Home Selling Information

What’s Involved In Closing On A House And How Long Does It Typically Take?

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How Long Does The Typical Closing Take And What’s Involved?

 

For sellers, the closing process is the final, critical stage in a long and often emotional journey in selling their house. Understanding the complexities of closing and the normal timeline involved will help sellers navigate this period more easily and confidently. This article seeks to explain the procedures involved in closing from the seller’s perspective, providing insight into what to expect and how to effectively manage the process until your house is finally sold.

As a quick reminder – if you don’t want to have to wait on pins and needles waiting for the typically long and drawn out process of selling your home, give a call or contact us. We can close in just a few days, or on your timeline! Now, on with the show!

 

 

Pre-Closing Preparations

There’s actually a lot that happens when selling the traditional method using an agent with your typical home buyer.

  •    Buyer’s Have To Secure Financing

As a seller, waiting for the buyer to obtain financing can be stressful. The process begins with the buyer obtaining mortgage pre-approval, which provides an initial indication of their purchasing power. Once pre-approved, the buyer must complete their loan application, which can take some time and is subject to a variety of restrictions and lending criteria. Sellers must be patient during this process, as any delays or financing concerns may effect the closing date.

  • Home Inspections

Another essential step in the process are home inspections, which often leaves sellers waiting. The buyer will organize and carry out inspections to verify the property is in good shape. This will reveal any necessary repairs or issues that were not previously reported. Sellers must be ready to address these issues, which may include making repairs or renegotiating the sale terms. This stage can be very stressful because it may impact the ultimate sale price and timing.

  • Appraisals

Once all inspections are complete, the buyer will request an appraisal to assess the property’s market value. This is an important step for the lender to ensure that they do not lend more than the property is worth. Sellers must wait for the appraisal report, which may turn up as some unwanted surprises. Understanding the appraisal report and its ramifications is critical, because a poor assessment might result in renegotiations or even the cancellation of the sale. This waiting period might be stressful, but it is an essential part of the process to ensure a fair transaction for all parties involved.

  • Title Search

The title search is an important yet nerve-racking stage in the closing process. The title search ensures that the property’s title is free of any liens, disputes, or legal concerns that could jeopardize the sale. This entails a thorough review of public records and legal documents to ensure the seller’s right to transfer ownership. Sellers must wait for this thorough review, which may discover unanticipated difficulties such as unpaid taxes or prior liens against the property. Resolving these title difficulties is critical to moving forward with the sale, and sellers frequently find themselves in a holding pattern until any “cloud” on the title is remedied, adding to the stress of the closing process.

Closing Day Is Drawing Near

After all of the above has gone through, closing day is getting closer and you can see the light at the end of the tunnel. But Wait! There’s still more to go! More nerve racking stuff that could cause your sale to fall through – The Final Walkthrough! The final walkthrough is crucial for the buyer to ensure that the property is in the agreed-upon condition prior to closing. This walkthrough provides an opportunity for the seller to confirm that all contractual duties have been satisfied, such as making agreed-upon repairs and preserving the property’s condition. Sellers must prepare for this walkthrough, realizing that it is the buyer’s final opportunity to identify any faults before to the official transfer of ownership.

  • Seller’s Prep For Final Walkthrough

As the seller, preparing for the final walkthrough entails making certain that all repairs and maintenance activities have been completed to the buyer’s satisfaction. This involves ensuring that all appliances are operational, fixtures stay in place, and the property is clean and clear of debris. Furthermore, all personal stuff should be removed unless otherwise agreed upon. Making adequate preparations can help avoid delays or issues during the tour.

  • Last Minute Issues

Despite careful planning, last-minute problems may develop during the final walkthrough. These might range from small cosmetic issues to more serious issues. To prevent prolonging the closing process, sellers must be prepared to handle these difficulties swiftly. This could include making small improvements or negotiating changes to the sale terms. Being proactive and responsive during this stage is critical to ensuring a smooth and timely closing, so decreasing the stress and uncertainty associated with the final stages of the home-selling process.

 

Closing Day

Phew! You’ve finally arrived, but not out of the woods yet! Everybody has to have all of their “ducks in a row” and have a meeting of the minds at the closing table. Hopefully everyone is prepared and there won’t be any delays.

  • Closing Date

By now the date should have been set a while ago as the closing date is a critical step for sellers that must be carefully planned and coordinated. The chosen date is influenced by a number of circumstances, including the buyer’s finance preparedness, the completion of inspections and appraisals, and any title concerns. Sellers must work closely with the buyer, real estate agents, and attorneys to determine a mutually acceptable date. Effective communication is essential for ensuring that all parties are present and prepared, reducing the possibility of delays and guaranteeing a smooth transition.

  • Signing and Reviewing A Lot Of Paperwork

On closing day, sellers must review and sign boat loads of paperwork to complete the transaction. The Closing Disclosure, which outlines the financial components of the transaction, loan documentation (if applicable), and the deed of transfer of ownership are all important documents. Sellers must thoroughly comprehend each document to ensure that all terms are proper and agreed upon. Taking the time to carefully review these documents and ask clarifying questions will help prevent misconceptions and guarantee a smoother closing process.

  • Closing Costs

Closing Costs are a crucial component of the closing process that sellers must plan for. Closing costs often include real estate agent commissions, title fees, and any agreed-upon repairs or concessions. Sellers should be aware of these fees and understand the payment options, which often include wire transfers or cashier’s checks. Being prepared to meet these costs ensures that the transaction goes smoothly, allowing sellers to focus on the final procedures of transferring ownership and receiving the sale profits.

Typical Timeline For Sellers

All of this work takes time, mostly because there are so many people involved. Understanding the normal closing timeline is critical for sellers because it allows them to manage expectations and plan accordingly. The method typically goes as follows:

– Pre-closing preparations (30-45 days): This phase entails obtaining financing, conducting inspections, and negotiating any necessary repairs.
– Title search and insurance (10-14 days): Perform a title search and obtain title insurance to verify the property is clear of liens and legal difficulties.
– Final walkthrough (1-2 days before closing): The buyer can visit the property one last time to ensure everything is in order.
– Closing day (1-2 hours): Finalize the sale by signing documents and paying closing charges.

Potential Hiccups For The Seller

Hopefully everyone involved in your sale is on the same page and don’t have any missed emails, phone calls or missing documents, because there is plenty more potential road blocks to selling your home using the traditional method. Regardless of rigorous planning, several circumstances can interrupt the closing timetable, potentially delaying or even completely derailing the sale entirely.

  • Buyer Financing Problems

Delays in the buyer’s financing are one of the most typical concerns. They might be caused by additional documentation demands, changes in financial condition, or lender backlogs. These delays might drastically extend the timeline, leaving sellers feeling unsure.

  • Appraisals And Inspections

Inspections may reveal severe problems that will require expensive repairs, and appraisals may sometimes value the property less than intended. Both instances can result in renegotiations or additional time to address problems, putting the closing date back.

  • Title Problems

Title searches can uncover unforeseen difficulties like liens, boundary conflicts, or clerical errors in public documents. Resolving these difficulties can be time-consuming and may necessitate legal intervention, causing additional delays.

For sellers, these potential delays can be extremely stressful because they might affect moving preparations, financial arrangements, and the overall timeframe for completing the transaction. When selling the traditional method, sellers must stay flexible and proactive, working with their real estate agents and attorneys to resolve any concerns as soon as possible. Being prepared for these scenarios and having backup plans in place can assist to reduce the stress and uncertainty associated with the closing process.

We Buy Houses – Possibly The Better Alternative!

As you can see, selling your house the traditional way with a real estate agent and listing your home, waiting for a buyer and then wait for the closing can not only be nerve racking, but also a long, drawn out process. Why not give us a try?! You have nothing at all to lose, and are absolutely under no obligation to accept our offer. In fact, we might be able to help you find the absolute best solution to your situation!

When you sell to our company, there’s no waiting on loan approvals, we have cash. We also do our inspections within a day or two of having a signed contract. All in all, we can buy your house in just a few days! Just reach out to us at 770-756-8680, or visit MandichPropertyGroup.com to learn more or reach us via contact form.

 

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Atlanta Housing Market Update 2022

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Atlanta Housing Market At A Glance

 

It’s no secret that the Atlanta housing market has been on fire for the last two years. The cause? Historically low mortgage rates and the coronavirus. People tried to flee largely populated areas to get to the less dense suburbs. Current homeowners didn’t want to sell their current property, and new construction was down due to a lack of labor, all leading to a shortage of homes, new and existing. So what does the rest of 2022 have in store for the housing market?

Home Sales Are Slowing

Two significant factors are slowing home sales right now: rising interest rates and more homes are coming to market. It looks like the seller’s market is turning more to a buyer’s, or at least becoming a more stable, normal real estate market.

Kam Williams recently stated this in Atlanta Magazine:

The days of having a listing come on at 5 o’clock, and having to see it by 5:05, and having 40 offers on one property—we’re not having that anymore,” she says. “Now buyers are a bit relieved. If they see something, they don’t have to run out in the next two seconds

Read The Full Article Here

This leads us to our next question that has a lot of people concerned –

Are We Headed For A Crash?

Many people are worried about another crash like that of ’08. In fact, Google trends show that more people are searching the term “housing crash” and similar terms more than at any time since ’07.
If you listen to the news, it’s all gloom and doom, but the market data doesn’t support it. Some experts predict a housing market correction.

The housing crash of ’08 was due to banks’ loose lending standards and an overabundance of homes. Banks aren’t giving out the risky loans they did years ago, and foreclosures still remain low. Housing inventory still remains critically low overall. However, metro Atlanta’s housing inventory rose to its highest level since September 2020. This gives more proof things are turning in favor of buyers.

Again, what we are seeing is a return to a normal market.

 

What’s Making The Market Turn?

Rising interest rates are a real problem for some would-be buyers. Prices of homes are still extremely high. The median price for a home in Atlanta is over $400,000, the price alone is driving out a lot of young and first-time homebuyers, and rising interest rates only exasperate the problem. For instance, a 2% rate increase from a fixed rate of 3.5% to 5.5% on a $300,000 home would mean an increase in monthly payments of over $350.00. So, in theory, this will affect buyers on the lower end, having less inventory and competing with other buyers wanting the same property.

What’s Ahead For The Rest Of 2022?

We wish we had a crystal ball, but we don’t, so all we can do is follow the market data.

Housing inventory remains extremely low. Many would-be sellers don’t want to sell because of rising interest rates and lose the low 3.5% rate they have now. However, people will become used to the higher interest rates and continue to buy. If you need to move because of a job transfer, it’s out of necessity, not luxury.

Rising interest rates will definitely slow new home construction. The data is already showing fewer permits being pulled for new home construction.

Our take:

We think things will continue to slow, especially if interest rates continue to rise. Rising interest rates are the only hedge the Fed has against inflation.  Inventory remains extremely low, which will keep prices high, but we will see a small correction in prices as we are already seeing sellers having to lower their asking prices in some areas.

As a reminder, if you have a home that you have inherited, are a tired landlord, have a house that is ugly or pretty – we would love the opportunity to make you an offer on it, just get in touch with us!

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How Is AI Changing Real Estate?

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Whether you like it or not, AI (Artificial Intelligence) is changing our entire world. We use AI for everything from interacting with our cell phones to where our cars can drive themselves. So is Artificial Intelligence going to change the shape of the real estate industry? Yes, and in fact, it already has. So what is to come?

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AI Is Disrupting The Real Estate Industry

Almost everyone has heard of Zillow. So how have they changed things up with AI? Zestimates. Zestimates are an algorithm calculated value of your home. The algo uses data from public information, submitted data from users and takes into account things like current market conditions, location and home facts. Is it 100% correct – no, but it can be a good place to start gauging your properties value.

Check out what Adrian Fisher has to say about AI and Real Estate:

In the future, agents will no longer need to accompany clients to show a home, and clients can tour a property at their leisure. Agent-less showings will become more popular as AI-powered robots will be able to show clients around properties anytime and answer questions they may have.

In the future, consumers may prefer to do business with bots instead of real people. According to Salesforce, 69% of consumers prefer chatbots for quick communication with brands.

Zenplace, for example, is a company that offers consumers an AI-driven home tour experience. The startup developed a bot that comes with a tablet attached to a pole on wheels. It streams a live feed of a real estate agent who conducts the tour and steers the robot. This simulated robot increases the number of showings that realtors can hold within a day.

AI will enable buyers to view homes on their own, give feedback, and allow the agent to help clients decide why it may be a suitable property. Robots won’t take over, as a human touch will still be necessary. Instead, this technology will be helpful to agents that cover a lot of territory and have a busy showing schedule.

Read Adrian’s Full Article Here

So it looks like agents may be a thing of the past, or at least headed that way. In fact studies show that most home buyers now start their new home search online before even contacting an agent.

Do You Really Need A Real Estate Agent Now?

Things are really changing, and changing fast. In our opinion, sellers and buyers are tired of paying out so much cash for what most agents do, just list and put a property on the MLS (Multiple Listing Service).

Here is what G. Brian Davis from Bigger Pockets has to say about it:

Consider these questions: Does everyone need a real estate agent? Are the services that agents provide worth $10,000? How long are sellers going to continue spending that kind of money to list and sell a property?

Not much longer.

Services like Owners.com in the United States and Your Online Property Agent in the U.K. have started offering flat-fee services in the $400-1,000 range depending on how much extra attention and services you want. All services include an MLS listing, buyer funds verification and background check, property showings calendar and offer negotiation support. Premium services include local agent support, professionally written descriptions, sales contracts, and similar bells and whistles.

So what do sellers give up by using these services? The biggest difference is they would have to show the property themselves. But who can sell the house better than the people who live there?

Expect to see these online brokerages increasingly put the pressure on real estate agents.

Read Brian’s Full Article Here

So it really appears that the pressure is on agents, especially the ones that under perform. We all know somebody that has had some sort of horror story with a realtor.

Are Agents Going To Become Obsolete?

In our honest opinion, not any time in the near future. Agents do still provide a valuable service (well, at least some of them). There are sellers that don’t have a clue as to how to sell a home or even know where to begin.

Monica Nickelsburg makes this important point:

Real estate companies such as Zillow, Redfin, Opendoor, Compass, and others are investing heavily in the burgeoning “iBuyer” market that lets people quickly buy and sell homes online. Those transactions still require a real estate agent.

Read Monica’s Full Article Here

Summing It Up

So that’s just a little about how AI is changing the real estate industry. There are many more things that are coming and are on the horizon. One thing for sure, not as many people are going to have to rely as heavily on real estate agents as they use to.

If you have a house anywhere in Chamblee or the surrounding areas that you want to sell – give us a call! You don’t need an agent to sell to us. Just give us a call at (770) 756-8680 or check out our website to complete a brief form and we will contact you soon.

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Can You Sell Your Home Before The Mortgage Is Paid Off?

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Some homeowners often wonder how this works, how can you possibly sell your home while there is still a mortgage on it. It can be fairly simple, just like selling a car that you haven’t paid off yet. However, there are some things you need to take into account before deciding to sell.

First, you need to factor in the 5 year rule. If you bought your house within the last few years you may not be able to sell your home without bringing money to the closing table. New homeowners need to stay in their house for at least 5 years to make sure they don’t lose money when it comes time to sell. We know this isn’t always possible, especially when you have to transfer to another city because of your occupation. If your job is the case be sure and ask your employer if they can possibly help offset the costs of selling your home without any equity in it. Maybe they will, maybe they won’t – it doesn’t hurt to ask.

Steps To Take To Sell Your Mortgaged House

If you have been in the property for a few years and have to move the next thing to do is lose your emotional attachment to the property. We understand this can be difficult, especially if you like your house and are having to move because of work or some other reason. Investopedia has some good advice about this:

Once you decide to sell your home, it can be helpful to start thinking of yourself as a businessperson and a home seller, rather than as the home’s owner. By looking at the transaction from a purely financial perspective, you’ll distance yourself from the emotional aspects of selling the property that you’ve undoubtedly created many memories in.

Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling not just a piece of property but also an image, the American Dream and a lifestyle, you’ll be more likely to put in the extra effort of staging and perhaps some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price but also help you create that emotional distance because the home will look less familiar.

Read The Full Article Here

We can’t stress enough how important it is to distance yourself from the property. If you can, pack up a lot of your personal belongings, especially pictures to make it easier for a buyer to see the home as their own.

Contact Your Mortgage Company

If you plan on listing your home with an agent you should contact your mortgage company first to learn what your pay off amount will be. This will help you when it comes time to calculate what the house will bring on the market. It will also help the agent to know at what price point you need to be if you have been in the home for a short amount of time.

Lauren Perez gives some more important info from her article on Smart Asset:

If you’re thinking about selling your home, it’s best to contact your mortgage lender and ask for your current mortgage payoff amount. The amount you receive is generally valid for 10 to 30 days, before more interest accrues and changes the amount. Why does this matter? Knowing your outstanding loan balance will help you come up with a selling price. What’s more, you’ll need to use the money from your home sale to pay off your mortgage loan.

It’s also important to review your mortgage loan paperwork and look for due-on-sale clauses. Due-on-sale clauses protect lenders by requiring homeowners to pay their mortgage loan in full after selling their home or transferring their deed to someone else.

Read The Full Article Here

The due-on-sale clause is almost always in the loan paperwork now days. The lenders started putting that clause in to help them make more money. Basically it’s there so that if interest rates were to rise sharply they can collect more in interest from a new home owner.

What If You Are “Upside Down” In Your Mortgage?

This isn’t as common as it was a few years ago, but it does happen. As we discussed earlier if you have only been in the house a couple of years you won’t necessarily be upside down, you just won’t have enough equity to cover closing costs. However, some homeowners have multiple mortgages or HELOC’s (Home Equity Line Of Credit) that is maxed out. These sales can be a bit more difficult, especially if you don’t have the cash to cover these loans. So what do you do? A short sale.

SFGate explains perfectly what a short sale is:

In a short sale, the lender agrees to take less than it is owed and still clear the mortgage off of the books. Short sales can be complicated to set up and very time-consuming. While a law passed in July 2011 generally prevents your lender from coming after you for the short sale deficiency, it’s still a good idea to make sure that you won’t be held personally liable after the fact.

Read The Full Article Here

It’s great that the law was passed in 2011. However we have seen that short sales can take a long time, if they happen at all. For what ever reason the lender decides not to complete the short sale. If this is the case, unfortunately you may have to consider a Chapter 7 or 13 bankruptcy.

Summing It Up

Yes you can sell a house while there is still a mortgage on it. If you have been in the house for a long time – great, you shouldn’t have any problems. If you sell the traditional way with an agent you should have enough money for closing and might possibly walk away with some cash. If you have been in the home only a few years, or owe more than it is worth, it might be a little more difficult.

If you have a house and would like to sell it, we would love the opportunity to make you an offer. If you have only been in the house a few years, we probably won’t be able to make a deal. However, if you have been in it some time or the house needs some repairs – we probably can. Just reach out to us at (770) 756-8680 or visit our site to complete a brief form and we will get back to you soon.

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Are Home Buying Companies Legitimate?

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Do you own a home that you need to sell and are looking for a reputable we buy houses company? Well, you found them! We are Mandich Property Group and we are a local company that buys houses for cash and in any condition. You can get a free, no obligation offer by calling us at (770) 756-8680, or by visiting our website here to fill out a short form and we will get back in touch with you very soon. Now that that’s out of the way – on to the article 🙂

Are We Buy Houses Companies For Real?

Since it is a growing industry many people are asking, “how do the we buy houses companies work?”.  It’s pretty simple really, much more so than the real estate agent route with all the complicated paperwork. It is a legitimate business, but like with every other business there are scammers out there to worry about. One investment company that will not scam you is our company – Mandich Property Group, we are here to assist families like yours that may need or want to sale a home or property fast for a variety of reasons.

Selling Your Home To A We Buy Houses Company Isn’t For Every Seller

Selling your house to a cash buyer or investor might not be for everyone, you will need to weigh the pros and cons for your individual situation.Here is a piece of a great article that explains more:

When a seller chooses to work with a “We Buy Houses” company, it’s most often for one of two reasons: because they are in a financial position where they want to get cash fast or because they don’t want to take on the stress and burden of selling a house. That being said, We Buy Houses companies are not for every seller. It’s important to first evaluate what your needs are when it comes to selling a home before making the decision to sell on the market or sell to a company that buys houses.

Not all We Buy Houses companies are the same, many will operate in a very different way than others and, unfortunately, some will try to take advantage of sellers. That being said, make sure to do the necessary research beforehand and trust your gut! If anything ever feels off, make sure to get clarification.

Read the full article here

That last bit of information is very important! With every financial investment, especially large financial investments, you want to check out the company to make sure they are the best fit for you and that they are who they say they are. These days it’s much easier to check on the legitimacy of a company by simply searching for them on the web and looking at their reviews or finding them on social media.

We Buy Houses Companies Pay With Cash

There are benefits in selling to a cash buyer when you pick a reputable company such as Mandich Property Group. In this article by AdvisoryHQ it shows just a couple of the best benefits;

The primary benefit of using one of these services is that many of the companies that buy houses will offer to pay you in cash on the spot. You do not have to go through a realtor, deal with all the paperwork, or show the house, so it’s very convenient. Many of these businesses say, “We buy any house,” so even if your house isn’t in the best condition, it is likely that you will receive an offer.

Like anything else in the world, there are both ethical and unethical investors in this business, so it’s important for you to do your homework before choosing a service.

Read the full article here

It’s also important to add that when selling to a cash buying company you don’t have to worry about buyer mortgage contingencies. You also don’t have to be concerned about the buyer not even being able to get a loan making you wait for weeks, only to have to start the process all over again.

Is Selling To A Company That Buys Houses Right For You?

Selling a house is a big decision and there are many choices out there to get over whelmed with. It is true the investment route might not be the best fit for you. When discussing your situation with us if we think it is not the best way for you, we will tell you so. Because selling your house with a Realtor can take a long time and you may or may not get the asking price, this may be a good fit for your situation. Here is a short snippet from another article that gives a few more of the pros of selling your home to an investor:

Buyer financing: Unlike the traditional home sale, there is no waiting on buyer financing. Buyer financing can be a nightmare when lenders delay or slow down closing, sometimes forcing buyers to rescind their offers altogether. Most investors have cash to pay for your home, so this means no delays or hassle in relation to financing the purchase.

Creative Solutions: Because investors have the capital to buy your home with cash, they also have the ability to provide more unique solutions. For example, if you’re underwater on your mortgage, some investors will take over your mortgage altogether. Ask us about seller carry-back, and other flexible financing solutions.

Read the full article here

Summing It Up

Whether or not selling your home to an investor is totally up to you – and only you can decide in the end if it’s the best solution. You also need to use caution in who you choose to do business with, and do a little research on them. If you can’t find anything on the web about them, you might want to choose to deal with another company. Basically it is good to know who you are going to be working with.

We are a family run and operated investment company and we will do our very best to treat you right. We look forward to talking to you soon so reach out to us today and we will work hard to make the selling of your home as easy and painless as we possibly can. Call us today to get started 🙂

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What Are Your Options With An Inherited Property?

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Losing a loved one is a terrible thing. The grief can be overwhelming, especially when it’s a parent. Hopefully they have a last will and testament for how things will be handled after their passing It can make things much easier for you, especially if you have siblings.

There can be a lot of things that need to be addressed after their passing. Final expenses, credit cards, cars, pets, and a host of other things – including a house. In this article we will talk about your options when it comes to a property.

First, if you are reading this and have recently lost a family member, we are truly sorry. If you have inherited a property and want to sell it, we are here for you. We promise to make the entire selling process as easy as possible for you. You can reach us at (770) 756-8680 or visit our site to complete a brief form and we will be in touch shortly.

What Are Your Options?

Really, you pretty much have 3. If all of these are available to you or not are dependent on your individual situation:

  1. You can move into it
  2. You can rent it out
  3. You can sell it

Moving Into The Property

If the house you inherited is nicer than yours, you may want to move into it. This does depend on whether or not you have siblings and you can all agree that it’s okay for you to take ownership of the property. It will also depend on whether or not there is an existing mortgage that will need to paid and you can make the payments.

Lisa Johnson Mandell from Realtor.com explains more:

In the best-case scenario, the property is paid off and comes to you, the sole heir, free and clear. In that case, you’ll be personally responsible only for property taxes moving forward, inheritance taxes (if any), and any repairs and improvements you choose to make.

However, if you’re not the sole heir and inherit the house with, say, your siblings, moving in will also mean compensating the other inheritors (and hoping they aren’t gung-ho to live there, too).

Whatever decision you make, try to base it on a balance of emotional and financial factors: While you may have always dreamed of keeping the place in your family for eternity, if that’s not possible, don’t beat yourself up. Remember, the deceased had meant this inheritance to be a gift rather than a miserable weight on your life. So do what makes sense for you.

Read The Full Article “So You Inherited Property—Now What?“

Lisa makes a good point about the deceased was passing on a gift. Time and time again we have seen siblings squabbling over who was getting what. We also like Lisa’s point of compensating the other heirs if you plan on living there. If you own another property and selling it consider giving you siblings a portion of those proceeds.

Renting It Out

This is also another possibility, especially if you are the sole heir. There are some things you need to ensure to be certain this is a feasible option. What kind of condition is the house in? If it’s newer then you won’t have to worry as much about repairs. If it’s older, than you may have to replace the roof, HVAC system or maybe even new appliances. If there is a mortgage on the property you will have to make sure that the rent covers that.

Then there is the whole aspect of dealing with tenants. They can be demanding. Who wants a call at 3 a.m. with them complaining about they can’t sleep from the noise of the faucet dripping , or they clogged a toilet and it’s over flowing?

There is an alternative to you dealing with them yourself – Property Management Companies.

Tim Jones recently wrote this on the Daily Republic on the subject:

Keeping it can be an investment. You can hire a property management company to manage the tenants, repairs, etc. associated with the house. Ultimately, it could turn out to be a good long-term investment, regardless of whether you ever move into it or not.

The advantage of a professional property management company is that you don’t need to be versed in landlord-tenant law, and don’t need to handle the day-to-day worries.

Read The Full Article “All Things Real Estate: 2 choices with inherited house: keep it or get rid of it“

Property management companies are a great option for taking care of your property and tenants. Some companies will even find and screen the tenants for you. It does come at a price though ranging usually between 6-10% of the monthly rental amount.

Selling The House

This option we run into a lot because, well, we buy houses. Over the years we have purchased multiple probate properties. Just like the other two options you still have to weigh your options. The condition of the property is going to make a difference on how and who you sell the property to. Where the deceased hoarders? Does the house need extensive repairs. Does the property need updating? Hopefully there isn’t more money owed on the property than it’s worth, although this isn’t as common as it was a few years ago.

If the home is in good shape and you have time you can probably list it with an agent. But check out what Christine Bartsch has to say about listing with an agent on Homelight’s blog:

When you’re lost in bereavement and the complexities of probate, it’s natural to look to the familiar—such as hiring your favorite real estate agent. But unless your favorite agent specifically handles probate properties, this is a mistake.

While most probate sales functions similarly to a traditional sale, there are some key differences that require specialized know-how. A probate real estate agent will know how to handle these differences, such as selling a property that requires court confirmation or drafting contracts when the probate property is still in the decedent’s name.

If you don’t live near your inherited property, you’ll need to hire a probate agent who’s local to the property rather than you. This ensures that your agent knows the laws and ordinances of the property’s home state, city and county that may impact your sale.

Read The Full Article “I Just Inherited Property in Probate, What Happens Now?“

Great advice from Christine – be sure your agent is familiar with the probate process in the state the property is located in.

Here is a video that explains even more indepth about some of the things you may face in selling a probate property;

Summing It Up

Having to deal with an inherited property or probate property is almost never easy. Go through all of your available options and choose which will be best for you. Probably one of the biggest things we can suggest is that you talk things over with your parents before they pass and make sure they have a will so that things won’t be as burdensome for you when they do pass, it’s the responsible thing to do.

What Are Your Options With An Inherited Property? Read More »

Common Mistakes To Avoid When Remodeling Your Home

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Some people enjoy remodeling their home and making it their own. Others not so much. In this write up we will cover some of the things that you should do and mostly things you should avoid when planning and executing any remodeling in your home.

But first, if you think you have to remodel your house before selling it – think again. Here at Mandich Property Group we will buy your house in as is condition. Even if you have things you don’t want to take with you – it’s not a problem. Reach out to us at (770) 756-8680 or visit our website to complete a brief form and we will contact you shortly.

Now – on with some tips on Remodeling your home!

Create A Budget

This seems like a no brainer, but is often overlooked. Planning a budget is a must. If you have to go to an outlet store and start getting prices – do it! As investors we can tell you from experience that we almost always run over budget. We do try to stick to it, but in the end we want a product that we are proud of and that a new home owner will enjoy. The last thing you want to do is cut corners at the end of a project just to get it completed, only to not be satisfied with the end result.

Ayn-Monique Klahre from Real Simple goes on to explain even more about the importance of planning a budget:

Since the general rule of thumb is that it’s going to cost more and take longer than you think, make sure you have a big enough cushion in there that you’re not breaking the bank (adding an extra 10 to 20 percent more to the initial estimate is a good start). “If by some miracle you come in under your number, you’ll be happy to have a little extra for decorating!” says DiClerico.

As a general rule, you’ll want to spend more on things you interact with—like cabinets with doors you’ll open and close dozens of times a day—versus things you use less, like decorative tile.

Read The Full Article “The 7 Most Common Home Renovation Mistakes to Avoid“

The last sentence in that snippet is extremely important. If you are doing a kitchen remodel you don’t want to spend all of your money on marble tile and granite counter tops only to have to buy cheap appliances because you are out of money.

Know Your Limitations

Just like Clint Eastwood said in the movie Magnum Force – “A man has GOT to know his limitations”, the same holds true when it comes to remodeling your home. There have been countless times when we have gone to a property that someone wants to sell and it’s very obvious that

  • they did the remodeling work and had no clue as to what they were doing or
  • they hired a sub par contractor or may have took the lowest bid

In either case we knew that the work would have to be redone.

Donna Boyle Schwartz talks about this in her article from Bob Vila’s blog:

Be realistic about your DIY skills. You may be a wizard at painting, and you may even be fairly proficient with Sheetrock and decorative molding, but certain projects are best left to the pros. Indeed, many communities require that plumbing and electrical work be performed by a licensed contractor. The last thing you want to do is take on a project that is beyond your level of expertise and then have to pay a professional to come in and fix your mistakes. Figure out what you can and, more importantly, cannot do yourself before you start a project.

Read The Full Article “The 7 Deadly Sins of Home Remodeling“

It’s extremely important to remember that if you are doing any kind of addition you should always hire a licensed contractor for plumbing and electrical work and get the proper permits.

Choose Your Contractors Carefully

So now you may know that you can’t or don’t want to do everything in your home remodel. Maybe you just don’t have the time, that’s totally fine, the last thing you want to do is get in over your head.

When it comes to hiring a contractor do yourself a favor and get quotes from at least 3, more preferably if it’s a larger project. Nationwide’s Blog (yes, the insurance company) has some great tips on choosing your contractor:

Don’t rush your decision on hiring a contractor. Interview multiple contractors and reach out to their references and previous clients. Make sure each contractor understands what you want. Don’t hesitate to ask them questions about materials, layout and the construction process. Don’t select your contractor based on price alone; compare price quotes and references, and make sure you can work easily with them.

Read The Full Article “The Biggest Home Renovation Mistakes to Avoid“

We would add that you should also research them on the web. Look at their Google listing and check out their reviews. If they have a lot of bad ones – well maybe you should think twice about using them.

Every homeowner (including investors) want the same thing from a contractor, Good, Cheap, Fast work. The problem is that really only two of those at a time is possible. Here is a diagram that helps explain:

For example, if you want good work cheap – then it won’t be fast. If you want cheap work fast – then the quality of the work will suffer and if you want high quality work done quickly – you guessed it – it won’t be cheap!

Doing Projects In The Correct Order

This is something else that is commonly overlooked. This can be really important if your storage is small. You don’t want your new appliances delivered before they are ready to be installed and you have no place to put them.

Tami Brehse from Business Insider explains more:

Budgeting is an obvious part of the planning process, but many homeowners neglect another important part that requires strategy: workflow. Poor planning here can result in delays and added costs.

“When remodeling, things need to occur in a certain order,” Helling said. “For example, you don’t want to refinish flooring and then paint.”

Paint — or a crew of painters and gear — can easily damage brand new floor coverings, so flooring should almost always be done last in a renovation project.

Another commonly overlooked part of the workflow is cleanup. Will your project require a dumpster? What about a truck to haul away debris? Think through your project from start to finish to ensure you’ve accounted for all the necessary steps in the process.

Read The Full Article “The 8 biggest mistakes people make when remodeling their homes, according to real estate agents“

Finally here is a quick video from News 5 out of Cleveland that gives some quick pointers:

Summing It Up

Remodeling can be a daunting task, but if you plan properly you shouldn’t have as much stress and will be able to save some of your hair 😉 . Create your budget, check out your contractors and in general – plan properly. Try and have fun and don’t yell at your spouse or significant other to much!

 

Common Mistakes To Avoid When Remodeling Your Home Read More »

The Difference Between IBuyers And We Buy Houses Companies

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IBuyer V.S. We Buy Houses

There are some new players in the Real Estate market that suggest they have an easier way to sell your home. These are companies like Knock, Offerpad and Opendoor and a few others. But is it really easier? And what’s the difference to a “We Buy Houses” Company?

Before we get into the differences between the two, we would like you to know that if you need to sell a house anywhere in the Atlanta area – please don’t hesitate to give us a call at 770-756-8680 for a free, no obligation on your home or visit our site here to complete a brief form and we will contact you shortly.

Now on to who and what these IBuyer companies do:

Algorithm Powered Home Flippers

Before we get into any of the differences in the two, here is a quick run down on how most of these IBuyer companies work from an article written by Joshua Fraser:

The iBuyer business model is pretty straight forward, a real estate company uses data science and property data, both public and private, to create valuation models that identify home with high investment potential. They can then make an instant offer that provides liquidity to homeowners that doesn’t exist on the traditional real estate market. Typically, iBuyers charge a 7-10% fee compared to a standard 6% agent commission and will offer an 80-100% of the market value for a home. They might charge a higher fee for convenience but many sellers will be willing to pay for the benefit of being able to have a sale finalized within weeks or even days. You may take home a bit less than the traditional method but you can save time and all the headaches that come along with selling or buying a home.

Read The Full Article Here

So IBuyers do work a lot like real estate investors, EXCEPT with all most all investors there is no 7-10% fee charged. Now also depending on where your home is located in Atlanta, investors will offer 70-75% of the properties ARV, or After Repair Value. So in all actuality, so far the two different ways of selling a home appear to be pretty close to the same.

Repairs

But what about repairs? This is where there is a difference in IBuyers And We Buy Houses companies. With investors they will typically buy the house in “as is” condition and deduct the costs of repairs from their offer.

So how about IBuyers? Here is a little snippet from an article written by John Wake:

If the homeowner accepts/signs the “instant” offer, the iBuyer will send out home inspectors and come back with a list of repairs and the estimated costs for the repairs the iBuyer wants done to the house before they will complete the purchase. The seller can make the repairs or the seller can agree to have the cost of the repairs added to the fees the seller will pay to the iBuyer at closing.

A common real estate agent complaint about iBuyers is that iBuyers tend to ask for a lot more repairs and a lot more money for repairs than traditional buyers…

Read The Full Article Here

So they might want repairs to be made to the house before they purchase it, and might charge you more. We would suggest that what ever repairs they say need to be made that you also receive a quote from a professional contractor as well to make sure their prices are in line. If you can get them done cheaper yourself, that might be the route to take, but it will take some time for your contractor to complete. Remember with most real estate investors, like us, you can sell your house in “as-is” condition.

What Are Other People Saying?

So what do some people think about this fairly new way of selling a home? Here is an excellent example just written and released by Andrea Riquier about the Ano family experience in Acworth GA:

Ano, who describes himself as someone who likes to do lots of research — including an exploration of how much he could expect to fetch for his home based on recent comparables — initially reached out on his own to Zillow, Offerpad and Opendoor.

“First of all, they gave us lowball offers,” Ano told MarketWatch. “But that still didn’t solve our problem of where do we move to? We’d essentially be homeless.” He knew that in the ultra-competitive Atlanta market sellers would be unwilling to accept an offer that was contingent on his selling his own home.

Ano received an offer of $248,747 from Offerpad. Several weeks later, citing “recent market activity,” the company sent another offer, unsolicited, of $256,459. Offerpad wanted a 7.5% commission. Opendoor offered $278,300 — less an 11.5% commission. After a Knock agent listed the home, it sold for $297,749. Once Knock’s 6% fee was taken out, and a seller concession of $10,000 was granted during the inspection process, and about $7,000 was spent out of pocket on repairs, the Anos netted about $262,000.

Read The Full Article Here

We highly encourage you to read Andrea’s full article. It has a lot of good data in it about how the entire process works as well as market data.

Is It Right For You?

First of all no two real estate transactions are the same, nor are the sellers motivation or need to sell. We would suggest that you look at all of your options. Check out an IBuyer company, a “we buy houses” company ( like us 🙂 ) and even a real estate agent. Anyone that you contact should make you a free offer. If they want to charge you – move on to someone else.

What and who will work best for you is going to depend on your individual situation and circumstances. Remember, in the end you have the final say on who and how you choose to sell your house.

The Difference Between IBuyers And We Buy Houses Companies Read More »

How Much Does It Cost To Sell Your House

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Many times when someone is attempting to sell their first house mistakenly assume that they will receive the full amount of their selling price less what is owed on the mortgage. If you are selling the traditional method through an agent, the cost of selling your property may surprise you.

Costs Of Selling Your Home Through An Agent

A lot of times when first time home sellers go to the closing table, they are surprised at how much it costs them to sell their property. When you sell your house the regular way through an agent, the costs can add up quickly, and then depending on your market and condition of your home, there maybe some additional costs as well.

First, what the largest amount of money spent on closing is what goes to the agents. Kate Ashford has this to say about it on Forbes:

The biggest chunk of sales costs is made up of agent commissions and transfer or sales taxes ($13,357). “Your biggest ticket items are going to be that estimated closing costs column,” Olsen says. In terms of agent’s fees, typical costs include 3% of the sale price to the seller’s agent and another 3% to the buyer’s agent. As your home increases in value, so do your agent’s fees.

Read The Full Article “Selling Your Home May Be Pricier Than You Expect” Here

6 percent is a lot of money. On a 200k home that’s $12,000 alone gone to just realtor commissions. In our opinion, it is well earned though. You have to stop and think what your listing agent does for you (at least the good ones). There is all of the marketing that they do, showings of the property when you aren’t there, set up and handle open houses and negotiations with buyers agents. If they don’t sell your house, those are their expenses that are not recouped.

It doesn’t stop there,  there is also closing costs that the seller is expected to pay as well:

Some of these costs may include HOA (or homeowners association) fees, property taxes, attorney fees, transfer taxes and title insurance. You also may be asked to pay an escrow fee, a brokerage fee and a courier fee. Altogether, closing costs can range from 2 percent to 4 percent of the selling price.

Read the Full Article “How much does it cost to sell a house?” Here

Here in Georgia we typically see these additional closing costs at an average of 3%. Depending on where you live and the condition of your market will cause that number to vary.

So now we are at 9% of your selling price, but hold on, we are not done yet. There are still more things that you may have to pay for, some of them maybe even before closing:

Home repairs: Your buyer will probably order a home inspection before closing. If the report reveals problems, you may be asked to pay for repairs.

Moving costs: Whether you buy boxes, pack and move them yourself or hire a company, you’ll want to budget money for the actual move.

Read The Full Article “How Much Does It Cost to Sell a House?” Here

The home repairs that need to be made that are noted from a home inspection are often times something the seller never saw coming.  If you are considering selling your home with an agent it may be in your best interest to have your own home inspection preformed so you don’t have any last minute surprises.

Unfortunately, we still aren’t done with what it could cost you when selling your home. Watch this video that explains other possible additional costs, again depending on the area in which you live:

As you can see, it can add up to be quite costly when selling your home.

There Is An Alternative When Selling Your Home

There are really 2 alternatives to selling your home with an agent. The first is to sell your home yourself. However it is likely that if you properly market your property yourself the buyer will have an agent, and you will have to negotiate their commission. In this case you will also probably still have to pay some of the additional closing costs. The amount that you are required to pay will depend on your negotiation skills, or the amount of money you are willing to pay vs. not making a sale.

Your 2nd option is to sell to an investor, or a “house buying company”. This option isn’t for everyone though. If your house is newer and doesn’t need any repairs and you have all the time in the world to wait on a buyer, then your better off either using an agent or selling yourself. If your house is in need of repairs, or you need to sell quickly, this might be a viable option for you.

The reason an investor or a company that buys houses is an option is because they usually pay closing costs. That means no realtor commissions (as long as you haven’t hired one already) and no closing fees.

Our company, Mandich Property Group is a house buying company in the Metro Atlanta area. In most instances we pay all of the closing costs. That means at closing you will get the full amount that we agree upon, less your mortgage. It’s a great alternative for people that are in a hurry to sell, or for whatever reason can’t or don’t want to use an agent. You can learn more by visiting our site, or call us at 770-756-8680.

How Much Does It Cost To Sell Your House Read More »

Can You Sell Your House While It Is Rented?

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Do you have a property that is rented and want to sell it? Are you wondering if you can legally sell the property with a tenant and what are the implications? If you find yourself in this conundrum, keep reading to learn the answers.

Selling A House That Is Rented

Back during the housing crisis a lot of homeowners became landlords that didn’t want to be. They had a property that they couldn’t sell and in order to help cover costs they just put a tenant in the property. Now that the market has recovered, many of these homeowners want to sell their property. The question is can you legally sell the property with tenants in it? The short answer is Yes. However there are some things that you need to be aware of before putting the house on the market.

Tenants have rights, and sometimes it almost seems like they have more rights than the property owners. If you decide to sell the property you can’t just give them notice that they have to move within a few weeks. It really depends on the type of lease they have and if they are in any violation of that lease as well as the state laws that the property is located. Another thing that you are going to have to take into consideration is how well you and your tenant get along.

With tenants this can be a little more difficult due to the fact that you can’t just walk in at anytime to show the property. Viewings will have to be properly scheduled with the tenant as not to break the law, or worse aggravate them to where they can make it more difficult to sell your property.

If you are lucky enough to have your tenant on a month to month, then things will be much easier. You can simply give notice that you will not be renewing their lease next month. However, if they have a yearly lease, things may be a little more difficult and hopefully you are on good terms with your tenant to make the process easier.

Selling Your Property With A Tenant That Has A Long Lease

There are a few things that you can do when selling your property that has a tenant with a long lease that is still in force. The first thing you can do is the obvious, wait for the lease to expire:

Wait for the lease to expire

Most real estate agents would argue that a seller should wait for the rental agreement to expire. Tenants can sometimes be a bit of a wild card in the high-stakes real estate game, so some agents feel it’s best to proceed after the tenant leaves. After that, make some cosmetic fixes to clean up the home, and sell it vacant.

Waiting may be especially important if you have a difficult tenant or one who is unhappy that their home is “being sold out from under them.” The last thing you want is to make showing the home more difficult — and a disgruntled tenant could easily do that by mucking up paint or leaving his place a mess. The result is that your property looks less appealing to potential buyers, which can have a dramatic effect on your bottom line.

On the other hand, selling a vacant rental unit isn’t always ideal for the seller’s finances. It can take months from the time the home goes on the market until it’s sold — months during which the landlord receives no rent. This can be especially trying for sellers whose homes have been a long-term financial burden.

Read The Full Article “How to Sell a House With Tenants” Here

There are a lot of good points to be argued in that previous article. The last one is something that a lot of homeowners will have to think about if they have another property and may end up paying the mortgage on TWO properties for a few months prior to selling the rental.

If you want to sell your house quickly without a tenant, which is what most realtors recommend, you can always consider paying your tenant to leave:

Pay your tenant to vacate

Yes, you read that right.

Paying someone to leave your house might be your best option if you need to sell immediately.

But how much do you offer?

Do a quick Trulia search to find the average rent in your area. If typical rents are more than you’ve been charging, offer the difference multiplied by the number of months left on your tenant’s lease. You could also offer to pay any moving costs. If your tenant won’t budge, throw in some extra cash to pay the security deposit for the new place.

In the end, your tenant doesn’t have to accept any cash you offer. You might just have to wait.

Read The Full Article “How To Sell A Tenant-Occupied Property” Here

If you are on good terms with your tenant and they are flexible, this may be a good option for you, provided they don’t want to much cash.

There is still another option that may work well for some, and that is selling your property to an investor, or an investor that already has rental properties and is looking to acquire more:

Sell your property to another landlord

It’s not what it sounds like, but you can sell your property together with tenants. It’s not against the law to sell the occupied property and let tenants stay until the lease is up if the new owner is ready to adopt a role of a landlord. However, this approach is associated with a number of issues. First, it means that your list of potential buyers will be narrowed down to those who are looking for a buy-to-let. Second, you’ll have to settle the issue with your tenants. After all, they’ll have to live in a property for sale, which means open houses and property inspections. And, as you remember, you can’t just let potential buyers without giving a prior notice to your tenants because it would be a violation of tenants’ rights.

Read The Full Article “How to Sell an Occupied Rental House” Here

This could really be a great option for a lot of homeowners. You could start your search online for companies that buy houses and contact them to find one that does by rentals. If your property is in the Metro Atlanta area, we are one of those companies and you can learn more on our site at www.MandichPropertyGroup.com.

Lastly we wanted to share this great Youtube video that shares a lot about selling your rented property:

Summing It Up

Yes you can sell a property that is rented. However you need to remember that your tenant has rights. If you aren’t selling your property to another investor we highly suggest that you consult with an attorney before putting your property on the market to make sure you don’t break any tenant laws and help protect yourself.

Can You Sell Your House While It Is Rented? Read More »

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