Tag: title insurance

The most basic part of buying a new home is dealing with potential problems that may have been created by its previous owners. Short sales, foreclosures, bankruptcies, and financial situations have added another element to the entire closing process that makes title insurance essential.  The title to a house is the document that proves that a person owns it.  Without that proof, the house can’t be sold or bought.

Title First Agency experts oversee and perform thousands of closings each year nationwide and ensure that all of the details of the title transfer and closing are in proper order. Unfortunately, at this time there are plenty of situations that could cause problems with a title and complicate the process of buying the affected houses.  No matter why the house is being sold, its title problems must be cleaned up so they are not inherited by the buyer.

Short Sale: A short sale is when the lender agrees to let you sell your home for less than the outstanding mortgage debt. The proceeds from the sale pay off a portion of the mortgage balance and the lender releases the lien on the property. A title from a short sale is not always free and clear. A good Realtor will make sure to get a preliminary title search performed to determine the extent of outstanding legal obligations. If a home is bought without a clear title, the buyer could be responsible for the mechanic’s lien, which is a legal claim placed on a home to settle unpaid or partially paid contractor work,  any unsettled contractor liens, property-tax liens, IRS liens, homeowners’ association special assessment liens or even a second mortgage loan.

Foreclosure: Homeowners who can’t afford their home may decide to relinquish ownership and give the house to the bank that holds the mortgage. Mortgage foreclosures can cause a lot of issues with the chain of title. Sometimes, even though the owner loses their home, they may not actually lose the title to the property.  The property may have plenty of repair problems since financially distressed owners often let their properties fall into disrepair. From leaky basements, and unpaid taxes,  to bills from homeowners’ associations to quarreling lenders – it can take some time to sort out who is owed what, how they will be paid, and when the title will finally be cleared. All buyers of foreclosed property need to protect themselves by making sure the title search shows that any previous mortgage was satisfied, canceled, or otherwise released to avoid any future title problem.

The Bottom Line: There are dozens of potential barricades to clear the title.  Buying or selling a home has become a complex transaction and you need a trusted title search company to guide you through the process. 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.

Great Realtors should be held to a higher standard with their daily responsibilities and their fiduciary duty to their clients. Buying and selling a home can be a long and complicated process and it’s important to find a good and loyal realtor. Unfortunately, there are plenty of “bad Realtors​”. What are a couple of signs that you have hired one? 

How Are Their Communication Skills?

Does your real estate agent return your calls, text messages, or e-mails in a timely manner? Time is of the essence in real estate, so if it takes your agent hours or days to get back to you, odds are you might miss that new listing, an important deadline when you’re under contract, or a potential buyer if you are selling your home. Things are moving fast in the real estate world and your realtor must be attentive. Any delayed response can mean the difference between closing or losing a deal on your dream house. 

While it’s true, your realtor can’t be on call 24 hours a day, 7 days a week, you should expect to hear back within an hour or so. Whether it’s by text, call, or email, they need to let you know they received your message and are working on the answer you want. 

Is Real Estate Their Side Hustle?

It’s probably not a good idea to hire a realtor that also has a separate full-time job. There is a lot that goes into finding the buyers a perfect house or getting a seller’s house sold. There simply isn’t enough time to provide the full service that a client deserves if the realtor is unavailable during prime-time hours. It’s safe to believe that if the agent is doing this on the side, it’s not as important to them as it would be to someone who counts on the commission to feed their family.

Good Marketing Ideas?

You want a realtor with a marketing plan to sell your house. One that understands the importance of a web presence, one that will give your home the maximum exposure it needs to sell, and will have an appealing social media presence on all the important platforms. There should be high-definition, professional photos, and videos in the marketing plan. A solid staging strategy should be understood to make the greatest impact in photos as well as when the home is shown in person. In today’s market, it’s critical to have a realtor on your team willing to go the extra mile to sell your home.

Do You Feel Pressured?

Realtors can be the best person on your team, offering you support and keeping you in the know but they can also be pushy and try to pressure you to buy or sell. Your realtor is representing you and needs to be knowledgeable and ready to deal with negotiations. Don’t let him show you homes outside your budget and make sure to get any facts used in negotiating. Never be pressured into making an offer or accepting an offer before you are comfortable doing so. It’s your money.

The Bottom Line: Hiring the wrong realtor can make buying and selling a home more complicated and stressful than it must be. Successful agents are those who are passionate and enjoy what they do for a living. They have a deep passion for serving and helping people by showing them properties within their budget. When it comes to unearthing an unacceptable realtor, there are many ways to dig around before hiring them. Do your research!

Check their online presence (website, social media platforms) and ask for recommendations. Who you choose to work with is essential to the success of your house hunting & selling, so having the right realtor by your side can make a huge difference.

While searching for a home, you might see a home that is listed “as-is” that happens to be in the exact location in which you are looking but with a lower price tag. It can be tempting, should you consider it?

Often sellers will list their home for sale as-is when they don’t want to do any repairs before closing. This means there are no guarantees from the seller that everything’s in working condition. Purchasing a home “as-is” makes you vulnerable and could find major problems down the road that you will be responsible for the repairs.

However, “as-is” does not always mean there are issues broken beyond repair. Often there are simply minor and even no issues. It means you are buying the home in whatever condition it is currently in. You can have an inspection done but the sellers don’t have to repair an issue. Having a professional inspect the home before the purchase is important. While you would have to pay for the inspection yourself, it is a small investment to make that can help you avoid thousands of dollars in repairs down the road.

A home that is being sold “as is” is most likely priced lower than its neighbors does not mean you would be getting the home for a bargain. If there are repairs to be made, there will be a cost. Many buyers like these types of homes because there is a good chance there are just relatively minor repairs to be made – such as a new roof – and the home is worth more than they paid for it. Of course, if the inspection comes back and there is something huge, like a foundation issue, the deal might be better to avoid.

Getting a loan for a home sold “as-is” is much more difficult and complicated than getting a loan for a home that has gone through the traditional processes. Banks use homes as collateral and any home in poor condition can be grounds for a loan being rejected. Buyers would have to come up with the money on their own. If you are a first-time home buyer, purchasing a home “as-is” might not be the best direction.

Hiring the best Realtor to help you navigate the process of buying this type of home will be your best decision. It helps to have someone on your side that can provide good advice and help to know when to back out of a deal if they are sure you will lose a lot of money in the long run. Another bonus of having a Realtor is that they can help with the process of securing a loan as well as figuring out an estimate of the budget you will need for any repairs.

The Bottom Line: There are plenty of homes on the market listed “as-is” that discourage many buyers. Of course, you should be cautious, but “as-is” does not always mean that the house is a money pit. Sometimes the seller can’t vouch for any repair work that has been done – thus an inspection can help and a decision can be made accordingly. Or, the home could have been inherited and the seller is not aware of the issues and does not want the responsibility of fixing any problems. Whatever the reason, it’s in the buyer’s best interest to get all the information about the house before an offer is made.

Most buyers acknowledge that when they are buying a home title insurance is a vital part of the transaction. Title insurance protects the buyer from any unanticipated property issues. Are there risks if title insurance is not bought? Absolutely.

Buying a home is one of the largest investments anyone will probably ever make. You are prepared, you have stayed within your budget, the home has been inspected and the home insurance is locked in. What’s the worst that could happen without title insurance?

• Unknown Liens on the Title: Occasionally businesses will file a lien against a home, which means they are legally entitled to any proceeds made in the sale of the house to settle a debt the seller owed them. This lien is attached to the home, not the seller, so it will end up being the buyer’s issue. Examples: contractor’s fees, taxes, and child support. A title company will do a search on the home to check for any of these claims.
• Unrevealed Heirs: You can lose your home, quite literally. Upon the death of someone, the ownership of their home can end up in the hands of the heirs either by direction of a will or in the absence of a will, to the closest living relative in accordance with the county/state law. However, there might be heirs that are missing or unknown at the time of death that could appear years later and claim part ownership and will ask for financial compensation for their portion of the property. Or, they can claim that the home is theirs. With title insurance, the new owners will be given money for their legal bills if the issue ends up in court, plus insurance will pay any compensation they might be required to give the missing heir.
• Encroachment Issues: Encroachment occurs when someone, such as a neighbor or a construction company, takes over part of your property without permission or proper legal notification. This happens due to an inaccurate survey or otherwise. Title insurance covers these unknown risks that are not agreed to in the sale, but if discovered at a later date will interfere with the title.
• Identity Theft and Fraud: Title insurance provides a clear chain of ownership for the home. The real estate industry experiences millions of dollars worth of fraud every year. Documents such as deeds, transfers, and even wills are forged. This will all be covered by a title policy.

The Bottom Line: Essentially, there are no perfect titles. Government restrictions, utility easements, claims of adverse possession, and tax liens are examples of limitations or defects that can impact a title. Title searches will uncover a lot of these limitations or defects. However, there are some that may not be discovered in even the most diligent title search. Title insurance protects you from these risks.

Why would anyone do a “rent to own” agreement? This process can be a way for people with limited savings or with questionable credit scores to buy a home. This type of agreement allows for the opportunity to save for a down payment. If there are credit challenges, this process can buy some time in the home before having to qualify for a mortgage.

In the contract, a portion of the rental payments will go toward the home purchase. The contract will stipulate what the price of the home will be when the lease ends. At the end of the lease, the renter acquires a mortgage for the property and finalizes the sale.

State laws vary on rent-to-own contracts, but typically, the deals can be set up any way the buyer/tenant and seller/landlord prefer. Both parties must agree on the purchase price, which can be tricky when the sale is happening several years in the future. In a rising market, for example, the seller might want the buyer to pay more than the current value of the property.

There are two types of agreements:

• A rent-to-own contract also called a lease purchase, refers to the contract where the buyer is legally obligated to purchase the property at the end of the lease.
• A lease with the option to purchase also called a lease option, gives the buyer the right to buy the property at the end of their lease term. In other words, the buyer is not contractually obligated to purchase the home.

The terms rent-to-own and option to purchase are sometimes used interchangeably so both the seller and the buyer should be clear about the nature of the contract before signing it. In particular, the buyer should be aware of the terms and conditions so they do not mistakenly agree to buy the home when the lease ends.

Until the tenant exercises the option and purchases the rental property, the premises are owned by the landlord.  The title to the house remains with the landlord until the tenant exercises the option and purchases the property.

It’s often advised to consult with a real estate attorney to clearly define the details such as when rent is due; how much of the rent will go toward the purchase; who takes care of any repairs and the general upkeep of the home during the lease period and so forth. Once the best terms have been reached for both parties an inspection should be conducted with an arrangement of payment by the landlord. An inspection will single out any major issues that could end up being a big expense going forward as well as a way to protect the person leasing from any claims of damage if the intention is not to buy at the end of the contract.

The Bottom Line: Renting to own may be a great option for people that want to own but have a poor credit score or don’t have the money for a down payment. Additionally, this might be the best option for a seller in a market that isn’t doing very well. There are plenty of pros and cons that come with this process, so it’s in the best interest of everyone to consult with a real estate attorney as well as a realtor to help make this decision.

Selling a home is often a long and complicated process that requires skills, strategies, and the best realtor on your team to succeed. Some homes seem to effortlessly hit the market and sell quickly. What’s the secret behind these sales? Key strategies that the highest performing realtors will tell you:

PRICE RIGHT: Get the perfect most competitive price point and your home won’t be sitting on the market long. Your realtor should be proficient in determining the price by using comparables in your local area. Data shows that pricing a home slightly below market value and on par with the lesser competition is the best way to get the most money. Aggressive pricing like this can set up the conditions for a bidding war as people tend to be motivated by the fear of missing out on a great deal.

ONLINE MARKETING: Numerous buyers go to realtors after finding their dream house online. An outstanding web presence is proving to be one of the most effective ways to get buyers into your home. It’s important that you have a realtor on your team that understands how to utilize all the resources available online. The content they create to showcase your home must be consistent and of high quality. Photos should be professional and captured in the best light and staged appropriately. Adding descriptions to pictures is another way to grab the buyer’s eye. Everyone loves a good story.

KILLER FIRST IMPRESSION: After a buyer looks through your online presence, they may do a drive-by and what they see will either get them in the front door or have them drive to the next option. Powerwash off the mud, dust, water stains, and accumulated dirt. Freshen up the landscaping with mulch and annuals, trim overgrown shrubs, and clear away any fallen debris. Don’t forget to wash all your windows and if needed – refresh and repaint your front door. Some of the best realtors will have a crew at their fingertips ready to help make your home look its very best. After all, the realtor wants you to sell fast, too. He should have all the resources to find the best vendors in your area that he has worked with before.

STAGE: The atmosphere inside your home must be appealing and void of any personal collections, keepsakes, photographs, and such. The buyer needs to imagine themselves living there. If you can’t hire a professional stager, your realtor should be able to guide you in maximizing the full potential of your home by rearranging furniture, removing pieces to make rooms look larger, and making the very best welcoming impression.

The Bottom Line: The condition of your home is key to how quickly you will sell it. A house that is well-maintained coupled with the above tips will sell faster than a house that hasn’t been taken care of. If the home is in disrepair but is well staged, makes a good first impression, is priced right, and is marketed well will fall apart during inspections. It’s important to know what upgrades and renovations you need to do before listing your home. Work with a professional, experienced realtor who knows your market and can provide expert advice to streamline the selling process and increase all chances of a quick sale.