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What Does Contingent Mean in Real Estate?

Written by Jeff Schultheis on . Posted in Uncategorized.

What does the term “contingent” in real estate mean?

The term “contingent” means that the sale is subject to the fulfillment of the contract’s conditions. A contingent real estate listing is one in which the one selling has received an offering but has chosen to put it live until they ensure that all requirements have been completed.

The purchase will only proceed if the terms and conditions are fulfilled by both the seller and buyer parties. However, if a problem arises, one or both parties may be able to withdraw from the agreement. In this situation, a property with a contingent listing may reappear on the market for purchase.

What are typically real estate contingencies?

Both sellers and buyers wish to avoid unpleasant happenings as real estate dealing can involve significant financial outlays. To safeguard oneself against such unforeseen conditions, both parties, seller, and buyer, can incorporate contingencies in their deal. Below we have jotted down a few of the more typical ones:

Appraisal Contingency

Appraisal contingency would be included in an offering in case the buyer will be financing the purchase of the property. To ensure that the property is worth adequately securing the mortgage they are issuing; lenders have it assessed. The one lending may want a larger down payment or decline to approve the loan in case the property is appraised for less than it was anticipated. If the home appraises for less than expected, an appraisal contingency allows the buyer to cancel the transaction.

Home inspection Contingency

Buyers can perform a professional assessment of a house prior to their purchase which is possible because of a home inspection contingency. Through this, the buyer might get alert to any potential problem and required fixes. In addition, the buyer’s utmost willingness to pay to fix the house could be specified in the home inspection contingency. However, if the estimated repair expenses are deemed to be high, then it might be possible that the buyer will cancel the purchase.

Home sale Contingency

The buyer may intend to utilize the money from the sale of their current home to purchase their new house. In this circumstance, buyers might include a condition to their offering to stipulate that the recently made acquisition will go through if they are successful in selling their current residence by a specific deadline.

Title Contingency

A title contingency gives the purchaser the option to cancel the deal if, through research, they discover that the title to the property is not clear or if there are any charges on the property that may affect the buyer’s ownership rights after the purchase is made.

Mortgage Contingency

No matter the condition, if they have received the loan prior or in any other case, there is always a possibility that something might arise, causing the failure of their agreement with the lender. When a buyer has mortgage contingencies, they are released from responsibility if they are denied a loan regardless of making a reasonable effort to get it approved.

New housing Contingency

Sellers require housing once they vacate their current residence. Hence in case a seller accepts an offer but hasn’t found themselves a new place to live yet, they can include this contingency as it may let them call off the deal if they can’t move by a specific date.

What are the types of contingent statuses?

Continue to show

In this instance, the seller has agreed to an offer subject to certain conditions but still desires to showcase their property to other prospective buyers in case the deal goes through.

No show

Once the deal is closed, the seller no longer wants to show the house to other prospective buyers. This often indicates that the offering includes a small number of conditions that would not cause any further issues.

Short sale

When a listing is described as subject to a “short sale”, it signifies that the owner has agreed to an offering and is prepared to sell the house for less money than what they owe to their mortgage company. Since the lender is also involved, short sales may take a little longer to complete than ordinary. In certain circumstances, the seller retains the right to consider substitute offers if the original one is rejected.

Probate

The legal procedure known as “probate” is how the courts manage a decedent’s estate. The sellers of the homes sold through probate have already accepted an offering. However they are still looking for offers at the other end to be on the safer side because the probate process makes the transaction more challenging.

What Sets Contingent Offers Apart from Pending Offers?

When seeking to buy a home, you would witness many properties. Some might have “for sale” status, some could say “Contingent,” while others might say “Pending,” and so on. These words and phrases show that the house is at some point in the selling process. These statuses will be helpful and will enable you to identify houses that you might purchase only if you are aware of the variations between pending and contingent bids. Hence, if you are considering placing a bid on any one of them, it can advise you on the best course of action.

What are the reasons for Contingent Status?

What are the reasons for Pending Status?
The house has not passed inspection. Despite accepting the offer, the seller will continue to consider additional bids.
The buyer has not yet secured the financing. Despite accepting the offer, the seller is still displaying the house because of a technicality.
The buyer must first leave their current residence to close the sale. Despite the seller accepting the offer, the sale has not yet been completed after three or more months.

How long would it take to change from contingent to pending?

The time period would fluctuate significantly from one payment to the other; it depends on some factors. For instance, a contract will probably progress more quickly if there are fewer contingencies. At the same time, the deal without a kick-out provision could take longer since there will be no time limit imposed for the buyer to fulfill all requirements.

What Prospective Buyers Should Know About a Contingent House Listing?

It’s critical for the purchasers to comprehend what the listing’s contingent clause signifies. There might be a wide range of complications that prevent the offer closing of the residence.

There are differences between contingencies in terms of how likely it is that they will prevent the transaction. Therefore, you must be aware of any eventualities that could affect a house of your interest.

A contract will be signed once the seller accepts a buyer’s offer, and it will typically include conditions that both sides must meet. These conditions give the customer the option to back out of the agreement if they so choose. After agreeing to the terms of the contract, the seller cannot accept any other offer; however, if the transaction fails, a different buyer may take over. The seller may accept any backup offers even though the residence is advertised as contingent.

 

Which could cause something to go wrong in the Contingent offer?

There are many things that could go wrong with a contingent sale. For example, in case the buyer is unable to secure the expected mortgage, an issue may occur.

Buyers typically receive a letter of preapproval for their mortgage, assuring them that now they can obtain the loan necessary to purchase the property. However, the letter would go to waste if the information they provided to the lender was not entirely truthful and accurate. Hence, having a preapproval letter doesn’t guarantee that the desired mortgage will be granted, and this is why some property sales usually fall through.

There may occasionally be other issues as well, even in the case the one lending has given the lender proper information. For example, their mortgage application may be turned down if their financial condition has changed since receiving preapproval, such as if they will witness a decline in their credit score.

Maybe they have applied for another loan or forgot to pay any bill. Hence, there are many numerous methods to lower your credit score, which can cause a mortgage application to be rejected. At that time, a borrower might need to switch gears and obtain a mortgage with terrible credit. They might not even be able to extend the financing contingency with the seller. For debtors, alteration in the interest rates might be problematic because qualifying for a home loan is simpler when the interest rates are lower. However, higher interest rates may result in more contingencies that are not met.

Is It possible to Make an Offer on a Contingent Home?

Potential purchasers are often still able to submit offers during the contingent sale period. The sale is still regarded as active. So, there’s still a chance that the present buyer would renege on the agreement or that unexpected mishaps will force the seller to hunt for any other buyer.

They will frequently have a condition that prevents them from buying the new property until their current house is sold. This way, the seller would start to show more interest in other prospective purchasers and the offerings they are prepared to make if the existing buyer is having trouble selling their home.

Keep in mind that the contingency will only be satisfied if a buyer is successful in selling their house promptly. This will result in the listing becoming pending, leading the sale to closure.

Conclusion:

Although it is stressful, buying a property is not easy. When purchasing a house, contingencies might assist reduce a few of the risks, but they can appear to be a barrier when attempting to resell. It would be best to comprehend contingencies and how they will impact you to make the decision wisely. Now that you know what contingent implies in real estate, maybe you have a lot better knowledge of it.

The JS Realtor Team is so committed to serving our clients through-out the process. We are here to make the home buying experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE Buyers Guide and connect with us today! Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Central Ohio.

How An Energy Efficient Home Is a Bright Idea 

Written by Jeff Schultheis on . Posted in Uncategorized.

Energy conservation is crucial since energy costs are rising and will keep rising over time. By choosing eco-friendly solutions, energy-efficient house improvements or designs not only aid in energy saving but also assist you in lowering your carbon impact. Homes that use less energy enable individuals to save money over time and contribute to energy conservation. Additionally, your house becomes more reliable and cozier. 

What Is an Energy-Efficient Home?

Any house can become energy-efficient, regardless of when it was constructed. However, older homes can be updated to perform better in terms of energy efficiency. Modern construction regulations demand higher energy efficiency in modern residences. Additionally, the residents of these homes can adopt energy-saving practices.

An energy-efficient home is economical, always increases the value, and is environmentally friendly.

As per the Energy Information Administration (EIA), American homes have become more energy-efficient during the previous ten years. Typically, fuels and electricity are transformed into forms that may be used inside a home, such as heat and light. A smart house can use these resources more and contain aesthetically pleasing features. A variety of resources can considerably increase energy efficiency in automated houses.

The Amazing Benefits of An Energy-Efficient Homes 

Here are a few benefits that homeowners of energy-efficient homes enjoy. 

Lower Utility Expenses 

Decreased energy use can result in lower utility expenses for activities like lighting, heating, and cooling your home. A few examples of energy-efficient devices that can have an impact are lightbulbs, insulation, windows, smart thermostats, as well as digital power management, according to EnergyStar.gov. Even though some energy-efficient devices may cost more upfront to buy and install, they can end up saving money in the long run.

Environmental Effects 

Burning fewer fossil fuels and choosing energy-efficient options to help reduce the production of greenhouse gases and air pollutants. We may work to enhance air quality, contribute to the battle against climate change, and support healthy environments by assisting in the reduction of greenhouse gases and air pollutants.

Less Water Use 

Some energy-efficient items can reduce the use of water while saving on gas and electricity. For example, you may be able to drastically reduce the amount of water used in your home by installing and upgrading to energy-efficient bathrooms, dishwashers, laundry cleaners, and low-flow taps.

Better Air Quality 

You may use your HVAC equipment less frequently and increase airflow by making some energy-efficient changes. This could result in better air quality in your home, which is crucial if you have family members who have allergies or asthma.

More Comfortable Home 

Your home can be more comfortable to live in by implementing energy-saving measures like better insulation, better ventilation, and the installation of smart thermostats to help maintain the room temperatures. For example, ceiling fans can make a room feel cooler without changing the air conditioning settings. Demand-driven water heaters also contribute to energy saving while ensuring you don’t go out of warm water. 

Better Resale Value 

Homes may sell quickly and for more money when equipped with energy-efficient equipment, appliances, and constructions. Save the utility bills so you can demonstrate the savings to prospective buyers.

Incentives For Homeowners 

Inquire with your insurance company whether any savings are available for homeowners installing energy-efficient appliances, equipment, doors, window frames, or other structural upgrades. 

Example For Future Generations 

By being mindful of your energy consumption, you may set a positive example for your children and instill in them the importance of environmental stewardship. In addition, you may create a culture of energy conservation in your home by leading by example.

Tips On Making Your Home Energy Efficient 

Are you constructing a new home or renovating your current one? Follow these tips to ensure your home design is energy efficient. 

Think About Landscaping & Shades 

If you use shady landscaping features, your home won’t absorb too much heat. To offer shade for your home, use trees with canopies like Yellow Buckeye or the London Planetree. Choose deciduous trees to keep the heat out in the summer and let the light in throughout the winter. They blossom in summer and spring and lose their leaves during the winter season, making them ideal for both times of the year. Moreover, select denser trees and bushes to give continual shade and shelter from severe winds.

The location of the plants is also important. When it’s extremely hot outside, planting trees on your home’s east, west, and south sides will help keep it cool. East Trees will cast shadows on your house in the early morning sun.

A Great Ventilation System 

An energy-efficient home’s ventilation system not only ensures comfort but also contributes to energy savings by limiting the use of HVAC equipment. Additionally, polluted air is filtered out by home ventilation. Window and mechanical devices with fans are the easiest ventilation techniques available for maintaining a comfortable space. Natural and healthy ventilation should be a priority in your home’s design.

The ventilation program is a crucial component of your energy-efficient home design since it transfers air, moisture, and occasionally even heat through the barrier of the building envelope. As a result, your overall energy consumption can be greatly reduced with the help of a well-designed ventilation system.

Use Of Smart Devices 

 With the development and improvement of technology, choosing appropriate smart gadgets can assist you in reducing your use of energy at home. When compared to ordinary appliances, these gadgets operate with the least amount of energy, thereby lowering your electricity costs. However, an energy-efficient home must be cleverly designed to provide a strong ROI and savings over the long term.

To prepare your smart home, you can use smart kitchen equipment, smart lamps, smart blinds, smart thermostats, smart AC controllers, etc. By controlling the operation of your AC in accordance with your daily usage patterns, smart AC controllers, for instance, can help you cut your energy costs. They can be combined with various smart home technologies as well.

Efficient Light Fixtures 

Every structure or residence has an indoor and outdoor lighting system, which may require a lot of energy based on the type of bulbs or fixtures used. According to information from the U.S. Energy Information Administration, the average American home spends 14% of its electrical budget on lighting. Therefore, fluorescent lights and LEDs are suggested because they produce less heat, ultimately enabling you to conserve energy. In addition, LEDs are cost-effective and can be installed in many light fixtures.

In addition to bulbs and LEDs, the house windows can be made to let in more natural light throughout the day, reducing any need for artificial lighting. Additionally, window frames made of aluminum-clad wood are an option because these offer better insulation.

Water Conservation 

Water-saving technologies are being incorporated into a growing percentage of energy-efficient homes. Homeowners are choosing greywater recycling systems, for starters. The waste from showers, basins, laundry tubs, and washers is referred to as greywater. The greywater from the washing machine can be diverted to your restroom or garden using a system that can be built.

This method can cut your water consumption by roughly 50%, which can help you pay less for water.

Moreover, by putting innovative technologies in your home, you can save water when taking a shower and doing the dishes. For example, showers and kitchen faucets with new low-flow fittings use less water overall but disperse it more evenly.

The Building Envelope 

You use an external cover or a glass protector to prevent scratches on your smartphone, right? Similarly, a building envelope protects or covers a home. The building envelope, which refers to the structure’s exterior, is an essential energy system. The house is shielded from the air, dampness, and other harsh elements by this barrier between the inner and outside environments.

The building envelope regulates the inside temperature at the level you choose, considering the type of insulation utilized. It can keep the house cool in the summer and warm in the winter. A home design that is energy efficient must be considered.

Insulation is a feature of the body envelope, which is particularly advantageous for energy conservation. It also decreases the load on your HVAC system, making your house more energy efficient. It also protects your walls from water damage by absorbing moisture. 

A Final Word 

An energy-efficient home is the need of the future. It not only preserves energy but maintains a comfortable space for homeowners. 

By following an energy-efficient design for your building envelope, lighting fixtures, landscaping, water system, and HVAC system, you can keep your home energy-efficient. 

Our team at JS is so committed to serving our clients through-out the process. We want to make the home buying or selling experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE planning kit and connect with us today! 

‘Highest and Best’ versus ‘Best and Final’ a Homebuyer’s Guide to Offers 

Written by Jeff Schultheis on . Posted in Uncategorized.

What Does It Mean for an Offer to Be The “Highest and Best”?

The phrase “highest and best” is becoming increasingly common these days among prospective buyers of homes. Buyers need to be familiar with this word to negotiate successfully. 

When multiple buyers are interested in a property, the seller will receive multiple bids. This benefits their sales because it may assist them in obtaining a greater price.

Suppose the seller has multiple offers on the table. They will first need to evaluate them and then try to bargain one-on-one with each prospective purchaser, or at least with the bids that rank highest. The sellers will need to engage in a significant amount of back-and-forth, making counteroffers, waiting, and maybe receiving competing offers from the buyers.

Alternatively, the seller and the seller’s agent could choose a solution that is simpler instead. They may put out a request for the “highest and best offer.” They are letting you know “I have numerous good offers.” In this case you still have a good chance of winning the war. The key will be keeping within your budget as well stay close to the other bids.

What Does It Mean for an Offer to Be The “Best and Final”?

When a seller requests a buyer’s “best and final offer,” it indicates that the seller is anxious to conclude the sale as soon as possible and has no intention of engaging in lengthy talks.

When we come across a seller that requests “best and final,” it says that they do not wish to pit buyers against one another in a competitive bidding procedure. They want to stop the pricing war by ensuring that everyone has an equal opportunity to win. This strategy is utilized because it is more efficient than dealing with each bidder separately. You will only have this one final opportunity to submit the offer that will get you that home, so make sure it’s a good one.

The phrase is also frequently used in the context of governmental procurement. An organization may propose that potential bidders submit their best and final proposals to guarantee that all interested parties will have the opportunity to provide the most cost-effective pricing for a particular contract.

Techniques For Making the “Highest and Best” Offer

During the “highest and best” discussions, buyers should request that their agent obtain as much information as possible regarding the offers that have previously been submitted. They need to find out what the seller considers to be the most significant factor in an acceptable offer.

For instance, will the seller require a rent-back contract after the closing, implying that the purchaser would not be able to move into the property immediately after the transaction has been finalized? Or is the seller ready to get rid of the property and searching for a buyer who can make a bid with a rapid closure in fewer than thirty days?

The proverb “cash is king” refers to the fact that the purchase offer condition can frequently close the contract, even if other proposals are marginally more attractive. Suppose you don’t have access to cash, including a letter of pre-approval from a financial institution and always have a positive attitude. Sellers usually have more than one thing they are looking for in the deal. 

Strategies For Making the “Best and Final” Offer

One strategy is introducing an escalation clause for offers described as “best and final.”

When buyers provide a range of pricing and state that they will exceed any other competitive number by a certain amount, for example, $5,000, this is known as an escalation clause.

You can choose the maximum amount you are willing to pay above the current offer. If you have a limit you don’t want to go over; you can declare that you’re ready to pay $5,000 more than the highest verified offer if the total amount doesn’t exceed your maximum.

Simply “having an offer stand out” is one method to implement. Why not make a counteroffer of $470,427 as opposed to $470,000? “It can truly assist you in standing out from the crowd.”

We also suggest other strategies that are more conventional and are typically adequate. These strategies include trying to pay closing costs, nullifying certain contingencies, opting out of inspections, and more. We call this the “JS Bundle of Terms”. 

The Process Behind a Highest and Best Offer

Sellers will consider your offer in its entirety as a unified package. Before deciding based on their requirements, which may or may not be entirely economical, they will consider everything from potential outcomes to the dates on which the deal will close.

Look at the following three deals:

  • $300,000 with a contingency based on finance and inspection, and 45 days to close the deal
  • $285,000 in cash, with a closing time of 30 days, no contingencies 
  • $292,000 in cash, with a 30-day closing period and a condition based on an appraisal

Which one does the seller intend to choose? Their needs will determine that. Is it a fast close, more money, or safer deal.

If you can get to the bottom of why the seller is selling their property, you will be in a better position to write an offer letter that will win them over and get you the home of your dreams. In the end, make sure to look for the best offer that suits your financial needs and consider the best option for yourself.

Conclusion

Don’t be discouraged—we know this is a lot. That’s why our team at JS REALTOR® is so committed to serving homebuyers. We want to make the home buying experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE planning kit and connect with us today! Let’s go find your first home! Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Central Ohio. I Heart Real Estate, Broker. 

Top 10 Renovation Projects

Written by Jeff Schultheis on . Posted in Uncategorized.

You can always make improvements and modifications, whether you buy a new house or older home.

Here are some home improvement projects that will improve the enjoyment of your home, while also helping to boost the value of your house. Homeowners can choose from a simple new coat of paint to a complete kitchen redesign.

Major or Minor Kitchen Renovations

Major or miner kitchen renovations are a terrific way to raise the price of the house. Based on the style of makeover you perform, the products you use, and where you reside, you may anticipate a return on investment for your kitchen remodel.

Minor kitchen improvements involve simple tasks like:

  • Installing a fresh backsplash
  • Painting cabinets
  • Modernizing lighting fixtures
  • Inserting an island
  • Increasing available storage
  • Modernizing faucets

Among the significant kitchen improvements are:

  • New countertops and cabinets
  • Setting up tile, laminate, or wood flooring
  • Increasing the number of windows, doors, or square feet.
  • Investing in more expensive appliances
  • Adding a place to sit, eat, store, or cook.

When thinking about redesigning your kitchen, remember to stay within your budget and keep the room practical and appropriate for the rest of the house. Over renovating is worse than not renovating in many cases. Choose wisely.

Bathroom Renovations

Another strategy to raise the value of your house and make it more desirable to potential buyers is to renovate the bathrooms.

You can investigate a range of prospective projects, according to your remodel budget, such as:

  • Setting up fresh sinks, bathtubs, spas, or commodes
  • Reflooring, retiling, and painting
  • Creating more storage
  • Including a dresser or screen
  • Improving the illumination

If your house has one bathroom currently, adding another one is an alternative. In the property market, houses with several bathrooms are in high demand, and you’ll probably value the comfort.

Repurposing an Empty Space

Many houses have additional rooms, crawl spaces, and underground spaces just waiting to be used. Getting the most of those underused spaces will expand your living area and appeal to prospective purchasers.

Additionally, it’s often significantly less expensive than expanding your home’s floor area.

The ideas to consider are:

  • Playroom
  • Gaming area
  • At-home gym
  • Work from home
  • Private suite
  • Additional living room
  • A studio or library
  • A guest room

Outside Area

Projects that improve the use and accessibility of your outside area can raise the value of your house. Benches and terraces may have more than 64% ROI, based on the materials you pick, such as hardwood or composite decking.

Lower decks and terraces made of stone and brick are other alternatives. If you’re handy, you could even build them yourself.

Pressure wash any existing decks or terraces and, if required, refinish them. Remove peeling paint and stain, and repair any old, decaying boards or broken pavers. A cheap approach to make your house more appealing to purchasers and raise the property’s total value is to spruce up your current outside features.

Keeping the House Code-compliant

Your property may benefit from some home improvements to keep it current with current residential house requirements. Outdated electrical or plumbing can decrease the value significantly.

For instance, several older homes may profit from new:

  • Electricity connections
  • Plumbing
  • Window frames
  • Insulation
  • Water heater
  • HVAC units
  • Roof repair

Older homes that haven’t been upgraded in the past are often the ideal candidates for these types of upgrades. They can be expensive, but they’re frequently worthwhile since they’ll increase the value of your home and make it safer and cozier for you and any future residents.

Energy-saving Add-ons

There are several advantages to using energy-efficient equipment and construction materials. They may lessen the environmental effect of your house in addition to helping you save money on energy costs. Here are a few ideas for projects:

  • Set up solar panels
  • Invest in Energy Star products
  • Spend money on a smart thermostat
  • Install new windows
  • Replace external doors with inadequate insulation
  • Boost insulation

Consider getting an energy audit to determine how to increase the energy efficiency of your house. Numerous gas and electricity companies provide assessments that give you a home electricity score and advice on improving its efficiency. Many energy companies provide these services for free or give you the resources to do it yourself.

Interior Architecture

When it comes to interior design, less is more. Simple and essential design modifications are generally inexpensive and assist in positioning your property for sale.

If you’re searching for some quick but valuable home renovation tasks to raise the total value of your house and attract buyers, consider:

  • Modernizing lighting fixtures
  • Updating heat vents and light coverings
  • Replacing worn-out doorknobs and other hardware
  • Setting up unique window coverings, including blinds
  • Choosing neutral paint colors
  • Painting inside doors, walls, and woodwork
  • Inserting crown molding

Don’t undervalue the impact that little improvements to your home’s appearance may have on its value. They might not seem as stunning as more extensive upgrades but are very effective. 

Curb Appeal

Curb appeal is crucial for promoting your property, even in the most competitive real estate markets. No one will want to visit the inside of your property if the outside is unattractive. The outside is the first factor influencing someone’s choice to spend a lot of money buying a house. Any home renovation project should prioritize this as one of the most crucial components.

The following are some of the top house renovations for raising curb appeal:

  • Replacing, restoring, or painting brick, vinyl, or wooden siding
  • Repainting or acquiring a new front door
  • Changing a worn-out garage door
  • Finishing your foyer with stone veneer
  • Putting up new lights

The price of your property can rise just by painting the front door a deeper shade, like black or charcoal.

Gardening

Your property’s landscape design improves curb appeal and gives your house a more inviting appearance. Possible landscaping improvements include:

  • Cleaning pots and flowerbeds of weeds
  • Including pots, flowerbeds, or hanging baskets
  • Planting trees
  • Changing outdated mulch
  • Eliminating dead shrubs and trees
  • Raking up fallen leaves and old grass

Automated Smart Homes

The use of smart home appliances is growing in the real estate industry, which helps increase property prices and appeal to potential buyers. The following are some of the most popular smart house upgrades:

  • Adaptive thermostats
  • Smart security solutions for homes, such as doorbell webcams
  • Radioactive, carbon monoxide, and smart smoke detectors
  • Smart lamps

Your property investment agent should be able to help you price your house appropriately, even if it might be challenging to determine just how much value these changes bring to it.

Typical Errors to Avoid

Ignoring regional patterns while making improvements to a property is among the most frequent errors. Simply put, you must pay attention to what is popular where you live. Look at the neighborhood’s and the region’s recent house sales. What characteristics are the most valuable? What decisions were taken about these properties’ design? To raise the value of your house, pay attention to neighborhood trends. You could lose if you ignore them.

Final Word

Budgeting for and prioritizing home renovation projects may be challenging, so picking the ones that offer the most rewards is critical. Focus on remodeling and upgrades that will increase rather than decrease your property’s worth if you intend to sell your house in the future.

Need any other help with decisions on what to renovate at your home? We are here to help. Our team at JS REALTOR® Team is so committed to serving our clients. We want to make your experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you make the right decisions. Request your Free Selling Download here FREE planning kit and connect with us today! Let’s get ready to sell your home. Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Mid-Ohio.

What Are Today’s Buyers Looking for in a Home?

Written by Jeff Schultheis on . Posted in Uncategorized.

Open Concept Floor Plans

In the early 1990s, most houses featured jagged, fragmented floor designs. But the ideal floor design for today’s house buyers is one that effortlessly connects each area to the next. As a result, many buyers are choosing to build their own home instead of buying an existing one because older homes typically don’t offer open concept floor layouts.

A benefit of an open concept floor design is that it enables a homeowner to converse with visitors regardless of being in another room which is not possible in a home with separate rooms. Notably, parents having young children favor open concept floor plans because they enable them to keep an eye on their children.. 

Updated Kitchen:

Updated kitchens are regarded as the most crucial feature according to 81% of people in the survey carried out by Metropolitan Regional Systems Information Inc recently on house buying decisions.

Some buyers might not even consider it as an option if the house has old rusty cabinets, counters, or flooring. The project can be very costly if you are not careful. Get some design help before proceeding can help control cost while still looking appealing. First, research the trends, look for inspirations, see what comes in your budget, keep them in your mind and begin upgrading.

Simple kitchen renovations can speed up the sale of a house. Some of the inexpensive kitchen renovations include:

  • Consider painting the kitchen.
  • Re-stain kitchen cabinets to make them look clean and fresh as new.
  • Install new bright lights in the area.
  • Fix the plumbing issues

Also, new buyers now look for Eat-in kitchens as per the survey by NAHB. It means having a small area to sit and eat in the kitchen. Hence, incorporating a small table with 2-4 chairs would do. They appeal mainly to families with young children. It serves as a location for conducting homework and other activities besides dining. 

Walk-in pantry:

A walk-in pantry is one feature buyers covet, as per the NAHB’s report. Incorporating a walk-in pantry in your home may be cheap or expensive. It varies as per the details or size; also, one must keep in mind a home’s overall style and design. For instance, luxury homes may need a little fancy with the latest storage and large pantries to meet the owners’ needs. But luxury walk-in pantries would cost a lot and vice versa.

A walk-in pantry is desirable to 83 percent of today’s buyers, making the expenditure justified. Primarily for families with young children, as they are aware of how rapidly the kitchen becomes cluttered if there isn’t enough room to store basic items like cereals and canned foods. 

Upgraded Bathroom:

Like the kitchen, updating a bathroom can cost you a lot, but it is one on the list of most desired home features today.

To make your bathroom appealing while staying on budget, you can paint the area with inviting, bright colors. Also, ensure that they are clean because a dirty bathroom can scare away your potential home buyer very easily.

To upgrade your bathroom at a low cost, you can consider the following:

  • Add new vanity
  • Fix plumbing issues
  • Replace old with new bathtub or shower
  • Clean and keep your cabinets and closets organized.

You can also make a closet inside the bathroom if you have space that would make it more appealing. However, do not lose sight of the latest bathroom trends when updating your bathroom.

Home Technologies

Modern homebuyers, particularly millennial homebuyers, are quite a technology influence. Adding advanced technology to your home will increase its value. A house can be equipped with a wide variety of highly sophisticated things which can add the “WOW” element in a home that can be raised with the aid of home technologies. For instance, you can look up:

  • Programmable thermostats which one can control through his tablet, smartphone, or any other handy gadget.
  • You can set up a home speaker system in the house for partying or watching a movie in a cinema environment.
  • Keyless locks, accessible via Bluetooth or thumbprints to ensure security.

Laundry Room

Homeowners usually think that when the time comes to sell a property, the location of the laundry room is irrelevant, which is not the case. How quickly a property sells and how desirable a home is can both be significantly impacted by the location of the laundry room. You may not find separate laundry rooms in all the houses, but if they have, they are more valued. The three most frequent areas where you may find a laundry space are the basement, the main floor, or the second story.

However, modern home buyers prefer that the laundry room must be situated on the main floor of the house. For senior house purchasers or those who might have difficulties climbing stairs, having first-floor laundry is a feature that is highly valued.

Outdoor Space

The exterior features of a property are essential and are in demand by home buyers. It may be costly for sellers if they overlook the property’s exterior. The exterior requires equal attention to the interior; keep that in mind. Ensure that the outdoor space of the home is not overlooked when arranging a home to sell more quickly. Doing so will make your home more appealing to the buyers and help you make a great deal of money.

Attached patios, decks, and gated yards are some of the most preferred house features among today’s homebuyers. In addition to that, homeowners should also pay attention to the following outside areas:

  • Landscaping
  • Pools
  • Gardens
  • Hardscaping
  • Outdoor Kitchens

Furnace & Air Conditioning System

The air conditioning and furnace system are the most crucial components of a home. If any house lacks central air conditioning, many prospective buyers won’t even consider it. So, it would be beneficial if you consider installing it. However, in case radiant or baseboard HVAC systems restrict you from the installation of central air conditioning, you can opt for installing a central air conditioner, if possible. This smart move might enhance the number of potential house buyers who could be interested in the property.

Efficient furnace and air conditioning are what modern home purchasers are seeking. The main justification is the substantial monthly cost savings that these house upgrades can provide a buyer. Other reasons making this home feature important include:

  • Better For the Environment
  • Produces less noise pollution
  • Longer average life span
  • Health and life quality improvements

Ceiling Fans

You would not hear many of your friends extolling the virtues of ceiling fans. But this house element should not be disregarded because 83% of individuals selected it over hundreds of other options. In addition, due to global warming, climates are now changing in different areas of the world, and many people might at times need fans because of the unpredictable weather conditions.

Installing ceiling fans in a home is a simple and inexpensive way to improve your home as it could significantly increase your house’s perceived worth if we consider the current global warming. When adding fans, you can install a fan-deliver to improve the appearance of ceiling fans and give your room much more air. These lighting fixtures have a chandelier-like appearance and a ceiling fan-like feature. They’re becoming increasingly popular, and they might be the selling point that gets you the best price when you sell your house.

Energy Efficient Windows

The effectiveness and quality of windows are common issues for home buyers. The most frequent problem discovered during a house inspection is poorly conditioned windows that are not functional. You should consider replacing the windows in a home. It will let you make enough money, covering the cost of new windows very easily. 

Energy efficient windows will cause today’s buyers to spend more money.. This matter is even more crucial than furnace or air conditioner efficiency.

Conclusion:

Knowing what aspects modern house buyers value is one of the finest ways through which you can appeal to them with your property. A home with the features mentioned above may let buyers have what they have been seeking while making the owners sell their property more quickly. Checking in the list of sufficient features will enable the owner to make a win-win deal with the buyer, earning more money than an ordinary old house.

Don’t be discouraged—we know there is a lot to consider. That’s why our team at JS REALTOR® Team is so committed to serving our clients. We want to make your experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you make the right decisions. Request your Free Selling Download here FREE planning kit and connect with us today! Let’s get ready to sell your home. Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Central Ohio

Top 10 things to get ready for Fall

Written by Jeff Schultheis on . Posted in Uncategorized.

1. Purchase a Programmable Thermostat

Having a programmable thermostat is completely worth the investment, especially once the weather cools down. If you set your thermostat back while you’re away during the day, you could save up to 10% on your air conditioning/heating bill each year. Many programmable thermostats can even be accessed from on your phone. 

2. Fertilize your Lawn

Our lawns take a beating during the dog days of summer. It’s time to rejuvenate them. Applying fall lawn fertilizer will help prevent winter damage and spring weeds. Ask a local garden center or check online to find out which type of fertilizer you need and when to apply it. 

3. Reverse your Ceiling Fan

During winter, warm air rises to the ceiling fan while cool air will stay close to the ground. By flipping a switch and reversing your ceiling fan, cool air is forced up, and warmer air is pushed down. You will love the feel of the steady temperature.

4. Clean the Gutters

If the gutters are blocked, they can overflow which can cause water damage to your home, including the foundation and basement. Take out your ladder, and clear out any leaves, branches, or debris from the gutter. If you are afraid of heights or never want to do this again, consider have a gutter protection installed. You will never need to clean them again.

5. Plant Bulbs for Spring-Blooming Flowers

What do you want your flower garden to look like next spring? Now is the time to decide. There are beautiful several Spring-blooming flowers, but they must be planted at just the right time during the Fall. Some popular ones are the tulip, iris, daffodil, hyacinth and lily. 

6. Clean the Fireplace and Chimney 

Before you fire up the fireplace this Winter, make sure it’s clean and ready to go. Your fireplace & chimney should be cleaned and inspected every 50 burns to ensure that it’s ready to be used.

7. Check Smoke Detectors 

Replace all batteries in your smoke and carbon monoxide detectors throughout your home. Once you’ve replaced the batteries, press the test button to insure they are working properly.

8. Remove Warm Clothes from Storage

The seasons will begin to change and soon you’ll be trading in your tank tops for coats. This is a great time to sort through all your warmer clothes and decide if you still want to keep everything you stored away. If you don’t think you’ll wear it this Fall, donate it to your local thrift store. 

9. Check Windows & Doors for Leaks

As the year ends, the weather will get colder. If your windows are not sealed properly, your home could lose lots of heat, causing your gas and heating bills to spike! Check for leaks now and have a worry-free winter. 

10. Organize the Garage

It’s not a fun activity but, the garage most likely could use some tidying up. Install some shelving or add some hooks to keep your garage more organized year-round. Why not pull out your Fall decorations while you’re at it? 

11. Enjoy the Season 

Getting the house ready for the upcoming season is important, but don’t miss out on all the great things that falls brings. Take a drive in the country to see the leaves. Hike at your nearest state park. Go get that pumpkin spice drink. There are so many good things to do in the fall. Don’t miss it!

Need any other help with your home? We are here to help. Our team at JS REALTOR® Team is so committed to serving our clients. We want to make your experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you make the right decisions. Request your Free Selling Download here FREE planning kit and connect with us today! Let’s get ready to sell your home. Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Central Ohio

realtor, home, homeowner, homebuyer

Top 5 Things to Increase Curb Appeal

Written by Jeff Schultheis on . Posted in Uncategorized.

The Importance of Curb Appeal

Creating great curb appeal is a clever marketing strategy that goes beyond how homes appear. Exterior attractiveness creates anticipation. It is what drives people to desire to go inside and check it out.

Curb appeal is a crucial component that earns interest in a property. The value of curb appeal wasn’t so much dependent on the amount of money invested in the home. The fact is, you can spend a lot of money renovating things, but ultimately, what we need to accomplish is make things that are alluring and attractive and will cause others to regard the home as having immense promise and beauty.

You desire your house to impress people when they first see it. At the very least, it shouldn’t turn away most customers. In contrast, the home’s exterior appeal ought to encourage consumers to request more information.

Here are our top 5 strategies to improve the curb appeal of any house so that it sells for top value.

1.    Refresh the landscape

A San Francisco-based property investment referral firm say that houses with good landscaping sell for anywhere between 1-10% more so than homes without good landscaping.

When potential buyers approach your house, you want the landscape to be neat and well-kept.

Professional landscaping may be expensive, with the typical cost running from $8,000 to over $15,000 for enhancements, including green growth, a deck, and a rear pathway. You can do most of this yourself for a fraction of the costs. Most nurseries are great at helping you pick out a few new plants or some items to enhance the appeal. Also consider adding window boxes, suspended planters, or pots filled with perennial flowers such as petunias. Put them inside, and you will have an immediate splash of color. You also can throw down a piece of new compost to offer your landscape a sharp and smooth surface. 

Don’t overlook the fundamentals, which include mowing the grass, trimming shrubs and trees, and getting rid of pests and dead limbs. Maintain your yard by cutting the grass short, raking trash, and picking weeds on a regular basis. Water it often to avoid brown stains.

2.    Replace or paint your entrance door & add some decor

The front door, which serves as your living area’s primary entry, is a desirable repair before putting your house up for sale—searching for the perfect color? Although 2018 Zillow research reveals that some properties benefit from having a brightly colored front doors.

Furthermore, decorating a front door is a relatively simple DIY job. Tools and supplies like a two-in-one color and priming bucket, paint roller, dropping cloth, or sanding only cost around $75, but there are plenty of YouTube tutorials with phase instructions.

However, there is one exclusion. Getting a new entrance door could be advisable if your current one has warping, painting cracks, corrosion, or scratches. Front doors typically charge $1,000, and according to HomeAdvisor statistics, the expert installation runs around $1,091.

Wreaths aren’t just for the holidays. Wreaths are readily available year-round and significantly enhance the appearance of the front entrance. Find wreaths with conserved or dried greenery and flowers, or, for more convenience, get one with fake flowers. A wreath might look odd or dated if certain seasonal features are included. Choose something straightforward that will offer elegance for the duration of the season. 

Moreover, a place may be given some vitality by plants, which also gives the impression that it has been well-used and maintained. Finally, when planted in groups at either end of the entrance, plantings or perennials with varying heights may make great curb appeal.

3.    Clean up and bring on the lights

Every day you come into your drive, you might not see it, but many purchasers will. If your drive has skid marks and oil stains upon that, you can usually get rid of them by pressure washing it.

Try using a skilled cleaning service to get rid of stains, filth, and dust, as windows are frequently a central focus for potential buyers. As per HomeAdvisor, window washing has an estimated cost of around $213, while lesser tasks start at about $80-$100. In addition, numerous cleaning businesses offer both inside and outside cleaning services. Washing the windows would also assist bring direct sunlight into your house. 

Gloomy entrances don’t exactly exude warmth. Swap it out for something more exciting and modern when your front entrance currently has a chandelier or dangling pendant. Quickly make the area look nicer and cheerier, clear away all spider webs and other debris from the area surrounding outdoor light fittings. If you require more lighting, put some doorway lights, or illuminate a walkway with solar-powered lamps. Don’t depend on a central post bulb or a spotlight placed in your garage; add multiple lights to have maximum illumination. 

Consider a beautiful tree, the veranda, or a well-kept row of bushes. If you want to give your lighting design more depth, use the limelight as well as a “bullet” lamp toward the treetops.

Alternatively, you can try moonlighting. It is the reverse of uplighting. Towards a gentle, natural illumination, Place fittings in treetops, so they glow brightly on the walkway and grass.

4.    Upgrade the small details

Replace an old mailbox with a much more modern one. It’s a straightforward job to undertake and may improve your house’s curb appeal subtly yet noticeably. Plan on paying between $50 to $200 to change it, depending on the kind of box you want (a freestanding mailbox or ones affixed to the walls, for example).

Secondly, by getting rid of your outdated house symbols and substituting them with ones that have a little more energy, you can quickly update the appearance of your property. Finally, select a typeface that complements the style of your house’s architecture while yet being unusual enough to catch people’s attention. Even when you’re not very handy, altering the numerals is a simple task that can be completed in about 30 minutes.

Finally, the appearance of your home might be cluttered by having too much patio furniture. A healthy balance should be struck in the center, and most of your outdoor furniture should be spotless and in working order. Any patio furniture that is outdated or requires repair ought to be thrown aside. Try giving front porch seats or outdoor furniture a fast coating of paint to give it a new look.

5.    Use plants.

Adding some new greenery or flowers is among the easiest (and most effective) ways to improve curb appeal. When you don’t want to spend big bucks to create a new yard; placing some pots and hanging baskets will still have the identical impact. Install a dangling one when you may not have enough space for a freestanding planter. Utilize plants to draw attention to and surround essential visual elements, such as doorways and stairways. The front of your property may be considerably improved with just one attractive plant display.

However, if you have the budget for a garden upgrade, try mulching. In addition to adding color and variety to beds, mulching maintains the soil wet and aids in weed control. Choose colored mulch to add a bright look to the landscaping. Spread 2 inches of new mulch over your beds for the best look. 

Balancing the flower beds is essential. The most beautiful gardens are layered with beauty. Find a variety of perennial and evergreen plants with different elevations and patterns, if possible. Organize them from tallest to shortest in reverse order. Think of flowers with a dramatic effect, long-lasting flowers, or fascinating leaves.

Conclusion

You can tell when a home has good curb appeal, and you can also tell when it doesn’t. To generate excellent curb appeal, one wouldn’t need a significant expenditure; just some creativity at hand will do the job. 

Don’t be discouraged—we know there is a lot to consider. That’s why our team at JS REALTOR® Team is so committed to serving our clients. We want to make your experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you make the right decisions. Request your Free Selling Download here FREE planning kit and connect with us today! Let’s get ready to sell your home. Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Central Ohio

Avoid These 9 Bidding War Mistakes

Written by Jeff Schultheis on . Posted in Uncategorized.

Too Many Contingencies 

Homebuyers set basic guidelines for concluding a property purchase through contingencies. Normally, having one or two contingencies might not have much of an impact. Contingencies, however, can either make or break your contract in a bidding war.

If you’re too demanding, the home seller might choose a different buyer whose proposal doesn’t have a long list of conditions. Therefore, prioritize your contingencies and make your offer as straightforward as possible.

Although many of us aren’t in a situation to submit a cash offer, we must get a pre-approval from a lender before entering the bidding process. It’s not always all about the price you submit.

Discover any additional requirements from the seller and make every effort to meet them. Your REALTOR® can help guide you through the contingencies in the contract.

Bidding The Pre-Approved Amount 

In today’s environment, well-priced homes typically receive a flood of offers, and the bidder who is ready for a bidding battle usually prevails. The greatest way to prepare for battle is to ensure that your financial preparation is strong. That includes obtaining a home purchase pre-approval.

Avoid entering the exact amount you had been pre-approved for in your offer. Many buyers arrive with a pre-approval for the same bid price. A buyer with an identical pre-approval may worry the listing agent because they have no room to haggle and may lose their eligibility if interest rates spike. It is frequently a wise move for purchasers in this marketplace to look at properties below their maximum loan amount. They will need some leeway to increase when you must compete against numerous bids, and if they have reached their highest amount, that will not happen.

Bidding Too Low 

Without a doubt, you won’t acquire the house if you don’t make a sufficient offer. When selling their house, many sellers have an optimum price in mind. You will not be eligible for the race if you do not reach or surpass that amount.

Buyers need to be aware that the desired sale amount is frequently near to market value. The homeowners will have gone over pricing data their agent had provided for comparable properties that had already sold in the area. Therefore, sellers typically know the value of their home and can support it with facts. This is not a time for low-ball offers. The one factor that causes purchasers to lose out in competition the most frequently is a sale price that is below this amount.

Your real estate agent will give you the sales prices of similar properties in the same neighborhood as the home you intend to purchase to further assist you in your preparation. These selling prices will provide significant insight into market worth and serve as important guidance as you choose the appropriate offer price.

Best offer first is the secret to winning a bidding battle, though. Bring your best bid straight away because there’s a good possibility you won’t get another opportunity to enhance it. Sellers frequently choose the overall most alluring firm offer. You’ll have a better chance of winning the house if you make your first offer as strong as you can.

Offering a low Earnest Amount 

Even if you do everything else perfectly, you risk losing the house if the owner does not find your Earnest Check Offering strong enough.

Earnest Checks are used to show how serious a bidder is about a house. A sizable payment signals a completely committed buyer to a vendor. In addition, if the check is non-refundable to the buyer so that both parties adhere to the conditions of the contract. The seller is thus given plenty of assurance that they can, in fact, see the sale through to closing day.

Consult your real estate agent if you’re unsure of how much to give in earnest money. They can advise you on what might be anticipated, and based on interactions with the listing agent, they might even have more information about the seller’s demands.

Conditions In the Offer 

A condition is nothing more than a hindrance to a seller. Sellers typically dislike conditions because they prevent a contract from being fully completed.

Sellers anticipate the presence of conditions in an offer in a balanced market. Conditions for financing and home inspections are most frequently used. These terms often safeguard the buyer by requiring that the mortgage money and the property’s construction and working order be confirmed before the offer can be accepted as firm.

Whether there is a seller’s market or not, agents will advise you to put conditions to protect yourself. In addition, you must balance your prospects of winning a bidding battle against the hazards of putting conditions on your offer. Ultimately, it’s an individual choice, and everyone has a different level of risk tolerance. Choose wisely.

Consider increasing your chances by shortening the period you must finish your due diligence if you feel more comfortable inserting conditions in the offer but are aware that there will be competition for the house.

Before submitting your offer, discuss the benefits and drawbacks of putting conditions with your real estate agent. 

Making An Offer Too Early 

Before offer day, some vendors will evaluate offers, while others won’t. So, use caution if you are faced with the latter situation.

Presenting an advance offer despite the seller’s intention not to accept pre-emptive offers (typically stated in the listing) may backfire on you. On the other hand, sending a seller an early bid lets them know how much you intend to offer for the house.

Even worse, it might set off a system requiring the estate agent to notify every other agency of an impending offer, which would bring about competition just as you were attempting to prevent it.

While making a preemptive offer is not always a bad idea, get advice from your real estate agent beforehand to ensure it’s likely to get considered. 

Making The Offer Too Late 

In most cases, listings will state if a seller has chosen to hold offers until a particular date in the future. This is new to the current market.

There are two reasons why this is crucial. Initially, you are on a very tight deadline if you schedule your first visit to the house on the day that offers are being accepted.

Second, the posting documents will specify the exact time of day by which offers must be received. This is done to maintain buyers’ parity and establish timelines for when an owner will evaluate incoming offers.

Discuss anticipated offer dates with your real estate agent before any showings to avoid this situation. This will enable you to leave at least one day between visiting a property and submitting an offer.

Not Reconsidering the Offer 

Today is offer day. It’s now only a matter of waiting for the decision after submitting a compelling offer with a substantial earnest check. Then something unexpected occurs. Your offer is sent back for revision.

Often a seller will send a few chosen bidders to the drawing board to resolve a tie when two or more offers are extremely comparable, raising their eventual selling price in the process. The seller will request that the buyers return with a better offer and even outline the adjustments that need to be made.

If a seller makes a verbal counter proposal or proposition to a bidder, it should only be taken as an offer to join. If the buyer decides not to proceed, the negotiation will be over, and another person will purchase the home.

This kind of negotiation might be emotionally charged. It could be challenging to embrace what the seller is proposing: it’s simply not good enough if you have already entered a bidding battle with your absolute best, strongest offer.

In the end, you’ll need to decide how much you intend to spend on the house and whether you can agree to the extra conditions that are being asked for.

Letting Others Influence You 

You’ll probably want another opinion when purchasing a home. Just be careful not to allow these well-intentioned individuals—who haven’t seen as many houses as you have—to influence your offer.

The advisor acts in the buyer’s best interest, protects them, and typically trashes the house. Unfortunately, they lack the knowledge necessary to view the other nine homes or comprehend the market. Ask the individual who has been with you for most of the process if you are going to be relying on outside guidance.

Trust your real estate agent and price appropriately. Even if doing so involves giving a little bit more than you first anticipated. It could be counterproductive to lowball the prospective sellers to start a negotiation. A rude lowball offer that isn’t supported by math or similar sales data may irritate the seller.

A Final Word 

When buyer demand outpaces the supply of available homes for sale, homes on the market frequently attract several purchase offers in the real estate market. As a result, a bidding war typically ensues when homeowners receive numerous offers from interested parties.

Don’t be discouraged—we know this list is a lot. That’s why our team at JS REALTOR® is so committed to serving homebuyers. We want to make the home buying experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE planning kit and connect with us today! Let’s go find your first home!

Top 5 Factors Lenders Use to Qualify You for a Home Loan

Written by Jeff Schultheis on . Posted in Uncategorized.

Before you can get a loan from most lenders, you will usually need to meet specific criteria that show you meet the lender’s general expectations. Here are some of the most important things a lender will think about when deciding whether or not to give you a loan.

 5 Factors Lenders Use to Qualify You for a Home Loan

Your Current Credit Rating

Your credit score is based on how much you’ve borrowed and paid back in the past and how well you’ve paid your bills in the past. When you apply for a loan, most lenders will check your credit score as one of the first things they do. The better your credit score, the more likely you will get a loan and the lower your interest rate.

The minimum credit score needed to qualify is much lower for a loan backed by the government, like an FHA or VA loan. For example, you can get a loan from the Federal Housing Administration (FHA) with a score as low as 500, and there is no minimum score for a loan from the Department of Veterans Affairs (VA).

On the other hand, a conventional home loan usually requires a credit score of at least 620. But if your score is below the mid-700s, you may have to pay a higher interest rate.

If you have bad credit and want to buy a house, you will have to pay a higher loan payment every month for as long as the loan is in effect. You should try to improve your credit score as much as possible by lowering the amount of debt you have, making payments on time, and not applying for new credit before buying a loan.

Ratio of Debt to Income

Your debt-to-income ratio (DTI) is the amount of debt you have compared to how much money you make. This includes your monthly mortgage payment. If you had a monthly income of $5,000 and total monthly debt payments of $1,500 for housing, auto loans, and school loans, your debt-to-income ratio would be 30 percent of your income or $1,500 divided by $5,000.

There are a few exceptions to this rule, but generally, the most debt you can have concerning your income and still get a traditional home loan is around 43%. Smaller lenders may be more willing to let you borrow a little bit more money, but larger lenders may have stricter rules and limit your DTI ratio to no more than 36%.

In contrast to the rules for credit scores, the rules for FHA and VA loans regarding DTI are very similar to those for conventional loans. When you apply for a loan through the VA, the most debt you can have compared to your income is 41%. On the other hand, the FHA usually lets you have up to 43% debt. But there are times when it is still possible to qualify even if your DTI is higher. For instance, the VA would still give you a loan, but if your ratio is higher than 41%, you’d have to show more proof that you can pay back the loan.

If you have too much debt, you won’t be able to borrow money for a property until you either pay off your debt or buy a home that costs less and has a lower mortgage.

Your Initial Deposit of Funds

Lenders usually need down payment from people who want to buy a home so that the buyer has some equity in the property. This protects the lender because if you don’t repay the loan, the lender will try to get back all the money they gave you. If you borrow the total amount that the property is worth now and then don’t pay back the loan, the lender may not get all of their money back because of the costs of selling the home and the chance that home values will continue to go down.

When you buy a house, the best down payment is 20% of the total price, and you should borrow 80% of the rest of the money you need. Most people, though, put down a lot less than that. Most traditional lenders require a minimum down payment of 5%, but if you are a good candidate, some may let you put as little as 3% down on the property.

You can get an FHA loan with as little as a 3.5% down payment. If your credit score is at least 580, you don’t have to put anything down for a VA loan unless the property is worth less than what you’re paying. If the property’s value exceeds what you’re paying, you can get an FHA loan with as little as a 3.5 percent down payment.

If you put less than 20% of the purchase price down on the house with a standard loan, you must pay private mortgage insurance (PMI). This usually leads to an annual cost between 0.5% and 1% of the total amount borrowed. You won’t be able to stop paying PMI on your mortgage until more than 80% of what you still owe on it has been paid off.

Get a loan through the Federal Housing Administration (FHA). You will have to pay a mortgage insurance premium upfront and every month for either the first 11 years of the loan or for the life of the loan, depending on how much money you borrowed at the start. Even if there is no down payment, a VA loan doesn’t need mortgage insurance, but the borrower usually has to pay an upfront financing fee.

Work Experience

Whether applying for a conventional loan, a VA loan or an FHA loan, every lender will ask you to show proof that you are currently working.

Lenders usually want to see that you’ve worked for at least two years and have a steady income. If you don’t have a job right now, you will have to prove that you are getting money from somewhere else, like disability payments.

The Home’s Valuation as Well As Its Current State

Last but not least, lenders want to ensure that the property you are buying is in good shape and worth the amount you are paying for it. The lender usually won’t give you money to participate in a questionable real estate deal unless you have the house inspected and the property evaluated.

If the house inspection finds significant problems, they may need to be fixed before the loan can be closed. The property’s appraised value also affects how much money the lender will let you borrow.

If you want to buy a house that is only worth $100,000 according to an appraisal, but you want to pay $150,000 for it, the lender won’t give you money for the total amount. They will give you a loan for a portion of the property’s appraised value of $100,000, but you will also need to come up with the agreed-upon additional payment of $50,000.

There is never a good reason to pay more than necessary for real estate. If an appraisal comes in lower than the price you gave for a home, your best bet is to either negotiate a lower price or back out of the deal. If you can’t get financing, the purchase agreement should have a clause letting you back out of the deal without paying any money.

Compare the Terms and Rates Offered By a Variety of Lenders

Even though all mortgage lenders consider these things, each lender has rules for who can get a loan and how much they can borrow.

Make sure to look into all the different kinds of loans you can get and compare mortgage lenders to find a loan with the best interest rate, given your current financial situation.

Final Words

Since purchasing a house is a significant financial and emotional choice, you should consider all the criteria listed above and select the correct type and quantity of loan so you won’t be burdened down the road. Additionally, conducting in-depth web research before selecting a loan is wise. By performing a fast internet search, you could uncover cheaper deals on interest rates and other costs. However, you should also talk to your primary banker because they can provide you with the greatest offers and services.

Each lender is unique. Finding out in advance what various lenders are searching for can help you present yourself in the best possible light.

In the end, if you want to get accepted for a loan, you must be truthful with your lender. It won’t help your predicament if you mislead your lender or keep facts from them. And if you’re left with a loan you can’t afford to pay off, it can come back to haunt you.

Don’t be discouraged—we know this is a lot. That’s why our team at JS is so committed to serving homebuyers. We want to make the home buying experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE planning kit and connect with us today! Let’s go find your first home!

8 Things to Do to Get Ready to List Your Home 

Written by Jeff Schultheis on . Posted in Uncategorized.

1.   Research, Research, Research!

Do your research on the market value of your house first. Start by browsing different online realtors to learn more about the neighborhood housing market. Then, to determine the right listing price, look at recent comparable properties in your area. Examine the square footage, amenities, and locations of the various comps and consider how they measure up against your house. For instance, even though your neighbor’s house may have gone for $1 million, you will probably need to market your property for less if it is significantly smaller. Of course, a trustworthy realtor must be able to help you identify comparable properties and choose a selling price for the house.

2.   Declutter Your Home 

According to the National Association of Professional Organizers, individuals spend at least a year in their lives searching for lost things. 

This won’t happen if we simply decluttered our homes, and only kept things in regular use. 

Start decluttering your home a few months prior to listing it. You may notice that you’re storing a lot of goods that you could immediately dispose of or re-home if you consider your children’s toys and artwork, old washroom toiletries, and piles of mail.

Neat property with spotless floors and counters appears welcoming in listing images and, tempting purchasers to present you a solid offer.

Well, decluttering isn’t exactly a glamorous task. For example, if you have various boxes of rubbish or significant pieces of furniture to get rid of, you might want to make plans for dumpster rentals.

To get going, take these actions:

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  • Reduce the number of items on floating shelves, mantles, and walls that are on display. Sports memorabilia and trinkets should be removed, and family photos should be kept in a secure location.
  • Sort through the old mail, papers, pens, and notebooks that have been piling up in the dining as well as home office. Do not keep sensitive papers you any longer require; shred them.
  • Put away seasonal things like the Thanksgiving roasting pan along with tiny equipment you don’t frequently use, such as the Air Fryer.
  • Get some plastic storage containers for your toiletries. Utilize them to conceal your daily makeup, toothbrushes, hairbrush, and other items by keeping them in bathroom cupboards.
  • Go through the bedside and throw away the body lotion and extra stuff. Hide your midnight reading and sleeping necessities in the area. Just leave a lamp perched atop.
  • Remove spoiled food from your refrigerator and pantry.
  • Consider donating the extra clothes in the closet. 

3.   Deep Clean Your Home 

You must establish a program of frequent cleanings and fast sprucing-ups prior to buyers stopping in for visits. This will keep your home tidy and neat, and won’t take too much time and effort. 

Regular cleanings are especially crucial if you intend to remain in your home while it is on the market for sale, which is what most sellers do.

Deep cleaning should be one of your top priorities before putting your house on the market because it will make these activities much simpler. However, to avoid having to cope with a messy home later, pay attention to these sometimes-overlooked areas:

  • Dust your ceiling fans. To finish the task, use a stool or ladder and disinfectant spray. Replace your rag with a pillowcase for stopping dirt from spilling on the floor.
  • Clean the interiors and doors of cabinets and closets. Cobwebs in the corners can be removed using a microfiber duster.
  • You can use a sock attached at the end of a broomstick and a band to clean in the nooks behind appliances. Vacuum up any debris.
  • Use the vacuum cleaner’s brush attachment to clean the baseboards. Apply a sponge soaked in lukewarm water with dish soap after that. Clean any unclean corners using cotton swabs.
  • Think of other parts of the house that need cleaning and start there right now. 

4.   Get Maintenance Work Done 

Before listing your home, you should discuss with your realtor and consider your budget when deciding whether to do costly repairs, including changing a 30-year-old ceiling. 

Did you know that renovating your entire home would cost around $45,000 to $75,000?

Now, renovations won’t cost this much if homeowners simply did necessary maintenance work. 

To ensure that everything’s in excellent working condition before potential buyers arrive, you might begin doing minor repairs all around the house.

For instance, consider this: 

  • If it has been over a year, get the HVAC serviced.
  • Patch up the drywall’s holes.
  • Replace all the air filters. 
  • Change out any burned-out light bulbs.
  • Check to see if the panels close and open properly and fix any that don’t.
  • Fix the water heater or the faulty faucet.
  • Ensure that the essentials, including large kitchen equipment and the bathroom fixtures like toilets, bathtubs, and showers, are in good working order.

5.   Gather All Your Renovation Documents 

If you’ve been in your house for a while, there’s a good chance that you will have all documentation and receipts for improvements and repairs to your appliances, little and large renovations, and fireplace and HVAC maintenance. Gather those right away so that they are prepared for your house inspector, property appraiser, and realtor.

The National Association of Home Builders say that the two most prominent areas homeowners renovate are the kitchen and bathroom. If you’ve also renovated these areas, make sure that you keep the renovation documents and receipts. Moreover, keeping your home in top condition with renovations and spruce-ups will likely increase the curb appeal and value of your home on the block. 

Buyers view your home as “old” and question how soon they’ll need to fix or replace something, like a huge appliance, if they’re purchasing a brand-new building. Therefore, you need to put yourself in the buyer’s shoes and think about the things you would replace or renovate. Once you have an idea of the places or devices you want to replace or renovate, make a list of them. Of course, you would keep in mind your budget for the renovations while doing this. However, just remember that these renovations pave the way of improving your property’s value. 

You may knock tasks off a buyer’s to-do list and increase the appeal of your house if you can show that you have already invested the time and expense necessary to improve it or maintain it in top condition.

6.   A Pre-Sale Inspection Might Be Good for You 

Even though you might think you know your house like the back of your hand, there might be problems lurking that you aren’t aware of. Therefore, consider getting pre-listing house inspection to learn about any issues before the buyer’s assessment, so you aren’t taken aback after accepting an offer.

If you’re worried about unattended maintenance or major problems that might be hiding, the inspection will set you back an equivalent of $339. However, it can bring you peace and relieve your stress. 

Discuss with your realtor about selling the house “as is,” and even think about asking for an upfront cash offer in case you don’t have the money to pay for the repairs upfront. 

7.   Get Your Preliminary Title Report 

The preliminary title report, sometimes known as “prelim,” is a brief report that informs you, the sellers, of any remaining issues with your home before you list it for sale. It is a preventative report, to put it another way.

You won’t be allowed to sell your house until the lien has been paid off, whether it relates to failure to pay child support, HOA dues, delinquent real estate taxes, another lender, or another issue.

8.    Find A Realtor 

In relation to real estate agents, we strongly advise hiring one to advertise your property. Through referrals from friends and family, as well as many realtor websites on the internet, you can easily find a realtor. Interview the listing agent you are considering hiring regarding their expertise in your community, their relationships with possible buyers, and their knowledge of social media. The agent needs to be able to provide you with a carefully thought-out plan for selling your house.

It’s important to begin that research as soon as you can because title difficulties can take some time to fix.

A Final Word 

Listing your property for sale can be overwhelming. However, going step-by-step in the process will help you stay on top of your schedule while keeping your peace of mind. 

Don’t be discouraged—we know there is a lot to consider. That’s why our team at JS REALTOR® Team is so committed to serving our clients. We want to make your experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you make the right decisions. Download our FREE planning kit and connect with us today! Let’s get ready to sell your home.

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