Tag: real estate lawyer

Do You Need A Lawyer At The Mortgage Closing?

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At closing day, expect to come to a crowded room since virtually everyone will be around. That will include your real estate agent, your seller’s agent, and the title company and mortgage lender. But what about a real estate lawyer? Should you have a real estate lawyer at the closing day?

Legal experts advise that you have your attorney present at the occasion. Based on what a real estate attorney can do, it makes it ideal to have one present at the closing day. Many individuals have successfully closed a deal without a lawyer.  If you don’t want to take chances, getting a real estate attorney will be a smart move.

Since a massive sum of money is involved, an attorney’s protection is what you need. Not only do they draft out some important documents, but they also give expert advice that might benefit you in the long run.

The Role Of An Attorney

To fully determine if you need a lawyer at the closing of your deal or not, it is paramount you understand an attorney’s role. An attorney’s work goes beyond the closing day, as you will need their assistance to sign the agreement of purchase and sales.

With such assistance, rest assured that every document you will sign will be in your best interest.  During the closing day, an attorney will ensure that the loan document you sign is prepared and accurate in terms of the agreed fees.

If you ever have any questions that you wish to ask, your lawyer will answer them and even negotiate on your behalf. Due to your lawyer’s immense experience in real estate, mistakes are less likely to happen, and you will guide all through the processes.

Before Closing Date

Right before the closing day, your lawyer could be of assistance to negotiate for repairs before the home can be closed. Aside from that, they also study the title documents to determine if another individual or body has a stake in the home you want to buy.

There have been cases where the seller failed to pay property taxes, leading the government to have a lien against the house. When you have an attorney behind you, such a situation is less likely to happen. Your attorney will search for title documents to make sure there are no hidden surprises.

Depends On Your State

In most states in the US, an attorney must be present at a real estate closing. These states include Connecticut, Delaware, Alabama, Kansas, Mississippi, Maryland, etc. In this case, the lawyer is representing your mortgage lender, not you. If you want legal representation, it will incur some additional fees.

Conclusion

Whether your state made it mandatory or not, having a real estate lawyer present at closing day will save you tons of headaches. There are things you’re likely to miss, which an experienced lawyer won’t. Although the cost isn’t always friendly, you will eliminate mistakes that could even cost you more.

Guide to Hiring a Real Estate Lawyer

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No doubt, real estate is one of the most significant investments you will ever make. As thus, you might need the assistance of an experienced and reputable lawyer. Since various laws are guiding real estate and property laws, a lawyer becomes a guide toward the inevitable.

If you must hire the right lawyer, you must ensure you follow the tips in this article. They will guide toward identifying the ideal person for your investment.

  1. Ask For Referral

The fact is, there are some families and friends who might have made one or two investments. These are people who you can ask for referrals. They are most likely to recommend a lawyer they have worked with before. If that didn’t work, you could check social media and forums. Who knows, you might find what you’re looking for with just a few clicks.

  1. Check For Experience

Referrals aren’t enough, as you need further assurance. Experience is another crucial factor you shouldn’t fail to include in your checklist.

Get as many referrals as possible, then screen based on experience. The more experience someone has, the better, but that doesn’t mean you shouldn’t look out for potential.

  1. Do Some Research

Before making your final decision, go the extra mile by running the lawyer’s name on Google Search. What kind of online presence does he have? It would be best if you had someone who can represent your investment business in a good light. In other words, they are like ambassadors and able to serve you in legal issues.

In-depth research will further guide you into making a decision you won’t regret. Remember, you need someone who can get you out of trouble.

  1. Contact The Bar Association

Another medium to get connected to potentially great lawyers for your real estate investment is this Bar Association. This body can provide you with a list of lawyers in your area that deals with real estate. You can either call this body or visit their corporate website for more information. No doubt, they will be more than helpful.

  1. Billing

This factor will determine if you’ll get your ideal lawyer or not. If the price is above your budget, look for another lawyer. There is no harm in hiring someone who understands and can work with your budget. There are numerous lawyers out there who are ever ready and able to work with what you have. To many, they believe they can work with a firm from infancy to a giant.

Conclusion

Finding the right lawyer for your real estate investment is an ideal route every investor takes. The benefits of having a lawyer by your side are tremendous, which is why you need the services of one. Although most of them can be somewhat expensive, there are always options that work best with your budget. All it takes is patient and a little research.

THINGS TO NOTE AS A FIRST TIME HOMEBUYER

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You are about to own your first home, you are excited! It’s a whole new experience and you can’t wait to get started. But first, there are a few things you must know before you dive in headfirst. Buying a new home can be an overwhelming experience, more so when it’s your first time. You might be tempted to make a quick buy when you see homes going off the market in mere weeks and seemingly attractively priced homes. Unfortunately, making such a mistake might cause a strain on your financial goals. You sure don’t want to keep paying a mortgage when you are retired. 

As they say, what is worth doing, is worth doing well. You want to get it right the first time. Don’t anyone trick you into believing that you can’t buy a home you love at a great price that won’t hurt you financially. Here are some tips to make your first-time home purchasing a happy one.

  1. Be Debt-free and Have An Emergency Savings Fund
    Owning a home is great but it comes with its own dose of responsibility. When you do an initial calculation, it may be cheaper than paying your current rent or at the same rate. However, you would need to also put into consideration that the home is now your full responsibility, meaning you are now responsible for utilities, maintenance, etc. You don’t want to have debt while trying to set up your new home. Do be mindful of your spending though. You want to be debt-free and stay that way.
  2. Calculate What You Can Afford
    Before you start house hunting, determining what you can afford. It’s easy to fall in love with a house at first sight, just make sure that the house is within your budget. Calculate your monthly budget to help you determine the price range of a house you can afford. Keep in mind other costs such as housing costs (tax, insurance, etc.). These costs should not be more than 25% of your monthly take-home income. Insurance and homeowners tax vary, so endeavor to factor that in when determining your price range.
  3. Save For A Down Payment
    Not everyone is capable of paying the total price of a house up front, and that’s ok. However, if you can’t pay all at once, ensure you have at least 20% for a down payment. You may be thinking of going for private mortgage insurance or first-time homeowner program, they may sound great, but they cost you more at the end. Whatever plan you choose, ensure you are not in debt for longer than necessary. 
  4. Find A Home In Your Price Range
    Searching for a home in your price range helps you save time and effort. You also don’t get emotionally attached to homes you can’t afford. Search for homes in your range online and send them to your real estate agent. Your real estate agent now knows what you want and can find suitable homes that meet your criteria.
  5. Find a Neighborhood
    Finding a home in your price range is great, however, finding it in a great neighborhood makes it even better. You want to find out about things like crime rate, types of schools, how long your commute would be to work, supermarket, or hospital. Visit the neighborhood at different times, on different days to check the level of traffic, noise, and friendliness of neighbors. Your new home should be comfortable for you and your family. 

Buying your first home is a huge step and you sure want to get this right. A real estate agent can help you make the process easier and see the deal to a favorable closing. 

TYPES OF LISTING AGREEMENTS AND REAL ESTATE AGREEMENTS

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When selling a home for the first time, it’s best to treat the process very carefully. The first step is properly understanding what your real estate agent agreement contains. Listing documents can be quite complicated, especially because they are legal documents. But, knowing the main elements contained in it can help you quickly recognize if there are missing portions or if there are fraudulent looking bits in it.

Listing Agreement

A listing agreement is also known as a listing agent contract. It is a document that is legally binding between a real estate agent representing a person wanting to sell their home and a seller. There are different aspects of a listing agreement and they can be modified to fit a particular situation.

Types of Listing Agreements

Exclusive Right To Sell

This is the most popular type of listing agreement. In this agreement, the listing agent has exclusive rights to earn a commission if they bring the buyer. This agreement prevents you from working with another agent during the period. Offers go through the listing agent, protecting the real estate agent from losing time and money when they won’t get a commission. Also, agents work hard to get a buyer because that’s the only way they get a commission. 

Exclusive Agency

This is a less common type of listing agreement. Here, you hire a listing agent but if you find a buyer yourself, you get to keep the commission. That way, you avoid paying the commission fee. If you are comfortable investing in your own marketing, then this is a good plan for you. In this agreement, you also have an agent working for you, although they might not provide the full support as in the case of having a full-service agent.

Open Listing Agreement 

Unlike other types of listing agreements, the open listing agreement is not a formal contract. A seller does not engage a listing agent, rather, they allow local buyer’s agents to market the listing. This listing agreement gives 3% buyers agent commission. An interested buyer’s agent may want the agreement in writing before bringing in potential buyers. This listing is flexible and you can take the house off the market when you want without any penalty. You also only pay half the commission fee.

Net Listing Agreement 

This is the least common type of listing agreement. In a net listing agreement, a listing agent would sell your house at a particular set price. The catch here is that if they sell the house for a higher price, they get to keep the excess. Net listing is illegal in many states and in the few places where they are legal, there are clauses to protect the seller. To use this type of listing agreement, be sure to engage an agent you trust. It is illegal because it is financially risky as an agent might try to take advantage of the process by not showing you lower offers.

Before choosing a listing agreement, ensure you know all the pros and cons. Pick the one that will be suitable for your current needs.

Steps of a Real Estate Closing

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If this is your first real estate deal, the process and protocols involved when closing a deal could be draining. Closing a real estate deal entails signing some paper works that make the house yours. But before you grab that pen to draw your signature, here are steps you must take before that event. It would ensure you don’t make any mistake that you will regret later.

  1. Open An Escrow Account

An escrow account is inarguably the first step to take in every real estate deal. It ensures that none of the parties get cheated as a third party is responsible for holding the money and documents. When all formalities and processes are over, the capital and materials get moved from the escrow account to respective owners.

  • Home Inspection

Before you close a deal on the house, you need to be sure the house is safe and in good condition. Through home inspection, you’re able to discover the problems facing the house. Such information would help negotiate better with the seller. When you forgo a home inspection, you might find out that there are lots of issues with the house that requires a vast amount of money to solve.

  • Hire An Attorney

Even educated individuals often find it hard to understand the jargon in real estate documents. That is why professional legal aid is very paramount before closing. Although it would cost you some penny, it saves you the headache of making a mistake. In most states, an attorney is a requirement to handle any housing closing.

  • Title Search And Insurance

After closing a close, some drama could spring up that might threaten your ownership of the house. It could be a spurned relative left behind in a will, or maybe a tax-collecting agency that not paid its dues. Through a title search, you’re able to know if there are any claims to the house. Information like this would guide you into making the right choice.

  • Pest Inspection

If the home is a wood house, then this is a step you shouldn’t overlook. Pests can ravage a home and reduce it to nothingness, which is often frustrating to homeowners. A home inspection is different from a pest inspection. A pest inspection specialist evaluates the house, to know if there is any pest that could become a pain to the homeowners.

The seller might try to convince you that the home is perfect. Never take their word for it, as they are merely looking out for their selfish interest. The fact is, even a small infestation can wreak havoc in the future, which is why you mustn’t joke with this.

Conclusion

There are lots of things involved during a house closing. The right information would ensure you take the right step. Make sure you have an attorney that help interpret the terms, while a home inspector and pest specialist ensure if the home is safe and worth buying.

Real Estate Myths Debunked

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Myths exist in all facets of life, often propelled by ignorance. In the real estate world, there is a truckload of them. Harboring these myths would negatively impact on your real estate deals, as you will always make the wrong move.

A myth is merely an invented idea, story, or concept. You read it on the internet doesn’t make them right, which is why you need to be conscious of the information you devour. In this article, you will learn some of these myths and why they are not valid.

  1. All Real Estate Agents Are The Same

It is a common myth some buyers believe in, which can lead them to make the wrong choice. All real estate agents are different, with their diverse skill set, experience, and traits. A real estate agent with a two years’ experience isn’t the same as an agent with over 20 years’ experience. There are also real estate agents who specialize in dealing with sellers, while some deal with buyers. Have you now know why this myth is ridiculous?

  • Real Estate Agents Make A Truckload Of Money

This myth has made many people delve into real estate, hoping to make insane money after their first deal. The fact is that it isn’t realistic. Although getting a real estate license is pretty easy, real estate agents don’t make a truckload of money. The top real estate agents do earn a decent income, but a lot of factors come into play. First of all, the commission a real estate agent makes from a house sale is not always 6%, as people commonly believe. The commission is negotiable, and the agents often incur lots of expenses in the process.

  • Open Houses Sell A House

Although it is interesting, believing that your house is open for sale every Sunday. To many, an open house is a great way to sell a home and make money. According to the National Association of Realtors, only 2% of households get sold as a result of open houses. So, there is a high chance that your home will not make it to such a competitive percentage. When a real estate persuades you to utilize open houses, it is often for their interest, since they usually tend to meet new clients through such avenue.

  • Real Estate Agents Can Do Anything To Make A Sale

Many are often of this notion, believing that it is the norm since the agent doesn’t go home paid without selling the house. That is not true, as there is a strict code of ethics that they must follow. However, some professionals would do anything, but it doesn’t apply to every real estate agent.

  • Preparing A House For Sale Isn’t Necessary

This myth is prevalent and often end up affecting the seller negatively. Developing a house would ensure it increases in value. When a seller fails to this do, they end up selling the home for a peanut.

Conclusion

There are tons of myths circulating the real estate world, and it is imperative you know and avoid them. Most often, these myths often come from supposed educated individuals. When you come across them, never hesitate to debunk them.

Qualities That Make an Excellent Real Estate Agent

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A day in the life of a real estate agent is never a straightforward path. Every day comes with its unique diversity, just as the people they represent. When it comes to choosing a great real estate agent, there are some exceptional qualities to anticipate. It would determine if the agent is the right fit or not. Here some conditions to look for when searching for a real estate agent.

  1. Good Agents Value Communication

The real estate market is time-sensitive, which is why you need an agent who understands that. Most real estate agents can be annoying, especially regarding disclosure. If you don’t choose a real estate agent that values regular contact with clients, you will end up losing tons of opportunities. The agent and client need to stay in constant touch.

  • Great Listeners

If your agent talks too much, and find it hard to listen, then that’s a big red flag. Your agent must be able to listen and understand you, to satisfy your needs. As a customer, you will be doing most of the talking. So, your agent must be able to understand your special request and be ready to satisfy them. Most clients prefer conversation to happen via email. Some others prefer a phone call, so they can chat and know the latest happenings. Your real estate agent must be able to understand that, then make provision to listen to all you have to say.

  • Client-Motivated

An excellent real estate agent understands that if a client gets a good deal, he gets a good deal. When choosing a real estate agent, ensure that your agent holds its customers in high esteem. No doubt selling or buying a house is stressful, which is where the right agent comes in. A good agent is after your success because it means a lot to their success too.

  • Customer’s Motivation

The reason for selling or buying is something that every competent real estate agent doesn’t fail to know. According to Ben Hatch, an excellent real estate agent always knows why their client is selling – the motive behind selling the house. The real estate finds out if the house is merely an investment property or something that they will live on for a while and knock it off. Customers motivation is a top priority and often help when it comes to choosing the right deal

  • Credible and Reliable

Great real estate agents will never hesitate to refer you to previous clients for reference purposes. If they are outstanding, their client will leave a positive review of their experiences. But when reverse is the case, then it means they are hiding something, which is a sign you need to run.

Conclusion

A great real estate agent would ensure you have an incredible experience selling or buying a home. They are very transparent and often looks out for your interest before theirs. If you’re looking for a great, look for the qualities mentioned above.

Ways to Finance an Investment Property

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The world has gotten to the point where every income-oriented person is always looking for ways to make extra income, whether passively or actively. Many people love having passive income streams because they give them the chance and time to work on a lot of other things, especially if they have a regular job. One of the best ways to earn passive income is through investment property. And besides providing you with a source of income, you can increase your assets, stabilize your financials through investment property.

However, knowing how to buy an investment property in your name is always the first step. Buying the property is the hardest part, except, of course, you already have the cash lying around in the bank or a rich family member who is going to give you the money. If you are just an average Joe who wants to invest in properties, below are some options that you can use to finance an investment property.

  1. Apply for a bank loan

For investors just starting out in the world of investing, getting a bank loan is the most common go-to option. The only difficulty that many of these investors grapple with is the insistence of banks on up to 30% of the property’s value as a down payment. This could be a bit difficult for an investor who is just getting into the business. Some of the other limiting factors, including poor credit scores and a bad debt-to-income ratio, which make the banks tag them as bad bet and refuse them loans.

But if you can swing it, a bank loan is one of the best ways to finance an investment property. You can get good rates, and once the property begins to yield some income, servicing the loan becomes easy.

  • Tap into your home’s equity

Financially, we do not usually advise using your existing home’s equity, but if you are trying to buy an investment property, it could be a great idea. You have different options, which include using the home equity loan to get the amount you need or extending your mortgage or even cashing out all the equity that you have on your home. Whichever it is you choose, this is a viable option to finance your investment property.

  • Get a hard money loan

Not all investment properties are meant to be kept long-term to yield income. Sometimes you can get a “hard-money” loan in which the property will serve as the security. Lenders that provide loans like this will use the after-repair estimated value of the property to determine their risk. This kind of loan does not use your credit score or debt-to-income ratio to check your loan eligibility.

If you have your sights set on investment property and the whole process is overwhelming for you especially in the area of financing, it is time you talked to experts. Get in touch with Chang Legal LLC Attorneys at Law. Call 847 907 4971 to talk to a lawyer.

New Construction Buyers Say They Need Agents Too

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With mortgage rates at extremely low rate and median prices moving closer to what middle-income buyers can afford, newly constructed homes are enjoying their best sales year in more than a decade.

The process of buying new construction has some tough spots for shoppers, especially first-timers. In addition to searching for and financing a home, they’re trying to visualize what that home and the surrounding community will look like, evaluate a builder and select a floor plan and finishes.

Since there are so many moving parts, most new construction buyers (76%) work with agents to find their home, and that 84% of new construction buyers who work with an agent and visit a building/sales center want their agent to help communicate with the builder. 

Half of those buyers (50%) want their agent to handle some communication with the building/sales center, and 34% want their agent or broker to handle all communications with the builder. Only 16% don’t want their agents involved.

Some of the things they might need help with include:

  • Negotiate price
  • Book a tour
  • Explore upgrade options
  • Compare new construction values with existing home values

For more information or any questions regarding sales tips for real estate agents, contact Chang Legal today.

Easy 1-Day Home Upgrades For Selling Home

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There are many easy home improvement possibilities that may get overlooked when trying to upgrade your home. Here are some of the easiest ways you can give your home a new look in one day without needing a large budget or amount of effort.

Add a coat of paint to what you already have

Now this doesn’t mean that you have to paint your child’s entire bedroom again. Regardless of what you’re painting, adding a new coat of paint can give that item an entirely different life. Here are a few ideas that make a big difference:

 – create an accent wall in a room

 – repaint trim or crown molding

 – give your front door a bright new color

 – spray paint faucet fixtures instead of replacing the whole faucet or sink

Swap out cabinet handles, light switch and outlet covers

Getting new handles and wall plates can make huge yet subtle difference. Swapping out cabinet handles will have the biggest impact on the kitchen. Alternatively, you can switch out any handles or knobs on other dressers or cabinets you have around your home.

Add some plants

Besides making your home look pretty, plants provide more oxygen for your home, reduce stress and anxiety, and help clean the air around you.

Add or replace doormats and rugs

If you have hardwood or tile flooring in your home, you may want to consider adding a rug. In addition to protecting the flooring underneath, this will help decrease the noise in your space and warm up the rest of the room.

For more information or any questions regarding sales tips for real estate agents, contact Chang Legal today.