BUYING SOLO? WHAT YOU SHOULD KNOW

The number of people buying a home on their own is on the rise. Are you one of them? While it may seem daunting to purchase a property solo, it is certainly far from impossible. In fact, it could be a smart financial move if you have a steady income and plan to stay in your location for the foreseeable future.

If you’re ready to be a single homeowner, here’s what you should know to make the process as easy as possible.

BE CLEAR ABOUT WHAT YOU WANT

When searching for a home, you’ll be bombarded with choices. How many bedrooms do you need? Would you like a home office? Do you need a place to park your car? Would you like to be close to amenities, nightlife or public transportation? There are many questions to consider, so it can be especially helpful to make a list of everything you need in a home. Once you’ve gotten the basics covered, spend some time creating a wish list of things it would be nice to have, but wouldn’t be deal-breakers. This could include having a Jacuzzi tub or walk-in closets. Once you’ve gotten your lists together, you’ll be better able to refine your search and only look at homes that are a good match for you.

BUY WHAT YOU CAN AFFORD

Once you begin your home search in earnest, it’s important to stay within your budget. It can be tempting to reach a little further beyond your means, especially for a home that you love. But that love can sour quickly when you find you’re unable to pay your mortgage each month. Use an online calculator to determine just how much you can reasonably afford.

CONSIDER SAFETY AND SECURITY

While we don’t think making choices based on fear is always a great idea, it is good to consider how safe and secure your new home will be. Since you won’t always be around to check on your house, look for neighborhoods that have low crime rates. Take note of whether or not the house has a security system or the street is well lit. If safety is a big concern, consider buying a condo so that your neighbors are always close by.

THINK ABOUT THE FUTURE

You never know what life is going to throw at you, so it’s smart to think about your home’s resale value. Maybe you’ll relocate for a job or move in with a spouse and need to sell your home. If your new place is in a great school district, near popular amenities or has a stunning view, you’ll have an easier time selling down the road.

WORK WITH AN AGENT

Buying a home can be a little overwhelming, but working with a professional can help alleviate some of the stress. By partnering with an agent, you’ll have a person who can answer questions and guide you through the process. You’ll also have someone in your corner who will work with you to find a home that suits your needs. Don’t let the fear of navigating the process alone keep you from realizing your dream of owning a home. You can do it!

WHAT ARE HOME SELLERS REQUIRED TO DISCLOSE?

Are you gearing up to sell your home? Then you should know that there are certain things you are legally required to disclose to potential buyers. If you don’t, you could find yourself in legal or financial hot water. While disclosure regulations vary by state, here are some main issues you are required to tell buyers.

Lead paint

The most important disclosure you need to make – and one that is a federal law — is whether or not your home may contain lead paint. How do you know if your home has lead paint? If it was constructed before 1978, you need to have it checked by a professional and both buyer and seller must sign a disclosure. Agents are also required to provide a pamphlet from the EPA about how to deal with lead-based paint. If your home was built after 1978, you’re in the clear.

Crime or death

In some locations, sellers are required to disclose whether or not a crime or death has happened on the property. If you’re a buyer, you can even check the address for yourself at this website for a fee.

Paranormal activity

Whether or not ghosts are real is up for debate. Nevertheless, some states do require that sellers disclose any paranormal activity in the home. If you think your house is haunted, you should disclose it. Even if you think it sounds silly.

Pests

Most states require that sellers disclose if there are any infestations or problems with pests in the home. This can include mice, bats, raccoons and snakes. If your home has been treated for termites, this is also something you should be sure to tell a potential buyer.

Water damage

If you have a basement that floods or a roof that leaks, it is important that you make these issues known. Make sure to provide copies of insurance claims or receipts if water damage is an issue you’ve addressed in the past.

Toxic materials

If water has entered your home, it could lead to mold – which is another issue you need to disclose. While most homes contain mold of some kind, it is black mold that can be toxic and needs to be disclosed. This includes whether or not you’ve done mold remediation in the past. Other types of toxic materials that need to be disclosed are radon in basements and asbestos in insulation.

Disputes with neighbors

Is part of your fence on the neighbor’s property, or is their fence on yours? Have you had any disputes with neighbors over property lines? These issues should be disclosed. In addition, while it may not be required, you may want to be upfront if there are any other issues with the neighbors. This could include if they have frequent loud parties late into the night or a particularly aggressive and loud dog.

Check state regulations

Your real estate agent should be well versed in what disclosures need to be made in your state. You can also check for yourself to make sure all your bases are covered. When in doubt, honesty is generally the best policy. By disclosing all known major issues upfront, you are protecting yourself from possible litigation in the future.

5 Tips for Millennial Home Buyers

Realtor.com has predicted that 2017 will be a hot year for millennials in the real estate market. Millennials are beginning to reach those milestones in life that drive people to buy a home – specifically, getting married and having kids. If you’re a young adult preparing to buy your first home, here are five tips designed to help you make the process easier.

Set a budget

When shopping for a home, you need to have a realistic idea of what you can afford. Keep in mind that your monthly mortgage payment, which includes your taxes and insurance, should not exceed 25 percent of your monthly take-home pay. Take a look at this online calculator that can help you compute what your price range should be.

Don’t be afraid to ask for advice

Buying a home is a complex and stressful process – ask anyone who has done it before. In fact, you absolutely should talk about the home buying process with those who have gone before you. Talk to your parents and other family members who are homeowners about what to expect from the time you start your search up until closing day – and beyond. They may not be hip to the latest social media trends, but they can certainly tell you a thing or two about what it’s really like to buy and own your own home.

Consider more affordable markets

New York and California will always be a draw for young people, but if you want to buy a house in those places you should expect to pay a hefty premium for the privilege. If you’re looking for quality of life paired with a much lower cost of living, look to the Midwest. According to Realtor.com, many millennials will opt to buy homes in larger Midwestern markets near universities. Check out Madison, Wisconsin; Columbus, Ohio; Minneapolis, Minnesota; Omaha, Nebraska; or Des Moines, Iowa – markets that are expected to thrive. Who knows, you could not only become a homeowner, but also a trendsetter.

Have faith

Don’t assume that just because you’re in your 20s, you can’t afford to buy a home. Even if you have student loan debt and haven’t been able to sock much away in savings, there are options. Look into FHA (Federal Housing Authority) loans, which allow you to buy with as little as five percent down. If you’ve been smart about handling your finances, homeownership is within your reach.

Work with a trusted professional

The Internet has made it easier than ever to search for homes and learn about how to buy a home. But that virtual experience can only go so far in the real world. When it comes time to actually begin looking at houses, negotiating an offer, and dealing with escrow, you will want a trusted real estate professional at your side. They have the experience and knowledge to help you navigate the process, and could end up saving you thousands of dollars in the long run. After all, buying a home is one of the biggest financial decisions you’ll make in your lifetime. But it’s also one of the most rewarding, and your new home will become the place where you begin to build the foundation of your adult life.

11 Common Real Estate Terms Explained

If you’re buying or selling a home, you’ll probably come across some terms that you’ve never heard before, or don’t completely understand. Being confused about the terminology can make an already complex process that much more stressful. By educating yourself before you dive into the market, you’ll gain peace of mind and might even save some money. Here are the most common real estate terms or concepts you should know.

Appraisal

If you’re purchasing a home with a loan, the lender will require an appraisal. This is an evaluation of all aspects of your home to determine its value, including its size and condition on both the interior and the exterior.

Adjustable Rate Mortgage

When shopping for a mortgage, you may decide to apply for an adjustable rate mortgage. These types of loans have a variable interest rate and are generally extended for 5, 7 or 10 years. They may also have a cap on how high the rate can grow.

Fixed Rate Mortgage

As opposed to an adjustable rate mortgage, a fixed rate mortgage has a predetermined interest rate. The life of the loan is typically 15 or 30 years.

Closing

Closing is the last step of a real estate transaction when paperwork is signed and the title is transferred from the seller to the buyer.

Contingency

When drawing up a contract for a real estate transaction, there may be certain provisions that need to be met in order for the sale to go through. These provisions are called contingencies, and a home may be listed as “contingent” until these requirements are met.

Down Payment

A down payment is the money a buyer pays upfront to secure the purchase of the home. In most cases, the down payment is 20 percent of the purchase price, though this can change depending on the type of mortgage you secure.

Earnest Money

Earnest money is the cash that is deposited when an offer is made on a home. If the sale goes through, the earnest money is often used towards the down payment. If the buyer backs out of the deal for reasons not stated in the contingency, the earnest money goes to the seller.

Escrow

A property is in escrow once the buyer and seller enter into an agreement and the earnest money is paid. A neutral third party then holds that money until all requirements are fulfilled.

Pre-approval

Before you begin looking for a home in earnest, you should secure a pre-approval from a lender for your mortgage. This is typically a letter from a bank stating how much they will lend to you.

Title

The title is the rights to a property, and often refers to the document that shows evidence of ownership. During the buying/selling process, a title company will conduct research to determine if the title is clear. If there are no outstanding claims on the title, it is then transferred during the closing process.

Underwriting

When a lender researches a borrower to determine whether or not to extend credit, this is called underwriting. This determination is made by examining the buyer’s credit scores, income, credit history and debt.

GETTING READY TO SELL

As we head into 2017, you may be thinking that this is the year to finally put your house on the market. And when you do, you’ll want it to sell quickly for the best possible price. Here are our suggestions for what you need to do to get your home ready to sell.

Detach emotionally

Selling your home can be fraught with emotions, especially if you associate it with some of your cherished family memories. But if you want to be successful, you’ll need to detach. Consciously decide to let go of your emotional attachment to the home, and think of it as a business transaction. Take the time you need to say goodbye, but then imagine a new family moving in so that you can look forward without regret.

Spruce up the exterior

Today’s buyers have a never-ending supply of online resources to research before contacting an agent. Browsing photos of listings is easier than ever, and first impressions count. Make your home a stand out from the get-go by spending a weekend sprucing up the exterior. Clean up the yard, add some color with flowers and take photos when the light outside best accentuates the positive aspects of your home.

Rent a storage unit

In today’s market, most agents will tell you that staging is key for a quick sale and will help net you the best offers. In order to make your home look it’s best, you’re going to need to de-clutter and de-personalize every room. Now is the time to take down all your family photos, empty out the closets and remove bulky furniture. Renting a storage unit early gives you a place to keep all your belongings until your official move-out date. It also gives you a head start on packing, which is never a bad idea.

Make needed repairs

Do you have a door handle that keeps falling off? A window that just won’t budge? Have you been covering up a hole in the wall with a strategically placed framed photo? You need to tackle these types of repairs before putting your home on the market. Not sure which repairs to do? Walk through your house and imagine you are a buyer. What things would stick out to you as potential problems? You should also address any larger issues that may come to light during a home inspection, such as problems with the air conditioning or heating systems.

Do a deep clean

There isn’t a single buyer out there who will be turned on by pet odors or lingering cooking smells. Once you’ve moved your belongings to storage, do a deep clean of your entire home. Make sure to tackle any strong odors, and clean every nook and cranny. Remember, buyers will be opening every closet and cabinet door, so you can’t hide anything. If you can afford it, hire a professional cleaning service to get the job done right. It’s a small investment that could have a big payoff in the end.

How to Save on Closing Costs

You’ve saved up the money for a down payment and are finally ready to make your dream of owning a home a reality. Congratulations! Buying a house is one of the most exciting – and one of the most stressful – events in your life. If you’ve done your due diligence, you’ve shopped around for a mortgage and secured a great interest rate. But did you know it’s also possible to save money on your closing costs? Here’s how.

SHOP AROUND

Lenders are required to provide you with a three-page Loan Estimate that includes your closing costs, which are fees that generally add up to as much as five percent of the purchase price. You can use these estimates to shop around and potentially save yourself thousands of dollars. You can also negotiate to have one lender match the lower closing costs of another.

In addition, a third party provider can perform some of the services required for closing. Take time to research options other than those provided by the lender for services such as pest inspection or title insurance. You’ll often find a lower price elsewhere.

EVALUATE AND NEGOTIATE

Once you’ve received the Loan Estimate, go over it in detail. Ask the lender what each fee covers. This is a good way to discover if the estimate has been padded with unnecessary or redundant fees. At this point, you can negotiate to have some of these fees reduced or removed.

Three days prior to closing, you will receive a Closing Disclosure. Double check to verify that the fees listed on your Loan Estimate match those on the Closing Disclosure or have increased no more than the standard limit of ten percent if you’ve used the lender’s service providers. If they have, the lender is required to reimburse you the difference.

ASK IF SELLER WILL SHARE COSTS

Another way to save on your costs at closing is to ask if the seller would be willing to pick up a portion of the fees. While this is unlikely in a tight market and isn’t advisable in a bidding war, if a seller is particularly motivated they may agree. You will need to check with your lender, as some have caps on how much a seller can contribute towards the closing costs. You can either request to have the seller pay for certain services, such as the home inspection, or for a specific dollar amount. Ask your real estate agent what would be the best course of action in your specific situation.

ENLIST THE HELP OF A PRO

Navigating the home buying process can be daunting. That’s why it’s helpful to have a trusted professional at your side. An agent with experience in your local market can help you through the closing process. They’ll take the time to explain the costs so that you understand, and help find ways to save you money in the long run. In the end, you’ll finally have that house you’ve always dreamed of, and at a price that fits well within your budget.

Preparing for Your Open House

If you’re selling your home, then an open house is likely going to be one of the tools your agent uses to market your property to prospective buyers. An open house is a great way to show your home to as many buyers as possible, so it’s important to take time to prepare. Here’s what you should do in the days leading up to the open house so that you can make the most of the opportunity

Clean and repair

First impressions count, so be sure that your home is ready to impress. Repair any items that aren’t functioning, such as loose doorknobs and leaky faucets. Consider giving rooms a fresh coat of neutral paint. Replace worn items like the mailbox or house numbers. If possible, hire professional cleaners to scrub all the nooks and crannies. This includes power-washing the exterior and cleaning the windows. Your home should be sparkling when prospective buyers finally arrive.

Remove clutter and stage

After you’ve cleaned and repaired, make a thorough sweep of your home to remove clutter. This includes any personal items like family photos and sports memorabilia. You should also remove bulky furniture and clean out the closets. Remember, you want to emphasize how much space your home has. If your furniture is worn or outdated, consider having your home professionally staged. A well staged home allows buyers to imagine what it would be like for them to live there, and can sell your home more quickly and for a better price.

Advertise

The key to hosting a successful open house is to get as many serious buyers there as possible, but they can’t come if they don’t know about it. Make sure your agent is listing your open house in the multiple listing service. Advertise on the major online portals for real estate, including Craigslist. Make flyers and pass them around to your neighbors. Post in your local Nextdoor.com group to let people know, and encourage them to spread the word. Create a Facebook event and encourage your network to share it with their friends. You never know who might be looking for a home in your neighborhood.

Provide refreshments

Don’t be afraid to provide snacks and drinks on the day of the open house. Baking a fresh batch of cookies makes your home smell wonderful, and giving people an opportunity to linger with a drink and a snack makes it easier for them to envision themselves in your home. It also gives buyers the chance to speak with your agent and have some of their questions answered.

Get feedback

Though as a seller you should not attend your own open house, do ask your agent for feedback once it’s over. Your agent spent the day listening to prospective buyers’ impressions of your home, and this can be valuable information. Does the house feel too cramped? Are there any off-putting smells? Is there enough light? Is your asking price on par with what buyers are expecting? Having this information will allow you to make adjustments, so that future buyers are more likely to put in an offer.

By taking a little time to prepare for your upcoming open house, you’ll be well on your way to a successful sale!