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Having your home sale fall through can be extremely disappointing. After months of preparing, accepting an offer and having your house under contract, it can be crushing to see the deal crumble in escrow. And a recent report from Trulia reveals that home sales fell through at double the rate in 2016 than they did in 2015. So what should you do if your home sale falls through?

Understand why the deal fell through

First of all, it’s important to understand why your deal might have fallen through. One of the most common reasons a deal doesn’t close is because of contingencies. These can include expensive repairs, a low appraisal or even and open lien on your home. Another common reason a home sale falls through is because the buyer cannot secure their financing. In some cases, these deals can be salvaged if the buyer is willing to negotiate. In others, though, you may have no choice but to relist.

Make needed repairs

If your home inspection revealed an issue that became a deal-breaker, you’ll need to invest in repairs. If not, you will need to disclose to the next buyers upfront what the issue is. You may also want to consider lowering your asking price to account for the repairs the new owner will need to make.

Adjust your listing price

If your home appraised for less than the asking price, you’ll need to have a discussion with your agent about adjusting that price. Buyers can only secure financing for the value of the property. If you don’t feel comfortable lowering the price, it might be smart to take your home off the market and wait for prices to recover. You can also try hiring a second appraiser to see if they appraise the home for a higher value.

Look for pre-approved buyers

While there’s always a chance a buyer’s loan could fall through, you’ll have greater success if you work with a buyer who has been preapproved for a loan. They’ve already been screened and are more likely to secure financing without any issues. Even better – look for buyers who are willing to make an all-cash deal. However, be aware that buyers willing to pay cash will often expect a better selling price than what you would agree to with other buyers who would need financing.

Limit contingencies

If contract contingencies caused your home sale to fall through, limit the contingencies on the next offer. One of the easiest pitfalls to avoid is having your sale contingent on the buyer’s sale of their current home. With this contingency, if their home sale falls through, so does yours. Look for buyers who aren’t relying on the sale of their current home to finance the purchase of their next home.

Be more attuned to a buyer’s behavior

Did your buyer get cold feet? It happens, especially because buying a home is a very emotional process. Be wary of buyers who seem particularly anxious or who don’t seem confident with the purchase. If you have the choice, choose a buyer who is confident, positive and ready to move forward.

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It never hurts to load up on information, especially when you’re preparing to enter the real estate market. And while there’s tons of information online to get educated about buying and selling real estate, sometimes you may want to go deeper and learn more. If so, there are many great books on the market that will help you understand real estate transactions in depth. Here are some of our top picks.

Best books about buying a home

Don’t let fear of the unknown prevent you from making your real estate dreams a reality. Whether you want to buy your first home or invest in properties, these books will give you a thorough education about the process.

• Nolo’s Essential Guide to Buying Your First Home – This go-to book for real estate newbies covers all the bases from a legal perspective. It contains advice from every kind of real estate professional, including brokers, attorneys and inspectors. You’ll also get stories from real-life buyers and learn what to avoid.
• The 106 Common Mistakes Homebuyers Make (And How To Avoid Them) – While we often learn most from our own mistakes, they can cost you when you’re buying real estate. Instead, learn from the mistakes of others so your home purchase goes smoothly.
• Real Estate Investing For Dummies – The Dummies series has been around for a long time, and there’s a reason why. These books are a great introduction to just about any topic. This particular edition will give you a good understanding of the investment process. As you get more knowledgeable and confident, you can explore more niche topics in real estate investing.

Best books about selling a home

Selling a home can be an intimidating and complex process. It helps if you know what to expect before you begin. If you’re preparing to sell a home, here are some excellent books that we can recommend.

• Selling Your House: Nolo’s Essential Guide: Much like their book on buying a home, Nolo’s guide for selling is equally informative. This book tells you everything you need to know about strategizing, planning and closing the deal.
• House Selling for Dummies – If you want to make sure you understand all the basics of selling your home, this is a great book to have. Learn how to attract buyers, determine your selling price, negotiate the best offer, and much more.
• Your Amazing Itty Bitty Sell Your Home Book – Don’t let the cute name fool you. This book is chock full of solid advice for staging your home and netting a quick sale at a great price. It outlines the steps you should take to make your home more beautiful in order to attract buyers and get better offers. If you’re planning to stage your home yourself, this is a great read.

So head on out to your favorite neighborhood bookstore, your local library or shop online to pick up some of these great books. The information will be invaluable as you begin the process of buying or selling a home.

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Purchasing a home is one of the biggest financial transactions you’ll make in your lifetime. It’s important that serious buyers do their due diligence before making any commitments on a home. If you’re buying, there are several warning signs you should be on the lookout for. Here are some of the most common red flags you’ll encounter when buying home.

A decline in the neighborhood

Unless you’re buying far out in the country with no neighbors nearby, you should take a good look at the neighborhood in which the house is situated. Even if the home you like is in great condition, what about the rest of the street? Are there many vacant homes? Do you see empty storefronts? Is there any evidence of vandalism? You’re not just buying a home; you’re becoming part of a community. If the neighborhood is in obvious decline, this is a big red flag.

Amateur repairs or additions

In our DIY culture, it’s not unusual for homeowners to tackle home maintenance and repairs on their own. But if something in the house looks like it was obviously done by an amateur that could be a cause for a concern. Find out if the proper permits were obtained before the work was done, and if everything was done according to code. If not, it could cause you significant money down the road.

Water damage

Water can cause substantial damage to a home. Be on the lookout for rotting wood in the bathroom and kitchen. Check the basement for signs of moisture or water stains. Examine the exterior including window trim, eaves and decks for signs of damage. Also be aware of any standing water in the yard or near the foundation, which could cause structural damage to the home.

Environmental hazards

If you’re considering an older home, be sure to thoroughly check it for possible environmental hazards. This could include lead paint, radon, toxic mold and asbestos. Older homes are more likely to contain these types of hazards because they were built before technology and building codes changed.

Although many of these toxins can be removed, they require the services of a professional like asbestos survey birmingham, depending on the job it can be expensive.

Infestations

When you’re touring, take note of any signs of infestations. Look for droppings, dead insects or signs of nesting. These could mean termites, mice, roaches, bed bugs or even raccoons living in the attic. Sometimes the infestations are not always obvious, and you’ll want to include an inspection by a professional pest control specialist before moving in. If you find that termites have already infested the property, contact a residential pest control and termite control company straight away.

Old wiring

Is the house equipped to handle the demands of today’s technological environment? Old or faulty wiring in a house can be a safety hazard. In some cases, outdated electrical systems can cause a fire. Click here for a great source about fire damage on homes. Keep an eye out for ungrounded outlets, flickering lights, warm faceplates, lights that don’t work and aluminum wiring. These indicate that the home has inferior electrical work, which can be very expensive to replace.

As you begin to view homes, keep a eye out for any of the issues mentioned above and have them thoroughly inspected by a professional before closing on the house. If you don’t, it could end up costing you much more in the long run.

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Is 2018 the year you’ll finally realize your dream of buying a home? If you’d like to make that dream a reality, start planning now so you’ll be ready in the New Year. Here’s what you need to do to set yourself up for your 2018 home purchase.

Request your credit report

The first, and most important, thing you should do as you prepare to buy a home in the coming year is to check your credit. Your credit affects your ability to qualify for a loan and the kind of interest rate you’ll get. The better your credit, the more favorable your loan conditions will be. Even if you think you have excellent credit, you need to request your report. Many credit reports contain errors, and you’ll need time to address them and have them removed. And if your credit isn’t great, you can start putting measures in place to repair it.

Ask for money

When Santa asks you what you want for Christmas this year, tell him you want cold hard cash. All kidding aside, though, consider how much cash you’ll need for closing. Not only do you need money for the down payment – up to 20 percent of the purchase price – but you’ll also need to save for moving expenses, repairs and other unexpected costs. If you are expecting to receive gifts for the holiday, ask for financial contributions toward your home purchase.

Determine how much you can spend

Before you begin looking at homes in earnest, you need to determine your price range. Use an online calculator to plug in your details and find out how much house you can afford. And remember while it’s always fun to fantasize about your dream house, you’ll want to be realistic about how much you can comfortably spend each month. Committing to expensive mortgage payments that you have to stretch to make each month is stressful. You’ll enjoy your new home more if you aren’t worried about staying current on your loan.

Start looking at neighborhoods

The fun part of looking for a new home is researching neighbors and getting a feel for where you want to live. If you live close to the area where you want to move, drive around some neighborhoods, and see them at different times of day. If you don’t live nearby, take a virtual tour with Google Earth and scour the web for information. Start making a list of what you’re looking for in a community, and see which ones fit the bill.

Get preapproval for a loan

If you’re happy with your credit score and you’re ready to begin your search, then it’s time to get preapproved for a loan. Take time to research lenders and find the best rates and terms. Getting preapproved for a mortgage shows sellers that you are serious about buying a home. It’s essential that you get a preapproval letter once you’ve determined you’re ready to start putting offers on homes that fit your needs.

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Selling your home during the holidays can present a dilemma. Should you deck the halls? Or should you leave the wreaths, lights and nutcrackers for next year? On one hand, it might not feel like the holiday season if you don’t put up a decoration or two. On the other hand, too much holiday décor might turn off prospective buyers. What’s a home seller to do?

If you’re really hoping to have a little holiday cheer while you sell your home, know that you can. The key is moderation. Here are some great tips for adding a touch of the season to your staged home.

Play up the fireplace mantel

Does your home have a fireplace? That’s a great selling feature. And there’s no better time to draw attention to it than during the holiday season. Drape some holiday greenery, hang some tasteful and simple stockings, and add a few candles. Your holiday mantel can instantly add coziness and warmth that can charm potential buyers.

Set a holiday table

Demonstrate to prospective buyers how great your home can be for entertaining by setting a beautiful table. During the holidays, you can set the table with classic holiday settings. Show them how perfect it will be to host Thanksgiving or Christmas dinner in their new place.

Go easy on the tree

Christmas trees can certainly show off your home – especially if you have high ceilings. A tall tree can accentuate that feeling of space. But be careful about having a tree that is too wide. A wide tree can take up quite a bit of floor space and make a room feel cramped. If you put up a tree, choose one that is narrow.

Hand out festive treats

There’s nothing like having some tasty drinks and snacks on hand during an open house. When you host one during the holiday season, you can capitalize on all the delicious and beautiful treats that are available. Set out a bowl of candy canes, bake sugar cookies, and simmer cider on the stove or in a slow cooker.

Keep exterior decorations simple

Nothing beats a traditional holiday wreath to add elegant charm to your front porch. Simple white lights framing the door and electric candles in the windows will make your home cozy and inviting, especially on cold, dark days. But keep other types of decorations to a minimum, or save them for next year. While you may love that 10-foot tall inflatable Santa complete with reindeer, it might not be everybody else’s cup of tea.

Commit to a color palette

An important consideration to keep in mind when using holiday decorations in your staging is to match your existing décor. If your home has a neutral palette, then stay within that same color range with your holiday decorations. Choose white or ivory decorations with gold accents to add some cheer and still keep it classy. The same goes for your Christmas tree decorations. Choose ornaments, lights and tinsel that coordinate with your home’s décor, which will help unify the whole space.

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Replacing the windows on your home is a big job that can potentially come with a high price tag. If your windows are starting to show their age, you may be trying to decide whether or not it’s time to make the investment in new ones. Here’s what you should be looking out for and considering when it comes to window replacement as per security screen sunshine coast.

Consider repairs

If your windows are drafty, won’t open, or won’t stay open, you may be able to get by with some repairs. Broken glass can be replaced, and windows that are painted shut can be freed up. And of course, peeling or chipping paint can be refinished to look like new. If you have a historic home with beautiful windows, it may be worth investing in repairs to maintain the character of your home. Original wood windows are an appealing architectural detail of many older homes. It could be worth the repair costs to have them refinished instead of replaced.

When to replace

If you don’t live in a historic home and are having problems with your windows, it may be time to replace them. If the window sash or frame is broken, damaged or warped, a new window installation may be your best option. Do your windows fog between the glass panes, or is the wood around the window rotting? Are they impossible to open and even harder to keep clean? These could all be indications that it’s time for new windows, to learn more from experts check their office in Dallas at the link.

Make efficiency upgrades

Some homeowners may decide to replace their windows in order to make the home more energy efficient. Older, single pane windows don’t protect as much against the elements, especially if there are cracks or leaks. In fact, drafty windows can cause your energy bills to be up to 25 percent higher in the colder months. New windows are designed to be much more energy efficient than older models. And if you’re preparing to sell your home, energy efficient home window installation could be a big selling point. If you’re unsure whether or not you should replace your windows before listing your home for sale, talk with your agent.

Think about the cost

One of the biggest factors in determining whether or not to repair or replace your windows is, of course, cost. While the cost of the new windows will be largely determined by what type you purchase and whether or not they include green features, you can expect to send at least a few thousand dollars. Standard windows generally cost approximately $600 per window. With upgrades, you can expect that figure to be closer to $1,000 – or more. A typical single-family home has about 10 windows, so you can expect to pay up to $10,000 or more to replace all the windows on your home. The best way to estimate the cost is to use a residential window replacement cost calculator.

The bottom line

In the end, you’ll need to examine your current windows, crunch the numbers and decide whether or not it’s time to replace them. By having the facts in hand and knowing what to expect, you can make a more informed decision that you’ll feel comfortable with.

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Buying a home and starting a family often go hand in hand. But if you’re preparing to apply for a mortgage while you’re on maternity leave, it may impact your ability to qualify. Here’s what you need to prepare for should you decide to purchase a new home while you’re taking time off to have a baby.

Is your income needed for pre-approval?

Do you need your current income to be factored into the pre-approval for your mortgage? Then you’ll need to take this into consideration when it comes to timing your home purchase. If you will not be receiving income during your maternity leave, then that will impact your ability to qualify for the loan. If possible, you should be working during the approval and closing process, to avoid potential problems.

Be prepared for extra paperwork

If you will be collecting income during your maternity leave, you’ll likely be eligible but will need to jump through more hoops. Lenders use your salary information to determine how much of a loan you qualify for. During your maternity leave, those figures will often be different, which can give some lenders pause. The income you’re collecting is determined by a variety of sources, including short-term disability, paid time off and through guidelines established by the Family and Medical Leave Act.

Since maternity leave is considered a temporary leave in the mortgage industry, it can be a red flag for some lenders. You’ll likely be asked to supply additional paperwork to verify your income. This could include a letter from your employer that details when you were hired, your anticipated date of return and your current salary. Your mortgage application will not include any questions about your pregnancy, so you should be upfront with your lender. They can help you understand what kind of documentation you’ll need and how best to go about securing a loan. If you’re experiencing fertility issues and are seeking assistance, companies like Sher Fertility Solutions can provide you with the support and guidance you need to start or expand your family while navigating the mortgage process.

If you’re experiencing an unintended pregnancy and would like to learn more about your options, navigate to this website for information on abortion education and resources.

Know the law

It is important to understand that being pregnant is not a legal basis for a lender to deny a loan. While you do need to have verifiable income, you cannot be denied the loan simply because you are expecting a child. It is against the law for lenders to discriminate based on your family status, which was established in 1968 with the Fair Housing Act.  If you feel you have been denied a loan based on your pregnancy, there are steps you can take. Contact HUD (U.S. Department of Housing and Urban Development) and file a complaint with the Consumer Financial Protection Bureau. If you feel you have been fired due to your pregnancy or gender, retaliation lawyer Los Angeles is the attorney you can rely on for that.

Buy what you can afford

Having a baby and buying a home are both life-changing experiences. Completing both at the same time can be both challenging and rewarding. It can be tempting to splurge on that dream home to celebrate your baby’s arrival. But keep in mind how having a new family member is going to change your financial situation. Make sure you are purchasing a home that you can reasonably afford, given the new expenses you are about to encounter.

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Receiving cash to use towards the down payment for your house is a generous gift. Especially considering that some loans require you to pay at least 20 percent of the purchase price as a down payment. But there are certain requirements that must be met when using a cash gift towards your deposit. Here’s what you need to know.

Who can give the gift?

Lenders tend to be restrictive when it comes to allowing cash gifts to be applied to a down payment. The gift can’t come from just anyone. In most cases, the money must come from a relative – usually a parent, grandparent or sibling. You may also receive a gift from your spouse or the person to whom you are engaged. If you’re applying for an FHA loan, you’ll have a little more leeway. For these loans, your gift can come from an employer, labor union, close friend or even a nonprofit.

You’ll need a gift letter

In order for the gift money to qualify, it must be properly documented. The first step is to write a gift letter. The letter should outline the amount of the gift, the relationship between parties and the property address. It should also state that the money is a gift and not a loan that will need to be repaid.

Receiving the gift

Once the gift letter has been written, you’re not done yet. You can’t simply deposit the money in your bank account and call it a day. You need to create a paper trail to show where the money came from. Write a check for the exact amount of the gift and make photocopies. The check should then be deposited in person into the account that will be used for closing. Make sure to get a receipt for the deposit, and do not deposit any other money at the same time.

You may also be required to show additional documentation about where the gift money came from. This can include copies of the donor’s bank statements or even documents from the sale of stocks and funds transfer from a brokerage account to another account. When in doubt, save the paperwork.

If possible, try to get the gift money as early as you can. If you can secure the gift money while you’re still in the planning stages, you won’t need as much paperwork down the line as you would with a last-minute gift.

Gift taxes do apply

Once the check is written and the funds deposited, you’re still not done. Be aware that there may be taxes due for the money that was gifted. The donor generally pays these taxes, although both parties can agree to have the tax paid by the recipient instead. Talk with your accountant about what the current monetary thresholds are for incurring taxes and how your gift may affect your tax liability for the year.

If you’re the recipient of a cash gift for your down payment, congratulations! It’s a great way for loved ones to help with your home purchase, particularly if you’re a first time homebuyer. Follow the steps outlined above to ensure that you’ll have no problems using your cash gift come closing day.

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The nights are getting longer, temperatures are dropping and the holidays are approaching. That means you should wait to list your home for sale until next year, right? That isn’t necessarily true. While spring and summer tend to be the hottest seasons in the real estate market, there are arguments to be made in favor of selling in winter.

Buyers are motivated

It’s not uncommon for people to relocate for work at the beginning of the year. That means those folks will be looking for a place to live. Since they’ll need to be in a new location by a specific date, they’re more motivated to buy a home. In winter, you’ll get fewer people who are “just looking” and more who are serious about a home purchase.

Buyers have more free time

Chances are the buyers who are looking at homes in winter will also have more free time to browse. Since many people take time off over the holidays, they’ll often use it to do their home searching.

Less competition

Some home sellers aren’t locked into a timeframe. They’ll be more likely to postpone their listing until the holidays are over and schedules are less hectic. With fewer homes on the market, there’s less competition for those motivated buyers you’ll see in winter.

Your home will look cozy

It’s easier in the colder months to make your home look cozy and inviting to potential buyers. Build a fire in the fireplace, ensure that your heating system is serviced by a local hvac contractor from a provider like Hargrove-Neel, and light some candles around your home. There’s nothing quite like the soft glow of the fire to make a home feel and look warm and appealing. If you have a furnace, you may hire a residential furnace repair contractor to inspect and repair it before showing your home to potential buyers.

Curb appeal is easier

Unless you live in a climate that is temperate year round, you won’t need to go out of your way to plant flowers and create curb appeal. Just make sure the driveway and walkways are clear and clean the yard of fallen leaves and other debris. Consider hanging some twinkle lights and a simple, tasteful wreath on your front door.

Timing is better

If you’re a seller who will also need to be buying a home in a new location, the timing can work in your favor. By listing and selling in the winter, you’re free to begin your home search in early spring without the stress of trying to sell at the same time.

More agent attention

Winter is generally a slower time, even in an active market. Chances are your real estate agent won’t be as busy as they are at other times of the year. This means less stress for them and more time to focus on finding you the right buyers. The same holds true for mortgage brokers and anyone else involved in the closing process. You’re more likely to have a relaxed closing day than if you were to sell in the middle of summer.

Don’t let “conventional wisdom” keep you from listing your house in the winter or during the holiday season. Now can be the perfect time to sell!

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Are you house hunting in a competitive market and having no luck finding a home? Did you find your perfect home – but it’s not for sale? Then you may be wondering if you can try to buy a home that doesn’t have a “for sale” sign in the front yard.

While trying to buy a home that isn’t currently listed is an option, it has its challenges. Here’s what to do if you really want to buy a home that isn’t for sale.

Finding the perfect home

Some homeowners will be more open to offers than others, so it’s best to tailor your search to reach those who may be receptive. There are a couple of ways you can do this.

The first is to find expired listings or listings that were taken off the market. There could be a variety of reasons why the listing was removed or the home didn’t sell. Perhaps the sellers wanted to work with a different agent, or they weren’t getting the offers they had expected. Whatever the reason, these homeowners might be responsive to your offer.

Secondly, drive around the neighborhood where you would like to buy and make a list of homes that are appealing to you. Then search for those properties online and find out how long the current owners have lived there. If the sale is recently new, chances are the owners aren’t ready to sell. But if they’ve lived in the home for five or more years, it could be worth reaching out to them to see if they would entertain your offer.

Making an offer

Once you’ve found a home you’d like to buy, the next step is to make an offer to the owners. Showing up unannounced on their doorstep with an offer probably isn’t going to win you any points. The best way to reach out is to write a letter.

Work with your agent to craft a specialized offer, and explain to the owner why you would like to buy their home. It’s possible that the owners receive letters like this regularly, especially in an active market, so you need to make yours stand out. Don’t be afraid to be personal, and appeal to them on an emotional level. However – do be aware that you don’t want to get stuck with a home that has major issues not apparent from the street. Your offer should contain an appraisal contingency, so you’re not paying more than what the home is worth.

Be ready for rejection

Ultimately, most of your offers will go unread, or the owners will not respond. Be patient and remember that people can be emotionally tied to their homes. And often they weren’t expecting an offer. They will respond in their own way and in their own time.

While trying to buy a house that isn’t for sale can be a long process that comes with its fair share of disappointment, don’t write it off as an option. You never know who will say yes, and that home you’ve always dreamed about becomes your reality.

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