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Preparing for Closing Day as a Seller

Closing day is the best day! It’s what we’ve been working towards and the deal is officially done. This is what you can expect from me as we prepare to close.

I will make sure all terms are satisfied and that the buyer’s lender has issued a clear to close or for cash transactions verify that the buyer will have funds available for the specified close date.

Closings are scheduled during the day from 9-4 on the hour. You may have to arrange from time off from work to be available for closing. I will do my best to make sure the time and location is convenient for you and your needs.

The transfer of utilities is coordinated with the time of possession. If possession is the date of close you should plan to make phone calls to the utility companies a few days before close. If the possession is extended after closing you will want to contact the utility companies a few days before you hand the buyer(s) the keys. I will provide you with the list of phone numbers in advance.

The day of closing you will need to bring your photo identification, social security number, keys (if possession is at close), a cashiers or certified check made out to the title company (if you are required to bring funds to close the transaction), and a check made out to the buyer(s) if you have extended possession and rent is a negotiated part of the contract.

At the closing you will receive copies of all of the documents and your proceeds check (if applicable). Please keep in mind the title company will issue this check specifically to the name on the title.

If you need the name of moving companies or a source for moving boxes I will provide you with a list of excellent resources.

After closing I will follow up with you to make sure that all your needs are met and answer any questions that you may have.

The Home Selling Process- What to Expect From Start to Finish

The home selling process can be overwhelming and stressful. I’ve broken it down to 4 simple steps to help you get an overview of what the process looks like.

Step #1

  • Evaluate your needs
  • Set the right price
  • Determine time frame
  • Research Competition
  • Prepare and stage your property for sale

Step #2

Step #3

  • Receive, negotiate, accept offer
  • Inspections, Appraisal
  • Assist with mortgage & title process

Step #4

  • Assemble documents
  • Attend closing
  • Sign documents & contract
  • Transfer Utilities
  • Give the buyers Possession

Is it Smart to Refinance?

Your home mortgage is an important investment in your future, and a mortgage refinance can be a smart move to help you manage your investments when used under the right circumstances. Here are some things to consider about refinancing your mortgage.  

Simply put, when you refinance your mortgage, you are taking out a new loan to pay off your original mortgage, so the first question to ask yourself may be is there a better product available to you than what you started with?

Refinancing allows you to borrow against the equity you have built up in your home and take out cash you can use to pay off other debt, make home improvements, or invest in your retirement. For example, let’s say you have $70,000 of equity in your home, but still owe $175,000 on your mortgage. You may take out a new mortgage for $200,000 that is used to pay off the first mortgage, and then pays you $25,000 in cash. If you have made regular payments on your initial mortgage for at least five years, you probably have enough equity built up to take a cash-out mortgage.

Another reason to refinance is to reduce your monthly payment to give you more flexibility in your monthly budget. When you refinance, you are basically starting over on your 30-year commitment, but, if you are not taking cash out, your new mortgage amount will be lower, so your payments decrease.  

If you originally took out a 15-year mortgage, changing to a 30-year term will lower your monthly payment considerably.  

You may also choose the opposite and switch from a 30-year loan to a 15-year term. Your monthly payments will likely increase, but you will pay your loan off earlier and pay less interest.  

Another reason people refinance is to change from an adjustable-rate mortgage (ARM) to a fixed-rate. This eliminates fluctuations in your monthly mortgage payment and may help you take advantage of favorable rates.  

Before you decide to refinance, do some homework. You should perform an audit of your monthly budget, assess your short and long-term financial goals, check your credit score, watch interest rate fluctuations, and consider the costs involved in refinancing ads there will be closing costs on your new loan.

Simplified Step by Step Look at the Home Buying Process

  1. Find a Realtor that you can trust. (I’d love to help!!) This is SO important so that you have a professional in your corner through the next key steps. This is a huge investment and going it alone can cost you money and time.
  2. Determine how you will pay for your new home. Will you be paying cash or will you need a mortgage to finance your new home? If you need a mortgage you will need a trusted mortgage lender to help guide you as to what is the best type of loan for your needs. Your Realtor can help you find a lender that you can trust if you don’t already have one.
  3. Search for the right home. Preview potential properties online. Schedule showings and view the properties you are most interested in.
  4. Make an offer. Write an offer to purchase on the property that best meets your needs. Negotiate the terms of the offer and accept the contract.
  5. Under contract. Turn in earnest deposit check, complete loan application and get homeowners insurance quotes.
  6. Inspections. Conduct inspections, and resolve/negotiate any issues.
  7. Financing period. Your lender will order the appraisal. You will need to obtain homeowners insurance. The title company will conduct a title search.
  8. Clear to close. This means that the lender has approved your loan and we are ready to set a closing date.
  9. Closing day!! You will sign the closing documents and officially become a homeowner!

Renovating Your Home? Check These FAQ’s!

1. How do I pick a contractor?

Ideally, you want to build the same kind of relationship with your contractor as you do with your real estate agent: one built on trust that makes you want to go back to that person for any future needs. Your contractor should be a very good listener and communicator. You want them to “get” your vision for your home, and to keep you in the loop every step of the way. Do your due diligence by checking out contractors’ reputations, talking with other clients, and looking at work they have done previously before you make your selection.

How much will my project cost?

Of course, the answer depends upon the scope of your project, but in order to get the best estimate from your contractor, take time to write down each detail of your plan so that the contractor can include everything in their estimate. Renovations are famous for taking longer and costing more than originally planned, but this is often because the homeowner makes additions or changes along the way, or they don’t realize that, for example, if you move a wall in your home, you may have to then reroute electricity and outlets. One item often leads to another, so you have to look at everything piece by piece.

How long will renovations take to complete?

As we said above, this depends on the amount of work being done– and how many changes are made along the way. The more pre-planning you do, the better estimate your contractor can give you.

How do I prioritize projects?

If you are living in your home during renovations, you may want to plan out the project in phases, so you can live out of some rooms while others are being worked in. You may also need to phase projects based on cost and availability of funds.

Where do I begin?

You begin by conducting a lot of research. Start a look book for your home, either in a notebook or online, collecting pictures of the look and finishes you want. Talk to different contractors, and visit kitchen, bathroom, appliance, and flooring showrooms to get ideas on selections and pricing.

Do I need permits?

Your contractor will know what projects require permitting. Make sure that you do abide by permitting regulations, as failure to secure proper permits can come back to bite you if further work is needed down the road.

How much will renovations increase my home value?

Every homeowner hopes that making improvements will increase their home’s value, and this is usually the case, but sometimes what homeowners view as improvement can turn out to be liabilities to future buyers. For example, don’t put so much money into the house that it becomes more expensive than the rest of the neighborhood. And be careful not to add personal style preferences that can’t be easily changed, like ornamental fixtures, radical architecture, or unusual landscape features.

How should I pay for renovations?

If you have the cash to pay for your renovations, that’s certainly a good way to go. Otherwise, you might consider a home equity loan with a manageable monthly payment or a revolving line of credit that you can use for renovations as well as emergencies that may arise later.

Why it’s so Important for First Time Buyers to Focus on Practical Over Pretty

Ok, I get it… who doesn’t have this gorgeous picture of what you new home will look like?? When we talk dream home most aspiring homeowners do not think of worn avocado green carpet and paneling from top to bottom. Most picture the a white picket fence, a beautiful kitchen, a warm and inviting living room and don’t forget the cozy retreat-like bedroom.

In this extremely competitive market, the dream may have to shift a little. Isn’t homeownership the BIG goal? Aesthetics can be changed, and it doesn’t need to be right away. I’ll say it again. In this market, you likely will not have the luxury of changing the aesthetics of the home right away…

Why not? Because you will likely have to throw all that you’ve got into an offer to secure a home in this market. This market is tough, especially for aspiring homeowners without a huge budget for a down payment. There are cash offers, escalation clauses soaring over ask, and appraisal gap guarantees to compete with.

In simple terms that money that you are holding back in your offer to upgrade the kitchen, may be the difference between actually buying a home or continuing on in the pattern of searching for homes and losing out on offers.

With that being said, we are going to have to focus on practical over pretty. As hard as it may be, a solid roof and foundation and other mechanicals in good working order are so much more important. Once you actually get an offer accepted and close on your house, you can begin to save funds to change the decor.

Dream homes don’t happen over night. In this market buy a solid home first then put your special touches on it as time and money allow. The best part of it all is that you are investing in something tangible. The funds that you spend improving the aesthetics over time will pay off in the end.

4 Factors That Affect The Saleability of Your Home in West Michigan

Helping my clients sell their homes is my favorite!! There are 4 major factors that we need to discuss that will determine the success of the sale.

Pricing

Pricing your home according to the current market is a key factor in a successful sale.

Which factors are key to determining the value of a property? Location, design, amenities, competing properties and economic conditions.

Which factors have no bearing on the property value? Price that the seller paid for their home at the time of purchase, amount spent on improvements, assessed/taxable value assigned by the municipality.

Creating the Right Pricing Strategy is something that we as a team (Realtor & home seller) will discuss as we go through the process.

Market Conditions

The only constant in the real estate market is change. It is always fluctuating and shifting. As your trusted real estate advisor, I will help you determine the pros and cons of listing your home in the current market conditions. It really depends on your ultimate goal whether or not the time is right for you to sell your home.

Two of the most frequently talked about real estate market descriptions are, Buyer’s Market and Seller’s Market. We will discuss which of these markets the current conditions favor.

Property Condition

Your home does not have to be a 10 out of 10 to sell, but the condition is an important factor on how much your home will sell for and how quickly. Major repairs should be taken care of prior to going on the market (if it is not an option it needs to be reflected in the price).

Staging is a popular term out there in real estate world. This can mean as little as thinning out all of the clutter to completely altering the paint, flooring, decor and landscaping to make the home more attractive to potential home buyers. This is absolutely something I will guide you through. I absolutely love this part of the home sale process!!

Market Exposure

Your home can be in the best location, be priced properly and show like a brand new build but if it doesn’t get the right exposure, it won’t sell.

Marketing your property is my jam! From writing the best possible listing description, to creating social media ads, to making sure that the professional listing photos show your home in it’s best light, highlighting your home to agents that are working with potential homebuyers in the area, open houses, the list goes on. I will do everything I can to ensure that your property has the maximum exposure possible.

Get these 4 factors right and you’ll be receiving a great offer in no time! Let me help you in your journey! Send me a message and we can get started.

Let’s Talk Title Insurance

A title search is a crucial but behind-the-scenes part of the home buying process. I’ve asked a local title insurance expert what buyers should know about their services — and the valuable role they play in keeping buyers safe.

Q: First off, what is title insurance? 

A: Title insurance protects you and your mortgage lender from loss — and headaches — if your seller doesn’t own the property outright. ⁣

Q: How does title insurance protect you? ⁣

A: Title insurance protects you from financial loss in the form of: ⁣

  • Deeds by minors or by persons of unsound mind
  • Deeds by persons supposedly single, but in fact, married
  • Fraud⁣
  • Forged deeds or wills
  • Liens
  • Misinterpretations of wills⁣
  • Unpaid taxes or inheritance⁣

Q: What is a title company? 

A: The title company confirms that the title to the real estate property is legitimately given to the purchaser of the property. Typically, the title company conducts the closing on the home and verifies that the seller has the rights to sell the property.⁣

Q: What does a title company do?

A: Since a clean title is required for every real estate transaction, title companies complete a search on every title to check for claims or liens before a new title can be issued. Without title insurance, buyers could be liable for monies owed on the home long after closing.

Q: How much should title insurance cost?

A: The cost of title insurance ranges between $500 and $3,500, depending on where you live, the provider you choose, and the purchase price of your home.

In most cases, the title company works quietly behind the scenes, making sure everything is set for a smooth transaction. No news is definitely good news. ⁣ Have questions about the buying process? Don’t hesitate to reach out – I’d love to help out.

How Does a Buyer’s Agent Get Paid?

After all, if you’ve ever bought a house, you know your agent never asked for a dime during the entire process. (Truth is, real estate agents can’t accept money directly from buyers.)

Here’s how it works:

  • Agents receive a commission typically based on a percentage of a home’s sales price or it can be a flat fee. Most often, the agents split the total commission 50/50.
  • The seller typically pays the commission out of the sales proceeds at closing.
  • The commission first goes to the seller’s brokerage, who cuts a check to the seller’s agent.
  • Next, the seller’s brokerage sends the remaining funds to the buyer’s brokerage and pays the buyer’s agent.

Hiring a qualified buyer’s agent who can negotiate the best deal on your behalf is crucial to your buying experience.

Here are some things to consider when hiring a buyer’s agent:

  • Is this their full time career? Some agents work a full time job and their real estate career is their “side hustle”. This isn’t necessarily a bad thing but it may affect their availability and many full time career professionals have more experience and dedication to their business.
  • What is their negotiation style? Real Estate is a team sport – everyone has to work together to get to finish line.  While your agent should always have your best interests in mind, it’s important they play well with others.  Being bull headed and hard to deal with can often lead to lost deals & lose you lots of money! On the other side of that coin, your agent should be able to stand their ground when it matters.
  • What is their experience? See what their background is and what skill set they are bringing to the table.  While real estate experience is important, having a professional background in other things can be a great way to round out their experience.
  • Do they have a process? Real estate transactions are not all the same, but it is important that your real estate agent has a process and a plan to help you reach your goals. Some agents may “just wing” it, but the true professionals will be able to give you the steps of their plan and let you know how they will serve you.

If you, or someone you know, is looking to buy (and now’s a perfect time!), reach out or pass my info along. I’d love to connect ASAP!

Thinking About Building Your Dream Home? What to Know Before Starting…

You’ve decided you want to build your dream home. Now, you need to hunt down and snatch up that perfect piece of paradise to call home. Here’s how to go about finding just the right spot:⁣

Consider the general layout of the home you want to build. Sprawling ranch? Front-porch farmhouse? Two-story bungalow? The lot you choose should complement the home you envision.⁣

Save time by narrowing down where you want to live. Then research available lots in those areas.⁣

Link arms with an agent who knows local builders and can help assess a lot’s potential. You want to be well-acquainted with a lot’s slope, drainage, and utilities.⁣

Check with the local zoning office about the land you’re interested in purchasing. Pay attention to surrounding land as well and try to weigh what future zoning and construction will happen in the area. Your agent can help!⁣

If you’re looking to buy in an established neighborhood, research minimum square footage or building materials requirements. Ask about HOA fees or restrictions that could limit your number of pets, vehicles, or home additions down the road.⁣

Meet with reputable lenders familiar with construction loans to learn your financing options.⁣

Work with an agent to write and negotiate an offer.⁣

Attend your closing and break ground!⁣

If you’re leaning towards new construction, but haven’t found the right lot, I’d love to help. Send me an email and let me know what you’re looking for – zip code, school district, acreage, etc. As I chat with my network of agents and hear about lots, I’ll reach out – you’ll be one of the first to know! I can also set you up to receive email alerts the second a listing hits the MLS that fits your wish list. Can’t wait to hear from you!⁣