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What is Title Insurance and why do I need it?

When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.

After your sales contract has been accepted, a title professional will search the public records to look for any problems with the home’s title. This search typically involves a review of land records going back approximately 30 years. More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing. For instance, a previous owner may have had minor construction done on the property, but never fully paid the contractor. Or the previous owner may have failed to pay local or state taxes. Title professionals seek to resolve problems like these before you go to closing.

  • The Owners Policy – Owners Title Insurance, called an Owner’s Policy is designed to protect you from title defects that existed prior to the issue date of your policy. It is usually issued in the amount of the real estate sales price.  Title defects, such as improper estate proceedings or pending legal action, could put your equity at serious risk. An Owner’s Policy provides assurance that your title company will stand behind you — monetarily and with legal defense if needed — if a covered title problem arises after you buy your home. The bottom line is that your title company will be there to help pay valid claims and cover the costs of defending an attack on your title. Unlike other forms of insurance, the original premium is your only cost as long as you own the property. There are no annual payments to keep your owner’s policy in force. The owner’s title policy can also save you money on future lender’s policies, in the event you refinance or sell the property within a limited time period.
  • The Lender Policy – There are two types of title insurance: Owner’s title insurance, as mentioned above, and Lenders title insurance, also called a Loan Policy. Most lenders usually require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.

5 Quick Things to Help SELL Your Home!

1. Price It Right

Its stressful trying to sell your home, so setting the right price for your home is more important than ever. If you really want to stimulate a sale, you should under price your property by just a hair.  By shaving just a few dollars you can generate more foot traffic.

2. Make It Inviting

There’s no faster way to turn off a potential buyer than to overwhelm him with a home stuffed with kids’ toys, family knickknacks and a stinky kitty litter. Even stodgy furniture can make a property more difficult to unload.  Fortunately, there are some inexpensive things homeowners can do on their own to attract a buyer. Whether you live in a cozy Cape Cod or a 4,000-square-foot McMansion, make your space feel as open and clean as possible. Get rid of clutter, organize the closets and remove all personal items that may make it more difficult for someone to imagine living in your house.

3. Minimize Surprises

A home that’s in good working order will always sell faster than one that needs pricey repairs. That’s why some agents recommend having your property inspected before you put it on the market. The benefits are twofold. First, it’s always cheaper and faster to make your own repairs rather than have a buyer drag out the negotiating process to accommodate any necessary work. Second, you’ll also avoid any nasty last-minute surprises that could derail a deal should the buyer’s inspector discover you need, say, to replace the roof.

4. Get the Word Out

No matter how you sell your home — on your own or with a broker — make sure you have an eye-catching online listing. Some 80 percent of people start their real estate searches online, according to the National Association of Realtors. While it used to be enough to simply slap up one or two blurry photos, buyers now prefer a slew of pictures so that they don’t waste their time touring a home that doesn’t meet their requirements.

What should your listing include? At the very least, take half a dozen or more photos that highlight your home’s best features.  Make sure to include a shot of the outside on a sunny day, and one of the kitchen, a bathroom, dining room and a bedroom.

5. Throw In a Little Something Extra

Offer traditional incentives, including paying for closing costs. Such tactics are especially attractive to first-time shoppers who can afford mortgage payments but struggle to come up with the down payment and closing fees. Here are a couple more ideas. If you installed a 40-inch plasma TV with a surround-sound stereo system in the living room, offer to include it with the house. Chances are you won’t be able to take it with you anyway. If you’re selling a second home on the water, throw in the Jet Ski.

2 types of energy tax credits to take by year end

In February, the federal tax credit was reinstated for energy efficient home improvements made in 2012 and 2013. A tax credit is a direct reduction of taxes due. It can be better than a tax deduction that only reduces taxable income.

The energy tax credit now has a $500 lifetime cap for qualified energy efficient upgrades to your existing principal residence, but the deadline is December 31. New homes and rentals do not qualify. You’ll find all the details on: http://www.energystar.gov/taxcredits. The highlights:

1. Tax credits for 10% of the cost. You may claim a tax credit of 10% of the cost of certain energy-saving upgrades. These include qualified insulation, windows, roofs, and doors, with a $200 limit for all doors.

2. Tax credits for the full cost. You can claim tax credits for the full cost of specified types of “qualified residential property,” but only up to certain caps. For example:

  • advanced main air circulating fan – $50
  • natural gas, propane, or oil furnace or hot water boiler with annual fuel utilization rate of 95 or greater – $150
  • electric heat pump water heater with minimum 2.0 energy factor – $300
  • electric heat pump or central air conditioner that achieves the highest efficiency tier of the Consortium for Energy Efficiency – $300 each
  • natural gas, propane, or oil water heater that has either a minimum energy factor of 0.82 or a minimum thermal efficiency of 90% – $300
  • biomass stove that uses “plant-derived fuel available on a renewable or recurring basis” (see site for details) – $300

You’ll need to file IRS Form 5695 with your tax return and have the Manufacturer’s Certification Statement that the item meets the efficiency requirements on theenergystar.gov website. That site also lists a few alternative energy items (such as solar panels) that qualify for tax credits after December 31.

Please consult a tax professional before making any purchases you think will qualify for a tax credit.

6 KEY FALL CLEANUP AREAS

  1. Lawn. Mow until the first frost, keeping the length above 2.5″. Rake leaves that smother and kill grass. Rake up excess grass clippings using an iron rake or thatch rake. Check with a garden pro whether to aerate and fertilize.
  2. Garden. Ask a local expert which plants to fertilize before the first frost. For example, you won’t want to fertilize roses because it discourages winter growth and makes them vulnerable to extreme weather.
  3. New plantings. For a nice spring bloom, plant bulbs such as tulips, daffodils, and hyacinths. Day lilies and dahlias are also good for fall planting. To fill bare spots in your lawn, plant cool-season grasses such as perennial rye, bluegrass, and fescue.
  4. Deck or patio. Sweep off leaves and debris. Cover patio furniture or remove and store if you have space. Wipe each piece with damp cloths and dry with towels. Remove or cover your grill and store it if possible. Remove mildew on decks with a solution of 3 quarts of water to 1 quart oxygen bleach and 1/4 cup of ammonia-free liquid dishwasher detergent. Put this in a garden sprayer and apply liberally. Let it set for 10 to 15 minutes.
  5. Gutters. After most of the leaves have fallen, clean out and repair your gutters. Clogged and leaky gutters can flood the basement and cause other water damage to your home when snow melts.
  6. Hoses and Mowers. Disconnect garden hoses and store inside. Turn off water supply at shutoff valve inside the house and open the outdoor spigot to drain it. Drain the gas from your lawn mower and sharpen or replace blades on garden tools.

Going Once, Going Twice…Sold! Put Together an Offer the Seller Won’t Refuse

Submitting an offer on a home and waiting to hear back is one of the most stressful parts of the home-buying process. Since there is always room to negotiate when it comes to price, you want to be sure to put in an offer that the seller can’t refuse or you risk losing your dream home to someone with a higher bid.

While prospective homebuyers are often unaware of current trends in the real estate market, many typically rely on advice and guidance from their parents, friends and coworkers who don’t necessarily have a good pulse on the real estate market.

That’s why educated buyers who have spoken with their agent about an acceptable offer will have a better chance of hearing “sold” when the phone rings. Not only will a good agent offer valuable information, they can also help you buy the home you want at the price you want to pay.

Real estate agents have access to statistics and trend information that others don’t, so their advice is invaluable. But when it comes to submitting an offer, it’s important to keep in mind that it’s about more than just the money. In fact, there are several things you can include in the bid to help foster a successful deal.

When it comes to getting a bid accepted, first-time homebuyers often have a significant advantage over repeat buyers because their agent is instrumental in advising them to not only take the time to get pre-qualified, but to also be pre-approved for a mortgage before they even begin looking for a home. And since they don’t have to wait for another house to sell, their offer will be attractive to someone looking to sell a home.

Another thing to keep in mind is the fact that sellers are typically attracted to “clean” bids. A clean bid is one in which the buyer doesn’t ask for any contingencies, repairs or updates to be done. In the end, sellers are happiest when they can simply collect their money and move out quietly.

Buyers should also plan in advance to have funds available for a fast closing. Many agents will tell you that even if you’re not the highest bidder, your bid may still be accepted because you are willing to close right away.

Before making an offer, be sure to talk with your agent and decide what you’re willing to give up in order to have your bid accepted, as it could be the most important bid you ever place in your life.

For more information on increasing your chances of having your offer selected, contact our office today.

How to Survive Selling Your Home!

Once you’ve decided to sell your home, your agent should develop a selling strategy that attracts offers and a plan for overcoming the hurdles that can delay your sale.

Here are tips to smooth out potential bumps in the road before you even hit them and to make sure your transaction finishes as fast as possible.

1. Trust your agent – Hiring an experienced real estate agent will make the selling process a lot smoother.  Your agent is your best source of advice to position

your home favorably against the competition because they get nothing until your house is sold.  Tap into their insight on

  • showing prep tips for attracting motivated buyers
  • contractor referrals for sprucing up your property without breaking your budget.
  • common expectations and restrictions to save time and energy during negotiation.

2. Outwit the competition with incentives with other houses nearby or in the same price range for sale, it helps to sweeten the pot for a buyer who’s on the fence.  Throw in those floor to ceiling bookcases, custom window coverings or a flat panel TV. Talk with your agent about the best incentives to offer in your area and come up with a way to publicize them on all of your home’s marketing materials.

3. Expect to negotiate.  Offers and counter-offers keep your potential sale alive. Negotiations are less stressful when you decide in advance how low you’re willing to go early.  Ultimately, you decide what to accept, but talk to your agent early about your expectations and stay open to his or her advice on what price best in today’s market

4. Cement the deal with back up offers and research.  Your house is yours until you give a buyer the keys.  So, do the research and prep with a plan “B” in case something goes awry with your primary offer.