What is a title company’s role in my purchase/sale?

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.

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:
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.

Posted on January 2, 2018 at 11:22 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , , , , , ,

A Basic Guide to Property Taxes

taxes1

If you’re new to the home buying process, there is a lot to learn and a lot of different terms that you may be unfamiliar with. Property taxes are one of those things that are just one of the forms of tax that homeowners will need to pay in order to remain compliant with the government. Taxes are made up of charges from different entities and local governments will use property tax revenue to fund important programs, with the biggest percentage going to schools.

Property Value:
Assessed value is the value placed placed by the county on your property. Every six years it is reviewed/assessed by a real person. The appraised value is the amount a trained appraiser places in the property for loan purposes and the ratio of assessed to appraised varies greatly.  If the market is going up, then the appraisal is always higher than assessed. As a homeowner, there can be several things that can cause an increase and one of those is taking on home improvements. Remodeling and home additions will add to the value of your home, but it can also cause the assessed value to increase. So, before you take on a big project, make sure you balance what the increased property taxes will be compared to what money you will make when you sell the home for a higher price.

Tax Rates:
Every jurisdiction levies on your house based on a tax rate. Several different levels of taxing entities/jurisdiction have permission to collect property tax, including counties, school districts, and others such as fire districts and libraries. All of these jurisdictions have a tax rate which add up to a total millage rate. The millage rate is the amount you’re charged for every $1,000 of assessed value of your home and it differs from location to location. Multiply the millage rate per thousand dollars your house is assessed at, and that’s what your property taxes is.

Property taxes can be confusing for many homeowners, so understanding the basics is important in understanding how to they’re calculated and what it means when you’re buying a home. Homeowners will have the option to pay their property taxes yearly in a lump sum, or they can be factored into your mortgage payment every year. If you factor them into your mortgage payment, and the property taxes fluctuate, there may be a change in the amount you’re paying every month on your mortgage bill. 

Wondering what your property taxes are and what they are being allotted to? You can look at the Clark County website here and enter your address to get the details. 

Still not sure how they work? I’m happy to go over them with you to make sure you understand what all the terminology means.

Tips Provided by Nancy Johns, Blog Written by Brooke Strickland (brookestrickland.org)

Posted on January 11, 2016 at 5:35 pm
Nancy Johns | Category: Home Buying Tips, Selling Your Home | Tagged , , , , , , , , , , , , , , , , , ,