You’re not selling this house. You’re not! You’ve just made your living room look like it’s the size of a postage stamp.
Guys, please, I beg you, THINK. When you want to sell your home, you must think about the buyer. You have to get into the mindset of ‘the masses’. Most people do not want a giant sectional sofa taking up all of the real estate! It short circuits the buyer’s mental process of buying. And here’s a little known fact for you: Most people cannot ‘envision’ the space without your stuff in it. They see the sectional sofa as hogging the space and blocking the aesthetic. And they are correct, by the way and more importantly, that huge trendy sectional has just hijacked their imagination.
And it’s not a judgement of your decorating taste. If you like it, do it. You do you. I’d actually love to plop down on that sofa in the picture. Would I buy that house? No. The room’s too small (I’m chuckling). BUT when you want to sell that space, you have got to back your taste into the space behind marketing. I’ve studied marketing; I can even recommend colors. But I don’t do that. I love it when my buyers get to see a lovely space that looks like a HOME. Yes, even with pictures. The days of ‘minimalism’ are fading fast, but maximalism is already blasé. The happy medium and the quicker sale aesthetic, is somewhere in between. Speaking of colors in marketing…if your living room is vibrant orange with purple trim, I’m gonna recommend a change.
Now, do I think you have to sterilize your space? NO! The home should still look like a home. But you have to remember, you are selling space. Big, wide open space. Even people who want more delineated spaces want those individual spaces to look big. And when they stop walking and start to place their OWN furniture in their mind, that’s a GREAT thing. But they never get there if their senses are overwhelmed by MASSIVE furniture crammed into a small space. So here’s what I advise my sellers.
You are moving. This will soon not be your home. Start thinking like a buyer, and ‘rearrange’. Take a deep breath and let go of the emotion (I know that’s hard). Think about your sales price now. Maybe get a small storage unit and put some items in there. TRUST ME. I cannot tell you how many times my buyers turn around and leave when they think the spaces are too small. And there’s this: So many people put the back of a sofa right across the room where the fireplace is the focal point.
The fireplace wall is the ‘money wall’ for your home. DON’T BLOCK IT. Switch the furniture placement to open that view while you are marketing your home. People say, “Wow!” when they see the sweeping vista (okay that’s a bit hyperbolic) from the kitchen island to the fireplace. If you have the floor plan where there’s a dining table between the kitchen island and the living room, don’t put tall decor on the table. Make the VIEW un-interrupted all the way to the ‘money wall’, because they WILL stand behind that island to view the den or living room with the fireplace. They will. It’s okay to put decor on the table (I would), but don’t let it grab the attention of the buyer who is trying to decide if this space will work. Think: SQUIRREL! So…what about that buyer’s decision process:
Buyers enter your home and their creative brain takes over. They immediately start thinking how they would live in that space, and they think about how they would put THEIR stuff in it. The home should have a comfortable temperature, it should SMELL good (don’t put the fragrance things in the outlets; it makes buyers think you’re hiding something). Open the blinds and push back the dark curtains (better yet take them out). Let the sunshine in. Sunshine is a wonderful psychological marketing tool and it’s FREE. Don’t have gigantic decor on spindly tables (danger) and take the pet snake terrarium to a friend’s house (don’t laugh; I’ve had that happen). Think like the masses.
Now about that sectional: Here’s my editorial. Sectionals are a smart marketing tool for furniture makers. They get to make a sectional cheaper than regular sofas and make you think they’re worth more money. So they create the “everybody’s doing it!” idea and of course people fall for it and they pay more money. In marketing, that’s called affiliation. And it has worked. And it’s the bane of my existence unless I’m showing a huge home to my buyers because chances are, the dreaded sectional will be in the living room.
You know by now that I have opinions. Well these are mine, and you’ve heard me talk about this before. Well yesterday’s news made me very happy. Just know that these are MY OPINIONS, put forth to hopefully get you interested in digging into this situation, because it could cost you thousands you didn’t even know you were losing. Buckle up.
Remember that post I did, talking about the looming juggernaut that could harm our market significantly? The harm I anticipated was just me, analyzing the situation like I always do. I was sick in the pit of my stomach, thinking about what this was going to do to our market here. Apparently I wasn’t the ONLY one feeling sick. Hence the lawsuit filed yesterday by Zillow. I know, many of you have dollar signs in the crosshairs as I speak; but this is not how I view the market.
I view the market as a population of folks who need to either sell or buy real estate, and most of the time, it is their largest investment. I am always honored to be chosen to help, regardless of the price point. I am a data person, and I actually serve my clients, free of greed. THEREFORE, I love to help them make the best transaction they can. This means I want the real estate market to be open, accessible to all, and positioned to allow good competition. From this comes this saying: The house is worth what someone is willing to pay for it. But the idea is that there are a LOT of somebodies out there, not just a group inside a fence that not everyone can access. I want YOU to have whole access. Because competition helps you!
I drive a small crossover SUV that is 13 years old, in the shop way too often. I do NOT drive a 100K automobile that I expect YOU to pay for. I live in a small townhouse that’s 23 years old. In other words, I’m not ever asking you to support ‘my lifestyle’. Yes, real estate is how I make a living (pay my bills), but that’s life, NOT lifestyle. If I come to do a listing appointment, look out the window. Look at my little car. You’ll know I’m not greedy. Don’t fall for the “I’m worth it” mantra. I’m worth it too; but I also make my own way, not riding on your back. Don’t mistake that for me being mediocre. I’m not. I’m a Senior specialist, a strategic pricing specialist, a negotiating specialist, I worked for a builder so I know what to look for to find red flags, and I was a scientist in my other life, so I’m very detail oriented. I’m also a compassionate servant, so I take care of my clients. That’s very different from greed, very. So yeah, NOT mediocre. And today, I can work with my clients in the way that helps them best. That’s your first data point.
Our market is healthy, though slower for ‘resales’ because builders are throwing money at buyers to get them to buy their product. Tens of THOUSANDS. And they have their own mortgage company and title company…money they get back when you choose them. I get it! It’s hard to turn down that kind of incentive money when it definitely reduces the downstroke pain, and you get a new house. I get it. But it makes it harder for people trying to sell their existing home. Just know that existing home sellers have always competed with builders, so that’s nothing new; it’s just that builders have more money than God now and they can tilt the entire market towards themselves. Still, in a fair market there are thousands of people who prefer an older home! You should be able to see ALL of them, not just the ones the juggernaut wants you to see.
In a hot market, buyers often bring ABOVE list price in order to win the home. I’ve been through the insane market times when the only way that made sense was if you planned to own that home for a very long time. That still applies. You always want equity growth to be a steep upward curve if you are going to offer above list price. I can explain all of that to you. In my market, at this minute, you should plan to offer at or above list; that’s just how it is right now, this minute, in this market. How do I know that? Well for NOW I have access to all of the data…until the juggernaut shuts it down.
If you want to buy OR sell, the open, unfettered market is your friend. It’s honest, it’s visible, it gives you all of the data you need to make a good choice. Sellers pretty much know they can often garner multiple offers in a free market, and buyers can search thousands and THOUSANDS of available homes to find the one that works for them and that they feel good about trying to buy. No roadblocks, no boundaries, nothing hidden. That’s about to change if this lawsuit fails. And the one who gets hurt is you, consumer. The 800 pound gorilla is going to laugh all the way to the bank.
If you are directed to call a ‘LISTING AGENT’ when you search for a home, know that you are TALKNG TO THE AGENT WHO WORKS FOR THE SELLLLLER, not you. That means everything you tell her or him, that person is obligated to blab it to the seller. CALL A BUYER AGENT for goodness sake. That’s me, a lot of the time. A buyer agent works for YOU, unless you decide to allow for dual agency, which I NEVER advise. Firm, yes; agent NO.
Now back to the ‘juggernaut’ currently under a class action lawsuit. This paradigm is designed to block out a huge block of potential buyers, if you are selling, OR a huge block of listings, if you are a buyer. In other words, my latest data calculation and info I have researched, shows that if you don’t follow the juggernaut rules, you miss out on maybe 30% (right now) of the available homes or buyers out there, whether listing or buying. As the juggernaut moves forward, the percentage of ‘freely available’ homes you can see online will shrink. If you are not with the juggernaut, your home doesn’t show up on the AVMs…that’s the search places you go to, to find homes, or to compare prices of other ones on the market. It’s a takeover in the name of greed…in my old car old house opinion. In NC we have a thriving real estate market, with unfettered boundaries (for the most part) for you to go online and look and search to your heart’s content and to feel pretty sure you’re getting reasonably good data. Nearly all of my buyers pick the homes they want to see online, all by themselves. And by the time we go to view it and evaluate it, they have a pretty good idea of the whole picture. If this juggernaut takes root, those days are over. Anyone not joining in what I perceive to be harmful to buyers and sellers, will eventually be out. Out means you get what they say you get. Remember when you used to be able to pick your colors when you bought a new home? Now what happens? You get what the builder says you get. That’s how it works folks. It becomes less and less about you and more and more about what is easier and more PROFITABLE for the juggernaut. Here’s what was posted about the lawsuit, you can look it up and see how you view things:
“Zillow today took a big step in standing up for a free and honest housing market. MRED and Compass conspired to cut off Zillow’s access to Chicago-area listing date, not because we violated any legitimate rule, but because we’re committed to giving every buyer in the market the widest possible audience, and every agent in the market a fair shot at competing. When we didn’t back down on our commitment, they announced a national alliance designed to extend the pressure everywhere.”
And it continues on. This article came from LinkedIn.
Imagine you want to buy a car and the dealer says, here’s the price. And you wonder…because today’s buyers are pretty doggone smart…how do you come up with that price. And the dealer says, “I’m not gonna tell ya.” And you think, “I’m gonna check out other dealerships”, and you get there, and there’s that SAME GUY. You need data, not someone telling you that you get what I SAY you get. Like that. You need everything you can get to help you make good choices and you DESERVE it. That’s what we have right now. But not for long.
Please pay attention to what’s going on with this lawsuit filed by ZILLOW. We all know Zillow. I use Zillow nearly every day and I love it. But going forward, it’ll be a cobbled tool. You need to know that and hope Zillow wins. If a Compass agent comes to a listing appointment talking about exclusive (that word) listings, know that your listing will be inside a fence that MANY buyers will not be able to see. That cuts down free market competition, and that could mean tens of thousands of dollars lost to you. And the real estate transaction is supposed to be about YOU.
I will not be joining the juggernaut. I despise greed for greed’s sake, I don’t like hostile takeovers, and I don’t like the message that if I’m not one of them YET, I will be. Not MIGHT BE, but WILL BE. Oh boy that doesn’t work with me. That’s not how I roll. I could not live with myself if I couldn’t serve my clients to the very best of my ability. It is an honor to help someone choose a home, or sell one so they can continue on their journey. People matter to me; I LOVE helping them along their journey. It’s NOT about the money for me, and I hope Zillow wins.
There’s new age of real estate coming, which I think is an attempt at a monopoly. How it plays out remains to be seen. What if your choice becomes more and more limited? I wouldn’t like it.
When a real estate company offers you an ‘exclusive listing’, the first thing you should think about is THE MARKET. Say that with the technical echo. If tight boundaries are put around your home for sale, then you could be missing out on the boost you get from the open market competition! If a company only wants your opportunity to go to their ‘group’, you’re missing out. In the areas where homes are hot commodities with a lot of pent-up buyer energy, seller, you want multiple offers to roll in. That’s how you make the greatest dollar amount for your home. If your home is listed with an ‘exclusive’ boundary, you’re likely going to miss out on that market boost.
By the way, your list price can very well be overshot by a motivated buyer. You can garner well ABOVE your list price in a competitive situation! Many people in my market are offering above list price and bringing the extra in cash to closing, just to get your house.
The market: Listen, this just means your home is worth whatever someone is willing to pay. When you get a market analysis…listen up…that is HISTORY. It is not today. The market analysis is just a starting point and it has many facets: Time of year, location, age of home, which subdivision, which PART of the subdivision, how many rentals surround you? Rentals. Your value just went DOWN if your community is full of rentals. The investors won’t tell you that, but it is absolutely true. Many rentals = transient community. You will never know whom your neighbors are. That’s important. One more thing: the MARKET changes by.the.minute.
Take the time to sit down with an experienced agent who knows. Bring your questions, have coffee and engage. You don’t have to sign anything, you don’t PAY anything. Yes I said sit down with an agent. You are about to fork over a LOT of money. This transaction should NOT be done with your head bent down over a phone. Talk. Ask. Learn. You can find out if the agent is there to get your money, or is there to serve you. You ought to be able to tell the difference and if you can’t, good luck. If you hire an agent who only wants your money, you get what you deserve. A good agent should have YOUR best interest in mind. By the way, you should actually listen to her and not try to take the reins. Good agents tell you the truth that will benefit YOU. Many people lose out on several homes before they learn to listen to the agent. Good ones know. We just do.
Let’s talk. I’m Brenda with Premier Advantage Realty. 919-210-6113. Let’s talk. Coffee’s on me.
Not what you want to hear, I’m sure, but…it is your decision.
The good news is: you have an advisor called a real estate agent. Here’s why this matters. Real estate agents have to know their market and even sometimes markets they don’t operate in. Why? Because real estate is complicated and multi-faceted, particularly if you’re trying to bridge two different markets. If you are moving to our market, we need to know the market you’re coming from if you have a home to sell. If you have a home to sell, you are going to be held to expectations by the seller from whom you wish to buy. So your agent needs to know how long your existing home in that other market might sit on the market. This way, we know how much time you will probably need, so you do not BREACH your offer to purchase on the home you wish to buy. That’s a mouthful.
By the way, if you do this on your own, your attorney isn’t going to know how much time you need.
I’ve said this many times and if you follow me, you know it. Our unique knowledge can save you thousands of dollars…if you listen. We don’t want you to create such a tight timeline that you cannot possibly make it, particularly if you have thousands of due diligence dollars at stake. Remember you put due diligence dollars into the transaction up front, and if you do not close, you lose that money! I don’t know about you, but I don’t like losing money.
Let me give you a scenario of people who refused to listen to their agent. The had a home to sell and made an offer on another home, an older one. It had a septic system, which included an old, old septic tank. Their agent urged them (and urged and urged) to ask the sellers to repair any damage to the tank. They didn’t listen. NOW, they have a bad situation with a damaged tank that must be REPLACED, not repaired. And did you know that if you REPLACE a system, it must meet current code? Yep. And that means permits, new tank, new installation, new drain field and one in reserve. What happens if your land isn’t large enough to support what the new code requires? Well, there are solutions, but the dollar amount could be 5 figures. Not kidding about that.
By the way, if you try to do this on your own using an attorney, the attorney isn’t going to ask you how old the septic system is.
What about this scenario: First time buyers make an offer on a home they’ve looked for, for months. Terms are negotiated and agreed upon and then the sellers want to stay for a couple of days after closing but don’t want to sign a form allowing them to do this, holding them accountable to a timeline and any damage they cause, and pay rent to the new little buyers. THEIR agent pressures the buyers to let them just hang out for free. What would you do?
The first thing is, it is not the new buyer’s responsibility to plan the sellers’ move. It is also not their job to help the sellers move out at their leisure, at no cost to the ones leaving. Poor planning on the part of the sellers does not mean the buyers have to put their financial wellbeing at risk. If you allow this and the sellers burn down the house, it’s on YOU, the new owners. And listen very carefully. Your insurance company PROBABLY won’t cover you because you don’t have a rental policy. See the problem? Don’t do it! Listen to your agent and call the insurance company. By the way, if the sellers scuff up the paint and gouge the walls while they move furniture out, they can leave it and you, new owner, have zero recourse.
One last thing: interest rates are most likely never going back to 3%. If you wait, rates will go up and so will house prices in hot markets. Just make the move. Refinance later if you don’t like the rate, but don’t let the house go up 30 grand in price while you wring your hands. It’s not wise to wait in MY market. And investors are circling like sharks in bloody water. They’re going to offer cash, so PLEASE listen to your agent about how to navigate these waters. I know. You have the internet. But we do. this. every. day. We have deep knowledge, not something we just read online.
Please call me directly at 919-210-6113. I’ve said this a lot too: It doesn’t cost ANYTHING to have a conversation, and experience DOES MATTER. I’d love to help you with your real estate needs. Or cats. I can help you with cats, too.
Why do I need that? I can find the property lines myself.
I hear this a lot, especially if my clients are buying in a subdivision where property lines are fairly obvious.
Well what’s obvious isn’t what you need to worry about. It is the hidden things. Like drainage and sewer easements, wetlands, flood zones, utility or right-of-way easements. These things will dictate, in part, how you can use the land you’re buying, where you can put the detached shop, where you can put a fence, whether your property is a designated ingress for legal access for another party to their property or one they plan to do work on.
Sometimes the underground drainage/sewer easements contain large concrete structures you could walk in. They are there for an important reason and you may never know they’re there unless they are on your property and there’s a problem. And if they fail, you might need to dismantle that shop, move the fence, give up on the landscaping…at your expense, by the way.
A survey will also show you if someone else has encroached on your land…often with a fence, or is using your property for their needs. And…if a legal issue does arise, you having a survey in hand will go a long way towards protecting your interest.
I always cringe at the cost of a survey; however, it is far more important than even the cost indicates. By the way, if you DO have one, it is extremely kind to share that with your listing agent so it can be shared with your future buyers. They will still need to do their own survey, but having the one YOU did in hand, will show them the big green light to purchase your listing.
Get the survey. I promise, it’s worth it for far more than property line location, although it does that too.
Best Regards,
Brenda Briggs, Premier Advantage Realty: 919-210-6113
I like data. I know, some eyes are rolling back, showing blank shark eyes. Sorry not sorry. This matters if you’re going to sell your house. So focus.
It is IMPERATIVE that listing agents know what’s happening in new construction in the area. Make sure they know! How can you make sure? ASK. Why should they know, you ask…
Well, because buyer will OFTEN pay up to 7.5% ABOVE list price, if there’s a brand spanking new house in the area. Do the math. Multiply your asking price by .075 and then add that to your price. If there’s new construction right there, right around that number, or anywhere between THAT price and yours? They’re gonna buy the new house. Why, you might ask? Well because it’s NEW.
This is not rocket science. There are people out here who watch the data and who do the math. But if you don’t know you don’t know. Now you know. If you want to sell your house, you have to get your list price where it needs to be.
I’m never the most popular person at the party, you may have guessed. In part because I like data. Also…I’m not at the party LOL!!! Confessions of a nerd.
But, your agent works for you. Make sure you ask your questions, and also…when your agent tells you that if you don’t get an offer within the typical time on the market, you PROBABLY need to…I know you hate this…LOWER THE PRICE. Except for investors. They are going to SERIOUSLY lowball you because they want you to help them make a profit. Don’t do it.
Buy the way. If an agent does the plug and chug online market analysis, they are giving you a history lesson. YES A HISTORY LESSON. The market is alive. A.Live. There are at least 16 items to consider in a thorough market analysis, not the least of which is the season. School, holiday, wedding…you get the idea. Just find an agent who has time to devote to your specific situation. Because, are you ready for this?
Pricing ‘strategy’ is specifically related to YOUR immediate goals. How about that? It’s not just up to your agent. You are the boss!
Call me and let’s talk numbers. I’m Brenda with Premier Advantage Realty. 919-210-6113.
We keep clutching our pearls waiting for the next rate drop. Then we get insulted. A zero point two five ‘drop’?? Behind some heavy mahogany door, wealthy men are laughing. That’s the picture I have in MY head.
I did a quick check of a 400K home price (which reflects a first time buyer price here in the Triangle). At a THREE PERCENT interest rate, thirty year mortgage, zero down, the principle and interest payment would still be $1687. That does not include taxes, insurance and HOA. My advice? Download a loan calculator and LOOK at what your payment will be (approximately, but close).
The problem is overly inflated house prices! The days of frantic buying are over. I heard we’re 6 months (cognitively) behind reality. We are watching more and more inventory being flooded into a stagnant market, listings sitting longer and longer, prices dropping and dropping, and buyers languishing while shopping, with no sense of urgency. My goodness, what will it take for reality to settle in? We are still ‘whistling past the graveyard’.
Builders are offering rate buy downs? That’s the same as an adjustable rate mortgage folks, and one day that rate will ADJUST to a number you may very well not be able to pay. The wording is different, the result is the same…as in 2008. Ask questions: What will my payment be if the rate goes to 7%? See how you like THAT number.
Buyers, I’m saying this: You now have leverage. Finally, you are not over a barrel. Use your leverage, and as one YouTube creator said, “Be careful not to catch a falling knife”. An adjustable rate mortgage is not always a bad thing, unless you do not understand it inside and out. My first mortgage was an adjustable rate, but at a time when rates were in the stratosphere. Nowhere to go but down. AND I could refinance anytime after the first year, BEFORE the rate adjusted, at no cost to me. Use your mind and your leverage.
Want to chat about it? It’s free to call me. I’m Brenda with Premier Advantage Realty.
If you can believe Discover the Nation, rental markets in metropolitan areas are falling, as much as 12% in some areas. Grand incentives are being offered: rent credits, large gift cards, months of free rent to sign on, and still a lot of empty units sit empty, the windows staring out at what still looks like a bustling economy. It’s a matter of time before the truth breaks forth.
Air BNB homes are either empty or being switched to properties for sale. International investors are standing by, based on new laws, high prices and astronomical special assessments in some areas. For the first time in decades, “renters are back in control”. But are they really? Costs are rising faster than wages, free months worth of incentive notwithstanding, and people are giving up on ‘traditional’ housing like renting or buying. Well what else is there?
This is being called a ‘cultural shift’. More and more people are embracing ‘off grid’ types of lifestyle. More and more people are finding out that a life in under 400 square feet is pretty good when you’re not stressing about how to make a 5 figure house payment. According to Discover the Nation, “Housing markets don’t defy gravity forever.” Some of us watched a big correction in 2008: proof. We didn’t learn a thing, except that greed lives on, no matter what. I feel the effects of that greed looming.
On a side note and keeping the cultural shift in mind, remember that people in their 30’s are focused on setting roots…buying a home, starting a family. This market makes that impossible, and could be one reason young people are so angry these days. Their expected trajectory has been destroyed.
The ones who would be rushing to the market to experience the ‘American Dream’ cannot afford to buy a home now. Jobs are not as available and student loan debt still cripples young people. Those who can afford to buy are eyeing high interest rates and just refusing to accept both high home prices and ridiculous monthly payments. Some are moving back in with parents. House prices have been ridiculously high for a long time now, too long, so one important part of society is now pushed out of home ownership or even renting. Entire groups of people are being offered ‘free housing’, which kills the market in those areas while builders keep flooding the market with product that won’t sell or rent. If I didn’t know better, I’d call that insanity.
The rental market is struggling, clearly. But it’s not just rental high rises and it’s not just luxury accommodations nobody can afford instead of sensible, affordable housing. It’s also production builders. They have finally gotten a strangle hold on resale sellers, because only the wealthy builders can offer the tens of thousands of incentive dollars they offer to potential buyers. One builder is offering up to FIFTY THOUSAND dollars to fill their inventory with bodies, while they still build, by the way, and that’s with a total of 500 to 1500 dollars out of pocket to the buyer. That surely feels like a dream to those brave enough to test that water.
One builder is using their own in-house lenders to ‘qualify’ a buyer with a credit score under 500 in order to sell them a home. Oh, and how about a 3.99% interest rate offered by builders too. Often these come with adjustable rate products which ensure that the 490 credit score buyer will lose that home to foreclosure within years. I’ve seen this before too. By the way, that house that was such a dream come true? It’s still vastly overpriced and possibly cheaply built.
But the builders and lenders have made their money. Builders have ridiculously overpriced badly built product. Loans are sold to investors who will cash in on mortgage interest over the life of the loan…until they default. Am I writing history? Does this sound familiar to you at all? Do you remember the last housing crash?? It’s starting again. When I heard the ‘under 500 credit score’ advertisement, I knew. Here we go again. The only good thing is that buyers who have had to give up hope, will get it back. In the aftermath of a crash, or even during it, buyers have all of the power, and their demands are brutal. Sellers take a beating. Personally? I’m tired of this ridiculous greed-fueled, roller coaster market. And it makes me very sad to see young people blocked out…BLOCKED OUT…of the housing market. So while I see them take revenge after a crash, I understand.
If we think the crash of 2008 was horrible…which it was… we ‘ain’t seen nothing yet’ as they say. This time, the pain will be greater and spread thicker across America. And the recovery will take longer and will look awful if it happens.
Not painting a lovely picture, am I? Well maybe I’m wrong.
I’m Brenda Briggs with Premier Advantage Realty. Reach out and let’s talk.
Ok, it’s not usually a BURGER trying to gain unlawful entry into your home. It’s usually a burglar. But you looked, didn’t you? When you think about someone breaking in to your property, the property you own, you don’t usually think of title insurance, do you? Well…two things: 1) do you really own the property?; and 2) are you sure?
Did you know that there are two kinds of title insurance you can get when you buy a property? One type, the mandatory one, is to protect the LENDER. Not you. Interesting that you pay for it, but it’s FOR the lender. To protect their investment. the OTHER kind is not mandatory, but if you don’t have it, you may be at risk. How, you ask? Well let’s look at why title insurance is needed. It is needed to protect you from
Errors in public records
Unknown liens (e.g., unpaid taxes or contractor bills)
Fraud or forgery
Undisclosed heirs or ownership claims
Boundary or survey disputes
See, we often relax into thinking that title insurance is just to find out where the property lines are. But noooooo. I could add to that list ‘easements’. Your property might have a section which allows someone else free access to drive over it to access ANOTHER property. Or there could be a sewer easement under ‘your land’ that might need to be accessed one day and if you have built a structure there, guess what’s going to happen to that structure? Note that the entity having to access the sewer is entitled to take down that structure and they do not have to replace or pay for it.
Imagine sitting in the recliner in your pajamas, watching TV before you saunter off to bed in your beautiful home, and there’s a Ring doorbell chime. You go to the door and the guy says, I’m the legal heir to this property and I want you out. Oh yeah, it does happen. Why? Because there might be ‘undisclosed heirs’. It usually takes time for them to be told their great, great grandpa’s house was sold, but if they are out there, they could show up and ring that doorbell. OR, the sheriff shows up with an eviction notice, originated by, you guessed it, that undisclosed heir.
So while you are adding up your ‘up front costs’, please include TWO title insurance policies: One for the lender and one for you. If a dispute arises, title insurance pays for legal defense and covers any financial loss — potentially saving you thousands.
Once you buy a home, you want to live in it worry-free. Owner’s title insurance gives you confidence that your investment is protected. So if the BURGER shows up, you can just eat it and go to bed.
Give me a call. I’m a real estate agent and Realtor at Premier Advantage Realty. Find me at brendasellsnchomes@godaddysites.com, or email me, text me, send a carrier pigeon. I’m here!
Have you thought about what a tough time first time buyers are having these days? Buyers often have to come up with down payment dollars, closing costs, attorney fees and inspection costs, earnest money and sometimes even due diligence fees. As well, buyers often are responsible for hefty real estate agency fees as well. I don’t know about you, but I couldn’t have come anywhere near being able to do that for MY first home. Yes, times have changed, but a dollar is still a dollar.
There are efforts to help first time buyers. There are 100% financing options through USDA, but there are income limits. And there are loan packages with incentive dollars attached, often to be used for closing costs, but those often tie you in to the property for a period of time. I’m NOT a lender, but hopefully this will give you some ideas about what to ask a lender about. Don’t ever be afraid to ask a lender to help you figure out how to use the least money out of your limited funds (if they are limited), because this is what they do every day. And their advice is free.
And guys, make an appointment and go LOOK THEM IN THE EYE while you explore options to get you into your first home and out of the rental gerbil wheel. Remember your RENT can suddenly increase every year, but your mortgage payment will remain stable unless you opt for a balloon loan or an adjustable rate loan product. Balloon loans usually come with a low entry interest rate, as do adjustable rates, but it’s what happens AFTER that you must be aware of and prepare for.
Sellers, if your house isn’t moving and you’re considering a price drop, consider offering a rate buy-down instead. That can make a huge difference for buyers who are shopping payment, which many are.
I’ve said many times, my heart is always with first time buyers. I am always honored to help them with their very first home. If I can help you, I’m at thepremieradvantage.com, and search agents. I’m Brenda and I’d love to meet you.
brendabriggsrealtor 