Tag: title

The Case For Having Your Home Staged to Sell

Home buyers put a lot of effort and intention into finding the perfect home for their families. When they walk in the front door, it should feel like home to them. They need to feel that personal connection and envision themselves in each room. A home stager can help you put your home together by creating the atmosphere you need to appeal to buyers as they walk through your home. The buyer will have the feeling of being at home and never consciously know exactly why!

The person staging your home will have to be honest, and it can be hard on you as a seller. You have loved your home and can’t see exactly what an outsider can see in your home. It will be best to let the personality of the house be showcased and not your family’s personality. All the trinkets you have collected over the years and out on display will probably have to be packed and put into storage. Rearranging furniture to balance and maximize a sense of space in a room is yet another key to the process. For instance, too big of a couch could dwarf a room. It can be important to get rid of unnecessary furniture and might take a professional to guide you in the right direction.

Each room should feel fresh and inviting and often simply (and cheaply) painting pleasing colors on the walls can make a lasting impression on a buyer. Neutrals are the safest way to go. Even if a buyer isn’t smitten with your neutral choice they won’t feel like they would have to run out and paint over it right away as they might with a pink or a red. Don’t be offended if the person you have hired to stage your home wants to change the color of your favorite room. The goal is to sell your home as fast as possible, so do your best to remove any emotional attachment.

All homes have selling points such as unique architectural elements you may take for granted or a fabulous view that is hidden by window treatments. These should be showcased, highlighted, and staged to stand out. There are ways to enhance each room and it is best to have a critical eye to make sure that each detail shows its defined purpose.

The Bottom Line:  Obviously if you are trying to sell your home it goes without saying that you want to sell it as quickly as possible and get the asking price. It will make all the difference in the world to hire a professional home stager or to vet a trusted realtor who has the knowledge and experience to maximize your home’s potential.

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Potential Problems That Could Delay Your Closing

If you are planning on buying or selling a home, it’s important to understand that there can be delays in the closing.  A real estate contract and the terms and conditions that are set forth in a contract do carry significant importance, but there can always be an issue.

In almost any real estate transaction that includes mortgage financing, the lender requires title insurance. The title company will conduct a search of the property’s title history to look for anything that might affect the buyer’s—and therefore the lender’s—interest in the property. Any defect in title raises the possibility of some third party asserting their own interest in the property. Liens, which give creditors a non-possessory interest in real property, are a common type of title defect. Before a closing may proceed, all title defects must be resolved to the satisfaction of the title insurance company.

If an appraisal comes back to a lender that values the home at less than the agreed-upon loan amount, it may hold up the process. Lenders will not approve loans for more money than a home is appraised for. Sellers might then lower the price of the home or choose to complete home repairs to increase the property’s value. Buyers could front the difference between the appraisal value and the original sale price. The parties could also contest the appraisal. Whichever the eventual solution, the closing date will likely move further into the future.

Home inspections can uncover mold problems, faulty wiring, roof leaks, fire hazards, code violations, cracks in the home’s foundation, and many other potential problems. Smaller issues can even put a closing on hold until the seller resolves the problem to the buyer’s satisfaction. The buyers may also discover a problem for themselves during the final walk-through of a home. They may observe problems with the plumbing, electrical, or HVAC systems, or notice that the sellers didn’t perform an agreed-upon repair or concession.

The Bottom Line: The process of buying or selling a home can be trying and a lot of the issues are simply out of your control. While these listed above are just the most common reasons a closing is delayed, there are plenty of smaller issues. It’s important to have a qualified and knowledgeable Realtor that can deal with last-minute issues and surprises and will stay on top of every step until you hear the magical words: “Clear to Close”.

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Home Inspection Before Listing

A pre-listing home inspection uncovers potential surprises that could possibly derail the sale of your house. If you’re ready to sell your home and want to ensure the sale process will go smoothly and quickly, you may want to consider a pre-listing home inspection. You will get a “heads-up” on any problems that a potential buyer will want to have repaired.

Knowing what is wrong, issues can be attended to and taken care of before you even put your home on the market. Too often, a home inspection is where the deal falls apart because buyers will make their offer contingent on approval of the results. Hidden defects or problems can turn any negotiation in 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.

Most Realtors will tell you to make major repairs before you list your home. The buyer’s inspection will uncover significant defects, and you will be expected to repair them if you want to get the full price for your home. The problem is that you will only have until closing to get the repairs done after the buyer’s inspection.

The limited time frame leaves sellers scrambling to get everything fixed in time. With a pre-listing inspection, you set your own schedule for repairs. There is no rush to list the property until you have made sure the home is in good shape.

You’ll be putting your home on the market with the confidence you’ve corrected any large problems.

Sellers can justify their listing prices 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 let you know which issues are vital to address before listing your home.

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Fixed Rate Vs. Adjustable Rate Mortgage

What Is A Fixed Rate Mortgage?

A fixed-rate mortgage is a home loan in which the interest rate is locked in for the term of the loan. For example, if you get a 30-year fixed-rate mortgage with a 7% interest rate, your rate will remain 7% until your loan is either paid in full or refinanced, regardless of changes in going market rates.

The Benefits: Many homebuyers choose a fixed-rate mortgage because of payment stability. With a fixed-rate mortgage, your principal and interest remain the same for the duration of the loan. This makes budgeting easier since you know what the payments will be. Although it’s impossible to forecast if rates will rise or fall in the future, a fixed-rate mortgage helps protect you from an increase in rates. If you want to pay off your loan sooner, you generally have the option to make additional principal payments too.

The Cons: The drawback is that your initial rate could be higher with a fixed rate than what you would pay on an adjustable rate. There is also a chance that rates could go down, leaving you locked in at a higher rate. However, as long as you maintain solid credit, income, and debt levels, you should be able to refinance your loan to get a lower going rate if they were to go down.

What is An Adjustable Rate Mortgage?

An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 5 to 10 years. The interest rate can/may change (adjust) each year thereafter once the initial fixed period ends. For example, with a 5/1 ARM loan for a 30-year term, your interest rate would be fixed for the initial 5 years and could fluctuate up or down each subsequent year for the next 25 years.

The Benefits: ARMs usually have a lower initial interest rate when compared to a fixed rate, but remember that the rate will reset. Many homebuyers consider this type of rate attractive because of the initial lower payment, which could help them get a larger loan amount. This mortgage allows you to convert it into a fixed rate once the introductory period elapses. If the economic situation seems less certain, this option is convenient. On the other hand, you can stick to the arrangement if the economy is pretty predictable, giving you the confidence of consistency.

The Cons: The potential downside to an ARM is that your rate would go up if market rates increase. This would mean a sudden increase in your monthly mortgage payments. And, depending on the severity of the rate change, the payment increase could be steep. This can make it difficult to budget accurately.     

The Bottom Line: This is a huge decision, so be sure to connect with a reputable lender who will be able to guide you on the right type of mortgage for your situation. Key questions you would need to consider are: How long are you planning to stay in the home? How will you plan your housing budget if you get an ARM and the rates rise? At the end of the day, whether you choose a fixed-rate mortgage or an ARM, don’t be enticed into borrowing more than you can afford. Plan on what fits your budget and goals.

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Improve Energy Efficiency and Add Value to Your Home

A green home sells faster and for more money than homes without energy-efficient designations according to Freddie Mac research. It was found that homes with high energy-efficiency ratings sold for 2.7% more on average compared to homes that did not.

You can invest in upgrades that will improve energy efficiency while adding value to your home. Here are a few examples of upgrades that will lower your energy bills and increase the value of your home.

Double-Pane Windows: When the heating and cooling system doesn’t have to work as hard to keep a consistent indoor temperature, there will be an obvious decrease in energy costs. Upgrade to double-pane windows, regardless of the type, and you will see some pretty significant energy savings. Energy Star-rated windows help maintain a consistent temperature inside your home year-round. And when it’s time to sell, window upgrades are a value-added selling point with buyers.

Spray Foam Insulation: Installing new spray foam insulation in a home that was already insulated or in a more contemporary house will see a 10 to 15 percent reduction in its cooling and heating costs. Adding more insulation to the attic is “one of the easiest things homeowners can do to improve the energy efficiency of their homes.

Use Energy Star Appliances: Another easy way that homeowners can improve their home’s energy efficiency is to replace all appliances with newer, more energy-efficient models. These will save you 10% to 50% of the energy required, and much more if you are replacing an old appliance.

Energy Star is a government-backed program for identifying products and appliances that meet certain energy efficiency standards. It was established in 1992 by the US Environmental Protection Agency as a way to promote products designed to use less energy and reduce recurring costs for consumers.

Upgrading your appliances is a way to increase value to your home and make it more appealing, as most buyers don’t want dated, unsanitary, malfunctioning appliances.

New Garage Door: A garage with poor energy efficiency can have a spillover effect on the rest of your home, particularly if the garage is attached to your home. Replacing your garage door will help your entire house stay cool in the summer and warm in the winter. Since a new door allows air conditioning and heating systems to work more effectively, it could reduce electricity waste and lower your energy bill.

The garage door is part of the curb appeal of your home – one of the first features buyers notice. An old, faded and damaged one can create a negative vision. Updating your garage door is one of the best home improvement return on investments.

The Bottom Line: A good realtor will know that a large part of selling your energy saving home will be to educate the buyer of all the benefits and values an energy efficient home brings. Your updated home will be a huge asset especially as the housing market evolves.

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Full-Service Title Company

Title First Coverage Map

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.

Title First will be responsible for ensuring that all the documents related to the ownership of a property are in order before the real estate transaction is performed. We will also provide an agent to oversee the entire closing process. Insurance will be furnished that protects the buyer and the lender if legal issues arise after the closing.

Once a home is bought, the buyer takes possession of the title for the property. Titles are at the local courthouses and the buyer does not own the property until his name appears on the title. There have been times when titles are not properly taken care of when a home changes hands, which means that if there are any liens on the property still have a claim on it. When this happens, the owner who did not sign off on the deed exchange still has a claim on the title.

Title First will perform searches on behalf of the property owner and the lender. We will review court records to guarantee that any liens on the property have been satisfied and that there are no outstanding claims. We also make sure that the seller that holds the title has the right to sell the property, and that it is has a clear title to close.

Title First will supervise the loan closings and any other real estate transactions. We are then responsible for recording the title, mortgage, and any other document related to the transaction at the local courthouse.

Title First will offer a title insurance policy that will provide coverage for property owners and buyers in the event of legal disputes related to the ownership of the property. However, these issues should not arise as all of the searches are done before the closing. But, there is always the occasion that something was overlooked that can threaten the interest of the owner or lender.

Title First believes in providing value-added services. Whether you’re a Realtor, lender, builder, law firm, buyer or seller, our helpful resources help you meet your goals. If you have a question or would like more information, please contact our title experts.  614-503-7434

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Should You Buy a Home That Has Been Foreclosed?

Buying a foreclosed home comes with risk but can be a great deal. Foreclosed homes are inundating the real estate market and can be a fantastic opportunity. Before you dive into the foreclosure market, you need to manage your expectations and know what you’re doing. It is always recommended to work with an experienced team of professionals, especially if you’re new to the process, to ensure you have a positive and profitable experience.

Get an Inspection. Foreclosed homes are sold “as-is” and are owned by banks that don’t and won’t make repairs to the property. It must be understood that in most cases these homes have been poorly maintained as the owner often vacates the home because they could not make their mortgage payments. The maintenance and condition can be an issue because of the circumstances under which the owner had to move out and the amount of time the house has been unoccupied.  Some people are forced into foreclosure and are very bitter about it thus taking out their frustration on the home before the bank repossesses it. For example, they may remove appliances and fixtures. 

Not every bank-owned property needs repairs – but many do. While you can’t get the bank to fix the problems the inspector finds, in many cases, you can use it to negotiate a lower sales price. An inspection helps you to know exactly what you are getting into.

Get a comparative market analysis. Never assume that a foreclosed home is listed below market value. There is a common misconception that buyers will get a good deal on foreclosed properties. The bank’s goal is to recoup as much of its money as it can and will put the home on the market for more than it is worth. A good realtor can help you learn what prices of other homes in the neighborhood are selling. Knowing this information coupled with the inspection results, you will be better able to determine what price you will pay for the home.

The process to close on a foreclosure can take more time. The offer you prepare to make will go to a bank, not to an individual seller. There are many layers of approval that the offer must go through. Foreclosed homes more times than not run into title issues, such as uncovered liens on the property that can further delay and complicate the situation.

The Bottom Line:  It’s possible to find foreclosed homes that are being offered at below-market rates. These homes are sold “as-is” so due diligence is extra important. Work with the best realtor that will be able to explain both the pros and the cons of buying the home. The amount of risk and potential reward of buying a foreclosed home can vary depending on which part of the foreclosure process the home is in.

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Buyers: What to Expect From Your Realtor

Hiring the right Realtor for the job is critical when buying or selling a home. Without experienced professionals by your side, the entire process can become a nightmare. The three main factors that will sell a home are price, condition, and location. No one can change the location, so if a home is priced correctly according to its condition, then it will sell. A good Realtor should properly research the market, and advise you to list the property at a price that will bring offers. Unfortunately, if the price advised is too high, in order to simply get the listing, you won’t know until months later when your house remains unsold.

The right realtor for you might not necessarily work at the largest brokerage, close the most transactions, or make the most money. Real estate professionals have a saying that 20% of the agents do 80% of the business. Your goal is to find one among that that 20% to work for you, and it’s not as challenging as you might think to find the best one.

Since your house is one of the biggest investments you’ll ever make, it makes sense to be a little choosy about whom you hire to help sell or buy it. Find an agent whose philosophy and methods align with your preferences. And be prepared to interview at least two or three agents to find the right person. Asking the right questions will help you gain insight into the agent’s capabilities and personality. 

A real estate agent will walk their clients through each step of the transaction onto closing. The following are some of the things you should look for when searching for the best realtor:

  • Endless Knowledge of the specific area that you are hunting. It’s important that the realtor know the good and the bad of each neighborhood and if she does not know it, will be able to find good and useful information. She needs to be able to give you research on the schools, the crime rate, upcoming development plans, and any other situation that might impact your decision.
  • It’s wonderful when the realtor is active in the community. By being a part of local organizations, charities, and events, they should have good relationships with other involved professionals in the area such as loan officers and home inspectors.
  • The realtor should be up-to-date on industry news and trends as well as take classes in continuing education programs. Having someone by your side while you look for a home that is knowledgeable is important. And, if they don’t know something they know where to get the information immediately.
  • Ask friends, family, and coworkers who they know or who they have heard about. Get recommendations. Check online reviews. Learn more about them from their social media.
  • The realtor you choose should make you feel like you are their only client. He should be available to answer any questions and address any concerns. you should be able to access them easily by phone, email or text and their response should be timely.
  • The best realtors are proactive and help find properties to see easily and quickly. They should know of price adjustments as they happen and proved you will any information on sales activity so that you have an idea of what is going on in the area you are interested in to help set an expectation on how much you may have to pay for a property.
  • The role of the real estate agent for a buyer when negotiating the offer is to communicate with the listing agent and/or seller on your behalf to negotiate the best price and terms. When preparing the offer you should be provided with a comparative market analysis (comps), a list of recently sold properties, active comparables, and expired listings and then should advise you on how differences in properties affect value. They will understand the market trends and advise you on an offer strategy.
  • Your realtor should have the ability to know what is normal or not with a home that might not be visible to you on the first showing. She will carefully inspect the property disclosure statement to determine if there are any red flags. An extra step she might take is getting the monthly cost for heat, water, and electricity.
  • Your realtor should be ready to help finalize, tie up loose ends and help answer any questions to be ready for closing. The deposit needs to be handed in on time in trust, documents including mortgage information need to be sent and so much more. To be sure it all goes smoothly and that you don’t get lost in the process, you’ll need an experienced realtor.

The Bottom Line: The home buying process is always complicated, whether you’re moving to a new state or buying your first place in your home state. Who you choose to work with is essential to the success of your house hunting and having the right realtor by your side can make a huge difference.

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Disclosure Examples

Disclosure laws in general require sellers to say upfront whether their property has certain known issues that could impact the buyer’s health or safety. These laws vary by state but are meant to protect both the buyer and the seller. Disclosing any issues about major home components, systems, and conditions puts the buyer on notice—and prevents the seller from being held liable for future problems.

The following are some of the most common disclosures required.

Lead

Federal law—the Residential Lead-Based Paint Hazard Reduction Act passed in 1992—requires the disclosure of any lead-based paint or chipped paint in any housing built before 1978. Under the law, homebuyers also have a 10-day period to conduct a paint inspection or risk assessment for lead-based paint or related hazards.

Asbestos

The health hazards of asbestos are well-known in the workplace; the U.S. Occupational Safety and Health Administration sets standards for asbestos testing and disclosure in work environments. Although residential disclosures vary by state, many require disclosures about asbestos on houses built before 1975.

Plumbing Issues

Many problems with plumbing aren’t readily apparent. If you’re aware of plumbing and water related issues such as leaks, old and potentially cracked pipes, consistent issues such as clogged drains, or issues involving access to water shutoffs, broken faucets, or other water related problems that aren’t immediately noticeable but you’re aware of and fail to disclose, can potentially open yourself up to litigation for failure to disclose these problems.

Structural Damage

When homes are built and remodeled, they’re often built correctly, however, unseen defects in construction can often be discovered right after you move in or take some time to notice. In instances such as these, a homeowner may have noticed cracks in their foundation and has made repairs to close the cracks, hydro-lifted portions of the foundation, or other repairs to address these issues. These are very important issues that must be disclosed because they address the integrity of the property.

HVAC Concerns

This may seem like it can be a rather cut and dry issue that is addressed during an inspection, however, we have encountered instances where a home is inspected in the wintertime and the air conditioner isn’t inspected, only to find out that the AC doesn’t work in the spring. These types of failures to disclose the HVAC operative capacity, as well as the condition of these items, can leave a seller open to potential litigation.

The Bottom Line: If you are unsure about what to disclose, meet with your realtor to discuss. From state to state there are some interesting and unusual real estate disclosure laws. There is a legal obligation to disclose the information to buyers, it simply is not optional. There is, however, an advantage for the homeowner that comes with disclosing all pertinent information: The owner removes the risk of a lawsuit and all future liability with their properties after they sell.

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Should I Sell or Rent Out My House?

The question of whether you should completely sell your home or rent it out to future tenants is a big decision. Both options have positive and negative effects that must be carefully considered before making such a big decision.

  • How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations?
  • Because of the economy, many homeowners can no longer make their mortgage payments. What percent of tenants do you think can no longer afford to pay their rent?
  • Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
  • Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner-occupied home?
  • Will you allow pets? Cats? Dogs? How big is the dog?
  • How will you actually collect the rent? By mail? In-person?
  • Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?
  • Do you have a list of craftspeople readily available to handle these repairs?
  • How often will you do a physical inspection of the property?
  • Will you alert your current neighbors that you are renting the house?
  • How much time do you have? When you rent out your home, you still have obligations as an owner. You need to make sure that you’re able to meet your tenants’ needs, such as repairs or emergencies while following all landlord and tenant laws. It helps to contact an experienced lawyer to learn more about these laws, too.
  • Are you financially prepared? Can you cover the cost of the mortgage if a tenant misses rent or if the house sits unoccupied for a few months? What about the cost of emergency repairs?
  • How much do you need to charge? You may want to charge enough rent to cover the cost of your mortgage, taxes, and insurance. If it’s feasible, you might want to set a rent that can partially cover repairs and earn extra income. Make sure that you’re able to ask for enough to prevent it from costing you money — and ask a real estate agent about fair market values in your area. If your rent amount is above fair market value, you may not find a tenant.
  • Can you afford the upkeep? Before putting your house up for rent, make all the needed repairs. Take care of any other minor improvements that make the home presentable and allow you to get the rent amount you want.

The Bottom Line: There’s no right or wrong answer when it comes to deciding whether to rent or sell your house. Meet with your Realtor and evaluate your unique situation and make the choice that’s right for your needs and your financial future

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