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Seller’s Guide

Sell with confidence with pre-sale inspections

Why Pre-Sale Inspections Help Sell Your Home

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Performing pre-sale inspections on your home before you list it for sale can streamline the sales process and help you avoid any unexpected surprises. What most sellers don’t realize is the inspections of the home is the place where more sales fall apart than any other. The pre-sale or pre-listing home inspections will allow you to get a clear picture about the state of your house – including any problems that may derail a sale. You will have a chance to address major issues, and the information you gain from the inspection will be useful in pricing your home. Getting pre-sale inspections can be an important part of negotiating any offers and address any concerns a buyer may have after you are in contract to sell. for. By understanding the condition of your home, discovering any potential issues to sell, and getting most or all of the problems taken care of you increase the chances of having a smooth transaction from contract to close..

Why You Should Get Pre-Listing Home Inspections

Home inspections are generally performed on behalf of a buyer so that the party purchasing the home knows the true condition of the house. There are typically for a home; a wood pest inspection, a roof inspection, and a home inspection. As a seller, you are not required or provide these inspections. But there are several reasons why you should consider performing these pre-listing inspections;

1. Reduce the stress of selling your home.

By getting these home inspections before listing, you can make informed decisions and responses about any buyer concerns that arise during the sale of the home. Performing these inspections gives you essentially a condition report for your home. This is truly helpful in my opinion for selling your home. You now know if there are any issues and you are basically providing the potential buyer that “here is my home, there shouldn’t be any surprises after you make an offer.” This helps eliminate a lot of stress for both seller and buyer surrounding the sale and is especially helpful in any market to help sell the home. It is normal to worry that your home may have some hidden problems that you are not aware of. With these inspections, you will know if any such problems exist and have the opportunity to address them. More importantly you will be able to obtains the costs to address any issues for selling your home and not be held to a contract timeline to address if its something the Buyer wants addressed while in contract. With buyer inspections after you are in contract for sale, you will have to meet the requirements of the sales agreement for close of escrow which is usually based upon no repairs being factored in. Should any buyer requests for repairs arise from their inspections during the contract you will be rushed to respond to. As a Seller you will have to quickly determine the cost to repair, if the repair can be done in a timely matter, then respond to the buyers request, which might mean clearing the issue during escrow or provide a credit at the close of escrow. This for the agents involved is when the contract is most likely to fall out. You can avoid surprises and uncertainty for buyers who are in contract if you have pre sale home inspections available.

2. Help with pricing your home correctly.

The price you set for your home going on market is one of the most critical pieces of the sales process. Priced too high, you will keep buyers away. Priced too low and you will make less money than you could have. But how do you price something when you do not know what it consists of, or what state it is in? With these home inspections, you will have a much better understanding of any negative aspects of the house, and can price accordingly. You may also be able to price the home slightly higher if you discover that there really is nothing wrong or the sell the house is in excellent condition with no major issues since you addressed them prior to being on market.

3. Pre-Listing Home Inspections Can Speed Up The Sales Process

A buyer that knows you have already had the home inspected is going to feel a lot more comfortable making an offer. No one wants to buy a house that has a bunch of hidden issues. With the inspections in hand, you can demonstrate that the home is in great shape and worth the price you have set. And if there are issues, you can be upfront about them and make it clear that the reasonable price of the home reflects the knowledge of those issues. Furthermore, you can negotiate the issues before accepting an offer which can mitigate any buyer requests for repairs and costs for you to address.

4. Allow you to Make Repairs to Help Sell Your Home Faster.

One of the top home selling tips that I recommend to Sellers is to make sure repairs are made to major items in the home. It makes perfect sense because what buyer wants to deal with the problems of someone else when they don’t have to? Buyers complete the purchase more often based upon the condition and care the Seller’s have invested during ownership. Nice well maintained homes sell quickly, ask any agent.

5. Avoid or Minimize the Requests For Repairs.

With a pre-listing inspection, you can avoid such a situation where the carefully considered offer from the buyer may be thrown out the window if the buyer’s inspection discovers any serious issues with your home. Because you have a comprehensive knowledge of the condition of your home you can negotiate the home sold “as-is” in its present condition because the Buyer knows what he is buying before he made the offer. Nothing can be more upsetting than to see the deal you were relying on begin to crumble, and salvaging such a deal can lead to renegotiation that ultimately leave you on the losing end with costs you didn’t plan on to sell you home.

6. Sell Your Home With Confidence.

Buyers are in a difficult position, so it is normal for them to retain a healthy amount of suspicion when considering a home purchase. For most people buying a home is the most money they will ever spend on a single item. A buyer will need to calculate what he or she can afford for the purchase price, as well as how much money will be required to live in the home and keep it in good repair in the future. If the buyer has any thoughts that the home might have hidden problems, the offer he or she makes will reflect that. A pre-listing home inspection can help eliminate much of the doubt about the home. Knowing that the home has already been examined and that there are no problems allows the buyer to make a confident offer.

7. It makes the Sale of Your Home Easier and Less Stressful for Everyone.

When you agree to pre-sale/pre-listing inspections, it allows the sale of your house to be focused on the quality and condition and you have reports and inspections which justify the sales price of your home. Much like a CarFAx for a car, When the agents knows the exact state of the house, it is easier to compare it to other homes that have sold in the area, which leads to a price not subject to things found after. The inspection also makes it easier for the agent to find buyers, because buyers are attracted to homes that have already been inspected and have very little problems. And when it comes to negotiations, there are no unknowns. The price doesn’t need to be lowered very much, if at all, when it reflects that true state of the house.

Keep in mind that even though you have done a pre-sale inspection, the buyer will more than likely want to have their own inspection as well. You should insist on your listing agent attending the home inspection to not only understand what the buyers home inspector says but to make sure the buyer does not exaggerate any of the issues. Buyers are notorious for using a home inspection as a point of renegotiation. Oftentimes buyers will try to negotiate for things that are non issues. The example I always use is the home inspector saying there is 3-5 years left of the roof and the buyer saying a new roof is needed. Having your agent there to hear exactly what is said is important. You are paying your agent a lot of money – make sure they earn it!

Are There Any Disadvantages to a Pre-sale Home Inspection?

In my opinion there are really none. California real estate home sales require sellers to disclose all known problems with their homes. Home inspections removes that concern and liability as a seller. If you are short on money to make major repairs to your home, doing a pre-sale home inspections can allow you to sell the [rop[erty as is with np financial contribution by the Seller for any requested repairs from the buyer. If your thinking of selling your home to one of the iBuyers (Opendoor, Zillow Offers, OfferPad, etc) knowing the condition of your home could help significantly to determine if you should seriously consider the offer or go on market as an “as-is” sale for more money.

Why Not Make Your Sale Easier With Pre-Listing Home Inspections?

There is no requirement that you get a pre-listing home inspections, but there are certainly a lot of advantages to doing so. Every home sale involves working through home issues, costs, and repairs, but you can limit the negative aspects of the process by gathering all the accurate information you can about your home before you list it. With seller’s inspections, you avoid surprises, control the negotiations and make your sale of your home meet your financial needs.

My Offer is accepted

What Happens After Your Offer is Accepted

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You’ve found the right home at the right price. You submitted an offer, and it has been accepted. Now you are “under contract.” What happens next? Your agent that helped you win the home will manage the timeframe for performing the inspections and contingencies to help complete the purchase or advise you the cancel the purchase offer shpi;d there be any deal breakers. Here are the major items in the process from “contract to close” for a successful purchase.

1. Follow up with your lender if purchasing with a loan

Hopefully your lender already knows the offer has been accepted. However, you need to sync up with your lender and make sure the loan contingencies can be completed by the contract timeframe (typically 21 days after an accepted offer for the loan contingency in California). A conversation with your lender should get the ball rolling and make sure any documentation needed for approving your loan is being worked on. The home appraisal is one of the pieces the bank will need for the loan approval. A home appraisal helps determine how much your home is worth. The appraiser is typically chosen by your lender and scheduled by the lender.

2. Get the earnest money to the escrow company, review disclosures/reports

Your agent should be making sure the “earnest money” or deposit is given to the escrow company within 3 days in California after the offer is accepted. Your agent should also be working with the listing agent to get all the disclosures and reports available for the property. The disclosures and reports are key to helping you determine the condition of the home you are buying and useful for helping you further investigate any issues with your future home.

3. Schedule the home inspection

Inspections are highly recommended to help find any underlying issues that may affect the value of your home and how much work it needs. Even if you have a pre sales inspections including the home inspection, you should make time to review the report on the property with your agent.

4. Get Quotes and purchase home insurance

You are required by law to get home insurance when you purchase a home. Escrow will need to have proof of insurance prior to the close of escrow. Don’t let this be a last minute item, if you do it now you will be able to shop around to find the best deals.

Pro Tip: Bundling your home, auto, and other insurance can save you money.

5. Follow up/purchase a home warranty

Home warranties help protect you if large ticket items—like appliances—fail after you have bought the home. If you purchase a home warranty plan before closing, it will be included in your closing costs. Sometimes, the seller will purchase a home warranty plan for the buyer.

6. Completing the purchase

At this point, you will be roughly 14-21 days since you accepted the offer. You should have: be approved for you loan, have a home appraisal, completed any inspections, reviewed disclosures and reports, requested any repairs, and should be ready to either complete the purchase or cancel the contract. Let’s assume everything is a go and you are ready to complete the purchase. You should be working on your move to the new home. In parallel to your actual move, the real estate professionals will be working hard to get the purchase closed. You typically will see the following happening: The seller will usually ask for a release of all contingencies, and your lender will get the loan documents into escrow for signing. The seller will be signing documents to transfer the home to you. You will be signing all documents you need to transfer and purchase the home to you, bring the rest of funds and depositing into escrow that are needed to close. Once everything is done, correct and reviewed by the Escrow company for seller and buyer, the house will released for recording and transferred to you as the new owner by the escrow and title company

7. After closing

You should be transferring utilities as soon as possible into your name for the new home. Security is a big concern so you should be rekeying the home and looking ar home security and automation options as well. This is also a good time to find contractors for any work you may need or want. Hiring a maid service, pool service, and lawn service is also done after you move.

Pro Tip: Ask the Seller who they use to work on the house while they owned it. It’s often a good idea to retain the home pros that worked on the home and learn more about how and what maintenance is being done. The listing agent is often a good resource to ask if you are looking for recommendations as well.

Hot market selling for more

How to Sell Your Home

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The Seller’s Market Continues But There Are Fewer Buyers…

Updated: October 15, 2023

The market is continuing to be good for sellers; however, with the current high mortgage rates and home prices there are fewer buyers right now. Now more than ever, every buyer marketing matters when you sell your home.

What My Buyers Are Looking For When Shopping For Home

Here is the feedback I get from my home buyers and perspective sellers who will be buying when they are shopping for home:

  • Buyers want to look at your home online first.
  • Buyers want disclosures, information, and reports even if they are not local.
  • Buyers want a “nice” home that is clean and well maintained.
  • Buyer’s want time to review and complete their investigations if the Seller has not completed any disclosures or pre-sale inspections before the sale. 
  • Buyers are less committed with the current economy.
  • Sellers have not priced their house to the cost of financing and the total cost of ownership for home buyers. 

Here Are My Tips and Advice For Home Sellers

Sell Quickly and for More Tip #1 – Buyers Want a “Nice” Home

All buyers in any market want a nice home that is “move in ready.”  Buyers are paying way more than they ever thought they would for their dream home. At a minimum buyers would like to buying a home that has been well cared for and with no major issues to address after the sale. Sellers almost always see more money and return on investment for new carpet and fresh paint, as well as making sure everything is in working order in the home. 

If you won’t buy the home you live in because it does look well cared for, most buyers will feel the same way after touring your home. Well cared for properties always sell quickly and for more money in any market.

Sell quickly and For More Tip #2 – Buyers want to know “everything” about your home

The cost of hoem ownership is a big challenge right now for home buyers. Buyers want to understand the condition and care of the home by the seller. Any information the Seller can provide will help them sell the home quickly. This is not difficult task to do but this information is often missing and not available to potential buyers. I strive to provide a complete information and disclosure package for every potential buyer. Providing a platform for Buyers to find more information about your home really helps to sell your home quickly in any market including this market.

Sell quickly and for more Tip #3 – Property Updates and Features Sell For More

If your house is over 10 years old, updates and remodelling will bring much needed value and help your home sell quickly and to the best buyer. The older the home the more updates and remodelling will be a consideration for every buyer. A newer kitchen, update bathrooms, new paint, new flooring, and improving energy efficiency all contribute to selling your home faster.

Besides updates and improvements to the home, features about the property matter too for selling quickly and adding more value to the sale. Buyers are looking for solar systems , larger yards with landscaping, additional parking for RVs/storage, backyard amenities including a pool, an outdoor kitchen and/or covered patio.

If you currently own a home in an area that is served by Pacific Gas and Electric a home with with solar owned or leased is a feature most buyers want.

SELL quickly and for more TIP #4 – PRICE YOUR HOME TO SELL THE FIRST WEEKEND.

The buyers are searching and finding a home online first, the most committed buyers are looking at the newest inventory. Your house is only just listed once.  The price will attracted the most buyers. In this market within 20 days the best and most committed buyer will have moved on to the next new listings. The price is critical but so is the complete marketing and sharing of the home and property features, amenities, updates, remodeling and terms of sale bring the best and highest offer to the seller. Buyers today know the market and are price savvy. A home not properly marketed and priced the first weekend isn’t getting multiple offers and the lack of interest for your home will result in less favorable sales price or terms to sell your home as time on market increases. Ultimately the seller sets the price for the home. However I cannot strongly recommend enough that sellers get a price from at least three real estate agents that will sell the home within 20 days its on market. Then you can understand how to best market your home to work for the price you want it to sell for

Sell Quickly and for More Tip #5 – Be Flexible and willing to help

Home buyers are on the edge financially to buy a home from the financing to the total cost of ownership and any future repairs the home and property may require. Being flexible and willing to work out any issues during the sale will in the long run be in your best interest to do so. Also, If you have any conditions for selling (rentbacks or replacement property needed) be upfront in the marketing of the sale of your home. 

Final Thoughts

I’ve made market updates on youtube showing the current buyer activity and the results are conclusive:

  • Your home marketing online has to be comprehensive and intrigue the buyer to see the home in person.
  • Your home needs to be in contract and pending sale within 20 days after listing it.
  • Be prepared to make accomodations and financial concessions to sell your home.
I would welcome the opportunity to discuss selling your home. Please contact me and lets see if selling makes sense for your current situation,
Contact Me

Real Estate Terminology – Essential Terms You Need to Know

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Real estate is full of jargon (“DOM”, “HOA”, “pre-qual”, etc), and it can add layers of uncertainty when you are buying or selling a home. Use this resource to help you learn the vocabulary. You can probably stump your agent with some of these. If you have any questions on real estate, contact me.

 

          7/23 and 5/25 Mortgages: Mortgages with a one-time rate adjustment after seven years and five years, respectively.

3/1, 5/1, 7/1 and 10/1 ARMs: Adjustable-rate mortgages in which the rate is fixed for three-year, five-year, seven-year and 10-year periods, respectively, but may adjust annually after that.

 

A
Acceleration: The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgager (borrower), or by using the right vested in the due-on-sale clause.
Adjustable-Rate Mortgage (ARM): A loan on which the monthly payments will increase or decrease over time, based on changes in the ARM?s interest rate index. ARM payments typically are adjusted every six months or once a year. Common indices to which ARMs are tied include the 11th District Cost of Funds, one-year T-note and six-month T-bill.
Adjusted Basis: The cost of a property plus the value of any capital expenditure for improvements to the property minus any depreciation taken.
Adjustment Date: The date that the interest rate changes on an adjustable-rate mortgage.
Adjustment Interval: The interval between changes on an adjustable-rate mortgage in the interest rate and/or monthly payment; typically one, three or five years depending on the index.
Adjustment Period: The period elapsing between adjustment dates for an adjustable-rate mortgage.
Affordability Analysis: An analysis of a buyer?s ability to afford the purchase of a home. Reviews income, liabilities and available funds. Considers the type of mortgage you plan to use, the area where you want to purchase a home and the probable closing costs.
Amortization: The gradual repayment of a mortgage through monthly (e.g. installment) payments. In the early years of a mortgage, most of the monthly payment goes toward interest. Later in the mortgage, more of the payment goes toward reducing the loan?s principal balance.
Amortization Term: The length of time required to amortize the mortgage loan expressed as a number of months. For example, 360 months is the amortization term for a 30-year fixed-rate mortgage.
Annual Percentage Rate (APR): The annual cost of a mortgage, including interest, loan fees and other costs, stated as a percentage of the loan amount.
Appraisal/Appraised Value: An opinion of the market value of a home expressed by a real estate appraiser.
Arbitration: The term used to describe a form of dispute resolution that occurs outside of the court system, usually by private agreement between parties. Basically, arbitration is a dispute resolution system where the parties submit arguments and evidence to a neutral person, known as the arbitrator, who then renders a decision, called an award, based upon the evidence and arguments presented.
Assessment: A local tax levied against a property for a specific community purpose, such as a sewer or streetlights.
Assignment: The transfer of a contractual interest or obligation from one person to another such as, but not limited to, a transfer of a mortgage obligation. Assignment is a legal term used to transfer interest from one contract to another.
Assumable Mortgage: An assumable mortgage can be transferred from the seller to the new buyer. Generally requires a credit review of the new borrower and lenders may charge a fee for the assumption. If a mortgage contains a due-on-sale clause, a new buyer may not assume the mortgage.
Assumption: The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money by acquiring an existing mortgage debt, instead of obtaining a new mortgage where closing costs and market-rate interest charges will apply.
Assumption Fee: The fee paid to a lender (usually by the purchaser of real property) when an assumption takes place.
B
Balloon Mortgage: A loan that is amortized for a longer period than the term of the loan. Usually this refers to a 30-year amortization and a five-year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due.
Balloon Payment: The final lump sum paid at the maturity date of a balloon mortgage.
Biweekly Payment Mortgage: A plan to make mortgage payments every two weeks (instead of the standard monthly payment schedule). The 26 (or 27) biweekly payments are each equal to one-half of the monthly payment required if the loan were a standard 30-year fixed-rate mortgage. The result for the borrower is a substantial saving in interest.
Blanket Mortgage: A mortgage covering at least two pieces of real estate as security for the same mortgage.
Borrower(Mortgager): One who applies for and receives a loan in the form of a mortgage with the intention of repaying the loan in full.
Bridge Loan: A second trust for which the borrower?s present home is collateral, allowing the proceeds to be used to close on a new house before the present home is sold. Also known as a “swing loan.”
Broker: An individual who assists with arranging funding or negotiating contracts for a client but who does not loan the money himself or herself. Brokers usually charge a fee or receive a commission for their services.
Buy-down: When the lender and/or the homebuilder subsidize a mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.
C
Caps: Provisions of an adjustable-rate mortgage limiting how much the interest rate can change at each adjustment period (e.g., every six months, once a year) or over the life of the loan (rate cap). A payment cap limits how much the payment due on the loan can increase or decrease.
Cash Flow: The amount of cash derived over a certain period of time from an income-producing property. The cash flow should be large enough to pay the expenses of the income-producing property (mortgage payment, maintenance, utilities, etc.).
Certificate of Eligibility: The document given to qualified veterans entitling them to VA-guaranteed loans for homes, businesses and mobile homes. Certificates of eligibility may be obtained by sending form DD-214 (Separation Paper) to the local Veterans Affairs office with VA form 1880 (request for Certificate of Eligibility).
Certificate of Reasonable Value(CRV): An appraisal issued by Veterans Affairs showing the property?s current market value.
Certificate of Veteran Status: The document given to veterans or reservists who have served 90 days of continuous active duty (including training time). It may be obtained by sending DD 214 to the local Veterans Affairs office with form 26-8261a (request for certificate of veteran status; this document enables veterans to obtain lower down payments on certain FHA-insured loans).
Change Frequency: The frequency (in months) of payment and/or interest rate changes on an adjustable-rate mortgage.
Closing: The meeting at which a home sale is finalized. The buyer signs the mortgage, pays closing costs and receives title to the home. The seller pays closing costs and receives the net proceeds from the home sale.
Closing Costs: Expenses in addition to the price of the home incurred by buyers and sellers when a home is sold. Common closing costs include escrow fees, title insurance fees, document recording fees and real estate commissions.
COFI: An adjustable-rate mortgage with a rate that adjusts based on a cost-of-funds index, often the 11th District Cost of Funds.
Construction Loan: A short-term interim loan to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he or she progresses.
Consumer Reporting Agency (or Bureau): An organization that handles the preparation of reports used by lenders to determine a potential borrower?s credit history. The agency gets data for these reports from a credit repository and other sources.
Contingency: A condition that must be fulfilled before a contract is binding.
Contract Sale or Deed: A contract between purchaser and seller of real estate to convey title after certain conditions have been met. It is a form of installment sale.
Conventional Mortgage: A loan not guaranteed, insured or made by the federal or state government.
Conversion Clause: A provision in an adjustable-rate mortgage allowing the loan to be converted to a fixed-rate mortgage at some point during the term. Usually conversion is allowed at the end of the first adjustment period. The conversion feature may cost extra.
Counteroffer: An offer in response to an original offer.
Credit Report: A report documenting the credit history and current status of a borrower’s credit standing.
Credit Risk Score: A credit risk score is a statistical summary of the information contained in a consumer’s credit report. The most well-known type of credit risk score is the Fair, Isaac or FICO score. This form of credit scoring is a mathematical summary calculation that assigns numerical values to various pieces of information in the credit report. The overall credit risk score is highly relative in the credit underwriting process for a mortgage loan.
D
Default: Failure to meet legal obligations in a contract, specifically, failure to make the monthly payments on a mortgage.
Deferred Interest: When a mortgage is written with a monthly payment that is less than required to satisfy the note rate, the unpaid interest is deferred by adding it to the loan balance.
Delinquency: Failure to make payments on time. This can lead to foreclosure.
Department of Veterans Affairs(VA): An independent agency of the federal government that guarantees long-term, low- or no-down payment mortgages to eligible veterans.
Debt-To-Income (DTI) Ratio:The ratio of monthly debt payments to monthly gross income. Lenders use a housing DTI ratio (house payment divided by monthly income) and a total DTI ratio (total debt payments including the house payment divided by monthly income) to determine whether a borrower?s income qualifies him or her for a mortgage.
Deed: A legal document conveying ownership of property.
Downpayment: The portion of the home’s purchase price the buyer pays in cash.
Due-on-Sale-Clause: A provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home.
E
Earnest Money: The deposit given by a buyer to a seller to show that the buyer is serious about purchasing the home. Earnest money usually is refundable to homebuyers in the event a contingency of the sales contract cannot be met.
Entitlement: The Veterans Affairs home loan benefit (i.e., entitlement for a VA-guaranteed home loan). This is also known as eligibility.
Equal Credit Opportunity Act(ECOA): A federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.
Equity: The difference between a home’s value and the mortgage amount owed on the home.
Escrow: The holding of documents and money by a neutral third party prior to closing.
Escrow Disbursements: The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance and other property expenses as they become due.
Escrow Payment: The part of a mortgager’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due.
Exclusive Right to Sell Listing: A contract giving an agent the exclusive right to market a property under a certain time frame.
Exclusive Agency Listing: A contract giving the broker the right to market an owner’s property for a certain period of time, but also allowing the owner to sell the property during that period without paying a commission.
F
Farmers Home Administration(FmHA): Provides financing to farmers and other qualified borrowers who are unable to obtain loans elsewhere.
Federal Housing Administration(FHA): A division of the Department of Housing and Urban Development whose main activity is insuring residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages.
Federal National Mortgage Association (Fannie Mae): A privately owned corporation created by Congress that purchases and sells conventional residential mortgages as well as those insured by Federal Housing Administration or guaranteed by Veterans Affairs. This institution, which provides funds for one in seven mortgages, makes mortgage money more available and more affordable. Fannie Mae and Freddie Mac are the key secondary mortgage-market agencies.
FHA Loan: A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately priced homes almost anywhere in the country.
FHA Mortgage Insurance: Requires a fee (up to 2.25 percent of the loan amount) paid at closing to insure the loan with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5 percent of the current loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid.
Firm Commitment: A promise by Federal Housing Administration to insure a mortgage loan for a specified property and borrower. A promise from a lender to make a mortgage loan.
First Mortgage: The primary lien against a property.
Fixed Installment: The monthly payment due on a mortgage loan, including payment of both principal and interest.
Fixed-Rate Mortgage (FRM): A loan on which the interest rate and monthly payment do not change.
For Sale By Owner (FSBO): The owner sells his or her home without a REALTOR® to avoid paying a sales commission.
Foreclosure: A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has not met the terms of the mortgage. Also known as a repossession of property.
Federal Home Loan Mortgage Corporation (Freddie Mac): A quasi-governmental, privately owned agency that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers. Fannie Mae and Freddie Mac are the key secondary mortgage-market agencies
Fully Amortized ARM: An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.
G
Graduated-Payment Mortgage(GPM): A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.
Growing-Equity Mortgage (GEM): A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.
Guaranty: A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
Guarantee Mortgage: A mortgage that is guaranteed by a third party.
H
Hazard Insurance: A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.
Homeowner’s Warranty: A policy that covers certain repairs (e.g. plumbing or heating) of a newly purchased home for a certain period of time.
Housing Expenses-to-Income Ratio: The ratio, expressed as a percentage, which results when a borrower?s housing expenses are divided by his or her gross monthly income.
HUD-1 statement: A document that provides an itemized listing of the funds that are payable at closing. Items that appear on the statement include real estate commissions, loan fees, points and initial escrow amounts. A separate number within a standardized numbering system represents each item on the statement. The totals at the bottom of the HUD-1 statement define the seller’s net proceeds and the buyer?s net payment at closing.
I
Impound Account: An account established by a lender to collect a borrower?s property tax and insurance payments. Impound accounts are normally required on mortgages with down payments of 10 percent or less.
Index: A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one-, three- and five-year U.S. Treasury security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average costs-of-funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.
Indexed rate: The sum of the published index plus the margin. For example if the index were 9 percent and the margin 2.75 percent, the indexed rate would be 11.75 percent. Often, lenders charge less than the indexed rate the first year of an adjustable-rate mortgage.
Initial Interest Rate: This refers to the original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). It?s also known as “start rate” or “teaser.”
Installment: The regular periodic payment that a borrower agrees to make to a lender.
Insured Mortgage: A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (MI).
Interest: The fee charged for borrowing money.
Interest Accrual Rate: The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments.
Interest Rate Buydown Plan: An arrangement that allows the property seller to deposit money to an account. That money is then released each month to reduce the mortgagor?s monthly payments during the early years of a mortgage.
Interest Rate Ceiling: For an adjustable-rate mortgage, the maximum interest rate as specified in the mortgage note.
Interest Rate Floor: For an adjustable-rate mortgage, the minimum interest rate as specified in the mortgage note.
Interim Financing: A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.
Investor: A money source for a lender.
L
Lease-Purchase Mortgage Loan: An alternative financing option that allows low- and moderate-income homebuyers to lease a home with an option to buy. Each month’s rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that accumulates in a savings account for a downpayment.
Liabilities: A person’s financial obligations. Liabilities include long-term and short-term debt.
Lien: A claim upon a piece of property for the payment or satisfaction of a debt or obligation.
Lifetime Payment Cap: For an adjustable-rate mortgage, a limit on the amount that payments can increase or decrease over the life of the mortgage.
Lifetime Rate Cap: For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease over the life of the loan.
Listing: A property placed on the market by a listing agent.
Loan: A sum of borrowed money (principal) that is generally repaid with interest.
Loan-to-Value (LTV) Ratio: The ratio of the amount of money owed on a home to the home’s value. The LTV ratio for a $100,000 home financed with a $90,000 mortgage would be 90 percent, for example.
Lock: Lender?s guarantee that the mortgage rate quoted will be good for a specific number of days from day of application.
M
Margin: The amount a lender adds to the index on an adjustable-rate mortgage to establish the adjusted interest rate.
Market Value: The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.
Maturity: The date on which the principal balance of a loan becomes due and payable.
Mediation: A process used to resolve disputes. In mediation, the parties to the dispute are assisted by a neutral third person called a mediator. The mediator is not empowered to impose a settlement or decision on the parties; rather, the mediator facilitates discussions and negotiation between the parties with the goal of assisting the parties in reaching a mutually acceptable settlement of their dispute.
MIP (Mortgage Insurance Premium): Insurance from FHA to the lender against incurring a loss on account of the borrower?s default.
Monthly Fixed Installment: That portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortized, the monthly fixed installment does not include any amount for principal reduction and doesn’t cover all of the interest. The loan balance therefore increases instead of decreasing.
Mortgage: A legal document that pledges a property to the lender as security for payment of a debt.
Mortgage Banker: A company that originates mortgages for sale into the secondary mortgage market (e.g., Fannie Mae and Freddie Mac).
Mortgage Broker: An individual or company that arranges mortgage financing between a borrower and a lender.
Mortgagee: The lender.
Mortgage Insurance: Money paid to insure the mortgage when the down payment is less than 20 percent.
Mortgage Life Insurance: A type of term life insurance specifying that in the event that the borrower dies while the policy is in force, the debt is automatically paid by insurance proceeds.
Mortgage Interest Deduction: The ability of mortgage borrowers to deduct the interest paid on a home loan for purposes of federal and state income taxes.
Mortgagee: The borrower or homeowner.
Multiple Listings Service (MLS): The service combines the listings for all available homes in an area, except for For-Sale-By-Owner properties, in one directory or database.
N
Negative Amortization: Occurs when monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of negative amortization is that the homebuyer ends up owing more than the original amount of the loan.
Net Effective Income: The borrower’s gross income minus federal income tax.
Net Listing: A listing agreement in which the broker’s commission consists of the amount above a net price set by the owner. If the net price is not met, a commission is not earned.
Non-assumption Clause: A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender.
Note: A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
O
One-year Adjustable: Mortgage whose annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin chosen by the lender.
Open Listing: A property marketed by more than one agent at a time.
Origination Fee: A fee charged by a lender for making a mortgage.
Owner Financing: A property purchase transaction in which the party selling the property provides all or part of the financing.
P
Payment Change Date: The date when a new monthly payment amount takes effect on an adjustable-rate mortgage or a graduated-payment mortgage. Generally, the payment change date occurs in the month immediately after the adjustment date.
Periodic Payment Cap: A limit on the amount that payments can increase or decrease during any one adjustment period.
Periodic Rate Cap: A limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.
Permanent Loan: A long-term mortgage, usually 10 years or more. Also called an “end loan.”
PITI: Principal, interest, taxes and insurance — the primary components of a monthly mortgage payment.
Pledged-account Mortgage(PAM): Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.
Points: One point equals 1 percent of the mortgage amount. Points are charged by lenders to increase the lender?s return on the mortgage. Typically, lenders may charge anywhere from zero to two points. Loan points are tax-deductible.
Power of Attorney: A legal document authorizing one person to act on behalf of another.
Pre-approval: The process of determining how much money you will be eligible to borrow before you apply for a loan.
Prepaid Expenses: Necessary to create an escrow account or to adjust the seller’s existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
Prepayment: A privilege in a mortgage permitting the borrower to make payments in advance of their due date.
Prepayment Penalty: Money charged for an early repayment of debt. Prepayment penalties are allowed in some form (but not necessarily imposed) in many states.
Primary Mortgage Market: Lenders, such as savings-and-loan associations, commercial banks and mortgage companies, who make mortgage loans directly to borrowers. These lenders sometimes sell their mortgages to the secondary mortgage markets.
Principal: The loan amount borrowed or still owed.
Private Mortgage Insurance (PMI): Insurance issued by private insurers that protects lenders against a loss if a borrower defaults on a mortgage with a low down payment (e.g., less than 20 percent).
Q
Qualifying Ratios: Calculations used to determine if a borrower can qualify for a mortgage. They consist of two separate calculations: a housing expense as a percent of income ratio and total debt obligations as a percent of income ratio.
R
Rate Lock: A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate and lender costs for a specified period of time.
Real Estate Settlement Procedures Act (RESPA): A consumer protection law that requires lenders to give borrowers advance notice of closing costs. RESPA is a federal law that, among other things, allows consumers to review information on known or estimated settlement cost after application and prior to or at settlement. The law requires lenders to furnish the information after application only.
REALTOR®: A real estate broker or agent who, as a member of a local association of REALTORS®, a state association of REALTORS® and the NATIONAL ASSOCIATION OF REALTORS® (link to www.onerealtorplace.com), adheres to high standards of professionalism and a strict code of ethics.
Recission: The cancellation of a contract by putting all parties back to the position before they entered the contract. In some mortgage financing situations involving equity in the home as security, the law gives the homeowner three days to cancel a contract.
Recording Fees: Money paid to the lender for recording a home sale with the local authorities, thereby making it part of the public records.
Refinance: Obtaining a new mortgage loan on a property already owned. Often to replace existing loans on the property.
Renegotiable Rate Mortgage: A loan in which the interest rate is adjusted periodically.
Reverse Annuity Mortgage(RAM): A form of mortgage in which the lender makes periodic payments to the borrower using the borrower?s equity in the home as collateral for and repayment of the loan.
Revolving Liability: A credit arrangement, such as a credit card, that allows a customer to borrow against a pre-approved line of credit when purchasing goods and services.
S
Satisfaction of Mortgage: The document issued by the mortgagee when the mortgage loan is paid in full. Also called a “release of mortgage.”
Second Mortgage: A mortgage made subsequent to another mortgage and subordinate to the first one.
Secondary Mortgage Market: The place where primary mortgage lenders sell the mortgages they make to obtain more funds to originate more new loans. It provides liquidity for the lenders.
Security: The property that will be pledged as collateral for a loan.
Seller Carry-back: An agreement in which the seller provides financing, often in combination with an assumable mortgage.
Seller Financing: A financing agreement in which a seller provides part (or all) of the financing needed by a buyer to purchase the seller?s home.
Servicer: An organization that collects principal and interest payments from borrowers and manages borrowers? escrow accounts. The servicer often services mortgages that have been purchased by an investor in the secondary mortgage market.
Servicing: All the steps and operations a lender performs to keep a loan in good standing, such as collection of payments, payment of taxes, insurance, property inspections and the like.
Shared-Appreciation Mortgage(SAM): A mortgage in which a borrower receives a below-market interest rate in return for which the lender (or another investor such as a family member or other partner) receives a portion of the future appreciation in the value of the property. May also apply to a mortgage where the borrower shares the monthly principal and interest payments with another party in exchange for part of the appreciation.
Simple Interest: Interest that is computed only on the principle balance.
Standard Payment Calculation: The method used to determine the monthly payment required to repay the remaining balance of a mortgage in substantially equal installments over the remaining term of the mortgage at the current interest rate.
Step-Rate Mortgage: A mortgage that allows for the interest rate to increase according to a specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the specified period, the rate and payments will remain constant for the remainder of the loan.
Survey: A measurement of land, prepared by a registered land surveyor, showing the location of the land with reference to known points, its dimensions, and the location and dimensions of any buildings.
Sweat Equity: Equity created by a purchaser performing work on a property being purchased.
T
Third-Party Origination: When a lender uses another party to completely or partially originate, process, underwrite, close, fund or package the mortgages it plans to deliver to the secondary mortgage market.
Title: A legal concept relating to ownership of property.
Title Insurance: Insurance to protect the buyer and lender against losses arising from disputes over the ownership of a property.
Title Search: An examination of public records to determine the legal ownership of property. Usually the records are recorded with the County Recorder’s office. The search is usually performed by a title company using computerized records.
Total Expense Ratio: Total obligations as a percentage of gross monthly income including monthly housing expenses plus other monthly debts.
Truth In Lending Act: A federal law requiring disclosure of the annual percentage rate to homebuyers shortly after they apply for the loan. Also known as Regulation Z.
Two-Step Mortgage: A mortgage in which the borrower receives a below-market interest rate for a specified number of years (most often seven or 10), and then receives a new interest rate adjusted (within certain limits) to market conditions at that time. The lender sometimes has the option to call the loan due within 30 days notice at the end of seven or 10 years.
U
Underwriting: The process of evaluating a loan application to determine if it meets the lender?s standards.
Usury: Interest charged in excess of the legal rate established by law.
V
VA Loan: A long-term, low- or no-down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.
VA Mortgage Funding Fee: A premium of up to 1.5 percent (depending on the size of the down payment) paid on a VA-backed loan. On a $75,000 fixed-rate mortgage with no down payment, this would amount to $1,406 either paid at closing or added to the amount financed.
Verification of Deposit(VOD): A document signed by the borrower’s financial institution verifying the status and balance of that person?s financial accounts.
W
Warehouse Fee: Many mortgage firms must borrow funds on a short-term basis in order to originate loans that are to be sold later in the secondary mortgage market or to investors. When the prime rate of interest is higher on short-term loans than on mortgage loans, the mortgage firm has an economic loss that is offset by charging a warehouse fee.
Wraparound Mortgage: Results when an existing assumable loan is combined with a new loan, resulting in an interest rate somewhere between the old rate and the current market rate. The payments are made to a second lender or the previous homeowner, who then forwards the payments to the first lender after taking the additional amount off the top.

 

Tips on getting ready to sell your house

How To Get Ready To Sell Your House

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10 Things to Do Before Selling Your Home

Are you eager to get your house on the market? To create an MLS entry, hold an open house, and potentially get some buyers on the line?

Not so fast.

When it comes to selling your house, there’s some groundwork that needs to be laid. It’s only by attending to the fundamentals that you can ensure your home is truly listing-ready… and maximize the odds of selling quickly, for full asking price (or at least close enough).

So what are these preliminary steps? What’s the best way to sell a house? Here are some of our tips.

Steps to Take Before Selling Your House

  1. Decide how you’re going to sell your home. There’s more than one way to put a house on the market. Are you going to work with an agent? Or maybe you want to sell your house yourself, going the FSBO route? All of these approaches have their pros and cons.
  2. Appraise your curb appeal. In real estate sales, first impressions are everything… and the best way to sell a house is to make sure it looks perfect. That means attending to your landscaping, pressure washing your front walkway, repainting the exterior, installing a new front door… whatever is necessary to make sure your home looks appealing at first blush.
  3. Get rid of your clutter. You’re not selling stuff; you’re selling As such, when it comes to how to sell your house quickly, your best bet is to get rid of as much clutter as you can. You may want to consider renting an external storage unit while your home is on the market.
  4. Take down some of your personal decor. No, you don’t want your home to look totally empty, but you do want to get rid of some of your personal photos and knick-knacks. Remember, you need buyers to be able to see themselves living in the space. That can be hard when, everywhere they look, they see reminders of your
  5. Go neutral. You may love the purple wall in your living room, or the lime green windowsill in the master bedroom. Chances are, your buyers aren’t going to like such bold color schemes. Whenever you can, repaint your interiors to be as neutral as can be.
  6. Make small repairs. You may not be a licensed handyman, but you can definitely walk through your house, take note of small issues, and fix as many of them as possible. Loose faucets? Doors that aren’t quite aligned right? A few stray nails sticking out of the back deck? Buyers (and home inspectors) will notice these things, so make repairs when you can.
  7. Add plant life. You don’t need your home to seem like a greenhouse, but a little greenery can add color, freshen the air, and make the whole place feel more welcoming. Some pretty, seasonally-appropriately plant life on the front stoop can be especially beneficial.
  8. Do a deep cleaning. If you’re wondering how to sell your house quickly, well, you can’t go wrong by making it squeaky clean! You may even want to bring in a professional cleaning crew to make sure the home is spotless.
  9. Think about your staging. Staging is the act of decorating your home, and arranging furniture, in a way that emphasizes your space and makes the whole place look as accommodating as possible. If you work with an experienced real estate agent, they may help you with the staging. If not, you can consider hiring a professional staging service.
  10. Pick the right price. The most important step in any home listing is the pricing. Go too high and you’ll turn buyers away. Go too low and you’ll leave money on the table. Make sure you work with your agent and/or check comps, as well as weigh other market factors, and come up with a price that is competitive and fair.

Learn what to do if you need to sell your house quickly

Do You Need to Sell Your Home Right Now?

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When it comes to selling your home, timing really can be everything. Whether you have a deadline related to a family matter, job change or other milestones, sometimes, the sooner the better is driving when selling your house. Here are a few things to bear in mind as you to speed up the time of selling your home right now.

Price Competitively

Of course, as a seller, you want top dollar for your property. But from the buyer’s perspective, who are aggressively looking to buy they know a good value when they see one. If a quick sale is what you’re after, get the data on home that sold in your neighborhood area in 30 days or less. There are price points and sales that are supported by home where you live. The right real estate agent will help you determine the sweet spot that gets buyers through the door – and depending upon the market, might inspire an offer. You should not have to offer a “super low price” to sell quickly unless you have a compelling strategy for a “bidding war.” My advice is set a price that will get at least two offers.

Make Your Home Shine

Buyers want a pretty home that looks well kept and maintained. Improving curb appeal and decluttering your home buyer interest that will ultimately lead to a sale. If you have time to sell consider hiring landscapers, professional painters, and cleaners, so you can get the place to tip-top shape and let your listing shine from the first showing. (You might want to read Clean Up Your Act: Get Your Home Ready to Sell or The Home Seller’s Guide to Decluttering Your House.)

Have Disclosures and Reports Ready

Any good listing features the home’s strong points up front, without creating unrealistic expectations that may lead to false starts. Once you have an interested buyer or two, their main concern will be any underlying problems the property may have, such as HVAC issues or spent roofing. Having potential buyers go through the process of hiring their own home inspector, only to discover deal breakers, is a waste of everyone’s time. Consider hiring your own home inspector to do a check on your house so you can either resolve outstanding issues or bring them forth to your buyer. The sooner you as the seller can get on the same page as your buyer, the better your chances of making a smooth, efficient sale.

Sale-derailing deal breakers are a surefire way to slow down any offers or completing the sale. Being upfront with Buyers about any underlying problems the property may have creates trust that in my opinion will allow minor issues to not become deal breakers.

Let Your Friends Know You Are Selling

Posting on social media is one of a few great marketing strategies for selling your home. It can be a good way to spread the word to your personal network and beyond. Sometimes, a buyer could be closer than you think in the form of a friend, neighbor or relative, or someone in their social spheres. The more eyes on your listing, the better. (See also Accelerating Your Home Sale with Social Media.)

The Right Time To Sell

With the current market where inventory of homes is at a premium, today is a good time to sell. When the market changes (inventory  of homes for sale is at least 3 months) putting your home on the market in spring or before June is almost always preferable to starting any other time of the year. If you can wait until the first six months of year, you’re more likely to get more showings and move through the sale more quickly than when there are fewer buyers. If you can’t wait, there may be other options you should discuss or consider.

The time is right, price it right and do it up right, and you should be on your way to the speedy sale you’re after. Remember to set your expectations with careful research and decisions, approach the process with the goal to get you to where you want to live next.

Planning to rent? Tips on renting in the new normal

Renting After Selling? Things To Consider

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Renting After Selling? Things to consider and realities for renting

When I talk to clients selling, renting is typically thought of as a viable option. “If nothing else, I can always rent,” I often hear many sellers say this, only to be sticker-shocked and frustrated when the available choices are underwhelming and cost more than what they wanted to spend. 

Let’s take a look at the other challenges about renting a home in today’s market.  Here are things you need to consider when choosing renting as a temporary solution for housing once you sell.

Renting costs are high

It’s going to be more expensive than you think.  When home prices are high so are the price for rentals as well. The demand for housing extends for rentals as well. My advice is for go to Zillow.com and look at the current rental costs.

Find A Rental May Take Time

Finding a rental property may not be as easy as you think. Not everything you see online is really available. This is especially true with rental websites, where you’ll likely see something marked as available — when, in fact, it was rented out several weeks ago.

Then when you find something it may be too late to rent it.  That’s because applications may have been submitted, and the owners might be in the process of evaluating them. Or maybe they’re waiting on a renter to submit a deposit.

Move-In or Turnkey Might Not Be An Option

Do not expect move-in ready.  “It’s a rental.” Most rentals are not in the condition most of us want or expect. Many rentals are really in need of new flooring, paint, appliances and bathroom and kitchen remodeling or at least substantial updates. Most rentals will be rented “as-is” and you shouldn’t expect anything to be replaced or addressed prior to move-in.

Viewing Rentals Are Challenging

Even if you can find a rental getting in to see it might be problematic. If the rental is occupied, you may have to wait 24-48 hours to see it. The rental may not look its best when you do. The tenants might be packing, and condition of the rental might be not what you expect. You also need to ask the Landlord for what will be done to make it ready for the next renter. The time to get the place ready could be a problem if you need to move quickly.

Multiple Applications

The rental market is much like buying a home with multiple offers, be prepared for being one of many multiple rental applications for the prospective rental. Just like homes for sale, the rentals that are in the best locations, are the best condition, have a yard, a view and/or ample parking space will go super-fast.

Be ready and be prepared to fill out a complete application and supply all requested information down to the last detail. Incomplete applications or pieces of information that cannot be verified on your application may cause it to get passed over for one that is 100 percent complete.

In addition to a rental application, you’ll need to supply a copy of your driver’s license (or other official photo identification), agree to a credit and criminal background checks, and provide two to three months’ proof of income or bank statements.

If you are self-employed or working as independent contractor, you should have a statement prepared about how your income is derived. 

There is typically an application fee per applicant as well as a fee for running a credit report and possibly a lease preparation fee.

Also, each landlord or property management company will have their requirements with respect to a security deposit, and some may want the first and last month’s rent.

Rentals That Allow Pets

No matter what kind of pet you have and have happily co-existed with over the years, what you think isn’t an issue might be a big deal to a landlord. Do not assume that every landlord will accept pets, and if they do, there are often restrictions on what they will agree to take.

Large dogs, cats and pets that fall outside the scope of normal household animals may simply not be allowed.  

As renters, you are not in control of these decisions, and the landlord will often require a significant pet deposit for bringing in a furry friend. 

In addition, many communities, particularly condominium and townhomes have restrictions on the size, kind and number of pets allowed. If a landlord will work with your pets, you most likely will have to pay a hefty — and often nonrefundable — pet deposit. They might also have to provide a photo of the pet along with an immunization record.

Pets are often a challenging part of finding a rental and usually a very expensive add on cost for renting a home.

What Appliances Are Included

Double check the appliances that are provided with the rental. Not all rentals come with a refrigerator, or a washer and dryer.  If you  are selling your home and have included those appliances with the sale, you might end up having to buy or rent those items — even though they may not potentially work in the next home you plan to buy.

Working With The Landlord

When you have an issue with the rental, who do you call? Most people don’t think twice about this when submitting an application for rent. However, it’s important to understand whether the property is managed by an owner or a property manager. You should ask and know who to contact when something on the property needs attention.

As potential renters you should ask before renting: Is the owner local or out of the area? What kind of response time can you expect from them or the property manager? Will you be authorized to take care of repairs directly up to a certain amount and ask for reimbursement or?

Understand The Lease

The lease is a contract — just like a real estate purchase agreement — to buy or to sell property. You should fully understand what the terms and conditions of the lease are especially in terms of notice and costs for terminating the lease before it expires.

If the intent to lease a home was to use this time to shop for a home or decide if the area is right for you, you should keep in mind that if you find something you want to buy or move, it might not be as simple as notifying their landlord that you want to move out.

Leases typically spell out the costs of breaking the term — you just don’t get out of them for free. They could also prevent you from being able to sublease to someone else unless you’ve negotiated it as a condition of the lease.

A landlord could enforce your ability to continue to pay on the lease until it runs out if they choose to, so proceed carefully. You also need to be aware that the lease you sign will tend to be more in favor of the landlord. It’ll have all sorts of rules, regulations and requirements tenants are expected to abide by.

Don’t anticipate or plan on being able to negotiate or amend the lease. In a competitive rental market, the landlord is often wanting a long-term lease to minimize the cost of having to prepare the property in between tenants or missing rental income. Make sure you understand the implication and possible additional costs for a short-term lease if they are available.

Understand the other costs in the lease like late fees or utilities that are included. There is typically a late fee is for not paying rent on time, and the landlord or property manager could report this to the credit bureaus. Also inquire whether sewer, water, gas, and electricity are included or not.

Need Help? Just Ask

While renting may seem like a viable option, and market dynamics may dictate that necessity, there will be a substantial amount of planning and logistics involved to secure a rental. It’s important for you to stay flexible in order to find what will be best for what your short-term housing goals are.

I’m more than happy to discuss and share with you the short-term rental market is in the area. I’m also willing to share with you a good property manager or management company you can work with. Much like an agent a good property manager who understands your needs can go a long way to making a short term housing need a reality.

Make sure to read the purchase agreement

What’s Included And What’s Not When You Sell Your House

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A quick primer on what stays or goes with the sale

When a homeseller sells and moves out from their property, it’s expected that certain things are taken with them, like their clothing and household decor. And some things are left behind, such as the air conditioning unit and the dishwasher.

Thankfully, the California Residential Purchase Agreement addresses what you can and can’t take with you when your house is sold. It’s worth reviewing the purchase agreement with your agent, whether you’re buying or selling; doing so can give you some helpful clarity.

With regard to what you can and can’t take with you when you sell, there are some basic rules to keep in mind. A few words of caution. If a Seller take things they’re not supposed to you may face a lawsuit after the sale.

So first and foremost, remember that you can’t take anything that’s legally considered to be part of the property. This includes shrubs and plants. You may have a favorite rose bush that you’d like to dig up and replant at the new place, but it’s actually illegal to do so unless you expressly excluded it from the sale of your listing or in your negotiations with the buyer.

Along similar lines, buyers and sellers sometimes have misunderstandings about backyard items, such as patio tables, basketball hoops, and playground equipment. The rule of thumb here is that, if it’s anchored to the ground, it’s supposed to stay with the property; if it’s not anchored, you’re free to take it. Again, if you need an exception to this rule, you have to clear it with the buyer and negotiate accordingly.

So, with regard to the basketball hoop: If it’s a kiddie-sized one with an inflatable base, you’re free to take it. But if you’ve placed it into a hole in the ground and poured concrete all around it, then it counts as part of the property, and needs to stay.

Picnic tables and outdoor furniture will usually be able to go with you… again, unless you’ve somehow anchored them to the ground.

As far as inside home decor is concerned, buyers and sellers can often get into disagreements about lighting fixtures. You may have a beloved chandelier, but the rule of thumb is that lighting fixtures are part of the home and thus can’t be taken, unless you specify in your listing that they are excluded from the sale and will be replaced prior to close or a credit to the Buyer.

Helpful Tip: Simply remove those lighting fixtures before you list and replace them with something a little less ornate. If they’re not actually installed at the time of listing, then there shouldn’t be any confusion about whether or not you’re taking them with you.)

And what about window treatments? Rods and blinds are considered to be part of the house, and you’re not supposed to remove them. Though again, if you have window fixtures you’re really attached to, you can remove them and replace them before you list and avert the problem altogether.

Flat screen wall mounted TVs are often thought to be part of the sale. In the California Purchase Agreement they are excluded from the sale, but the wall mounts remain. Now a prospective Buyer can negotiate for the Flat Screen TV to be included with the sale. Again a Seller can remove the TV and mount prior to the listing to avoid the issue. (I recommend to repair the drywall from the Flat Screen TV mount, the purchase agreement simplifies the issue by allowing the mount to remain.

What do do if your home isn;t selling

Why Your Home Isn’t Selling or Getting Any Offers

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You’ve put your house on the market, and it’s just not happening: not a single showing or not one purchase offer. It’s not just the price but the price is the big reason there are no offers or showings. Finding the answers is often disappointing because the Buyers in your local market don’t want your home for the asking price because the online marketing to justified the value presenting and detailing the quality and condition of your home has just plain missed the Buyers for your home. You have basically failed to have you home marketed properly and now it will take hard decisive action to change the interest for your home.

You Didn’t Price Your Home to Sell

Sellers say, “But I don’t want to give away my house” or “I can’t sell it for less than…” Of course not. But to make a sale, the price must be right. It’s true now you are overpriced. The simple test is 3-5 qualified showings of your home with no offer, your price isn’t justified. Dated listings because of the internet are less than 30 days—homes that have been on the market for over 30 days—don’t generally sell for list price. You need to show motivation which means a price reduction.

You need to look at the market activity since you have been on market and see what other houses went into contract. Carefully review the sales and compare prices, make that price reduction, and see what else can be improved to sell your home.

How Does My House Look Online?

Check out the major websites (realtor.com, zillow.com, and trulia.com) for how your home looks digitally online. Are the photos representative and show your house in the best way? Is the first photo a great photo of the curb appeal of the house? Are the next 10 photos representative of the best features of the home. A great backyard shouldn’t the 30th photo, you really think users are going to look at every picture? They don’t and the views fall off sharply after the 10th picture.

Get quality, professional-grade photos; neither you nor your agents qualify as professional home photographers.

Make sure the photos capture the beauty, quality, and condition of your home.

  • Take the right pictures. Play to your home’s strengths. If a hallway is narrow, don’t take a picture of it. Kitchens, and master bedrooms/baths often sell the home. Get a close-up of your fireplace or other interesting feature instead.
  • Declutter the home, stage the home to look better. Make the home look as spacious and as appealing as possible
  • Make the Outside of the Home pop. Not only should your home look good online, but when they walk up to the house, it should look great.
  • Image Order Matters. The first shot of your home online should be the best shot of the curb appeal of your home.
  • Remember to include the backyard/gardens and garage. If they are upgraded or better than the homes in the area include those photos.

Not Marketing Enough

No single aspect of marketing sells a home. It’s a combination of efforts. Start with double checking the listing online to make sure important information like neighborhood/subdivision, schools are correct. Review the flyer and any marketing and make sure you approve of it. You are the current owner and I’ve learn the next buyer often resembles the current owner. If you don’t like the marketing why would any buyer like it?

  • Consider a direct mail campaign. Postcards to local residents especially when you’ve updated the listing makes sense.
  • Update your flyer and add riders promoting a new price, bedrooms, pool, and/or an upcoming open house.
  • If you don’t have a virtual tour, make your agent add one to the listing. Some buyers always look at virtual tours. Your missing potential buyers without one.
  • Massively advertise every weekend.
  • Hold open houses on Sundays that coincide with other neighborhood showings. Sometimes Thursday evenings attract buyers for twilight tours.
  • Get feedback from buyers who didn’t make an offer and have your agent notify any agent who showed the house about the new price improvement. 

Home Isn’t Up to Snuff

Take a sounding of the local real estate scene. If 90 percent of the homes in your market are not selling, then your home needs to outshine the top 10 percent. More specifically, look at the pending sales data, the homes that are under contract; that’s your best indicator. Information on already closed properties (the sort of comps your agent used to set the asking price) could be two to three months behind the current market movement. If you want to know what is happening right now, the pending sales data are best.

After arming yourself with this data, consider the condition of your property, from curb appeal to interior decor. Of course, your agent help you prepared your home for sale prior to listing, but maybe you should re-evaluate it in light of the competition and activity the listing. Ask your agent which efforts will give the most bang for the buck. Consider getting some pre sale inspections to address and counter any perceptions about your home not being move-in ready or being able to sell the home with the minor issues it has,

Last Resort – Hire a New Listing Agent

Your agent seems competent, experienced, and honest. Still, not all agents are right for all properties or all clients. Real Estate has changed if you haven’t sold a house in the last 5 years. The online marketing matters since its the first contact for active Buyers. If your agent doesn’t have great looking online listings you should find one who does. If the value for your home extends to lifestyle and community, you may want the top local agent who sells your market. However, the local agent should have online marketing you value.

You should make sure you are getting the service you think will sell your home. Dedicated agents who know your market are important but so is how your listing looks online and also is it syndicated to all the online real estate websites that matter and available to every buyer? For example is your home being displayed on the big three. realtor.com, zillow.com, and trulia.com. What is the social media reputation of your agent? Trust is key for online buyers.

What’s the communication level between you and your agent? Is the agent keeping you duly informed of all developments? Does the agent communicate the way you want andd how you want? we live in a connected world, however if you communicate best by phone or in person, is the agent communicating on the channel you want? If you need hand-holding, the agent they should provide it. If you don’t need it, the agent should leave you alone. But the relationship should always be within your comfort zone and what you want.

Finally, did you give your agent a chance? Did you minimize his suggestions, discount his advice. I believe there is always accountability but real estate is still about working closely, and trusting the experience of the agent to get it sold at a fair price that works for you and the buyer. Agents work hard and you no doubt you hire the agent to get the job done. You might be surprised by the results if you let your agent do what’s best and not second guess their decisions or cause them to alway be more concerned about your responses than doing the job they can do and believe will get your home sold.

One last suggestion. In a buyer’s market, price your home a minimum of a percentage less than the last comparable sale. If you can’t live with that price, then don’t put your home on the market and set yourself up for disappointment. Overpricing is the worst mistake a home seller can make. If there is a way to

learn how to make your home show ready

Stage Your Home To Look Its Best While Selling

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Staging or making your home “show ready” helps buyers imagine themselves living in it.

If you want to sell your home faster, staging a house is a tactic home sellers should consider. Staging a house gets your place showroom-ready and allows buyers to imagine themselves living there. Home buyers are used to seeing picture-perfect houses—in person, on home decorating shows, and in online listings, so learning how to stage or make you home “show well” a house can make a big difference when selling.

What does staging a house mean?

Staging a house is the process of strategically arranging furnishings and decor to make a house look its best while selling. This may involve paring down and refreshing your own belongings, or moving all of your own stuff out and renting furniture and decor.

Here’s how to stage a house.

Get rid of clutter.

The most essential task when staging a house involves purging and cleaning—a clean, empty-as-possible house looks bigger. Remove knick-knacks and personal items from all surfaces. Don’t just put them in closets; potential buyers usually look in those, and you want yours to appear roomy. Box up spare belongings and get them out of the house.With the clutter gone, do a deep cleaning. Make your kitchen and bathroom sparkle, and be sure to close the toilet lid before any showings. Air out the entire house by opening the windows—air fresheners or scented candles can trigger allergies, and you don’t want prospective buyers feeling itchy. If you have pets, wash everything they touch—no one likes pet odor. Consider hiring a pro for the deep clean if you have room in your home-selling budget.

Aim for a light and bright look.

Buyers typically like to see bright rooms, so lighting is an essential part of staging a house. Open your blinds or pull your curtains back before a showing. Make sure your light fixtures look appealing. If your lampshades are dingy or your fixtures are dated, consider replacing them. Even dusting your bulbs and fixtures can help let more light through.Play with different color temperatures of lighting as well—the whiter the light, the more it will look like daylight. You can check the Kelvin rating on light bulb boxes to help you choose the right one: soft white is typically 2700K-3000K, and daylight runs between 5000K–6500K.

Stage important rooms first.

We’re about to get into the part of staging that can cost money—renting furniture, or removing some, which can require a storage unit. This can be a considerable cost of selling your house, so if you don’t have the time or money to stage your whole house, you can get the most bang for your buck by staging certain rooms. The main living area is the most crucial space to stage and look appealing to buyers. Next comes the master bedroom, followed by the kitchen. Rooms that are an important in your home should also be considered. Secondary bedrooms are often okay to leave as is but should be tidy and clean.

Remove and/or rent furniture.

A good rule of thumb is to remove about half your furniture. This could be difficult since you may still need to live in the home. But your house will look bigger and more appealing to most buyers with less furniture in it. If your furniture just doesn’t look showroom-ready (or if it’s already moved into your new home), you can rent nice, new pieces. Put your furniture in storage, or sell or donate it if you won’t be taking it with you.

Arrange furniture.

Once you’ve settled on the furniture that will occupy the staged home, position couches, chairs, and tables away from your walls. This is a design technique called “floating” the furniture. Anchor the space with an area rug, even if the room has wall-to-wall carpet. This creates a cozy, intimate space, ideal for chatting with friends and family.

Work on your home’s curb appeal.

“Curb appeal” is a real estate term for how nice your home looks on the outside at first glance. It’s a big deal when staging a house because the exterior is the first thing potential buyers see. Get buyers in the door by doing the following:

  • Power-wash your house and walkways.
  • Clean your windows.
  • Make sure your house number is easy to read.
  • Mow the lawn.
  • Trim overgrown greenery.
  • Plant flowers.
  • Put a welcome mat and potted plants on your front stoop.
  • If you have a porch, include outdoor furniture.

The little extras matter.

Once you’ve learned how to stage a house and yours looks perfect, add some finishing touches inside. People love to see fresh flowers in vases, a bowl of fresh fruit on the kitchen counter, and folded towels in the bathroom. If you’re living in your home while selling, you can keep your nice extras in a closet so they’re ready to go quickly when your real estate agent calls to say a buyer is on the way.Now that you know how to stage a house, you could have your home sold in no time.

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