Archives for January 2018

6 Real Estate Scams to Avoid

Most people, by and large, are decent and honest. But it only takes one or two cheaters, scammers, or liars to make us all skeptical. As long as there’s been land to buy and property to own, there have been scammers. The old joke about selling swampland in Florida was, in fact, a real thing that happened to people for many years.

These days, real estate scams are rare but they happen. Whether you’re a current homeowner or you’re looking to buy, here are a few to watch out for.

Cash for Nothing

One scam to watch out for is the cash deal that requires almost no paperwork. “Owners” forge documents to make the sale seem legitimate and only want cash for the property. They don’t want to work with a real estate professional or a title company. The sale is meant to be quick and cheap. 

If you’re getting a property for much less than the going rate in the neighborhood and the “seller” insists on cash, be careful. You won’t know you’ve been scammed until you try to move into a home that’s still occupied by the actual homeowners. 

Rentals on Craigslist

Fraudulent rentals on Craigslist hurt two parties, though one more than the other. The homeowner doesn’t realize their home is listed for rent and won’t understand why someone with a moving truck wants in. On the other hand, the renter has paid a big deposit that they’re never going to see again.

Some rentals on Craigslist are genuine, but some aren’t. If you’re renting, do a Google search for the property or the rental company listed. Go by the office or call the phone number listed on the website (not on Craigslist) and verify that the property is available for rent. Homeowners can Google their property address to make sure it’s not showing up as an active rental listing anywhere, as well, to help prevent fraudulent rentals and angry “tenants.” If you find your property listed, report it to the local authorities.

Home for Sale on Craigslist

The scam on Craigslist isn’t always for homes that aren’t for sale. Instead, the property you saw in the listing isn’t the one you’re looking at when you arrive at the showing. It’s less a scam and more dishonest marketing tactics. In this case, you’ll likely be told that the original property is no longer available but they “thought you’d like this one.”

This other property is likely to be more expensive, in worse condition, or much smaller than the original one. No credible, ethical real estate professional will pull this fast one on you. If a property isn’t available, they’ll tell you and work hard to find something else that’s comparable. It’s okay to refuse to see a property you weren’t asked about or that’s different than what was advertised.

Wire Fraud

Like the all-cash deal with no paperwork, the wire fraud scam works in much the same way. A “seller” doesn’t want title insurance, real estate professionals, or paperwork involved. Instead, they’ll tell you to wire the funds directly to them to close the deal quickly.

When you do, you’ll find that the home wasn’t for sale, and they weren’t the owners. You’re out the escrow payment you could have used for a legitimate home purchase with no way to get your money back. They’ll have disappeared without a trace.

Foreclosure Fraud

This was more prevalent several years ago when the housing market plummeted and homes went into foreclosure. But it can still happen today. Someone approaches you or advertises a service as a “mortgage advisor” and promises they can help you stay in your home or save your credit.

They’ll offer you a title transference or deed and put legal looking paperwork in front of you. You may even be told to pay your mortgage directly to them. Once they have the paperwork signed, they take out a loan on the property and run with the cash or rent your home to someone else. Because you’ve signed over your home, you get evicted. If you run into problems paying your mortgage, talk to your lender first.

Title Fraud

Title fraud is extremely rare but when it happens, it’s devastating. It often begins with identity theft and impacts homeowners with no mortgage. The scammer obtains fraudulent documents letting them act as the property owner. They transfer the property into their name, get a home loan against the property, and vanish with the cash.

You don’t know it’s happened until lenders demand money, your credit score crashes, or you’re being evicted from your home. The best prevention for this is title insurance and to watch your credit very closely. If you know you’re the victim of identity theft, place a fraud alert with the credit bureaus so any new credit applications are flagged. 

Scams can be rare, but when they happen, they can devastate you financially. Most scammers prey on the desperate, vulnerable, or those not paying attention. Beware of anyone who wants to run through a process without proper contracts or real estate professionals involved. When in doubt, slow down and ask questions. 

When you want to buy, work with a real estate professional to make sure you’re only looking at legitimate offers and the legal process is followed, even with a cash sale. And if someone refuses to close a deal with you because you have a Realtor®, move on to another property. If you suspect you’re the victim of a real estate scam, contact local police and report it. 

What Renovations Should You Tackle This Year?

If you’ve lived in your home for a while, chances are good there are a few things that need doing, inside and out. Add in a plan to sell your home in the next 12 months, and those projects hold a lot more importance. While your personal budget makes a big difference in what renovations you choose to do, keep in mind what potential buyer’s focus on and what will offer the most return on your investment.

Here are a few renovations that result in higher home values and/or better offers once you list your property.

Kitchen Upgrades

Because it’s central to the majority of families’ lives, the kitchen will always be one of the top renovations homeowners make for themselves – and with potential buyers in mind. You might see up to a 75 percent return on the money you put in, if you choose wisely. If a full remodel isn’t an option, focus on the appliances, flooring, and backsplash. 

Bathroom Updates

For one of the smallest rooms in a home, bathrooms are extremely important. Changing out old, wobbly toilets and cracked sinks is just the beginning. Consider a higher seat, high-capacity toilet. Swap out an old, stained tub for a new one. Buyers are gravitating toward standalone showers as an option. Make it a frameless to really stand out.

Easier to Maintain

When a buyer can move into a home that doesn’t need a lot of constant care or immediate updates, you’re going to get their attention. Easy landscaping, hardwood or tile floors, and small fixes make a difference. But if you’ve got money to invest in your home, consider new HVAC, roof, and/or windows. Buyers want to know they won’t be faced with big expenses in the first couple of years – and these renovations offer peace of mind.

Be Energy Efficient

If you’re already tackling big home projects, this is easy to do. A new roof, HVAC, and/or windows easily increase the efficiency of a home. When you purchase new appliances for the kitchen, look for those that use the least amount of energy. Even small changes like replacing old light fixtures and ceiling fans, and swapping out your light bulbs for LED bulbs can make your home more attractive to potential buyers.

Make Your Home Smarter

You can go as big or as small to make your home smart. Install a smart thermostat or a smart home security system that you can access from your phone. Swap your door handles for smart locks that don’t require a full replacement when the keys need to be changed. Of course, if you’re looking for a bigger renovation, a whole-house generator can be a great selling point, especially in a hurricane-prone area like the Emerald Coast.

Whatever renovations you do this year should fit your budget and your lifestyle. But it’s always good to think to the future, especially if there’s a chance you’ll sell your home soon. And if you’d like market specific advice, based on the neighborhood you live in and the size of your home, talk to a Realtor^®. We’re happy to share our expertise and help you get the most value back for your renovations.

15 Things To Do If You Want to Buy a Home in 2018

Buying a new home can seem like an endless series of things to do and remember. Even after you get through the entire process, you sit at the closing table signing your name over and over again. Of course, at the end, you’ve got a beautiful new home to call your own and a future to plan. But before that wonderful moment, there’s a lot of stress.

If you’re planning to buy a new home this year, get ready now and make the process easier on yourself when you’re ready to start looking or put in an offer.

1. Get a copy of your credit report. You’re entitled to a free copy from each credit bureau once a year.
2. Check your credit report for errors and begin the (long) process of disputing them.
3. Take care of old, forgotten debts that could be dragging down your report.
4. Start paying down your debt. You don’t have to pay it off completely but lowering your debt-to-income ratio helps.
5. Monitor your credit score. The higher your score, the better your interest rate. Many banks and credit companies offer this service free, and it doesn’t ding your credit.
6. Add to your savings. You almost never have as much as you need and a lender wants you to have money left over after you pay closing costs.
7. Get realistic about your budget. You may want the bigger house, but can you really afford it?
8. Check to see if you qualify for programs if you’ve never owned a home or if it’s been several years since you have. First-time homebuyer programs and FHA loans may be available.
9. Talk to a lender. You don’t need to apply for a mortgage right now but get an idea of what you need to do to get the best rate, what loans are available, and how much home you may be able to afford.
10. Start cleaning out your closets now. The less you have to pack and move, the better. Think of it as an early spring cleaning.
11. Think about what you want, need, love, and hate in a home.
12. Make a list of everything you definitely want, can live without, or need. This includes type of neighborhood, commute, schools, and other details besides square footage.
13. Think about your future. Are you about to have kids or send them off to college? Do you want a home that will be with you through those changes or will you move again?
14. Feel free to begin looking – online or in person. You may not be ready to put in an offer but you’ll get an idea of what’s available, especially in your price range.
15. Start looking for your Realtor^®. Now is a good time to look around and figure out who you’d like to work with. Talking to a Realtor^® doesn’t cost you anything, and a good real estate professional won’t pressure you into anything you’re not ready for.

When you begin the homebuying process knowing what you can afford and with an idea of what you’d like, some of the hard work is already done. After that, it’s a matter of looking around, narrowing down what matters most and what doesn’t, and putting in an offer. With inventory as tight as it is, it’s best to get ready early rather than later. Once you do, you can focus on finding the home of your dreams and negotiating the best offer.

5 Things to Do If You Want to Sell Your Home in 2018

The start of a new year has us all thinking about what we want to do differently and how we want things to change. It’s not just our waist size or bank account either. Now is the time of year when homeowners decide this is the year to sell their home and move up or down.

If you’ve decided to make 2018 the year you sell your home, here’s what you need to do first.

Tackle Your Delayed Projects

Big and small, you’ve got projects around your home you’ve been putting off, delaying, or forgetting about. Now is the time to work on them. Replace the worn out shower head. Make the ceiling fans stop creaking. Patch that spot on the wall. 

And if you’re thinking of doing some major projects like upgrading the kitchen or replacing windows, talk to a Realtor^® about your local market. Your upgrades and remodels should stay in a budget you can afford but if you’re going to sell, make sure you offer what buyers want and get some return on your investment.

Check Your Curb Appeal

Plenty of homeowners spend time and money fixing the inside of their home and forget all about the exterior. Whether it’s a lawn you know needs work or old, faded exterior paint, make sure outside projects make the list of things to tackle before you sell. What a potential buyer sees when they drive by is what makes them want to walk inside to see more.

Bigger projects should be done well in advance of selling but just before you put your home on the market, don’t forget the little things. Plant flowers, trim the shrubs, and keep your lawn well-maintained. Doing it now will make life easier once you’re in the hustle and bustle of showings, open houses, and marketing your home.

Learn Your Home’s Value

At Rising Real Realty, we offer a free home value report to give you an approximate idea of your home’s value. This is important in determining if now is the time to sell or what you can do to improve your home’s value. The value of your home also helps determine the price you ask.

You can have this conversation with a Realtor^® more than once. Get an idea of your home’s value now and again once you’ve made upgrades and repairs. Also, the market changes over time – currently, it’s moving in a positive direction. Don’t get surprised at market fluctuations when your Realtor^® can help you along the way.

Figure Out Where You’re Going Next

Will you sell your current home and buy at the same time? It’s not uncommon but you need to decide before you list your home or accept an offer. Are you staying in the area? You can work with a single real estate agent. If you’re moving out of the area, your Realtor^® can refer you to a qualified agent in your new location.

Not everyone can juggle two mortgages while they wait for one home to sell. Sometimes you need to rent or make a contract contingent on buying your next home. Your Realtor^® can help you, regardless of how you decide to handle it, but it’s something you need to think about sooner rather than.

Talk to a Realtor^®

You don’t have to be ready to list your home tomorrow to talk to a Realtor^®. We’re available to help you through the process, even when you’re months away from listing your home. From home valuation to potential pricing and upgrades to curb appeal, a good Realtor^® can offer advice to help you make the best possible decisions before you sell and once your home is on the market.

Inventory is low in many price points across the Emerald Coast. Now is a great time to sell your home. Get it ready before you list and price it right, and you may be surprised at how quickly the offers roll in. If you plan to sell in 2018, contact Rising Star Realty today!