How to Make the Most of a Seller's Market

All signs point to plenty of buyers looking to sell homes, but most areas of Cincinnati are seeing low inventory. Homes are going pending quickly, especially the best ones in "move-in ready" condition. If you've been thinking about selling your home, this may be a great time to get a custom market evaluation from me to learn what your home might sell for and how to best prepare your home to sell.

The most successful buyers have thoroughly researched their financing options and are ready to make an offer quickly after seeing a home. Most sellers will not accept an offer that does not have a solid mortgage pre-approval letter, or proof of cash funds. So, if you are thinking about buying and you have not yet started the pre-approval process, it's time to get on that! I have some recommended lenders for you on the Helpful Info tab above. If you are worried about affording a home, be sure to ask about available grant programs which offer money toward your down payment and/or closing costs. And if you want to buy but also have a home to sell, I can help you estimate appropriate timelines for marketing your home and finding the next one!

How Do I Change Utilities?

There's so much going on when you're buying or selling a home -- even more if you're doing both at the same time -- that it's easy to forget the details. Changing over the utilities is a fairly important detail, though: can you imagine moving into your new home, only to realize that the power has been turned off?  The general rule of thumb in Cincinnati is that the seller should contact the utility companies at least one week before closing to allow time for final readings to be scheduled. The buyer should also contact the utility companies during this time to set up their accounts; if you haven't had a previous account in good standing with any of these companies, you may need to provide additional information which can take a few more days.

You can also ask some utility companies about the average bill for an address when you're deciding whether to make an offer on a property. Usage is different for everyone, but chances are a very high number means that there is room for improvement in the efficiency of the home. Finally, television and internet service can vary by street rather than municipality, so you'll need to Google those options!

What Is TRID, And Why Should I Care?

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Have you bought or sold a home in the last forty years? Aside from interest rates and loan products, not much has changed in the home-buying process during that time. But some important changes are on their way, thanks to the Consumer Financial Protection Bureau (CFPB). They're called the Truth in Lending Act (TILA) - Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure, or TRID for short...because there weren't enough acronyms already.

To download a handy booklet that covers everything a consumer would need to know about TRID, head over to the CFPB website and look for the "Your Home Loan Toolkit" PDF brochure. I'll go over the highlights for you:

• Today, many real estate contracts request a closing date 30 days out. When TRID goes into effect on October 3rd, lenders and title companies are recommending that you allow an extra week or two on the contract to ensure compliance with new government mandated waiting periods that are designed to allow consumers adequate time to review loan information prior to closing.
• As a buyer, you'll probably be asked by your lender to sign documents electronically since that will be the most practical way to comply with the new laws.
• The preapproval process remains unchanged, for the most part. Although lenders are now prohibited from requiring income information to provide a Loan Estimate (LE), a smart buyer should know that the most solid loan preapproval will be based on that income information. So make sure you're being open with your loan officer!
• Sometimes under the current laws, the loan is processed well before the closing date, and you get to close early! That's going to be pretty unlikely under the new rules, because the closing date determines some of the information on the Closing Disclosure (CD) and the lender needs to provide the CD to the borrower no later than 3 days prior to closing (including Saturdays for some lenders, excluding Sundays and federal holidays for all lenders).

While there is a lot more to say about TRID, very little of it will be seen by the average consumer. My advice is to make sure you're ready to act quickly once you've chosen a home: provide all the details to your loan officer, get an estimate on homeowner's insurance, and make sure your Realtor is communicating with the lender and the title company on a regular basis.

Something Will Always Go Wrong

It may be an upside-down electrical outlet, last second title issues, or an incorrect item on your HUD-1 settlement statement, but at some point when you're buying or selling a home there will be a problem. When it happens, even if you're tempted to think that the sky is falling, take a deep breath and remember: if buying and selling a home was easy, no one would ever complain about it.

Preparing your response to the issue that may or may not resemble a wrecking ball to your plans takes some guidance, hopefully from your awesome Realtor. First, determine how important the issue is -- not in principle, but in fact. Is it important enough to walk away from the sale? To delay closing until it's rectified? To aggravate the other party further? If you are considering anything else, such as what your mother will say (if you tell her) or your pride, just stop. That's not helping anyone. You have signed a legal contract. If you're considering doing anything to change the terms of that contract or delay its execution, there can be expensive consequences.

Next, brainstorm possible solutions to the problem that would make you more comfortable with the situation, and consider how the other party might respond to each one. Focus on reasonable and quick solutions that won't 1) send a loan back to underwriting, or 2) alienate the other party to such an extent that they refuse to work with you. Did the seller not fix something that was agreed upon in the contract? Offer to send your own contractor, or have the repair funds held in escrow by the closing agent until the work is done.

Remember, nothing is final until all parties have signed the paperwork. If you have a serious issue in your real estate transaction, talk to your Realtor and a real estate attorney if necessary to understand all the options. There is nearly always a solution, and it's our job to help you find it.