What is Escrow?

Here is a simple question that we take for granted sometimes. Most of our clients ask us what Escrow is.

Whether you are buying or selling real estate, you will most likely deal with a large amount of money during the transaction. Therefore, it is important that a third party handles the transfer of money and paperwork from each party. The Escrow Officer is a neutral party who will ensure that all requirements of the loan are met. They will also request the original loan payoff amount (ensuring that it’s paid by close of transaction). The Officer also records the deed, disburses funds accordingly, among other things.

Essentially, opening escrow is when you use a party who is not involved in the transaction to hold something of value and ensures each of the parties involved hold their part on the deal and that all terms of the contract are satisfied.

When the buyer makes an offer and the offer is accepted, the buyer has 24 hours to open up Escrow. This means that the buyer is serious about purchasing the property and will write a check to the title company (amount to be agreed upon by all parties), which will make the process official and will held by the Escrow Officer. The amount paid at the beginning is used towards the value of the property being bought. If the transaction is canceled for a justifiable reason, the “escrow” money is returned to the buyer.

If you have any questions, don’t hesitate to contact us! The information provided is based on the state of Arizona.

What’s the difference between home inspection and appraisal?

Hello!
Here’s a common question that we get often: What’s the difference between home inspection and appraisal? Most buyers and sellers don’t know why they need an inspection and appraisal.

Home inspection is the buyer’s choice. In Arizona, buyers 10 days after acceptance of contract to inspect the house and request any repairs. We highly recommend that all buyers hire a professional home inspector to perform the service. This step is not a requirement, but this is the buyers chance to find out if there are any major issues with the property they are purchasing. The report provided by the professional inspector is lengthy and it details EVERYTHING that is wrong in the house. Don’t get discouraged when you see one. Your Real Estate Agent will go over it with you and point out what major repairs should be taken care of prior to finalizing the sale. It’s worth to mention that during a seller’s market, many buyers waive the inspection to give them a competitive advantage over other offers (talk to your agent about this if you want your offer to stand out, and you are able to perform the inspection yourself or if you are buying a newer home)

Home appraisal is ordered by the lender. This step is necessary only when buyers are borrowing money from an institution. This is not necessary when it’s a cash deal. Lenders, such as banks, want to make sure that the house they are letting you borrow money for is worth and is a good investment for them. If house is worth less than what you are willing to pay, lenders will not provide all the money you are asking and is qualified for. Lenders only provide the amount that the house is worth. This is for their protection and to ensure they are lending money for a good investment.

Please contact your agent for any specific questions or email us at fwilliamsteam@gmail.com and we will be more than happy to answer your questions.

Why school district matters, even if you don’t have kids

When seeking out your ideal home, you’ll probably evaluate various locations before you finalize the purchase and secure a residential mortgage. You’ll consider the neighborhood, how safe it is and how far the commute to work or the grocery store will be.

In your evaluation of a home’s location, don’t forget to check out the school district. Even if you don’t have school-age children – or any children at all – choosing a home in a good school district is a smart move.

School districts and home value

When making a home purchase, it’s important to think about the future and your plans for the home. Someday, eventually, you’ll sell it. When that day comes, you want your home to have a good resale value.

Many factors go into this value and school district is one of the most influential factors. Parents will always want to find the best schools for their children, which means they’ll usually seek out homes in good school districts.

A study by Trulia found that 19 percent of homebuyers say they want to buy a home in a good school district. But among parents with school-aged children who are looking for a home, 35 percent said a good school district was among their top priorities. A survey by Redfin revealed that 5.6 percent of recent homebuyers chose to move specifically to be in a good school district.

Since there will always be a select group of homebuyers seeking out homes in good school districts, these houses tend to hold their value better than those in poor school districts. This includes during times of economic turmoil, such as in the late 2000s, according to the San Francisco Chronicle.

Larry Stone, an assessor in Santa Clara County, explained to the San Francisco Chronicle that identical homes one block apart could have a price difference of as much as $100,000 if one were in a better school district than another.

“It’s the single biggest thing, in my judgment,” Stone said.

How to find a good school district

Your real estate agent should have information about the school districts you’re looking at homes in. Additionally, websites like Zillow might have information included in home listings.

You can also conduct your own research. Find out what the teacher-to-student ratio is; lower is better because it means the teachers may be able to give students more individualized attention and address their academic needs better.

Also, try looking up testing scores, awards the school or teachers have received and technology in the classroom, Fox Business suggested.

Finally, a school that has extensive after school programming and a variety of extracurricular activities available to students is typically a good sign.

Academy Mortgage is one of the top independent purchase lenders in the country as ranked in the 2015 CoreLogic Marketrac Report. Visit www.academymortgage.com to find a loan, get a rate, or calculate your payment today.

Today’s blog post is from Academy Mortgage, after reading it we thought of how important this subject is and decided to share with you. As always, if you have any questions, don’t hesitate to email us.

How much should I list my house for?

But, how much is my house worth? How do you know how much to list my house for?

The simple answer is: the current market determines the value of your house. It’s all about supply and demand. However, there are other factors that influence the price of your house. The main ones are:

Location
Nearby features
Size and appeal
Age and condition

When providing a market analysis, we review all sales in the neighborhood for the past 6 months and we make sure to look at houses that are similar to yours. This is why sometimes houses in the same location and that look similar have different prices. It’s about how upgraded they are. So, if you want to list your house at top dollar, make sure it is upgraded. We go over these details during our meeting and we point out features that should be changed in order for you to list your house at a higher value. Keep in mind that curb appeal is very important, the first impression of the house can make it or break it.

Don’t hesitate to email us with questions. We are here to help!