Newmark Title Services ’s Post

Common Misconceptions About Real Estate Appraisal. Real estate appraisals are a necessary step in the home buying and selling process, but there are many misconceptions about what they are and what they do. In this article, we will clear up some of the most common misconceptions about real estate appraisal. Misconception #1: The appraiser determines the price of the home. Many people believe that the appraiser is responsible for determining the price of a home, but this is not the case. The appraiser's job is to provide an unbiased estimate of the home's value based on a variety of factors such as the home's condition, location, and comparable sales in the area. The price of the home is typically determined by the seller and buyer during negotiations. Misconception #2: A higher appraisal means a higher sale price. While a higher appraisal may indicate that the home is worth more, it does not necessarily mean that the sale price will be higher. The sale price is determined by the buyer and seller during negotiations and may be influenced by factors such as market conditions, the sellers need to sell in a certain time frame, and the buyer's ability to secure financing. Misconception #3: Appraisals are only required for mortgages. While appraisals are often required for mortgages, they are also needed for other situations such as refinancing, home equity loans, property tax appeals, and the division of assets due to divorce, bankruptcy, or an estate. An appraisal can provide valuable information about a home's value in these situations and help ensure that the parties involved are making fair and informed decisions. Misconception #4: Real estate appraisal takes a long time. Some people believe that real estate appraisal is a time-consuming process, but this is not always the case. Depending on the complexity of the home and the availability of comparable sales in the area, an appraisal can typically be completed within a week or two. Misconception #5: Appraisals are expensive. While some people may view appraisals as an unnecessary expense, a good appraiser can actually save homeowners money in the long run. An accurate appraisal can help ensure that a home is not overpriced, which can make it more difficult to sell. Additionally, an appraisal can help homeowners avoid paying too much for a home, which can save them thousands of dollars in the long run. Investment into real estate should always be accompanied by an appraisal. In conclusion, property appraisals are a crucial step in the home buying and selling process. However, there are many misconceptions about what they are and what they do. By understanding the true purpose of an appraisal and the misconceptions surrounding them, homeowners can make more informed decisions and navigate the home buying and selling process with greater ease.

To stage or not to stage- with Arrival Home Loans bridge loan, the answer is easy...

🏠 Home loans are anything but one-size-fits-all. From conventional loans to jumbo loans to adjustable rate mortgages, and more, borrowers come to the table with diverse needs – and it’s your loan officer’s job to connect you with the right mortgage for your situation. But many people don’t know that there’s a different category of mortgages for condominiums. ✅ HIGHER RISK, HIGHER RATE While buying a condominium is rarely a risky purchase from a buyer’s perspective, lenders will nevertheless assign a higher risk profile to this type of real estate because the borrower isn’t the only owner. And this means that interest rates on condo loans are typically higher compared to single-family home loans. Based on market conditions, the rate premium can range from .25% to 75%. And like most other mortgages, if a buyer is putting less money down, they can expect a slightly higher rate. Rates are just one consideration when taking on a condo loan. Lenders will also factor monthly homeowners association (HOA) dues, also known as assessments, into the loan qualification process. These fees add to your overall monthly payment, and therefore a lender may approve you for a lower loan amount. ✅ WARRANTABLE vs. NON-WARRANTABLE Lenders also will determine whether a condominium building is ‘warrantable.’ This means that the building must meet specific criteria set forth by Fannie Mae and Freddie Mac, such as no single entity owning more than 10% units and no more than 50% of units acting as rentals. If a condominium is not warrantable, it doesn’t mean that a borrower automatically won’t be able to get a mortgage. But certain lenders will not participate in the non-warrantable condo market, and if they do, borrowers can again expect a higher interest rate due to the increased risk of lending. It is very important for condominium buyers to work from the very start of their search with a mortgage professional, real estate agent and attorney who are all experienced in condo transactions. It’s important to review all condominium association financial statements and budgets, especially the reserves allocated for future maintenance and improvements. Your lender will need to know the building has enough funds to run the operations smoothly and pay for necessary maintenance and repairs. Questions? Let's chat 📱 773.860.6955 Source: atproperties.com/blog #atproperties #bellerthomes #chicagorealestatebroker #chicagorealtor #realestatetips #realestatetipsandadvice

Sellers can still offer compensation to a buyer's agent outside the MLS. The Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac have all issued guidance saying that buyer agent fees paid by sellers will not count toward interested party contributions (IPCs). Here's how that may impact you: 1 -WHAT ARE "INTERESTED PARTY CONTRIBUTIONS"? Sellers can contribute up to 6% of the sales price toward a buyer's closing costs when the buyer is financing the home purchase with an FHA-insured loan. For conventional mortgages purchased by Fannie Mae and Freddie Mac, sellers can contribute between 2% and 9% of the sales price toward a buyer's closing costs, depending on the loan program. This is known as "seller-paid closing costs," or "seller concessions," or "interested party contributions." This reduces the upfront cash buyers must bring to closing, making the home purchase more affordable. 2- BUYER'S AGENT FEES DO NOT NEED TO BE INCLUDED WITH SELLER CONCESSIONS. On a home purchase involving conventional financing or an FHA-insured loan, it's better NOT to include the buyer's agent fees paid by the seller as a seller concession. Instead, this should be treated as a separate line item in the purchase agreement. For example, "the seller agrees to pay x amount toward the buyer's closing costs, and x amount toward the buyer's agent fees." 3- WHAT'S THE NEXT STEP? Contact me to schedule a business planning session to evaluate how the new commission rules may impact your business. It's more important than ever to partner with a qualified mortgage professional. I can help ensure the seller concessions in your purchase or sale agreements are structured properly to comply with lender guidelines. #kellyflmortgagepro www.fl-mortgagepro.com

🌟 Home Inspections for Sellers: How to Prepare 🌟 🌐 KrisMcCullough.com Preparing your home for an inspection? Consider tackling key repairs before listing to ensure your property shines. But how do you know what’s worth fixing? That’s where expert advice comes in. I work with some AMAZING Real Estate Agents, and I can’t stress enough the importance of partnering with a great agent who can guide you on which repairs to prioritize before hitting the market. Remember: “$1 in, $2 BACK!” Let’s chat about what’s essential so you can get the best return on your investment. 📍 Need a Real Estate Agent Recommendation? I’ve got you covered! 🔑 Comprehensive Loan Options 🔑 🏠Manufactured Home Loans 🏠Construction Loans 🏠Land Purchase Loans 🏠VA Loans 🏠FHA Loans 🏠USDA Loans 🏠Conventional Loans 🏠One-Time-Close Construction Loans 🏠Home Equity Line of Credit (HELOC) Loans 🏠Reverse Mortgage Loans 🏠Reverse Mortgage Purchase Loans 🏠Cash Out Refinance 🏠Down Payment Assistance Loans 🏠Buy Before You Sell Loans 🏠Zero-Down (FHA) Home Loans 🏠CalHFA FHA Home Loans 🏠Barndominium Construction Loans 🏠VA Manufactured Home Loans 🏠FHA Manufactured Home Loans 🏠Conventional Manufactured Home Loans 🏠Land Leased Manufactured Home Loans (Chattel) 🏠VA One-Time Construction (OTC) Loans 🏠FHA One-Time Construction (OTC) Loans 🏠Conventional One-Time Construction (OTC) Loans 🏠Debt-Service Coverage Ratio (DSCR) Loans 🏠Hard Money Loans 🏠Fix & Flip Loans 🏠Bridge Loans 🏠Rate & Term Loans 🏠Bank Statement Loans 💼 Your Trusted Partner for All Mortgage Needs 💼 Kris McCullough Real Estate 📱 Call/Text: 951.387.0037 📧 Email: [email protected] 🌐 www.KrisMcCullough.com NMLS#1756904 | DRE#01985953 Patriot Pacific Financial Corp NMLS#1921615 | DRE#02103516 📍 Serving: California, Arizona, Texas, Colorado, Florida, Virginia, Idaho, Tennessee, Alabama, South Carolina, North Carolina, Ohio, Michigan, South Dakota, Louisiana #HomeInspection #RealEstate #HomeSelling #MortgageSolutions #FirstTimeHomeBuyer #DreamHome #PropertyInvestment #HomeLoans #KrisMcCullough #PatriotPacificFinancial #HomePreparation #ExpertAdvice #RealEstateAgentRecommendations

**Thinking Outside the Box in Orange County Real Estate** As we navigate the ever-changing landscape of Orange County's real estate market, it's essential to think creatively and explore unconventional strategies to achieve success. A recent article caught my attention, highlighting innovative approaches to buying, selling, and investing in real estate in our local market. **Seller Financing: A Game-Changer for Buyers** One strategy that stood out was seller financing, where the buyer makes payments directly to the seller, bypassing traditional mortgage lenders. This can be a lifeline for buyers with less-than-perfect credit scores or those who don't qualify for a traditional loan. By working with experienced agents and investors, buyers can tap into this alternative financing option and secure their dream property. **Lease-to-Own: A Win-Win for Buyers and Sellers** Lease-to-own agreements are another creative approach that can benefit both parties. Buyers can rent a property for a set period with the option to purchase at the end of the lease, allowing them to build equity while testing the waters. Sellers, on the other hand, can attract a wider pool of buyers and generate a steady income stream. **Short Sales and Distressed Properties: Opportunities for Sellers and Investors** For sellers facing financial difficulties, short sales can provide a viable solution. By working with their lender to accept a lower payoff amount, sellers can avoid foreclosure and minimize damage to their credit score. Meanwhile, investors can capitalize on distressed properties, rehabilitating them to generate significant returns. **Rental Properties: A Steady Stream of Passive Income** Investing in Orange County rental properties can provide a reliable source of passive income, especially in areas with high demand and limited supply. By partnering with experienced agents and property managers, investors can minimize risks and maximize returns. **The Importance of Expert Guidance** Throughout the article, one theme emerged: the importance of working with experienced agents and investors who can help individuals navigate the complex world of real estate. Whether you're a buyer, seller, or investor, having a seasoned professional by your side can make all the difference in achieving your goals. **What's Your Take?** I'd love to hear from you Have you explored any of these creative strategies in your real estate journey? What challenges or opportunities do you see in the Orange County market? Share your thoughts and let's continue the conversation! **Let's Connect** If you're looking to explore these innovative approaches or simply want to stay ahead of the curve in Orange County

Understanding the ABCs of Real Estate: Key Terms for Buyers and Sellers Navigating the world of real estate can be daunting, especially with the industry-specific jargon used by professionals. Whether you are looking to buy or sell a home in the Triangle area, understanding common real estate terms is essential. As your dedicated real estate experts, Linda Craft Team Realtors is here to break down the most important terms you’ll encounter, ensuring you’re well-prepared for the journey ahead. For Home Sellers 1. Listing Agreement: This is a contract between you, the homeowners, and a real estate agent (like us), authorizing the agent to represent you and sell your home. Let’s discuss how we can represent your interests. 2. Asking Price: The initial price you set when your home is put on the market. It’s crucial to set a competitive asking price that reflects the current market conditions. We can provide a market analysis to help you set the right price for your Raleigh home. 3. Home Inspection: A thorough examination of your property by a professional who will check for structural and mechanical issues. Opting for a pre-listing inspection can be a smart move to fix any problems before putting the house on the market, making it more attractive to buyers. 4. Curb Appeal: The attractiveness of your property when viewed from the street. Together, we can enhance your Triangle area home’s curb appeal to make a lasting first impression and potentially increase the property’s value. 5. Staging: The process of decorating your home to impress potential buyers and sell it quickly at the highest possible price. We can guide you through staging your Raleigh home to showcase its best features. 6. Closing Costs: These are expenses over and above the price of the property in a real estate transaction. As your agents, Linda Craft Team Realtors will help you understand what costs you might be responsible for and negotiate the best terms. 7. Escrow: An account held by a third party on behalf of the buyers and sellers. It holds funds, including the earnest money deposit, until the deal is closed. We’ll ensure that your transaction is secure and transparent. For Home Buyers 1. Pre-approval: A lender’s commitment to lend you a specific amount based on your creditworthiness and financial position. Getting pre-approved is crucial, and we can connect you with reputable Triangle area lenders to strengthen your buying position. 2. Mortgage: A loan specifically for purchasing real estate, with the property itself securing the loan. We can help you understand different types of mortgages and find the best one for your needs. Continue reading: https://lnkd.in/ey7Mb2FN #RealEstateBlog #HomeBuyingAdvice #HomeSellingTip

an Arrival Home Loans bridge loan helps buyers who may have a home to sell get out of their own way. Vacating your home before selling allows the house to be de-personalized, de-cluttered, touched up, and professionally staged. Professionally staging a home can significantly impact its selling price, often leading to a higher sale price and quicker sale. On average, staged homes sell for 5% to 20% more than non-staged homes, depending on factors like the market, location, and buyer demographics. Here's a breakdown: 1. National Averages- A 2023 survey by the National Association of Realtors (NAR) indicated that 81% of buyers’ agents reported staging made it easier for buyers to visualize the property as their future home. Staged homes typically sell for $10,000 to $40,000 more on a $200,000–$400,000 property, depending on the market. 2. Quicker Sales = Less Negotiation Staged homes spend significantly fewer days on the market—sometimes up to 50% faster. Faster sales reduce the likelihood of price drops, increasing the seller's final net amount. 3. Buyer Appeal by Room- Staging critical spaces like the living room, kitchen, and master bedroom yields the best results. Buyers are often willing to pay a premium for a home that feels move-in ready. Key Takeaways: While exact returns vary, professional staging is often well worth the investment, especially in competitive markets. The cost of staging, ranging from $500 to $3,000 or more, can be easily offset by the increased sale price and reduced time on the market. Many times, the costs of a bridge loan may be recouped through the increased sales price of the departing home. You may email [email protected] to learn more about our unique and modern-day approach to consumer bridge lending. Wholesale opportunities are available by emailing [email protected].

It's Mortgage Monday! In the world of real estate transactions, there's a term that often crops up: seller concessions. Understanding seller concessions can play a crucial role in your purchasing strategy. What Are Seller Concessions? Seller concessions, also known as seller contributions or seller credits, refer to incentives offered by the seller to the buyer during the home buying process. These concessions typically involve the seller covering some of the buyer's closing costs, though they can also take other forms, such as repairs or upgrades to the property. How Do Seller Concessions Work? Seller concessions are negotiated as part of the purchase agreement. When making an offer on a property, buyers can request seller concessions, specifying the amount or percentage they would like the seller to contribute towards closing costs or other expenses. The seller then has the option to accept, reject, or counter the buyer's request. Benefits for Buyers: Reduced Upfront Costs: One of the primary benefits of seller concessions for buyers is that they can help reduce the upfront costs associated with purchasing a home. By having the seller cover a portion of the closing costs, buyers may need less cash on hand at the time of purchase. Improved Affordability: Seller concessions can make homeownership more accessible for buyers who may be struggling to cover the various expenses involved in buying a home. Flexibility in Financing: For buyers who are tight on cash or prefer to preserve their savings, seller concessions provide flexibility in financing. Instead of having to come up with additional funds for closing costs, buyers can roll these expenses into their mortgage. Considerations for Buyers: Impact on Negotiations: While seller concessions can benefit buyers, it's essential to recognize that they are part of the negotiation process. Sellers may be less inclined to agree to concessions in a competitive market or if they've received multiple offers on their property. Potential Trade-Offs: Buyers should weigh the benefits of seller concessions against other factors, such as the purchase price of the home. In some cases, sellers may be willing to offer concessions but at the expense of a higher selling price. Loan Limitations: Buyers using certain types of loans, such as FHA or VA loans, are subject to restrictions on the amount of seller concessions they can receive. It's essential to understand these limitations when negotiating seller concessions. In conclusion, seller concessions can be a valuable tool for buyers looking to alleviate some of the financial burdens associated with purchasing a home. However, it's crucial to approach negotiations with a clear understanding of your financial situation, the local market dynamics, and any potential limitations or trade-offs involved. If you have specific questions or topics you'd like me to cover in future posts, feel free to let me know in the comments below. Happy Monday!

New Clarification for Real Estate Professionals. Read until the end. "If the settlement is approved by the court, although agents and home sellers will not be able to list offers of compensation on the MLS, home sellers may still offer to cover the buyer’s agent fees if they so choose.... NAR president Kevin Sears announced that he received confirmation from Gordon that, per FHA policy, if sellers continue to pay buyer broker commissions and fees as a manner of state and local laws or customs, and if these expenses are reasonable in amount, the existing policy would not treat those payments as interested party contributions." -HousingWire Max Allowable Seller Concessions on Home Loans: Conventional @ 3% FHA @ 6% USDA @ 6% VA @ 4% Customary and reasonable to the local market is understood to mean the typical 3% of commissions going to the buyer and 3% going to the seller. The new proposal draws a hard line to define Concessions and Contributions, often used as one in the same. The undocumented Buyer agent Commissions on the MLS leaves buyers agents to rely on their vices to ensure they get paid for their services. However, now the seller can also contribute to paying these commissions without having the commissions reduce the max allowable concession allocation. This helps to ease the frustrations of First Time Homebuyers who may not have much in the way of finances to cover closing costs. As A Sellers Agent, would you increase the purchase price to cover these commissions that the homebuyer cannot afford to pay out of pocket in lump sum? As an Appraiser, does this home appraise with the increased purchase price based on future ritualistic real estate growth and value appreciation trends?