S P E C I A L S E C T I O N : R E A L E S TAT E
9. SELLING: Don’t spend earnest money!
Many sellers make the mistake of depositing and spending earnest money before
closing day. If the transaction doesn’t go through or the buyer pulls out due to repair
issues, it is up to the seller to return the cash. It is recommended to have a real estate
agent or broker hold the deposit. Most buyers’ earnest money will be held in an escrow
account until the closing day, allowing the money to remain untouched by either party.
10. SELLING: Consider names and numbers.
Just when you think you’ve checked all the boxes for an easy sell of your house, take
a second look at your address. According to Zillow, street names and house numbers
matter! If you happen to live at 666 Fanny Hands Lane, you may be out of luck (however
that particular street is in the United Kingdom, so you should be safe). Innuendo-laden
street names tend to not sell as quickly as something like Thunder Road, for example.
American numerology says that 666 is bad luck and could decrease the value of your
home by 2 to 3 percent. Also, steer clear of the number 4, considered unlucky in Chinese
culture. Stick to the number 8, or include the lucky digits 316 in your asking price! n
IN THE MARKET TO BUY—IT’S A NUMBERS GAME
The real estate market is on the rise, and buyers are facing low inventory on
affordable homes. Whether you are looking to purchase your first home or in the market
for a new home, it is crucial to get all of your numbers in order before starting the
search for a new home. Keeping these tips in mind will help make you an ideal buyer:
● The BIG 20…percent, that is. Most real estate agents will start to take you seriously only after
providing a pre-approval letter. If you are thinking that a home purchase is in your future, start to look at
your finances. You’re going to need cash, and a lot of it. To avoid PMI and paying additional fees on top of
your mortgage, aim to put down 20 percent. If you have relatives or really great friends who are willing to
assist you in reaching the 20 percent mark, make sure you look at the rules of receiving “gift money.” Many
banks only accept up to a certain percentage of your down payment to be gifted.
● What is FICO and why is 720 important? If you are in the market to buy, the letters F-I-C-O are
familiar to you. Fair Isaac Corporation, or FICO, is a well-known software for calculating an individual’s
credit score. When getting pre-approved by banks for a mortgage, it is important to have a good score.
What is good? 720. According to FICO, the median score in the U.S. is 723. If you are looking for great credit,
shoot for anything higher than 723 (think in the 800-900 range). Most banks will offer similar options if
you are at or above 720, but if you dip below, it may be best to start by trying to improve your credit before
buying a new home.
● Pick your budget range. It is almost impossible to search for a home without knowing what you can
afford. Most likely you’ll fall in love with the house of your dreams with an updated kitchen, a claw-foot
tub and a man cave, and go to put an offer on it only to find out it exceeds your allowable budget provided
by a mortgage lender. Heartbreak will ensue, but you’ll get back on your feet with the realization that you
can still get the home of your dreams; you’ll just need to narrow your search. By this point, your Realtor
will be able to provide you with options that fit the bill. All real estate websites also provide the convenient
option to search by neighborhoods in your price range.
● Make an offer by choosing your numbers wisely. When you’ve finally found THE ONE, it’s time
to make an offer. Make sure you do your homework—find comparable houses that were recently sold
in the proximity to see if the asking price is fair. When comparing, be sure to take into account number
of bedrooms and bathrooms, updates made to the house, and other factors that may determine house
price. Once you decide on a fair price, you’ll include earnest money with your offer to show good faith. This
money will be held by your Realtor until the deal is finalized, then will be put toward your down payment.
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