 As the buyer, you should pay close attention during the closing process. A home purchase can fall through because the buyer’s financing does not get approved, the home appraisal comes in lower than expected, there are major home inspection problems, or in rare cases, there are problems with the seller’s title and ownership. Don’t miss these six tips:
The Abstract of Title or Title Insurance Binder This document gives you the entire ownership history of the home and it’s a good idea to at least read the Requirements and Exceptions items. In order for the binder of title insurance coverage to issue a policy, the title insurer will have some requirements, such as a seller’s ex-spouse providing a quitclaim deed to relinquish any possible future claims, or for payoff of the current seller mortgage and any liens against the property. The Homeowner Association Documents These are usually delivered as a part of the title insurance binder documents but could also be available separately. Carefully read the restrictions the HOA enforces. For example, if you love the double-wide parking area in your future home’s driveway and envision parking your covered boat there, you don’t want to move in only to find out that the HOA prohibits this kind of vehicle parking. Read the Inspection Report The single most common reason for failure to close is the inspection report and major defects discovered. Read it carefully, and even if you are okay with the issues, you can negotiate for pre-closing repairs or, in some cases, money for agreeing to fix them yourself after closing. Look at Mechanic’s Liens These will show up in the title documents and will be paid off out of seller funds at closing, but pay attention to the lienholders. You have the inspection report and the seller disclosure of known defects in the home. If there are liens for basement repairs or roof repairs, make sure these are documented in the seller’s disclosure. If those repairs are not listed in the disclosure, could the seller be hiding other problems? Consider an inspection for mold activity. Don’t Lock In Your Interest Rate Too Soon You shouldn’t lock in your interest rate before your mortgage has been approved. Should there be problems with the mortgage, the time to resolve them could result in your interest rate expiring before closing. Pay Attention to Due Dates and Other Seller Requirements In the rare case that you as a buyer want to exit a deal for any reason, you can use the seller’s failure to fulfill required contingencies or deliver documents by their due dates to back out of the deal and not forfeit your earnest money.
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 A water-efficient landscape reduces outdoor water usage and saves you money on your water bill. Here are some ways to create and nurture a water-conserving landscape.
Don’t Waste Water Watering your plants and trees in the cooler hours of the morning helps them retain water and lose less of it to evaporation. Avoid watering at the end of the day as wet leaves on plants and trees can lead to mildew and fungus. Soaker hoses use 50% less water than sprinklers. You can lay soaker hoses in your garden bed and leave them there all season. Use Native Plants Growing native plants lowers your water usage because they’ve had generations to acclimate to the local soil, climate, and rainfall. Learn which plants and trees are native to your area by visiting a local botanical garden or gardening association. You can also research online and consult local gardening business owners to find the best native plants for your landscaping needs. Think About Plant Size Before placing larger plants in your yard, find out how tall and wide the shrubs and trees grow, their water requirements, and sunlight needs. Don’t overcrowd your plantings, as this will require additional water. Instead, remember that sparse initial plantings will fill in as they grow and mature. Mulch Correctly Placing mulch around plants and trees helps reduce water loss while combating weeds that can steal water from your greenery. Buy bark mulch from the store or use organic mulches such as pine needles, grass clippings, or ground-up leaves, which help add nutrients to the soil in your garden. Use Porous Path Material When you make your garden paths out of porous materials such as pebbles, gravel, spaced bricks, or pavers without mortar, water can reach the ground and nourish plant roots. Using nonporous materials such as concrete creates water runoff that can cause erosion. To prevent weed growth through porous path materials, lay down a layer of landscaping paper before adding the pebbles or gravel.  A homeowner’s association (HOA) is a private organization that oversees a group of homes in a community, common in condominiums, town houses, and master-planned subdivisions. The HOA is managed by a board of directors elected by the community’s residents, and anyone who buys a home in an HOA neighborhood is required to become a member and abide by the organization’s rules. Here’s what an HOA does for you:
Protects Home Values HOAs enforce specific rules designed to maintain uniformity and uphold neighborhood appearances. For example, some HOAs prohibit residents from parking broken-down vehicles on front lawns, letting their grass grow too tall, or building unsightly attractions. An HOA may also enforce noise restrictions and curfews. Well-maintained and safe neighborhoods are more likely to draw in potential buyers. Provides a Sense of Community Forming an HOA fosters a greater sense of community among the residents. Neighbors have the opportunity to meet one another when using their shared amenities, attending HOA meetings, or participating in organized social events such as block parties. Maintains Common Areas and Funds Amenities The homeowner’s association is responsible for maintaining the neighborhood’s common landscaping areas, which sometimes means planting trees and mowing the lawn in front of each home. Many HOAs also feature perks like community swimming pools, playgrounds, or tennis courts, all maintained and funded by the HOA. Enforces Rules and Restrictions With some stricter HOAs, you may need approval to make changes to your home’s exterior—even minor ones such as what color you can paint your door or how high a fence can be. There may also be restrictions on renting out your home or a limit on how many people can live there. Violating HOA rules could result in hefty fines. Determines Costs of Benefits Living in a community with an HOA has advantages, but you will need to pay HOA fees on a monthly or yearly basis. Generally, the more special features the neighborhood has, the higher the HOA costs will be. Living in a community with an HOA can be a great option for homeowners. However, it’s not the right choice for everyone. Consider the benefits and drawbacks of an HOA as you look for your new home. There’s nothing better than being outdoors with friends and family during the summertime. Maximize your enjoyment of nature at home by building a fabulous outdoor patio to spend your summer outside. Use these design ideas to create comfort and functionality.
Protect the Area from Rain and Sun A patio cover will protect you and your guests from the harsh elements. If you can, have your patio cover built to look as if it has always been a part of your home. Attach it to your house with construction that matches your home’s roof. Wood is an excellent choice for a gorgeous, natural patio cover that will hold up for many years. Keep Cool with Fans Installing one or more outdoor ceiling fans under your patio cover will help you stay cool during the hot summer months. Fans are also fantastic if you have pets that spend a lot of time outside—they will feel much cooler under a fan. Add Some Fire Having an outdoor fireplace means you can spend even more time on your patio when the sun goes down and the temperature drops, or you can feel comfy in front of the fire on days when it merely doesn’t get as warm. If you do not want a full fireplace, consider a fire pit. Make Space for an Outdoor Kitchen It’s enjoyable to cook outdoors in the summertime, so you’ll max out your patio usage over the summer months if it has options for cooking. This could be as basic as a grill for cooking meat and vegetables or as elaborate as a built-in pizza oven. Design a stone countertop with an outdoor sink for extra workspace. You can also add waterproof cabinets that are designed to withstand the elements so you can organize all the items you want to store outside. Dine Alfresco Add a table with ample seating for your family to eat and entertain outdoors. Cushioned chairs or other furniture set around your fireplace or fire pit will create a cozy conversation space. Sprinkle a few accent tables near seating for guests to set their drinks and snacks on. Create a Cozy Atmosphere String pretty lights above your patio or add tiki torches for evening lighting. Music is essential to set the mood, so install a sound system or buy portable speakers to stream your favorite playlist for a relaxing summer dinner party. Add lively greenery and color with hanging baskets and flower planters around your patio area.  A home warranty provides homebuyers with financial protection and peace of mind. It can be especially beneficial for someone investing in an older home. If an appliance or system covered under the warranty malfunctions or fails, then it will be repaired or replaced at no cost?except for the cost of service.
While some sellers include home warranties in the sale, others do not; in which case, you may want to consider buying a home warranty on your own. What Does It Cover? A basic home warranty will typically provide coverage for the home’s plumbing system, electrical system, heating system, water heater, ceiling fans, garbage disposal, exhaust fans, and some of the kitchen appliances. Enhanced home warranties will often provide additional coverage for washing machines, dryers, garage door openers, air conditioners, and other kitchen appliances. You can also add on individual components such as pools, septic systems, and more for additional fees. How Much Does a Home Warranty Cost? A basic home warranty will typically cost between $300 and $600 per year. This means that when a seller includes a home warranty with the house, it’s actually a nice perk, especially if it’s an enhanced home warranty that provides even more coverage. Keep in mind that even though you may receive a free warranty, you’ll still have to pay a service fee for every repair or replacement you request. What Are the Cons? If the seller isn’t including a home warranty in the sale, then you’ll need to buy a home warranty on your own. If you’re buying a newly built home, it’s unlikely you’ll benefit from the home warranty, simply because the systems and appliances are nearly new. It’s also worth noting that home warranties will not cover appliances or systems that were already broken when you purchased the house. Additionally, you won’t be able to choose your own repair person and are limited to the repair person selected by the warranty company. You also won’t be given the option to repair or replace. If repair is possible, that is the course they will typically take even if replacing it makes more sense.  If you are selling your home in today’s hot real estate market, you will probably encounter every home seller’s dream: multiple purchase offers. Typically, multiple offers result in a bidding war as competing buyers bid up the price of the home. This is great news for a home seller, but there are other things to consider besides the highest price when looking at multiple offers.
The Highest Offer Isn’t Always the Best Offer A higher price can mean it is tougher for a buyer to qualify for a mortgage or come up with enough money for a down payment. If the asking price is already at the top of a buyer’s budget and has gone even higher, their lender might get anxious. Always consider the buyer’s qualifications and whose financing is most likely to go through. Your Home Might Not Appraise for a Higher Price The appraisal is something to keep in mind when you are entertaining offers above the asking price. Chances are that your house was listed near the top end of its market value when you put it up for sale. Multiple offers can drive up the home price and exceed the market value of the home. If this occurs, the mortgage lender will require the borrower to bring cash to the table to make up the difference between the loan amount and the proposed purchase price. Compare Contingencies Every home offer comes with contingencies that are designed to financially protect the buyer. Appraisal contingencies, financing contingencies, and home inspection contingencies all give buyers the option to back out of a contract if an issue arises. The fewer the number of contingencies, the better it usually is for the seller because there are fewer reasons a buyer can get out of the contract. Everything Is Negotiable A home seller with multiple offers has leverage to dictate the terms of the sale. If each purchase price offer is similar, take a hard look at other details in the contract. Does one buyer want you to throw in your children’s outdoor play set or the pool table in your rec room? A buyer who has asked for certain concessions might not be as attractive as one who doesn’t have any concessions, even if their purchase price isn’t quite as high. Consider any timing demands competing bidders are making. Is one of them pushing for a quick closing when you need time to stay in the home? Does one want extra time before moving in because they need to sell their own home first? Any and every buyer demand is negotiable, and the home seller has the upper hand in a situation with multiple offers.  Whether you are buying your first house or selling off your family home, there are excellent reasons to enlist the help of a skilled real estate agent. Here are just a few:
1. Pricing Guidance A real estate professional who is familiar with your local market is an invaluable asset when it comes to home pricing and valuation. If you're buying a property, the agent should be able to tell you if it is priced at or above market value. When selling, your agent will be able to tell you what price to list the property to ensure a quick sale and maximum profit. 2. Negotiation Skills An agent handles countless real estate transactions every year and is familiar with negotiation. Using this experience, a skilled real estate agent can get the best deal for their client. Of course, a good agent won't just negotiate on the selling price. They will negotiate concessions on terms such as inspection periods and earnest money. It's worth working with a professional who can ensure you're getting the best deal possible. 3. Insider Information Though some real estate data is available to the general public online, there is information that is only available to a market insider. When trying to buy a home, your agent may know about some houses that haven't even hit the market yet, giving you a head start over the other buyers in your area. When selling, your agent may know of a buyer who is interested in purchasing your property without ever having to list it publicly. 4. Paperwork Preparation Every real estate transaction involves a pile of paperwork; making a mistake on these documents can have huge and expensive consequences. Working with a professional real estate agent will ensure that everything is completed in a timely and accurate manner. All you'll need to do is sign on the dotted line.  A school district's rating is an important consideration when buying a home, at least according to many real estate investors. Homes in top-rated school districts tend to cost more. As a result, buyers sometimes find themselves choosing between nice homes in low-rated school districts and underwhelming properties in better districts. The decision is important for parents who don't homeschool their kids, but what about prospective homeowners without children? For the childless homeowner, the quality of education in a particular district may appear to be irrelevant, but is it?
On paper, buying a home in a low-rated school district can get the buyer more home for less money. But many real estate experts will advise buyers to go for a more expensive home in a better school district for a couple of important reasons. 1. Holds Its Value. Homes in better school districts tend to keep their value, while homes located in average or low-rated school districts devalue the quickest. 2. Easier to Sell. A home in a top-rated school district is usually easier to sell, since it's more attractive to parents. 3. More Buyer Interest. Along with parents, investors often go after homes in good school districts. The result is that these homes get more views on real estate listing websites and sell faster. If buying in a top-rated school district is beyond your budget, there are financial reasons to buy in a less-than-perfect school district. School District Ratings Can Change When a buyer is already paying a premium to be in a top-rated school district, there isn't always a significant potential for gain. Prospective buyers should also keep in mind that homes in good school districts can be risky. The home may only retain its value if the school district continues to be highly rated. If school ratings slip, so will the district's home values. In comparison, a home in a low-rated school district can see its value go up if the district gets a better rating. Property Taxes Are Lower Another reason to buy in a low-rated school district is the taxes. Property taxes tend to be considerably higher in good school districts. While a school district's rating is certainly worth considering, there's much more to home value. For example, nearby amenities and local government can affect a home's resale price. For homebuyers with no plans to have children, those other factors may be more important than the school district.  If you’re contemplating putting your home on the market, it’s a good idea to evaluate what your home has to offer and how it might stack up against the competition. Many buyers prefer features involving comfort and convenience. Here are six common features homebuyers look for:
Open Floor Plans A spacious home is high on every buyer’s wish list. Open floor plans make even modest spaces seem larger simply because your eye can see farther before coming up against a wall. Adequate natural lighting also adds to the feeling of spaciousness. Uncluttered windows free from heavy draperies or blinds allow the maximum amount of light to enter a room. Hardwood Flooring This rich and expensive-looking flooring has grown in popularity in recent years, and it’s also easier to keep clean than carpet. Simply add an area rug to bring a splash of color to the neutral wood. Energy Efficiency Being energy efficient is high on everyone’s list of desirable characteristics. Double- or triple-pane windows help keep the home warm in the winter and cool in the summer and provide great savings on utility bills. If your furnace is decades old, it will never be as efficient as a newer model. Lots of Storage Having numerous places to store belongings is usually on the top of a buyer’s checklist. Adequate closets in bedrooms, storage in the basement or attic, and extra space in the garage will appeal to buyers. Unfortunately, you may not have a lot of control over the available space. Try to make the storage space you do have seem ample by reducing the amount of clutter stored there. Attractive Outdoor Space Decks, patios, fenced-in yards, and exterior lighting are very desirable to homebuyers. Show off the space you have to its best advantage with plants, outdoor furniture, and a grill. This will provide a comfortable atmosphere for entertaining and relaxing. Eat-In Kitchen The kitchen is called the heart of the home for a reason. It provides an informal area for breakfast on the run, children’s meals, and quiet moments to relax with a cup of coffee. Having a spacious, eat-in kitchen is high on the want list for most buyers. You can’t always match all the items on every homebuyer’s wish list. But if you know what most people are looking for, you can arrange your home to emphasize its best features.  Spring is the time to refresh your house and yard with a deep cleaning and an exterior makeover. If you can’t manage this job yourself, then it’s worth hiring a professional service to do it for you.
Make the Exterior Sparkle It’s essential for buyers to have a good first impression. Put in the effort to power-wash siding and walkways so that they are squeaky clean. Clean the Windows Give all windows a good washing, both inside and outside—and be sure to include skylights in the ceilings and sidelights in the doors. Look Up and Clean Up Part of the exterior tidying should include the gutters and eaves troughs. Clean out all debris and wash them thoroughly. Paint Anything That Needs It Make sure to include repainting or staining decks and porches. Paint the front door an attractive color—not gaudy, but not too bland either. Create More Curb Appeal A freshly mowed lawn and trimmed bushes make a property look finished and clean. Touch Up the Garden Planting colorful flowers in existing beds will brighten the garden. Pulling weeds and putting down fresh mulch also gives the property a finished look. Light Up the Night You can place solar lighting along pathways and keep outside lights on in the evening in case potential buyers drive past. Dress Up the Outside Use mats, potted plants, furniture, a hammock, or a swing to decorate entryways, porches, and patios. It gives the home a relaxed appearance and shows off its potential. Check All Locks and Doorbells Even though many buyers will change the locks, making sure everything works gives the impression that a home is well maintained. |
AuthorsA variety of real estate related references and pertinent information by various contributors. Get the latest real estate news and helpful tips regularly. |
