title insurance Archives - Page 14 of 29

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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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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Most House Fires Are Preventable

There have been many home fires on the news lately where entire families are hurt or killed. The tragedy is most fires are preventable. Actually, 95% of home fires are preventable and almost always caused by user error.

One of the first steps to fire prevention is ensuring that you have the correct number of smoke alarms in your home. You should have a smoke alarm on every level of your home and in every living space, basement included. Your smoke alarms should then be checked monthly and batteries replaced two times a year. Additionally, fire extinguishers should be located on every floor of the home, in a place that is readily accessible in the event of a fire.

A home fire escape plan is essential because when a fire breaks out, every second counts. A fire can turn life-threatening in 30 seconds. And the majority of fires break out late at night or early in the morning when everyone is asleep, so your family needs to know what to do before an emergency happens. Create multiple escape plans and practice them. Your plans should include escape routes from different areas of the house, tools for exiting the building (escape ladders, items to open, break out windows), and a designated meeting place. It’s very important to practice fire safety with your kids, so be sure to familiarize your children with the sounds of the alarms.

Faulty electrical outlets and outdated appliances cause most electrical fires. If your electrical outlets are old, have them replaced by a master electrician. Tips to help identify issues:

Warmth or Heat. Use your hands to feel the outlet. If you detect any warmth or notice signs of scorching or melting on the plastic, replace it immediately.
Smoke. Smoke from any electrical outlet is an indicator it’s a significant fire danger.
Loose Connections. If any outlets are loose in the wall or they no longer hold a plug tightly (the plug falls out when plugged in), replace the outlet.
Sounds. If you hear buzzing or popping sounds coming from an electrical outlet, turn off the power to that part of your home and immediately call a licensed electrician.
Frayed Wires. Take off your electrical outlets’ plastic covers and examine the wiring. Wires can crack or fray from age, heat, or bending. Nails or screws can also pinch them. If you see any damage to the outlet’s wires, call an electrician.

Gas appliances should be maintained. Check your water heater, gas stove, furnace and dryer once a year to make sure all the appliances’ connections to gas lines are in working order, and that the gas lines themselves are in good condition. Many homes use natural gas for cooking, heating water, and powering the furnace. A leak in the natural gas lines or fittings could result in an explosion. Natural gas has no odor of its own, so they add an odorant that smells of rotten eggs for safety.

If you smell natural gas, get your family out of your home immediately and call 911. Never call for help while still inside the home. The sparks generated from the phone could cause an explosion.

2,900 home clothes dryer fires are reported each year and cause an estimated 5 deaths, 100 injuries, and $35 million in property loss. Dryer lint that accumulates in your dryer’s removable filter is flammable. If the lint isn’t removed on a regular basis, it can cause a fire. Also, check for and remove lint buildup around the dryer’s exhaust hose at least once a year.

Cooking fires are a huge cause of home fires as well as home fire injuries. The majority of cooking equipment fires start with the ignition of common household items (i.e., wall coverings, paper or plastic bags, curtains, etc.).

Stay in the kitchen while you’re frying, grilling, boiling, or broiling food. If you have to leave the room—even for just a moment—turn off the stove.
Keep anything that can catch fire, such as food packaging, oven mitts and towels, away from your stovetop.
Make sure you have the correct type of extinguisher and know how to properly use it.
Crumbs in a toaster, built-up grease on the stovetop, and excess dust behind your appliances are fire hazards.
Let grease cool before disposing of it in the garbage. Never pour grease or oil down the drain

Each year, candle fires account for hundreds of thousands of dollars in property damage and hundreds of unnecessary injuries and deaths.

Never leave candles unattended.
Don’t use candles in the bedroom, or anywhere else where you may fall asleep.
Don’t use candles when there are small children or pets around.
Keep candle wicks trimmed to about a quarter of an inch.
Use sturdy candle holders that won’t tip over, and don’t let the candle burn right to the end.
Be very careful if carrying a burning candle. Hold it away from your clothes or anything else flammable.
Make sure the candle is not too close to a window, where curtains can blow near the flame.
Use battery operated tea lights. They look just as good, but aren’t dangerous.

Fires are fast! Protect your house and your family from a fire at all costs. Implementing these fire safety practices around the house is just a start, but protecting your home doesn’t stop here. Learn how to avoid fires and conduct preventive maintenance the proper way. The first and most important thing you can do is make sure everyone in the household is educated on fire safety measures, including children.

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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.

LEGAL EXPERTISE:

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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Home Buyer Mistakes

On the hunt for your first home? Are you worried about choosing the wrong house or making a mistake and want to know what you should take into consideration before you buy a house? Buying your first home can be just as stressful as it is fun. It’s really hard to know all the right questions to ask.

Some mistakes made include not doing enough research before looking at homes, not knowing what type of financing you will qualify for, failing to set a budget, and making an offer too quickly without getting all of the questions you need to be answered from the seller. By learning about these pitfalls now, you will significantly increase your chances of making a wise property investment. Here are a few common first time home buyer mistakes:

Be aware of the cash you have to spend

To close on a house, you will need cash on hand for your deposit and closing costs, which can include insurance, taxes, and the service providers’ fees. Since these costs aren’t included in the price of a listed home, they can sometimes come as a surprise to first-time home buyers. Knowing how much cash you have for your deposit and closing costs can help you decide which loan option is best for you and even what price point you can afford.

A conventional loan isn’t always the best

There are tons of loan options available and a conventional loan might not be the best for you right now. For example, if you don’t have a lot of cash to put down but have a good credit score, an FHA loan might be the better option because you’re only required to put 3.5% of the purchase price down as a deposit. If you’re a veteran, look into a VA loan, which helps you secure a home with no down payment or mortgage insurance requirements. Depending on which state you live in, there may even be first-time homebuyer grants available to you; these can help with closing costs, deposits, or home upgrades. Educating yourself on the options available to you can be tedious but will help you make the best financial decision.

Know what you can afford per month

Sometimes the easiest place to start with the home-buying process is to know how much money you can afford to spend on a mortgage per month. Taking this approach allows you to set a realistic budget and stops you from going house poor which is spending all of your available money on homeownership. To do this effectively, write down your monthly income and start subtracting all of your monthly expenses from that number. Then, factor in what you strive to save per month, other expenses like going out to eat, getting your nails done, or going to the barber. Finally, you will have a good idea of what amount you can afford to pay for your home.No matter what amount you’re pre-approved for, give the amount you would like to spend on a mortgage per month to your lender so you don’t spend all of your money on your home.

No big purchases during the process

Once you’re approved to buy a home, it’s important to not make big purchases until you close, specifically on credit cards or with another type of financing. You may be eager to finance a new couch or bed for the house but you have to wait until after closing. These large fluctuations in your credit can affect the purchasing process by changing your debt-to-income ratio and your credit score. This could force you to start over on your loan approval process and could change the amount you were once approved for.

Don’t get emotionally attached

This is a tip that’s easier said than done, every person that has looked seriously into buying a house knows the disappointment that can come if you lose out on it. For starters, only look at houses in person that you know you can afford and would want to buy. It’s not worth your time and energy to look at a house beyond your budget or so below it that you hate everything about it. When you do see a house you love, it’s easy to get caught up in imagining your life in this new home and feeling emotionally attached to it. Try to remember that every house has pros and cons, and your future home is out there now or ready to be listed any day now!

Know that there will be future expenses

Owning a home means that the expenses will likely never stop. There will constantly be upgrades you want to do, decor to buy, and bills you need to pay. Always remember that just because you’ve closed on a home, doesn’t mean you’re done spending the bulk of your money. If possible, have extra money saved to help you get settled into your new home. Whether you have a big home repair to do or just want to have your home decorated exactly how you’ve dreamt of, it’s important to save for these future expenses as well.

No matter how much you prepare, there will always be bumps in the road when it comes to buying a house. However, it’s an exciting time so try to enjoy the process and utilize the people around you that can help. Experienced professionals like realtors, lenders, and lawyers help first-time homebuyers every single day and should be used to your advantage so you can avoid common pitfalls on the path to buying your first home!

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Stage to Sell Your Home Fast

Prospective home buyers never like walking into an empty house where they can’t imagine themselves living. There should always be furniture and accessories to make the house, feel like a home. Hiring a professional Stager can help lessen the time a home is on the market as well as boost the offered price. A good stager will create an environment that will help the buyer feel the “at home” feeling and never even consciously know exactly why! Your Realtor should have access to a good photographer once your home is staged. During this pandemic, many people are shopping online for everything, including homes. Show off your newly staged home by having many pictures.

It’s always hard on the sellers. They have loved their home and don’t see what a “stranger” can see in their home. Buyers like everything “spelled out” for them and may not be able to see that the dining room is really a family room. Or windows with different treatments may make the room look brighter and bigger. Rearranging furniture to balance and maximize a sense of space in rooms is key to the staging process. Too big a cozy couch that the seller loves could possibly dwarf the room it’s in. Sellers don’t often see that boxing up knick-knacks and family pictures can actually add more value to a room.

Many sellers are told to paint walls in classic ivory and beige color scheme. That’s fine, but putting a twist on that to stand out from other homes on the market is a great idea. This way, at the end of the day, after a buyer has looked at many homes, they can easily call it to mind. The overall goal is to make each room feel fresh and inviting and easy for buyers to envision themselves and their belongings in. Grey, a very light blue, pale serene turquoise, charcoal, yellow – all accented with white are always pleasing. A skilled Stager will put a seller on the right path.

The Bottom Line: The seller’s goal is to have the house that potential buyers remember. The home that makes they can feel and see themselves living in. Open all the doors. Get rid of old window treatments. Rip up carpeting. Take down and box family photos. Fake plants, fake food, and blow-up mattresses are a turn-off. Buyers open closets and cabinets! Remember to make sure they are organized and clean.

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Homebuying 2022

The pandemic has changed the world as we know it: our society, the economy, and beyond. Homebuyers have changed what they want over the past year as well, particularly those who work from home or have children who had to go to school online. There are ways to appeal to homebuyers in 2022. Here are four of the features most desired.

Home Offices: A lesson from the pandemic was the importance of having a place for adults to conduct office work and the kids to do schoolwork. There have been many requests from homebuyers for a home office, either an existing one or a room to create that perfect space. If you are a seller or plan to sell in 2022, repurpose an existing room as an office and make sure it’s in your listing. There have been buyers unable to find homes with room for office space so they narrow down their search to a home with more bedrooms than they need to for the opportunity to turn it into an office.

Kitchens: Another lesson from the pandemic – multifunctional spaces are important. With people spending so much time at home now, the kitchen can be a room for both working at the table or kitchen island while also cooking and eating a meal. The kitchen often sells the home. Features such as smart appliances and quartz in an open floor plan are the 2022 expectations. Add in a pizza over, wine fridge, pot filler, touchless faucet, butcher block, steam oven, and gas cooktop, and the value of your home increases dramatically. Even adding only one or two of these features can make your home the top of the list.

Outside Living Spaces: The look and feel of an entire home can be changed with outdoor renovations. The more time people spend at home, the more they want an oasis outside to spend time barbequing or relaxing. The rewards will be high by updating or adding a patio/deck, getting a smart sprinkler system put in, incorporating drought-resistant landscaping, room for a dog to run and kids to play ball, and adding a privacy fence. A mention of an outdoor kitchen or outdoor fireplace could attract buyers in 2022.

Energy Efficiency: Sellers are advised to include as many energy-efficient upgrades in their homes as possible if they want to attract the interest of first-time buyers. Today’s buyers will be more interested in the amount of money they will save on energy bills over the course of them living in the home. First-time homebuyers are interested in anything that will save them money in the long run, not excluding low-flush toilets, attic insulation, double-paned windows, and anything else that will reduce their carbon footprint and energy consumption.

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