N.B.Taylor & Co., Inc. Realtors



Posted by N.B.Taylor & Co., Inc. Realtors on 6/24/2019

Have you heard the term ďearnest moneyĒ but really arenít sure what it means? Once you have found the perfect home and are all set to make an offer, thereís one more step that you need to take. Thatís to make a deposit on the home you want to buy. This is known as an ďearnest money deposit.Ē  


The Purpose Of The Deposit


The deposit shows the seller that youíre serious about buying the home. Itís a measure that allows the seller to have some faith in you as a buyer that youíre truly moving forward with your decision; youíre ready as a buyer to make the financial commitment. This deposit allows the deal to begin on a solid basis without much question. 


Is The Deposit Required Legally To Buy A Home?


From a sellerís perspective, a deposit keeps a buyer from changing their mind. If there is a significant amount of money involved, the seller sees the deposit as a way to keep the buyer locked in. This makes it easier for sellers to accept an offer. 


How Much Is Expected For An Earnest Money Deposit?


These deposits donít quite have a standard amount. The general rule is that they range from 1% of the home price up to 5%. The more expensive of a home thatís being purchased, the larger the earnest money deposit should be. In some cases, the seller may even ask for a certain amount of a deposit to ensure that buyers are serious. How much money you pay at once is often negotiable. You may be able to pay part of the money at one time and the other part at a later date.


New Construction Can Require Large Deposits


New construction homes can require large earnest money deposits- up to half of the purchase price of the home. This is because the construction costs need to be paid upfront and the bank wants proof that the units being constructed with loan money are being sold to buyers who can pay for the home. 


New construction homes are often customized as well. It would be detrimental to a developer to make special changes to a home only for a buyer to walk away. 


Getting The Deposit Refunded


As with everything in real estate, youíll have a contract. If you donít follow the terms of the contract, you risk losing your earnest money deposit. Two main reasons for buyers to walk away are a flopped home inspection or financing that falls through. Read your contracts carefully. Sellers sometimes state that deposits are nonrefundable after a certain number of days. 


You need to be sure that you are covered as a buyer in the purchase and sales agreement. If you back out of a home purchase without good reason like a contingency included in the agreement) you could be out of luck when it comes to getting your deposit back.    






Tags: Buying a home   finances  
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Posted by N.B.Taylor & Co., Inc. Realtors on 6/17/2019

If you intend to find your dream house, it helps to establish a homebuying strategy. That way, you can enter the real estate market with a plan in place to accomplish your desired goals.

Now, let's take a look at three tips to help you craft an effective homebuying strategy.

1. Create Homebuying Criteria

If you know where you want to reside, you can narrow your house search. As a result, you may be better equipped than other buyers to accelerate the homebuying journey.

Creating a list of home must-haves and wants usually is a great starting point for homebuyers. This list typically forces homebuyers to think about what separates an ordinary residence from a dream house. And once a homebuyer crafts a list of home must-haves and wants, this buyer can search for residences that meet his or her expectations.

2. Budget for a Home

In most instances, homebuyers lack the necessary financing to buy a house. Luckily, lenders are available that can help a homebuyer assess mortgage options and get pre-approved for home financing.

Budgeting for a home is a major part of the homebuying process. Because if you know exactly how much you can spend on a residence, you could speed up your house search.

To get pre-approved for a mortgage, you should meet with a variety of banks and credit unions. Then, when you find the right mortgage, you can enter the real estate market with a budget at your disposal.

3. Hire a Real Estate Agent

There is no requirement to hire a real estate agent before you pursue your dream house. Yet the advantages of hiring a real estate agent can be significant, and perhaps it is easy to understand why.

For homebuyers, a real estate agent takes the guesswork out of finding the right house at the right price. A real estate agent also collaborates with a homebuyer and will go above and beyond the call of duty to ensure a buyer can achieve the optimal results.

If you want to purchase a house as quickly as possible, it may be a good idea to hire a real estate agent sooner rather than later. Oftentimes, a real estate agent will meet with you and learn about your homebuying aspirations. He or she next will work with you to craft a homebuying strategy and launch a successful house search.

Furthermore, a real estate agent is a housing market expert who will help you overcome any potential homebuying hurdles. A real estate agent understands the challenges associated with purchasing a house and will help you identify and address such issues before they escalate. And if you ever have concerns or questions as you search for your ideal residence, a real estate agent will respond to them.

Enter the real estate market with a plan in hand Ė take advantage of the aforementioned tips, and you can create an effective strategy to streamline your search for your dream residence.




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Posted by N.B.Taylor & Co., Inc. Realtors on 6/3/2019

When buying a house, especially your first home, it's all too easy to make impulsive decisions and fail to "see the forest for the trees."

Although it's impossible to ignore your emotional reactions to a house for sale, it's vital to look at the big picture and make sure there are no red flags being ignored or glossed over.

For example, if the foundation of the house looks unstable or the surrounding neighborhood is showing signs of deterioration, it's ultimately not going to matter how much you love the layout of the kitchen or the convenience of a first floor laundry room. Major problems can overshadow the desirable features of a home and have long-term implications on your finances (and sanity).

Even though the future marketability of a house may be the last thing on your mind when you're searching for your next home, it's a factor worth giving some serious thought to. When that aspect of home ownership is overlooked, it could result in headaches and possible financial loss down the road. While real estate generally has a tendency to appreciate in value over time, there are exceptions.

The good news is that many potential problems can be prevented by combining common sense with the advice of qualified professionals, such as an experienced, certified property inspector. If you're wondering what's covered in a typical home inspection, the American Society of Home Inspectors offers this overview: "The standard home inspectorís report will cover the condition of the homeís heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components."

So while inspectors can't look behind every wall or accurately predict the remaining lifespan of an existing HVAC system, they can provide you with a lot of valuable tips, recommendations, and insights into the condition of a house for sale. Working with a top-notch real estate (buyer's) agent will also help you avoid many of the potential pitfalls of buying a home.

While nobody wants to move into a "money pit," the likelihood of finding a home that's absolutely perfect and doesn't need any repairs, updates, or improvements is extremely low. Home buyers who are too focused on perfection may eventually realize that their standards are unattainable. A successful search for a new home hinges on the ability to distinguish between a minor cosmetic problem, such as an unappealing paint color, and a major problem, like a basement that floods regularly or a roof that's been compromised by storms, falling branches, or long-term neglect.

Although home buyers have differing expectations when it comes to repairs, remodeling, decorating, and renovations, one thing's for sure: Everyone wants to add their own personal touches to a new home and make it feel and look like their own!





Posted by N.B.Taylor & Co., Inc. Realtors on 5/13/2019

Youíve been binging on HGTV and DIY network every weekend while you save up your money and youíre ready to take the plunge. Your agent tours you through several potentials and there it is Ö the perfect corner lot, the mediocre house with the awkward layout, chopped up floor plan, aging kitchen, and dated bathrooms. Itís just waiting to reveal shiplap behind the cracked plaster, original hardwood floors under the stained and dusty carpet, and other treasures you can only dream about until their uncovered.

You make the deal Ö now itís all yours. Where do you go from here?

Find the right professional
Ideally, a contractor with renovation experience toured the property with you, casting a professional eye over potential problems and exciting possibilities before you made the deal. If not, engage one now. Renovations require specific knowledge of structural issues like which walls to safely remove giving you that open-concept floor plan and which might be load-bearing. Experienced pros know when to call in an engineer to determine whether to expose the beams or if the wiring needs pulling. 

Make a plan
As with any project, make a basic plan before you start. Unlike new-builds, however, your plan might be more general until youíve removed walls and studs, discarded old cabinets and fixtures, and revealed the location of existing drainpipes, wiring, support structures, and other hidden gems. With everything visible determined, itís time for demolition. Just know that with a renovation, once demolition starts, plans can change. A supporting beam here, an unmovable drain there, a hidden chimney under that plaster Ö could derail your perfect original plans. When that happens, a pro can help you figure out what do.

Donít underestimate time
Watching a 57-minute renovation on television might give you an unrealistic expectation of how long it might be until your home is ready. After all, you donít have a trove of assistants ordering cabinets, changing out flooring samples and visiting showrooms to cull through items for you. Choice fatigue (the inability to choose between too many choices) can stymy a project for a novice.

Normal delays, hidden issues
Youíve planned, then modified the plans after the demo, selected, deselected, then re-selected the cabinets, flooring, and fixtures. Now itís time to get approvals and permits. Moving a project through the approval process in your municipality could be smooth sailing or rife with delays. Your professional contractor should help you navigate this process, but waiting for a permit can add days, or weeks to a project.

In addition to the normal delays, your demolition may uncover other issues that require remediation. These include lead, mold, asbestos, termite damage, shifting foundations, broken pipes, and myriad other possibilities. Bringing wiring up to code and changing out electrical panels consumes precious time and adds to the delays.

Before taking on a fixer-upper, seek the advice of a real estate professional with renovation experience to help you make a plan, and plan for contingencies.





Posted by N.B.Taylor & Co., Inc. Realtors on 5/6/2019

Once you discover your dream house, you probably want to do everything possible to acquire this residence. However, it is important to remain calm, cool and collected as you navigate the homebuying journey. Because if you act too hastily, you risk overspending to purchase your ideal residence.

Let's face it Ė the temptation to submit an offer to purchase your dream home that may require you to break your homebuying budget can be overwhelming. Lucky for you, we're here to help you consider your offer to purchase closely and ensure you provide a competitive homebuying proposal that won't force you to exceed your budget.

Now, let's take a look at three tips to help you craft a competitive offer to purchase your dream house.

1. Analyze the Housing Market

The real estate market may have major ramifications on the offer you submit to acquire your dream residence, and perhaps it is easy to understand why.

For example, if you are operating in a buyer's market, there likely is an abundance of sellers and a limited number of buyers. If you find your dream house in a buyer's market, you may be able to acquire this residence by submitting an offer to purchase at or near a seller's initial home asking price.

On the other hand, navigating a seller's market may prove to be tricky. In a seller's market, there is a shortage of high-quality houses available and an abundance of buyers. Therefore, if you want to purchase your dream residence in a seller's market, you may need to submit an offer to purchase at or above a seller's initial home asking price.

Consider the housing market closely as you prepare an offer to purchase. If you can differentiate a buyer's market from a seller's one, you can submit an offer to purchase your dream house that falls in line with the current housing market's conditions.

2. Weigh a Home's Strengths and Weaknesses

When it comes to putting together a competitive offer to purchase, it helps to consider a house's strengths and weaknesses. That way, you can account for the costs of any potential home repairs or improvements in your homebuying proposal.

You should consider a home's location as well. For instance, a home in a remote town may prove to be more affordable than a comparable house near a big city. And when you craft an offer to purchase, you should always account for a house's location.

3. Consult with a Real Estate Agent

A real estate agent can help you submit a competitive offer to purchase at any time. This housing market expert is happy to provide a recommendation about how much to offer to acquire your dream home. And if you have homebuying concerns or questions, a real estate agent is ready to respond to them at your convenience.

Want to buy your dream residence? Use the aforementioned tips, and you can avoid the risk of spending too much to acquire your ideal house.




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