Local Real Estate News – Lubbock Association of Realtors
Why a signed contract isn’t the end of the deal BY Joe L. Murfee, III, President Lubbock Association of REALTORS®
Whew. The buyer and seller both signed the contract, so that’s it, right? The house is sold, and everyone moves on. Not so fast. There’s still a long way to go. Unfortunately, sometimes real estate transactions that start out fine unravel for any number of reasons. When you’re aware of problems that can occur, you may be able to avoid them. Here are a few to watch for and, if possible, avoid.
What if the buyer changes his mind The residential contract includes a termination option. The option period and its cost are defined by negotiation by parties to the contract. The cost of the option is paid for by the buyer and the seller grants to the buyer the unrestricted right to terminate the contract during the option period. The buyer can terminate the contract for any reason – or for no reason at all. He may get cold feet, change his mind, find a property he likes better, or learn something about the property that he didn’t know when he negotiated the contract.
a property, most buyers hire a licensed, professional inspector to examine the home to identify any problems. These inspections should occur during the option period. If an inspection reveals something of significance, the buyer may decide to exercise his option to terminate or he can decide to proceed with the purchase. He could also attempt to amend the contract, either by changing the price or by getting the seller to make repairs at the seller’s expense. This approach requires more negotiation between the parties because the seller is not otherwise obligated to make the requested repairs. Obviously, this introduces elements into the transaction that can disrupt the transaction or end it altogether.
Financing – is it available to the buyer Most home purchases involve the process of the buyer borrowing money and most contracts have a financing condition addendum that defines the loan contingency. It’s not enough for a buyer to tell the seller how much he will pay for the home, he must also have the resources or have access to resources to make it happen. If the purchaser isn’t paying cash for the property, he’ll need a mortgage. And if he can’t get that financing, the transaction will fail. An inspection might reveal issues of What happens when a buyer cannot secure concern To acquire additional information about a loan depends on what the contract says.
Single ladies top homebuying charts
(NAPSI) – Almost twice as many single women (20 percent) are buying homes than single men (12 percent), according to the National Association of Realtors (NAR). The reason? Because they can. Even in the midst of a challenging economy, women are poised for success. It’s the first time women make up more than 50 percent of the workforce. Recent research by the U.S. Department of Education’s National Center for Education Statistics showed women earn 58 percent of all college degrees. These members of the workforce are earning significant salaries and want to build their wealth and security through homeownership. As recently as the 1970s, it was challenging for a woman to get a mortgage or even a credit card. Now, modern credit companies don’t discriminate against gender and the overall acceptance of women staking their claim as equals among men in the workplace (both in pay and skill) has contributed to a spike in home-buying among today’s single women. According to Bev Thorne, chief marketing officer for Century 21 Real Estate LLC, these tips will help female homebuyers: • Make a list of what’s important to you – Focus your search on finding a property that will meet your needs today and in
the future. Fifty-one percent of single female homebuyers in 2010 said proximity and convenience to their job was most important in terms of location (NAR Report 2010). • Frugal habits pay off in the long run – Thirty-five percent of single female homebuyers in 2010 cited cutting spending on luxury and nonessential items as a sacrifice they made toward saving for their home (NAR Report 2010). • Know what you’ll be paying for – If you’re used to renting and having a landlord cover costs of standard yard and home maintenance, you’ll need to anticipate new expenses, such as landscaping and garbage removal. Use the mortgage calculator tool on www.century21.com to calculate your monthly payments. Knowing these costs up front will allow you to set a realistic budget for your first year of homeownership. • Talk to an expert – Combine advice from friends and family with that of a trained professional. “Achieving the American dream of homeownership continues to be a worthy goal,” said Rick Davidson, president and CEO, Century 21 Real Estate. “I encourage all potential homebuyers to speak with a qualified real estate professional.” For more information, visit www.century21.com.
In some instances, the buyer may lose the earnest money he paid. In other cases, the buyer will receive a refund of his earnest money. For the benefit of everyone involved in the real estate transaction, consider talking to a lender at the beginning of your home search. The home valuation - the purchase price Even if a buyer can qualify for the loan amount, the property must also qualify as to its value. Most lenders require an appraisal of a home prior to making a loan. The lender wants to know that the collateral for the loan – the property itself – is actually worth the purchase price. Please remember that there is a difference between a home inspector and a home appraiser. Title problems can derail the process Title insurance is just a must have in this day and time. For one reason or another, some properties have title issues that can grind a transaction to a halt. There is no substitute for buyers acquiring clear title to the property being purchased. Title companies and attorneys are the resources to use when there are title issues. Problems may involve the chain of title, liens, easements that affects the quality of life of the property owners, or any number of issues
that need to be addressed to perfect title. Your lender will be just as interested as you are that the title is clear on the property they will have as collateral for their loan.
And another thing … As you can see, there are many ways a promising real estate deal can crash and burn. Add the following to the list above: agreed-to repairs that the buyer deems unsatisfactory or incomplete; a surprise during the final walk-through of the home, such as an item that was supposed to convey that is no longer in the home; a sudden request right before or at closing; and plain-old default.
Whether you’re a buyer or seller, your Lubbock Realtor can help you avoid these scenarios and give you good advice when a potential deal-breaker does arise. Sometimes, he or she may suggest you turn to a lawyer, inspector, engineer, or other professional for assistance; sometimes, they may be able to put things back on track with a phone call or two. Either way, it’s nice to have someone on your side to help you achieve your goal of buying or selling a home. For more information, I invite you to visit www.LubbockRealtors.com.
Is your home security at risk? Reasons to re-key your locks
(NAPS) – Is your home security at risk? According to FBI statistics, 8,600 breakins occur in the U.S. every day (that’s one every 10 seconds!), and more than half the time, they’re happening during broad daylight, entering right through the doorway. But most break-ins are a crime of opportunity, so you have the power to take back control. According to the Kwikset American Security Study, nearly one-third of homeowners have lived in their current residence for five years or less. And while moving into a new home can be very exciting, it’s also a vulnerable time for home security because there’s no telling how many people have copies of your house key. That is, unless you’ve physically changed or re-keyed the locks yourself…which is an affordable, smart and simple way to up your odds of foiling a break-in before it even occurs. Following are five more important reasons to re-key or change the locks to your home: 1. You have lost, stolen or unreturned keys: More than half of homeowners routinely loan out house keys to people who don’t live there; e.g., housekeepers, gardeners, babysitters, neighbors and so on. 2. You’ve recently moved: A shocking 47 percent of U.S. homeowners did not re-key their locks upon moving into their home, with about a third having never re-keyed or changed their locks at any point since living there.
the integrity of their subcontractors. 5. You’d prefer one-key convenience: Imagine how much easier it would be if one key unlocked all the points of entry to your home. No more fumbling through key rings trying to decipher which key unlocks what. While it may sound like a daunting project, re-keying your locks can be as easy as 1-2-3. Kwikset®, a leader in residential door hardware, developed a ground-breaking lock technology called SmartKey®, which allows homeowners to quickly and easily re-key their own locks in a matter of seconds without having to remove the lock from the door. Providing superior security, SmartKey
3. You have tenants: When tenants move out, they give the key back. But there’s no way to know if they’re holding on to a copy. Ensure the security of your rental unit by re-keying the lock immediately upon tenant departure. Not only will this ensure no unwanted “houseguests” are staying on the premises while vacant, but it’s also important for the safety of your new tenants. 4. You’re remodeling, up-grading or updating: Even when working with the most reputable contractors, the minute you give them a house key you’re relinquishing control over your home security. There’s no telling how many copies they could potentially make, and there’s no guarantee of
deadbolts are made with high-quality stainless steel internal parts to ensure smooth operation, increased strength and exceptional durability. These deadbolts are designed to withstand picking, and include the security of BumpGuard™ to protect against lock-bumping attacks. They’ve even proven their superiority at a recent professional lock-picking competition. Only one of 56 Kwikset SmartKey deadbolts was able to be picked by a professional locksmith in under 10 minutes, compared to 44 out of 56 deadbolts that were successfully picked for the competition. For more information, visit www.Kwikset.com.
Home Transformation
Revamping your home with today’s ceramic tile (ARA) – Transforming the look of the home does not need to be a costly, complicated process. And with an increasing focus on sustainability, homeowners are more concerned with using durable products that will keep their beauty and functionality for years to come. Revamping your home with ceramic tile is a great way to establish a contemporary look that will last. The technical specifications and aesthetic applications that ceramic offers are affordable and do not necessarily involve major work. Ceramic tile is easy to clean and maintain, durable and resistant to most common forms of wear. The other notable feature is that tile comes in a multiplicity of shapes, colors, textures, finishes and weights. This range of options in ceramic floor and wall tile makes them the perfect ally for turning original design ideas into personalized spaces. The tile experts at Tile of Spain offer these tips to consider when working with ceramic tile: • When using ceramic tile to tackle a renovation project, make the material’s versatility work as much as possible for you. Plan the kind of ambiance you want to create in any given room and select colors and finishes that will help achieve it. Bright colors help enhance the light. Earthy and ochre colors transmit serenity. Blues, greens and browns can be used to create natural spaces while the contrast of black and white adds simplicity and elegance. The possibilities are as boundless as the user’s imagination. • The broad spectrum of this material’s design versatility has helped it become a popular decorative element. The old-fashioned view of ceramic as a simple, functional product to be used only in very specific rooms such as the kitchen and the bathroom, has lost ground over the years as the material has become more versatile. When working with tile, be open to the various propositions - metallic finishes, finishes that mimic the look of fabric and wood, relief work, new sizes and formats. Choose those that enhance the personality of the targeted design space. • Combinations of finishes and textures help break up the linear nature of a room and make it more dynamic. Relief and “volume” finishes, as well as large format tiles, enable you to change the apparent dimensions of a room and play with the light. Imitations of wood and leather give a greater sense of comfort and create references to natural elements. Transforming the look of Because tile now provides such versatility and beauty, there is a growing quest to apply the qualities of ceramic to other spaces such as patios, porches and terraces, and even to other objects or furniture pieces, such as headboards, tables, benches, shelves, bookcases and inside closets. These new applications mean that homes are developing a more personal and original feel and are becoming more practical. Equally, screen-printing and digital printing techniques have opened the doors of the imagination when decorating tiles. The development of these production processes enables the final look to be highly personalized, creating spaces that are unique and custom-made. Bearing in mind the durability of ceramic, ease of maintenance and easy installation methods that enable spaces to be altered cleanly, simply and cheaply, it’s becoming clear that using ceramic tile is an efficient way to revamp your home creatively and affordably. For more tips on decorating with today’s versatile tile, visit www.spaintiles.info.
the home does not need to be a costly, complicated process. Revamping your home with ceramic tile is a great way to establish a contemporary look that will last. Tile comes in a multiplicity of shapes, colors, textures, finishes and weights. This range of options in ceramic floor and wall tile makes them the perfect ally for turning original design ideas into personalized spaces. The final look is highly personalized, creating spaces that are unique and custom-made.