Monthly Archives: May 2017

7 Important Things Home Sellers Often Forget to Do

| Mar 21, 2017

To-do No. 1: Google your address

Not all sellers scour the Internet to find out what’s being said about their property, but they should. Nearly all buyers—90%—search online during their hunt for a home, according to the National Association of Realtors. You should be aware of what your online listing looks like, since it will influence the kinds of concerns buyers will have, says Avery Boyce, a Realtor with Compass Real Estate in Washington, D.C.

“Is the site’s estimated value very different from your asking price? It might be because tax records have the wrong information about the number of bedrooms or bathrooms your house has, and this is easily fixed,” Boyce says. Consider this too: Google Maps’ street view of your property may not show improvements that you’ve made, so you’ll want to be sure to include those updates in your listing

To-do No. 2: Account for improvements and issues

“If you’ve owned your home for a while, make a list of all the problems you’ve solved while you’ve lived there,” says Boyce. This could include chimney fires, water damage, or a flood in the basement. Whether you solved the problem or not, you should disclose this information to the buyer so you don’t wind up in a lawsuit after the sale. Disclosing “invisible improvements” that you’ve made, like re-grading or adding a French drain system, can also be a great source of comfort for buyers, adds Boyce.

“The same goes for sewer lines or tanks, radon remediation, or leaky skylights.”

To-do No. 3: Check your real estate agent’s references

An agent’s bad behavior or incompetence could cost you time, money, and peace of mind, so it’s well worth taking extra steps to find the best real estate agent for you. Ask friends for recommendations.

Check that the people you’re considering have a current real estate license—with no complaints filed against them. Meet with the agent and reach out to a few of their references directly.

Real estate agents should be happy to provide a number of references for a new client to call,  here are some questions :

  • Did you have confidence in your real estate agent?
  • Do you think he/she had good knowledge of the local market?
  • Did your agent communicate well and keep you informed during the entire transaction?
  • Do you think that he/she negotiated well on your behalf?
  • Did your agent have good vendors who could assist you?
  • Did your agent returned calls/emails in a timely fashion?
  • Would you recommend this person? Why? (Or why not?)

To-do No. 4: Insist on social media marketing

You staged your home beautifully, picked a competitive price, and listed the property, but there’s something else you’ll need to prepare before you’re fully ready to sell—a social media marketing plan. Video tours, floor plans, and photo galleries promoted on Facebook, Twitter, and Instagram are must-dos, advises Cashman.

“You want to make sure that your agent is using all avenues to attract the right buyer for your home,” she explains. “Make sure your home has a presence on your agent’s website, their agency’s website, and is promoted on various sites that will market the home and give information about open houses.”

To-do No. 5: Make sure the doorbell rings

Ah, attention to detail. It’s those little cosmetic repairs that could cost you your home sale. If buyers see that you can’t even be bothered to repair a busted doorbell, they’re automatically going to think about what else may need fixing and view the home negatively.

“First impressions make all the difference,” says Cashman. “A well-kept home, starting with the view from the curb, gives the perception that the seller has great pride in the home and has taken good care of it—which translates into less energy and costs for the buyer as they prepare to move in.”

To-do No. 6: Clean inside everything

Storage is a huge selling point for homes. So be warned: Buyers are going to poke around inside closets, drawers, cabinets, ovens, refrigerators, and even the dishwasher, whether they’re cleaned or not—so you’d better make sure they are clean.

“Spending the money on a service to deep-clean your home will come back to you at least 10 times in your sales price,” says Boyce. Even if you’ve swept up and scrubbed all surfaces to a shine, you’re not done until dust, crumbs, and creepy crawlies are cleaned out from within the small spaces too.

To-do No. 7: Clarify which items are not included

You don’t want a buyer to fall in love with your house because of the custom window treatments and then rescind their offer when they find out the curtains aren’t for sale.

“The law says that anything bolted to the wall or ceiling goes to the buyer unless specifically excluded in the contract,” says Boyce. “If you want to take your flat-screen TV, chandelier, or custom pot rack, be sure to label it as soon as the house goes on the market, so that buyers don’t bank on owning that item and wind up disappointed.

3 Crucial Reasons to buy a home before the end of 2017

1. Rates are rising

In 1981, when mortgage rates hit 18% and seemed to rise every day, single-digit rates seemed like an impossible dream.

Last August, however, rates on 30-year mortgages bottomed out at 3.55%. Now that the Federal Reserve finally decided to raise its key interest rate, mortgage rates have been climbing slowly. Today, the average rate is just above 4%; by 2019 or 2020, rates could easily climb to 6%.

“All signs point to this trend continuing,” says Richard DeNapoli, managing director for Coral Gables Trust and a former Florida real estate commissioner.

Before you freak out, take heart: Rising rates aren’t necessarily a deal breaker for buyers. The National Association of Realtors® calculated that a rise from 4.2% to 5% would increase average monthly mortgage payments by $90—not nothing, but not a catastrophe, either. And if you take the long view, those higher rates are still historically low.

“For buyers there still is opportunity,” says Danielle Hale, managing director of housing research for the NAR. “For those who are still able to get into the market, these low rates continue to be helpful.”

Another upside: When rates go up, competition and prices often go down.

“I’d tell buyers not to panic, because higher mortgage rates eventually cause sellers to be more flexible on pricing,” DeNapoli says.

2. Inventory is shrinking

In November 2016, there were only 1.85 million homes for sale. That’s a nearly 10% drop from the year before. And it continues a trend of steady decline since just before the housing crash, when inventory peaked.

Real estate experts predict that inventory will continue to shrink, at least for the foreseeable future. That means that in most areas of the country, buyers have more homes to choose from today than they will next year.

Or even next month. If you get moving now (during the winter, which is largely considered to be real estate’s off-season), you’ll have less competition for those homes than you will in the peak spring and summer months.

Bottom line: Every day you wait to start looking for a new home, you face stiffer competition for fewer homes.

3. Home prices are still rising

The bad news for buyers is that home prices now stand higher than before the 2007 crash, increasing 5% from 2015 to 2016. And housing experts expect an additional 2% to 3% jump in 2017, DeNapoli says.

“Prices continue to go up; we have yet to see that ceiling,” says Trevor Levin, a real estate agent with Nourmand & Associates in Los Angeles. “I think they have room to grow.”

How high prices will rise and how long they’ll remain high is anyone’s guess. Rising mortgage rates and the new Trump administration have introduced “uncertainty” into the real estate market, Levin says.

“And uncertainty is never ideal,” he says.

The good news? If you jump into the market pronto, you just might make it before those doors close.

How to get a Mortgage

How to Get a Mortgage:

A Step-by-Step Guide for Home Buyers

| May 2, 2017

Step No. 1: Shop for a mortgage

Before you start shopping for homes, you should shop for a mortgage.  Many first-time buyers wait until they’ve found the perfect home to start shopping for a mortgage, and that’s a mistake. The reason: All lenders are a little bit different, so it pays to compare what they’re offering in terms of interest rates, closing costs, and more, says Richard Redmond, a mortgage broker and author of “Mortgages: The Insider’s Guide.”

This step will also help you pinpoint any concerns lenders might have with your application, and give you time to fix these flaws so you’re in great shape to make an offer once your dream home does come along.

Step No. 2: Get mortgage pre-approval

The goal of meeting with a mortgage lender is to get pre-approved for a mortgage. During this process, the lender will probe your financial past and check out your income, debts, and other factors that help it determine whether or not to give you a home loan—and how much money you can borrow.

Getting pre-approval is critical if you want your home-buying efforts to succeed. Why? Because a pre-approval letter from a lender shows home sellers that you’ve got the financial backup necessary to buy their home. Without it, sellers have no guarantee you can afford their place and, in many cases, won’t take you seriously.

Don’t confuse pre-approval with pre-qualification, which is basically a conversation with a lender about your finances where you don’t need to provide any paperwork.

“A pre-qualification can be drafted on a piece of loose-leaf paper,” says Ray Rodriguez, regional mortgage sales manager at TD Bank. “It often holds no value.”

To apply for pre-approval, you’ll need to provide a lender with the following:

  • Pay stubs from the past 30 days showing your year-to-date income
  • Two years of federal tax returns
  • Two years of W-2 forms from your employer
  • 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts such as CDs, IRAs, and other stocks or bonds
  • Any other current real estate holdings
  • Residential history for the past two years, including landlord contact information if you rented
  • Proof of funds for the down payment, such as a bank account statement. If the cash is a gift from your parents, “you need to provide a letter that clearly states that the money is a gift and not a loan,” says Rodriguez.

Step No. 3: Get a home appraisal

After you’ve made an offer on a home and signed a sales contract, most lenders will want to check out what you’re buying with their money—and size it up for themselves with a home appraisal. This means a home appraiser will assess the market value of the house using comparable homes, or comps, much like you and your real estate agent did when coming up with how much to offer on the home.

Most times, the appraiser’s price will end up approximately the same as your own—in which case all is good, says Rick Phillips, an appraiser and real estate agent in Vienna, VA. And if the appraisal comes in higher than what you’re paying, you’re getting a good deal. For example, if you’re paying $700,000 for a home and the appraiser says it’s worth $710,000, you’ve instantly gained $10,000 in home equity.

However, if the appraisal comes in lower than what you’ve agreed to pay for the home, that can be trouble, because lenders will loan you only as much money as the assessment says it’s worth. That means you’ll have to pay the difference—or persuade the seller to lower the sales price to what the lender thinks is fair. Another option is to challenge the appraisal by either filing an appeal or ordering a second appraisal. In most cases this all works out—and if it doesn’t, keep in mind your lender is essentially keeping you from overpaying for a dud.

Step No. 4: Clear the property title and close the deal

When you buy a home, you “take title” of the property—meaning you become the rightful owner. And your lender wants proof! As such, it’ll ask for a title search, which involves paying a title company to search public records for any heirs insisting the property is theirs, liens (from contractors who worked on the home but were never paid), or other problems. Hopefully all goes well, but in case not, this extra step could save you from a seriously scary situation where you’re fighting for ownership, or responsible for paying back old liens yourself.

Once the title is cleared, you can close the deal. That’s where buyer, seller, a lender representative, and any others involved in this process meet to sign all the paperwork, transfer all money owed, pass along the keys, and move on with their lives!

Sure, the whole process of getting a mortgage may sound time-consuming and complicated, but rest assured its purpose is to protect all parties, including you, from making costly mistakes.