HOME BUYERS & SELLERS GUIDE

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Table of Contents

- Rent or Own?

Home Buyers- Finding and Using a Realtor

- Reasons to Buy a Home Now

- What Should You Buy

- Tax Benefits of Home Ownership

- Home Appraisals - Before You Buy

- How to Use Your Smartphone to Find Your Dreamhome

- House Hunters Checklist

Home Sellers- Finding and Using a Realtor

- Preparing Your Home to Sell

- 10 Best Home Improvements and Low Cost Construction Tips

- Showing Your Home

- 10 Mistakes that Could Ruin Your Open House

- Real Estate Definitions

- Moving Checklist

Housing is often the largest of the four major personal expenditures (housing, food, transportation, and insurance). In most spending plans, it accounts for one-third of a person’s income each month. When searching for housing options, a person must decide whether to rent or purchase a place to live. Deciding whether to rent or own requires education, exploration, and distinct separation of emotion from this difficult financial decision. Before choosing a place to live, calculate how much can be afforded for housing expenses according to income, debts, and other expenses listed in one’s personal budget. Next, research must be done to help decide whether renting or buying makes the most sense.

Reasons for Making a Housing Choice:• Personal and financial goals.• Personal values, needs, and wants.• Amount of money available for housing costs.• Financial resources and readiness.• Credit history.• Real estate prices.• Location preference.• Expected length of stay in a particular place.

Renting - Comparison of Expenses:• Monthly rent.• Security deposit.• Utilities – electricity, water, garbage, etc.• Renter’s insurance.

Owning - Monthly mortgage payments• Down payment (one time cost).• Closing costs (one time cost).• Utilities – electricity, water, garbage, etc.• Homeowner’s insurance.• Real estate property taxes.• Maintenance.

The chart to the right shows a cost comparison for a renter and a homeowner over a 7 year period. The renter starts out paying $800 per month with annual increases of 5%

The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment. With the tax savings of homeownership, the homeowner's payment is less

than the rental payment after 3 years. Source: Ginnie Mae

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Rent or Own?

RentingRent is the cost of using someone else’s property. A tenant, or renter, is a person who rents the property. The owner of the rental property is the landlord. The landlord may act as a property manager or hire an agent to perform the management duties. A property manager’s duties may include collecting rent and deposits, paying utility bills, performing repairs and maintenance, watching over the property, responding to tenant complaints, assigning new tenants, etc. When moving into a new place, people are usually required to pay a security deposit and sign a lease. A security deposit is an advance payment to cover anything beyond normal wear and tear on the unit. A lease is a legal contract between the tenant and the landlord specifying the responsibilities and rights of both parties. Lease agreements identify the rent amount, security deposit amount and details on items such as: payment for utility bills, late payment penalties, length of lease and eviction terms.

Advantages of renting include: • Low move-in costs and easy to move. • Fixed monthly expenses. • Less maintenance and repair work and fewer responsibilities. • May offer extra amenities such as a tennis court or pool. • Typically less expensive than home ownership. • May be able to save for other needs if renting a less expensive apartment. • Other expenses may be included in rent payment including electricity, water, sewer, and/or garbage.

Disadvantages of renting include: • Subject to terms of a lease.• Rent may change with little notice. • Less privacy and transient neighbors. • Restrictions on noise level and/or pets.

OwningHome ownership is a goal of many Americans and is something many individuals consider to be an indication of the “American Dream.” Home ownership shelters hard-earned dollars from taxation, provides a hedge against inflation, builds wealth, and helps to provide security in retirement. Approximately two out of three American families own the homes in which they live. Home ownership can be a source of great pride to many people.

The decision to purchase a home should not be taken lightly. With so much at stake, it is essential to perform research before buying a home. To purchase real estate, many people apply for a mortgage. A mortgage is a home loan in which the real estate is the collateral. Collateral is an item promised to the lender if the borrower does not pay back the loan. Collateral is usually the item that was purchased with the borrowed funds. 90% of buyers use a mortgage to purchase a home. The three main components to a mortgage are the amount borrowed, the interest rate, and the length of the loan. The amount of money borrowed for the loan depends on the size of the down payment and the price of the home. The recommended purchase price an individual should pay for a home is 2 ½ times their annual household income. A down payment is the amount of money paid on the home at the time of purchase. The larger the down payment, the smaller the amount borrowed which lowers the monthly payment. A down payment is typically 10 – 20% of the purchase price of the home. The interest rate of the loan will fluctuate according to state of the U.S. economy. The typical length of a loan is thirty years, but this may vary.

Advantages of home ownership include:• Build equity which can be borrowed against if necessary.• Pride of ownership. • Feel more comfortable and have more privacy.• Stable mortgage payments. • More room and storage. • Improvement of buyer’s credit rating.• Income tax deductions for property taxes and mortgage interest. • Property may increase in value.• Free to make home improvements and have pets.

Disadvantages of home ownership: • Large down payment. • Move-in costs.• Insurance costs. • Possible for property to decrease in value.• Time, money, and energy commitment.• Repair and maintenance costs. • Property taxes can raise substantially. • Money is tied up in the home.• May take several months to sell a home if trying to relocate.

Home Buyers

Finding And Using A Realtor®Since the commission for the sale of a house is almost always paid for by the seller, buyers are able to get assistance and information from Realtors®, usually at no cost to them. It is for this reason that the vast majority of home buyers employ the services of a Realtor® for their purchase. In addition, since most houses are listed by Real Estate Agencies, it gives them the maximum number of available properties to consider.

The relationship between a home buyer and a their Realtor® is a little like a marriage: it must be based on trust, mutual goals (to get you the house that best suits your needs!) and understanding. To a large degree, the home buyer entrusts the Realtor® to always keep their (the buyer's) interest first and foremost. It is important that you understand who the Realtor® with whom you are working represents.

What to Look for in a Realtor®

- An understanding of your needs.

- A willingness to work with you until your needs are fulfilled.

- A sense of professionalism.

- Someone who is dedicated to their profession.

- A familiarity with the area in which you have an interest.

- A familiarity with the price range in which you have an interest.

- Professional designations: ie, GRI--Graduate of the REALTORS® Institute, or CRS--Certified Residential Specialist.

- Strong references from previous buyers.

Questions to Ask a Prospective Realtor®

- Are you familiar with the area in which we want to look?

- How many home sales did you participate in last year?

- Are you a full time REALTOR®?

- How many buyers are you presently working with?

- How many sellers are you presently working with?

- How long have you been in Real Estate?

- Do you normally work with sellers or buyers?

- What 3 buyers can you give me as references?

- Where do you feel your strengths lie?

The 3 Best Reasons to Buy a Homein 2018 (but You'd Better Hurry)

By Holly Amaya | Jan 4, 2018

Figuring out when to plunge into the real estate market can be quite intimidatingespecially when prices are high, choices are limited, and history urges restraint.

"We’ve seen two or three years of what could be considered unsustainable levelsof price appreciation, as well as an inventory shortage that resulted in a record-low number of homes for sale across the country," says Javier Vivas, director ofeconomic research for realtor.com®. "When you factor those together, you havea market that has to either explode or see some relief."

Comforting, right? Well, take heart: Experts agree that relief is indeed on thehorizon.New predictions for 2018 forecast more moderate gains in home pricesand rising inventory levels, while low unemployment and record levels of consumer confidence mean more buyers are feeling good about their finances.

A lot depends on where you live (and how much you plan to finance), but thesefactors combined could mean 2018 will be your year to take the buying plunge.

1. Rates are going upAfter years of record-low interest rates (hello, 3%!), the Fed is finally makingsome noticeable increases: The rate for a 30-year fixed mortgage broke the 4%mark last year. And with economic growth continuing to carry momentum,Vivas predicts we'll see at least two to four more rate increases throughout 2018.Rates are anticipated to hit 5% by the end of the year.

"The big story there is that those increases will further constrict affordability,"Vivas says. "The more buyers wait, the more expensive it will get to buy—notjust because of home prices, but because of inflationary pressure."

In other words, if you want in on the American dream, now might be the time.

2. Prices are climbing, but not crazily fastHome prices have soared over the past few years, pricing otherwise wellpositioned buyers out of high-cost areas and leading some experts to cry"bubble". But in 2018, price increases are expected to moderate.

Vivas forecasts a home price increase of 3.2% year over year, after finishing 2017with a 5.5% year-over-year increase. Existing-home sale prices are predicted toincrease 2.5% year over year.

Of course, it all depends on where you live. While red-hot markets such as SanFrancisco are predicted to finally lose some steam, sales numbers and homeprices are poised to climb in Southern states such as Texas and Florida, whereeconomic momentum continues chugging along and new construction is hap-pening in the right price points.

So what does that mean? Basically, home prices will still increase, but not at thesame pace as they have over the past few years.

3. Inventory levels will begin to increaseAn inventory shortage has plagued the U.S. housing market since 2015, forcingsome buyers to settle (a tiny house with linoleum floors for $1 million, anyone?)and keeping others out of the buying game entirely. But by fall 2018, the tideswill begin to turn, with markets such as Boston; Detroit; and Nashville, TN, re-covering first.

The majority of inventory growth will happen in the middle- to upper-tier pricepoint, in the ranges of $350,000 and $750,000 and above $750,000, Vivas predicts.

New home construction is also expected to expand. But that will happen slowly,thanks to a constricted labor market, limitations on the amount of lots and landthat's available, tight bank financing for building loans, and a run-up in buildingmaterial prices, says National Association of Home Builders chief economistRobert Dietz.

"It's been a slow climb back from the recession, and now we're confronting allof these limiting factors and supply-side constraints," Dietz says.

It's particularly tough, he says, for builders to break ground at the entry levelfor first-time buyers, particularity in high-cost coastal markets such as California.That means it will take longer for those inventory levels to recover. But there'sa bright spot: Builder confidence is at its highest level since 1999, according tothe NAHB. And that means hope is on the horizon.

"As we head into 2019 and beyond, we expect to see the inventory increasestake hold and provide relief for first-timers and drive sales growth," Vivas says.

The wildcard: Taxes and politicsWhen the Republican tax plan was introduced, the proposed elimination of themortgage interest deduction was all anyone could talk about: While the newlimitations on the deduction will affect only 2.5% of all existing mortgages inthe U.S., it will have a disproportionate effect on Western markets, where 20%to 30% of mortgages are above the new threshold, according to Vivas.

Across the board, experts agree that the new tax plan decreases incentives forhomeownership and reduces the tax benefits of owning a home—particularlyin highly taxed, expensive markets such as California, Illinois, New York, andNew Jersey. But on the flip side, that means that if fewer folks are motivated tobuy, then there’s less competition for those who want in the game. Plus, sometaxpayers—including renters—will see a tax cut. That increase in buyers' disposableincome could spur demand from folks who are looking to build equity as ahomeowner, rather than flushing away their savings in rent.

"Buying remains the more attractive option in the long term—that remains theAmerican dream, and it’s true in many markets where renting has become reallythe shortsighted option," Vivas says. "As people get more savings in their pocket,buying becomes the better option."

https://www.realtor.com/advice/buy/reasons-to-buy-a-home-in-2018/

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What Should You Buy?Your Current and Future NeedsBefore you start searching for a home, you need to think about your needs both now and in the future. Here are some things to consider:

* Size requirements. Do you need several bedrooms, more than one bathroom, space for a home office, a two-car garage?

* Special features. Do you want air conditioning, storage or hobby space, a fireplace, a swimming pool? Do you have family members with special needs?

* Lifestyles and stages. Do you plan to have children? Do you have teenagers who will be moving away soon? Are you close to retirement?

Try to buy a home that meets most of your needs for the next 5 to 10 years, or find a home that can grow and change with your needs.

Choosing a Location That Is Right for YouEven if the home you choose has everything you need, the location might not be appropriate. When deciding where to live, you should take the following things into consideration:

* Whether you want to live in a city, a town or even in an out-of-town location.

* Where you work and how easy it is to commute

* Where your children will attend school and how they will get there.

* Whether you need a safe walking area or recreational facilities nearby.

* How close you would like to be to family and friends.

New Home, Previously Owned or Build Your Own?

When thinking about the kind of home you want, the first thing you should consider is whether you want a previously owned home (often called a resale) or a new home. Here are some characteristics that may help you decide:

New Home* Personalized choices. You may be able to upgrade or choose certain items such as siding, flooring, cabinets, plumbing and electrical fixtures.

* Up-to-date with the latest codes/standards. The latest building codes, electrical and energy-efficiency standards will be applied.

* Maintenance costs. Lower maintenance costs because everything is new and many items are covered by a warranty.

* Builder warranty. A homebuilder's warranty is usually available. This can be important if a major system such as plumbing or heating breaks down. This warranty does not apply if you build the home yourself.

* Neighborhood amenities like schools, shopping malls and other services may not be complete for years.

* Extra costs. You may have to pay extra if you want to add a fireplace, plant trees and sod, or pave your driveway. Make sure you know exactly what's included in the price of your home.

Resale Home* Easy access to services. Probably established in a Neighborhood with schools, shopping malls and other services.

* Landscaping is usually done and fencing installed. Previously owned homes may have extras like fireplaces or finished basements or swimming pools.

* Possible redecorating and renovations. You may need to redecorate, renovate or do major repairs such as replacing the roof, windows and doors.

Building Your Own HomeSomepeople prefer the challenge and flexibility of building their own home. On one hand you can get exactly what you want in terms of size, design, location, quality of material, level of energy-efficiency, etc. However, you should expect to invest lots of time and energy.

1. Mortgage Interest Interest that you pay on your mortgage is tax deductible, within limits. If you're married and filing jointly, you can deduct all your interest payments ona maximum of $1 million in mortgage debt secured by a first or second home. The maximums are halved for married taxpayers filing separately.You can't use the $1million deduction if you pay cash for your home and later use it as collateral for an equity loan.

If your lender required you to buy PMI (private mortgage insurance, often required when the loan is for more than 80% of the home's purchase price), the PMIpremiums are tax-deductible for mortgages taken out in 2007 through 2011. However, the amount of the deduction depends on your income -- if your householdearnings are over $100,000 per year, the deduction starts to phase out.

2. Points Your mortgage lender will charge you a variety of fees, one of which is called "points." One point is equal to 1% of the loan principal. One to three points arecommon on home loans, which can easily add up to thousands of dollars. You can fully deduct points associated with a home purchase mortgage. Refinanced mortgagepoints are also deductible, but only over the life of the loan, not all at once. Homeowners who refinance can immediately write off the balance of the old points and beginto amortize the new.

3. Equity Loan Interest You may be able to deduct some of the interest you pay on a home equity loan or line of credit. However, the IRS places a limit on the amountof debt you can treat as "home equity" for this deduction. Your total is limited to the smaller of: $100,000 (or $50,000 for each member of a married couple if they fileseparately), or the total of your home's fair market value -- that is, what you'd get for your house on the open market -- minus certain other outstanding debts against it.

4. Home Improvement Loan Interest If you take out a loan to make substantial home improvements, you can deduct the interest, with no dollar limit. However,the work must be a "capital improvement" rather than ordinary repairs.

Qualifying capital improvements are those that increase your home's value, prolong its life, or adapt it to new uses. For example, qualifying improvements might includeadding a new roof, fence, swimming pool, garage, porch, built-in appliances, insulation, heating/cooling systems, landscaping, or more. (Keep in mind that increasingthe square footage of your home could trigger a reassessment and higher property taxes, though.) Work that doesn't qualify for an interest deduction includes re-painting, plastering, wallpapering, replacing broken tiles, patching your roof, repairing broken windows, and fixing minor leaks. You might want to wait until you'reabout to sell to do such work, in order to gain the maximum tax benefits.

5. Property Taxes Often referred to as "real estate taxes," property taxes are fully deductible from your income. If you have an impound or escrow account, you can'tdeduct escrow money held for property taxes until themoney is actually used to pay your property taxes. And a city or state property tax refund reduces your federaldeduction by a like amount.

6. Home Office Deduction If you use a portion of your home exclusively for business purposes, you may be able to deduct home costs related to that portion, suchas a percentage of your insurance and repair costs, and depreciation.

7. Selling Costs If you decide to sell your home, you'll be able to reduce your taxable capital gain by the amount of your selling costs. Real estate broker's commissions,title insurance, legal fees, advertising costs, administrative costs, and inspection fees are all considered selling costs. All selling costs are deducted from your gain.Your gain is your home's selling price, minus deductible closing costs, selling costs, and your tax basis in the property. (Your basis is the original purchase price, plusthe cost of capital improvements, minus any depreciation.)

8. Capital Gains Exclusion Married taxpayers who file jointly now get to keep, tax free, up to $500,000 in profit on the sale of a home used as a principal residencefor two of the prior five years. Single folks (including home co-owners if they separately qualify) and married taxpayers who file separately get to keep up to $250,000each, tax free.

9. Moving Costs If you move because you got a new job, you may be able to deduct some of your moving costs. To qualify for these deductions you must meet severalIRS requirements, including that your new job must be at least 50 miles farther from your old home than your old job was. Moving cost deductions can include travelor transportation costs, expenses for lodging, and fees for storing your household goods.

10. Mortgage Tax Credit A home-buying program called mortgage credit certificate (MCC) allows low-income, first-time homebuyers to benefit from a mortgageinterest tax credit of up to 20% of the mortgage interest payments made on a home (the amount of the credit varies by jurisdiction). The maximum credit is $2,000per year if the certificate credit rate is over 20%. (See IRS Publication 530.) You must first apply to your state or local government for an actual certificate. This creditis available each year you keep the loan and live in the house purchased with the certificate. The credit is subtracted, dollar for dollar, from the income tax owed.

Real Estate Deduction InformationFor more information on real estate tax laws, visit www.irs.gov. You'll find basic information for first-time homeowners (IRS Publication 530) and publications aboutselling your house (IRS Publication 523), business use of your home (Publication 587), moving expenses (Publication 521), and home mortgage interest deductions(Publication 936).

Tax Benefits to Home Ownership

Before You Buy: 4 Questions About Home Appraisals

When you go to buy a home, your mortgage lender will want to know whether the house you are interested in buying is worth the amount you are willing to spend. They need to check out the house for anything that can

devalue or increase the property’s worth. To do this, they require home appraisals for all borrowers

What is an Appraisal?A property appraisal is an estimate of a property’s value. Property value is based on such factors as location, amenities, structural condition and recent sales of similar local properties.

A home appraiser conducts the process. The appraiser will do a walk-through of the property, noting anything that can alter the home’s value. For example, if the house has a swimming pool but swimming pools aren’t popular in the area, it might not add much value to the property—the pool might even detract from it.

The appraiser will sketch and take photos of the property layout and will look for any safety code violations. If there are any, you may need to fix them before the lender approves the loan.

Appraisals may be required for any type of property, including single-family homes, apartment buildings and condominiums, office buildings, shopping centers, industrial sites, and farms. The reasons for performing a real property appraisal are just as varied. They are usually required whenever real property issold, mortgaged, taxed, insured, or developed. For example, appraisals are prepared for:

-Mortgage lending purposes-Tax assessments and appeals of assessments-Negotiation between buyers and sellers-Government acquisition of private property for public use-Business mergers or dissolutions-Lease negotiations

Who Performs Home Appraisals?Appraisers are third-party certified or licensed contractors, and the lender usually hires them. They are knowledgeable in real estate and are required to know how to evaluate a property on factors such as neighborhood growth, housing trends and market conditions

To be safe, make sure the appraiser is certified and deals with multiple lenders. If the appraiser only works with one other lender, he may have outside interests—and you may not receive a correct assessment.

Who Pays for Home Appraisals?The cost of home appraisals depends on the property value, location, and size of your property. They cost a few hundred dollars and typically the buyer pays the fee at closing, although you can opt to pay it up-front. A good faith estimate—also known as a GFE—given to you by the lender will supply a fee for the appraisal.

A “drive-by appraisal” does not pay as much attention to detail as the walk-through, and most lenders will not accept this appraisal. Instead of walking through the home, the appraiser drives by the property and then researches real estate records to come up with an estimate.

These home appraisals are cheaper than traditional ones, but you should ask your lender if they will consider it before you purchase.

How Long Do Home Appraisals Take?For most loans, a typical property assessment takes a few hours or less, and a “drive-by” assessment will take significantly less time. Turnaround time should be within seven business days, although a busy market can mean a longer wait.

The appraiser will give the final documents, called the appraisal report, to the lender, who is required to show it to the buyer. Make sure you obtain a copy for your own records.

Information samled from realtor.comand MortgageMatch.com.

What is the Role of the Appraiser?

The role of the appraiser is to provide objective, impartial, and

unbiased opinions about the value of real property—

providing assistance to those who own, manage, sell, invest in, and/or lend money on the security of real

estate. Appraisers assemble a series of facts, statistics, and other

information regarding specific properties, analyze this data, and

develop opinions of value.

What Qualifications Must Appraisers Have?

All states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. Some states

require appraisers to be licensed or certified to provide appraisals for other parties as well. To become

licensed or certified, you must pass an examination that is administered

by your state’s appraisal board.

Buying a house, particularly if it is your first, can be a

daunting task. Between finding the perfect place,

securing financing and moving in, it can seem like there

are a ton of steps standing between you and your

dream home. Fortunately, technology has made the

process of finding a home a whole lot easier. Your

smartphone is probably your single best tool as you hunt

for a new place to live, and a few apps can make all the

difference between finding a new house and coming up

empty. Here are some of the top apps for homebuyers.

What’s On the Market

Before you hit the streets in the great hunt for your dream

home, quickly scan what’s out there first on your phone. Apps

from Realtor.com, Trulia, and Zillow are invaluable resources,

compiling thousands of listings and putting all the homes in

your town at your fingertips. While digital house listings are

nothing new, being able to keep track of them on your phone

will ensure that you don’t miss a potential bargain as you

bounce from open house to open house all weekend long.

Check Out the Neighborhood

If your house hunt has led you to unfamiliar parts of town, fear

not. CrimeMapping’s app will allow you to quickly scope out the

neighborhood with the most recent crime stats, so you don’t

have to wonder whether that dream home is located in a

nightmare neighborhood. For an even more thorough lowdown

on your chosen neighborhood, get the EveryBlock app, which,

in addition to crime stats, also gives you local news, restaurant

reviews, events and a ton of other great data about what’s going

on around you on a block-by-block basis.

Get Your Finances in Order

Mortgage calculators are a dime a dozen. And while these apps

can give you a quick quote on how much a home will cost you in

the long run, they do little to put that figure into perspective.

Buying a home is the single largest purchase you’ll ever make,

radically reordering your finances. To make sure you’re not

getting in over your head, check out Mint’s financial app

(Android/iOS). It’s a full suite of financial tools, helping you

manage your mortgage, along with student loans, credit card

payments, investments and incidentals. The app’s genius is its

simplicity. Enter a bit of banking information and the app starts

tracking all your purchases and expenses, giving you a big

picture idea of where you money is going.

Before You Move In

Love the home that you just looked at but are unsure if all of

your furniture will fit? The Home 3D app can help you visualize

every room in a house, allowing you to move in your virtual

furniture before you’ve even made an offer. While the app is a

great way to figure out how to design and decorate a room, you

can also use it to visualize major renovation projects should you

set your sights on a fixer-upper.

Get to Know Your Neighbors

Once you’ve moved in, it’s time to get settled and meet the

neighbors. But getting involved in a community can be a bit

daunting when you are new and don’t know anyone.

NextDoor.com looks to solve this problem by creating social

networks based on your location. Before you know it, you’ll

know all your neighbors by name and they’ll be inviting you

over for a welcoming barbecue.

How to Use Your Smartphoneto Find Your Dreamhome

Address:

Price: $

Property Taxes: $

School:

# Square Foot:

# Bedrooms:

# Bathrooms:

Game Room: Yes No

Fireplace: Yes No

Other:

Other:

Other:

Good Fair Poor

Lot/Site

Location

Kitchen

Closets

Outside

Bathrooms

Appliances

Floors

Roof

HVAC

Overall Condition

1 2 3 4 5 6 7 8 9 10

Things I like Most:

Things I like Least:

Home Ranking:

1 2 3 4 5 6 7 8 9 10

House Hunters Checklist

www.austintitle.com

Address:

Price: $

Property Taxes: $

School:

# Square Foot:

# Bedrooms:

# Bathrooms:

Game Room: Yes No

Fireplace: Yes No

Other:

Other:

Other:

Good Fair Poor

Lot/Site

Location

Kitchen

Closets

Outside

Bathrooms

Appliances

Floors

Roof

HVAC

Overall Condition

1 2 3 4 5 6 7 8 9 10

Things I like Most:

Things I like Least:

Home Ranking:

1 2 3 4 5 6 7 8 9 10

Where Austin Closes

Home Sellers

Finding And Using A Realtor®Selling a property is not something you do every day so knowing what to look for in a realtor® isn't exactly an easy thing

to do. Interviewing realtorS® is similar to a job interview. The job description you're after should include the following: "A

person you like, who presents well, who genuinely likes your property, who you believe will act in your best interests and be

honest with you at all times and will work hard to get you the highest price possible". Picking the right person could easily

make a five percent or more difference in the final sale price so do your research and choose wisely.

Do Your Homework on Real Estate Companies• Pay attention to the quality of the companies website. Was it easy to find them and navigate through to view properties? Do they add descriptions which make you want to inspect their properties? What's their area profile like?

• Become a mystery shopper with any real estate companies you are considering going with. See how they really treat prospective buyers.

• Ask your friends for a referral to someone they have dealt with. Have they worked with a realtor® who did a great job? Once you have a list of realtorS®, make an appointment with each one to learn more about their services. Always interview at least three realtorS® and if you don't like what you see pick another three.

• Listen to your instincts. Show each realtor® around your home. Watch their level of interest by seeing if they ask questions or make notes.

Questions to Ask a Prospective realtor®• "What will you do to get the best price for my home?" and "What will you do to sell my home if the advertising you suggest doesn't work?"

• Ask them to explain the benefits of any marketing tactics that will be used to sell your house; including print, the Internet and other types of advertising (you'll already know much of this if you've done your research on them).

• What's their commission rate? How does it compare to that of other agencies that offer the same services? Don't pick the cheapest or the nicest; you should pick the best person for the job and as long as their fee is reasonable then use them.

• Find out how long they want you to list with them, keeping in mind that three months is pretty standard.Some will say to you “I would have this sold in afew weeks with the amount of buyers I have onmy books”, so offer them a four week agreement and gauge their reaction.

Preparing Your Home For SaleRemember: First Impressions Are The Strongest!

When little things that are easily corrected are left undone, it’s human nature to wonder about the things that you can’t see. In contrast, when all the little cosmetic things are in great shape, the overall perception of your property is positive.

Completed Needs Work

Curb AppealHealthy, weed free, neatly cut, trimmed lawn o oShrubs trimmed neatly and to not touch the house o oWeed free driveway, front walk and shrub areas o oSealed blacktop driveway o oToys, garden tools, clutter removed from yard o o

House ExteriorRecently painted siding and trim o oRepair/repaint fences and gates o oClean and align gutters and down spouts o oWash and align shutters o oWash all windows and screens o o

Front Door-Entrance Area - ExteriorClean, wash and scrub front steps and porch o oCheck front doorbell and light o oReplace welcome mat o oPaint or wash storm door, lubricate hinges o oPolish brass door lockset and brass hinges o oClean and wash front door tread o o

Front Door-Entrance Area - InteriorClear entry area or foyer of all clutter o oReduce volume and clutter in front closet o oClean and polish the front entry floor o oWash, polish and replace light bulbs o oRemove fingerprints and scuff marks on walls o oPaint to lighten and refresh entrance area o o

Living-Family-Dining RoomsRepaint or touch up walls, ceiling and trim o oRepair or replace damaged moulding and trim o oRefinish, clean and wax hardwood and vinyl floors o oShampoo/steam clean carpet o o

BedroomsRepaint, repaper, touch up trim on walls and ceiling o oReplace or clean drapes, bedspread and accessories o oShampoo carpet or wax and polish floor o oOrganize and clean out closets o oClear off top surfaces of bedroom furniture o oPut all clothing away and out of sight o o

KitchenPaint walls, ceiling, trim a light cheery color o oWallpaper with small pattern and light colors o oRemove wax, scrub and repolish floors o oWash, wipe down cabinets and appliances o oThoroughly clean range and ovens o oClean out refrigerator and wash interior o oEmpty dishwasher and clean around controls o oCheck operation of all appliances o oNeatly arrange all food storage areas o oClear all clutter from cabinets o oClean all cabinets and drawers o oWash or replace curtains o oClean and put away all pet feeding/watering dishes o o

Completed Needs Work

BathsPaint or wallpaper using light colors o oScrub tile, bleach and repair grout o oCheck to see that the drawers/doors open easily o oClean and polish floor o oSeal around tubs and showers o oClean out medicine cabinet o oCheck for evidence of water at toilet base o oReplace old toilet seats o oReplace old shower curtains o oBuy a new set of color coordinated bath linens o o

LaundryCheck operation of appliances and clean them o oClean, organize laundry area and remove clothes o oProvide adequate light o o

GeneralRemove clutter, papers and all unnecessary items o oReplace burned out bulbs throughout the house o oRemove cobwebs from ceiling and corners o oRemove paint splash on tile, floors and counters o oWash and polish all hardware and handrails o oReorganize and clean out all closets o oReplace switches, outlets that don’t work o oAdd colorful plants and flowers to several rooms o oReplace and rejuvenate pillows and accessories o oClean out and sweep garage o oOrganize attic o o

Showing Your HomeThe feeling they get from the house and the way they picture themselves enjoying the home are two of the most important factors inthe decision to buy. The following list offers a few suggestions to help the buyers create their own good feelings and visualize themselves owning your home.

Prior to Every Showing…• Open drapes and blinds• Turn on lights• Turn on soft music• Put dog outside• Cool in summer/warm in winter• Do not speak to potential purchasers• Stay out of the way (in one room or outside)

Remember: Repairs made prior to the inspection will save time and aggravation. Depending on the type of loan or the terms of the contract, some or all of the following list may apply:

Before the Inspector Arrives...• Slope ground away from the foundation (out four (4) feet where possible).• Allow for four (4) inches of foundation to show, including above flowerbeds.• Cut tree limbs away from house.• Wash stained siding and brick to remove discoloration or mildew.• Install splash blocks at downspouts.• Clean gutters and repair where necessary.• Repair all rotted wood and paint to match.• Remove any items stacked (firewood, etc.) against the house or garage.• Repair or replace damaged screens.• Cover exposed wiring with flexible conduit.• Install blanks in circuit breaker box where any are missing.• Check all electrical outlets for proper wiring.• Check firebrick in the fireplace. Seal with fireplace mortar where necessary.• Clean chimney.• Clean and inspect heater and check for holes or cracks in the heat exchanger.• Check A/C. It should cool to twenty (20°) degrees below outside temperature.• Check condensing unit and clean away any debris, leaves, grass, etc.• Test all smoke detectors. Add new batteries where necessary.• Toilets should be secured (should not rock).• Make sure tubs and/or showers do not leak.• Have all cracks in masonry repaired by professional mason.• Re-grout any cracks in ceramic tile.• Repair dripping faucets.

Remember: When buyers make a decision to purchase a home they do it emotionally!

Seller Should Make Every Effort To...

• Respond courteously and helpfully to realtors® requests to show property.

• Leave the property when a realtor® is showing it.

• Only discuss why you love this home with the other realtor®. Never talk about why, when or where you are moving.

• Remember that the other realtors® are representing the buyers so ask them to call your realtor® for additional information.

• Always ask for a card and proper identification before letting a realtor® into your home.

• Keep in close contact with your realtor®. Call them after every showing.

Best 10 Home Improvements for Return on InvestmentEvery consideration should be taken regarding market value of homes in an area. Market value is the key indicator of actual return on investment and so the numbers described below are based on U.S. national averages.

Siding Replacement (Fiber Cement) average costs are $13,212 and the return on investment is 88.1%Deck Addition (Wood) average costs are $10,347 and the return on investment is 85.4%Siding Replacement (Vinyl) average costs are $9,910 and the return on investment is 83.2%Minor Kitchen Remodel average costs are $21,185 and the return on investment is 83%Windows (Vinyl) average costs are $10,448 and the return on investment is 79.3%Windows (Wood) average costs are $11,384 and the return on investment is 79.3%Bathroom Remodel average costs are $15,789 and the return on investment is 78.3%Major Kitchen Remodel average costs are $55,503 and the return on investment is 78.1%Deck Addition (Composite) average costs are $15,039 and the return on investment is 77.6%

Worst 5 Home Improvements for Return on InvestmentThese are the home improvements you need to reconsider and only complete if necessary

Home Office Remodel average costs are $27,193 and the return on investment is 57%Backup Home Generator average costs are $13,357 and the return on investment is 58%Sun Room Addition average costs are $69,817 and the return on investment is 59.1%Master Suite Addition average costs are $98,163 and the expected on investment is 64.1%Garage Addition average costs are $82,108 and the return on investment is 64.6%

1. Clean/de-clutter - Remove clutter. Rent a storage space or sell excess items, if needed. Keep every room very clean during open homes.

2. Lighten and brighten - Replace any burnt-out bulbs and use higher wattage bulbs. Make sure skylights are clear and keep drapes open during the day.

3. Yard - Store away personal effects from front yard. Trim back the overgrowth and maintain yard. Make sure that your lawn has a healthy green appearance.

4. Plumbing and electrical - Consider repairing or replacing any defective plumbing or electrical items in your home.

5. Staging - Buy some fresh flowers, live plants and other decorations to liven up the home. Dispose of old furniture or other large items.

6. Update kitchen and bath - Update kitchen and baths by resurfacing cabinets or painting with neutral color. Replace toilet seats, dated fixtures and drawer/cabinet handles. Freshly caulk and redo grout in countertops, sinks, tubs and showers.

7. Paint interior - Repair any damaged interior walls by patching all chips, holes and cracks; then touch up or repaint interior walls with neutral color.

8. Carpeting - If carpets are only lightly soiled, shampooing and/or spot removal should suffice. If there are rips, fading, heavy wear, smells or deep stains, replace with neutral color.

9. Flooring - Repair and refinish damaged floors, or cover with neutral-colored wall to wall carpet and note damage in your disclosure.

10. Paint exterior - Repaint or resurface the outside walls of house, as needed. Patch and repair any damaged areas.

Low Cost/No Construction Tips

10Mistakes thatCould Ruin Your Open House

NO. 1: HOVERINGAs a seller, your job is to get out of the way. Let your agent andtheir team interact with the buyers. Nothing scares off buyersfaster than getting cornered by a desperate seller, says ElizabethWeintraub, a Realtor with Lyon Real Estate in Sacramento,California. "Buyers don't like it when they are hovered over. Givethe buyer some information and let them look through the homeon their own."

NO. 2: HALF-BAKED STAGINGIf you are going to professionally stage your home, stage thewhole house, or at least one entire floor. Nothing is more jarringthan two elegantly appointed rooms followed by an empty diningroom or den, says Maureen Reddy, a professional stager andowner of DaVinci Designer Gallery in Winthrop, Massachusetts.

"Nothing done halfway is ever any good," she says. And unlessyour agent is a professionally trained stager or interior designer,hire someone who knows what they are doing to handle thissensitive job. Don't let your agent start bringing in his or herfurniture for the open house -- it happens more than you wouldthink and it can backfire badly, Reddy says.

NO. 3: ROOKIE AGENT ON DUTYYour agent may not be the one to actually show your house. Butmake sure you are confident your Realtor has a capable and welltrained team, Weintraub says. While you don't want the agent atyour open house to bombard potential buyers with information,you want to make sure whoever is there is available to answerany and all questions and is not more concerned with texting orreading a book.

NO. 4: MUSICYou don't need music to sell a house. "At best it is distracting,"says Rona Fischman, owner of 4 Buyers Real Estate inSomerville, Massachusetts. "At worst, buyers will get suspiciousthat there is more road noise, or mechanical noise or neighbornoise that you are covering up."

NO. 5: FAILURE TO PROVIDE MARKETING MATERIALSAll buyers who walk through your house should be able to pickup an info packet to take with them, says Weintraub. There's noexcuse for running out of copies. Otherwise it's out of sight, outof mind.

NO. 6: SMELLSForget heavy air fresheners. Like other attempts to spice up theatmosphere, at best it's a distraction and at worst it may raisequestions about what you are hiding.

And yes, while pristine cleaning is paramount, the night beforeyour open house is not the time to plaster your abode withindustrial cleaners. The stench of bleach -- and the immediatequestions it will raise in a buyer's mind -- will do more damageto your chances than that tiny patch of mold in the corner of theshower.

Skip the cookies baking in the oven as well. Maybe it worked inthe 90s, but buyers figured that one out a long time ago, saysFischman. "You only get one opportunity to make a first impressionand if the impression is an overwhelming smell, you lose," she says."Whether it cookies or disinfectant, if it is noticeable -- and notmerely background -- buyers will notice."

NO. 7: LEAVING JEWELRY, VALUABLES ABOUTFrom gawkers to serious buyers, quite a crowd will trampthrough your house. Don't tempt anyone's honesty. Besideslosing something precious, you could also poison the deal withneedless suspicion when something goes missing and everyoneis suddenly is a suspect, Fischman says.

NO. 8: PETSLetting your beloved pets hang around on open house day couldprove costly. Not only should you put your dog or cat in a kennelfor the open house, you need to remove all signs of your belovedanimal friends. That means litter boxes as well -- a number oneturnoff for sellers. "The kitty-litter box has no place at an openhouse," says Reddy.

NO. 9: THE WRONG TEMPERATUREThis one's simple: Your house should be warm but not hot in thewinter and cool but not cold in the summer. Don't blow it byplaying games with the thermostat.

NO. 10: BAD PHOTOSIf the online photos of your house are dim, blurry, taken at oddangles or of odd rooms, don't be surprised if no one shows up.Bad photos prevent potential buyers from ever showing up inthe first place.

Common Real Estate DefinitionsAdministrative Fee Fee charged to process the loan for approval.Appraisal Fee Fee for lender-required appraisal to establish property value.Assumption Fee Fee assessed by lender to the buyer to assume seller’s existing loan.Attorney’s Fee Charges by independent attorney for preparation of legal documents and acts of representation.Attorney’s Fee (Release) Charge for preparation of the release of lien document when seller is paying off his existing loan.Commission Fee generally paid by seller to real estate agents for sale of property.Credit Report Fee assessed by lender for required credit information from credit bureau.Discount Points Points lender charges to increase the investor’s yield. May be paid by either buyer and/or seller as negotiated per contract. Points fluctuate with mortgage.Escrow Balance Buyer’s purchase of seller’s existing reserve account, i.e. taxes and insurance.Escrow Fee Charge by title company to escrow money and documents. Flood Certificate Required by lender to obtain information designating status of subject property regarding flood plains.Home Warranty Fee One year home systems and appliance warranty.Homeowner’s Assoc. Dues Maintenance fee assessed property owners within a condo or townhouse complex, a planned unit development or a single family residence subdivision.Homeowners Assoc. Fees Charges by association to provide information and change ownership records.Insurance Premium paid year in advance for buyers hazard or homeowner’s policy.Lender Inspection Fee As required by lender to determine condition of the property.Lender Required Tax Reserve Money required by lender, collected at closing, going into its escrow account. Insurance premiums, taxes, etc…are paid from escrow account for borrower.Lender Messenger Fee Covers delivery charges incurred.Mobile Home Processing Fee Charge by title company to process paper work with TDHCA.Mortgagee’s Title Policy (MTP) Required by lender to ensure that lender has a valid lien; does not protect buyer. It is sometimes required for second mortgages and seller financed transactions.Mortgagee's Title Policy Endorsements Additional title insurance coverages as required by lender.Origination Fee Fee buyer pays to lender to originate a new loan. Normally one percent of loan amount.Owner’s Title Policy (OTP) Insures buyer against loss due to any defect of the title not excepted to or excluded from the policy.Owner’s Title Policy Survey Amdmt. Area and boundary coverage in owners title policy.Pay Off Amount needed to pay off existing mortgage lien on the property being sold.Processing Fee Charge to process loan for application submittal to underwriting.Recording Fee Charge by county clerk to record documents in the public records. Charges based on per page recorded.State of Texas Guaranty Fee Fee assessed by the State of Texas for each policy issued.Survey Land survey required by lender: lot size, easements, encroachments, locations of improvements, etc.. May be a negotiated requirement on a cash contract.Tax Certificate Issued by taxing authorities to show amount of current year’s taxes and the last date that taxes were paid.Tax Proration Property tax adjustments between buyer and seller based on closing date.Tax Service Fee Fee required by lender for collection and disbursement of tax escrow by a servicing company.Termite Inspection Fee Required by lender showing property free of active termites. May be negotiated requirement on cash contract.Underwriting Fee Fee lender charges for underwriting the loans on behalf of the investor.VA Funding Fee An administrative fee charged by the Veterans Administration.Wire/Funding Fee Lender’s charge for sending “good funds” to title company.

Moving ChecklistEliminate moving stress! This quick and easy checklist will help you track dozens of details on your upcoming move or relocation.

Several Weeks Prior to Move:- Have a garage sale to dispose of unwanted items. - Donate unwanted clothing or household goods to charitable organizations. Obtain receipts showing the items' approx. value for possible tax deductions.- Begin to use up supplies of canned goods, frozen foods and other household items. Buy only what will be used before moving.- Return library books and anything borrowed from friends or neighbors, and collect things you may have loaned.- Review your relocation package if you have one, and determine what expenses will be paid by your company.- Start a log of moving expense receipts (some may be tax deductible).- Get written estimates from moving companies. Check the limits of insurance they offer, and if it covers replacement cost.

Prior to Moving Day:- Confirm with your employer that you're scheduled to be off on moving day.

- Purchase supplies like packing tape, bubble wrap and furniture pads, Boxes, boxes, boxes!- Drain fuel from your power mower and other machinery.- Pack "Open First" Boxes. For each room you pack, set aside one box that contains everything you'll need the first few days in your new home. Label the boxes "Open First" so that these will be the first boxes you unload.- Finish taking apart furniture that needs to be disassembled.- Sort out any plants you're taking.- Check that all the paperwork related to your house sale/purchase is complete.- Close bank accounts if necessary.- Finish your major packing.- Pack up your computer and electrical equipment. Write down serial numbers.- Make sure all boxes are clearly marked/labelled.- Start cleaning the house as you go.- Make sure you have all the documents related to your move on hand.- Check in with the movers and confirmthe start time of your move.- Have measurements taken of the rooms

in your new place to determine where everything will go.

And Don’t Forget to:- Defrost freezer/refrigerator. Place charcoal to dispel odors.- Have appliances serviced for moving.- Plan special care needs of infants, children, seniors, pets and potted plants.- Clean out club, gym and school lockers; pick up all dry cleaning.- Check all closets, cabinets and rooms to make sure you didn't leave anything. Take out the garbage. Lock the windows. - Leave all keys and garage door openers needed by new owner. Leave a note with your contact information for the new owners.

And On Moving Day, Don’t Forget:- Before you load a single item, check the truck, trailer, or portable container for cracks, leaks, or other signs of wear. Raise any concerns with the movers.- It's easiest to load the truck if you have everything organized in a predesignated order. Load first items you need the least, and load "Open First" boxes last.- Carry currency, jewelry, and documents yourself, or use registered mail.- Check thermostat and make sure temperature is set appropriately.

At New Home:- Be on hand to accept delivery. If you cannot be there personally, be sure you authorize an adult to be your representative to accept deliver and pay charges.

- Place a floor plan of your new home by the entrance to help moversdetermine where each piece of furniture should go.- Give the kids a job to do - let them start on their rooms. Usually, the kitchen and the kids rooms are the best to set up first, as it helps them feel at home.- Supervise moving crew on location of furniture and boxes. Begin unpacking necessary basics first - basic kitchen utensils, bath toiletries, etc. - Check to make sure all utilities are on and working properly.

Send Change of Address to:• Alumni associations• Attorneys• Banks (auto loans, checking accounts, credit cards, home equity, mortgage, safe deposit box, savings account)• Cell phone provider• Child care/daycare• City/County Tax Assessor• Credit bureaus• Credit card issuers• Department of Motor Vehicles• Dry cleaning pick-up and delivery• Employer• Family members• Health clubs• Health: medical, dental, prescription histories. Ask doctor and dentist for referrals, transfer needed prescriptions, x-rays. Contact pharmacies.• House cleaning service and lawn care• Insurance coverage: life, health, fire, and auto.• Magazine and newspaper subscriptions• New business cards• Passport• Pet sitter/ dog walker/ pet day care• Post office (give forwarding address)• Professional organizations• Retirement plan holders• Schools/Parent-teacher association (ask for copies or transfer records.)• Social Security Administration• State/Federal Tax Bureaus and accountant/tax preparer• Swimming pool maintenance/membershiips • Utility companies: gas, light, water, telephone, fuel and cable• Veterinarian (pet licenses, vaccinations, tags, etc)• Veterans Administration

Begin making a "Survival Box" for

the move. This shouldinclude paper, pens,stamps, envelopes,

cellophane & heavy dutytape, scissors, tapemeasure, paper cups,ziplock bags, paper

plates & towels, plasticutensils, facial &

toilet tissue, instantcoffee or tea,

cream/sugar, soap, moisttowelettes, aspirin,bandaids, can opener,bottled water, travel

alarm, flashlight, smalltools kit, trash bags,

snacks or drinks, children's games,

address book, spare carkeys, phone books for

the city you are leavingand your destination.