Selling Your Home With Homeowner's Insurance

by c21commonweath_ldowling 9. October 2019 17:06

Homeowner’s insurance is an expense you may wish to pass off to a buyer as soon as possible, but getting rid of your insurance too soon can have detrimental effects. Let’s review the reasons why having homeowner’s insurance is so important and why you may want to hold onto it until your title has been transferred to the new owner. After all, a tree could fall on your house a day before closing, only to have all parties cancel their contracts—stranger things have been known to happen!

What Is Homeowner’s Insurance?

Homeowner’s insurance is a type of property insurance that protects your home and the things inside your home from damage. It can also cover accidents and bodily harm inflicted inside the house or on the property. Homeowner’s insurance is required in order to obtain a mortgage from most banks or lenders. Individuals can purchase homeowner’s insurance from the lending bank, in which case payments can be included in the monthly mortgage payments, or from an insurance provider of their choice. 

The amount of coverage a homeowner has depends on the plan’s liability limit, which is usually set around $100,000. Acts of war or acts of God (earthquakes or floods, for example) aren’t usually covered in basic homeowner’s insurance plans, so people living in areas prone to these events are wise to purchase special coverage. Most homeowner’s insurance policies cover damage done by hurricanes and tornadoes. 

Selling Your Home with Homeowner’s Insurance

While it’s not necessary to have homeowner’s insurance while selling your home, it’s smart to hold onto it until the new buyers take financial ownership of the property. Here’s why.

Financial Responsibility and Home Offers 

You never know when an unexpected accident will occur, due to extreme weather or other circumstances. If something happens to your home before you close the deal, you may be left with a huge financial burden, and a buyer may retract their offer if they see the property has suffered major damage.

Protect People from Accidents on the Premises

Homeowner’s insurance includes personal liability coverage, which includes personal injuries to others. In the unlikely event an individual is injured on your property during a showing, your homeowner’s insurance will help cover any medical bills. According to the Insurance Services Office (ISO), wind and hail, freezing water damage, and fire and lightning damage are much more likely to cause property damage—personal and bodily injury are rare, comprising only about 3% of total home insurance losses.

When Should You Transfer Your Policy?

All things considered, it’s best to transfer your homeowner’s insurance policy to your new home only after the closing is complete and your title company sends the funds to close the loan on your old home. You may end up paying for two homeowner’s insurance policies at once while purchasing your new home and selling your old one simultaneously. 

Contact your mortgage company one to three days after closing to notify them of your move. If you’ve prepaid your homeowner’s insurance and property taxes, and your insurance has been escrowed, you won’t need to cancel your current plan. Instead, your lender will send you a refund check.

Better Safe Than Sorry

While it might seem like a hassle to sort through homeowner’s insurance during a sale or move, it’s a good idea to safeguard yourself from potential liabilities that could cost you most of your savings. You’ll be thankful to have a policy that covers expensive damages when you need your home to be in tip-top shape.

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Renovations That Make Money in the Long Run

by c21commonweath_ldowling 7. October 2019 12:30

Does your house work perfectly for you? Are the kitchen, bathroom, and yard designed and decorated just the way you want them? Unless you had your house custom-built from the ground up, your answer to these questions is probably “no.”  If you want your home to be just the way you want it, you’ll probably have to make at least a few renovations.

Remodeling your home can make it a more comfortable, more functional place to live, but it can also impact the property’s value. Even if you aren’t planning on selling your house right now, it’s wise to consider the potential impact of renovations on the value of your home. While a pink bathroom with a bright orange bathtub might look good to you, it could put off buyers when you try to sell your house.

Increasing your house’s value is a good thing even if you aren’t ready to sell—it can improve your credit rating and be a successful stockpile for your wealth. The best part is, unlike many concrete investments, the price of your home is likely to increase.

What Renovations Pay Off?

Here’s our list of the potentially profitable home renovations you should consider, including some you may not have expected:

Upgrade to High-Efficiency Windows

Replacement windows look great, and depending on the age of your home, they can make a big difference in your utility bill. Upgrading your windows makes sense for your comfort and your pocketbook.

Add a Deck

If you have a good-looking, functional backyard, adding a deck is almost like adding a whole new room to your house. A deck is one of the most attractive and useful things you can add to your home.

Replace Your Garage Door

Replacing your garage door may not be the most obvious way to upgrade your house, but if you think about it, you use your garage door every single day, and it’s one of the property’s most visible features. A new garage door can do more than just look better—it can also be more energy efficient and make your garage more usable.

Update Your Kitchen

No discussion on home renovation would be complete without covering the kitchen. Most experts agree that updating your kitchen will significantly increase the value of your home, as long as you don’t go overboard with restaurant-style appliances or high-end finishes.

Home renovations can make your life better by improving the place you spend most of your time—however, not all renovations are created equal. When you plan a home renovation, keep your future buyer in mind. Your house’s extra value can benefit you in unexpected ways even before you sell.

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Financing Your Home

by c21commonweath_ldowling 2. October 2019 12:18

Most people don’t purchase a home with extra cash they have lying around. Instead, they rely on loans to make their mortgage payments—this is especially true for first-time buyers. In order to qualify for a loan, you’ll need to let lenders review your financial history so they can make sure you’ll pay off your mortgage.

Lenders will check your credit score to determine the amount of money they’re willing to loan you. After you know your loan amount, you’ll have a better idea of how much money you can put toward your down payment, which in turn gives you a realistic idea of what homes are in your price range. 

Qualifying for a Home Loan or Loan Preapproval

Approach your house hunt with a good sense of your own purchasing power. After all, you don’t want to tour a home you can’t afford. Before setting foot onto a property, make sure you possess the financial backing needed to submit an offer. Opt for mortgage prequalification or loan preapproval to get an idea of your ideal price range.

  • Mortgage Prequalification: During the prequalification phase, a lender will evaluate your financial trustworthiness (your creditworthiness) to determine if you’re eligible for a loan. Prequalifications are an approximation based on the financial information you provide—they don’t guarantee you’ll receive a loan. Prequalifications are best used during the window shopping phase, before you’ve decided you’ll purchase a home in the immediate future.
  • Loan Preapproval: During this phase of the home buying process, lenders investigate your financial history to offer a specific loan amount. To determine a loan number, lenders will ask for your income, credit score, credit history, and the amount of money you have in savings. This process gives you a realistic idea of the homes you can afford within a specific price range. 

Rely on a Loan Officer for Help

No matter your financial state, a loan officer is there to assist you. If you’re not in the best financial position to purchase a home, your loan officer can recommend ways to improve your credit score and trustworthiness. Alternatively, if you’ve got the go-ahead, a loan officer can prepare you for purchase by letting you know which loan programs you qualify for, what your purchase price limit is, what your monthly payment might look like, and how much money you need for your down payment, closing costs, and reserves.

Don’t Skip These Important Steps

Don’t jump into the game without the skills you need to win! Before you get too excited about a potential new home, first go through your finances to see what you can realistically afford. This allows you to put your best foot forward while placing an offer on your dream home.

 

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Close a Deal Faster with Special Offers or Terms

by c21commonweath_ldowling 25. September 2019 10:04

Keeping your home on the market can cost you money. As long as you still own it, you’re responsible for maintenance, property taxes, and utilities. Depending on your situation, a house that doesn't sell quickly can be a weight around your neck. You may find yourself forced to pay two house payments or even unable to accept a new job, start a family, or take the trip you’ve been dreaming of for your whole life.

Are you stuck in a home that seems like it will be on the market forever? There are a few things you can do to encourage buyers to close a deal and sell your home faster.

Pay the Closing Costs

Offering to pay the closing costs is a common strategy for sellers who want to speed things along. Selling a home involves several costs and fees, including things like real estate agent and lender fees and charges for title insurance and home appraisals. When you total everything up, it may run from 2-5% of your home’s value. Many buyers have difficulty saving for a 3% down payment, let alone any additional costs. Offering to pay closing costs can encourage an otherwise reluctant buyer to pull the trigger.

Pay for Necessary Repairs

Did the home inspection uncover a leaking roof, bad wiring, or termite damage? You typically have two options: reduce your price to cover the cost or pay for the repairs yourself. The second option is better from the buyer’s perspective—he or she can be confident they’re moving into a home, not a money pit 

Consider Seller Financing

If you live in an especially depressed market, buyers may have trouble getting a loan. In extreme cases like this, some sellers work the purchase out directly with the buyer. No bank or other lender needs to be involved in this arrangement—the buyer and seller handle it all on their own. You have a right to determine the interest rate, payment schedule, and any penalties that may apply if the buyer defaults. While this allows you, the seller, to offer whatever terms you like to get your home off the market more quickly, it also means you’ll take on all the risks of a lender yourself. Depending on your financial position, this may or may not work for you.

No matter what the terms are, it’s a good idea to have an attorney review the contract before you sign.

Do you need to sell your home off of the market quickly? While it may cost you in the short term, making special offers can help you seal the deal and move on.

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When Is It Worth It to Hire a Home Inspector?

by c21commonweath_ldowling 23. September 2019 12:30

Buying a home is a major commitment, and many people worry they’re making the wrong choice. How can you make sure the home you’re considering doesn’t turn into a money pit after you buy it? Hiring a home inspector can help you spot trouble before it hits your wallet where it hurts. While you may not need to have an inspection, it is one of the most valuable home buying tools you can use.

What does a home inspector do? Put simply, they search for problems that can cost you money. Even a house that looks good on the outside may be hiding many costly and potentially dangerous problems.

The price for a home inspection can vary from one market to another, but it’s typically less than $500. Considering the potential price of home repairs, the cost of a home inspection is money well spent.

What Does a Home Inspector Look for?

A home inspector can search for many issues. Here are just four of the potential problems they can alert you to:

  • Mold and Mildew

Mold and mildew can not only leave ugly marks on your walls and floor but may also be toxic to your family or pets. Once mold and mildew set in, they can be very costly and difficult to remove.

  • Leaky Roof

Very few things are more frustrating than buying a house on a beautiful summer day only to discover that the roof leaks during the first rainstorm. Replacing the roof could cost you thousands of dollars, and it's something that can make a big difference in the price you pay for a home.

  • Plumbing Issues

The pipes that carry water to and from your fixtures live inside the walls and under the floor. When everything works on the surface, it’s easy to forget about what’s happening out of sight.

  • Old Wiring

An older house may have been built with outdated wiring technology that is no longer considered safe, while a newer home could have an issue with shoddy workmanship. In either case, you’re better off knowing ahead of time whether the electrical system has potential problems.

This Isn't the Time to Do It Yourself

You may think you have the skills to spot any potential issues with your new home, but unless you have significant experience in the home construction and repair industry, this job is better left to the professionals—it’s just too difficult to be objective.

How to Find a Good Home Inspector

Most times, your real estate agent or your lender can recommend a home inspector. If you would rather find your own, ask around. You probably know someone who has bought or sold a house recently, so they can be a good source of information.

Some states have certification and licensing requirements for home inspectors.earn about Massachusetts home inspection requirements here.

While hiring a home inspector is your choice, the few hundred dollars you spend on an inspection can save you thousands. It’s a price that is well worth paying.

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Interest Rates' Effect on Property Values

by c21commonweath_ldowling 20. September 2019 13:40

Interest rates, especially the rates on interbank exchanges and Treasury bills, have a profound effect on the value of real estate and many other investments. Because their influence on home values is so visible, many people incorrectly assume interest rates are the biggest driving force in real estate valuation—this leads to poor decisions. As of this writing, 30-year fixed-rate mortgages have a 3.6% interest rate, and the rate is trending down. Many homeowners are waiting for interest rates to decline, hoping to get a better price when they sell. Buyers may hope to purchase a house quickly before prices go up—however, interest rates are only one factor influencing property values.

Interest rates have a significant impact on the economy, influencing property values in various ways. When interest rates are low, buyers may be willing to spend a little more on a home, while higher interest rates can make buyers reluctant.

Supply and Demand Make a Difference

When the market for homes is down, builders can make more money on high-end homes. This can lead to more competition for entry-level homes and drive prices up. When you combine lower interest rates and the higher prices they generate with a short supply of homes, you are looking at a sellers’ market.

Interest Rates Affect Home Values Indirectly

Interest rates don’t affect home prices directly, but their impact is clear. Rising interest rates over a longer period may lead to weaker demand, especially in the lower end of the market. Falling interest rates can lead to greater demand.

It's a Personal Decision

Interest rates can have a powerful impact on home prices, but they are not the only factor (or even the most important one). The current interest rate is under 5%, which is remarkably low historically. If you’re considering purchasing a home, your income, family situation, and plans for the future should influence your decision much more than interest rates do.

Play the Long Game

The current interest rate matters in real estate valuation. Rising interest rates drive prices down and falling interest rates drive prices up, but in either case, it's a long-term proposition.

Interest rates are easy to track and tempting to focus on, but they’re only one of the many factors that influence property values. Do you think the time is right for you to buy or sell your home? Your best move is to speak with a real estate professional first.

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How to Choose the Best Offer

by c21commonweath_ldowling 16. September 2019 15:38

Sellers should consider more than timing and price when choosing between multiple offers on their home. While it’s commonly said the first offer is the best offer, you should also think about a buyer’s financial ability to close the deal, contingencies, and closing costs. With these things in mind, you’re more likely to secure an offer with favorable terms.

Finances

The amount of money a buyer is willing to put down on a deposit is your first clue into an offer’s potential. Serious buyers put down more money up-front when they want to see the deal through. If another buyer isn’t as committed, they may put down a smaller deposit so they can walk away without major financial repercussions.

Also consider whether the buyer is paying with cash or through financed loans. If they’re paying with cash, make sure they possess documentation showing they have the money. Buyers paying with financed loans should be preapproved and meet the lender criteria for getting a mortgage.

Contingencies

Contingencies protect buyers from unforeseen changes, allowing them to back out of a deal if they no longer want to buy the house. If multiple buyers are bidding on your property, compare their contingency offers to avoid any messy situations down the road.

Home Sale Contingency

This is a common contingency clause that says the buyer’s purchase is contingent upon the sale of their own home—they’ll only go through with the deal when their current home sells. Check the length of a prospective buyer’s home sale contingency clause to avoid stalling your own sale. If another buyer doesn’t offer a home sale contingency clause or they include one with a shorter waiting time, choose their offer instead.

Inspection Contingency

Most buyers require you to make certain repairs before they agree to purchase your house. You’ll likely go through another round of negotiations after their inspection. Think about whether the cost of repairs is worthwhile or whether you should wait for a buyer who thinks your home is move-in-ready as is. 

Financing Appraisal Contingency

Loan institutions hire appraisers to make sure a house is worth what a buyer may pay for it. If the appraiser’s price comes in low (which is common during a bidding war), you’ll have to lower your sales price, contest the appraisal, or move forward with another deal.

Closing Costs

Sellers must pay real estate commissions and a plethora of closing costs associated with their sale. Sometimes, a buyer will negotiate paying for a portion of your closing costs if they’re set on purchasing your home. This can go the other way too—a buyer may ask you to pay some of their closing fees. Whatever scenario you find yourself in, make sure you factor in all closing fees before accepting an offer.

Rely on a Professional Real Estate Agent

If you’re not sure how to proceed after receiving your first few offers, get advice from a licensed real estate agent. They can help you compare your offers and negotiate terms so you make the smartest decision.

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Extraordinary Homes Spotlight

by c21commonweath_ldowling 11. September 2019 14:12

Commonwealth Real Estate works with homeowners in these neighborhoods and beyond to sell their breathtakingly beautiful properties. Take a glimpse into some of our most luxurious and attractive properties located in and around Boston and along the Cape.

55 Love Lane, Weston ($10,000,000)

This magnificent seven-acre compound, close to horse and walking trails, would make a great home for nature lovers. A tree-lined driveway leads to the main house, guest and carriage house, and pool. Upon entering the primary house, you’ll see large dining rooms and living rooms surrounded by French doors, along with windows overlooking the grounds. There are three-season porches on multiple sides of the house, so you’ll always be able to enjoy a lazy day (or night) outside. The master wing is located on the second floor, with two baths and a sleeping porch, alongside three additional en suite bedrooms. You’ll find a billiard room, balcony, office, and two additional bedrooms and baths on the third floor.

200 -202 Beacon 1 & 3, Boston ($9,995,000)

Architect Guy Grassi and interior designer Bunny Williams designed this beautiful maisonette apartment for homeowners who love to entertain. A 40-foot-wide living room with an attractive fireplace and views of the Charles River will encourage guests to stay a while longer, as will the formal dining room with floor-to-ceiling windows that sits adjacent to an eat-in kitchen and a beautiful library. The master bedroom level has a private home office with a large master bath, fireplace, jacuzzi, and walk-in closet. Best of all, there’s a stone patio on the roof for parties that cater to 100-plus people!

55 Leicester Street, Brookline ($9,995,000)

With high ceilings and a floating main staircase, this architecturally stunning home is a piece of art. Its dining room seats over 20 guests, and the master bedroom includes 20-foot windows, a balcony, a large en suite bath, its own loft, and a private office. This seven-bedroom masterpiece is perfect for both formal parties and secluded nights in.

558 Fox Hill Road, Chatham ($9,995,000)

Escape to the Cape at this spectacular waterfront property with views of Crows Pond. The home includes five bedroom suites over three levels, with a built-in elevator to take you to each floor. The main level includes a custom kitchen, dining room, study, and master suite and laundry, while the lower level includes a sauna, stone wine cellar, entertainment and exercise room, and changing room with a custom kitchen.

Search for Properties

Berkshire Hathaway HomeServices Commonwealth Real Estate is proud to showcase beautiful homes, condos, and apartments of all sizes and price ranges in Boston and beyond. Whether you’re in the market for a new home or just want to see what’s available, check out our property search to peruse our listings.

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The Best Greater Boston Neighborhoods for Raising Kids

by c21commonweath_ldowling 9. September 2019 16:02

Boston’s city center is ideal for work and play, but it may not be the best place to raise a family. The crowded streets and rising housing prices have encouraged many families to move to the city’s surrounding suburbs. If you want to find a new place to live away from the hustle and bustle, check out this list of calm and convenient residential neighborhoods in the Greater Boston area.

Family-Friendly Boston Suburbs

HomeSnacks looked at 69 places in Massachusetts to find out which Boston neighborhoods are the most fitting for families. They took data like crime rates and school quality into consideration while building their list, making sure each neighborhood offers a quiet and safe place for kids to learn and grow.

Wellesley

Wellesley is an academic town, home to Wellesley College, Babson College, and parts of Massachusetts Bay Community College. At 17 miles from Boston, it’s still close enough for parents to commute to the city for work and return to a peaceful neighborhood at the end of the day.

Milton

Located in Norfolk County and just 10 miles from Boston, Milton continues to be one of the “best places to live” according to Money Magazine. Its quaint downtown and old country homes make a picturesque setting for new family memories.

Needham

Many restaurants, coffee shops, and parks are sprinkled throughout this Boston suburb, providing plenty of casual entertainment for its residents. Needham is also home to many highly rated public schools.

Winchester

Located a little less than nine miles from Boston, this bedroom community is the wealthiest municipality in Massachusetts, making it a comfortable place to raise kids.

Arlington

A suburb of Cambridge, Arlington boasts an excellent public school system. Its downtown restaurant scene offers a variety of cuisine, and active families can kayak, fish, or paddleboard in the local pond.

Newton

This city is a patchwork collection of 13 villages located in Middlesex County. Newton was one of the first suburbs to be established outside of Boston in 1688 and is home to the famous Boston College.

Explore Boston’s Best Neighborhoods

When it comes to living in family-friendly neighborhoods with great school systems, native and future Bostonians are quite lucky. This list doesn’t cover all the beautiful towns surrounding Boston, it’s a good place to start while looking for your new family home.

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Where to View the Fall Foliage

by c21commonweath_ldowling 4. September 2019 11:12

In late September through November, Boston transforms into a beautiful splash of red, orange, and yellow—it’s why fall is one of our favorite times of the year in Beantown. Whether they’re new to the city or they’ve lived here for many years, residents always get a kick out of watching the leaves turn into a colorful collage. Here’s where to get a glimpse of some of the city’s most beautiful fall landscapes.

Public Garden

Head to Boston’s Public Garden to witness the first round of changing leaves. The small, ornamental Japanese maple trees are some of the first to turn each season, showing splashes of bright red hues. The garden contains clusters of trees and shrubs from around the world that change color at slightly different times, so onlookers can see a varied display. Look for the brass labels with botanical names to identify the trees you’re looking at.

Boston Common

Did you know Boston Common is spotted with 700 oak, beech, chestnut, maple, and elm trees? Some of them change color later in the season, allowing visitors to enjoy a range of colors all through November—sometimes December. Spanning 44 acres, this historic park is a great place to spend a day strolling with coffee or cider in hand.

Harvard Yard

You can do much more than leaf peeping here. Amble through the commons to see the John Harvard Statue, take a Harvard walking tour, and check out the Harvard Museum of Natural History to get the full college experience—taking in the school’s surrounding beauty is a plus!

The Esplanade

We love exploring the beautiful fall foliage at the Esplanade on foot or by bike. The park and pathways run along the Charles River from Beacon Hill to Back Bay and beyond, so you’ve got plenty of territory to cover if you want to make a day of leaf peeping.ou’ll also have the pleasure of seeing the trees’ images reflected in the water.

Go on a Duck Tour

Take a 70-minute excursion around the Charles River Basin on one of Boston’s famous Duck Tours. The leaves reflect off the Charles River to give viewers a breathtaking view of the river and city at large.

Enjoy a Cozy Fall Season

Autumn is a highly anticipated season for those who love to watch the leaves change color. Whether you’re visiting from another part of the country or you call Boston home, we hope you enjoy the beginning of fall.

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