Property Tax Managers

Understanding Home Seller Disclosures and What Information You Need to Share When You Sell

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Understanding Home Seller Disclosures and What Information You Need to Share When You SellWhen people buy a new home they have a right to be informed of the problems that they may face on the property and any issues that the home previously experienced.

However, as a seller it can be difficult to know whether the required information is being disclosed. Nobody wants to appear misleading, especially when it can impact a sale, and making sure all the proper information is finding its way to the buyer is imperative to make the deal go through.

What Needs To Be Disclosed?

Disclosures are not handled at the Federal level except for the Lead-Based Paint Hazard Reduction Act, which requires all sellers to have their home inspected for lead paint if it was constructed before 1978.

Other possible disclosures include any legal issues with the property title, mold and water leaks, problems with the plumbing or sewage on the property, and issues with the roofing, air conditioning and heating systems.

Disclosure Laws Differ From State To State

While it is best to err on the side of caution when dealing with home seller disclosures, every state’s laws are different and some are more stringent than others. A seller may believe they are disclosing everything that is required and still find themselves on the wrong side of a lawsuit.

When deciding what to disclose to a buyer it’s best to always consult a local real estate agent. Any professional will know the specific laws to their area and will be sure to let you know if you have left something vital off the list.

When Disclosing Can Be A Positive

All disclosures are not created equal and in some situations they can even work in the favor of the seller. When the seller tells the buyer about an issue from the home’s past that has been repaired it can be a huge benefit.

Not only is the buyer being informed about the home’s history, they are being shown that the seller was a responsible home owner who took care of the property and fixed the issues as they came up. This can give them a sense of security and confidence that the home was well maintained.

If you are in the process of selling your home but can’t figure out what you need to disclosure legally and what you should disclose morally, speak with your local real estate agent. They will be able to walk you through the process so nothing is left off the list.

Mortgage Myths: Here’s Why You Don’t Need a Full 20 Percent Down Payment

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Mortgage Myths: Here's Why You Don't Need a Full 20 Percent Down Payment If you’re just getting into the real estate market, you may have heard that 20% down is the ideal percentage in order to lower your monthly payments and get your mortgage application approved. However, while 20% is often suggested, many people struggle to come up with this amount of money. If you’re staving off home ownership, here are some reasons you may not need to hold off as you long as you thought.

Minimizing Your Insurance Costs

Putting down 20% of the total purchase price of your home is often suggested, but it doesn’t definitively mean that your application won’t be approved if you don’t. If you have a good credit score and are in good financial standing, putting less than 20% down means you’ll have to pay Private Mortgage Insurance (PMI); however, it can be worth paying the extra funds in order to get into the real estate market sooner and start paying into your most significant investment.

Mortgage Programs For Less Than 20%

It may seem less possible to buy a home if you only have 5 or 7% of the purchase price, but there are many programs in the United States that enable those with limited funds to apply for a mortgage. From the Federal Housing Administration (FHA) to Fannie Mae and Freddie Mac, there are many lenders that can offer you mortgage programs that will work for your situation. While higher rates come in tandem with a lower down payment, there are options out there for those who haven’t saved quite enough.

Why Put Down 20%?

Putting down 20% is not a necessity for mortgage approval or purchasing a home, but it can be a great means of saving money in the long run and reducing your interest rates. If you’re raring to get into the real estate market and don’t want to wait for the bills to stack up, that’s OK, but if you want to hold off and save up additional funds before diving in, this can mean more money and a more solid investment in the future.

20% is often the magic number when it comes to a down payment on a home, but you don’t require this percentage of your home’s price in order to get approved for a mortgage. If you’re currently considering diving into home ownership and would like to know more about the opportunities in your area, contact your local real estate professional for more information.

What Types of Coverage Are Included in Standard Home Insurance Policies? Let’s Take a Look

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What Types of Coverage Are Included in Standard Home Insurance Policies? Let's Take a LookEvery insurance policy is different and can provide certain levels of protection tailored towards the needs of the policy holder. However, there are some standard types of coverage that are included in most basic home insurance policies.

Basic Levels Of Protection

Most homeowner insurance policies will include some basic levels of protection and coverage. The main dwelling will be protected from many forms of damage and the insurance company will pay to repair the damaged dwelling. This will extend to other smaller structures on the property, like sheds and separate garages, but the level of coverage will differ.

Damage is one important aspect of insurance, but protection for personal belongings is equally important and is also included in a standard home insurance policy. The monetary value of items in the home will be covered in case of damage or theft, so it’s a good idea to keep track of valuables. Every insurance company will have a different limit on the amount covered, so it’s wise to compare the value of belongings against the level of coverage.

The third aspect of home insurance policies is liability protection. This will cover any personal injuries that are incurred on the property by people who do not live there. It may seem silly, but having protection in case of a lawsuit can go a long way to saving a family financially as attorney fees and medical bills add up.

What Is Not Included?

Although each insurance company has different policies that cover different parts of the home, almost all of them do not include one important aspect in their policies. Damage caused by floods, earthquakes and war will not be included in most standard home insurance policies and may be important depending on the geography of the area.

Another important note is that flood damage does not just apply to natural flooding in the region, but will also include water damage from broken pipes or backed up sewage lines. It’s an important distinction because many first-time home owners assume this water damage will be covered under their basic insurance policy.

The right insurance policy can be difficult to figure out for first-time home owners. There are many questions to ask about the property to determine the right policy and it’s a good idea to consult your local real estate agent to get their insight into what additions may be needed.

5 Mistakes That Will Instantly Turn a Home Buyer Away – and How to Avoid Making Them

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5 Mistakes That Will Instantly Turn a Home Buyer Away - and How to Avoid Making ThemIf you’re preparing to sell your home you’ve likely heard many tips and tricks to help close quickly, however few people will ever tell you what you’re doing wrong.

Don’t be your own roadblock to success! Avoid these common seller-mistakes to ensure that your home leaves a lasting impression on buyers, instead of sending them running for the hills.

1) Dirt: It’s A Don’t

Perhaps one of the biggest turn-offs in real estate, dirt gives the impression that your property is not well maintained. A dirty home is simply not aesthetically appealing and can often be the root cause of other turn-offs, such as bad odors. Keeping a clean, clutter-free home will show potential buyers that your property is a beautiful, healthy place where they can live comfortably without any foul surprises.

2) It’s Nothing Personal

While you may love looking at family photos, funky trinkets from travelling, or your colorful assortment of bath products, personal items such as these should be stored away during an open house. Showings are for buyers to see if they can see themselves living in your home, which is difficult to imagine when there are someone else’s belongings scattered throughout the house. If you’re serious about selling, pack away any items that send the message that this is your space.

3) Old News

Most often when people are looking for a new home they’re looking for just that: a NEW home! Having old, dated fixtures in your house tells prospective buyers that your property is stuck in the past, rather than prepared for the future. Make your property a place that anyone can move forward in.

4) Street Style

You may have spent so much time and effort making the inside of your home immaculate for a sale that you’ve completely forgotten that the outside is equally as important. Curb appeal is the very first impression that your home will have on buyers, and it’s essential that your property looks just as nice from the street as it does inside.

5) Snoopy Seller

You know your home better than anyone else, and you want to sell it to someone who genuinely cares about your property. While this statement may be true, it is counterproductive for you to participate in showings, pointing out all the great features of your home to interested buyers and grilling them on their intentions for when they purchase it. Give buyers space they need to see if your home is the right fit for them, and you’ll be selling it in no time.

Interested in receiving more advice on selling your home? Contact your trusted real estate professional today.