For Sale By Owner – Going it alone The Closing – Part III

After all the nuts and bolts have been completed and ironed out, it’s time to get to the closing table. For most it’s a sigh of relief that their Cape Coral or Fort Myers For Sale by Owner is actually closing.

The closing

If you’ve done all your homework along the way, “the closing” — the day you sign on the dotted line and the deed is transferred from seller to buyer — should be relatively easy. So then, just a few more things to wrap up to get to the table.

Do a final walk-through inspection of the home. This should be done with buyer and seller and it can be completed a few days before closing up to the morning of closing. If you have worked together closely there should be no outstanding problems. You will want to make sure that seller has removed all items and left what they said they would and any repairs that may have been agreed upon are completed.

When you go to closing — at your title company’s office — take your time to review over your closing statement. Ensure that you completely understand it and that you were only charged what you were supposed to be charged. Sometimes the buyers lender will attend, which is always a plus for the buyer.

As a seller you will not want to cancel homeowner’s insurance until the deed of sale is recorded. You own that home until you don’t  — including all the liability. Ask your title agent if you have any further questions before you leave the closing table.

Congratulations — one of you is proud new homeowner and the other is moving on!

For Sale By Owner – Going it alone The Nuts and Bolts– Part II

Last time we left off with the offer and negotiations. Once the deal has been made all parties can move on to doing the homework. In any Fort Myers or Cape Coral For Sale by Owner transaction all parties need to work together.

So now the real work begins and there are lots of people involved to accomplish the task.

Nuts and Bolts

Who do we need to hire and what do they all do?

You will want to start calling in the pros. Most people think when they sell a home themselves that they will do everything themselves — from marketing to closing — and save accordingly! Be ready to bring in some professionals when needed, though.   As you weed through the contract and contingencies there will be the “crew” that you will need to call in. The inspector, the surveyor, the insurance agent, the title insurance company, the appraiser , the lender and the list could go on.

While all of these are needed it can be a simple process. This is where the buyer and the seller will need to work together to get these items done. The seller will need to be flexible to allow for buyers people to access the home to do inspections and or repairs. And of course the buyer will need to be courteous of the seller and their time.

The buyer will need to make sure they have a closing checklist so they can schedule their time for lender requirements. And the seller a timeline to close so they can move on.

For all of this to come together smoothly, you will want to choose a local, reputable title insurance company. They will handle the escrow (good faith) deposit and act as a neutral party for funds. They will be very helpful is assisting the seller and buyer in getting to the closing table and keep you informed of what is going on.

Between the buyer and seller finalizing the sale of the house, many things have to happen — some taken care of by the buyer, some by a third party and some by the seller. Make sure you’ve hired a title insurance company to handle your closing for you — someone who will take care of several requirements, such as a survey and title search, as well as provide the proof of a marketable title and deed.

And then we can get to the closing table.

Part III – coming soon!

For Sale By Owner – Going it Alone (Offer and Negotiations – Part I)

Go on, admit it, you’ve thought about selling your home yourself, instead of hiring a real estate agent? If so, you’re not alone — especially these days. More and more homeowners are planting “for sale by owner” signs in their front yards.

One of the biggest reasons is the savings on real estate commissions – 6% being the standard commission amount. The next biggest reason is control, many people like to make their own decisions.  No one knows the home like the seller, they know it inside and out!

While there are many ways to go about the Cape Coral and Fort Myers For Sale By Owner route, here are a few tips on how to proceed once a seller already has a buyer.

Offer and Negotiations

Someone wants to make an offer on your home. Now what?

First, make sure your buyer can buy it. Simple, right?  You want a buyer who can afford your home, before signing anything ask for proof of funds or a pre-approval letter from their mortgage contact.  You don’t want to waste time with unqualified buyers, so recruit a mortgage officer to meet with potential buyers. The officer can preapprove or prequalify the buyer — potentially saving you time and aggravation — while drumming up business.

The offer stage is one of the most important points in the whole For Sale By Owner process

You are going to want to brush up on how to negotiate to get the outcome you want.

Be ready for some buyer expectation that you’re going to provide a bargain, let’s face it, you are doing this yourself and saving a lot of money! A deal is made when everyone will feel as though they’ve won.

It is also very important where the offer presentation will occur. Think about it, it’s a business conversation, you may want to recommend that the buyer present the offer at a coffee shop or even at a title company, however the best would be at your home, at the kitchen table – not sitting by the pool or on the sofa – it’s going to be one more opportunity to sell the property.

So now you and your buyer have settled on a price.

Now, a rule of thumb when selling your home yourself: Put every last thing in writing. Including the offer from the buyer, any counteroffers, the final agreed-upon price, and of course contingencies -making sure all parties sign off.

Remember this is not the end, there are many nuts and bolts that need to be put together.

Part II – coming soon!

Title Junction: Delivering Witness Courtesy Closings For Ultimate Transaction Peace Of Mind

Here at Title Junction we know firsthand that any type of house sale can prove a stressful experience for both buyers and sellers alike.  With so many procedural requirements and notarized documentation that needs to be filed, a home closing can quickly overwhelm even the most motivated individual.  While a local sale can prove tough enough, the team at Title Junction also recognizes that when buying or selling an out of state property, the stress and inconvenience seems to grow exponentially, leaving individuals on both sides of the transaction harried and frustrated.

Title Junction:  Our Witness Courtesy Closings Can Help Minimize Your Stress

If you’re looking for a way to minimize the stress throughout a long distance selling situation, you may want to consider witness courtesy closings as part of your transaction experience.  Both buyers and sellers managing the details of an out of state sale have found that witness courtesy closings offer  a much needed delegation resource for the extensive paperwork and documentation required throughout the transaction.  How?  By offering services on behalf of out of state mortgage, title and escrow entities and acting as a liaison to buyers and sellers.  This third party engagement instantly minimizes needless and unforeseen procedural blips and ensures that the close happens as quickly and conveniently as possible.

Witness Courtesy Closings:  What You Can Expect Throughout The Process

Without the assistance of a vendor that specializes in witness courtesy closings, buyers and sellers find themselves embroiled in (what can seem like!) endless trips to and from the property under agreement.  However, partnering with Title Junction for a witness courtesy closing minimizes the need for inconvenient and expensive travel.  At Title Junction, our qualified and highly-trained staff members will intercept all required paperwork from the loaning corporation.  From there we will transport the documents to an agreed-upon location for signature and notarization before processing, filing and forwarding them back to the originating party on your behalf.

Best of all, when working with Title Junction we will partner with you to ensure that the location used to review and sign all documents works for your specific schedule.  Don’t have the time to take a trip to a bank or real estate agent’s office?  Not a problem.  Title Junction will help you designate a convenient location for minimal inconvenience.  Whether you prefer a local café, public meeting space or even your current residence, our clients choose the ideal locale for their closing and we take care of all the details.

Most importantly, as leading experts in witness courtesy closings, Title Junction offers our clients a diverse and comprehensive range of services and capabilities for one-stop transaction solutions.  As such, we offer onsite Florida notary services to ensure that our partners don’t have to source separate vendors for one property sale.  No matter how far away you are from the property in question, Title Junction can receive, transport and notarize everything required throughout the process to deliver optimal customer convenience.

 

What to expect from your Cape Coral or Fort Myers title insurance company

There are many expectations that we have of people we do business with. Here we outline what you should expect from your Cape Coral or Fort Myers title insurance company. A title company should not be looked at like you are going to McDonald’s for lunch. They are working for you on your real estate transaction.

The duties of a title company include:

Serving as a neutral party.  – Title agents and employees should not be taking sides as to protect a seller over a buyer. They work for the whole transaction in a neutral fashion.

Receiving authorization for escrow monies. – This can be done through a contract for a purchase. One party will designate the title company to hold escrow from the buyer (usually the seller).

Following instructions precisely and in a timely manner. – The seller, buyer, real estate agents and lender all have some instructions that will pertain to closing. It is important for the title company to work with these given to have a smooth transaction.

Paying bills as authorized. – A title company will be given invoices to pay through a closing. They will advise if this is able to be done or not.

Provide an accounting for the transaction. – All fees that will need to be collected or disbursed and paid will need to be shown on a settlement statement (HUD1).

Disbursing of funds. – It is most important that the funds be disbursed according to the settlement statement.

Transferring title and recording liens. – A title company should be sure that all documents are processed correctly in the correct county for transferring of property.

If you are ever unsure about a process, you should get a second opinion. Although you may be tied to the title company you are using, you should know what is expected from the one you use.

The Title Agency: Making Your For Sale By Owner Transaction Smooth And Hassle-Free

A reputable and qualified real estate title agency can make your for sale by owner property transaction flow smoothly with minimal delays.  Many people who are involved in a for sale by owner transaction question the role of the title agency and how the agent and agency can assist them with their purchase, but title agencies provide important services and safeguards throughout the sale process.

Your For Sale By Owner Property Purchase And Title Services

A real estate title agency performs many important functions during any property transfer, including for sale by owner transactions.  One of the most basic services provided by the agency is to conduct a title search on the property being sold.  This search will uncover any liens against the for sale by owner property, and ensures the property is legally eligible for sale.  A title company has extensive experience doing this type of records research.  They know where to look, what different terms and findings mean and how to comply with all applicable local, state and federal laws.  The title agency can be selected by either the buyer or seller and is a negotiable part of most real estate transactions.  In either case, the title agency serves as an impartial party that works to ensure a smooth closing for both buyer and seller.

Another primary function of the title agency is to provide the for sale by owner property purchaser and the mortgage lender with title insurance.  This indemnity insurance policy protects the buyer and lender from unseen claims that may arise against the property in the future, such as unpaid taxes or property liens, as a result of past owners’ actions.  Although the title search is supposed to find these liens, it’s always possible for a lien to be missed or a claim to arise against the property from an unknown source.  That’s where title insurance comes in.  The policy will help protect you from losses if such a claim does come up.

While conducting the title search, a title agency will also order a survey of the property, which will uncover any encroachments onto the land that the buyer may be unaware of.  Both title insurance and property surveys are examples of safeguards provided by title agencies.

Additional Services Of The Title Agency

Many title agencies also act as escrow agents which means they can hold the earnest money, pay off the seller’s mortgage and pay any necessary taxes after closing.  Title agencies also file the transaction records with the appropriate governmental entities so that the transfer of the for sale by owner property is properly recorded.

You will also find a notary public on staff at most title agencies.  Notaries assist during property closings and property transactions by verifying the identities of those involved.  This helps prevent fraud.

Last but not least, title agencies also often host the actual closing and facilitate the closing process.  From the moment the earnest money check is signed to the moment the last signature is written on sale documents, the title agency is involved.  The agency handles correspondence and forms from the buyer, the seller, any real estate agents involved, banks, mortgage lenders and more.  The agency will keep track of all of this correspondence and make sure everything is in order for the closing to take place.

It is important for buyers and sellers of for sale by owner properties to work with an experienced, full-service title agency.  These agencies will guide you through the closing process, ensuring all of the necessary transaction paperwork is in order and that the property is eligible for sale.

Real Estate Title Options In Florida

How you hold title to real estate affects how you can use the property and how you can distribute it upon your death.  The differences are subtle but important.  Full service title agencies, like Title Junction, can provide valuable insights about these differences as well as provide escrow and Cape Coral and Fort Myers notary services for your real estate transaction.

There are Three Main Options for Holding Real Estate Title in Florida

In Florida, four basic types of property ownership exist.  The type of ownership you select is sometimes referred to as “holding title” to a property and has important implications for your use of the property. Here we set out three of them.

Joint Tenancy with Right of Survivorship provides each owner with  an equal interest in the property and allows the property to pass to the surviving owner, uncontested, if the other owner dies.  The property is not willed away and does not pass to heirs of the deceased.

Tenancy in Common titles are similar to Joint Tenancy but they do not offer the Right of Survivorship.  With this type of title, each owner has a stated interest in the property.  Property shares, or interest, may be equal parts, or unequal.  While both owners survive, they have 100% use of the property no matter what their actual share percentage is.  An owner cannot sell his or her portion of the property without the other owners’ permission, but they can transfer their interest in the property at any time.  The key element of Tenancy in Common ownership is that owners can will the property away upon their death.  It does not automatically pass to the co-owner.

Tenancy in the Entirety is also called Community Property and is only available to married couples.  Each couple has a 100% interest in the property and must have the consent of their spouse to transfer ownership. Upon the death of one spouse, the surviving spouse automatically retains the property.  Tenancy in the Entirety is not used throughout the United States, but is is a recognized form of title in Florida.

 

We are not attorneys, the information contained in this blog post is provided for educational purposes only as well as to give you general information and understanding. It should not be considered or construed as legal advice.

How A Real Estate Title Insurance Company Works For You

At Title Junction, we meet with many clients and handle numerous real estate closings every year.  Some of our clients are veteran homebuyers and others are going through their first property purchase.  Homebuyers and sellers alike sometimes wonder what the role of our Cape Coral title insurance agency plays in their transaction.  What services do we provide to them?  How does our work assist their transaction in going through?  And whose interests do we represent?

Investigating Properties

A real estate title agency’s services may be best described by using the words investigation and facilitation.  We investigate property histories and facilitate real estate closings.

One of the primary roles of our title agency is to conduct a derailed search of the public record for the property that is to be closed on.  This search is called a title examination or a title search.  Real estate title agencies will examine public records going as far back as the records exist to ensure that the property is unencumbered and legally available for sale.  We look for things such as back taxes owed or liens on the property and research the ownership history, survey data and property tax history.  This information is then compiled in a document called an Abstract of Title.

Facilitating Closings Through Notary And Other Services

In addition to investigating the history of the property, we also offer real estate closing services including Fort Myers escrow and notary services.  At Title Junction, we handle residential and commercial real estate transactions by conducting title searches, acting as a closing agent, escrow agent or notary, providing title insurance or even hosting outside closings at our offices.

As the closing agent, a real estate title agent will oversee the transfer of interests, ownership and funds during the closing.  The closing agent makes sure that no funds change hands until all of the necessary paperwork has been completed properly.  If our title agency is also acting as the escrow agent, they have a fiduciary responsibility to hold the buyer’s escrow payment until the closing is complete.

Protecting Your Investment With Title Insurance

Last but not least, the real estate title agency often provides title insurance for the property.  Title insurance is an indemnity policy that protects both the buyer and the lender from unforeseen claims as a result of past ownership activities.  Separate policies are issued for the owner and lender and they will protect each party from financial loss due to claims that arise as a result of title problems.  These one-time only policy purchases are paid for at closing.

Impartial Service Provider

Perhaps the greatest service a real estate title company can offer is its impartiality.  The job of the title agent is to follow the rule of law, closing instructions, transaction documentation and to generally make sure everything is in order for the sale to close successfully.  This impartiality safeguards everyone’s interest in the property and defines title agencies as a trustworthy place to do business.

What Is “Prime”?

 

The Prime Lending Rate – sometimes just called “Prime”  – is the interest rate that banks charge each other for overnight loans. Some consumer rates – like ARMs – are set in relation to Prime.

In the US, Prime is affected by the Federal Reserve lending rate to banks; historically, Prime is about 3 percent above the Fed rate.

The video shows  an example.

  • The Federal Reserve loans to Bank A at 1%
  • Bank A loans to Bank B at 4%
  • Both banks – A & B – will recalculate variable-rate loans like ARMs on that 4% Prime figure.

ARM rates are frequently defined as “% above Prime” – that gap is usually called the “margin” or “spread.” Just remember those 3 layers in Prime: Federal Reserve Bank A Bank B And finally, YOUR rate.

Closing Costs Explained Visually

 

Purchasing a home is exciting. Once escrow begins, the excitement can change to frustration, particularly if you are not ready for the closing costs that quickly accumulate.

Closing costs simply refer to the fees associated with various things associated with the escrow process in a real estate transaction. In the excitement of having an offer accepted for your dream home, you can easily lose track of the fact you are going to need to have some serious cash on hand to pay them. Many people make the mistake of only assuming they need the down payment money, and have to rush around town trying to come up with money for the closing fees.

Do yourself a favor, and discuss closing costs in advance with your real estate or mortgage person.  And watch this video to have a good mental picture of the costs that you’re likely to incur.