Tag: title

Pre-Foreclosure Homes

If you are looking for an affordable home, you may come across “pre-foreclosure” homes and wonder if they are worth looking into. When you browse through real estate listings, you will see that there are plenty of pre-foreclosure listings. But is buying one something you should do?

Pre-foreclosure is the first stage in the foreclosure process. It begins when a Notice of Default (non-judicial states) or Lis Pendens (judicial states) has been filed against the homeowner. Foreclosing on a property can be a lengthy process. Homeowners are first served a notice of default notifying them of the bank’s intentions to begin foreclosure proceedings. They still have the opportunity to make it right by catching up on their payments.

Many times, the home is listed on Zillow (or other real estate sites) and the owner is not even aware of it. There will be a Google street-view image of the home, the address, details of the property, and occasionally inaccurate information. The homeowner is not allowed to opt-out of having their home publicly listed, which can cause some embarrassment for them.

Pre-foreclosures are not a done deal. While they appear to be a fantastic deal on paper, nine times out of ten there really isn’t a deal to be had. In many cases, borrowers fall a month or two on their mortgage payments and then quickly catch up. Under pressure from the government, lenders are more willing to work with delinquent borrowers than they were just a few years ago, which explains why foreclosures are at all-time low in many parts of the country. In general, pre-foreclosures fall into two categories. Homes with 90-day late notices are usually resolved before foreclosure and hardly worth a buyer’s time. Pre-foreclosures with an auction date set are much more likely to sell before the foreclosure becomes official, but even then a sale is not guaranteed.

The pre-foreclosed home is not actively listed for sale. The owner has not taken steps to list the home for sale. The transaction is dependent upon the buyer identifying a homeowner in a mortgage default list and persuading him to sell. Many homeowners will be pursuing options to cure the default and will not negotiate. As such, it is better for most buyers to assume that a pre-foreclosure home is not for sale and seek viable alternatives with help from his real estate agent.

The Bottom Line: Buying a pre-foreclosure home is an opportunity to less than what the market would list. The competition is less than if you would have bought a foreclosed home at auction. Before you look for a pre-foreclosure home, it’s important to research the distressed property laws in your state. There’s a reason that most buyers of pre-foreclosure homes are seasoned investors, not first-time homebuyers. The process is not easy to navigate. It helps to have a lot of cash on hand and plenty of negotiating savvy.

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Get the Edge in a Seller’s Market

A seller’s market is when there are more people buying houses than there are houses for sale.  If you’re looking to buy a home right now, it may be hard to get one at a fair price. In the most sought-after areas, houses are going under contract in a matter of days, even hours. What can you do to be prepared if you must buy a home now?

Hire the best Realtor

Do a search on Realtors. Get the best, with the most experience, you can find. This will give you the advantage you need in a competitive market as she/he will be on the frontlines, keeping you in the know at all times.

Be ready to act instantly

No matter where you live, listings for homes in popular neighborhoods are often few and far between. When these homes do hit the market, they don’t last long. If your heart is set on buying in one of the more popular areas, starting your house hunt early and having patience means that when the moment comes, you’ll need to act quickly.

If you’re really interested in a home, ask your Realtor to get as much info as you can beforehand: property reports, disclosures, etc. Keep your schedule open so that when a home becomes available, you can get to it immediately. .

Get pre-approved

One of the smartest things you can do to ensure your chances of getting the home you want. This part can very well make or break the process. Assume others will be putting in an offer as well and having a pre-approval letter in your hand will give you an edge.

Having your lender verify your ability to afford a home loan for a certain amount lets the seller know you are qualified and motivated. It shows financial security which gives the seller the confidence to feel that the sale will go smoothly with you.

Keep your offer simple

Most offers include contingencies- things like completing inspections and receiving a mortgage commitment -that needs to happen for the transaction to move forward.

When looking at offers, sellers tend to see contingencies as potential opportunities for the deal to fall apart. As a result, they’re more likely to choose an offer that’s relatively “clean” or reduces their risk of potential hang-ups.

In a competitive market, you might see other buyers removing or reducing their contingency periods to make their offer more competitive.

But remember! If you choose to, for example, waive an inspection contingency, you’re agreeing to buy the home regardless of what problems may exist. You’ve got to be OK with that.

Start with a strong sale price

Besides keeping your contingencies in check, there is another component of the offer that will help set you apart from the crowd and it’s fairly obvious — the offer price.

If it is possible for you, consider putting down a larger deposit which will let the seller know you are serious. Be flexible with the closing date to accommodate the seller’s schedule. And know that the sellers are likely to be enticed by a big payout, or if possible, a cash offer. Offer the asking price – and even more, if you think you can swing it. Use a mortgage calculator to see what your monthly payments will look like.

Write a personal note to the seller

Remember that many sellers have an emotional attachment to their home and moving is often hard for them. They’ve put their heart and soul into the home, built families, and made memories in the home. Write a note letting them know why you love their home and how you plan to take care of it. They may love to hear how their home will be in good hands.

Be prepared to negotiate

The whole experience of buying a home is emotional and if the home you are trying to buy has multiple offers, this isn’t the time to throw in a lot of extras. Keep the contract as clean as possible by not asking for extras such as closing cost changes, home warranties, appliances or furniture.

The Bottom Line: Be flexible. As a buyer in a seller’s market, not everything will go the way you want it to. Be patient. If you are working with the best Realtor, they will have the experience to keep you calm while guiding you in the right direction.

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Real Estate Myths Debunked

Just because you read something on the internet does not mean it is true.  Real estate myths are all too common, however, they can be “debunked” with a proper explanation. Most people only deal in buying or selling real estate only once or twice in their lives. Because of this, myths about the real estate industry abound, causing confusion among new buyers and misconceptions about real estate

Set your home price higher than what you expect to get: As a seller, giving your property a price tag that is higher than the prevailing market price may reduce your chances of getting a good deal for your property. Homebuyers and agents usually do not consider homes that are priced beyond market value. Also, you might consider pulling down the price if you are not able to attract offers in the first few weeks of listing your property for sale. Also, buyers and Realtors often get suspicious about properties that have been on the market for too long.

Experienced agents are always the best ones: It is true that longevity and experience in the real estate business can be some of the indicators of an agent’s competence, but these can certainly not be the sole indicators. Among the essential and imperative traits of a credible real estate advisor are honesty, initiative, listening skills, availability and, most importantly, negotiation skills. Both buyers and sellers look for these qualities in their advisors, rather than the duration of their career.

If buyers don’t like the exterior, they will never consider going inside: It may be true in some cases, especially if the buyer is in a hurry to spot just the right property. But in most cases, buyers are out to get properties that work best for them on multiple counts. If the rest of the features of the house are exceptionally good, they might like to ignore the flaws in exteriors. For instance, even if the exterior is not very appealing, the property might have its desired amenities and features like a great layout, a specific number of bedrooms and bathrooms, a portico, or a backyard. In such cases, the buyer could consider making the purchase and revamping the exteriors later.

Going ‘for sale by the owner’ is the best option: You as a home buyer can choose the route you want to take for finding the right property for yourself. The choice is between hiring an advisor who understands your requirements and takes you on a tour of several selected homes that are relevant. Alternatively, you could access online real estate portals, go through newspaper listings, or speak to people you know are selling their properties, and then go out on your own. 

Agents say and do anything to close a deal: It is a common belief that real estate advisors say and do anything to complete a sale, only to pocket their commission. Though there might be a few aberrations, real estate advisors with a professional approach are ethical people who dutifully toil to get you the best deal. Every agent has different skills, different experience levels, and different traits.

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5 Tips to Becoming A More Informed Property Owner

The ownership of private property is one of our most cherished freedoms.
Property divides power between the government and the individual and allows
citizens to be rewarded for their own industry. But to fully enjoy the benefits of
property ownership, knowledge and vigilance is required. Knowledge regarding
the scope and extent of one’s property rights and vigilance in defending and
protecting those rights when they are being threatened.

In instances where either private or public actors are seeking to challenge your
property rights, be prepared to defend yourself by knowing, in advance, what
your rights are or by consulting with an experienced real estate or eminent domain lawyer. Following these tips will also help you better protect your interests as a
property owner.

Know Your Rights

When you own real property, you have a bundle of legal rights that go along with that ownership, including:

The right of possession
The right of control
The right of exclusion
The right to derive income
The right of disposition

Property rights can also extend to surface rights (the right to use the surface of
the land), riparian rights (the right to any water on your property), subsurface
rights (the right to use what is below the surface, such as oil, gas, and minerals), and air rights (the right to the area immediately above your property). Of course, these rights have exceptions and limitations, and also may come with legal obligations (e.g., taxes). They may also be lost, voluntarily transferred or even regained after a period of time, such as when you rent a portion of your property and the lease terminates. Property rights may also vary from state to state and from community to community. They may be subject to local, state and federal laws. Knowing your rights as a property owner makes you more aware of what you can or cannot do with your property, and how to protect it from intrusions or encroachments.

Familiarize Yourself with the Core Title Documents

There are many documents that contain vital information about a landowner’s
property and the extent of their ownership rights. Among these documents, some of the most important and typical ones are the following:

The Deed and other documents of title and exceptions to title, such as an
easement

The Deed of Trust or other documents showing that the property has been
mortgaged or collateralized for payment of a debt

Survey and boundary documents

Zoning maps and master plans

Some of the terminology in these documents may be difficult to understand for a non-lawyer. But it is still in an owner’s interest to review them in order to develop a basic understanding of property rights and obligations. If you don’t have a copy of some of these documents, you may be able to get them from your title insurance company, county clerk and recorder’s office, or the local land use and planning department.

Go Through the Deed to the Property

Property deeds are signed legal documents that transfer the ownership of the
real property from one person to another. For the deed to be legally operative, it
must identify both the grantor/seller and the grantee/buyer and contain an
adequate description of the property, among other elements.

There are different types of deeds, each type providing different levels of
protection to the grantee, as well as the obligation of the grantor. Deeds also
typically include deed restrictions, which are important in understanding the
extent of the owner’s use and enjoyment of the property.

Understand the Title Documents

Title documents prove the ownership or control and possession of a person over
specific property or a parcel of land.

Aside from establishing ownership, however, title documents also disclose liens, defects, deed restrictions, and exceptions to title that affect the property. Reading and understanding these documents will give you an insight into the limitations and exceptions that apply to your ownership of the property.

Consult with A Real Property or Eminent Domain Attorney

Anytime you encounter issues concerning your property rights, whether it’s a
defect in the title or a potential taking due to an act of eminent domain, seek the
professional advice of a real estate or eminent domain attorney before taking any further steps.

Regardless or the type of property you own or property-related issues you’re
faced with, these professionals can help shed light on the situation and steer you towards a more favorable outcome.

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School District Matters

When it comes to resale value, whether you have children or not, researching school districts is a crucial step when buying a new home. it’s best to invest in a home in a top school district. Living in a good school district doesn’t just bring better teachers, better books, and better test scores — it also can help preserve home values and ensure faster resale rates. These homes often sell faster than homes in lesser school districts. In a case of bad economic times, a home in the lower quality school district declines in home value, while the homes in the top school districts will hold their value.

Do the research. Any information you need for absolutely anything is available online. Do a search to determine the school district or even the specific school, that is the best in the town you will be searching for a new home. There are websites that offer test scores, rankings and demographic information, including student diversity by race and gender, the percentage of students on free lunch programs and the student-teacher ratio, to learn about the schools and school districts you are considering. One of the best ways to dig into specifics on districts you’re considering is by talking to other parents. If you’re moving to an unfamiliar area, Facebook groups and other social media sites can be a way to connect. There’s no better way to get a feel for a certain district than engaging with people who are actually in it. 

A survey on Realtor.com asked random people about their overall buying strategy and how they viewed school performance. The results found that a surprising number of people are willing to give up things to get within the boundaries of a good school district. That, for every five buyers, one buyer would be prepared to give up a garage or bedroom for a good school.

They also found that for every three buyers surveyed, one buyer would even settle for a smaller home to get access to a good school. And over half of those surveyed said they would sacrifice nearby shopping options for a better school.

Beyond sacrificing things in their home purchase, buyers were willing to pay more money for a home in a good school district. One out of five of those surveyed said they would pay between six and ten percent more for a home – and one out of ten people surveyed stated that they’d go even higher, paying up to 20 percent more for a home with access to the right schools.

The Bottom Line: Consult with the best Realtor in the area in which you are looking. The next best resource for neighborhood and nearby school knowledge is your local real estate agent. Even if you don’t have kids, between the Realtor and the research you do, buying a home in a good school district affects the value of the home.

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Buying A Home “As-Is”

Many people fall in love with a home that is being sold “as-is” What exactly does “Sold As-Is” mean? Sellers will list their home for sale as-is when they don’t want to do any repairs before closing. It means there are no guarantees from the seller that everything’s in working condition. When you buy an“as-is” home and later find major problems, you’re responsible for the repairs.

“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 won’t be able to negotiate to get the repairs done. 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 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.

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Real Estate Social Media Mistakes

Social media is helping the marketing efforts of real estate agents. However, many are not getting the results they wish for. There are many common mistakes made frequently that Realtors just are not aware of. As real estate agents continue to have a stronger presence on social media, they tend to observe wrong practices online. This will harm more than help them.

Boasting about your real estate business will only chase people away. You should, however, show your pride in closing deals. Showing appreciation for your clients is the best means to show off your hard work without seeming like you are boasting. Simply thank your clients and say how happy you are for them.

Avoid posts that are overly promotional. Do share your listings, special offers, homes you have sold but not all the time. Too often and you will turn people off as just another person trying to sell something. Social media is for fun and should be social. If you were at a cocktail party, would you ever just keep selling through a conversation? People would do whatever they could to get away from you. Don’t do it here either.

It’s important to mix in other content like blog posts and infographics with your promotional messages. If you don’t have much original, useful content to share with your audience, then take a step back and focus on producing content to share.

Another mistake that must be avoided when formulating a real estate social media strategy is uploading only third-party content. Realtors tend to do that because as busy professionals they do not have the time to generate original ideas constantly. In this case, sharing content from trade publications, industry bloggers, and other related organizations seems like a nice idea. It does not need much time and shows the realtor’s knowledge and interest in the industry. 

However, if all the agent does is post links from other sources rather than putting in some effort to create their own materials, their online presence can go stale and they lose followers. An effective real estate social media strategy needs to strike a harmonious balance between third-party content and original ideas.

It’s really important to reply to the comments that you do get, even if it’s as simple as to say “Thanks” or answer questions that people are asking. Social media is about building relationships and if you’re just posting posting posting but not stopping to engage, it will be hard to ever make meaningful connections on social media. As you make these connections, the people you’re engaging become more than just leads, but potential referral sources.

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The First Home Showing is Online

“According to the National Association of Realtors, 63 percent of home buyers will drop by after viewing a home they like online. What will they see? The home’s exterior – including the front entry, yard, driveway, sidewalk — should serve as a snapshot of what’s to come when potential buyers enter your home.” (HGTV)

Curb appeal is important, but to get potential buyers actually to and then in your home, it is all about your home’s web appeal. Your first showing usually happens online. Studies show that sellers and their agents have seven to 10 seconds to capture a buyer’s attention online and if not, they swipe left, pass on the home and move on to the next one. In such little time, you’ve got to make sure your Realtor has upped your web presence!

Start with preparing and staging your home, both inside and outside. Once it has been staged, the key to creating Internet attention is to compose sharp, clear photos that are big and bright! Using a professional photographer can mean the difference in your home selling or not even being seen. Remember, if the photos do not show well, the home will likely be passed over with a simple click of the mouse, with little chance of consideration for an in-person viewing 

What is your home’s best feature? Is it the recently updated chef’s kitchen or the beautiful outdoor pool and patio space? How about that marble fireplace or the home’s front exterior? Whatever it is, be sure to take plenty of photos of the home’s best features. Your Realtor may even want to make one of these photos the first picture that buyers see in the MLS database and other online real estate marketplaces. We recommend walking the home with your real estate agent to assess the property’s best selling points. Prior to the photo shoot, be sure to point out these features to the photographer.

Remember: when it comes to listing photos, quality trumps quantity. Unless your home is the size of a castle, there’s no reason to have 100 listing photos. Not only is having an excessive number of photos overwhelming for homebuyers, but it also doesn’t leave them wanting more. On the other hand, if the listing has too little photos, most buyers will wonder what exactly the sellers are hiding. Your Realtor should be able to provide you with guidance as to the appropriate number of listing photos. Just be sure to choose only the best for the listing. After all, no one needs to see 10 photos of your master bathroom.  

The Bottom Line: So many decisions are being made by home buyers just by the photos they find of your home online.  Make sure your home is at its very best when it comes time to take the listing photos of your home.  When it comes time to hire a Realtor don’t be afraid to ask to see some of the listings they have done so you can check the quality of their real estate photography.

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Pop-Up Office

“The pandemic was unexpected, working from home was unexpected, but nonetheless many companies realized that workers can be just as productive working from home,”

So, here we are. Homebuyers are now, more than ever before, looking for flexible home office space. A room that is quiet and away from distractions and noise. Staging an area where buyers can easily imagine themselves setting up their laptop, making phone calls, storing paperwork, hosting meetings and have video calls is important to highlight.

When staging a space, the room should connect to the buyer on not only the square footage but how potentially functional the area will be for them. If the office is shared with a playroom or a guest bedroom it becomes a deterrent to the buyer by announcing that the home is too small to fit in all the features of a home office. Avoid confusing buyers about the purpose of the room. It’s not a great idea to have a combination of home office, gym and playroom.

Depersonalize and declutter the room. Remove family photos, diplomas, memorabilia, and anything political. All that paperwork that clutters an office? Remove it by filing it away or tossing it. Consider getting cube shelving with attractive file baskets to keep paperwork near, but out of sight. Be sure to dust, especially around the computer and hide all the wiring as best you can. Keep only the bare minimum of fixtures needed for work and arrange them to make the most of the space.

Appeal to the greatest number of potential buyers by working with a calm and neutral color scheme. Never underestimate the power of a new paint job. It can completely redo the look and feel of any space. Painting is one of the most cost-effective ways to stage. If the area is dark, add additional light sources such as light fixtures, floor and table lamps. Possibly even find a bright overhead light. If there are windows in the room, remove dark or light blocking drapes. Allow all the light in (this will also make the space appear larger). Fill the empty walls with simple artwork to add life to the room.

Minimize furniture. You really only need a few pieces to make the room look like an appealing home office. A simple desk, a chair, some accessories are all you really need.

The Bottom Line: Buyer demand for home office space has accelerated because of the COVID-19 pandemic. Look at your area and make sure you are presenting it in the best way. Office space requires a place to not only work but to inspire and motivate. Neglecting to put a bit of effort into a “pop-up” home office can turn away buyers. As always, find an experienced Realtor to come in and see your space with new eyes and offer you solid opinions to get your home sold.

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Home Selling in The Fall

There’s less competition

Spring seems to steals the show when it comes to selling a home. Reason being that sellers want to capitalize on the weather and with it the beautiful curb appeal. However, because so many sellers want to take advantage of this, the market becomes more competitive making your own home more difficult to stand out from the rest. It’s thought that Fall is a quieter real estate market, but there are many advantages to putting your home on the market for the season, including less competition.

The serious buyers are out

Summer vacations are over giving buyers less time to spend house hunting. Those that are shopping in the Fall are dedicated buyers. Chances are that those who come to view your home are in the middle of a serious house search, which could perhaps make an offer all the more likely. You are now dealing with a more serious pool of buyers. By the time September or October rolls around, these buyers are itching to get their move settled. Nobody wants to move in the snow or during the busy holiday season, so potential buyers usually want to get things signed and sealed as quickly as possible.

Curb appeal

Curb appeal is thought to peak during the Spring, and we all know how important it is to have your property looking its best when you have it on the market. The colors of the leaves are turning beautiful golds and reds making for a dramatic and incredible backdrop for your home. Throw in some potted flowering mums and keep the late-flowering plants cleaned up and you’ve got curb appeal that blows away Spring. Be sure to keep up with the raking as the leaves fall!

Appeal to the senses

The fall and winter months are associated with certain smells and flavors ( pine needles, cinnamon, peppermint, and pumpkin pie). Beyond setting the mood with decorations, you could try appealing to buyers’ senses in multiple ways. When it’s chilly outside, it’s important to make buyers feel warm in more ways than one. Aside from keeping your thermostat at a comfortable level, it’s a good idea to make your home seem inviting.

The Bottom Line: Marketing from a good Realtor will always be a big part of selling any home, and if you sell at their busiest time, which is spring, you run the risk of getting a little less attention than you may want. However, grab them during the off-season of Fall or Winter and your home will be given more attention. There will be extra challenges in selling in the Fall, but if you embrace the season, you shouldn’t have a problem finding a buyer. Take all the necessary steps to improve your chances of selling.

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