If you’re in the process of buying or selling a home, chances are, you’ve run into some questions along the way. This is one of the many reasons why your Realtor® plays a valuable role each step of the way. One of your questions may have been what role the title company will play in your purchase or sale. In Clark County, escrow and title services are completed through the same company, but each department has different roles and tasks. Here is some helpful information that can help clarify what the title company does as well as what the differences are between escrow and title.
At the time your property is listed, thorough agents will request a preliminary title report. This will show loans, taxes (property and excise), certain kinds of personal debt (tax liens/back child support), which must be paid when the sale is completed. Of course, the total of these should be less than the purchase price of the home.
In addition, easements, road maintenance agreements, HOA information, and CC&R’s will also be on the report. These are examples of items that will stick with the property. Reading the title report will allow your Realtor® to know about any trouble spots that come with the property before closing happens. Once there is an accepted offer, the buyer and the lender are added to supplemental reports.
Escrow includes collecting all necessary documentation to allow the property to transfer over to the new owner. Escrow also will pay off underlying encumbrances (ie. Liens on the property), will place new encumbrances, and make the property transfer with the County. The escrow team will work up the costs for both seller and buyer, including pro-rated property taxes, pro-rated HOA dues, costs from the buyer’s lender, and closing utility bills that could become liens on the property (water and sewer).
While each real estate transaction is different, there are still some basic action items that need to happen with each one. The title and escrow company play a crucial role in the closing process. I will help walk you through the various steps to make sure you understand what you need to do.
We’re officially into 2018 now and it’s a great time to buy or sell your home. Contact me today to explore how to get the ball rolling.
The process of buying or selling a home is very detailed and requires a lot of moving parts. Once the end is in sight, you’ll need to prep for closing day. Planning for closing day can help make things run a little bit smoother. So whether you’re a buyer or a seller, here are some important must-knows on what you’ll need to have in place for closing day.
For the seller:
- Repairs will need to be done and receipts obtained
- Before closing can happen, all repairs that were requested during the selling process will need to be complete. Once everything has been done, be sure that all of that is documented well and that you have all receipts readily available.
- Be ready for a buyer walkthrough
- Once repairs have been completed, the buyer will likely want to do a walkthrough to make sure everything looks in order.
- Arrange for your utilities to turn off
- Call your utility companies, cable/Internet company, and any other services that will need to be turned off and transferred to your new residence. However, it’s important to note that you shouldn’t cancel your homeowner’s insurance on your current address until the final sale of the home has been recorded.
- Gather all brochures, keys, garage door openers, etc.
- If you have collected brochures/manuals on specific appliances in the home, or you have other important documents that need to be left for the new homeowner, make sure you have those readily available. In addition, you’ll need to leave them the keys to the home, mailbox, and any garage door openers you have.
- Sign documents
- This is the biggest step that transfers ownership and gets the process moving toward completion! It can happen several days before the “closing date.”
For the buyer:
- Obtain receipts for completed repair work
- If repairs were done in the home you’re purchasing, make sure you get all of the receipts and warranties associated with the work that was done. Keep these in your records in case you need to refer to them later or in case something goes wrong with the repair down the road.
- Do a walkthrough
- This is your chance to make sure that the repairs were done right and that things are good to go so you can move forward with signing closing papers.
- Set up utilities
- Call your utility company and schedule a time when you want water/electricity to come on. While you’re doing this, schedule a time for Internet/cable service to be hooked up, or any other services that you will need ready to go when you first move in.
- Sign any last minute lender information
- This is an important step! You will need to sign a closing disclosure that needs to be acknowledged to start a 3-day waiting period before you can sign final closing documents.
- Sign documents at escrow
- Here, you’ll sign papers that allow you to complete the home buying process. After the sale is recorded, you’ll get keys to your home and you’ll be able to start moving in!
If you’re confused about which step comes next, don’t worry! I will be there to walk you through the process. If you’re looking to buy or sell a home, contact me today for information on how I can help.
Buying and selling a home is a process that some people just do once or twice in a lifetime, so oftentimes it feels unfamiliar and awkward. Having an experienced real estate agent that can walk you through the various steps is so helpful. Listing agents want buyers to have specific things when it comes to purchasing a home. Buyers agents want sellers to have specific things, too. Here’s what they are:
Listing agents generally want the potential buyer to have the following:
- A competent agent.
Listing agents generally want to work with a knowledgeable agent that is experienced in managing contingencies and is ethical throughout the process, especially when there are multiple offers on a property involved.
- A pre-approval letter.
Going house shopping without a pre-approval letter showing what home price you’re qualified to shop for, is a time drain for everyone involved. Before shopping for a home, buyers should have a pre-approval letter from their lender that has credit, assets, and income verified. That gives agents parameters on what homes are within the buyer’s range.
- Reasonable expectations.
Buyers have many ideas on what they want their next home to look like, but those expectations need to be realistic. In other words, buyers need to have reasonable expectations of house conditions based on the age of the home.
Buyers agents generally want the seller to have the following:
- A knowledgeable, competent agent.
Working with another agent who has experience in using the right forms and standard processes is important, and working with another agent that is ethical is also key. In today’s market, there are often multiple offers on homes and working with someone who follows ethical guidelines in those situations especially is important.
- Empathy and realistic expectations.
Sellers want to sell their home, but it’s important to keep in mind that buyers are facing a lot of stress in the process trying to find a home. Buyers agents appreciate sellers that have empathy for what buyers are facing in a low-inventory market. In addition, sellers that have realistic expectations of what types of repairs a buyer will ask for as a result of the home inspection is also important to making the selling process go smooth.
- Resources and information.
Sellers should be proactive about finding reputable, licensed contractors to get repairs done quickly and efficiently, the first time. This will help the selling process go a lot smoother. In addition, sellers should stay informed about the closing process and stay on top of getting their paperwork in order so there are no unnecessary delays.
Buying a home or selling one can be an exciting, but overwhelming time in your life. No matter what position you’re in, you and your Realtor should be able to work well together on whatever steps are coming next. If you’re looking for a Realtor to help make your home sale or home purchase a reality, contact me today.
Buying a home is filled with a lot of details and it can definitely be overwhelming. It can be easy to overlook the importance of homeowner’s insurance, but it is actually one of the most important parts of buying a home. Homeowner’s insurance will help protect you in the event that something happens to your home. Here are some important tips that will help you before you sign the dotted line on your new home purchase.
Tip #1: Compare coverage between companies.
Your mortgage lender will likely require you to obtain homeowner’s insurance and while you aren’t required to buy from a specific company, you should do your research on various companies and compare coverage, customer service reviews, and other important price details. Most of the time you won’t need to use your homeowner’s insurance coverage unless there has been some sort of emergency or disaster, so be sure that customer service ratings are high. In addition, don’t always look for the lowest price – instead compare value and what you’re getting for the coverage.
Tip #2: Make sure you’re getting the right amount of coverage.
Not sure what kind of coverage you need? Talk to your real estate agent as well as your insurance representative. The most important part of homeowner’s insurance is the level of coverage and you don’t want to pay for more than you really need. Talk about which policies are best for your specific home and area, and be sure that you understand the details of the policies that are offered. Then, determine which coverage works with your budget.
Tip #3: Keep your policy updated.
Once you pick the policy you want, make sure that you keep it up to date. For example, if you decide to put an addition onto the back of your home or if you remodel the bathroom or kitchen, be sure that your insurance company knows so they can adjust your coverage accordingly. This will protect you further down the road in case something unfortunate happens.
If you have questions on what your basic homeowner’s insurance should cover, I’m happy to discuss! Your home is probably the largest and most important investment that you’ll make in your lifetime, so making sure you have the right coverage that will effectively insure you and your family in the event of a problem is priceless.
Are you a home owner that is always up to date on the latest trends in home design? There are a lot of hot housing trends for 2015 that are already proving to be unique in helping homes stand out from each other. Experts predict that there are going to be a variety of trends happening this year, so in the next series of blogs, we will cover what some of these are.
- Hello, open living!
Well, it’s no secret that open floor plans are very desirable, but home buyers entering the housing market are predicted to demand even greater amounts of open spaces, even in traditional condo buildings or small suburban starter-homes. For homeowners that already own a home and are looking for ways to make their spaces feel even more open and brighter, consider adding additional windows or skylights to tie the inside and outside together.
- It’s tub time.
For many people, a nice soaking tub in the bathroom is a must-have item, and it’s looking like 2015 is proving this fact. Freestanding tubs are becoming a popular item in home design this year and it’s likely that freestanding decadent tubs will make a prominent appearance and push the traditional shower/tub combination to the back burner.
- Burn, burn, burn!
Fireplaces and fire pits are all the rage in home design today. There is just something comforting and romantic about sitting around a fire, whether it’s with a fireplace inside the home or a fire pit outside. Fireplace design that you will generally see this year will be more compact with fewer venting concerns.
- Posh Porcelain.
If you want to step outside the box of carpet or traditional hardwood, porcelain floors are becoming a unique option. It is relatively inexpensive and can be found in a variety of colors, textures, and sizes including small tiles or long and linear planks. Surprisingly, this type of flooring wears very well, so the most common places you’ll see porcelain floors are in hallways or other high traffic rooms.
Trends like these are fun to follow, but it is important to remember that even though you may love the idea of following along, it may not be the right move for your overall home’s style or your budget. Consider what ideas will work well for your home and how it can enhance the space.