Closing on a House: Settlement Tips for Home Sellers

SOURCE: Realtor.com
Before closing on a house, you need to get to the settlement table. You’re near the end of the process of selling your home, but don’t breathe a sigh of relief just yet. While it’s certainly true that you can let go of the anxiety of needing to show your home at any moment, you still need to cooperate with your buyer, the buyer’s agent, and the commitments made in the contract.

As a seller, here’s what you need to know about the settlement process.

What contingencies impact sellers before closing on a house

While the burden is on the buyer to finalize financing for the home purchase and to obtain homeowners insurance, some contract contingencies will impact you, too, especially if you’re living in the home.

Before closing on a house, most transactions include a home inspection, so you’ll need to make your home available to the inspector and then negotiate with the buyers about anything the inspection turns up according to the terms of your contract.

Aside from the home inspection, some contracts (and some lenders) call for a termite inspection and a radon gas inspection. In those cases, you or your listing agent or the buyer’s agent will need to make the home available for inspection.

Another important step prior to closing on a house is the appraisal. If the appraisal comes in higher than the sales price, then the buyers can relax in the satisfaction they’ve purchased a home for less than its market value. Once the contract has been signed, a seller can’t renegotiate the price higher.

But if the appraisal comes in lower than the sales price, then the buyer’s lender will limit the loan amount to that lower value. The buyer may have to come up with additional cash to cover the financing gap or may ask you to renegotiate the contract. Your agent can advise you about the best way to handle this situation, but you and the buyer are also bound by the contract terms.

Before you go to settlement, you should go over the contract with your agent and ensure you’re ready to fulfill any obligations you’ve made in terms of what items will be conveyed to the buyer as well as any repairs or improvements you promised to make.

Negotiating a settlement date

Buyers and sellers typically negotiate a settlement date that is mutually agreeable. If you have sold your home and are not yet ready to move into your next residence, you can sometimes negotiate a “rent-back” with the buyer that allows you to stay in the home after the settlement by paying rent to the buyer.

In general, lenders restrict rent-back to a maximum of 60 days. Check with your buyer and your agent if you need to rent back for longer than two months.

Alternatively, some sellers allow the buyers to move in before settlement. In either case, it’s crucial to have a written agreement about who is responsible if something happens to the house or its contents during the transition period.

Settlement services

The decision about who provides settlement (also known as closing or escrow) services varies from one market to another. In many places, the buyer chooses the settlement company, but in others the seller chooses. When closing on a house, the buyer will provide funds to buy your home and the settlement agent will review the sales agreement to determine what payments you’ll receive. The title to the property is transferred to the buyers and arrangements are made to record that title transfer with the appropriate local records office.

At a typical closing, adjustments are made to the final amounts owed by the buyer and you as the seller. For example, if you’ve been paying your property taxes through an escrow account, you may be credited extra for prepaid taxes or you may receive less money at settlement if the property taxes haven’t been paid properly.

Once the settlement papers are signed and the house keys are transferred, you’re free to move onto your next home.

SOURCE: Realtor.com

Why Buying a Home Makes More Sense Than Renting Today

SOURCE: Keeping Current Matters
Wondering if you should continue renting or if you should buy a home this year? If so, consider this. Rental affordability is still a challenge and has been for years. That’s because, historically, rents trend up over time. Data from the Census shows rents have been climbing pretty steadily since 1988. 

And, data from the latest rental report from Realtor.com shows rents continue to grow today, even though it’s at a slower pace than we saw at the height of the pandemic:

“In March 2023, the U.S. rental market experienced single-digit growth for the eighth month in a row . . . The median asking rent was $1,732, up by $15 from last month and down by $32 from the peak but is still $354 (25.7%) higher than the same time in 2019 (pre-pandemic).”

With rents much higher now than they were in more normal, pre-pandemic years, owning your home may be a better option, especially if the long-term trend of rents increasing each year continues. In contrast, homeowners with a fixed-rate mortgage can lock in a monthly mortgage payment for the duration of their loan (typically 15-30 years). 

Owning a Home Could Be More Affordable if You Need More Space

The graph below uses national data on the median rental payment from Realtor.com and median mortgage payment from the National Association of Realtors (NAR) to compare the two options. As the graph shows, depending on how much space you need, it’s typically more affordable to own than to rent if you need two or more bedrooms:

So, if you’re looking to live somewhere where you have two or more bedrooms to accommodate your household, give you more breathing room to spread out your belongings, or dedicate the extra space to practice your hobbies, it might make sense to consider homeownership.

Homeownership Allows You To Start Building Equity

In addition to shielding you from rising rents and being more affordable when you need more space, owning your home also allows you to start building your own equity, which in turn grows your net worth. 

And, as home values typically rise over time and you pay off your mortgage, you build equity. That equity can set you up for success later on because you can use it to help fuel a move to an even bigger space down the line. That’s why, according to Zonda, the top reason millennial homeowners bought their home over the past year was to build their own equity instead of someone else’s.

Bottom Line

If you’re trying to decide whether to buy a home or continue renting, give me a call so we can explore your options. With rents rising, it may make more sense to pursue your dream of homeownership.

SOURCE: Keeping Current Matters

5 Ways Buying a New House Can Be Better for the Environment (and Your Budget) Than Buying an Old One

SOURCE: Realtor
While buying something brand-new is rarely the eco-conscious choice, it can be if you’re buying a house—now more than ever.

Existing homes often lack many of the most cutting-edge, energy-saving features available today. And while these environmentally friendly upgrades tend to raise the cost of a new house, a growing number of homebuyers are happy to pay. They see these features as investments that can save them money on energy bills for years (or even decades) to come.

This growing demand for energy-smart homes has allowed more builders to embrace earth-friendly innovations from the ground up, rather than see them as “niche” extras that might not net a profit at sale—or make sense to their bottom lines.

“For years, businesses struggled with a gap between what consumers said they valued with environmentally conscious products and their actual purchasing behavior,” says Dan Bridleman, senior vice president of sustainability for KB Home. “But now, instead of seeing sustainable homebuilding as a barrier or cost to overcome, it’s a lever to maintain affordability. Customers don’t have to choose between a green home and their dream home.”

Whether you’re concerned about climate change or your bank account or both, it pays to know what options are out there when shopping for a new-construction home. Keep these items on your new-construction wish list, for a double-dose of benefits—for yourself and the planet.

Zero Energy Ready Homes

America’s nearly 130 million residential and commercial buildings use 74% of its electricity, according to the U.S. Department of Energy (DOE). And that enormous expenditure is responsible for a staggering 35% of all U.S. carbon emissions—either those released directly from the homes and offices being heated with fossil fuels or indirectly from the power plants that generate electricity to power these buildings.

To alleviate this climate burden, builders are being encouraged to construct Zero Energy Ready Homes (ZERH), which are structures built to high-efficiency energy standards that they use 40% to 50% less energy than usual. And if a renewable energy source (such as solar panels) is added, these homes graduate to becoming a fully designated Zero Energy Home (ZEH), which could whittle monthly energy bills to $0.

Currently, there are more than 12,000 Zero Energy-certified homes across the country. But that number is sure to rise—in January 2023, the DOE announced new tax incentives to encourage builders to make ZERH their main offering. On a policy level, energy codes for builders have gotten stricter in recent years, leading many construction companies to adopt ZERH requirements as their standard construction practices.

What this all boils down to for homebuyers is that many builders are now offering these energy-efficient homes at competitive prices. Make sure to ask any builders you are considering if they are ZERH-certified, or check out this DOE map for Zero Energy-compliant builders in your area.

Microgrid communities

Taking zero-energy homes one step further, some builders have expanded that concept to create entire interconnected communities of homes that all contribute to—and pull from—their own local microgrids. This means that although these communities are hooked up to the traditional state-run power plants (also known as macrogrids), they also possess their own independent energy sources (typically solar panels) on community premises.

The first, fully functional microgrid communities in California were recently launched by KB Home in Durango and Oak Shade, near Menifee, CA. In these communities, every home is equipped with its own solar panels and battery and is connected to other homes in the development through a shared community battery.

“With our microgrid communities, we expect to significantly decrease energy usage by 40%, in comparison to the national average,” says Jacob Atalla, vice president of sustainability for KB Home, which has partnered with the Department of Energy to help future microgrid builders. “The exciting thing about microgrids is that they can operate independently when larger systems might be overloaded, unstable, or offline, providing homeowners with power resiliency.”

Community microgrid systems free entire neighborhoods from the constraints of being tied to traditional energy sources in the area. So if the power goes out on a grand scale, the community will be unaffected, because it’s generating its own energy.

3D-printed homes

3D printers are increasingly used in homebuilding. And this is good for the environment, since building a traditional 1,200-square-foot house produces around 2.1 tons of construction waste. A 3D-printed home eliminates nearly 99% of that, since it only “prints” what it needs. Mighty Buildings, which has printed more than 70 homes in California, has even set a goal of building homes that, by 2028, make a negative carbon impact.

While 3D-printed homes have been popping up across the country, the first entirely 3D-printed community is currently under construction in Georgetown, TX, just north of Austin. The Genesis Collection at Wolf Ranch by Lennar Homes and Icon will include 100 3D-printed homes, all built with a robotic arm. It’s a method that saves substantially on labor and construction costs.

Genesis Collection homes will range from 1,574 to 2,112 square feet and sell for the mid-$400,000s—comparable to the area’s traditionally built homes. The company broke ground in November 2022 and is taking reservations from interested buyers, for 2023 move-ins.

This accelerated speed is possible since 3D-printed homes can be as much as two times faster to build than regular construction projects. For example, developer Mighty Buildings can print its two-bedroom, two-bath, 1,171-square-foot Mighty House Quatro in three months, with a three-person crew.

Another environmentally friendly component of 3D homes is that they use fewer materials. For instance, a typical wall might have wood, drywall, screws, tape, insulation, metal plates, and more. But a 3D-printed wall is built from one material alone. Mighty Buildings uses a patented, light-stone material made of 60% sustainably sourced and recycled materials.

Plus, because the materials that go into 3D-printed homes are highly durable, these homes are set up to withstand the weather effects of climate change, including extreme hot and cold temperatures and inclement weather. They’re also more earthquake- and hurricane-resistant.

Partnerships with energy-saving suppliers

While builders might have offered energy-saving appliances as an optional upgrade in the past, now it’s often par for the course.

The Environmental Protection Agency (EPA) has several homebuilder programs, including ENERGY STAR, which establishes energy-efficiency standards; WaterSense, which outlines water-efficiency standards; and Indoor airPLUS, which focuses on air quality. Bridleman encourages homebuyers to ask builders if they incorporate appliances and systems with these demarcations in their homes.

Partnerships take this one step further. For instance, KB Home partners with Moen, which has vowed to save 1 trillion gallons of water by 2030 through their faucets and fixtures. To date, KB Homes has installed more than 900,000 WaterSense-labeled fixtures in its homes.

Builders are also increasingly using paint, cabinets, and carpet that emit low Volatile Organic Compounds or VOCs,  providing healthier indoor air quality. Some paints, such as the SuperPaint line by Sherwin Williams, boast an “air-purifying technology” that transforms any circulating VOCs in the nearby air into harmless, inert gases.

Smart-home tech that focuses on saving

Advanced, smart-home technologies are eco-conscious, since they automate energy savings by, say, turning off the lights, adjusting room temperatures, or managing sprinkler systems without you needing to remember on your own.

Landsea Homes has a partnership with Apple to build “High Performance Homes” that include an Apple HomePod Mini, so homeowners can set up automated commands through the Apple Home app. This means they can preprogram the front doors to lock and the window shades to come down at certain times, thereby saving energy—and sanity— because you’ll never again have to wonder, “Did I turn the light off?”

While many smart-home components can be added to existing homes, having them incorporated into a new build allows for heightened seamlessness and functionality—not just with lights but with electrical components, HVAC, water-heating, and irrigation systems, too. For instance, KB Home microgrid community houses are all equipped with smart water heaters that can alert homeowners to leaks.

“While sustainability is not new, we are really just at the precipice of seeing sustainable innovation in interior design,” says Gena Kirk, vice president of corporate studio design for KB Home. “We expect innovations to continue to evolve and sustainable design to become affordable for all.”

SOURCE: Realtor

4 Key Tips for Selling Your House This Spring

SOURCE: Keeping Current Matters
Spring has arrived, and that means more and more people are getting their homes ready to sell. But with recent shifts in real estate, this year’s spring housing market will be different from the frenzy of the past several years. To sell your house quickly, without hassles, and for the most money, be sure to follow these four simple tips:

1. Make Sure You Give Buyers Access

One of the biggest mistakes you can make as a seller is limiting the days and times when buyers have access to view your home. In any market, if you want to maximize the sale of your house, you can’t limit potential buyers’ access to view it. If it’s not accessible, it could cost you by sitting on the market longer and ultimately selling for a lower price.

2. Make Your Home Look as Good as Possible on the Inside

For anything to sell, especially your home, it must look inviting. Your real estate agent can give you expert advice on ideal staging for your home. Even updating a room with fresh paint, steam cleaning carpets, or removing clutter from the garage can make a big impact.

3. First Impressions Matter

The old saying “you never get a second chance to make a first impression” matters when selling your house. Often, the first impression a buyer gets is what they see as they walk up to the front door. Putting in the work in on the exterior of your home is just as important as what you stage inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact with potential buyers.

4. Price It Right

This is probably the most important aspect of selling your home in today’s real estate market. If a house is priced competitively, it’s going to sell. Period. To do this, you have to know what’s happening with home prices in your area and understand the factors that are affecting the market right now. That’s why it’s best to work with a trusted real estate professional who can ensure you list your house at the right price.

Bottom Line

Everyone selling their home wants three things: to sell it for the most money they can, to do it in a certain amount of time, and to do all of that with the fewest hassles. To accomplish these goals, connect with me to understand the steps you need to take to sell your home this spring. 

SOURCE: Keeping Current Matters

Summer Home-Selling Maintenance Checklist: 15 Expert Tips

SOURCE: Homelight
Yikes… it was a rough winter, and maybe the spring-cleaning memo got lost in your inbox. Now it’s time to put your home on the market, but if you leave it unmaintained and unkempt, you’ll never impress potential buyers. You need a summer home-selling maintenance checklist.

So, where should you start?

We interviewed some of the top real estate agents about what buyers look for when they’re shopping for homes and found out everything we could about how to whip your home back into shape this summer.

Your 15-point summer home-selling maintenance checklist

We asked top agents what sellers should do to prepare their house for resale and studied market research to conclude what projects will provide the highest return on investment if you’re planning to sell your home this summer or fall.

Consistently, the top real estate agents recommended the following 15 simple home maintenance tasks:

 Pressure wash the outside of the home.
 Landscape, landscape, landscape!
 Put on a fresh coat of paint around the outside of the house.
 Upgrade or refresh siding and shutters.
 Trim anything that’s overgrown.
 Kill the bugs.
 Clean and fix up your gutters.
 Fix up your fence.
 Keep your trees in check.
 Stage your outdoor furniture.
 Add beautiful plants and flowers.
 Paint the walls inside your house a warm neutral color.
 Bring in the natural light.
 Replace any tarnished hardware (or polish it.)
 Walk around and do some quick touch up home improvements.

Let’s dig into each item on your summer home maintenance checklist:

1. Pressure wash the outside of the home.

The first thing buyers notice is the exterior of a house. In a recent HomeLight survey of more than 1,000 top real estate agents, 39% of agents say a lack of curb appeal is a pitfall for overconfident sellers in today’s shifting housing market. A murky walkway could send buyers running for the hills before they even get to the front door.

“If the driveway is stained or the decks in the backyard, pressure washing is not that expensive and it’ll give it a really fresh look,” says Carol Wolfe, a top-performing real estate agent in Los Angeles with nearly 50 years of experience. Rent a pressure washer at your local home improvement store to make walkways, patios, decks, and driveways look brand new.

2. Landscape, landscape, landscape!

Proper landscaping is a major factor in considering a home’s curb appeal. It’s one of the first things potential buyers see and could add 5 to 12% to your home’s overall value, according to studies conducted by Better Homes and Gardens. An earlier HomeLight top agent survey found that spending under $300 on lawn care services can yield a 352% ROI.

While it’s important to create beautiful landscaping to complement the home, it’s also crucial not to overdo it.

“I tell sellers the same thing every time I meet with them. We’re trying to go for clean, neutral, and fresh,” says Brendan Bartic, a Denver agent who works with nearly 70% more single-family homes than the average agent in his market. He adds, “What we’re trying to do is make a clear, neutral landscape so the home will appeal to anybody from the outside and make them feel like they can make it what they want,” also noting that 99% of the time, he’ll have them replace the welcome mat as well.

3. Put a fresh coat of paint on the outside of the house.

Chipped paint on the exterior of the home is an instant red flag for buyers, going back to the above-mentioned importance of curb appeal.

“When they walk through the front door, what can never have entered their mind is, O-M-G. I wonder what else is wrong with this house,” says Peter G. Clark, a Certified Luxury Homes Marketing Specialist in Portland.

Hiring a professional to repaint your home could cost anywhere from $1,811 to $13,000, depending on the number of stories and square footage. Other variables like the type of siding and quality of paint can affect the cost as well. According to HomeAdvisor, the current average cost is $3,087 to paint the exterior of a 1,500-square-foot home. Some things you can control, though, are the type and color of the paint. Be sure to choose a color that will sell your home.

Also, consider paints that will provide durability and resistance in order to maintain the exterior quality, without exceeding your budget.

4. Upgrade or refresh siding and shutters.

The exterior of your home is the first thing buyers see. Some buyers will make their decision immediately based on the curb appeal, before even stepping foot inside. Replace any weathering siding or brighten up shutters to get buyers through the door.

According to a 2022 Remodeling Impact Report by the National Association of Realtors, upgrading siding and adding new shutters to your home can recoup up to 82% of the cost at resale.

5. Trim anything that’s overgrown.

Nothing says, “Stay away from me,” like out of control vines and weeds. Cut down the overgrown jungle in the untouched area of your yard to show exactly how much outdoor space you’re selling. With a few basic yard tools, you can make your yard look fresh from the grass to the trees. Take on the challenge yourself, or for yards that are too out of control, consult a professional.

6. Kill the bugs.

Buyers look for homes that have yards they’ll want to spend time in. If they step into a yard that is swarming with bugs, they’ll lose interest in the home. Even if you are not selling your house right now, vector-borne illnesses can be carried by mosquitoes, ticks, and fleas, according to the Center for Disease Control and Prevention. So, stop those blood-sucking bugs from being money-suckers as well!

To maintain a yard that will sell in warm, moist climates, control the growth of bugs that peak in population during summer months. A quick spritz of outdoor bug spray around your yard will keep buyers from running for cover.

7. Clean up and fix your gutters.

Gutters can trap dirt, leaves, twigs, and water during a storm or heavy rain. There may even be some critters hanging out in your gutters—and those definitely don’t come with the house! Get a ladder and carefully clean out your gutters to avoid issues with drainage in the future. You’ll need a sturdy ladder, outdoor garden gloves, and a hose.

Carefully climb up to the gutters and remove the cover.
Use a tool or your hands to scoop out debris.
Flush the gutter with water and check for any leaks.
Locate the drainage spouts to make sure the gutter isn’t clogged.
Remove clogs by sticking the hose up the spout until the clog loosens.
Make sure all gutters are attached tightly.

If you notice a leak in your gutters, contact a professional.

8. Fix up your fence.

Buyers with kids and pets don’t want to take on the extra expenses of adding or replacing a fence, so a beat up fence could turn them away. Check your fence for any holes, potential rotting, or insect damage. Fix any loose screws or nails in need of replacement. A coat of stain or paint will make a fence look top-of-the-line.

9. Keep your trees in check.

With a backyard full of trees, it’s important to consider removing overgrown branches or cutting down trees completely. Take a good look at each tree. If you notice mushrooms or any other fungi growing on the trunk, it could be a sign that the tree is decaying. If branches fall off a tree in a storm, it could mean a bigger problem as well. Get in touch with a local arborist to have your trees inspected if you suspect a problem. Remember these things when speaking to a tree expert:

• Get an estimate first.

• Always get a second opinion, especially if their price is out of your budget.

• Ask what the price would be during the offseason. Most people hire tree professionals between the months of May and October, so if you aren’t planning on listing your house until next spring, consider saving money by taking care of trees in the winter instead.

• Ask each tree expert if they are certified. Don’t hire them if they aren’t.

• Don’t let someone “top” your tree. It’s no longer considered acceptable tree care as it damages the tree and could become dangerous in the future.

10. Stage your outdoor furniture.

According to a 2022 TurfMutt Foundation survey, 76% of Americans say a spacious yard is one of the most important parts of their home, and 72% say backyard space is at the top of their wish list if they start looking to buy a new home.

“Demand for more elaborate exterior space continues to rise and blending indoor-outdoor living to address customer preferences is critical to our success,” says Sheryl Palmer, chairman, president, and chief executive officer of Taylor Morrison, a leading national home builder and developer.

So, throw out the rusty patio chairs you’ve had since you moved in and take a quick trip to Home Depot to transform your patio or deck. Incorporate simple furniture and fun decorations to create a comfy outdoor living area that buyers love. Potted plants placed throughout will create the perfect sanctuary for friends and families to gather, showing buyers that your house is a perfect home for gatherings.

“If you don’t have pads, get colorful pads to put on the patio furniture. Clean everything off,” says Wolfe. “Sometimes, as part of staging, we’ll have the patio table set with colorful serving pieces and dishes for a summer party so people can envision enjoying themselves in the summer in their new house.”

11. Add beautiful plants and flowers.

Plants are a fun backyard element that will attract buyers with a love for nature. Add colorful, full-grown plants to create completeness that buyers will love. This is an easy task that brightens up a yard and doesn’t require a professional, according to Wolfe. “You can go to any local nursery or Home Depot or Target and buy pots. This is the time of year you’re going to find things like already planted flowers,” she says.

Here are some “can’t-kill” flowers that are sure to be lively and lovely in a garden or outdoor pots:

• Sunflowers

• Zinnias

• Marigolds

• Snapdragons (These attract butterflies!)

• Daffodils

• Geraniums

12. Paint the walls inside your house a neutral color.

Strip off the wallpaper that’s been around since your first child was born and refresh your home with a light, neutral paint. Our research of the psychological effects of color shows that, although grey is a trendy color right now, more people prefer neutral beige or white walls in potential homes.

“A can of paint goes a long way,” says top agent, Pam Zaragoza, a Silicon Valley housing expert with 22 years of experience. And most real estate agents that we speak to agree. Wolfe suggested, “Say they have wallpaper or something that’s really dated, sometimes just removing that and painting with a fresh coat of white paint could make a big difference in how a room looks.”

13. Bring in the natural light.

Every buyer loves a light and airy home. If a home feels stuffy and congested, buyers will not want to stick around. There are simple techniques for creating a brighter, more open space.

Clean windows on inside and outside
Let in natural light by replacing old blinds
Replace curtains and window treatments with light, neutral colors
Consider adding or updating ceiling fans
Eliminate unnecessary clutter
Get rid of large, bulky furniture
Take out dark furniture and décor

14. Replace any tarnished hardware (or polish it).

Swap out decade-old hardware for a simple but effective upgrade in home aesthetics. Tapping into modern design trends, matte black doorknobs throughout the house and stainless steel or brass handles in the kitchen will attract buyers with an eye for modern details.

So, pay attention to your knobs!

“The doorknob itself is the first thing people interact with. So you’ll see a lot of homes that have rusted doorknobs or it’s really hard for the key to work,” said Bartic. “Whatever the situation, those are things that you want to make sure are corrected.”

Another affordable interior hardware trend includes sleek, modern cabinet hardware pulls.

15. Walk around and do some quick touch-up home improvements.

Nothing makes a house feel old like wiggly handles and squeaky doors. With a can of WD-40 and a screwdriver, you can instantly wipe years off your home. You may be surprised at the things you’ve been living with.

“After years people just get used to that one cabinet knob that falls off,” says Bartic. “What you think is a $10 fix, buyers will think is a $500 fix and they’re going to reflect that when they go to make the offer.”

It’s time to tackle these tiny but bothersome flaws. Do a full walkthrough of your home and check for squeaky hinges, loose knobs, and burnt out bulbs.

Your home’s best shot to sell this summer

This home maintenance checklist is backed by the recommendations of some of the top real estate agents in the country, and we cover a lot of ground. If you complete all 15 items on this list, you’ll check off just about every nitpick a buyer might have as they tour your next open house, which may be more important than ever in the current market.

But at the end of the day, your house is unique and will have specific issues to tackle that an article like this can’t possibly address.

Give me a call and we can put together a customized home maintenance checklist for you to work through this summer.

SOURCE: Homelight