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The #1 Thing You Can Do Now To Position Yourself To Buy A Home This Year

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The #1 Thing You Can Do Now to Position Yourself to Buy a Home This Year

The last few weeks and months have caused a major health crisis throughout the world, leading to a pause in the U.S. economy as businesses and consumers work to slow the spread of the coronavirus. The rapid spread of the virus has been compared to prior pandemics and outbreaks not seen in many years. It also has consumers remembering the economic slowdown of 2008 that was caused by a housing crash. This economic slowdown, however, is very different from 2008.

One thing the experts are saying is that while we’ll see a swift decline in economic activity in the second quarter, we’ll begin a sharp rebound in the second half of this year. According to John Burns Consulting:

“Historical analysis showed us that pandemics are usually V-shaped (sharp recessions that recover quickly enough to provide little damage to home prices), and some very cutting-edge search engine analysis by our Information Management team showed the current slowdown is playing out similarly thus far.” 

Given this situation, if you’re thinking about buying a home this year, the best thing you can do right now is use this time to get pre-approved for a mortgage, which you can do from the comfort of your home. Pre-approval will help you better understand how much you can afford so that you can confidently do the following two things when you’re ready to buy:

1. Gain a Competitive Advantage

Today’s low inventory, like we’ve seen recently and will continue to see, means homebuyers need every advantage they can get to make a strong offer and close the deal. Being pre-approved shows the sellers you’re serious about buying a home, which is always a plus in your corner.

2. Accelerate the Homebuying Process

Pre-approval can also speed-up the homebuying process so you can move faster when you’re ready to make an offer. Being ready to put your best foot forward when the time comes may be the leg-up you need to cross the finish line first and land the home of your dreams.

Bottom Line

Pre-approval is the best thing you can do right now to be in a stronger position to buy a home when you’re ready. Connect with a local real estate professional today to get the process started.

Everything to Know About Road Access

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This article was originally published on landhub.com

by Caroline Kirby

If you’ve been searching for land for a while you’ve likely come across listings that talk about road access time and time again. But what does that actually mean and why is it so important? We’ll break it down for you.

Don’t Get Landlocked

When searching for land to buy you don’t want to get stuck in the middle, surrounded by properties owned by other parties leaving you unable to freely access your own land. In order to avoid buying landlocked property you should have an idea of the different types of road access to make the best decision based on your needs.

Generally, access falls under one of three legal categories: public access, un-deeded access, and deeded access.

Which One Do You Need?

Public access is the easiest to look at, so we’ll start there. This is property that touches a government-maintained road meaning you won’t have to cross any other person’s property to get to your land.

Un-deeded access is essentially the equivalent of being landlocked—you’ll have to cross another party’s property to access your land. To reach your land you will have to cross a road or trail owned by another person; or maybe there’s no road at all. There is likely an existing path that people have always used to gain access to the property, but there is NO written legal agreement. While this may have worked for previous owners it can complicate easily and quickly, unfortunately un-deeded access may not be the best route.

As you could probably guess, deeded access is just the opposite of un-deeded access. There is a formal, written agreement with adjoining landowners that gives you the freedom to cross the road to reach your land. Land with deeded access poses no potential issues for investors and will protect you as it’s usually recorded in the local courthouse.

Why Does It Matter?

While every state has their own laws regarding land, for the most part you want to avoid getting mixed in with un-deeded access. Doing so could result in issues with running utility lines, water or pipe lines across properties or even the lack of an easement. Investing in land with un-deeded access could actually prove to be more trouble than you’re looking for, but with that being said there are exceptions to every rule.

If you are intending to use your landlocked property for hunting or growing timber you can typically get access granted easily, either by the adjoining property owners or the state. However, contention with neighboring property owners could lead to costly legal battles and a lot of wasted time.

How you plan to use your land could make all the difference in the road access debate so make sure you have a clear idea of what you want before you start looking for properties or at least before making any offers.

When you’re ready to start shopping around you can browse our properties here.

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9 Home-Buying Costs Veterans and Active Military Should Keep in Mind

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For veterans and active military, VA loans are a great way to achieve the dream of homeownership. More than 22 million service members have used these flexible, no down payment loans since 1944.

But when people hear “no down payment,” they often don’t realize they’ll still need some cash on hand to finish the deal.

“Zero down does not mean zero to close,” points out Gwen Chubirko, broker in charge at Genesis Realty Co. in Kannapolis, NC.

The good news is that buyers don’t have to go in blindly: Your VA loan-savvy real estate agent will be your ally in helping you estimate the costs you will need throughout the process, no matter where you live.

“Our goal is to save veterans money and get them into a home that they’re happy with,” says Realtor® John Ulrich, broker associate with Illustrated Properties in Manalapan, FL.

While the amount you need to close will vary according to your location and situation, experts say you can usually expect to need about 3% of the purchase price on hand to close.

Want to break it down? Here are some home-buying costs that veterans and active military shouldn’t overlook.

1. Credit report

Buyers will often pay this fee, which runs, on average, about $30, to their lender when they first apply for a loan. Be aware that this fee is nonrefundable even if the loan doesn’t close.

2. Earnest money

The earnest money deposit is key to the home-buying process. It essentially allows you to put a “hold” on a house while you conduct the inspections and appraisal. Without earnest money, you could theoretically make offers on many homes, essentially taking them off the market until you decided which one you liked best. As the name suggests, it shows that you are earnest about moving forward on the purchase.

“The seller wants that buyer to have some money in the game when they take the house off the market,” Chubirko explains.

Depending on where you live, you can expect to put down anywhere from 1% to even 10% of the home’s purchase price as earnest money. (In some highly competitive markets, buyers are making even larger deposits in an effort to stand out.)

But don’t worry! Whatever you put down for earnest money will go toward your down payment and closing costs as soon as the deal goes through. (If the deal falters, you could lose some or all of your deposit, depending on the reason why the agreement tanks.)

3. Appraisal

All VA loans require an appraisal to ensure the property is up to acceptable standards and meets the VA’s Minimum Property Requirements. What does that mean? Well, an appraiser will calculate the square footage, confirm the property is worth the price you’re offering, and that it’s safe, structurally sound, and sanitary. Among other things, the appraiser will check for safe mechanical systems, acceptable roof life, and hazard-free basements and crawl space. VA buyers will often pay for the appraisal upfront, but they may be able to recoup the cost at closing.

4. Home inspection

While the appraisal is required, a home inspection is technically optional (except for a pest inspection, which is required in certain states and can cost roughly $50 to $150). But you never want to take a pass on the inspection, unless you’re buying a tear-down (not with a VA loan!).

The home inspection is your all-too-crucial opportunity to uncover any problems with the house before you make it official. It’s also your chance to point out repairs you can ask the seller to make on your behalf (and those repairs could cost much more than the inspection itself, which is going to run about $300 to $500.)

5. Recording fees

Recording fees must be paid out of pocket at the time of closing. This is the fee you pay the county to record your mortgage in the public record, and the cost varies from county to county.

6. Real estate transfer taxes

These costs vary by state—from none in Indiana, to a $2 flat fee in Arizona, to $2 per each $500 in value in New York. States, counties, and municipalities collect these taxes to transfer the title of the property from the previous owner to the new owner.

7. Title insurance

Title insurance protects you (and your lender) in the event there are title issues from previous owners of the home. The average cost of title insurance is around $1,000 per policy, but that amount varies widely from state to state and depends on the price of your home.

8. HOA fees

If you buy a home in an area where there is a required homeowners association, you will need to pay the application fee, which is variable depending on the local rules. Then there are your monthly dues. For a typical single-family home, HOA fees can cost homeowners around $200 to $300 per month, although they’ll be lower or much higher depending on the size of your unit and the amenities.

9. Loan origination fees

An origination fee is one of several that will make up your closing costs. The VA allows lenders to charge up to 1% of the loan amount to cover origination, processing, and underwriting costs.

The bottom line? While VA loans are a great option for any veteran hoping to buy a house, being prepared before you apply will ensure no surprises throughout the process.

Give our office a call to book an appointment with one of our knowledgeable agents today!

The Value Of Title Insurance In 2020

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Innovation is all around us. It seems like every day, new products and platforms are being developed to change the way we look at virtually every process of our lives. One area where we are seeing rapid transformation is in real estate. Over the last few years, we have reimagined how we find properties, obtain financing, get to the closing table and even move into our new property. When it comes to title insurance, all these new innovative factors will affect how a property is insured in 2020 and beyond.

What exactly is title insurance? As a lifelong title insurance professional, I have heard this question more than any other in my life. Being the third generation of my family in the title insurance business, I was born into a world of deeds, mortgages, title commitments, liens and closings. When I say I have heard this question my whole life, I truly mean my whole life.

Title insurance is a unique form of insurance that protects what in most cases is the largest monetary investment you will ever make in your lifetime: your real estate. Whether you are a homeowner, a small investor or a large commercial landlord, obtaining a title insurance policy when you purchase your property can give you peace of mind that your investment is safe and that if there is a problem, you will not be on your own to fight it.

On average across the nation, title insurance costs roughly 0.5% to 1% of the purchase price when you get a policy protecting you as well as your lender (which is customarily required by the bank). On a $300,000 purchase, that only equates to $3,000 for a policy that will protect you as long as you own the property and your lender as long as they hold the mortgage.

Title insurance is unlike other insurance products such as homeowners, medical or auto insurance. It is a one-time payment as opposed to monthly or annually. It does not protect you from future incidents, but rather from what has already happened in the past. By researching the history of the property and the people selling it to you, the title insurance company knows and corrects any issues that could possibly come up in the future based upon these past events.

If the person who sold you their property was not who they said they were, or if there was a lien on the property that was not satisfied, you are protected. If someone knocks on your door one day and says they inherited and have a claim on the property, you are protected. If a bank tries to foreclose a mortgage from before you bought the property, you are protected. When talking about properties worth tens to hundreds of thousands or even millions of dollars, having that insurance for as long as you own the property can give you a level of comfort that is priceless.

There are myriad problems that might arise when purchasing or owning real estate. Even the most seasoned title insurance professional who could have been in the business for 50 years will tell you that new issues always come up that are unprecedented. There are the legacy issues that they have seen time and again, and then there are the “new” problems that typically crop up from new technology and processes being introduced.

Mortgage fraud and cybercrime are the newest threats to the real estate industry. Hackers have determined that real estate and settlement are an easy target and have moved into the space at an alarming rate. In the last year, remote online notarization and e-closings have gained traction across the country and introduced new sets of problems for the industry, such as proof of identity and security. With a move recently toward automation and machine learning, you gain efficiency, but lose the security of human oversight. With e-recording becoming commonplace and the possibility of recording documents on the blockchain, who does the final review of the documents, and how do they get fixed if recorded incorrectly?

With the advent of new technology and an ever-changing landscape of issues that could arise, title insurance is more of a necessity than ever before. The title industry uses its vast resources to pinpoint the issues and find ways to cure them. A title insurance professional spends countless hours staying on top of the trends and current environment of issues. If any issue comes back to haunt you,  a national underwriter will have your back. They will defend you in a court of law or make sure you are made whole. No matter how the industry morphs over time, title insurance will make sure you are protected.

That, to me, is worth its weight in gold.

The Right 20 Questions for Land Buyers

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Buying Land

What are the right questions for a buyer to ask when considering purchasing a piece of rural land for sale? It all depends on the objectives the buyer has in mind when making their purchase.

A recent article on LANDTHINK entitled, “Top 20 Questions for Land Buyers” garnered a lot of attention and created quite a bit of controversy among LANDTHINK readers. I read many of the comments, and started thinking about what my list of questions would look like as I perform due diligence for myself or my clients when considering a property. That list would need to be tweaked a little depending on the objective for the purchase. For example, a person considering developing a tract into a subdivision on a river would have some significantly different questions to answer than a person merely buying a rural retreat for their family. So the following list would be my jumping off point for most buyers of rural tracts:

  1. How is the property accessed? (Road frontage, deeded easement, etc..)
  2. Are there any water features on the property? (rivers, creek, lake, springs)
  3. Are utilities available to the property?
  4. What is the timber like? (stand types, age, planted or natural)
  5. Has the property been surveyed? (Are boundaries marked?)
  6. Who are the neighbors surrounding the tract?
  7. Can I get a clear title to the property with title insurance?
  8. Do the timber, mineral and water rights convey with the sale?
  9. Are there any easements on the property? (adjoining owners, conservation, utility)
  10. Are there any known environmental concerns or latent defects with the property?
  11. How is this property zoned? (agricultural, residential, commercial?)
  12. What are the annual property taxes?
  13. Have the owners received notice from any governmental agency about possible assessments or actions in the near future that would affect this property?
  14. Will the property be conveyed subject to covenant and restrictions? (If so, what are they?)
  15. How does the land lay? (slopes, bottomland, elevation change, etc…)
  16. Are there internal roads and trails?
  17. Do all of the improvements to the property convey with the sale? (gates and fences, shooting houses, out buildings, etc…)
  18. Does the land drain well or does it stay wet for much of the year?
  19. If I had to sell this property again in a year, is it desirable to other potential buyers?
  20. Can I pee off my porch in privacy?

Buyers that are considering purchasing land for growing crops would also be concerned about things such as:

  1. What is the corn grain yield per acre?
  2. Is it possible to irrigate with a center pivot?
  3. Is an irrigation permit available from the Army Corps of Engineers?
  4. What is the soil profile of the property?
  5. Where are the nearest grain processors?

An investor purchasing timberland for their portfolio would ask questions like:

  1. What is the site index of the land?
  2. Is any of the timber merchantable now?
  3. Is more than 70% of the property sloped suitably for growing and harvesting timber?
  4. Where are the nearest wood outlets and mills?

The list could go on indefinitely for developers, hunters, farmers, investors, and survivalists. The point I am trying to make is that you need to know what your objectives for owning a rural property are before you can even know the right set of questions to ask. This is one reason a buyer should engage the help of a competent agent when purchasing a rural property. Having someone working for you that knows the right questions to ask can save you thousands of dollars and make your transaction much safer and pain-free.

Looking to buy or sell land? Our agents are known for giving comprehensive and detailed service along with always putting the clients first. Contact us for any questions, we are here for you!

Three Things on Unrestricted Land

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These 3 Things to Know about Unrestricted Land

Rolling Hills

In a recent article on Land.com by Laura Mueller she details things one might need to keep in consideration when buying unrestricted land.  First and foremost “unrestricted” does not necessarily mean “unrestricted” the state or county may have certain criteria the soil or terrain of the land may need to meet in order to build certain structures on or to run certain types of businesses on – for instance in the county I live in of Erath in Texas there are quite a few dairies, this does not mean that you can just buy 100 acres and put a dairy on it.  There are certain factors the state and county look at when providing a license of a dairy, one such factor is water runoff and how the water may be processed into the water table.

Another thing you may want to consider is that your neighbors may know that you can do alot of different things on your land but you may want to consider their feeling about things before building something.  No one like a bad neighbor that does not consider the others around them.

These are only two things but if you want to check out what Laura Mueller suggest check out her article 3 Things You Need to Know About Buying Unrestricted Land

If you are wanting to see what is available in the area for Farm, Land, and Ranch properties CLICK HERE or if you want to learn the difference about a Farm and Ranch check out this article Farm or Ranch

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