#sebastopol – Artisan Sotheby's International Realty

10 Essential Steps to Buying Your Dream Home

Buying a home is a major financial decision. Whether you are a first-time buyer or upgrading, the process can feel overwhelming. Here’s a step-by-step guide to help you buy a house.

Step 1: Assess Your Financial Situation

Check your credit score: Credit scores range from 200 to 850, with scores above 620 deemed desirable for obtaining a mortgage.

When lenders assess your mortgage application, they will review your FICO score. A FICO score is a number that shows your creditworthiness. It is calculated using a special formula based on data from the three main credit reporting companies: Experian, Equifax, and TransUnion.

Improve your credit score with this guide.

Calculate your debt-to-income ratio: Lenders use this metric to assess your mortgage repayment ability. Ensure your debt-to-income ratio is within an acceptable range to secure favourable loan terms.
Determine how much you can afford. Understanding your budget helps you avoid taking on a mortgage that may become a financial burden, keeping your monthly payments manageable. Account for additional costs like property taxes, insurance, maintenance, and potential HOA fees.

Step 2: Get Pre-Approved for a Mortgage

A mortgage pre-approval is crucial in today’s competitive market. It shows sellers that you are a serious buyer and helps you determine your budget. Work with a lender to get pre-approved by providing financial documents such as income statements, tax returns, and credit reports. Here’s a helpful link about questions to ask when choosing a lender.

Step 3: Define Your Home Needs and Wants

Make a list of must-have features and nice-to-have amenities. Here are a few examples of must-have list items to consider to help you narrow down your options when searching for homes:

Location
Home size
Outdoor space
Number of bedrooms and bathrooms
Proximity to schools and work
Neighbourhood safety
Layout, features, and finishes

Step 4: Hire a Real Estate Agent

A knowledgeable and experienced real estate agent like Randy and Heidi can make the process much smoother. They will help you find homes that match your criteria, schedule viewings, negotiate on your behalf, and guide you through paperwork and contracts.

Step 5: Start House Hunting

Work with your agent to view homes that fit your budget and needs. Take notes during each showing, ask questions about the property, and compare the listings to help you make a good decision. Here’s a list of what to look for when touring a home:

1. Overall Condition of the Home

Look for signs of water damage, such as stains on ceilings or walls.
Check for cracks in walls, ceilings, or the foundation that could indicate structural issues.
Test doors and windows to see if they open and close properly.

2. Roof and Exterior

Ask about the age of the roof.
Look for cracks in the siding, brick, or stucco that may lead to costly repairs.

3. Plumbing and Water Issues

Turn on faucets to check water pressure and drainage.
Look under sinks for leaks, mold, or water damage.

4. HVAC System

Ask about the age and maintenance history of the heating and cooling system.

5. Kitchen and Appliances

Ask about the age and condition of appliances included in the sale (oven, dishwasher, refrigerator, etc.).
Look at cabinets and drawers to make sure they open and close properly.
Check countertops and flooring for wear and tear.

6. Bedrooms and Living Spaces

Ensure the layout fits your lifestyle and furniture needs.
Look for adequate closet and storage space.
Check natural lighting and ventilation in each room.

7. Neighbourhood and Surroundings

Listen for noise levels from traffic, neighbours, or nearby businesses.
Observe street parking availability and overall neighbourhood upkeep.

8. Red Flags to Look Out for in a Home Inspection

Strong odours, such as mold or smoke, that may be difficult to remove.
Freshly painted spots that could be hiding damage.
Foundation cracks wider than 1/4 inch.

Tip: Take photos while visiting each house and focus on the things you can’t change, like location, the neighbourhood, or the size of the bedrooms.

Step 6: Make an Offer

Once you find the right home, work with your agent to submit a competitive offer. This includes your proposed purchase price, contingencies (such as inspections and financing), and a closing timeline. The seller may accept, reject, or counter your offer.

Step 7: Get a Home Inspection

A home inspection is essential to uncover any hidden issues with the property. Hire a professional inspector to check for structural problems, plumbing and electrical issues, roofing conditions, and more.

It’s always a good idea to add a contingency clause to your offer stating that you have a certain amount of time to inspect the property. If any major problems are found, you may negotiate repairs or reconsider your purchase.

Step 8: Secure Your Mortgage Loan

Once your offer is accepted, finalise your mortgage by working with your lender. You’ll choose a loan type, lock in your interest rate, and provide any additional documents required for loan approval.

Step 9: Conduct a Final Walkthrough

Before closing, do a final walkthrough of the property to ensure everything is in order. Verify that agreed-upon repairs have been completed and that the home is in the condition expected.

Here’s a detailed list of what to check for on your final walkthrough.

Step 10: Close the Deal

On closing day, you’ll sign all necessary documents, pay closing costs, and officially receive the keys to your new home. Your real estate agent and lender will guide you through this final step.

Tip: Don’t forget to re-key all the locks and change the garage door opener code when the property is officially yours.

Buying a house is an exciting but complex process. By understanding each step and working with professionals, you can make confident decisions and find the perfect home. If you’re ready to start your home-buying journey, reach out to a trusted real estate agent today!

Tap into Solar Power

As energy costs rise and concerns about environmental sustainability grow, more homeowners are turning to solar energy as a viable solution. Going solar is a great way to reduce your carbon footprint, save money on energy bills, and increase your property’s value.

Understanding the Benefits of Solar Energy

Cost Savings: Solar energy provides substantial long-term cost savings. Your potential savings depend on electricity rates and the cost of your solar system. On average, it takes about 8 years to recover the money spent on installing solar panels. After that, the electricity generated by your solar panels is free.
Environmental Impact: Switching to solar energy helps reduce fossil fuel use, lower greenhouse gas emissions, and fight climate change. Solar energy is a clean, renewable resource.
Increased Property Value: Homes with solar panels typically increase in value. Prospective buyers often pay a premium for a house with lower energy costs and sustainable features.

Assessing Your Home’s Solar Potential

Before investing in solar panels, determine if your home is suitable for solar energy. Consider the following factors:

Roof Condition and Orientation: Solar panels work best on roofs in good condition and face south, but they can also be effective on east- and west-facing roofs. While south-facing roofs or ground arrays will generate energy most efficiently, you can still harness solar energy regardless of the direction your panels face.
Sunlight Exposure: To maximize electricity production, assess how much sunlight your roof gets. Factors such as trees, chimneys, or nearby buildings can cast shadows that reduce the efficiency of your solar panels. Although solar panels can generate electricity in different weather conditions, areas with more sunny days generally yield higher energy output. It’s advisable to research the average solar insolation levels in your area to estimate potential energy production. Discover your solar savings potential with Google Project Sunroof.

Choosing the Right Solar System

Monocrystalline: Monocrystalline panels are usually the most expensive solar panel type but are known for being highly efficient in producing energy. They require less space and have great heat tolerance.
Polycrystalline: Polycrystalline panels require more space and have lower efficiency and performance. However, they are typically cheaper and have a lifespan comparable to monocrystalline panels.

How much does Solar cost in California?

Federal Incentive

With the federal solar tax credit, or the investment tax credit (ITC), those who install eligible solar energy systems between 2022 and 2032 will get a tax credit worth 30%.

Selecting a Solar Installer

Research and Reviews: Look for installers with positive customer reviews and a solid reputation in the industry. Ask for recommendations from friends or family who have gone solar.
Certifications and Experience: Ensure the installer is certified by recognised organisations, such as the North American Board of Certified Energy Practitioners (NABCEP). Experienced installers are more likely to handle challenges effectively and provide quality workmanship.
Quotes and Financing: Obtain multiple quotes to compare prices and services. Discuss financing options, including loans, leases, and power purchase agreements (PPAs), to find the best fit for your budget.

We proudly announce that we have earned the NAR’s Green Designation. This certification highlights our dedication to energy efficiency and sustainable real estate practices. Contact us today for more information on how we can assist with your real estate needs while prioritising sustainability.

Add Color to Your Home Without Using a Paintbrush

Would you like to add some colour to your living space without painting? Let’s explore some easy ways to do just that! Whether you’re a renter, a homeowner looking for non-permanent solutions, or someone who loves to experiment with decor, these ideas will inspire you to transform your space easily.

Colourful Kitchen Appliances

In the past, kitchen designs mostly featured neutral tones and metallic finishes. While this style is classic, it can be boring. Now, you can find kitchen appliances in various colours to add a pop of personality to your space.

Adding a vibrant KitchenAid mixer to your kitchen can elevate your kitchen. Their Artisan five-quart stand mixer comes in 34 colours. This year, KitchenAid chose blue salt as their colour of the year.

If you enjoy coordinating your kitchen accessories, you can add a shade of red and complement it with other red accents such as plates and cups, utensil holders, or even small appliances like a coffee maker or blender, creating a cohesive and sleek look.

Samsung launched a refrigerator with changeable door panels. You can choose from various colours and two finishes to create a space that fits your style. Additionally, colourful appliances can go well with any kitchen style. They create a beautiful contrast that catches the eye when paired with neutral cabinetry and countertops.

Textiles and Artwork

Brighten up a room by adding some colourful accents like throw pillows, area rugs, or curtains. You can also choose paintings, prints or photographs, or create a gallery wall by mixing frames that feature vibrant colours.

Removable Wallpaper

If you want to refresh a room without making a big commitment, removable wallpaper is a great option. Traditional wallpaper requires glue and scraping to remove, but removable wallpaper has an adhesive backing that sticks to walls, when you’re ready for a change, you can simply peel it off without damaging the walls.

Wall Decals

Wall decals are a type of vinyl material that combines the features of a sticker and removable wallpaper. They are available in various patterns and designs and can be easily applied and removed; an excellent way to enhance the look of your home without the need for painting or wallpapering. You can apply them to your walls, furniture, mirrors, and doors.

Plants and Natural Elements

Add a refreshing touch of nature to your living space with indoor plants. Choose those with multicoloured leaves and pot them in colourful containers for a vibrant touch. This not only adds visual interest to your space but also improves air quality and boosts your mood.

Ultimately, adding colour to your living space can be easy and fun and doesn’t require a paintbrush. With the ideas we’ve shared, you can transform your home into a vibrant and refreshing oasis that suits your style.

And for more interior design content, check out Elevate Your Home: Interior Design Trends 2024.

Finally, go ahead and try out these ideas, mix and match, and let your imagination run wild. We hope you’ve found these tips helpful and inspiring. Happy decorating!

What Credit Score Do You Need for Homeownership?

When purchasing a house, having a good credit score is vital. A credit score is a number that represents how likely you are to repay your debts and shows your creditworthiness to lenders.

A higher credit score typically results in lower interest rates and better loan terms, while a lower score may lead to higher interest rates or loan rejection.

What credit score do you need to buy a house?

The credit score needed to buy a home can differ based on the type of mortgage and the lender’s requirements.

Generally, conventional mortgages may require a minimum FICO score of 620. However, FHA (Federal Housing Administration) loans may accept lower credit scores starting at 580, which is popular among first-time homebuyers.

What are the factors that affect your credit score?

It’s common for lenders to look at your FICO scores to meet loan qualifications for Fannie Mae, Freddie Mac, VA, FHA, and USDA.

How FICO scores are calculated:

Your payment history: A timely credit card payment history positively impacts your credit score. Bankruptcy, liens, and collections may also affect it.
How much do you owe, and where?: If you owe a significant amount of money in multiple accounts, it may indicate that you are overextended. However, dividing debt among several accounts can help you avoid the maximum on any credit line.
Your credit history’s length: The longer an account has been open, the better.
How much new credit do you have?: New credit cards, instalment plans, or other forms of credit carry a higher risk, even if paid promptly.
Your credit mix: It’s ideal to have a mix of credit types, including instalment loans, credit cards, and a mortgage.

What is a good credit score to buy a house?

720 or higher is considered good. Borrowers with credit scores of 800 or higher are likely to qualify for the best mortgage rates and terms available.

FICO credit score range
Below 580	Poor
580-669	Fair
670-739	Good
740-799	Very good
800 and above	Exceptional

When purchasing a house with a partner

Lenders typically use the lower of the two borrowers’ middle credit scores to determine loan eligibility and interest rates.

Therefore, both partners should maintain good credit and work together to improve their credit scores before applying for a mortgage.

How to improve your credit score

Check your credit report: Download one free credit report annually at annualcreditreport.com. Review for errors and correct any discrepancies immediately.
Pay down credit card bills: Pay all your bills on time to demonstrate responsible financial behaviour.
Don’t charge your credit card to the max: Aim to keep your credit card balances below 30% of your available credit limit. Using a lot of your available credit may lower your credit score.
Don’t open new credit card accounts: Opening new credit accounts within a short period can signal financial instability to lenders, and having too much credit can lower your credit score.
Wait 12 months after credit difficulties to apply for a mortgage: You’re penalised less severely for problems after a year.
Shop for mortgage rates once: Too many credit applications can lower your score. However, multiple inquiries about your credit score from the same type of lender are counted as one if submitted over a short period.

Achieving homeownership is an exciting journey, but it’s important to understand your credit score’s role in making that dream a reality. Start taking proactive steps to improve your creditworthiness today.

Finally, we hope you found the information helpful. Please don’t hesitate to reach out if you have any questions or want to learn more. We are always happy to provide assistance and support.

Home Improvement Projects to Increase Resale Value

Are you considering selling your home and looking to maximise its resale value? Home improvements can be a powerful tool for increasing the appeal and marketability of your property.

Whether you’re preparing to sell soon or want to enhance your home’s value with a return on investment (ROI) in mind, this is a smart financial move.

Home Improvements with the Best ROI

1. HVAC Conversion (Electrification)

According to the 2023 Cost vs. Value Report by Remodelling by JLC for the Pacific Region, converting a fossil-fuel-burning furnace to an electric heat pump and installing new lines and wall units has the highest ROI.

The conversion project is costly, but the ROI is outstanding at over 100%.

Average cost: $18,873
Average resale value: $19,770
Cost recouped: 104.8%

2. Focus on Curb Appeal

Make a positive first impression when selling your house. Since the exterior is what potential buyers see first, update the exterior of your home with landscaping, a fresh coat of paint, or spruce up your entryway.

As per the report, these curb appeal enhancers have the highest returns:

- Garage Door Replacement

Average cost: $4,756
Average resale value: $4,604
Cost recouped: 96.8%
- Entry Door Replacement (Steel)

Average cost: $3,839
Average resale value: $3,406
Cost recouped: 88.7%
- Manufactured Stone Veneer

Average cost: $11,785
Average resale value: $9,973
Cost recouped: 84.6%

3. Siding Replacement

The siding of a house is one of the most prominent features of its exterior. If it appears worn out or shabby, it can ruin the overall appearance of the whole property. It might be worth contemplating replacing the old siding with newer, better-quality materials.

There are two durable materials to consider for your home’s exterior: fibre-cement and vinyl, offering a modern and fresh look while providing long-lasting protection from the elements.

Vinyl

Average cost: $18,228
Average resale value: $17,922
Cost recouped: 98.3%

Fibre-cement

Average cost: $19,765
Average resale value: $17,172
Cost recouped: 86.9%

4. Minor Kitchen Remodel (Midrange)

The kitchen is often regarded as the heart of the home and can significantly impact a buyer’s decision.

Upgrade old appliances, install modern countertops, or refresh cabinets with a new coat of paint or updated hardware. Even small changes can make a big difference.

Average cost: $28,057
Average resale value: $22,221
Cost recouped: 79.2%

5. Window Replacement

This home improvement project enhances the interior look and also has practical benefits. You can reduce energy bills and boost comfort with energy-efficient windows.

It’s a worthy investment that can pay off in the long run.

Vinyl

Average cost: $22,299
Average resale value: $15,215
Cost recouped: 68.2%

Wood

Average cost: $26,528
Average resale value: $15,336
Cost recouped: 57.8%

6. Bathroom Remodel (Midrange)

Bathrooms are another area that buyers pay close attention to. Consider upgrading fixtures, replacing old tiles, or adding energy-efficient features.

Average cost: $27,024
Average resale value: $16,893
Cost recouped: 62.5%

7. Roofing Replacement

A new roof boosts the home’s overall appearance and signals potential buyers that the property has been well-maintained, potentially justifying a higher selling price.

Additionally, modern roofing materials often come with energy-efficient features, appealing to environmentally conscious buyers and those looking to save on energy costs.

Reduced maintenance requirements and the assurance of a well-kept roof make the home more attractive on the market.

Asphalt Shingles

Average cost: $33,541
Average resale value: $20,561
Cost recouped: 61.3%

Metal

Average cost: $55,619
Average resale value: $24,127
Cost recouped: 43.4%

Other Valuable Home Improvement Projects

1. Outdoor Living Spaces

Outdoor living spaces have become increasingly popular. There are numerous ways to transform your backyard into a functional outdoor living space. You can add a deck, patio, or outdoor kitchen.

Read our blog post about the best outdoor living ideas to find the right beautiful extension of your home.

Additionally, remodeling outdoor features can financially benefit homeowners who plan to sell their property. NAR, Most REALTORS® Recommend Improving Curb Appeal, and Homeowners Can Benefit Financially and Emotionally by Remodeling Outdoor Features, NAR-NALP Report Finds: Most REALTORS® (92%) suggest that sellers improve the curb appeal of their home before listing it for sale.

2. Address Structural Issues

Before focusing on cosmetic upgrades, ensure that the structure of your home is sound. Address any issues such as roof leaks, foundation cracks, or plumbing problems.

Hire a home inspector to find and fix problems before you sell your home. Then, you can demonstrate your detailed care for the buyer’s future home by providing them with receipts.

3. Install Hardwood Floors

Beyond the timeless elegance they bring to any room, hardwood floors are durable and easy to maintain. They are versatile and can work effectively in almost any room while also increasing the value of your home.

NAR, Remodeling Impact, for interior projects, the highest percentage cost recovered was from refinishing hardwood floors at 147%, new wood flooring at 118%, and insulation upgrade at 100%.

In conclusion, remember to prioritise upgrades that offer the best ROI and appeal to a broad range of tastes. By strategically investing in your home, you can maximise your property’s value and ensure a successful sale.

Finally, as your real estate agent, we are happy to further extend our services by offering our list of local, trusted service providers. Call us about your particular needs, and we will connect you with a qualified service provider in our area who can assist you.

Understanding HOA – A Guide for Home Buyers

If you’ve recently started your home-buying journey and came across the term Homeowners Association (HOA) but are unfamiliar with its role and impact on your decision-making process, this guide is for you.

Let’s delve into the essential things you need to know when purchasing a home in an HOA-governed community.

What is an HOA?

HOA stands for Homeowners Association. It is a governing body most commonly found in condominiums, co-op communities, and some single-family home neighbours.

Additionally, homeowners within the community typically become members upon purchasing property and must pay fees to support the association’s activities.

What do HOA fees cover?

Typically, HOA fees cover the maintenance and management of common areas and amenities within a community. These fees can vary widely depending on the specific HOA and its services, but they usually include:

Landscaping and Grounds Maintenance: This can include the upkeep of lawns, trees, shrubs, and shared green spaces.
Exterior Maintenance: Maintenance and repairs for exterior features like roofs, siding, and fences.
Utilities: Fees for communal utilities such as water, sewer, and sometimes trash removal or recycling.
Amenities: Maintenance and operation costs include swimming pools, tennis courts, fitness centres, clubhouse facilities, playgrounds, and walking trails.
Insurance coverage for public areas.
Security: If applicable, fees for security services like cameras, gates, and guards.
Reserve Fund Contributions: Funds set aside for future repairs, replacements, or upgrades to communal areas or infrastructure.

How much are HOA fees?

HOA fees vary widely depending on location, amenities, and services. On average, HOA fees can range from $100 to $700 per month. According to the US Census, the average HOA fee in 2021 was $191 a month.

Moreover, some luxury communities with extensive amenities may have higher fees, while associations with fewer amenities may have lower fees.

Benefits of HOAs

Access to Community Amenities: Amenities that may be too expensive to own and maintain alone, like a swimming pool, tennis court, or gym.
Less maintenance work: Generally, tasks like raking leaves and clearing snow are often included.
Property Value: HOAs enforce rules and regulations to maintain uniformity and attractiveness, which can help preserve property values within the community.
Community Engagement: They foster community through organised events, newsletters, and social activities, promoting neighbourly interactions.
Better Security

Drawbacks of HOAs

Fees: Homeowners must pay monthly fees, which can be a significant financial burden on top of mortgage payments and property taxes.
Restrictions: HOAs impose rules regarding property appearance, landscaping, parking, and even paint colours, limiting homeowners the freedom to personalise their properties.
Limited Control: Homeowners may feel constrained by the decisions made by the HOA board, especially if they disagree with the direction or priorities of the association.

Overall, whether an HOA is beneficial or not depends on individual preferences, lifestyles, and priorities. HOAs offer a sense of community and amenities that some homeowners find appealing, while others may find the fees and restrictions burdensome.

Therefore, by decoding the complexities of these fees, you empower yourself to make informed decisions. Whether you’re a first-time homebuyer or a seasoned homeowner, we hope this guide equips you with the needed knowledge.

Lastly, if you have any questions about real estate, you may visit Real Estate Explained for buyers and sellers alike. We have valuable guides to help you navigate the real estate process. Or if you’d like to talk more about HOA, please don’t hesitate to call us.

We are happy to help you in any way we can throughout your home-buying journey!

Elevate Your Home: Interior Design Trends 2024

As we approach the start of a new year, you’re probably wondering what the year 2024 holds for home design. Whether you’re seeking inspiration for a home renovation or simply curious about the direction design is heading, let’s explore the top interior design trends that will redefine our living spaces in 2024.

Blue Centered

Known for its calming and tranquil properties, blue effortlessly fits into various design styles, from modern to traditional. Experiment with paint, furniture, and accessories.

Moreover, blue cabinetry or tiles provide a refreshing touch in functional areas like kitchens and bathrooms.

You can complement blue with neutral tones like white, gray, and natural wood.

Artisanal Touches

There is a growing appreciation for handmade and artisanal elements in home design, as they contribute to the character of a home and create a space that reflects individual tastes.

Custom furniture, handcrafted ceramics, and unique textiles add an authentic touch.

Warm Neutrals

Warm neutrals, such as beige, tan, taupe, cream, and soft whites, are a timeless choice for interior design.

It’s versatile and easy to complement; warm neutrals work well with cool and warm color schemes. It also offers easy maintenance and allows for personalization through textures and accessories.

Maximalism

Maximalist interior design is a vibrant and eclectic style that revels in excess. It features a bold mix of colors, patterns, and textures.

This design often showcases a diverse range of art, collectibles, and furnishings, with a fearless approach to combining elements that may seem unconventional. Unlike minimalism, where less is more, maximalism encourages that sometimes more is just right.

Timeless

Timeless interior design is a captivating approach that defies the transient nature of trends. To achieve this, focus on these principles:

Neutral Palette:

Stick to timeless colors like whites, grays, and earth tones.
Classic Furniture and Quality Materials:

Invest in high-quality, classic pieces with clean lines. Choose durable materials like hardwood and natural fabrics.
Balanced Proportion:

Arrange the space symmetrically. You can start with two elements. For example, bring two couches opposite each other or two chairs opposite a couch. Maintain a functional layout with well-proportioned furniture. It’s all about bringing balance to both sides of a room.
Lighting:

Find well-designed lighting fixtures that complement the overall aesthetic. Classic chandeliers, pendant lights, and sconces can add a touch of elegance and timelessness.

Organic-shaped Furniture

Unlike traditional furniture with straight lines and rigid angles, organic-shaped furniture embraces curves, flowing lines, and irregular contours reminiscent of natural elements.

Swivel chairs, loveseats, or couches with rounded corners are all examples of it that can help soften contemporary rooms.

These pieces can be bright, particularly when they stand alone. They add a touch of color and become a focal point in a black-and-white room.

Backsplash Blending

Mitchell Parker from Houzz: Some designers are now installing a slab of stone or quartz behind the range or cooktop while keeping the surrounding backsplash areas tiled.

“The slab is often the same material as the countertops, giving the kitchen graphic veining and interesting details—it creates a striking focal point, plus, it’s easy to wipe clean,” he says.

Ultimately, the home design trends of 2024 encourage us to think beyond the conventional, inviting us to explore creativity and authenticism. These ideas will hopefully help if you’re looking to remodel your living spaces.

And for more interior design content, check out 10 Major Interior Design Styles Explained.

Finally, we wish you a happy new year! May it be filled with new adventures and good fortune. We look forward to helping you with all your real estate needs in 2024. Give us a call!

Navigating the Closing Process: A Guide for Homebuyers

The closing process is the final step in a real estate transaction. Although this process seems overwhelming, it can be a smooth experience with proper planning.

If you plan to purchase a property, we are here to provide insights about this process.

Closing Process Timeline

You may expect to close 30 to 45 days after the contract is signed. However, this timeframe can vary depending on different circumstances, such as mortgage approval and the complexity of the transaction.

The Escrow Process

You are officially in escrow once both parties have signed the purchase agreement. Escrow refers to a financial arrangement in which a third party, the escrow agent, holds the deposited earnest money.

The escrow process typically involves the following:

Opening the escrow account
Completing the inspection and repair requests
Mortgage application and underwriting
Appraisal
Acquiring homeowners insurance and title insurance
Loan approval
Final walk-through
Closing appointment

Is Earnest Money Refundable?

NAR, Earnest Money & Escrow Real Estate: There are several scenarios when a buyer could face forfeiting their earnest money. If a buyer waives contingencies, ignores timelines, or gets cold feet, it could mean losing the earnest money deposit.

When it comes to real estate, a case of buyer’s remorse could be even more painful than a lost deposit. To avoid both, ensure the home you’re bidding on is “the one.”

How Much Are Closing Costs?

Zillow: Buyer closing costs are usually between 2% to 5% of the home’s purchase price. For example, if the home costs $300,000, you might pay between $6,000 and $15,000 in closing costs.

A lot of factors impact how much you’ll pay in closing costs. For buyers, it depends on your loan program, the size of the loan, and individual lender practices. For sellers, it comes down to what you’ve negotiated in terms of concessions and agent commission.

Track Your Closing Costs

Be prepared and know who’s responsible for the fees and expenses at the closing table. We have prepared a worksheet to help you track your closing costs.

Homeowners Insurance

A homeowners insurance policy will protect you against certain losses and damage to your new home and is generally required by lenders before closing.

Moreover, some lenders will collect the money you owe for homeowners insurance as part of your monthly mortgage payment and place it in an escrow account, paying the insurer on your behalf when the bill is due.

Title Insurance

Title insurance protects your ownership right to your home; from fraudulent claims against your ownership and mistakes made in earlier sales.

Additionally, in some states, it is customary for the seller to purchase the policy on your behalf.

Final Walk-Through

Conduct a final walk-through of the property before closing. To guarantee that the house is in the same or better condition if you negotiated repairs after the home inspection.

Here’s a detailed list of what to check on your final walk-through.

Transfer of Ownership

Once all the documents are signed, funds are transferred, and the closing is complete, property ownership officially transfers to you.

Congratulations! At this point, you will receive the keys to your new home.

In Conclusion,

Preparation is vital; from gathering all necessary documentation to conducting a thorough home inspection.

Also, staying in close communication with your real estate agent and other parties involved will keep you updated on the progress.

Furthermore, we understand that the closing process can be daunting, and we are here to help you fill the gaps in your home-buying knowledge. Call us, and we will establish a plan to achieve your personal real estate goals.

Finally, best of luck on your journey, and may your new home bring you years of happiness and fulfillment!

Prepare for the Spring Real Estate Market 2023

As the flowers start to bloom, the real estate market is getting ready for one of the most active real estate seasons: spring. The spring real estate market can be very competitive, with more buyers and sellers entering the market. If you plan to buy or sell a home this season, it is important to be prepared.

Start preparing for the Spring Real Estate Market

Here are some tips to put you in the best position this season. Whether you are buying or selling a home, the spring market can be a great opportunity to achieve your real estate goals.

Start planning early: The earlier you start planning, the better prepared you will be. If you are planning to sell your home, start decluttering and cleaning out your home. If you are planning to buy a home, start researching neighborhoods and determining your budget.
Find a reputable real estate agent: A good real estate agent can help you navigate the competitive spring market. Look for agents like Randy and Heidi who are experienced, have a good track record of success in the local market, and know the local sales trends. Read more on About Us to get to know us.
Get pre-approved for a mortgage: If you plan to buy a home, get pre-approved for a mortgage before you start house hunting. This will give you an advantage in a competitive market and show sellers that you are a serious buyer.
Price your home correctly: If you are planning to sell your home, make sure you price it correctly. A real estate agent can help you determine the appropriate price based on comparable homes in your area and current market conditions.
Make necessary repairs and improvements: If your home needs repairs or improvements, make them before listing your home. This can help your home sell faster and for a higher price.
Stage your home: Staging your home can help it sell faster and for a higher price. Hire a professional or use online resources to stage your home and make it more appealing to buyers. Check out Home Staging Success for staging tips and tricks.

Homebuying Forecast

Michael Hyman, NAR Research Data Specialist, Housing Affordability Conditions Improved in January 2023 for the Third Consecutive Month, at the national level, housing affordability rose in January compared to the previous month, according to NAR’s Housing Affordability Index. Compared to the prior month, the monthly mortgage payment decreased by 3.3% while the median price of single-family homes declined by 2.4%, making home buying more affordable in January. The monthly mortgage payment decreased by $62 from last month.

Sonoma County Housing Market

Redfin: In February 2023, Sonoma County home prices were down 4.9% compared to last year, selling for a median price of $745K. On average, homes in Sonoma County sell after 48 days on the market compared to 29 days last year. There were 226 homes sold in February this year, down from 332 last year.

Work with experienced real estate agents

The real estate market is busy during the spring season as many houses are put up for sale. Unique homes require skillful marketing, and we can help you make your home stand out and be marketed effectively. If you are planning to enter the real estate market this season, give us a call!

Discovering The Communities in Sonoma County

Sonoma County is known for its natural beauty, diverse communities, and thriving real estate market. One of its highlights is its wine industry, with over 400 wineries producing world-class wines.

Aside from wine, it is also home to several charming cities and towns, each with its unique character. If you are looking to buy a home in Sonoma County, there are many great communities to choose from:

Petaluma

Nestled on the side of Sonoma Mountain, Petaluma is a small town with a historic downtown. With a history in the Gold Rush and many historic ties to a rich agricultural heritage, Petaluma is a town with the ranch’s work ethic and the artist’s culture.

It is now a hub for technology and innovation. Petaluma is where history, culture, and innovation find confluence and was also ranked No. 1 in Niche as the best place to live in Sonoma County.

Click here for active Petaluma listings.