Essential Terms to Know in Real Estate

There are several industry specific terms used in real estate that are crucial to have an understanding of when looking into becoming a first-time home buyer.  When the lingo is unfamiliar to you it is easy to become overwhelmed which leads to added stress to an already stressful situation.  To prepare yourself for a fast and efficient transaction we have compiled a list of terms you are sure to hear throughout your transaction.

Appraisal: This is the estimate given by professionals that values the home, property, or combination of.  An appraisal is sought by lenders when looking to verify that a property is worth the amount of money the buyer is seeking to purchase it for.

Buyer’s Agent: A buyer’s agent is a real estate professional that works on behalf of the person buying a home.  They seek to represent the buyer’s best interest throughout the entirety of the transaction.

Contract: A sales contract is a legally binding document between the buyer and seller that states the terms of the sale.

Closing: This is the moment the sale of the home is final.

Closing Date: This is the date that is set in place as a marker for when ownership of the home occurs.  It is the expected date that the home inspection is to be completed, a mortgage obtained, and keys exchanged.

Contingencies: Conditions within the contract that need to be met for the sale to move forward.

Counter Offer:  Once an offer has been received if it is not deemed acceptable to the seller they can respond with an offer they deem acceptable.

Debt-to Income Ratio:  This is a number that is used my mortgage lenders to determine how much outstanding debt you have including the mortgage vs how much income is coming in.  Debt is divided by income times one hundred.

Due Diligence: This is the process in which a person takes reasonable actions to satisfy legal requirements of a contract.

Earnest Money: This is the financial portion of the initial contract, typically 1 to 3 percent of the cost of the home, that is held in escrow and is applied to the buyers down payment when the sale goes through or is paid to the seller if the contingencies are not met and the buyer reneges on the contract.

Escrow: Money that is kept in the custody of a third party until certain conditions are met such as paperwork is signed, or taxes are paid.

Equity: The market value of the home minus the liens against it equals the money left over.  Equity refers to the money that is left over as “profit” from the sale of the house.

Inspection: This process involves a professional that is hired by the buyer to assess the homes condition.

MLS: A database of properties that are up for sale.

Offer: The initial agreement that is made with conditions that the buyer gives to the seller with terms in which they would like to purchase the home under.

Principal: Is the amount of money the buyer needs to borrow to purchase the home.

Seller Concessions:  These are incentives offered by the seller to make the home more desirable to buyers.

Title Search: This is the process that is taken to determine proper ownership of the home.  It assures buyers that the seller has the legal ability to sell the home free of outside obligations.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

The Advantages of Selling Your Home Using a Real Estate Agent

Do you own a residential property that you are looking to sell? Have you searched for buyers around you? Have you seen that it is not so easy to close a real estate deal on your own? Most homeowners that try to sell their homes one their own end up selling their house for a lower price from the value that it deserves. It is important to take help from professionals to complete this process as they know the right tactics to close the sale with benefit.

You might have overlooked the importance of having real estate professionals for selling your home; but here are few essential advantages to hire them.

Priced Right

The house selling process takes a potential turn when it begins with a reasonable asking price. The real estate agent can help you to stay up to date about property price variations happening in the local market so that you can set a strong selling amount for closing potential deals. Also, to improve the value of your house, the realtor may suggest few repairs and improvements in the space. This significant contribution can help you to sell your home at a beneficial price.

Marketing

The next important step for selling a house is a strong marketing plan. If you focus on the right market with a strong marketing strategy, you will find more buyers for your property and then it will become easier to close deals at a beneficial price. The expert real estate agents make use of multiple real estate listings along with cooperative marketing networks; they can help you to reach up to more people.

Security

When properties are sold without real estate agent; they often face troubles on security criteria. You may find strangers at your doorstep and it is risky to let them enter inside to view your property. But when you hire real estate agents for your home selling process, buyers come from right channels. These experienced sellers will help you to get qualified prospects for your property to lead the process safely.

Expert Knowledge

An expert real estate agent can help you to evaluate buyer’s proposal as per market position. Homeowners often find it difficult to negotiate the price point with buyers due to lack of knowledge about market prices. An expert agent can stay with you from the beginning of the process until you sign the final sale agreement. He will fight the whole case on behalf of you and will bring the best value to your pocket.

Efficiency

The home selling process involves lots of paperwork and it must be done carefully. To complete everything safely, it is good to hire professional real estate agent as they know the right procedures to close the deal. They will handle all the paperwork for you without making any mistake and you will be able to get your money on time.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

 

Staging Your Home for Resale

A real estate agent will advise that you improve the attraction of your home to make it marketable. This is important if you genuinely want to increase profitability and sell faster. Although staging your home for resale is optional, an experienced real estate company handling the sale of your house will take you the process you need to achieve superb home staging. For this discussion, we will take you through budget-friendly steps to stage your home for resale below.

Clean

The idea of cleaning is to clean up significant items in the hope that a new buyer would like to see if you do not have the fund to buy new ones. Pay particular attention to the kitchen, bathroom, and the balcony. You need to clean up all significant items in these areas. Your real estate agent should advise on other places that need cleaning.

Take out Personal Items & Clutter

Before you remove the clutter the home to get it ready for sale, make sure you remove all your personal belongings to make the house ready for the new buyer. After you removed all personal belongings, you need to remove clutter from the home, remove everything not contributing to the resale purpose. When you remove clutter you free the home of impediment and it gives the impression of larger space to attract prospective buyers.

Sanitize

The primary purpose of sanitizing as a staging process is to rid the environment of offensive odors. Take time to clean up the walls, furniture and scrub the floor and deodorize. The cleaning process would remove strong odor-causing germs and dirt, but you need to purposely disinfect the environment to make it friendlier to prospective buyers.

Rearrange Rooms & Define Space

Unless it’s an open space, you need to rearrange every room where you have the room items in place. Also, describe the purpose of each room and let the things in such room meet the goal it is defined to serve. If necessary, consider painting the rooms that could use some fresh paints in the staging process.

Lighting

This is not about electric light; we are talking about natural lighting from the environment. A well-lit home also means natural ventilation that promotes good health in the house. As you prepare for staging, take care of broken windows; fix the blinds and all fixtures that promote lighting.

Bring out the Aesthetics

Pay close attention to the curb to boost its look. Buyers are interested in what they see, and if it looks good and convincing, nothing is stopping them from making an offer if the fund is available.

Furniture

Let the furniture be the perfect size for their space to avoid cluttering the room. The furniture needs to make each room look bigger and not shrinks it. Make sure to use appropriate furniture that befits the environment.

Improve the Exterior

Your home’s exterior is the first point of contact with buyers, so you need to see to it that it’s the best you can offer. A real estate company should suggest great landscaping ideas to make your exterior look perfect.

Before concluding the staging process, it is best to go over every element in the process to ensure a thorough job has been delivered. Allow a real estate agent to reevaluate the home and point out any area that may need additional staging done to it. After that, you are ready for the market.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

 

How to Sell or Buy a Home In Any Market

Selling or buying a home in any market can be tough if a seller or buyer doesn’t pay attention to some basic principles that are followed by both potential buyers and sellers. Being prepared before placing your home on the market, proper preparation and planning for your home selling or buying process reduces stress once the process of showing your home to prospective buyers begins. Whatever decisions you make surrounding the details of home selling, remember, the home has to sell itself. Always make sure that the home displays its value to customers so that they will be willing to give a value that matches the home.

Your Reason For Selling

The most critical component in the whole home selling process is the reason for selling. Why are you selling your home? Is it time to resize your household and move to a larger home? Are you downsizing and looking for lower maintenance living? Are you relocating for employment? Are you selling because you want to or because you have to? This is the key question that you must answer, as it will be the driver for everything else in the selling process. A must sell answer will require a more aggressive approach to the preparation, pricing, and marketing. The want to sell answer can allow for a more laid-back strategy.

Begin Preparation

Preparing a home for sale should be made a priority as soon as you have decided to sell. If you take time to clean and ensure that it is clean, home price can increase and the seller holding time reduces. Today’s buyers frequently want a move in ready home that requires as little work as possible. They want to move their personal belongings in, hang their pictures and start enjoying the home as soon as the movers are gone.

Using a Realtor Or Not

Next, a home seller must decide if they are going to use a realtor or sell their home themselves. Both come with a cost. If you don’t choose the best realtor in your market area, the one with the hard data available to demonstrate their success in the home selling process, you could be in for a stressful and unpleasant selling experience. When selling the home personally, so that you may save some money, be ready to have enough time and have your patience tested every time a prospective buyer enters your home.

When you decide to sell or buy a home, their various factors that lead to a successful sale. The above three are only the beginning of the items that need to be considered as you move forward with the selling process. Buyers are out there in every market and the planning and preparation you do today can help you get your home sold in the shortest amount of time, for the highest possible price and with the least amount of stress.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

A Guide to Home Buying

Buying a home can be an overwhelming process if you are a first time homebuyer. It pays to do your homework and know the important steps in the home buying process so that you do not feel surprised or overwhelmed. It is the dream of every individual to have his own home. Congratulations to you if you have decided to buy a home for your family.

Real estate transaction are a major financial decision involving lots of money. As you will be living in your new home for years to come, it is prudent to do your homework and make a move only when you have found a house that fulfill your requirements.

Hire a real estate agent to represent you

Many people think that hiring the services of a realtor can be a burden on their pocket. The fact is that the fee of a buyer’s agent is paid by the seller. But this professional provides invaluable help and assistance with his knowledge and experience.

Get pre approval letter from your lender

Many buyers make the mistake of starting their search for a home without this all important document. Pre approval document in your hand is a clear sign for the homeowners that your offer can be taken seriously. Your bid is also preferred over other buyers when you have been preapproved for a mortgage loan.

Search for your new home

Make a list of your requirements and start your search. It becomes easier to conduct this search when you know what you want and for how much. Try to find a house in a neighborhood where there are good schools for the education of your kids. Do not buy a house at a low price if it is too far away from your place of work.

Make an offer

Once you have found the right home, let your agent make an offer based upon price and other terms you have chosen for yourself.

Negotiate and enter into contract

These are two very crucial steps in home buying process. Your offer may not be accepted by the homeowner. Allow your agent to negotiate with the seller on your behalf.  Once the price and terms are acceptable to you, it is time to draw up the contract. This document specifies the time within which you agree to make the payment and also the time within which you need to get the property inspected. Your real estate agent gets incorporated points that you wish to focus upon so that there is no dispute later on. Negotiation and contract are two steps where the expertise and negotiation skills of your agent are tested to the core.

Final details

Once you have got the property inspected, you can review the report one last time before you are ready to close the deal. You arrange the money by getting the mortgage loan from the lender. Discuss the terms of repayment before singing the mortgage deed.

Closing on your new home

This is the last step in home buying process. You hand over the check and take the possession of the property. A title company facilitates closing after studying the title deed of the property.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

Downsizing is a Good Idea as Homeowners Age

You purchased a large property to fulfill the requirements of your family with kids. Now your kids are gone and settled in their own homes and careers. You are living with your spouse in the same large house, somehow coping with the maintenance costs and huge utility bills. Why don’t you move into a smaller apartment or house to cut down on your expenses and maintenance costs? Referred to as downsizing, this concept has become very popular among old age couples preparing for their retired life without kids and their families.

Cut down on your expenses

Are you frustrated by the fact that you have to mow the lawn on your own in an attempt to save on the fee charged by a gardener? Do you find it irritating to pay for the cost of heating and cooling such a large area inside the house when you and your spouse are effectively using only a small percent of the area?

Well, this is the case with most couples staring at their impending retirement with their children having moved to faraway places, settled in their careers. You can get rid of these extra expenses by simply selling your large house and moving into a smaller house or apartment. You can even start to live in a rented place, depositing all the cash you get by selling the house into your bank account.

There are emotional costs of downsizing

Cost of ownership is not limited to just financial costs. There are so many memories attached to the place you called your home for so many years. You have the neighbors and your friends living in the area. It can be painful leaving all these memories behind. Also, you need to find your new home in a place that is not too far away from the kids and your friends otherwise traveling back and forth could add to your expenses.

Calculate the cost of selling and buying

Selling your large house will no doubt fetch a lot of money in your hands but do not forget the commission of your agent and other related costs of selling. Add to this the cost of buying your new small home and take a decision to downsize only when you are able to save a considerable amount of money for your retired life. Downsizing proves counterproductive if you cannot give up on your ego and plan to splurge on furniture and other household items like before.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

 

The Smart Way to Buy a Home

Buying a house is perhaps the biggest financial decision of your life. You must remain careful and take a wise and informed decision as it is a matter of crucial importance for you.

Why are you buying the property?

There can be many reasons why you have decided to buy a property.

  • You are fed up of living in a rented property
  • You want to pay the EMI of your own home rather than feeding your landlord
  • Your family has outgrown the space available in your present home
  • You are interested in buying a rental property
  • You want a property having a yard
  • You desire to live closer to your workplace

Once you know the real reason behind your desire to buy a property, it becomes much easier to identify and buy the right property matching your requirements.

Can you afford buying a property?

Knowing the answer to this question is very important in arriving at a decision to buy a property. Of course it is a great way of building an asset for your family and an investment into your future. But only you know whether you can easily afford the monthly repayments to the lender for a long time to come. If you are settled in your career and sure of receiving increments in future, you can go ahead and buy a home for your family.

Preparations before buying

You may be surprised to know this but it is a fact that there are some preparations that are necessary to be carried out before you start the process of buying.

Make the green file

If you do not know, green file is a file that contains financial documents of an individual necessary for securing a loan. It includes:

  • Your banking details
  • Financial statements
  • Investments and assets
  • Credit card details
  • Loan details
  • Recent paystubs
  • Tax retunes
  • Life insurance policies
  • Retirement account information

Check your credit report

This is perhaps the most important step in your preparation for buying a property. Every lender studies your credit report and pays attention to your credit score before deciding in favor, or against giving you mortgage loan. Ask your credit report from one of the three credit ratings (Equifax, Experian, and Trans Union) and check your score before you go and apply for a mortgage loan in a bank. It is your credit score that decides how much of a loan the lender will give and at what rate of interest.

Be realistic with your expectations

Many individuals are very happy and excited when starting their search for a new home. All their enthusiasm fizzles out when they find that they are not getting their dream home in the price range that they have in their mind. If you have seen 3-4 houses and feel that you are not getting what you have in your mind, you have to remain prepared to make some compromises. This is exactly how people are able to buy homes for their families. A little compromise on space, location, price, and features is what you should be mentally prepared for. If you are too picky, you will spend a lot of time seeing houses and still not be satisfied with any of them.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.

5 Things that Every First Time Home Buyer Must Know

Congrats to you if you have made the decision to buy a home for your family. You will be fulfilling the great American dream and also creating an asset for yourself. Buying a home involves major financial transaction. You do not buy homes every now and then. Any mistake or negligence on your part can not only cost you dearly but also make the procedure tiring and tough for you.

Here are 5 things that you must absolutely know about before buying your first home:

  1. Know how much of a home you can afford

Many individuals become excited after landing a decent job. They are in such a hurry that they start conducting search for a home without knowing how much loan they can get from a bank based upon their financial statements. You are only wasting your and your realtor’s time if you do not know how big a home you can afford to buy.

  1. Location is crucial

Every first time home buyer needs to make an assessment of his requirements. This allows him to shortlist neighborhoods on the basis of amenities available, ease of transport, lifestyle, and the requirements of the family. It is no use starting on your search with your realtor without knowing what you want in terms of location of the house.

  1. Keep in mind your budget

You have saved a small amount of money to be given as down payment to the bank. You can easily calculate the price range in which you can buy a home for your family on the basis of this amount. Do not forget to keep aside money to meet the closing costs as well as the fees of your agent. It becomes easier to see houses that fall within your desired price range and politely refuse the request of your agent to see more expensive homes. Ask yourself if you can bite more than you can chew and you will stay on track when searching home for your family.

  1. Are you ready to pay the EMI’s?

Just because you have some money in your saving account does not mean you will be able to easily afford the monthly repayments to your lender. See what the monthly amount that you can pay comfortably is. Do not commit to until you feel you are ready for this kind of a commitment. Buying a home is easier than repaying monthly installment for a long time period of 20-25 years. Understand the terms and conditions of the mortgage clearly before signing the contract.

  1. Pump in as much down payment as you can afford

Your Down Payment Matters

Money spent on down payment should be considered as a wise investment and not as an unnecessary expenditure. You should offer to pay as high a down payment you can possibly afford to get a lower rate of interest and the confidence of the lender. Some individuals make the mistake of holding on to their savings when they get the facility of a no down payment mortgage loan. If you do not have a solid plan of investment, it is better to pay a large sum of money upfront to your lender.

Final Thought On Buying a Home

Buying a home is a huge transaction in your life. It should be based upon research and understanding of your own requirements and ability to repay the loan. Hiring the services of a reliable and experienced realtor can prove to be a very wise decision when buying a home.

Learn more about C21 Lady of the Lakes Realtors and the numerous services they offer including: buying a new home, selling a home, or renting a home at www.ladyofthelakes.com.  To contact one of our real estate agents call 734-426-6060 today.