When buying or selling a home, the topic of closing costs is bound to come on the horizon. It takes a village to purchase or sell a home, with several different people playing a role in the real estate transaction. Buyers, sellers, real estate agents, and inspectors are just a few of the different people who dip their toes in the experience. Closing costs are the fees associated with the various services required to close the sale. But what do these closing costs include and how should buyers calculate them?
In this article, 180 Homes will explore what closing costs include, how to calculate closing costs, as well as some helpful tips for buyers and sellers looking to close their real estate transactions seamlessly. With our helpful guide, you’ll approach your home buying experience with welcomed transparency. What Are Typical Closing Costs? Closing costs are the fees associated with finding a home, securing a mortgage, placing an offer, and closing the real estate transaction. Purchasing a home isn’t as simple as choosing the perfect property and grabbing the keys, there are numerous steps along the way that might have fees associated with them. Closing costs will vary widely based on the property type, perceived value, and manner of closing escrow. Let’s explore some of the most typical closing costs:
Does the Buyer or Seller Pay Closing Costs Some closing costs that sellers might be expected include:
How to Calculate Closing Costs: A Helpful Guide Understanding how to calculate closing costs is highly dependent on understanding where these closing costs originate. The closing costs we’ve reviewed are only a fraction of the potential fees that can accrue during the transaction. Employing the help of a real estate agent or attorney can vastly improve your ability to anticipate and calculate these costs. These professionals will have a strong working knowledge of the entire process, which can be very helpful down the line. While each property will vary, the average cost of closing costs is 3-6% of the home’s price. Here are some helpful tips for calculating closing costs so that you’re not blindsided at the end of your real estate transaction. Gather an Estimate for the Cost When getting approved for a mortgage, the lender will usually be able to provide an estimate of the anticipated closing costs based on the home’s value, estimated down payment, and mortgage interest rate. Since many closing costs are based on a percentage of the home’s value, an accurate estimate is crucial for securing those funds down the line. Gather a Full Breakdown of All Costs Now that you have an idea of the home’s price point, it’s much easier to break down the potential closing costs. These closing costs will include lender services, appraisal fees, and clerical items such as insurance, property taxes, and titles. We also explored numerous other charges that might be included based on the buyer’s experience. Gather a comprehensive breakdown of these services to calculate the anticipated fees. Research Potential Deductions While some closing costs are inevitable, such as the mortgage application fees or title insurance, some services can be worked around or potentially deducted. For example, some lenders might include closing costs within the mortgage itself, that way buyers can pay these fees off over time rather than making a lump sum payment. Refine and Prepare Based on Findings Once you have a final total for closing costs, make sure that all information you’ve gathered is based on local state requirements and price points. Add up each of the closing costs to determine what will be due at escrow. Another general rule is to always estimate high to avoid unnecessary curveballs. It’s always better to be prepared to pay something and later save cash than not save enough to cover these costs. Get an easy, no-nonsense cash offer from 180 Homes! Sell to us and we’ll pay your closing costs! Sell Your Home Fast with Help from 180 Homes! Whether you’re a first-time homebuyer or you’re simply looking to save money wherever possible, understanding how to calculate closing costs plays a substantial role in any real estate transaction. By anticipating these costs and negotiating when possible, buying a home becomes seamless. 180 Homes can help sellers list their property and have a care-free real estate experience. With cash offers that help sellers move on to the next great investment quickly, 180 Homes can expedite the process of selling your home. Contact 180 Homes today to learn more!
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When selling or buying a home, the topic of whether or not a home appraisal should be completed is bound to come up at some point or another. A home or residential property appraisal helps establish a home’s market value, or the likely sales price that the property would fetch if offered in a competitive real estate market. There is value in arranging for a home appraisal as both the buyer and seller – understanding the home’s value can tremendously influence the selling price one way or another. But what is a home appraisal, exactly?
In this article, 180 Homes explores what a home appraisal is and how much it costs, who you would hire to get your house appraised, and some of the benefits home appraisals provide for both buyers and sellers. With 180 Home’s helpful guide, you can approach your home appraisal like a real estate professional and properly anticipate what their results mean for your real estate transaction. What is a Home Appraisal? A home appraisal is a certified appraiser’s report of the estimated value of a home. Whenever someone uses a home or other type of real estate as security for a loan, the lender will order an appraisal to be conducted by a third party licensed real estate appraiser. Lenders will typically only lend to a borrower 65-80% of a home’s value on most standard loan products. In order to provide an accurate loan amount, the lender needs to have an accurate idea of the property’s worth. So, to determine the loan amount, the first step is determining the objective value of the property. This step is critical from the lender’s perspective because it reflects the likelihood the property will sell for at least the amount of their investment in it. A home appraisal is typically centered around the research of comparable home sales nearby. the appraiser’s analysis of the home, and the appraiser’s overall judgment of the property they are inspecting. The reason mortgage lenders will require a home appraisal is to gauge the risks of extending the loan. If the borrower defaults for any reason, the lender seeks to ensure they are still in a strong financial position to get their money back via the sale of the home. Home Much is a Home Appraisal? Some might wonder how much a home appraisal costs. A home appraisal’s cost is typically in the $300-400 range but can vary widely based on the home’s location. For example, in some metropolitan areas, the fees and quote for a home appraisal might span between $600-$1000 for a larger property. In terms of who pays for the home appraisal, that depends on if a mortgage is involved. In the case of there being a mortgage, the lender hires an appraiser, with the home buyer paying for the appraisal. Likewise, if a homeowner is refinancing a mortgage, they will front the bill for the appraisal as well. Once the physical inspection and sale analysis has been completed, the appraisal service will provide a home appraisal report. What is Included in a Home Appraisal Report? Appraisers are licensed by their respective states after completing coursework and/or a job internship that helps them become familiar with their local real estate markets. The appraisal process itself begins with a thorough inspection of the property being appraised to determine the true physical condition of the property. The time it takes to complete a home appraisal will vary based on the property size and complexity. The appraiser will look at features like the number of bedrooms and bathrooms to ensure that they really exist and are in good condition. Most important, the appraisal looks for any obvious features or defects as well as recent upgrades, updates, and improvements that would affect the value of the house. There are numerous factors that an appraiser will consider when completing a home appraisal. Some of the most common factors that will be reflected within the final calculation of a home appraisal include:
Why Would You Get Your House Appraised? Now that we understand what a home appraisal is and what goes into a home appraisal report, it’s time to explore why home appraisals are so important. We’ve covered that home appraisals are a necessity when buying or selling a home with a mortgage and when refinancing a mortgage because the amount a lender will lend is directly tied to the property’s value. While this is the most common scenario for ordering a home appraisal, there are a few other occasions when an appraisal is appropriate.
Benefits Of Home Appraisal for Sellers If you’re on the selling side, a home appraisal shows you how much you can realistically ask for your house. The appraised value should not be confused with the asking price, offer price, or sales price. Asking price is what a seller indicates as a fair and reasonable offer for his/her home. A seller is free to set whatever asking price he/she chooses. An offer price is based on the buyer’s discretion and the sales price is the final transaction price. From the seller’s standpoint, a low home appraisal indicates that the asking price needs to be lowered to realistically sell the property in a timely manner. Gathering information about comparable homes nearby and understanding the details of your home that you might not notice or even know, like a larger lot size or nearby schools. If the neighborhood’s nearby homes are also not selling, speaking to an appraiser may be able to increase the appraised value by their inspection of other attractive features that might drive the value up. Benefits of Home Appraisals for Buyers If on the buying side, a home appraisal shows the home buyer a black and white picture of the home’s value. By understanding the home’s appraised value based on the factors we’ve covered above, as a buyer, you can ensure that the price you’re paying is indeed in line with what the banks consider a fair market value. By having a clear picture of a market value, buyers can make an educated call on their offer price. An offer price, on the other hand, is a number that the buyer feels he/she is willing to pay after an appraisal has been completed. A home appraisal may be an accurate reflection of the true market value of a home, or an attempt by the buyer to purchase the property at a considerable discount. As a buyer, you should always look out for sellers that are asking for a price much higher than the home’s value, because this tremendously impacts the bank’s loan amount. The sales price is what the buyer and seller actually agree upon through negotiations; it generally lies somewhere between the asking price and the offer price. Contact 180 Homes for All Your Real Estate Needs As a home seller, you may wonder if there is a way to skip a home appraisal for your home. We have good news! Here at 180 Homes, performing a home inspection or home appraisal is NOT a contingency of our cash-as-is offer! Since we’re paying cash, a third-party appraisal isn’t needed the same way a typical financed buyer would require. If you’re interested in a less stressful real estate transaction, 180 Homes is the trusted resource. Learn more about 180 Homes' simple as-is cash offers TODAY! If you’re selling your home and wish to forego the home appraisal process, your best bet is to find a cash buyer for the home. 180 Homes can help you skip the home appraisal, with our cash as-if offers on Long Island homes. We can help home sellers achieve their real estate goals and avoid the pesky back-n-forth process of finding a seller and getting to escrow. Contact 180 Homes' today to learn more! Dealing with an inherited property or a property in probate can be a difficult and time-consuming process. Because of the many laws associated, an inherited property can take months before the title changes hands. When it finally does, you can be left with a property that hasn’t been updated in years and is in dire need of maintenance.
In this article, we’ll describe the process of selling inherited property to better understand how to navigate the real estate market once this situation occurs. With 180 Homes’ help, you’ll be able to sell an inherited property much easier. Common Challenges When Selling An Inherited Property If you are faced with this type of situation, it is important to focus on the high-priority hurdles first. Here are the four biggest challenges to selling an inherited property with deferred maintenance:
Limited Capital to Fix Up When inheriting property, your money may be tied up in other properties, credit may be maxed, or you not have the capital to do the work the property requires. Buyers almost universally want to buy a turn-key property unless they get a discount. If you don’t make improvements, your buyer pool will be limited and it will be reflected in your sales price. You can try finding capital through credit cards, private lenders, or short-term partnerships, but each option has drawbacks. High Carrying Costs The biggest issue with not selling inherited property is the carrying costs. Every month you own the property, you cover property taxes, insurance, utilities, and many other expenses. By not selling inherited property quickly, you can fall behind, forcing more desperation and prompting you to make decisions with the property you normally wouldn’t. Selling A Property That Needs Work Without the capital to make improvements, the sale of the inherited property might be in an as-is condition. You essentially defer the responsibility of the improvements to the buyer. Many buyers lack the desire or financial wherewithal to throw money into a new home purchase. Buyers can struggle coming up with a down payment, let alone money for improvements. This leaves you with a buyer pool of investors and buyers looking for a discount. Lack Of Local Market Knowledge An inherited property might not come from your immediate family, it could be from an extended family member. This requires a different strategy, regardless of what you want to do with the property. Make the right improvements for the market to maximize the profit and expedite the sale. The Sale of Inherited Property FAQ Lets Answer some of the most commonly asked questions about Inherited Properties:
What is the Timeframe for Selling an Inherited Property? Going through probate can be a long and grueling process, even with a will. By the time you take ownership, you can feel drained and beaten down. The last thing you want to do is wait another extended period to complete your improvements and wait for a buyer. If there is an extensive amount of work needed in the property, you have two choices.
Can Siblings Force the Sale of Inherited Property? If a will/trust exists, one of the heirs will be the executor. The executor is the decision-maker and has the power to sell the property without permission from other heirs. But sometimes, no executor is chosen, which is a challenging situation for the heirs. Three things can happen:
How Does Selling Inherited Property Affect Taxes? When selling inherited property, you may have to pay capital gains tax if you earn a net profit from the sale. The federal government will tax a portion of the amount you profited. The current capital gains tax rates are 0%, 15%, or 20%, depending on tax brackets. When you sell a home normally, you would pay capital gains tax on what you earned from the sale compared against the original price. Inherited properties work differently. With inherited properties, the home is appraised after the death and given a market value. Let’s assume that an owner dies and the house is given a value of $400,000. If the house sold for $450,000, the tax basis would be $50,000. This is a stepped-up tax basis, the home’s original value is not a factor. 180 Homes & Properties, LLC is not a tax expert. If you're seeking tax advice, be sure to consult with a certified tax professional. Contact 180 Homes Today to learn more! When buying a home, the question of what type of mortgage you’d like to select is bound to come up if you’re not planning on purchasing the home with cash. This is when an adjustable-rate mortgage (commonly known as an ARM) or a fixed-rate mortgage comes in. Which type of mortgage is the right one for you? It’s always smart to go into any real estate transaction with a clear idea of what you’re signing up for, and by knowing what an adjustable-rate mortgage is, you can choose the best mortgage for your needs.
In this article, 180 Homes explores what an adjustable-rate mortgage is, some of the pros and cons of adjustable-rate mortgages, and how to determine whether or not an ARM mortgage is a good idea for your real estate needs. What is an Adjustable-Rate Mortgage? An adjustable-rate mortgage is a home loan that features an adjusted interest rate over time, influenced by the latest market trends. An adjustable-rate mortgage usually begins with a lower interest rate than a fixed-rate mortgage, which makes an ARM a preferred option for home buyers that are seeking the lowest possible mortgage rate when first owning their home. The main difference between a fixed-rate and adjustable-rate mortgage is that there is more certainty in a fixed-rate mortgage. In a fixed-rate mortgage, the interest rate stays the same for the loan’s lifespan, creating consistent monthly mortgage payments. Adjustable Rate Mortgages, however, start with a period of a fixed interest rate and then adjust to whatever the market interest rate is at the end of that time period. The duration of this fixed time period is unique to each ARM. For example, some borrowers will see a fixed period of 5 to10 years. Once the introductory fixed period has ended, the monthly payments will begin to fluctuate periodically to be aligned with the market interest rate at the time. It’s important to factor that in before moving forward with an ARM because budgeting for payments is influenced by market trends. Pros & Cons of Adjustable Rate Mortgages So now that we understand what an adjustable-rate mortgage is and how they vary from a fixed-rate mortgage, it’s time to go over some of the benefits and drawbacks of an ARM. Naturally, every buyer is different when considering their budget and preferences for making timely mortgage payments. Thankfully, by taking the time to understand how ARM loans work, buyers can better understand how to prepare for fluctuating monthly payments. Advantages of Adjustable Rate Mortgages The first and most obvious advantage of an ARM: they are typically LOWER than their fixed rate counterparts. ARMs provide predictable and comparatively low payments for the introductory period. This allows new homeowners to build up their savings, and properly budget for payments that may increase down the line. An ARM also allows for some wiggle room for those who wish to move in a fairly soon time frame, such as for those with a starter home. An ARM’s low monthly payments are great for homeowners that need to move to a new area shortly after buying their property. By moving away before the introductory period ends, they are relatively unaffected by the increase in interest payments down the line. Suppose the homeowner wishes to sell the home before the interest rates adjust. In that case, the adjustable interest rates won’t complicate their budget because the mortgage will shift to the new homeowner. Lastly, one of the most attractive features of an ARM is its ability to provide increased financial flexibility. If you have other financial goals outside of your home, like investments in other properties, the low monthly payments can help you build savings during the introductory period. While a price jump might occur once the fixed period ends, the time you spend saving during the low-interest period can protect your finances from being negatively impacted down the line. Disadvantages of an Adjustable-Rate Mortgage Now that we’ve explored some of the advantages of an ARM, let’s go over some of the potential downsides of this mortgage type. The biggest risk when choosing an adjustable-rate mortgage is the inability to predict what the interest rate will be after the introductory period. This is most important in a RISING interest rate climate. The risk of abrupt and/or unexpected increases in interest rates that are inherent with ARMs could lead to a sudden increase in mortgage payments to the borrower. This of course could lead to financial stress and/or an inability to continue to make payments on the mortgage. Having a confident idea of your financial position might become difficult with fluctuating payments, and that instability might keep some home buyers away from choosing an ARM. Deciding whether or not an adjustable-rate mortgage is the best move for you will depend highly on what you’re looking for out of your future mortgage payments. If you anticipate that you will not be living in the home for longer than five years, there are relatively no risks to choosing the lowest interest rate on the mortgage, because you can save money for future real estate ventures more easily. But if you’re planning on living in the home for longer than the introductory period, it might be smarter to choose a fixed-rate mortgage if you don’t think you’ll be able to save up money for increased monthly payments. Everyone’s mortgage needs are different, but an adjustable-rate mortgage is a valuable option for first-time home buyers that are looking for affordable monthly payments. Are you wanting to sell your home on Long Island? 180 Homes can expedite the real estate transactions by extending cash as-is offers, allowing homeowners to move forward in their real estate goals. Contact 180 Homes Today to learn more! More often than not, real estate transactions can get tricky, especially if you’re inheriting a property where the previous owner has passed away. Whether a property has fallen into your hands or you’re dealing with the death of a loved one, conveying ownership can tack on several months to the real estate process and become a cumbersome experience. Understanding how real estate is conveyed upon death can help new property owners navigate the real estate experience and help them protect a personal asset they are now holding.
What does Conveyance Mean in Real Estate? To understand what conveyance in real estate means, let’s begin with its simplest definition. Conveyance is the transfer of ownership of property between the seller/conveyor and the buyer/conveyee. Real estate conveyance is accomplished by using a tool for conveyance, like a lease, contract, or deed. The legal title is transferred to a new owner by executing the document, effectively finalizing the property lien. Conveyance in real estate is a very important step in any substantial real estate negotiation and is why so many new home buyers will purchase title insurance. Depending on which state you reside in, it may be expected for home buyers to pay a conveyance tax or real estate transfer tax. If you’re buying a home or a property falls into your hands, the conveyance process is the only way to obtain legal verification of the property’s true ownership. Conveyance in real estate clarifies that if one party wishes to break the contract used to transfer ownership, the other party can take legal action to enforce conveyance. In 180 Homes’ helpful guide, we’ll explore what conveyance in real estate is so that future property owners can know what to expect. Here are some scenarios to help determine how a piece of real estate is conveyed upon death.
Transfer Property Fast with 180 Homes! Buying, owning, or selling a property after an unexpected death can certainly have its challenges. Within these challenges, there can be many steps to be followed before a descendant can have the legal standing to sell an inherited property. Luckily by understanding what conveyance in real estate means, navigating challenges can be simplified. If you’ve inherited a property and are considering selling it, Contact 180 Homes to get a Cash Offer. As with any financial transaction, there are choices you should and shouldn’t make when selling your home. The sad reality is that the most common mistakes are arguably the easiest to avoid. Preventing these mishaps is especially important if you are selling or thinking about selling your house independently without a realtor or sales agent. Selling a home alone or even with an agent is an involved process. With so many steps involved, making a mistake now and then might be expected. With more awareness of the most common home selling mistakes, sellers can get the most from their sales.
In this article, 180 Homes will navigate some of the most crucial mistakes to avoid when selling your home. While selling a home can be overwhelming at times, knowing what not to do during the real estate transaction can streamline and simplify the experience for all parties involved. Mistakes to Avoid When Selling Your House Selling a house is a time-consuming process. There are numerous steps involved between listing the home on the market and closing escrow with the seller. The home must be listed on the market, promoted, inspected, and toured by prospective buyers. Price negotiations and offer reviewals also take up some time, followed by the drafting of the real estate contract. Within each step of the process, you should exercise mindfulness to get the most value from the sale. Here are the four home selling mistakes you should consider avoiding at all costs Pricing Too High Anyone that has watched one of the numerous real estate television shows knows about the damage of pricing a home too high. This home selling mistake is a common tactic real estate agents use to get your home sold quicker and create excitement surrounding a property. Unfortunately, inflated pricing can have a legitimate and lasting negative impact on the final sale. In the world of real estate, first impressions are everything. When a new listing hits the MLS, sellers receive instant feedback from agents and buyers. If your home lists too high, agents will scoff at the listing and not give it a second thought. Redeeming the home’s reputation after an exorbitant initial listing price isn’t easy. You may think that by listing aggressively and trying to squeeze every dollar from the property, you will improve your return on the investment. The exact opposite is usually the case. The demand and consumer interest will be far less than anticipated, and after a few weeks, you will need to act. Responding could mean lowering your price or spending money on staging to generate interest from those who already moved on. You are almost always better off asking a reasonable price for your property that is in line with the market first things first. By fairly pricing the property at the beginning of the sale, sellers can ensure they have a healthy batch of competitive offers. Dismissing Offers There is no such thing as a bad offer. Sure, some will be well below the list price, but you should never ignore those offers. Think about how you acquire a property. You try to get the best possible price on any investment. Sellers think the same way and are always trying to get a steal of a deal. If there is a lowball offer, don’t get offended and take it personally. Dismissing an offer is a common home selling mistake, and can be remedied with open negotiations with potential buyers. Always counter at a number you are comfortable with, even if it is just under the list price. If their counter is still not as high as desired, then you can move on. Making the mistake of blindly ignoring an offer can result in leaving money on the table. Many buyers make low offers to see where the sellers stand. As a seller, you should view any offer as just the start of negotiations and move on from there. Stubbornness For any real estate transaction, there should be equal giving and taking. The goal shouldn’t be to dominate every negotiation with potential buyers but to get the property sold. You need to always think about the big picture when selling a home because it’s too easy to get bogged down by the little details along the way. It is very rare for buyers to get everything they desire from the sale, but it doesn’t mean they can’t get reasonably close. Unless you are in the right market and have timed the listing perfectly, you need to be willing to make concessions. Compromise within this scenario could mean slightly coming down on the price, extending the closing date, or changing something in the property. If you say no to everything, your buyer pool may dry up, forcing you to be left with the property for weeks, possibly months, until another buyer comes along. In light of carrying costs, mortgage payments, taxes, insurance, it can sometimes make more financial sense to accept an offer and close sooner, even if it is lower than preferred. Dismissing Staging With some properties, doing quality work and encouraging healthy communication may not be enough. Regardless of whether you are selling a freshly finished rehab or a home you have lived in for multiple decades, buyers need to feel welcomed when they arrive at the property. They should feel an instant appeal as soon as they open the front door, so don’t be afraid of adding some personalities within the home decor to assist in the sale. As much as a blank canvas and limited furniture provide options to the buyer, it may not encourage comfort or make them feel like the property is their home. You should always at least consider staging the property. Sure, staging comes at a cost, but it should be seen as an investment with pending returns. Spending a few thousand on scheduling a few open houses with proper curb appeal and staging can net you five times your investment for the right property. Staging doesn’t work on every home within all real estate markets but for some homes, it can make all the difference. Tips for Avoiding Home Selling Mistakes For first-time home sellers, it’s natural to make a few mistakes when selling your home, especially for homeowners selling their property without the assistance of a realtor. Luckily, by understanding the most common mistakes to avoid when selling your home, the real estate experience can be a much less intimidating time for both buyers and sellers. There are many ways to encourage a quick and efficient sale when listing your home on the market without any prior real estate experience. Here are a few tips for professionally selling a home.
Prevent Making Home Selling Mistakes with 180 Homes There are countless reasons why homeowners might choose to place their property on the market. Knowing how to simplify the real estate process can make or break the seller’s experience in getting the best price possible for their initial investment. The easiest way to create a streamlined real estate process is by knowing what mistakes to avoid when selling your home, from fair pricing to proper staging. 180 Homes seeks to simplify the real estate process even further with competitive cash as-is offers for your home. Get a fair price and expedite your real estate experience with the helpful professionalism found at 180 Homes. Maximize your investments with a real estate company you can trust. Contact 180 Homes today to get started! No one likes it when a good deal dies. Especially when selling your home, it can be disappointing. Whether the property won’t sell due to financial complications or miscommunications, learning that a great offer has fallen through is always a setback in real estate. Unfortunately, home inspections are a well-known deal-killer within real estate. They’re also one of the more preventable obstacles. Sellers often get stressed about a person entering their home with the sole intention of identifying problem areas. If you’ve lived in your home for a long time, it might even feel like a personal attack. Luckily, with enough planning and preparation, a successful and clean home inspection can expedite your home selling experience rather than cause an unnecessary roadblock.
In this article, 180 Homes will explore some home inspection tips for sellers looking to make their inspection go as painlessly as possible. We’ll discuss what buyers tend to look for during inspections, how to pass a home inspection, as well as how 180 Homes can help you sell your home seamlessly! What Are Buyers Looking For During Home Inspections? Preparing for a home inspection is much easier if you know what the inspector will be looking for during the appointment. Countless factors go into a home inspection. The inspector is expected to provide the buyer with a comprehensive and detailed summary of the home’s condition from top-to-bottom. Sellers that have pushed off maintenance tasks throughout the years might struggle with the inspection more than those who have consistently kept their homes in good condition. So what do buyers look for during a home inspection? Home inspections will explore both external and internal characteristics of the property. External Inspection Factors Regardless of what level of preparation is placed on the inside of the home, the exterior will be what provides the first impression for buyers and home inspection personnel. The curb appeal plays a huge role in how they proceed throughout the inner inspection. Here are just a few of the external factors that will affect the home inspection:
Internal Inspection Factors Once a prospective buyer or home inspector enters the house, the little details get involved. No room will be left untouched, so do not attempt to skirt around smaller responsibilities. Some of the internal home features that will play a role in the inspection include but are not limited to:
Home Inspection Tips for Seller Success Now that we understand what buyers and home inspectors will be looking out for during the inspection, it’s time to explore how to properly prepare for the inspection itself. While the inspection might seem daunting, it doesn’t have to be. If you make sure the home is in the proper condition you should only look forward to the inspection’s completion. Transparency is crucial for any successful real estate transaction, and that begins with the inspection. Home Inspection Tip #1: Begin By Completing a Pre-Inspection First things first, put yourself in the buyer’s shoes. Would you want to purchase a home only to learn a few weeks or months down the line that there are major maintenance issues or aged appliances? Likely not. That’s why sellers should begin by completing their own version of a home inspection by inspecting the different features buyers generally check. Start outside, work your way in, and don’t leave any cranny untouched as you take note of property updates or repairs that need to be completed before the new owners move in. By eliminating these issues early, the pending inspection will be much less worrisome. Home Inspection Tip #2: Make Sure Utilities Are On This may seem like an obvious tip, but is especially relevant for those vacant rental properties where utility service may have been discontinued. The home inspector will be checking to see that electrical and gas components of the home are in good working condition. If utilities are NOT turned on, the home inspector won’t be able to complete these steps and likely deem the inspection itself as “incomplete”. Home Inspection Tip #3: Provide Access to Any Important Documents After resolving any issues beforehand, it’s time to secure all important documentation relating to the home. Buyers and home inspection professionals will often ask the sellers to provide paperwork relating to remodeling projects, major repairs, upgrades to HVAC systems or property, etc. The more information you can provide the inspector the better, as this will lead to a more thorough report and additional peace of mind for prospective buyers. Home Inspection Tip #4: Don't Neglect Curb Appeal As we briefly touched on, curb appeal is not something a seller should ever neglect when they have a home inspection on the horizon. When buyers pull up to the property they should feel that they’re looking at their future home. That can become much more difficult if there is an unkempt yard, overgrown ferns, clutter bursting out of a garage, or obvious damage to the home’s exterior. Make sure that as you approach the home people feel welcomed rather than weary. Home Inspection Tip #5: Declutter and Clean Thoroughly This might go without saying but home inspectors don’t love a dirty home. Not only does mess and clutter complicate the inspection, but it can also prevent the inspector from doing their job if it prevents access to certain fixtures (i.e. a sink full of dishes prevents them from checking the sing drainage.) Make sure that the home is cleaned thoroughly and that the home inspector can move comfortably throughout all rooms of the home. Home Inspection Tip #6: Properly Prepare the Home for an Inspection Outside of cleaning, there are quite a few preparations that need to be completed to make sure the home inspection goes well. Small children and pets might seem like a cute way to welcome the inspector, but should generally be taken out of the house to avoid any preventable complications occurring. You should also make sure that you have keys to any areas that are locked, such as a boiler room or electrical panel. This is also the case for any detached areas such as the garage, shed, etc. The inspector will need access to these to complete their checklist. Lastly, if you believe the inspector might find accessing these areas challenging for any reason, make sure to leave some instructions for their review. Home Inspection Tip #7: Provide the Inspector with Enough Time for the Appointment If there’s one way to derail a home inspection quickly it’s rushing the home inspection in hopes that the inspector will miss certain items. Not only is this an unprofessional way to handle any real estate transaction, but it’s also a steadfast way to give the buyer a poor idea of the condition. By providing the inspector with an adequate amount of time to complete his checklist, you’re communicating that you have nothing to conceal and want to resolve any issues that might be noted rather than avoid them. Home Inspection Tip #8: Remove Yourself from the Inspection Space It’s fairly common for the buyer to accompany the home inspector during the appointment to ask questions about the property. That can become more challenging with the seller lingering within the home. It’s highly suggested to plan your schedule around the inspection to guarantee you and your family members are outside of the house when they arrive. Whether that means running a few errands or planning a convenient trip, all pets and people should leave during the inspection for at least 2-4 hours Expedite Your Real Estate Experience with 180 Homes! Not interested in going through a home inspection with your home? We have good news for you! Here at 180 Homes, performing a home inspection is NOT a contingency of our offer! Since we’re paying cash, we don’t need a third party home inspection to obtain financing like a normal financed buyer would. This means less stress, less prep, and an easier transaction for you! Skip the home inspection and go straight to reviewing an offer! Learn more about 180 Homes’ simple as-is cash offers. Contact 180 Homes today to learn more! For homeowners looking to sell their property in a quick and streamlined manner, iBuyers have become an increasingly popular option. An iBuyer, also often called an “instant buyer”, is a relatively new trend in the real estate market and is designed to allow homeowners to sell their homes quickly, assuming many of the responsibilities that typically fall on the seller’s shoulders. But what is an iBuyer? If they are a relatively new concept, with limited iBuyer reviews, are they actually a good option for homeowners looking to make a profit off their homes?
In this helpful guide, 180 Homes will explore what an iBuyer is, how selling a home through an iBuyer works, as well as some of the iBuyer pros and cons so that sellers can know what to expect from this innovative real estate solution. What is an iBuyer? Let’s begin by first covering what an iBuyer is and where it came from. iBuyers are tech-driven real estate companies that operate on an automated valuation model (AVM). The model is designed to determine a property’s value and place an offer on the property within a matter of days. The automation of this real estate process offers buyers and sellers a computerized appraisal that looks into numerous factors to calculate a home’s value, such as the worth of nearby homes and the home’s specific features. This appraisal is determined by using an AVM, which are increasingly popular among real estate companies and mortgage lenders. Similar to real estate investors that make a living from flipping properties, iBuyers intend to implement AVMs to buy properties and resell them for a profit as quickly as possible. An iBuyer may or may not have these intentions (or choose to disclose them to you), but will generally look for properties that are in good condition that way the repair / reselling process is less intensive. iBuyer Pros and Cons: What to Expect Now that we know what an iBuyer is, it’s time to explore some of the advantages and disadvantages of working with one as a seller. When selling your home, you want to maximize profits as much as possible, and depending on your situation, an iBuyer could be either a great option or an ill-advised maneuver. Let’s go over some of the pros and cons so that you can make the best decision based on your real estate needs. Pro: Organized & Efficient When using an iBuyer, the process of selling your home becomes much more efficient because the iBuyer is choosing to forego numerous steps of the traditional real estate process. In fact, some of the selling responsibilities even transfer to an iBuyer in certain situations, such as required inspections, staging, etc. to make it easier for them to sell the home down the line. Additionally, sellers don’t need to work with a realtor, which can be great for those that want to avoid the time-consuming hassle of finding the right candidate to sell your home. Rather than spending an obscene amount of time preparing your home for sale, an iBuyer will take care of and/or ignore theed for many of those things. Pro: Cash Offers A cash offer on a property can bring forth a welcomed windfall, which can be incredibly useful for sellers hoping to purchase a different property later on. Many iBuyers will generate all-cash offers, which is also very helpful for those that are under a time crunch that need to sell their home and purchase a new one soon. Since the offers are cash, they likely are not contingent on getting an appraisal or final loan approval which are common hiccups that come about with traditionally financed offers. This monetary flexibility, added to the certainty that the home will sell through an iBuyer, is a promising option for many sellers. Pro: Speediness If you’re looking for a quick real estate process that eliminates a significant portion of back-and-forth between the buyer and seller, an iBuyer may be a perfect choice. iBuyers eliminates the need for homeowners to find the “perfect buyer”, which is par for the course when using a realtor. Rather than taking months or even years to find a prospective buyer, some iBuyer can close within 24 hours of placing an offer on the property. At the end of the day, the pace will always be set by the homeowner, but an iBuyer is a surefire way to guarantee the process is fast and convenient. Con: Availability & Qualification One of the biggest hurdles to jump through when working with an iBuyer is ensuring your property is the type of home they are looking to purchase. Sadly for iBuyers, not all homes are created equal, and it’s possible for some properties to not even be in the geographic location where iBuyers are operating. If your home will require time-consuming repairs, or on the other end of the spectrum, is very high-end and customized, the property likely won’t be considered. iBuyers are found in specific areas, so make sure that if you’re interested in working with one, it’s a viable option in your local neighborhood. Con: High Transaction Fee's A financial factor to consider is that when selling through an iBuyer, transaction fees should be anticipated. These transaction fees, which can get quite high depending on the company, could even become higher than the typical fees found in a traditional real estate sale, such as closing costs, commissions, etc. Each ibuyer sets their own fee schedule and may vary depending on which one you may be considering. Selling through an iBuyer is designed to streamline the experience, but make sure that the price of convenience doesn’t totally tank your potential profits. Con: Potential for Lowers Sales Price While this isn’t always the case, it’s not uncommon for homes to be sold to iBuyers for less compared to the potential market value. The price of convenience can occasionally take a toll on these sales, as an iBuyer will usually extend lower offers on homes compared to the value on the real estate market. This is mainly because iBuyer companies like Opendoor or Offerpad operate on a revenue model that will generate profits once they resell the home. By offering a lower buying price, they can hopefully flip that and turn a profit. So make sure to do the proper research on your home’s value before diving in and accepting an iBuyer’s offer. Is Working with an iBuyer Worth It? iBuying companies are still fairly new within the real estate market, which is why it can be challenging to find iBuyer reviews that can help sellers determine whether or not an iBuyer is a good idea. Every seller’s circumstances are unique, but if you’re looking for a streamlined, simple, quick, and convenient real estate experience that veers from traditional routes with a realtor, an iBuyer is a great choice. In a market of vast options for selling a home, an iBuyer is a welcomed tool for convenience, so every seller should at least consider them as an option. Contact 180 Homes to Sell Your Home Fast If you’re looking to sell your home fast, and love the cash offers that iBuyers can provide, 180 Homes is the perfect resource for you! If you wish to expedite your home-selling experience, you should learn more about 180 Homes’ simple as-if cash offers. Contact 180 Homes today to learn more! When navigating the real estate market as a seller, it’s always a good idea to know what could raise the value of your property. There are numerous ways property owners will increase their home’s worth, with one of the more common and popular choices being adding an Accessory Dwelling Unit (ADU) to the home. An ADU is a secondary housing unit built on the property, designed to accompany the primary home. ADUs go by many other common names, such as in-law units, tiny houses, or granny flats. As a seller looking to elevate the value of your home, it doesn’t hurt to explore ADU options for your property.
As an increasingly popular way of making the most out of your property sale, the additional housing could prove to be just the thing your property needs to generate interest. But that doesn’t mean you should move forward with an ADU without the proper research first. Read on to learn whether or not an ADU adds value to your home and how much value an ADU adds to determine whether or not an ADU is a good investment for you. Does an ADU add value to your home? An ADU can definitely add value to your home, but that isn’t to say you shouldn’t properly plan and ensure the project is a worthwhile investment. When completing any significant renovation, it’s important to consider whether or not you’ll break even when selling the property. No one wants to dump a significant portion of their savings into a home renovation project only to have it hurt their sale or not pencil out financially in the long run. But the option for secondary housing is a very desirable feature of any home, and with the versatility of different ADUs, they are a viable option for those looking to get creative when upping their home’s value. How much value does an ADU add? Now that we’ve covered how ADUs can increase the value of your home, let’s talk about actual figures. How much value does an ADU add exactly? While this will vary widely based on the primary home’s location, type, and the amount of work needed to complete the ADU itself, it goes without saying that an ADU can increase the final asking price for sellers. Some of the value added, however is non-numerical (i.e. adding value to your lives, to your financial stability, and ability to offer inter-generational housing). But in terms of numbers, a study found that In the largest cities, a home with an ADU is priced 35% higher than a home without one. Some homeowners will add an ADU to rent out to interested renters, which can certainly drive personal revenue outside of a selling situation. Another study found that houses with ADUs improved their resale value by more than 50%, which is something to consider for those that know they may want to sell down the line. Types of ADUs Now that we’ve covered what an ADU is, and how an ADU can add value to your home, let’s explore some of the different types of ADUs. Remember, not all ADUs are created equal, and will always vary based on the property’s location and type. While some homeowners may get creative with their ADUs, they will typically fall into one of three categories: attached, detached, and interior. Let’s look into each ADU type in more detail.
Cost of ADUs One of the main factors to consider when planning an ADU is the cost, which impacts your bottom line and the selling price. Because ADUs will always vary based on the home type, the cost will also vary, so make sure to coordinate with a qualified contractor to plan out the design and potential turnaround. Additionally, the designing and permitting process could increase the soft costs of an ADU, so make sure to request updated information surrounding zoning regulations and permitting for your local area. Some contractors will offer all-inclusive pricing, which can help homeowners prevent any surprise costs down the line. So is an ADU a good investment? Short answer: Yes! An ADU is a great investment for homeowners willing to put in the time, money, and research to plan the right ADU for their home needs. Whether you’re looking to create the perfect space for rental accommodations or simply want to increase the resale value of your home, an ADU is a clever and creative way to do so. Contact 180 Homes to Sell Your Home Fast!! ADUs are a fantastic way to increase your home’s resale value, especially for those willing to put in the work on a home renovation project. However, if the long permitting and building process inherent in building ADU’s is too much of a commitment, 180 Homes can offer simple as-if cash offers for your property! Contact 180 Homes today to learn more! Have you found yourself staring at a Notice of Default? In its simplest terms, a Notice of Default is the first step a bank or lender will take toward the process of a non-judicial or judicial foreclosure on a property, most likely due to an outstanding loan. No one wants to deal with the tiresome foreclosure process, but by understanding what a NOD is, borrowers can better identify a route to resolving this official legal complaint. A NOD should be taken seriously to avoid jeopardizing one’s financial health and future In this article, 180 Homes will explore what a Notice of Default is in full detail, cover how a Notice of Default works once a borrower receives the complaint, and discuss how 180 Homes can help! What Is A Notice of Default?A Notice of Default is a public notice filed with a state court that legally kickstarts the process of foreclosure. NOD requirements and procedures will vary based on the specific state regarding whether or not they impose a non-judicial or judicial foreclosure process. They are generally posted on the property (on a front door or window) to notify the borrower of a mortgage that they are in default on a loan. Borrowers might default on a loan because they’ve fallen behind on mortgage payments, requiring the bank to take legal steps to receive those payments or see their investments resolved. A NOD is filed by lenders once their investments go into default status, and is recorded against the property itself. After a NOD is filed and foreclosure actions are documented and taken, credit bureaus are notified. Foreclosure proceedings and actions may impact a borrower’s credit score negatively, which is bad news for any future mortgage or loan applications. The NOD will include many crucial details, most importantly, the time the borrower has to pay the outstanding balance before the lender seizes the property. Every NOD will include applicable information surrounding the property, typically such as:
How Does a Notice of Default Work?If borrowers wish to avoid experiencing their lender activate the lien and potentially seize collateral for foreclosure, they must understand how NODs work to take the appropriate steps. NODs need to be taken seriously, as your lender is already taking the situation seriously by issuing one. The lender will specify what actions have breached the original mortgage contract, detailing the number of delinquent payments permitted in the contract before a NOD is filed. Typical mortgage contracts will permit a window, usually 180 days, of missed payments before they will take action to file a NOD. Realistically, if a borrower has received a NOD, it’s not a sudden surprise. There has been a pattern of missed payments that would signal a NOD to be filed. In terms of the chain of events, after the NOD is filed, a lender will activate the perfected lien recorded with the mortgage closing, later seizing collateral for foreclosure. Once this happens, the lender can take legal action to ask the borrower to vacate the home or property. Each NOD is unique, so occasionally, the lender will allow the borrower to negotiate by paying off the debt or settling. Each case varies. What Does a Foreclosure Notice of Default Mean for Borrowers?While many NODs will result in foreclosure, there are exceptions. Lenders are financial institutions that are simply trying to minimize investment risk, which results in the automation of many NODs to be filed with the state. For those that have been working with their lender or bank for a long time, the lender may be simply filing the NOD to follow protocol but is willing to be flexible in accommodating the borrower with choices for avoiding foreclosure. The lender might be willing to negotiate the repayment window, help identify ways to get the account up to date, etc. Some NODs may include a negotiation grace period before the next foreclosure steps are taken, which is when a borrower should jump on an opportunity to discuss their option. In some cases, a lender may serve a delinquent borrower with a Notice of Intention instead of a NOD to give the borrower more time to negotiate a solution. The lender may be simply filing the NOD to begin the discussion of bringing the mortgage up to date instead of taking foreclosure steps, which can be financially worrisome. We can close quickly! Get an easy, -no-nonsense cash offer for your property today! Click Here! Avoid Foreclosure and Sell Your Home Fast with 180 Homes!Borrowers faced with a looming NOD should begin by carefully examining the official complaint, taking note of payment windows and breaches of the mortgage contract. Contact your lender to begin a potential negotiation, as no one wants to deal with the consequences a foreclosure could create. If you think the best option is to sell your home, you’re in luck. 180 Homes specialize in CASH AS-IS offers and can close in as soon as 7 days! Contact 180 Homes today to learn more!
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