Traditional lore says that the best time to list your home for sale is spring and if it hasn’t sold by the end of summer, you’re out of luck. Along the same lines, homeowners across the country are often advised not to list in the fall and wait until after the holidays to list. The truth is that a great home will sell at any time of year and in fact there are some very good reasons to list in the fall, while everyone else is busy doing other activities.
4 Reasons to Sell this Fall
1. Less Competition – As mentioned above, most sellers list in spring so as a seller, fall provides you less competition which increases the opportunity for buyers to view your home.
2. Serious Buyers – Home buyers in fall often have a timeline to move before the holidays. They tend to take the home search seriously and move to write offers faster and avoid wasting time.
3. Curb Appeal – Fall is a beautiful time of year and homes always seem cozier as the weather turns. Fall colors in the trees and the scent of baking entice buyers to feel “at home” which encourages offers.
4. Closing is Easier – The pace of home sales slows during the fall; as such lenders can move faster and the process tends to take less time.
The last and best reason to sell this fall is that it’s the right time for you and your plans. Regardless of whether you are relocating, moving up or scaling down, if this is the right time to sell, then this is the best time to sell.
Drum roll please – Pantone has chosen Classic Blue as their color of the year. Over the past couple years, bold colors on walls has become common place in designer magazines and new model homes. Bucking the old guidance of using bland, light hues to make rooms look larger, deep greens, rich reds and even soft blacks are used in even the smallest spaces. This year, Pantone has chosen a fresh Classic Blue to inspire homeowners and designers in 2020.
Classic Blue is just want it sounds like – as classic. Think of your favorite sneaker or school binder and you’ll be right on track. Described as a calming, familiar azure, Classic Blue is an uncomplicated, straightforward tone intended to provide a “neutral” backdrop for modern color palates and urban chic styling.
Modern interior design has been trending towards more unassuming color schemes for furniture, flooring and accents. Kitchens sport sleek white cabinets and subway tile counters and backsplashes. Tone on tone design with urban elements of steel and soft wood tones lend themselves to this fresh blue hue. Pantone suggests that the simple color palate of blue and white is a comforting return to more traditional styling and expects that Classic Blue is the perfect wall color to compliment the Mid-Century and 60s décor that have emerged with a modern twist.
A great weekend project for a room or rooms, Classic Blue would add a fresh look to any space.
A down payment is the amount of cash a home buyer puts toward the price of a new home. It accomplishes a few things; first it reduces the amount of money you need to borrow and it reduces the risk the lender takes in loaning the money. By reducing the risk, the borrower will typically get a better interest rate on the loan and increase the amount of home they can buy.
How Large a Down Payment Do You Need?
The amount of down payment needed depends on the type of the loan, the lender and the property price itself. While most of the 0% down home loans of the last decade are gone, Veterans can still purchase a home loan with no down payment. Other programs include FHA loans with as little as 3.5% down. Conventional loans typically require a 20% down payment, but some allow as little as 5%.
Is it Better to Make a Larger Down Payment?
In addition to the down payment, buying a home also requires cash for closing costs and some reserve savings to guard against unexpected financial concerns. One thing to remember though is that any financing with less than 20% down will require private mortgage insurance – a monthly payment which protects the lender in the event of default.
The best amount of down payment should be determined in consultation with your lender and your tax or financial advisor, but the quick answer is “it depends.” By working with a trusted lender, explore your options and you will make the best decision for your needs.
Fall weather is finally here and this is a great time to tackle some home projects before the holiday rush starts. Creating a fresh, modern look to your home can be done with a few simple weekend projects. Here are the 4 best DIY projects you can try this fall to spruce up the look of your home.
1. Create a Grand Entrance – Your front door is the first thing you guests see when they come by. This weekend, give your entrance a fresh look. Add a pop of color to your front door or porch with contemporary paint colors; sage, muted yellows and navy blues are trendy colors this year.
2. Replace Interior Doors – Pre-hung interior doors come in a wide variety of styles from traditional to modern. Instantly update the look of your room or home with new interior pre-hung doors.
3. Frame Bathroom Mirrors – Most tract homes come with basic mirrors over the sink. Spend some time removing the mirrors and add a modern, framed hung mirror instead to add elegance and a spa-like feel to any bathroom.
4. Wallpaper an Accent Wall – Wallpaper is back. Not only are there great options available with modern patterns, colors and textures, but new adhesive backing makes it easy to apply, straighten and remove.
Fall is a great time to make updates to your home with a little time this weekend. Small changes can make a big impact; a quick trip to the local home improvement store can provide great inspiration for a weekend fall project.
Over the past few years, smart technology has really blossomed into a huge market. With more-and-more devices offering connectivity and lower prices, almost all households have some kind of smart device in their home. While some smart devices are simply “nice to have,” many can actually increase the value of the home; if you are considering a move in the future, learning which smart upgrades will increase your home’s value is important.
Here are a few of the best smart home upgrades:
Smart Thermostats – Energy saving smart thermostats can sense when the home is occupied and vacant to control the temperature while saving energy costs.
Smart Smoke Detectors and Security Systems – Life saving smart security can alert you and the authorities automatically if there is a problem in the home.
Smart Door Locks – Either as part of the security system or stand alone, smart door locks allow you to control access to your home. Using Wi-Fi to unlock doors remotely and program unique codes for family, guests, housekeepers etc., you will always know by whom and when your home is accessed.
Smart Moisture Sensor – Mold has become a huge problem. Smart moisture sensors detect water leaks, humidity and temperature changes to protect your home from moisture damage.
These are just a few of the great smart home products available to make your home more attractive to potential buyers. Most starting under $250, these smart choices will not only protect your home, but add value when listing for sale.
Ohio Homebuying and Closing Process Buying a home is likely one of the largest purchases you are likely to make. That’s why it’s imperative to work with a Real Estate Professional – like HomeSmart – who’s dedicated to making the process as seamless and stress-free as possible. As such, below is what you can expect throughout the process to eliminate the fear of the unknown. Please reach out to me, your trusted Real Estate Agent anytime and I will be more than happy to assist you every step of the way.
Step by Step
Part 1: Finding the Perfect Home
These are the initial tasks once a buyer has decided they are ready to purchase a home.
1. Contact a mortgage company to determine how much you may qualify for based on income and credit score. Recommend contacting at least 3 mortgage companies to compare mortgage rates and closing costs. Shopping around will not further impact your credit report once the initial is pulled.
2. Obtain pre-approval letter from the mortgage company of choice.
3. Contact me agent and provide details of what you are looking for so they can conduct a search in the local Multiple Listing Service (MLS). In the meantime, you can conduct your own search on our website, Zillow.com, Realtor.com, etc. to get a feel of type of homes that are out there and what features you like. Each of the websites are set up so you can share listings with your agent.
4. Once you have a list of homes you like, we recommend driving around to see each one and get a feel for the neighborhood, schools and proximity to amenities. Note: pre-qualifying homes will eliminate a lot of wasted time for you, your agent and the homeowner that typically must clean the house, find something to do for a couple hours, juggle kids and find something to do with pets. A lot of times, the home might be next to a highway, near apartment complex, on a busy road or you just don’t like the neighborhood.
5. Once you have found the perfect home for your family, it’s time to make an offer. This will consist of a Consumer Guide to Agency Relationship, Purchase Agreement and Agency Disclosure. As part of the purchase contract, the following are the most critical things to consider (all will be explained when preparing purchase agreement):
What will be the offer price?
How much Earnest Money to put down?
Will you need assistance with closing costs?
What inspections will be done?
Who pays for title insurance?
Tax Proration?
Home Warranty?
When do you want possession? Banks will typically require 30-45 days from acceptance of purchase contract. If paying cash, closing could be done in as little as 7-10 days. Once submitted, the seller typically has a day or two to review the contract, and they will reject, accept or most likely counter the offer.
Part 2: Title Company/Attorney review and inspections
These are the initial tasks once a buyer is in contract, and are most often done in parallel to Part 3: The mortgage process:
1. An offer is accepted by the seller and a contract is signed. The title/attorney review process begins, if indicated in the contract. During this period, usually 3 days (not including weekends), either party can get out of the deal without consequences as their attorneys negotiate the final contract.
2. Concurrently, a deposit, or earnest money, is paid to the buyer’s title company (never to the seller directly).
3. The signed contract is sent to an attorney or title company and the mortgage company to begin preparation of all work related to transferring and changing the title to the new owners and preparing the title commitment.
4. The buyer reviews and signs off on any disclosures. These disclosures vary based on property type, but often include things like known flaws with the property, prior improvements or repairs, and potential environmental hazards. A standardized disclosure form called a residential property disclosure form is required by Ohio law to be provided by the seller as an addendum to the contract and must be signed by both buyer and seller. While it’s mandatory, sellers may still see making these disclosures as beneficial to themselves, and believe that buyers will build these pre-disclosed facts into the contract price (and thus sellers may be reluctant to provide any credits for these defects).
5. The buyer elects to perform inspections on the property if agreed upon in the contract. Any inspections must be completed by a certain date, which is called the inspection period in the contract. The types of inspections vary by property type and situation (and locale), but in Ohio, a home inspector generally inspects the home first, and other inspections and tests can be ordered if revealed to be necessary by the initial inspection. A termite inspection (also known as a wood infestation inspection) is also often performed in Ohio.
6. Based on the outcome of inspections, buyers may elect to walk away from the contract or ask for repairs or closing cost credits by giving the seller notice, in writing, before the expiration of the inspection period. Sellers have three options: 1) agree to all of the buyers’s requests, 2) offer a modified solution back to the buyer, or 3) decline to make any amends. In response, the buyer can continue to negotiate, accept the seller’s position, or walk away. All of this, of course, is done in writing and within the timelines defined in the contract, so check your specific contract to be fully informed.
7. The buyer may also negotiate for a home warranty that covers major appliances from failure for a time period after the sale, typically a year.
Part 3: The mortgage process
For those borrowing to purchase their home, the mortgage process is usually the most stressful and opaque part of the transaction. It’s best to start as early as possible and be ready to produce lots of documentation. The following is the general process in Ohio:
1. A buyer submits a loan application to their lender, either directly or through a mortgage broker.
2. Within 3 days, the lender sends a “Good Faith Estimate,” or GFE, to the buyer that is a breakdown of estimated closing costs. The final costs are likely to deviate from this estimate. See a sample GFE at hud.gov.
3. Before the buyer is ready to write an offer, a pre-approval with a lender should be acquired. The buyer sends a series of personal financial disclosures to their lender. These vary by situation, but the most commonly requested documents are:
Several months of statements for each bank account a borrower holds (including any investment accounts)
Several months of statements for any outstanding loans, lines of credit, or other liabilities. This can also include documentation of rent payments.
Any other disclosures that are material to a borrower’s financial situation. This includes but is not limited to marriage licenses, divorce settlements, child support, liens, bankruptcies, or judgments. If there’s something that affects how much money you have on hand that isn’t shown by simply looking at your salary, be prepared to document it.
Explanation of any credit inquiries
Substantiation of any large deposits or cash gifts that aren’t regular income. In some cases, a large cash gift may look similar to a personal loan by a friend or family member, and lenders will require gift letters from those that gave you the cash gift, stating that the gift was not a loan. They may also ask for itemized deposit slips. The exact amount that triggers this requirement varies by situation (for instance, a $1,000 cash gift may be material to a single borrower that makes $35,000/yr but may not be material to a borrower that makes $350,000/yr), so it’s good practice to ask your lender if you suspect you might have a material cash gift or large deposit – so you aren’t surprised by this at the last minute.
Repeated and updated documentation of any of the above. Keep in mind: to a lender, anything can happen to a borrower’s personal financial situation and credit during the escrow process. Thus, you may be asked more than once for the same type of document so that your lender has the most recent pay stubs, rent receipts, bank statements, or other disclosures that may change over time. Any material changes in these documents -or any element of your personal financial situation- may require the lender to reassess your eligibility for the loan for which you’ve applied.
4. The lender renders an approval decision, and if approved, issues a loan commitment letter, stating its willingness to fund the mortgage provided certain conditions are met. These conditions usually include appraisal (so the lender can confirm that the property you’re buying isn’t worth far less than you’re paying) but will also generally include any material change in your situation -or the property- as initially disclosed to your lender.
5. An appraisal is ordered by the lender or mortgage broker via a central directory of appraisers (often called an Appraisal Management Company or AMC). Choosing a specific appraiser is not possible, but a mortgage broker can reject an appraiser and ask for a new one. If the appraisal comes in lower than the purchase price, the buyer has until the expiration of the loan contingency (unless a separate appraisal contingency is written in to the contract), to request a reduction in price (or other negotiated arrangement) from the seller.
6. The financing contingency (a.k.a. loan contingency) is removed by the buyer before the expiration of the loan contingency date as defined in the contract, by sending a copy of their loan commitment or approval. If the buyer/borrower is unable to get this approval before the expiration of the financing deadline, either buyer or seller can pull out of the deal without penalty by providing written notice.
7. Homeowners’ insurance is purchased (or substantiated, if the property being purchased includes homeowners’ insurance as part of association fees or similar arrangements), and proof of homeowners’ insurance is submitted to the lender. Tip: As this process can be long, arduous, seemingly arbitrary, and is often critical to your homebuying transaction, try to prepare these documents (or at least figure out how to prepare them) in advance. Also, do not make any changes to your employment or credit until your transaction is complete (not just until you get a loan commitment letter). This means not switching employers even if it results in a higher income, as counterintuitive as that may sound. It also means not leasing or financing a car, opening a new credit card account, or anything else that can affect your credit report.
Part 4: The closing itself
The closing process itself general takes place at one table (either at the office of an attorney, real estate brokerage, lender, or title company), where buyers sign all documents related to their loan and the transaction itself. After all documents are signed and payments exchanged, the deed is recorded with the county. Buyers generally take possession of the keys immediately thereafter unless a separate agreement has been reached to allow the seller to stay in the property for a period after closing. The detailed steps that make up closing are:
1. As part of the preparation for closing, the attorney or title company performs a title search (if they haven’t already) to determine if there are any liens or assessments on the title. Provided the title is deemed ‘clear,’ the closing proceeds as planned and the attorney or title company issues a title commitment. All paperwork for changing the title / deed and title insurance is prepared, and a final closing date is confirmed with all parties.
2. A final cash figure for what a buyer needs to bring to the closing in the form of a cashier’s check is calculated. This is based not only on a mortgage’s closing costs but factors like property taxes and utilities paid in to date by the seller.
3. A final walkthrough will often be performed up to the day before closing to verify the property is in the same condition it was when the process began, provided it’s agreed upon in the contract.
4. At the closing, or settlement table, the buyer (and seller) sign all closing documents, including the HUD-1 , and the final loan documents.
5. The buyer pays the remaining funds in their down payment to the attorney or a representative of the title company who is acting as the settlement agent via certified funds.
6. The representative from the title company or attorney will then record the transaction and deed with the appropriate municipality.
The buyer receives the keys and, unless indicated differently in the contract, officially takes possession of the property.
Now that the warm summer months are behind us, it’s time to prepare for winter. Regardless of whether you expect to see sub-zero temperatures this season or you live in one of the warmer climates, preparing your home for colder weather can save you money and hassle this winter. So before you dig out your fall sweaters, take a weekend and prepare your home for the cold weather to come.
Save Energy
Fall is a great time to seal drafts in the home which can suck energy out. Check around doors and windows and replace worn weather stripping and caulking. If you use your fireplace for warmth during winter, this is the right time to have the chimney cleaned and checked for safety. Arrange a furnace tune up complete with replacing the filter and vacuuming the vents to make sure you are warming your home efficiently.
Outdoor Tasks
Before the chill turns to freezing, head to the yard to winterize the exterior of your home. Check gutters for clogged leaves and other debris and examine the roof and siding for any repairs which could create leaks or drafts in the cold. If the gardening season is at its end, drain water from outdoor faucets and garden hoses. Make sure the sprinkler system is off and reinforce any exposed pipes which could burst with the cold. Fall is here. Along with the smell of baking and falling leaves, you can ensure your home is ready for winter by taking a few steps now to prepare. Save energy and the hassle of an unexpected repair by getting some routine maintenance done before the cold months come.
Jon Bradfield Real Estate 