Buying a Home

At-Home Kitchen Tips: Lessons in Utility

Though a chef’s at-home kitchen might conjure up visions of a high-tech food lab with commercial-grade appliances and stainless steel surfaces, the reality looks slightly different.  The most consistently desired feature in many chefs’ kitchens — an open floor plan — has less to do with replicating a commercial kitchen, and is more about making cooking a communal, accessible experience.  Top Chefs share their tips for making a home kitchen work efficiently:

— Airtight glass jars on the kitchen counter allow for immediate access to the most-used spices.

— An open floor plan is critical when you spend a lot of time in the kitchen, so guests can interact with the chef.

— Bring the outdoors inside with large windows or doors to outside.

First-time Homebuyers: Mistakes Not to Make

Whether you’re a veteran homebuyer or a first-timer, home buying can be a challenging experience. If you’ve never bought a home before, make sure you understand and avoid some of these common mistakes, courtesy of 20-year industry expert, Rick Allen, COO of MortgageMarvel.com:

1. Not knowing how much you can afford. Before you start shopping, talk with a lender and get pre-approved for a mortgage. That way, you’ll know the price range you should be shopping within, and you won’t fall in love with a home that’s out of your reach.

2. Not fully understanding all the ins and outs of the different kinds of mortgages. If you sign on for an adjustable rate mortgage because the payments are lower now, you need to know exactly when—and by how much—the payments will increase in the future. Then, you need to be realistic about whether you’ll be able to meet the increased payments. Or if you sign on for a 15-year mortgage to pay off the debt faster, be comfortable that you can still handle the higher payments if you experience a shift in income.

3. Failing to work with an agent who represents you.  If you’ve never bought a home before – or even if you have – you need a professional in your corner to give you guidance and advice on the home-buying process.

4. Underestimating the cost of owning a home. You’re going to have repairs, and your utility bills may increase. Be prepared to set aside a small percentage of the purchase price of the home (at least 1 percent) each year for repairs and maintenance.

5. Failing to budget for property taxes. It’s a fair bet that, over time, your property taxes will increase. To get some idea of possible long-term impact, talk to your local assessor’s office or people in the neighborhood.

6. Being inflexible. Everyone has a dream house in mind, but you’ll probably not be able to get everything you want. Figure out up front what you absolutely have to have and what you would like to have but could forego.

7. Not doing a home inspection. You might save a few hundred dollars by skipping the inspection, but you could get stuck with a money pit after the deal closes. Don’t commit to a purchase until you have a good idea of the house’s true physical condition.

8. Assuming a foreclosure is a great deal. All you know for sure about a foreclosure is that the previous owner couldn’t make the payments. Until the home is inspected, you don’t know what condition it’s in, especially if it has sat vacant for a long time.

9. Losing your poker face. No matter how excited you might be about a particular house, don’t let your feelings show. If you do, you can lose valuable leverage in a negotiation.

10. Failing to include a contingency clause in your contract. A mortgage financing contingency clause protects you from having to go forward with the deal if certain things happen, such as losing your job and having your loan offer withdrawn or having the appraisal come in lower than the purchase price.

Decorate in Style: Master the Art of Throw Pillows with 9 Simple Do’s and Don’ts

A great way to spruce up your home with some bright colors and personalization is to incorporate decorative throw pillows. These wonderful accent pieces have come into their own as one of the least expensive and most cost-effective ways to personalize furniture and change a room’s décor—they may even serve as a great conversation starter at your next party.

“The perfect scarf or bracelet can turn an ordinary outfit into an extraordinary one,” says Kris Woodcock, VP of Merchandising for Ashley Furniture. “In the same way, the perfect combination of toss pillows can turn an ordinary room into a showstopper.”

Many exciting new pillow trends are making their debut, from couture, nubby and boldly patterned choices, to a bolder mix of pillow styles together. But how do you mix and match decorative toss pillows to create a look that’s right for you?

Here are some great suggestions:

1. DON’T use cheap-looking pillows. Nothing ruins a good-looking sofa more than dated or poor quality pillows, while nothing transforms an inexpensive sofa more than high-quality, fashion-forward toss pillows.

2. DO match the mood of your pillows to the mood of your sofa. Choose toss pillows the same way you chose your sofa—based on your lifestyle and tastes. For example, use dressy pillows with a dressy sofa; casual pillows with a casual sofa.

3. DON’T use pillows that are duller, or a lot lighter than the sofa. There’s an exception to every rule, but decorators agree that decorative pillows look best when they’re darker, brighter or bolder than the sofa.

4. DO use pillows in a similar style. For an elegant look, stick with satiny or faux-fur fabrics. For a global look, stick with earthy or exotic fabrics. For a modern look, stick with bright or geometric fabrics.

5. DON’T use pillows too big (or too small) for the sofa. Large throw pillows on a small sofa will make it look even smaller. Small pillows (or too few of them) on a large sofa will look dwarfed.

6. DO use toss pillows with related colors. Forget about fancy color theories. Simply choose pillow colors with something in common, such as hues all inspired by a country landscape or a summer fruit salad.

What is Title Insurance and why do I need it?

When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. That is what a title search and title insurance are for.

After your sales contract has been accepted, a title professional will search the public records to look for any problems with the home’s title. This search typically involves a review of land records going back approximately 30 years. More than 1/3 of all title searches reveal a title problem that title professionals fix before you go to closing. For instance, a previous owner may have had minor construction done on the property, but never fully paid the contractor. Or the previous owner may have failed to pay local or state taxes. Title professionals seek to resolve problems like these before you go to closing.

• The Owners Policy – Owners Title Insurance, called an Owner’s Policy is designed to protect you from title defects that existed prior to the issue date of your policy. It is usually issued in the amount of the real estate sales price.  Title defects, such as improper estate proceedings or pending legal action, could put your equity at serious risk. An Owner’s Policy provides assurance that your title company will stand behind you — monetarily and with legal defense if needed — if a covered title problem arises after you buy your home. The bottom line is that your title company will be there to help pay valid claims and cover the costs of defending an attack on your title. Unlike other forms of insurance, the original premium is your only cost as long as you own the property. There are no annual payments to keep your owner’s policy in force. The owner’s title policy can also save you money on future lender’s policies, in the event you refinance or sell the property within a limited time period.
• The Lender Policy – There are two types of title insurance: Owner’s title insurance, as mentioned above, and Lenders title insurance, also called a Loan Policy. Most lenders usually require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off.

Going Once, Going Twice…Sold! Put Together an Offer the Seller Won’t Refuse

Submitting an offer on a home and waiting to hear back is one of the most stressful parts of the home-buying process. Since there is always room to negotiate when it comes to price, you want to be sure to put in an offer that the seller can’t refuse or you risk losing your dream home to someone with a higher bid.

While prospective homebuyers are often unaware of current trends in the real estate market, many typically rely on advice and guidance from their parents, friends and coworkers who don’t necessarily have a good pulse on the real estate market.

That’s why educated buyers who have spoken with their agent about an acceptable offer will have a better chance of hearing “sold” when the phone rings. Not only will a good agent offer valuable information, they can also help you buy the home you want at the price you want to pay.

Real estate agents have access to statistics and trend information that others don’t, so their advice is invaluable. But when it comes to submitting an offer, it’s important to keep in mind that it’s about more than just the money. In fact, there are several things you can include in the bid to help foster a successful deal.

When it comes to getting a bid accepted, first-time homebuyers often have a significant advantage over repeat buyers because their agent is instrumental in advising them to not only take the time to get pre-qualified, but to also be pre-approved for a mortgage before they even begin looking for a home. And since they don’t have to wait for another house to sell, their offer will be attractive to someone looking to sell a home.

Another thing to keep in mind is the fact that sellers are typically attracted to “clean” bids. A clean bid is one in which the buyer doesn’t ask for any contingencies, repairs or updates to be done. In the end, sellers are happiest when they can simply collect their money and move out quietly.

Buyers should also plan in advance to have funds available for a fast closing. Many agents will tell you that even if you’re not the highest bidder, your bid may still be accepted because you are willing to close right away.

Before making an offer, be sure to talk with your agent and decide what you’re willing to give up in order to have your bid accepted, as it could be the most important bid you ever place in your life.

For more information on increasing your chances of having your offer selected, contact our office today.