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Do You Know What These Crucial Real Estate Acronyms Mean?

Acronyms are tossed around like crazy in the real estate world, which can be confusing to even the most veteran home buyers. But don’t worry — it doesn’t take long to learn the language.

Here’s a quick list of the most widely used home buying acronyms and what they actually mean. Of course, if you’d like to know even more real estate terminology, don’t hesitate to call us.

MLS: Multiple Listing Service

The multiple listing service is a massive database of available properties that is split up into hundreds of different regions. If you’ve ever heard someone refer to a home as “on the market,” it means that the home is available on the MLS.

Buyers can search for properties that are on the MLS by using a real estate agent’s website (like ours!), but that’s not the only way to find homes. Your agent can send you updates whenever new properties hit the market.

Want to get these email updates? Call us and we’ll set them up for you!

PITI: Principal, Interest, Taxes, and Insurance

Principal, interest, taxes, and insurance are the four parts of a mortgage payment. Initially, you will pay more toward the interest on the mortgage, but you will start to pay off more of the principal (the initial loan amount) the longer you stay in your home.

Want to see the estimated PITI for your next loan? Check out our handy mortgage calculator on our website.

FHA: Federal Housing Administration

The Federal Housing Administration, or FHA, is a mortgage insurer that offers a variety of home buying assistance programs to help people purchase homes that they otherwise couldn’t afford.

FHA-insured loans generally offer more flexible credit qualifications and a lower down payment. However, borrowers are required to pay for mortgage insurance.

Interest rates and terms depend on the FHA-approved mortgage lender you choose.

PMI: Private Mortgage Insurance

Speaking of mortgage insurance, many lenders require you to have private mortgage insurance (PMI) if you can’t put 20% down on your home. This insurance protects the lender in case you can’t pay off your mortgage.

HOA: Homeowners Association

Want to live in a community with a pool or clubhouse? Chances are you’re looking for a neighborhood with an HOA, or homeowners association.

An HOA is responsible for maintaining common areas and any amenities, and it typically sets standards for how homes should look in order to keep property values up. In some cases, homeowners associations may even include Internet, cable, and lawn care with their HOA dues.

If you’re considering buying a home in a neighborhood with an HOA, check the association’s CC&Rs — Covenants, Conditions, and Restrictions — to see what rules the HOA enforces.

We’ll Help You Speak the Language

Understanding real estate terminology is one of the best ways to start your research as a home buyer. Want to know the meanings of other commonly used terms? Give us a call!

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The Hidden Horrors of Going FSBO (For Sale by Owner)

Many home sellers have considered skipping the real estate agent to save on closing costs, but very few have actually succeeded in seeing those savings. There’s a good reason: the average homeowner doesn’t have the rigorous training and real estate knowledge that a licensed agent does.

But just what makes For Sale By Owner (FSBO) such a bad idea? From incessant inconveniences to costly paperwork mistakes, here are a few of the horror stories that FSBO sellers inevitably encounter.

The Daunting Task of Marketing Your Home

It takes more than a “For Sale” sign in your front yard to make buyers notice your home. According to the National Association of Realtors, 95% of buyers use the Internet in their home search.

This means that online marketing — starting with listing your home on the local listings database, sharing your listing to dozens of social media platforms, and advertising your listing on numerous websites with a global audience — is essential to selling your home.

Without an Agent, Home Marketing Isn’t Cheap

This is where it gets expensive: yard signs, newspaper ads, brochures, high-quality photographs, and a professional-looking website — things real estate agents have at their disposal — are your responsibility to finance and maintain when you have to do your home’s marketing yourself.

Incorrect Home Pricing: The Ghosts of Lost Profits

Even after all that marketing, FSBO sellers don’t actually make more money. In fact, many lose money.

The research backs it up: the National Association of Realtors reports that the average home sold with an agent sells for $240,000. FSBO homes, however, sell for only $185,000. What you could save in commission you lose by pricing your home incorrectly or skimping on the marketing.

Without an Agent, Finding the Right Price is Impossible

Part of the problem with a low-dollar sale is the asking price. Real estate agents have more tools and resources, plus an intimate knowledge of the local housing market, so they can spot a wrongly priced listing from a mile away. FSBO sellers, however, have only limited access to home value tools and resources about past sales activity.

The Mountains of Paperwork

Understanding the paperwork involved in a real estate transaction is one of the biggest challenges of selling For Sale By Owner.

After all, the contract isn’t just an agreement about the price; it also includes contingencies (like those for home inspections and financing), the closing date, and other important terms.

Without an Agent, Sellers Can Make Costly Mistakes

The paperwork involved in a home sale can be complicated and full of legal jargon. An oversight could mean a costly mistake or even a lawsuit. Real estate agents, however, have the knowledge and understanding to take care of all the necessary disclosures.

Don’t Become the Next FSBO Horror Story

Yes, commission is a sizable chunk of change. But so are the hidden fees and lost profits, not to mention the added stress, that come with selling a home by yourself. The best way to save money, save time, and save headaches is to work with an experienced real estate professional.

We’re here to help! Give us a call and let’s talk about the home selling process.

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How Buyers and Sellers Have Lost Thousands of Dollars to Email Scams

Email scams are as old as, well, email, but as the years go by, these scams have become more and more sophisticated. Recently, several home buyers have fallen victim to specially targeted email scams that attempt to rob them of their closing costs — sometimes up to hundreds of thousands of dollars.

These types of scams are devastating both financially and emotionally, especially when your home is involved. But to help protect you from email scams targeting the real estate industry, we have outlined a few tips about what these scams are and how to avoid them.

What Email Scams Are Common?

Though the method through which hackers collect personal or financial information is always changing, there are a few basic types of scams that buyers and sellers should be aware of.

Phishing

This type of scam attempts to “fish” for sensitive personal or financial information (such as passwords or credit card numbers). Many emails used in recent phishing schemes look legitimate; they may use the name of a trusted company or individual as the sender name, but the email address is slightly different than the company’s or individual’s verified address.

These types of email messages may also ask you to verify information or click on a link, which could install harmful software on your computer.

Wire Transfer Fraud

A specific type of phishing email that has been targeting home buyers recently is one that asks buyers to wire their closing costs to another account. The email typically crafts some urgent scenario, such as a last-minute change in wiring instructions, and urges the recipient to act quickly by wiring the money to the new account. This phishing email has led to home buyers losing thousands of dollars — in some cases, the entire purchase price of the house — to scammers. Unfortunately, the money can’t be returned once it’s gone.

Wire transfer fraud scams are especially dangerous because the emails appear to be sent directly from the real estate agent, the electronic signature company, or the title company. There may not be any misspellings or grammatical errors in the email message (which were surefire signs of a scam in the past), the message itself may be friendly and conversational, and any information related to the real estate transaction may be detailed and accurate.

How You Can Avoid Falling Victim to Email Scams

Now that you know what types of scams have plagued the real estate industry, here are a few tips you can follow to prevent yourself from falling victim to a devastating email scam.

Verify that you received an email from the right person. Ensure that any emails you receive are legitimate by contacting the sender directly. Make sure you look up their phone number instead of clicking on the number provided in the email signature, which may be the scammer’s phone number.

Verify that the email address is legitimate. When you receive emails that appear to be from your real estate agent, title company, or attorney, check to make sure the sender’s email address does not contain misspellings, extra characters, or anything unusual.

Never share sensitive information via email. Your real estate agent will never ask you to send sensitive personal or financial information in an email.

Don’t touch an email that looks suspicious. Never click on any links or download any attachments from an unverified email, even if it looks legitimate. These links or attachments could be malware that will harm your computer.

Always use strong passwords. Use passwords that contain letters, numbers, and special characters, and change them periodically.

Update your antivirus software. Protect your computer from malware by ensuring your antivirus is up to date.

Report suspicious emails. If you receive an email that seems suspicious or is in fact a scam, report it to the Federal Trade Commission immediately.

Contact Us to Learn More

We’re aware of scams like these, so it’s our goal to keep you informed whether you’re buying or selling a home. Give us a call and we’ll provide you with any additional resources you need!

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Want Top Dollar for Your Home? Hire a Real Estate Pro

A quick Google search is all it takes to discover hundreds of new recipes, do-it-yourself projects, and tips about how to stage your home. With so much information available online, especially about the home selling process, many homeowners start to wonder whether it’s faster and more cost-efficient to sell their own homes rather than hiring a real estate agent to do it for them. (Spoiler alert: It’s not.)

Maybe you’re just now thinking about selling your home. All those HGTV shows and helpful articles make it look so easy — how hard could it be to sell your home yourself? Or maybe you’re already elbows deep into selling For Sale By Owner and are thinking, this isn’t so bad.

A helpful tip when considering whether to skip right over hiring an agent: Just because you can do something yourself doesn’t mean that you should, especially when it comes to selling a home.

So what makes a real estate agent so invaluable?

What Does a Real Estate Agent Do, Anyway?

Everything from preparing paperwork to negotiating the price and terms — you name it, a real estate agent does it. But what many home sellers forget is that a real estate agent’s job is a lot of behind-the-scenes work.

When you hire a real estate professional, you’re not only benefitting from the agent’s intimate knowledge of what’s happening in the local housing market, you’re also working with a licensed professional who is legally bound to work in your best interests. A few essential elements of their job include:

  • Researching recent comparable sales to determine the best price for your home
  • Spending their own time and money to market your listing
  • Promoting your home through their network of contacts and the Multiple Listing Service (MLS)
  • Coordinating showing appointments and open houses on your behalf
  • Responding quickly to inquiries about your property
  • Writing counteroffers and filling out required disclosures
  • Doing everything they can to help you achieve your goals

Isn’t It Cheaper to Sell My Home Myself?

Commission — a percentage of the sale proceeds that goes to the real estate agents involved in the transaction — is a major factor in the decision to go FSBO (For Sale By Owner) or hire a real estate pro. Working without a real estate agent will certainly save you a few thousand dollars on commission, but there’s a catch.

If You Go Down the FSBO Road

If you decide to go FSBO, you won’t save as much money as you think. You might not even save money at all.

You will have to spend your own time and money to invest in quality photography for your listing, purchase marketing materials (and not just a For Sale By Owner sign), carefully research which home improvements will bring you the most bang for your buck, and list your home on the MLS, just to name a few.

This all assumes that you price your property correctly, manage to entice more than a couple of buyers with your marketing efforts, investigate whether interested buyers are actually qualified to purchase your home, make all the right repairs so no red flags surface during the home inspection, and don’t make a costly mistake involving disclosure forms or the contract!

If You Work with a Real Estate Agent

Since real estate agents are licensed professionals, they are experts at handling all the details of your transaction. They will help you avoid costly mistakes, negotiate the best price and terms for your property, and ensure that it sells for top dollar.

At the end of the day, working with a real estate agent instead of going FSBO will save you time, money, and headaches.

Okay, I’m Convinced — What Do I Do Next?

If your goal is to sell your home quickly and for top dollar, we can help. We’re more than happy to share our wealth of home selling resources, including staging tips and a home evaluation. Give us a call and let’s talk about your plans.

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3 Home Selling Prep Essentials

You’ve got to start somewhere when preparing your home to sell, but it’s not where you would think. Before jumping right into cleaning, decluttering, staging, and marketing, take some time to review. Having a solid understanding of the real estate market and the home selling process is essential for a smooth and stress-free sale. So let’s get to it.

1. Know What’s Happening in the Real Estate Market

Are homes in your community flying off the market in just a couple of days? Are properties selling over asking price again and again? What have homes like yours recently sold for? Knowing about current market conditions will give you an idea of how quickly your home is likely to sell, as well as how high a price you’re likely to receive. Ask us for a Neighborhood Sales Report for an inside look at market activity!

2. Find Out How Much Your Home is Worth

You’ve probably asked yourself “what’s my home worth?” a dozen times over the past few years. Now’s your chance to learn the answer!

When we’re determining how much homes are worth, we don’t just pull a number out of thin air. Home buyers are the ones who determine what properties are worth, so we take a look at current market activity (which you’ve already done!) to see how much buyers are willing to pay for homes like yours. At the end of all of our research, we have a detailed report of what your home is worth, which in the real estate industry is called a “comparative market analysis.” Call us and we’ll provide one for your home!

3. Wait Before Making Drastic Home Improvements

Before you decide to shell out thousands of dollars to completely gut your kitchen and bathrooms, talk with a real estate agent who’s familiar with your community and what buyers are looking for in a home like yours. You may be surprised to learn that your potential buyers don’t want top-of-the-line appliances, quartz countertops, under-cabinet lighting, or any of those “must-haves” that you see on HGTV.

Save yourself the time, money, and headaches and talk with us. We can tell you which home improvements are worth the money and which ones aren’t.

Bonus Tip: Find the Right Real Estate Agent

The best way to save time, money, and unnecessary headaches? Work with a professional. The best real estate agent takes the time to understand your goals, provides you with the resources you need, and tells what to expect when selling your home. Plus, your real estate agent will be there to answer any questions you have at any time in the process.

We’d be happy to talk with you about your plans to sell your home. Call us!

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What’s Hot in Home Design This Summer

Bright sunshine, warmer days, and a ton of new trends come with the change in season, and this summer certainly won’t disappoint. In the real estate world, these new trends revolve around the latest and greatest in wall colors and decorations, space savers, and creative living arrangements. We have our eye on a few interesting home décor ideas and hot home features that we think you’re going to love!

Marble: A Sophisticated Look for Summer

Whether natural or imitation, marble is one of the top home décor trends for summer 2017. Designers are incorporating this luxe look into bathrooms and kitchens as expected, but they’re also taking it to everything from flower vases to side tables.

Vintage Looks are Back in Style

1960s floral patterns have resurfaced in today’s home design magazines. Old World-inspired indigo dyes are popping up in everything from fabrics to bedspreads. Colorful melamine dinnerware is becoming popular in indoor and outdoor table settings. These nostalgic summer looks are sure to create the perfect feeling of “home.”

Today’s Buyers Crave These Trendy Home Features

Seasonal trends are not all about home décor. Outdoor entertaining spaces and smart-yet-sophisticated interior features are what buyers are searching for this summer. Are these popular home features on your must-have list?

Private Swimming Pools

With warm, sunshine-filled days ahead for summer, pools are at the top of most buyers’ home search lists. Backyard pools continue to be sought-after as both a focal point and a fun outdoor entertaining space.

Lighter Hardwood Floors

Darker shades are out; bamboo, oak, and pecan flooring are on buyers’ must-have lists this summer. With these lighter shades in your living spaces, your home will seem even more light-filled and spacious.

Spacious Open Floor Plans

This home design trend continues to be popular among home buyers. It’s not hard to understand why! Open floor plans create an effortless flow into any home and maximize every square inch of space.

We’ll Help You Find Your Dream Home

Have these décor ideas and trendy features on your mind as you search for a new place? We can help you find the perfect home and move you quickly through the process. Call us and let’s chat!

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When It Comes to Home Staging, Start Small

The secret to selling your home for more money in less time is all in how you present it. Your home should look so beautiful—both online and in person—that home buyers can’t help but fall in love at first sight. The best way to create that wonderful first impression? Start small and focus on the details. Here are a few simple home staging tips that can have a significant impact on your home sale.

Start with Your Entryway

Home buyers decide whether a home is worth a visit based on how it looks in listing photos. You can impress buyers in seconds by paying special attention to the area around your front door. Make sure your entryway is well lit, is free of clutter, and looks inviting. (Feel free to ask for a second opinion from a friend, neighbor, or even your real estate agent.)

When it’s time for showings, don’t let a squeaky front door ruin a buyer’s first impression of your home. Spray WD-40 on creaky hinges, tighten any screws that are loose, and take care of any other issues well before the first home buyer steps over the threshold.

Move On to the Kitchen

Kitchens and bathrooms sell homes, as the saying goes. Follow these tips to enhance your kitchen’s appeal:

  • Replace old knobs and handles with stylish new hardware to give your kitchen an updated look.
  • Decorate your counters with bowls of fruit or potted plants to create an artsy pop of color.
  • Store unnecessary appliances and clutter out of sight.
  • Replace any light bulbs that have burned out.
  • Prior to showings, bake cookies to make your kitchen smell like home.

Focus on the Bathrooms

Nothing makes a better first impression than a squeaky-clean bathroom. Wipe down all surfaces including the inside of your toilet, eliminate any surface mold and grime from the bathtub or shower, and lay out a stack of carefully positioned hand towels as a finishing touch.

Make Your Windows Sparkle

Clean your windows inside and out, and replace any screens if necessary. Since it’s a smart idea to open your windows and let the natural light in, you can impress potential buyers with how well you have maintained your home.

Want More Home Staging or Home Selling Tips?

When you focus on these small home staging tips, it will be easy to attract home buyers to your front door and impress them with the details. If you would like additional home staging and cleaning tips, or if you’re considering selling your home and want to talk about your plans, contact us. We are happy to help.

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Say “Hello” to Warmer Weather: Spring Home Décor Tips for 2017

Nothing says spring quite like a bouquet of fresh flowers sitting on the coffee table and the sun streaming through the windows. Homeowners love any excuse to freshen up their home décor and welcome the new season, and if Pinterest is any indication, people love to bring the latest trends into their living spaces.

Stay on Top of the Trends with Your Spring Home Décor

Flowers, plants, and cheerful colors are traditional staples of springtime, but 2017 has a few unexpected twists for interior decorating. Looking for inspiration for your own home? Here are just a few home décor ideas to try.

Decorate Your Home with “Greenery”

Pantone’s Color of the Year is a vibrant, nature-inspired hue called “Greenery,” and it’s sure to liven up your living spaces.

Showcase Soft Textures

Velvet, cotton, and plush yarns are textures of choice this year. Bringing these soft, luxurious textures into your home, either with new furniture or decorations, will make you feel even more cozy and comfortable.

Use Navy as an Accent Color

One hot spring home décor idea for 2017 is using navy as an accent color for cabinets, walls, or couches. Rather than black, which can make rooms look small and uninviting, navy enhances your living spaces and creates a modern look.

Go Neutral with Your Home Décor

Out with the bold, in with the new—muted colors, that is. A popular spring home décor trend that’s on the rise is using neutral colors like white, beige, pale gray, or even a faint pink.

These colors will help you create clean, sophisticated, and welcoming spaces that will impress both you and your guests day after day.

Spring Home Décor Impresses Home Buyers, Too

Since spring is a popular time for selling homes, many homeowners turn to spring home décor trends for home staging and curb appeal ideas.

Are you selling your home this spring? We can help! Contact us for more tips to prepare your home for showings and increase your home’s value. When you’re ready to put your home on the market, just give us a call.

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7 Crucial Questions

Your home is likely the largest financial investment you have, so it makes sense to carefully choose the right agent to represent you when you sell it. The best real estate agent will walk you through the whole process, showcase your home in the best light, give you feedback from showings and open houses, and let you know whether you should accept a buyer’s offer up front or negotiate for a higher price.

It’s a good idea to talk to more than one listing agent before you sign on with one. As you’re interview listing agents, ask these questions so you can determine which agent will best help you sell quickly and for the most money possible.

1. What’s Your Real Estate Experience?

A listing agent who has been in real estate for several years or has sold plenty of properties has seen all kinds of scenarios. If this agent has overcome challenging home-selling hurdles before, he or she will know how to avoid or mitigate these stressful situations during your home sale, should they arise.

2. What’s Your Sale-to-List-Price Ratio?

This percentage will tell you if this agent consistently sells homes close to or over the list price, which is the price that’s set when the home goes on market.

3. What are Your Average Days on Market Stats?

In other words, how quickly do sellers’ homes go under contract with this agent? Agents who sell homes quickly often use advanced marketing or advertising techniques and are highly skilled negotiators.

4. How—And How Often—Will You Contact Me?

How frequently does the agent you’re interviewing provide updates or check in with his or her sellers? The best real estate agent will keep you updated about everything that’s going on with your listing—and contact you over your preferred method of communication, whether it’s email, phone call, or text.

5. When are You Available?

If you contact your listing agent after office hours or on the weekend, is your agent going to get back to you before Monday morning? If you work regular 9-to-5 hours, getting in touch with an agent who also only works those hours might prove difficult or inconvenient.

6. How Do You Plan to Market My Home?

Marketing is key to getting your listing in front of as many buyers as possible, including those searching online for properties, glancing at magazine and newspaper ads, and driving by homes that are for sale. During the interview phase, ask for the specifics of each agent’s marketing plan.

7. Can You Give Me at Least Three References?

Ask the agent you’re interviewing for testimonials from past home sellers—which can include online reviews or video testimonials—or a list of references. Call the agent’s past clients and ask general questions about their experiences to get an idea of the agent’s responsiveness, helpfulness, and tech-savviness.

We’re Available to Answer All of Your Questions

We’d be happy to answer your questions about listing your home, whether they’re these seven essential interview questions or general questions about the home selling process. Just give us a call or shoot us an email.

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Beat the Winter Blues with Colorful Home Décor

The winter holidays and New Year’s have come and gone, and so have all the decorations. With no twinkling lights or festive ornaments brightening up its main living areas, your home can start to look a little bare. Not to worry! Here are a few winter home decorating ideas that can cheer you up and bring back the holiday sparkle. And if you’re planning to sell your home this season, these tips will also help you impress potential buyers with your warm, welcoming home.

Keep the Wreath on Your Front Door

A splash of color in your entryway can bring a smile to your face even on the gloomiest winter mornings. Add sprigs of holly, frosted pine cones, or a colorful bow to an evergreen wreath and hang it over your door for a fun and festive winter look. (Plus, home buyers pay special attention to your entryway, so a seasonal wreath is key to creating the best first impression.)

Get Cozy Around the Fire

Have a fireplace? Turn it on! Nothing beats a peaceful winter evening reading or sipping coffee by a crackling fire.

Spice Up Your Home

Cinnamon, vanilla, and spruce are cozy wintertime scents that can add a touch of magic to your home. The fragrances from scented candles will complement your winter home décor nicely (and create that special feeling of “home” for potential buyers).

Swap Holiday Colors with Winter Palettes

An effortless way to transition from holiday décor to winter décor is to switch color schemes:

  • Gray, white, silver, and turquoise
  • Red, silver, and white
  • Dark brown, dark purple, and reddish orange
  • Pale green, beige, and copper
  • Navy, beige, and white

Let the Winter Sunshine In

Keeping the curtains closed can make your home look dreary. Brighten up your living spaces with natural light during the daytime, and light a few candles when the sun goes down. Buyers love homes that are cheery, bright, and spacious; opening the windows not only fills your home with light, it also makes your home appear larger.

Keep Winter Blues at Bay When Selling

If you’re planning to sell your home this winter, keep these winter home décor tips in mind. Home buyers want to feel cozy and comfortable in a place they’ll soon call home; a bright and cheery interior will leave the best impression. We’re more than happy to talk with you about selling your home. Contact us if you’d like more staging tips and home selling resources.