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Posts Tagged ‘real estate tips’

Life After COVID-19? How Interior Design will Change

Covid Interior Design Trends for Homes
Covid Interior Design Trends for Homes
Spending months in quarantine has already dramatically impacted design, with new trends that will undoubtedly continue to resonate well into 2021 and beyond. The future of interior design will reflect the reality of a world that has been forever changed by incorporating cleanliness and materials to help to mitigate the spread of disease, floor plans that provide separate spaces for home-bound activities, and a focus on personal well-being.
Nature-starved homeowners have been craving what they’ve been denied of late, so expect to see an increased number of plants and lush indoor gardens, earth-toned color schemes, outdoor-style interior flooring, and even the occasional attached greenhouse.
Residences will no longer have a home office, but an office at home. Significant reconsideration of how we can create a beautiful, functional office at home will be designed and set up to accommodate full time satellite workplaces.
If you’re doing your part and social distancing from inside your home, you may start to notice small details of your house or apartment you hadn’t thought about before – like how to help keep your home as clean as possible during the corona virus outbreak. There are few materials that we can use that are more sterile than others and will be used even more in the future of design.
        • Metals such as copper, brasses, and bronzes are natural antimicrobial materials that have intrinsic properties to destroy a wide range of microorganisms. Not only are these metals hygienic, but they are great accents to warm up your home.
        • A separate “casita” or guest house suite can be useful for isolating someone that may be ill, or to provide more distance and privacy for guests.
        •  Office spaces and study areas are more necessary than ever. As more of us work (and learn) from home, a dedicated office and space for studying is essential. Many of us quickly had to convert areas and rooms to our own home offices – showing us the importance of a separate space. Homes with multiple areas for getting work done – offices, libraries, and study areas – will be even more popular in design.
        • Multiple areas for activities and entertainment, such as home gyms, media rooms, and game rooms will be necessary to keep everyone entertained. During this pandemic, we have found ourselves with a lot of time on our hands, so whether it’s a family game night or a workout, the need for a space for everyone at home has only increased.
        • There’s no doubt that the future of kitchen design will look different in a post COVID 19 world. First, we have been forced to alter the way we shop, store, and prepare food. Second, we have more time at home to get organized, tackle lingering projects, and sanitize our homes. Finally, we have had to change the way we interact and socialize with family, friends, and colleagues. More long term storage and larger freezer capacity are in demand. New kitchens will be designed with cleanability in mind. Low maintenance cabinet finishes, faucets, tile, and fixtures will be a top priority. Quartz is one of the hardest non-precious stones on earth, therefore countertops made from quartz are hard, stain and scratch-resistant, and the most sanitary.

Our living spaces greatly influence our physical health – as well as our emotional state of mind (especially during his time). So it will continue to be important to create environments that stimulate our senses in a good way, improve relaxation, and have health and wellness benefits to the people using them. Here are a few ways of living that will be popular.

  • Bringing in nature will be emphasized in many different ways. From larger windows with views outside and using colors that reflect the natural world. Having lots of greenery in a home is also an obvious and easy stimulant to our overall wellbeing (along with lots of health benefits).
  • An increase in organization. Being quarantined at home makes us realize what is really necessary. Clutter can cause anxiety and discomfort – feelings that are more unwanted than ever. Organization will be emphasized, through de-cluttering, smart storage, and built-in shelving and spaces for keeping items organized in smaller spaces.
  • A sense of security and calm will definitely be present in interiors. When the world is full of uncertainty, having a space that feels like an escape from the outside world, with soft and cozy materials, light colors and relaxing vibes, will be a prerequisite of design.

When it comes to colors this year, we’re seeing the return of earth tones in a wide spectrum, from cream to terra cotta.  Expect to see decor that conveys softness, with plenty of light colors, especially pinks, beiges and other neutral tones, for a Zen look promoting rest, tranquility and well-being.

Nature continues its influential role in the world of decor. Vegetal hues have been in the spotlight for several seasons now, and this year we saw a lot of them, ranging from tender green to intense mint to peacock blue. Sky blue has brightened up the pastel palette.

Earth tones aren’t the only trend with staying power of late. While black is becoming less popular, blue has been replacing it. It’s a more versatile and emotionally indulgent hue well suited to sheltering at home.

How To Set Up A Home Office

Home Office

Home Office

I’ve spent more than three decades with a home office. When you work at home, even part time, you discover that a makeshift desk area on a kitchen counter or the dining table isn’t the best setup. Having a dedicated home office, even if it’s compact, makes a big difference in comfort and productivity. Having a dedicated space also serves as an important signal to those who live with you that you’re ‘at work’. Create boundaries within your home that your family members understand.
Stake Out Your Spot 
You need to pick a spot in your home with the fewest distractions, and where all the essentials (like electrical outlets and your modem) are close by. Modern WiFi is a wonderful thing but understand it can still be inconsistent in even the most tech-friendly neighborhoods. I anticipate that our connectivity speed will be further degraded by all the streaming and game-playing that is happening now, in addition to everyone trying to work from home as well……be patient and see if you can upgrade to a higher speed with your home Internet provider.
Also, try to find a spot near a window with some natural light so you don’t feel completely tucked away from the world. Think about storage and try to keep work-only items grouped together. Think outside the file box to find an organizational system that works for you; see what you can use around your home. It’s more important to give everything that has been sitting out in piles a permanent home than it is to buy new containers. Here are a few ideas for organizing your home office:
·     A grid of clipboards on the wall can make for a handy place to keep papers organized.
·     Wall-mounted cups keep frequently used supplies neat and within reach.
·     Cups and bowls borrowed from the kitchen make great desktop and drawer organizers.
·     Labeled, open-top baskets on shelves are great for people who like piles
·     Traditional files are still useful for important documents.
Set Ground Rules with the People in Your Space
Set ground rules with other people in your home or who share your space for when you work. I say “morning,” but not everyone who works from home follows a nine-to-five schedule. Yours might be a “getting started” routine at another time of day. I want my elderly parents to be able to call me anytime, but have reminded them that “after 6” is the best time to get my undivided attention. I ask other family members and friends to respect my work hours and stick with the less obtrusive email or text for non-emergencies.
Act as if you are “going to work”. Whatever your routine was when you were going to the office, try and maintain it now that you are working from home. Exercise, shower, get dressed (not pajamas), and then “go to work”. I try and avoid eating at my desk and taking a coffee break, lunch break, etc.  Use these times to reconnect with other household members and address their needs and concerns.
Think About Your Back, Feet and Shoulders 
Pick a back-friendly, ergonomic chair if at all possible and always make time for exercise (don’t forget to stretch!). I prefer to stand or walk around while I am on the phone but now that my husband is working from home as well, we find that this is distracting to one another. Go outside and get some fresh air while on that call.
Although you can easily work on a laptop from anywhere, an entire day, week, or even a month spent looking down at a screen is not going to do your neck muscles any favors. If you have the space and the budget, think about upgrading to a decent-sized computer monitor to plug your laptop into. I use two monitors so that I can multitask between emails, software applications required for my work, calendars, and more.
Most desks, chairs and monitors and still designed for the average sized man. I have made adjustments by ensuring that my monitors are at eye level. You can use boxes, books, magazines or anything you have around the house to easily accomplish this…no need to be purchasing special desks, risers, etc. If your chair is not adjustable, use pillows, etc. to ensure that you are sitting at the right height to keep your back straight. I have purchased an ergonomic cushion that provides comfort and support for my spine as well as adds two includes to my seat height.
Make Friends with Your Postal Worker or Delivery Person 
Thank goodness for USPS, UPS and FedEx!!! These people get bonuses at Christmas for their daily deliveries to my door. I have always been an online shopper for convenience and time-saving and now that I am getting deliveries for food, office supplies and more the visits to my front door have increased ( still can’t find toilet paper however).
Take the time to let your local postal worker or delivery person in your neighborhood know you’re now working from home if your work involves a lot of envelopes and packages. I have made a point in the past to have a few daily words with the drivers that frequent my home. It helps when my local delivery person knows I’m working at home and sending and receiving envelopes and packages on a regular basis.  In today’s world something as simple as leaving a note on your door explaining your situation will work and be appreciated.  My UPS driver told me a couple of days ago that I can leave the package outside my front door with a note to pick it up or if I see him in the neighborhood to just hand him the box…..no need to go out to the UPS store!!!
Pump the Brakes with Social Media
Social media can be absolute poison if you don’t limit yourself. It’s definitely good to stay on top of the news during these uneasy times, but if you allow yourself to be sucked into endless posts, you might look up at the clock and discover you lost three or four hours of your day.
I enjoy social media and participate for both personal and work reasons, but I have learned to use it wisely.  I check it before I head to my office with my morning coffee and then again at the end of the day. That doesn’t mean you can’t laugh at someone’s funny online story, or post about your favorite sports team or TV show. Just try to limit the damage during work hours.
Freshen up.
Give yourself a big pat on the back, because the hardest work is now behind you! Today is all about making your home workspace fresh and clean, so it will be a healthier, more pleasant place to spend time in.
·     Vacuum your home office from top to bottom. Use an attachment to clean window treatments, high corners and fabric lamp shades.
·     Wipe down shelves and surfaces with a damp microfiber cloth.
·     Use monitor wipes to clean your screens.
·     Use a keyboard cleaner to blow dust from between the keys or gently clean them with cotton swabs.
·     Bring in some fresh plants to help clean the air.
Straighten up your home office before you are done working each day. Bring the coffee cups back to the kitchen and completely clear your desktop.
We are all anxious and a routine will help keep our life as “normal” as possible in these difficult times. Don’t be hard on yourself if you are not as productive as when in the office. Working from home is a mindset and a discipline and cannot replace a normal work environment. It takes time, discipline and commitment to find the right balance for your personal and family needs.

Types of Movers for Home Buyers

relocation

 

relocation

Moving to a new house, city or state is one of the most stressful things a person can go through. Even when everything goes smoothly, you’ll likely be exhausted when all is said and done. Whether it’s down the street or across the country, moving is a major task that requires much effort and coordination. For this reason, many people choose to hire a moving company, but knowing who to entrust your belongings can be a daunting task.

While you do have the option of going the DIY route when moving, things will be so much easier and more convenient for you if you hire professional movers instead. You’ll incur certain costs by doing so, but the help they can provide is worth it.

It’s also a common mistake to hire the first moving company you lay your eyes on in an ad. There are so many moving companies out there, but not all are created equal. The movers you should hire are legitimate ones with licenses, insurance and other vital considerations. You should also get quotes from at least three movers to determine the best deal. Ask for references and verifying credentials. And remember to never pre-pay for a move!

Local Movers

There are many kinds of moving companies depending on the type of move you’re looking to make. Some companies specialize in local moves and will have limitations on the distance they’re willing to travel. Local movers are great for small cross-town moves since they typically charge by the hour.

Long-Distance

If you’re moving across the country, you’ll want to find a long-distance mover. These movers have special licensing that allows them to operate across state lines and they typically charge a bulk rate based on how quickly you need to be moved and how many items you’ll be moving. In some circumstances, you may even need to move out of the country. International movers will help you pack and get your items overseas. These moving companies are usually prepared for immigration and customs issues.

Full-Service

If you want a completely stress-free move, you should consider a full-service moving company. These companies take all the hassle out of your move by disassembling and packing up your old house and then unpacking and reassembling everything in your new place. Additionally, they provide all of the materials so you don’t have to worry about how much tape you’ll need or what size boxes to get.

Tax Considerations When Deciding to Relocate.

Florida retains its ranking as one of the nation’s lowest-tax states, according to the latest study released by Florida TaxWatch. Out of 50 states, Florida ranks No. 42 in the average amount of money paid by residents.
Florida TaxWatch findings:
  • Floridians pay an average $5,679 per person in state and local taxes
  • Residents pay an average $2,584 in state taxes – one of the least amounts nationwide. Only the residents of one other state pay less.
  • However, local tax burdens are higher. “Per Capita Local Tax Collections” ranked No. 27 nationally.
  • In the balance between state and local taxes, Florida relies more heavily on local revenue than almost all other states and is No. 2 nationwide. Local taxes account for 53.3 percent of the total.
  • With property taxes, Florida ranks a solid “average” score – No. 25. The state’s per capita property tax ranking is right at the median – 25th.
  • Florida also classifies 38.7 percent of its state and local revenue as non-tax revenue (such as “fees”) – the 7th largest percentage in the nation.
  • Florida relies more heavily on transaction taxes, such as general and sales taxes. They make up, 81.5 percent of all state tax collections compared to the national average of 47.2 percent.
  • Florida has the highest state and local selective sales (excise) taxes on utilities in the nation. The tax on motor fuels is No. 15; the tax on alcoholic beverages is No. 19.
  • Florida’s housing sector produces significant revenue, and the state’s documentary stamp taxes are rising rapidly post-recession. It collected an average of $276 per capita in 2006, $72 in 2009, and $130 per capita in 2016 – the nation’s second-largest doc-tax burden.
  • Florida is one of seven states without a personal income tax. The average state relies on personal income taxes for 37.0 percent of its tax revenue.
  • Businesses pay 51.7 percent of all Florida state and local taxes – the 12th highest percentage in the nation.

Tips for Investors New to Flipping

Flipping is when real estate investors buy real estate and then resells them at a profit months down the road. Can you make money doing this? Yes.

Can you make a lot of money doing this? Yes.

But you can also lose everything you own if you make a bad decision….Absolutely!

A renovation can be an overwhelming experience with high stakes. Investors must create an overall vision for the project, gauge its financial feasibility, build a reliable team that includes a Realtor, contractors, lender, accountant, insurance agent, designer or architect, and attorney or Title Company, be highly capitalized, and hope that their assessment of the market is accurate and that the property sells quickly. The longer your cash is tied up and you are paying expenses the less profitable your investment.

Thanks to tighter lending standards you will need plenty of cash, and nerves of steel, to get into flipping. So what do you need to get started?

  • First, you need an excellent credit score. Lenders have tightened their requirements for home loans, especially if you want a loan for a high-risk house flip.
  • You need CASH! Use the cash for a down payment, so you don’t have to pay private mortgage insurance (PMI) on your second mortgage. You could also take out a home equity line of credit (HELOC), if you qualify. If you have enough in savings, and you manage to find a bargain-priced property, you can buy the property for cash, and take out a small loan or line of credit to pay for the renovations, Realtor fees, and closing costs.
  • A great way to get started flipping houses – especially if you have little money – is to form a joint venture with a partner who has money. If you don’t have the money, the joint venture partner will fund the deal while you do all the work. Although you may not get rich on your first deal, you’ll gain something even more valuable – experience.

What Makes a Good Real Estate Investment?

Finding an undervalued property in this market can be a challenge. With foreclosure rates down and bank owned property inventory drying up, there is a shortage of inventory compared to just a year ago.  Utilizing real estate professionals will greatly assist you in finding suitable properties.

 

  • Location. Expert flippers can’t stress this enough. Find a home in a desirable neighborhood, or in a city where people want to live. Start by researching local cities and neighborhoods. Look for areas with rising real estate sales, employment growth, and good schools.
  • Sound Condition. You don’t want to tear the house down, and start rebuilding it from scratch. Look for structurally sound homes. You may not have the opportunity to have a home inspected, especially if you buy the home at a real estate auction. You need to learn what to look for, or bring someone knowledgeable about building, electric, and plumbing with you to look at the home, to determine if the home is structurally sound.
  • The Right Fixes. A home with old carpet and wallpaper may be easy, and cheap, to update. Other home repairs to tackle might include, replacing outdated kitchen and bathrooms, and replacing windows and doors. A house that has mold, needs a roof replacement, or needs rewiring, requires some serious time and cash to update and sell. Make sure you know which updates and repairs you can afford to fix, which repairs you can’t afford, and which home improvements will increase the selling price of the house. When you estimate the cost of any job, experts advise that you add 20% to the final estimate. Why? It’s always going to cost more than you think it will.
  • Value. Make sure the price of the home is below its value in the local market. Otherwise, you will not make money. The worst house in a great neighborhood has nowhere to go but up in value, due to the value of the other homes in the area. Know which home improvements increase the home’s value. Focus on these projects first. Home improvements that increase the value of a home might include upgrading kitchen appliances, repainting the home’s exteriors, installing additional closet storage space, upgrading the deck, replacing windows and doors.
  • Before you make an offer, make sure you know the uppermost price you can pay for a house, and still make a profit. This includes your estimate for repairs, interest, and taxes. Remember to pad your estimate by 20%. If the homeowner or bank won’t sell to you for this price, walk away. It’s better to keep looking, than to risk going broke from a bad investment.

 

Now Get Working

  • Make sure you know which home improvement projects you can complete quickly and successfully, and which projects will need contractors.
  • You need permits before you start remodeling. Not having the right permits, or not correctly displaying permits, can cause serious delays, and fines, from city inspectors. Make sure to apply for permits as soon as the sale is final. It’s also helpful to make a timeline for projects, with associated deadlines, and the budget listed for each project. This helps you, and your contractors, get renovations done quickly, and within budget.

 

Relist and Sell

  • Many flippers end up listing their homes with a Realtor. Realtors eat and sleep real estate, have access to buyers, and can list your house in the MLS database. They also know the current market fluctuations, and have the skills and network to get you the best price quickly.

 

Final Word

  • Without a doubt, flipping homes offer great risks, and great rewards. A house flipper must be prepared for the possibility that the home won’t sell right away. House flippers also have to make tough decisions, like whether to accept an offer that is less than they wanted, but still for a profit. If you can handle all of the ups and downs, and you have the time and enthusiasm for fixing up and selling homes, then house flipping might be right for you.

 

 

 

 

 

 

Managing the post-storm insurance claims process

Florida, Georgia and North Carolina residents affected by Hurricane Matthew will begin surveying damages to their property and belongings.

Florida Chief Financial Officer Jeff Atwater and Insurance Commissioner David Altmaier put together the following tips to help Floridians begin the process of filing insurance claims for damaged property and belongings and this may prove useful to residents in other states as well:

Tip 1: Locate all applicable insurance policies. This may include a homeowners’ policy, flood policy (flood coverage is not covered under a typical homeowners’ policy and is separate coverage), and an automobile policy (may cover damage to your car from flooding).

Tip 2: Document all damaged property and belongings. Take photos or shoot video footage before attempting any temporary repairs. When you file an insurance claim, you may be asked for visual documentation of damages.

A photographic home inventory is a handy resource for this situation. A free smartphone app developed by the National Association of Insurance Commissioners called “MyHome Scr.APP.book” can help you take and store a room-by-room log of photos.

Tip 3: Contact your insurance company or insurance agent as soon as possible to report damages.Insurance policies require prompt reporting of claims, so it is important to act as soon as possible.

Tip 4: Cover damaged areas exposed to the elements to prevent further damage. Your insurance company may reimburse the expense of these temporary repairs, so keep all receipts.

Do not dispose of any damaged personal property until your insurance company adjuster has had an opportunity to survey it.

Florida consumers who have questions about their insurance coverage are encouraged to call CFO Atwater’s Department of Financial Services, Division of Consumer Services’ Insurance Helpline. Helpline experts can be reached by calling 1-877-MY-FL-CFO (1- 877-693-5236), or online at: myfloridacfo.com/hurricanematthew.

Prepare for Hurricane Matthew’s Aftermath

As Hurricane Matthew churns through the Atlantic with a possible landfall in Florida, the Property Casualty Insurers Association of America (PCI) urged property owners to take some basic precautions to protect themselves and their belongings.

“With the potential for Hurricane Matthew to hit somewhere along the East Coast, the Governor has issued a state of emergency for all 67 counties in Florida,” says Logan McFaddin, PCI Florida regional manager. “This caliber of a system could bring major flooding and damages along Florida’s East Coast.”

In addition to making sure residents have emergency kits and plans ready, PCI urges residents and business owners to take precautionary measures to prevent damage to vulnerable property. Flooding from storm surge during hurricanes and tropical storms can be especially dangerous for residents along the coast and further inland. PCI recommends that homeowners who sustain damage report it as early as possible to their insurance company.

McFaddin says flood insurance is advisable, but “there is typically a 30-day waiting period between the date of purchase and when flood coverage will go into effect.”

PCI hurricane precautions

Review your property insurance policy, especially the “declarations” page, and check whether your policy pays replacement costs or actual cash value for a covered loss.

Inventory household items, and photograph or videotape them for further documentation. Keep this information and insurance policies in a safe place.

Keep the name, address and claims-reporting telephone number of your insurer and agent in a safe and easily accessible place.

Protect your property by covering all windows with plywood or shutters, moving vehicles into the garage when possible, and placing grills and patio furniture indoors.

Keep all receipts for any repairs so your insurance company can reimburse you.

Check with your insurance adjuster for referrals to professional restoration, cleaning and salvage companies if additional assistance is needed.

Make sure watercraft are stored in a secure area, like a garage or covered boat dock. A typical homeowners policy will cover property damage in limited instances for small watercraft, and separate boat policies will provide broader, more extensive property and liability protection for larger, faster boat, yachts, jet skis and wave runners.

 

There will certainly be an extended period with power outages.  After the storm, empty out your freezer and refrigerator of all perishable items and put in covered trash receptacles.  Unplug all appliances and electronics since there will certainly be surges when power is restored.

Be mindful of downed power lines when going outside after the storm.  Broken branches can also be dangerous and will continue to fall given the winds and rain that follow the storm.  Remove debris from your property to ensure continued safety.

Location, Location, Location!

There are many things that should be considered when buying a home. Since most home buyers expect to buy a bigger and better home someday in the future, resale value is an important factor in decision-making. While no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain.
“Location, location, location,” is a common and almost overused phrase in real estate and has been in use at least since 1926, according to the New York Times. It is just as relevant now as it was then.
The idea is to buy a house that will appeal to the largest number of potential future home buyers. A careful choice of location can minimize potential negative influences on future resale value, and maximize positive influences.
So if “location, location, location” is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home will be a good investment.
Some “good” and “bad” qualities simply vary by community. If you know your local community, you know which parts of town are less or more desirable.
Safety:
People want to live where there’s little or no crime. Naturally, they want to feel safe in their homes and will pay extra for it. A safe neighborhood means people will feel free to walk around, be outdoors and interact with their neighbors.
Good Schools:
Whether you have children, plan on having them, never want children, or they are out of the house; the better the school district, the higher the values of the surrounding homes can be. . The reputation, the quality and the district are additional factors in finding a good school. Homes surrounding good schools are in high demand. Found a home you love but the school district is subpar? Be aware of that issue for resale down the road.
Convenient access to work, popular places, shops and restaurants
Everyone wants to be near the best commercial districts. The closer to the hubbub of a particular town or the best parts of a city, the better the location – and the more someone is willing to pay for a home. The distance from point A to point B is so important. A long commute burns more gas and wastes more time than necessary. Therefore, evaluate the time it takes to travel from the home to the following: work, school, store, hospitals and favorite hangouts. Buyers without cars must live in communities with public transportation access. A community containing local amenities close by is valuable to buyers.
View, Views, Views:
No matter which town or city, someone will always pay for a great view or to be on or near the water.  An interior location with lack of road noise is also an important consideration. If the community does not offer views, then the backyard area and how it is designed is a consideration.
Access to public transit and/or freeways:
In major cities, the farther you live from the bus, subway or other types of mass transit, the less valuable the home. A good location means being very close, and having easy access, to public transportation. Being near a train or bus can get you anywhere in a short amount of time. In some towns, where a commute by car is inevitable, easy access to the freeway makes for a good location. Adding 20 minutes to a commute just to get to the freeway never helps a location.
It’s almost easier to talk about what constitutes a bad location than to discuss good locations. There are some common characteristics that make a location “bad,” no matter where you are. That is because the qualities that make a good location desirable can vary, depending on whether you’re looking in the city, suburbs, the country or the mountains. Bad locations, by their general nature, are easier to pinpoint. Some examples are:
Commercial/industrial areas:
Unless you live downtown, commercial buildings on your block diminish residential real estate values. Part of the reason is because homeowners cannot control loitering. Homes next to gas stations or shopping centers are undesirable because of the noise factor and compromise safely.
 
Railroad tracks, freeways or under flight paths:
Some city dwellers have homes close to railroad tracks and endure rumbling and other noise 24-hours a day. If you have a choice to be in a quiet area, free from road noise within the same community, this is the better choice of residence.
Economically depressed areas:
If owners show no pride of ownership in maintaining their homes, evidenced by lack of maintenance, poor landscaping and junk in the yard, you might think twice about moving into such an area.
Close to hazards:
People don’t want to live next door to power plants or substations. Few home buyers want a transformer in their yard, either. Understand the flooding risks and exposure to natural disasters and the preventative measures that have been taken to minimize them.
Other factors that can make for a “bad” location: very close proximity to a fire station (good if your house is on fire, not so good if you’re trying to sleep); a hospital (frequent ambulance sirens); an airport (sounds of jet engines 18 hours per day) or a school (traffic from buses or parents dropping off children or kids yelling and playing).

Most Often Asked Homebuyer Questions – Answered!  

Buying a home is a major lifestyle and investment decision. Homebuyers have a lot of questions throughout every step of the process and I have found that many of the questions are common to many. Here are some answers to the most common questions I get asked.

Q: What home can I afford?

That depends, of course-on your income and other financial obligations. There are many Home Affordability Calculators for a ballpark figure. A visit to the Optima Properties website will offer you many tools under the  Finance Center!

Before you start to shop, make sure that you know exactly what you can afford by getting pre-qualified by your financial institution of mortgage broker.

Q: Can I buy a home and sell my current one at the same time?

Yes, you can-but it’s the real estate equivalent of walking a tightrope. This is one of the trickiest questions to answer, on the one hand, if you buy a home before you sell the one you’re in, you’re overextended financially; if you sell before you buy, you might need to rent a while before finding a new place. There are ways to do both at once, and one option is to request a “sale contingency” in your contract. This means you only agree to buy a home if you can sell the one you’re in. The only downside is if your seller doesn’t agree and will not agree to this condition….it never hurts to ask!

Q: How many homes should I see before making an offer?

As many as you need to!  While home shoppers these days can look at hundreds of homes online, most need to physically visit the area and stand in the properties before they put in an offer. Keep in mind, this varies tremendously for each person. Some people find their home within hours of looking or make an offer sight unseen because they have definitively defined their criteria. For others, it takes months and sometimes over a year if they are trying to determine the area, lifestyle, and type of home that meets their requirements.

Q: What do you think the seller will accept as a fair price?

As a rule of thumb, knocking 5-10% off the list price

won’t ruffle any feathers for an initial offer. If the property has been sitting on the market for months, you can venture below that, but the bottom line is, you never know how low a seller will go, as they have different motivations for selling.  Your Exclusive Buyer Agent should develop a Comprehensive Market Analysis to determine the market value of the property. This should be your guideline as to how much to offer and how high to go.

Q: How do I know if the property is a good deal?

While there’s no crystal ball on whether a certain home is a bargain and will appreciate, rest assured that with research, you can keep surprises to a minimum. The best way is to check out comps-what similar properties are selling for in the area.

Q: How quickly can I close?

If you are paying cash you can typically close in the time it takes to get the home inspected and have a lien, permit, and title search conducted. The new TRID requirements for home loans have extended the time required to get a mortgage.  I advise all my buyers to not commit to a closing for less than 60 days from the effective date of the contract.

Q: Should I get a home inspection?

My only answer to this question is YES, YES, YES! A certified and licensed home inspector ( not your father in law) will look into the condition of the roof, electricity, heating and air, plumbing, among other functions and conditions of the property.  Even if you are just purchasing land you should check for soil contamination, septic perkability, etc.

Q: Can I back out if I change my mind?

While buyers can always back out of a deal, doing so without good reason may forfeit their earnest money and full deposit.  The form of contract you choose to use may provide you with different outs. Contingencies are great “escape clauses. For example, if you enter into an AS IS contract upon an unsatisfactory home inspection, the buyer can ask for their deposit back. Another contingency is “subject to appraisal.’” That means you can back out if the appraisal either ordered by your closing agent or your lender results in a valuation that is less than the agreed to purchase price.
Bear in mind that the more contingencies you include in your offer the less room you have to negotiate other terms and conditions of the contract with the Seller.

There is not question to small or unimportant when purchasing a home.  There is a wealth of information available and your agent should assist you in getting your questions answered in a timely manner.

 

 

What Homeowners Need To Know About Title Insurance

Protecting your home investment:

A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Homeowners insurance protects against loss from fire, theft or wind damage. Flood insurance protects against rising water. And a unique coverage known as title insurance protects against hidden title hazards that may threaten your financial investment in your home.

Oversimplified, title insurance insures a homebuyer — and a mortgage lender — against loss resulting from title defects, whether these defects are known or unknown at the time of the sale or the refinance. In the language of the title industry, the insurance covers both “on record” and “off record” problems.

Protecting your largest single investment:

Title insurance is not as well understood as other types of home insurance, but it is just as important. When you purchase a home, instead of purchasing the actual building or land, you are really purchasing the title to the property – the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. Title insurance protects against these types of title hazards.

Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects against loss from hazards and defects that already exist in the title and is purchased with a one-time premium.

There are two basic kinds of title insurance:

  • Lender or mortgagee protection
  • Owner’s coverage

Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection. When title insurance is provided, lenders are willing to make mortgage money to lend.

Owner’s title insurance lasts as long as you, the policyholder – or your heirs – have an interest in the insured property.

When your seller purchased the house several years ago, his title insurance policy covered him — and his lender — for all risks (defects) that existed at time he took title; the policy did not cover future defects.

During the time the Seller owned the property did a mechanic place a mechanic’s lien against the property?

Did a creditor obtain a judgment against the seller and have that judgment recorded? Did the home get sold at a tax sale, without the seller’s knowledge? Did someone forge the seller’s name to a deed and sell the property to a third party? Or did someone accidentally place a lien against your property (Lot 657) when they really meant to place the lien on Lot 567?

Strange as it may sound, these things do happen. Your lender wants assurances that should you not be able to make the monthly mortgage payment, and the lender has to foreclose on your property, that you have clear title. Your new lender is willing to make you a loan; however, since you cannot categorically advise the lender that you have clear title, the lender will insist that you obtain a title insurance policy in favor of the lender.

What does your premium really pay for?

An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, the policyholder, the best possible chance for avoiding title claim and loss.

Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by the title agent or attorney on behalf of its underwriter to determine whether the property is insurable.

The examination of evidence from a search is intended to fully report all material objections to the title. Frequently, documents that don’t clearly transfer title are found in the chain, or history that is assembled from the records in a search. Here are some examples of documents that can present concerns:

  • Deeds, wills and trusts that contain improper wording or incorrect names
  • Outstanding mortgages and judgments, or a lien against the property because the seller has not paid taxes
  • Easements that allow construction of a road or utility line
  • Pending legal action against the property that could affect a purchaser
  • Incorrect notary acknowledgments

Through the search and examination, title problems are disclosed so they can be corrected whenever possible. However, even the most careful preventative work cannot locate all hidden title hazards.

Hidden title hazards – your last defense

In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises. Some examples of hazards include:

  • A forged signature on the deed, which would mean no transfer of ownership to you
  • An unknown heir of a previous owner who is claiming ownership of the property
  • Instruments executed under an expired or a fabricated power of attorney
  • Mistakes in the public records
  • A mortgage (deed of trust) is properly recorded on the land records, but there is no legal description identifying the property that is subject to the mortgage. As a result, creditors are not put on notice of the existence of this mortgage lien, and may make another loan, which will not have first-trust priority.
  • A deed (or other legal document) is improperly recorded with the wrong legal description.

The list, unfortunately, can go on and on. There are numerous instances where title to real estate has been found to be defective — either based on substantive grounds or technical, legal procedural reasons (such as improper indexing, misfiling or failure to comply with local recording requirements).

Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims – all for a one-time charge at closing.

Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner’s title insurance policy.