Every buyer who is about to close a real estate transaction will receive a copy of the title commitment several days before closing (the signing on documents) to review it.

What is a Title Commitment?

A title commitment contains the terms, conditions and exclusions that will be in the final signed copy of the insurance policy which will be issued by the title company to the buyer after closing. It lists all the details about the property and promises to issue title insurance if all stipulations are met in Section B.

This title insurance policy protects the new owner in the event that an issue might crop up that could affect the ownership title of the property. For the same reason, if the new owner is buying with a mortgage, the lender will also require one known as a lender’s policy.

The title commitment consists of:

• Schedule A: legal description of the property, sale price, loan amount, lender details and the names of the buyers and sellers.
• Schedule B: requirements (of which all have to be met and include: tax payments, recording the new deed and loan documents, release of liens and proof of identity), exceptions stipulated by the title company and exclusions which the title company cannot cover e.g. government regulations or any arising bankruptcy claims)

What are buyers protected from and how?

Some deeds could be claimed by heirs, be forged or they could have been executed under false or expired power of attorney. The title insurance searches all public records for any such issues that could prevent a clear transfer.

Why review the title commitment?

The commitment does not guarantee that all issues arising after purchase will be dealt with by the title company. Consider any exceptions carefully; if any issues arise over any of these you will not be able to turn to the title company to solve them.

It is best to have the title commitment read by your attorney to ensure that you completely understand the exceptions, and which terms are unacceptable. This will avoid any nasty surprises at a later date.

Buying a home is big deal! I counsel my buyers so they are well-informed and comfortable. Think of me to be your trusted REALTOR® for your next purchase in the Chicagoland area. 

The purchase of a new home means a long-term commitment of repayments to a mortgage lender. This can be anything from 15 to 30 years. It is vital to do some homework before choosing who you take your business to.

If you are a first-time borrower, you will need to find a lender that has a staff of professional and well-trained people to guide you through the process. This will be made easier if you ask around; family members, friends, or your trusted REALTOR® (like me!) are usually best.

Talk to at least three lenders to get an idea of the interest and the fine print pertaining to the loan agreements. Learn what types of mortgages are available and the specifics of each type.  Don’t be afraid to ask questions and question anything that does not seem right; especially where closing costs and fees are involved.

These 5 questions are essential:

1. How do they communicate with clients and how fast do they respond to messages?
2. How long will the process of preapproval, appraisal and closing take?
3. How much will the down payment be?
4. What fees will you be responsible for and will they waive any of these?
5. If no waiving for fees, can the fees be added to the mortgage?

Always check the lenders credentials and make sure that they have a good professional standing before making your choice. The state’s department of banking will have a list of credible mortgage bankers and so will the division of real estate.

If the lender is not state-regulated then a good place to look at their record would be with the local office of the National Association of Mortgage Brokers or the Better Business Bureau. The Library of Congress has an index of all state and local government websites to make your search easier.

Remember: Even though it is important to find a good lender, a lower interest rate is just as important when taking into consideration how much money you can save over the lifespan of the loan.

As a Chicagoland REALTOR® for 30+ years, my clients and I have worked with many lenders. I understand how critical the loan process is. Here are two lenders I refer with confidence. Please mention Joanne Metz when you give them a call.

Ernie McBrearty, Main Street Mortgage, Inc.

630 529 1009 (Office)

630 302 1511 (Cell)

One Tiffany Pointe Suite 204

Bloomingdale, IL 60108

Linda Hanson. Wells Fargo

Home Mortgage Consultant - NMLSR ID 442632

847-240-2346 (Office)

708-278-5501 (Cell)

1100 E Woodfield Rd Suite 420

Schaumburg, IL 60173

The traditional home sale process involves taking several steps and meeting milestones before a successful closing.  These steps include financing approval, the home inspection stage, gaining clear title, and more.

In this post I discuss the ‘home sale contingency’. This is a common, yet more complex, and not always easily understood contingency.

What does having a home sale contingency mean?

It means that the buyer who has approached the seller with an offer is still trying to sell their current home, has not closed on it yet, and needs time before continuing with the purchase. The buyer will make the seller a purchase offer and the seller accepts subject to them selling their present home first. The most common home sale contingent offers are:

• The property will stay on the market but the buyer will have a negotiable timeframe of a first-right-of-refusal notice to act on if the seller receives a better offer. The time will be agreed on in advance and can be anything from 24 hours to a few days. If the seller has another offer the buyer has that amount of time to remove the contingency or then the seller has a right to cancel the contract and return any deposit that has been placed.
• The seller takes the property off the market and gives the buyer a time frame for selling their existing home. If the buyer has not managed to sell by the end of the allotted days the buyer can cancel the contract, receive the deposit back and the seller will have to find another buyer.

If you are the buyer with a contingency it might be a good idea to be prepared with the financing if you don’t want to lose the home in the event of not having sold your existing home in time. 

Once contingency is removed (according to the terms agreed upon), the seller will need proof that the buyer has the funds available to close.

Contingencies of this type can get complicated, as there are expectations, and timetables to consider. I understand the intricacies involved and help my clients from the negotiation stage, to the close table, and beyond.

Remember the five keywords to a quick sale: De-clutter, Repair, Update, Clean and De-personalize

Curb Appeal – as potential buyers arrive to view your home, outdoor areas are the first to create impressions. Your house number must be visible from the road and you should have a nice mail box. The garden must be neat, with trimmed lawn, orderly and colorful flowerbeds; trees and shrubs should be well trimmed and tidy. Clean all paths, walkways and driveways. Patio furniture must be dust free, add cushions, a few lanterns, pots with attractive plants and remove cobwebs on the patio area.

Walls, doors and windows - Fill in cracks and repaint tired looking walls, both interior and exterior. Prefer neutral colors and adjacent rooms should be painted in the same color to make them look more spacious. Paint any doors, windows and gates that have faded. Your front door should be welcoming. Make sure windows are spotless and torn screens replaced. Remove any personal portraits and photographs from your walls and add art that matches your décor.

Kitchen and Bathrooms - can often make a home look dated and if you are going to spend any time or money do it on these. They should be spotless, especially the tile grouting, around basins, tubs and the kitchen sink. Fix leaks and replace any broken toilet seats. Clear countertops of personal items in the bathroom and keep the kitchen countertops clear of clutter. Give the bathroom a luxurious feel by putting out a few good soaps, aromatic candles and fluffy towels. Old kitchen and bathroom cupboards can be modernized by painting them over or changing knobs.

The Rest of the House - Living areas must be neat and uncluttered. Keep your color scheme neutral and remove excessive furniture to give a feel of spaciousness. Strategically placed lamps will give rooms a welcoming glow. Display a few tasteful items on the coffee table; a few magazines, a board game or tea service. Set the dining room table with a good dinner service and let potential buyers get the feel of how it will be like to entertain.  Bedrooms should be neutrally decorated. Turn an unused bedroom into an interesting hobby room. Put personal items away and make sure that cupboards look more spacious. Remember that these areas must be clean and all carpets freshly washed.

Final touches - Change any burnt light bulb and all light switches must match and be wiped clean. Check that the doorbell works!

Included in my listing services is a walk-thru of your home and a discussion about staging for success. It’s never too early to have a smart conversation about selling your home. Give me a call when are in need of expertise!

It’s tempting, I know! You are web-savvy and have a basic understanding on how to sell a home, so why not go ahead and list your home yourself and save the commission you would pay a REALTOR®?

Let’s take a close look at your options. As a 30+ year professional REALTOR®, I seen a few FSBO sales work out fine. I have seen many more that did not. There are so many variables that can affect a home sale, having the expertise to avoid, and then navigate through, them is critical to a successful closing.

Here are a few more reasons to always use a REALTOR® to sell your home.

Net Profit

The average house usually sells for more when sold by a REALTOR®, allowing the seller to make a better profit, even after paying the commission. Factors affecting this include determining your home’s correct market value in the first place, negotiating the terms, concessions and more.

Paperwork

The paperwork involving the sale of a home is detailed and must be completed correctly. You won’t personally have to address contracts, addendum, loan processing with the potential buyer, his attorney, home inspection companies, appraiser, or your bank. Title work is critical and there are often questions a REALTOR® can help you answer.

Marketing

When searching for a home, buyers will most likely use sites such as REALTOR.COM, Trulia, Zillow and others. These databases of homes come from the Multiple Listing Service (MLS) syndication. The MLS is proprietary to real estate licensees only, individual home sellers cannot list their home here. Sites receiving the MLS listings have sophisticated ways to showcase properties and use photographs, virtual tours and marketing principles, which reinforces a faster sale.

Buyer Follow Up

The online sites I mentioned above capture the buyer’s information when they express interest in your home, which a REALTOR® can then follow up on. You simply don’t have the opportunity for broad lead generation this way. Also, timeliness is critical when getting back to a buyer. If you work at all, or have family to care for, dropping what you are doing to respond to an interested buyer can be a challenge.

When you really stop to take these reasons, and more I can share with you, into consideration, it’s make sense to list your home with a REALTOR®.  I’d love the chance to sit down and help you weigh your options, and outline your projected profit. Contact me by phone, text, or email anytime!