline title insurance but once they know how it is created to protect them from unknown claims against their property that can pop up years down the road.

Title insurance is much more than a lender requirement. It’s knowing that what you are buying is free of any third party claims to ownership or use of any part of it. It assures the homeowner that they are clear of anything that would affect the ability to sell or borrow against their new property. After thousands of real estate closings here at Title First, we can give you a rundown of the most common issues we can save you from:

Mistakes on titles, especially lately, that are transferred through a sale of foreclosure without certain rulings met, thus making the transfer of the title invalid.
Mistakes within all the paperwork brought to a closing, somewhere along the line there may be a forged signature or recorded documents signed by people without legal authority.
Mistakes made during the probate process for the previous owner that overlooked someone else’s rightful claim (undisclosed heirs) to the property or someone else’s interest in the property. Misinterpretation of wills and deeds.
Mistakes made in the description of the property.
Mistakes missed where claims, tax information or easements have not been recorded properly in the public record.
Mistakes missed of liens on the property or judgments against the previous owner.
Mistakes in unpaid taxes or mortgages and unpaid debts.

Investors need to be alert when protecting their investments. Title insurance assures the homeowner that the title to the property purchased is free of any defects and is “clear to close”. It is a guarantee that all matters of record that could harm the title of the new property have been disclosed and resolved. Title insurance protects the homeowner against any potential claims should an undisclosed event threaten the ownership of the property. Give us a call today at Title First Agency: 1-866-320-8400

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