Is Earnest Money Part of Your Down Payment?

A real estate agent calculates the buyer's down payment

A common misconception from homebuyers is that earnest money is part of your down payment. To put it simply, this is not the case. In this blog post, we’ll shed light on more common misconceptions and address key questions that often arise around earnest money and down payments.

1. What is Earnest Money and What is a Down Payment?

   Earnest money is a deposit made by the buyer along with their offer, signaling their serious intent to purchase the property. Your earnest money will be deposited within a few days of your offer being accepted. Your down payment is a larger sum paid at the time of closing, separate from the earnest money.

The down payment is an amount of money a home buyer pays directly to a seller. Despite a common misconception, it is not paid to a lender. The rest of the home’s purchase price comes from the mortgage. Sometimes, a third party or escrow holds these type of funds.

2. Is Earnest Money Part of the Down Payment?

   It’s a common misconception among homebuyers that earnest money serves as the down payment. However, it’s essential to emphasize that earnest money is an upfront payment demonstrating commitment. At closing, your earnest money will be applied to your down payment and dispersed to your lender by the title or closing agent who is managing your escrow account.

3. Does Earnest Money Contribute to Closing Costs?

When a buyer and seller come to a written agreement on a purchase, the buyer typically provides an earnest money deposit. This deposit, also known as a good faith deposit, is commonly held in an escrow account until the closing. Subsequently, upon closing on the home, the earnest money deposit is applied toward the down payment or closing costs.

4. What Is the Minimum Down Payment Required for a Mortgage?

There are different requirements for down payments, depending on the type of home loan you might want to consider. The typical down payment falls between 5%-20%. 

There are different types of home loans, each with its own set of requirements and advantages. The most common available are:

  • Fixed-Rate Mortgages
  • Adjustable-Rate Mortgages
  • Jumbo Mortgages
  • FHA Loans

5. What Happens if the Deal Falls Through?

Unexpected circumstances can lead to a deal falling through, and it’s vital to address what happens to the earnest money in such scenarios when an offer has been signed by both parties. Explaining the protocols involved in determining the fate of the earnest money when a deal falls through is where an experienced agent can be a valuable asset to homebuyers.

Expert tip:

Remember, a well-informed buyer is better equipped to navigate the intricacies of real estate transactions, ensuring a smoother and more satisfying homebuying experience.

Tips to Reduce Closing Costs 

We recommend our clients shop for different service providers to compare costs and find an affordable option to save on closing costs. In this process, negotiation is key to effectively reducing closing costs in a real estate transaction.

Understanding average closing costs in your area will help tremendously when creating a budget and identifying which fees are negotiable. An experienced realtor in your area will be the expert at guiding you through this step.

Bottom line:

In conclusion, understanding the complexities of earnest money and down payments is essential for anyone on the journey of homeownership. By dispelling common misconceptions, prospective buyers can approach the real estate market with confidence throughout the purchasing process.

Interested in buying a home in Northeast Ohio. Connect with one of our experts today to begin your search.

Contact us now!

Useful Resources:


1. How Much House Is Right For You

2. 5 Things To Consider Before Buying A Home In Cleveland

3. Embark on the Journey to Homeownership with The Young Team

Sell First or Buy First? Strategies to Navigate Homeownership

More often than not, when a homeowner considers moving they will have to sell their current home to afford their next one. This scenario has its challenges, but in this post, we will explore the strategies and alternatives to help you avoid any shortfalls.

Whether you’re looking to maximize your budget or maintain control over your expenses, this post aims to equip you with the knowledge you need to navigate the complexities of buying and selling homes.

Why Sell Your House First?

Buying a new home before selling presents challenges, but the financial benefits can outweigh the downsides.

Market Conditions:

Real estate consultant Terry Young emphasizes the importance of selling your previous home first. This approach provides a clearer understanding of your budget for the second home. Additionally, you can use the proceeds from the sale for a cash down payment and other fees.

As 2023 comes to a close, it is evident that the current real estate market favors sellers. Limited inventory and competitive bidding have driven prices up. Consequently, it is wise to consider selling your home before purchasing a new one. This decision allows for a more deliberate sale, effective budgeting for your future home, and improved negotiation leverage. Furthermore, it helps you avoid the burden of carrying two mortgages simultaneously and minimizes the risk of unexpected expenses. 

However, there are drawbacks. Renting a property after the sale may lead to additional expenses and the inconvenience of moving twice.

Sell before buying alternatives:

1. Rent Back:

Negotiate with the buyers to lease your property for up to 60 days, benefiting both parties. You can propose to the buyers of your home that they lease the property to you for up to 60 days. This arrangement allows both parties to benefit – the buyers receive cash back and the sellers get to stay in the home while closing on their new one and moving out.

2. Extended Closing Period:

It can be a risky option to keep the home under contract while seeking flexibility. Extending the closing period means the buyer can still back out, making it the riskiest choice.

3. Consider temporary housing:

Options such as rentals, staying with family or friends, or exploring platforms like Airbnb. In her experience, Young suggests that many sellers choose alternatives like staying with family or friends instead of temporary rentals. Nowadays, with the rise of Airbnb, some sellers opt for this option.

CTA: Explore your options with the expertise of the #1 real estate team in Northeast Ohio. Get a Button: Quote for your home value with confidence.

Buying First? Consider These Tips:

Step 1: Plan Ahead

Carefully plan your property search to save time and money. The longer you spend searching for the perfect property, the more it may cost you in the long run.

Step 2: Budget Review

Being prepared to cover expenses, either in cash or with a second mortgage, is crucial. Getting pre-approved for a mortgage is a vital step that saves time and money. Remember, you can’t rely on funds from selling your current home. So, set aside money for fees like down payments, earnest money, and inspections. These fees can add up to 10% of the total cost of your new home. Make sure to save this amount in addition to your current expenses at home.

Step 3: Review your options

Bridge Loan:

If you need upfront funds for costs, short-term bridge loans can be an option. However, be aware of higher interest rates and the requirement to repay within a year or less. You can ask a borrower to finance your new house expenses, enabling you to sign the contract without selling your current home. Bridge loans are temporary solutions in these scenarios. Just remember, you must repay within a year and interest rates may be higher compared to regular loans.

Apply to HELOC:

A HELOC (Home Equity Line of Credit) allows you to access up to 85% of your home’s value for a purchase. Eligibility is determined by your credit score, mortgage balance, and home value. Consider a HELOC for a flexible financing option.

Key takeaway:

Buying before selling comes with risks, but selling first gives you more control over your budget, expenses, and credit lines. Selling your current home first ensures a smooth and stress-free transition to your next abode. If you decide to buy first, we recommend exploring different credit line options, shopping around, and saving money outside your expenses to cover upfront costs.

Home Appraisals: Everything a Seller Needs to Know

A men is holding a magnifying glass over a house doodle. Real estate home appraisals.

Home appraisals are one of the most important steps in the real estate journey as they determine the market value of your property. Think of it as a bank inspection. Whether you’re a first-time home seller or an experienced homeowner, having a thorough understanding of the appraisal process can significantly impact the outcome.

Let’s begin to describe the key aspects of home appraisals and how you can navigate this crucial step with confidence.

How Does a Home Appraisal Work?

A home appraisal is an unbiased estimate of a property’s fair market value. To calculate the value, a licensed appraiser evaluates various factors, including the property’s condition, location, size, and comparable sales in the area. The process involves an on-site inspection, where the appraiser examines both the interior and exterior of your home.

As part of the appraisal process, the appraiser may require the sellers to make necessary repairs to complete the inspection successfully.

Different Types of Home Appraisals

The various types of appraisals cater to specific loan types, each with its unique set of requirements. Let’s explore the nuances of these appraisals to shed light on what distinguishes them:

1. Conventional Loan Appraisals

Conventional loan appraisals are the most standard and widely used in the real estate industry. Conducted by licensed appraisers, these assessments focus on the property’s overall condition, market value, and comparables. Presenting your home in the best possible light is crucial. This involves highlighting its unique features and recent improvements.

2. FHA (Federal Housing Administration) Appraisals

FHA loans are designed to assist all types of homebuyers.  FHA appraisals, conducted by FHA-approved appraisers, have additional requirements. The appraiser not only assesses the property’s value but also ensures it meets certain safety and habitability standards set by the FHA. Items like peeling paint, mold, faulty electrical systems, or roofing issues may be flagged.

For a detailed comparison of FHA, VA, and Conventional loan appraisals, check out AAFMAA’s insightful guide

3. VA (Department of Veterans Affairs) Appraisals

VA loans are exclusively available to eligible veterans and their families. VA appraisals, performed by VA-approved appraisers, not only assess the property’s value but also ensure it meets the VA’s Minimum Property Requirements (MPRs). These requirements focus on the property’s safety, structural integrity, and overall livability.

Understanding the specific appraisal requirements for each loan type is crucial when navigating the homebuying process. 

Prepping Your Home for Appraisal Success

First impressions matter, especially in the world of real estate. Before the appraiser arrives, take some time to ensure your home is in its best possible condition. Clean and declutter each room, address any maintenance issues, and consider small enhancements that could positively impact the overall impression.

Costs: What Factors Influence the Appraisal Costs?

Understanding the costs associated with a home appraisal is crucial. The fees can vary depending on factors such as the size of the property, its location, and the complexity of the appraisal. Discuss the expected costs with your chosen appraiser upfront to avoid any surprises.

As stated by Cross Country Mortgage, the appraisal process can vary depending on the property features, demographics, and government policies; typically, appraisals cost between $300 and $450, though they can run upwards of $600 or more in some areas. Larger or more complex properties can cost as much as $1,000.

The fees charged by a professional appraiser are partially regulated by federal law, specifically the Dodd-Frank Wall Street Reform and Consumer Protection Act. These fees must be both reasonable and customary within the geographic market to adhere to the regulations.

Navigating the Paperwork

Be prepared to provide the appraiser with relevant paperwork, including recent property tax assessments, floor plans, and any documentation of recent home improvements. Having this information readily available can help streamline the appraisal process.

The Role of Comps in Appraisal

Comparables, or “comps,” play a significant role in the appraisal process. Appraisers look at recently sold properties that are similar to yours in terms of size, features, and condition. Awareness of recent sales in your neighborhood can provide valuable context for the appraiser.

Showcasing Home Improvements

Highlighting the improvements you’ve made to your home can positively impact its appraisal value. Make a list of recent upgrades, renovations, or additions, and share this information with the appraiser. This demonstrates the care and investment you’ve put into maintaining and enhancing your property.

Nevertheless, don’t feel bad if the home value doesn’t come up as you planned with the improvements. According to Realtor.com “If you’re thinking about adding a feature to your home before you have it appraised, ask your real estate agent if it’s worth the cost.”

Discover the upgrades that are truly worth investing in connect with a local expert today!

Honesty is the Best Policy

While showcasing the positive aspects of your home is essential, honesty is equally crucial. Avoid exaggerating or providing false information to the appraiser. Appraisers are trained to spot inconsistencies, and misinformation can negatively impact the appraisal process.

Pro Tip: Enhance Your Curb Appeal:

Enhancing your home’s curb appeal goes beyond aesthetics; it can significantly impact the appraisal value. Consider freshening up your landscaping, applying a new coat of paint to the exterior, and ensuring the entryway is inviting. A well-maintained exterior sets a positive tone for the appraisal process, making a lasting impression on the appraiser. 

Remember, the journey to a successful home appraisal starts at the curb!

FAQs: Factors that Influence Home Appraisals

Curious about what factors could potentially impact your home appraisal? We’ve gathered some commonly asked questions to provide insights into what appraisers may consider during their evaluation, according to The Hadley Team of CrossCountry Mortgages, here in Greater Cleveland. 

1. Will appraisers check the appliances in my home?

Absolutely. Appraisers will scrutinize the condition of your appliances as part of their assessment. Outdated or malfunctioning appliances can hurt your home’s value. As a seller, ensuring that your appliances are in good working order not only enhances the overall appeal but also contributes positively to the appraisal.

2. Does a messy house affect a home appraisal?

Not necessarily. Professional appraisers are trained to see beyond temporary clutter. While a messy house itself may not directly affect the appraisal, it’s still advisable to tidy up personal belongings. A neat and organized home can create a better overall impression, even though the appraisal is primarily concerned with the property’s structural and systemic aspects.

3. Do appraisers take pictures?

Yes, they do. Appraisers commonly capture images of each room during their assessment. These pictures serve as a visual reference for lenders and potential buyers, offering insights into the condition and features of different spaces. It’s an essential aspect of the appraisal process that helps paint a comprehensive picture of the property.

4. What can negatively impact my home appraisal?

Several factors can potentially hinder a home appraisal. Owning a unique home, having outdated appliances or home systems, and structural issues are among the key considerations. Anything in the home that is old, outdated, or not functioning properly may directly impact the appraisal, influencing the overall valuation of the property.

5. If the Appraisal Is Less Than the Purchase Price

If the appraisal comes in lower than the purchase price, it can create challenges. Your lender might counter-offer with a reduced loan amount or decline the loan altogether. This leaves you with limited options. You can choose to accept a lower loan amount based on the appraised value and make up the difference between the sales price and the appraised value out of pocket, which can be necessary in a competitive market. Alternatively, you may be able to negotiate with the seller to adjust the sales price to align with the appraised value.

Bottom line

Approaching the home appraisal process with preparation, transparency, and a proactive mindset can contribute to a more favorable outcome. By understanding the factors that influence the appraisal and taking steps to present your home in the best light possible, you set the stage for a successful valuation.

Useful Resources:

  1. What is a Home Appraisal?
  2. Understanding Home Appraisal Costs: What You Need To Know
  3. How to Make Your Curb Appeal Stand Out in The Greater Cleveland Area
  4. Benefits Of A Pre-Sale Home Inspection
  5. How Often Do Home Appraisals Come In Low?

The Young Team is here to guide you through every step of your real estate journey. 

Stay tuned for more insightful tips and advice on our blog!

Must-Do Home Fixes Before Selling

Home service, repair construction. Fix house background

Selling your home can be an exciting process, to ensure a smooth and successful sale, it’s crucial to address any necessary repairs and improvements before listing your property. In this blog post, we will discuss the key home fixes that every seller should consider. By investing time and effort into these areas, you can increase the value of your home and create a better impression with potential buyers.

According to Opendoor.com, it is important to differentiate between repairs and improvements. Repairs are necessary to maintain the current value of your home, while improvements are optional enhancements that can potentially increase its value. For instance, replacing old, worn-out carpeting would be considered a repair, whereas replacing carpeting that is in good condition with hardwood floors would be classified as an upgrade. Keep in mind that upgrades have the potential to boost your home’s value, while repairs prevent its value from declining.

 1. Structural, Electrical, and Plumbing:

Before putting your home on the market, it’s essential to ensure that the foundation is structurally sound. Address any issues with electrical wiring or plumbing to avoid potential problems during the inspection process. By proactively addressing these areas, you can provide buyers with confidence in the overall condition of your home and streamline the sale.

2. Heating and Cooling:

A well-functioning heating and cooling system is crucial for buyer satisfaction. Make sure that your HVAC system is properly maintained and serviced. Consider cleaning or replacing air filters, checking for any leaks, and ensuring that temperature controls are functioning correctly. A comfortable and climate-controlled environment will leave a positive impression on potential buyers.

Expert tip:

Whenever you need a pro to tackle your home reparations, don’t forget to take a peek at our Verified Vendors List for Cleveland. 

We’ve got you covered with top-notch professionals ready to make your home shine.

If you’re interested in selling your home, connect with one of our experts to begin preparing your home for the market.

Get in touch with us now to learn more

3. Landscaping and Home Exterior:

First impressions matter, and the exterior of your home is the first thing buyers will see. Enhance your home’s curb appeal by tidying up the landscaping, mowing the lawn, trimming bushes, and adding fresh flowers or plants. Repair any cracks or damages to the driveway or walkways. A well-maintained exterior will attract buyers and create a welcoming atmosphere.

Read our 5 tips to enhance your curb appeal in Cleveland, Ohio.

4. Roof:

The condition of your roof is a significant concern for buyers. Inspect your roof for any leaks, missing shingles, or signs of damage. Addressing these issues beforehand will give potential buyers peace of mind and prevent any last-minute negotiations or delays.

Expert tip: 

Ensure you’re well-prepared with this downloadable home maintenance checklist to prevent any surprises when it’s time to sell your property.

Since you will have to disclose any concerns to potential buyers, it is essential to be prepared before these concerns arise. We highly recommend that all our clients have a home inspection conducted before entering the market. This will provide you with a comprehensive understanding of your house’s true condition and identify any necessary repairs.

5. Interior Paint:

A fresh coat of paint can do wonders for the overall appearance of your home. Consider repainting rooms with outdated or bold colors with neutral tones. This allows buyers to visualize themselves in the space and creates a clean and cohesive look throughout the house.

6. Kitchen and Bathrooms:

Kitchens and bathrooms are key selling points for any home. Evaluate the condition of your countertops, cabinets, and fixtures. Consider making necessary repairs or upgrades to enhance the aesthetics and functionality of these spaces. A modern and well-maintained kitchen and bathrooms can significantly increase the value of your home.

Read more in Home Renovations With The Highest Roi

7. Flooring and Carpets:

Inspect your flooring for any damages or signs of wear and tear. Repair or replace damaged tiles, floorboards, or carpets to create a polished and well-maintained appearance. Clean or hire professionals for deep carpet cleaning to eliminate any odors or stains.

Final Thought:

Preparing your home to sell requires attention to detail and a proactive approach. By addressing these essential home fixes before listing your property, you can increase its appeal, build buyer trust, and potentially maximize your selling price. Remember, a well-maintained home sends a strong message to potential buyers that you have taken care of your property and ensures a smooth selling process.

Contact The Young Team today to connect with an agent who will expertly list your home and effortlessly manage all the details of the selling process.

Reach out now! 

Sweet Success: The Young Team’s Pie Day Delight!

PieDay celebrations at The Young's Team Luxury Office

We are excited to share the joy and success of our recent Pie Day event! At The Young Team, we believe in creating meaningful connections beyond real estate transactions. This year, we:

  • Distributed 700 pies across three different pickup locations
  • Donated 50 pies to the local food bank
  • Collected over 1,000 donations for The Rescue Village shelter. 

Part of The Family

This year the response was so heartwarming, better than imagined. We not only celebrated the sweetness of pie but also cherished the bonds we’ve built with our incredible clients throughout the years of service in Cleveland, Ohio.

  “This was the most unexpected and welcome surprise. So nice to be invited to participate. And in all honesty, the Dutch Apple pie was the hit of our Thanksgiving Dinner. Many thanks to the Young Team.”

–Past Client

 A Thanksgiving to Remember

We initiated our day bright and early, aiming to bring joy and gratitude to the families who have entrusted their investments to us all across Cleveland with three locations: Moreland Hills, Rocky River, and Akron. The Young Team takes immense pride in working together to establish an atmosphere of appreciation for all our clients. 

“Top-notch service from everyone we worked with on the team throughout the purchase process of our home and everything regarding Pie Day. Notifications from ordering the pie, directions to pickup locations, and times were great; smooth, easy, and delicious!”

–Past Client

Give & Received

This year, we set out to make a difference. We decided to collect donations for Rescue Village, an organization that resonates with both our team members and past clients, at each Pie Day location. We could not believe the amount of support we received!

On Wednesday, November 22nd, our team delivered over 1,000 donation items to the animals, all thanks to our amazing clients! We have been collaborating with this shelter for our recent events, and this particular one has been remarkably successful. We extend our heartfelt gratitude to all our valued clients for making this generous donation possible. 

“We thought that it was very thoughtful and kind of your “Team” to include us in participating in “Pie” day this year, especially since you sold our house back in April of 2020. It is wonderful to know that we are still part of your family of past clients. Rescue Village is lucky to have you as one of their sponsors also. It was very thoughtful of you to collect donations for the cats and dogs of Rescue Village.”

–Past Client

The Phenomenal Success

Pie Day was not just about distributing pies; it was a celebration of gratitude, community, and the enduring connections we share with our clients. We extend our sincere thanks to everyone who participated and made this event a resounding success. At The Young Team, we look forward to continuing these traditions that bring us closer to our clients and make a positive impact on our community.

Our Immense Gratitude to All Sponsors

Thank you to our sponsors for helping make this year’s Pie Day our most successful yet! Be sure to check out all they have to offer.

Scher Dental Group  | DAG Automotive Group | Cross Country Mortgage | Principle Barbershop DriveDown | Cingel Landscape & Design | Keystone Home Inspection | Epic Insurance Center | Ohio Real Title | Kingdom Home Builders

The Must-Have Toolbox That Every Homeowner Should Own!

Plastic Tool Box with Tools

When owning a property, it is crucial to be aware that maintenance and repairs are integral components that can incur expenses, and having the right toolbox and equipment can save you some money in maintenance or simple repairs if you want to tackle DIY home projects. 

Whether you are an experienced DIY enthusiast or a beginner, having the appropriate equipment can make a significant impact. In this guide, we’ll help you create a toolkit that suits beginners and those looking into home improvement

Having a toolkit at home is crucial for several reasons:

1. Emergency Repairs:

Home emergencies can happen unexpectedly, such as a leaky faucet, a loose cabinet handle, or a power outage. With a toolkit readily available, you can quickly address these issues without waiting for professional assistance.

2. Cost Savings:

   DIY repairs and projects can save you money in the long run. Instead of hiring a professional for minor fixes, having the right tools empowers you to handle many tasks independently, reducing maintenance costs.

3. Convenience:

   A well-equipped toolkit at home eliminates the need for last-minute trips to the hardware store when a small repair or improvement project arises. This convenience allows you to start and finish tasks on your schedule.

4. Home Maintenance:

   Regular maintenance is essential to keep your home in good condition. A toolkit allows you to perform routine tasks like tightening screws, fixing minor leaks, and addressing wear and tear, contributing to the overall longevity of your home.

Read more: 5 Maintenance Tasks Every Homeowner In Cleveland, Ohio Should Know

 

We have selected the top choices on Amazon to expedite your acquisition of the essential toolbox. 

 
Homeowner Carrying Toolbox Outdoors from his home

Basic Toolkit:

Having the appropriate tools is crucial for homeowners and DIY enthusiasts alike. Whether you’re hanging pictures, assembling furniture, or undertaking home improvement projects, a well-equipped toolkit can significantly impact the outcome. Each tool serves a distinct purpose in achieving successful results.

1. Hammer:

   A classic tool that every homeowner should have. From hanging pictures to light construction, a good hammer is versatile and indispensable.

2. Socket Wrench Set:

   Ideal for assembling furniture, fixing loose bolts, and handling various mechanical tasks around the house.

3. Tape Measure:

   Accurate measurements are crucial for any home project. A tape measure is a fundamental tool for ensuring precision in your DIY endeavors.

4. Screwdriver 4 in 1:

   A compact and versatile tool with multiple screwdriver bits, eliminating the need for a cluttered toolbox. 

5. Level:

   Achieving straight and balanced installations is a breeze with a reliable level. Essential for hanging shelves, aligning pictures, and ensuring accurate angles.

6. Flashlight:

   Power outages and unexpected repairs can happen at any time. A reliable flashlight is a must for navigating through dark spaces.

7. Pliers:

Useful for gripping, twisting, and bending. Pliers are essential for various tasks, including electrical work and fixing minor plumbing issues.

8. Utility Knife:

   Perfect for cutting materials like cardboard, drywall, and carpet. A sharp utility knife is a versatile tool for many home projects. 

9. Duct Tape:

   A quick fix for a variety of temporary repairs. Duct tape can hold things together until a more permanent solution is implemented.

Certainly! Here’s a pro tip derived from the above information:

 

Pro Tip: Establish a Maintenance Routine
Maintaining your home is a proactive approach that can save you time and money in the long run. Set aside a day each month for a quick home check-up. Use your toolkit to tighten loose screws, inspect for leaks, and address any minor issues before they become major problems. This regular maintenance routine not only keeps your home in top condition but also allows you to enjoy the peace of mind that comes with a well-cared-for living space. Remember, a stitch in time with your toolkit can truly save nine in potential repairs! 

  Download our home maintenance checklist here  

Intermediate Toolkit – Elevating Your DIY Game:

Are you ready to enhance your home improvement skills? The intermediate toolkit is your gateway to confidently tackling complex DIY projects. As you delve into advanced techniques, these tools will help you expand your capabilities and handle different tasks. 

Let’s explore the essential tools that will empower you to approach projects with newfound capability and professionalism.

10. Tongue and Groove Pliers:

    Excellent for gripping, turning, and holding objects with irregular shapes. A valuable addition for plumbing and mechanical repairs.

11. Nails and Screws:

    Stock up on various sizes of nails and screws. Having a selection ensures you’re prepared for different projects.

12. Multi-Tool:

    Combining multiple functions in one compact device, a multi-tool is handy for different tasks, from cutting to opening bottles.

13. Allen Wrench Set:

    Essential for assembling furniture and tightening or loosening hexagonal socket screws.

14. Cordless Drill:

    Taking your toolkit to the next level, a cordless drill is a powerful and convenient tool for drilling holes and driving screws. You can also pair it with a cordless driver. 

15. Lubricating Oil:

    Keep your tools in top condition by lubricating moving parts. Also, useful for unsticking rusted or squeaky components.

16. Extension Cord:

    Ensure you can reach power sources from a distance. An extension cord is practical for outdoor projects or reaching distant outlets.

17. Toolbox:

    A dedicated storage solution keeps your tools organized and easily accessible. Choose a sturdy toolbox with compartments for efficient storage.

 

Final Outcome 

Building a good toolkit for homeowners is a gradual process, and having the right tools can save time and money. Whether you’re assembling furniture, fixing a leaky faucet, or tackling a more extensive home improvement project, these must-have tools will equip you for success. Invest in quality tools, and you’ll find that your DIY projects become more enjoyable and rewarding.

In summary, having a toolkit at home is important for addressing immediate needs, saving money, maintaining your living space, and empowering you to take charge of your home’s upkeep and improvement. It’s a practical investment that contributes to both the functionality and comfort of your living environment.

 

Other Resources:

  1. 4 Tips To Create An Environment Of Wellness At Home
  2. How To Make Your Curb Appeal Stand Out In The Greater Cleveland Are

Maximize Your Home’s Screen Appeal With These Simple tips

Female real estate agent making a online tour of a home via video chat

In the age of digital dominance, standing out in online searches has become crucial, especially in the realm of real estate. As we navigate the post-COVID-19 landscape, the listing experience has shifted to heavily relying on online exposure. In this blog post, we’ll explain the significance of online listing and provide valuable insights for sellers looking to make a lasting impression in the virtual world.

When considering the advantages and disadvantages of online listing today’s digital era, there are several key points to keep in mind:

Benefits:

One of the major advantages of buyers starting their home search online is the ability to expand your listing to a broader audience. By online listing , you can attract potential buyers from different cities, increasing the chances of finding the right buyer in less time. Additionally, selling a online listing provides convenience for buyers, as they can browse through listings and schedule tours at their convenience. Moreover, online listing platforms are often more cost-effective than traditional marketing solutions, allowing sellers or listing agents to save on advertising expenses.

Drawbacks: 

However, it is important to acknowledge the drawbacks as well. One of the main concerns when selling a home online is the restricted physical interaction between the home and potential buyers. While online platforms provide virtual tours and detailed descriptions, there are certain elements to visiting a home in person that cannot be replicated in a digital format. Additionally, there is a possibility of misrepresentation, as the reliance on online information may not always provide a complete or accurate representation of the property.

Here are some of the recommendations we provide our clients at The Young Team to optimize and elevate the home’s online presence for maximum potential:

2. Declutter, Depersonalize, and Clean:

Before presenting your home online, establish an appealing ambiance by decluttering, depersonalizing, and ensuring pristine cleanliness. A well-organized and neutral environment enables prospective buyers to envision the property as their own.

According to Zillow, depersonalization is “removing items like family photos, collectibles and any other personal objects that say ‘This is my house’ to help potential buyers see your home’s features and imagine themselves living there.”

6 easy suggestions for staging your home to sell quickly

3. Enhance Your Layout for the Camera:

Gain a comprehensive understanding of how your home presents itself on camera. Strategically arrange furniture and decor to accentuate the finest attributes, guaranteeing an aesthetically pleasing layout that translates seamlessly through screens.

Don’t overlook the immense capability of virtual tours in offering potential buyers a comprehensive glimpse into the amenities and lifestyle your home has to offer.

Follow these 5 Must-Know Tips From Real Estate Photographers For Sellers to boost your home’s screen appeal 

4. Employ the Services of a Professional Photographer:

A picture holds tremendous value. Make a wise investment by hiring a professional photographer who can skillfully capture high-quality images that present your home most favorably. The quality of visuals greatly influences the perception of potential buyers.

Portrait of happy female real estate agent.

PRO TIP:

Seek an experienced professional in Real Estate Photography to boost your home’s screen appeal

Contact our incredible Real Estate team to learn how our in-house photographer can showcase your home in its best light! 

5. Explore Virtual Staging:

Virtual staging enables digital furnishing and decoration of vacant spaces, helping buyers envision the potential of each room. It offers a cost-effective approach to enhance the attractiveness of your home online.

6. Incorporate a 3D Virtual Tour:

Enhance the buyer’s experience with an immersive 3D virtual tour. With the help of this cutting-edge technology, buyers who have a busy schedule or live out of state can get a good sense of the home’s layout and will be more likely to submit an offer if they schedule a tour.

7. Write a Gripping Listing Description:

Create a captivating listing description that accurately showcases the distinctive features and advantages of your home. With meticulously crafted language, paint a compelling narrative that effortlessly resonates with prospective buyers. 

From the architectural design to the interior spaces, every home’s distinctive aspect must be featured in your property’s description. Whether it’s the breathtaking panoramic views, the state-of-the-art amenities, or the manicured gardens, every aspect of the home that would be considered a selling point to a buyer should be mentioned. 

8. Promote your home on online platforms and social media.

Maximize the visibility of your home by harnessing the power of various online platforms. By partnering with a top real estate team, sellers can take full advantage of popular social media platforms and third-party listing sites to reach a wide range of potential buyers. 

By leveraging a partnership with a top real estate team, you can significantly increase the chances of attracting interested individuals and ultimately selling your home more efficiently. Check out our simple guidelines to improve your marketing strategy for your home to get a glimpse at what we recommend to our sellers.

Bottom line 

To effectively stand out in today’s crowded digital marketplace, sellers must master their home’s online presence. By implementing these strategies, maximize your home’s visibility, capture the imagination of potential buyers, and embark on a successful journey into the virtual real estate world. As we adapt to the changing landscape of real estate in the post-COVID-19 era, these practices become game-changers for sellers.

It’s time to make a smart move and partner with The Young Team who knows the ins and outs of the real estate game.

Embark on the Journey to Homeownership with The Young Team

Happy young couple receiving the keys of new house while sitting at the real estate agent office.

The Young Team is your trusted partner in your journey to homeownership. We understand the significance of buying a home in Greater Cleveland, and we are here to guide you every step of the way. In this post, we will provide valuable insights and tips to help you confidently navigate the process in three simple steps. From obtaining pre-approval to planning for your future and understanding down payments and closing costs, we are committed to ensuring your homebuying experience is informed, exciting, and stress-free. 

Let us delve into turning your dream of homeownership into a reality:

 1. Get Preapproval: The First Step Towards Your Dream Home

To initiate your journey towards homeownership, obtaining a mortgage preapproval is of utmost importance. It not only provides you with a comprehensive understanding of your budget but also enhances your competitiveness as a buyer in the real estate market.

Why Preapproval?

– Budget Clarity: Understand your purchasing power and establish realistic expectations.

– Competitive Edge: Sellers favor buyers with preapproved mortgages.

– Streamlined Process: Speed up the buying process when you find your dream home.

Pro Tip:

 Partner with a trusted mortgage advisor to explore the best preapproval options tailored to your financial goals.

Start your home-buying process with us today!

2. Future Financial Decisions: Planning Beyond Your New Home

Owning a home is not just a milestone, but the beginning of a journey towards building a secure future. At our team, we strongly believe in guiding our clients to thoughtfully consider the broader financial landscape and make strategic plans that align with their long-term goals. 

By taking into account factors such as investments, savings, and retirement planning, we help our clients lay a solid foundation for financial success and peace of mind.

Think Beyond the Mortgage:

– Family Planning: Contemplate how homeownership fits into your future family goals.

– Investment Opportunities: Discover avenues for supplementary investments alongside your home, and assess your ability to make timely payments for your home.

– Budget for Expenses: Anticipate and plan for future expenses beyond the initial home purchase.

Pro Tip:

 Consult with a financial advisor to align your homeownership goals with your long-term financial strategy.

Watch Out For These Environmental Factors When Buying A Home In Ohio

 3. Down Payments and Closing Costs: Navigating the Financial Landscape

Having a comprehensive understanding of the financial aspects involved in purchasing a home is of utmost importance. The Young Team is dedicated to providing expert guidance and support throughout the intricate process of managing down payments and closing costs.

The Lowdown on Down Payments:

– Financial Preparation: Ensure prudent financial planning by saving for a down payment that aligns with your budget.

– Loan Options: Discover mortgage options tailored to your unique financial situation.

Decoding Closing Costs:

– Budgeting: When planning your home purchase, it is important to take into consideration the inclusion of closing costs.

– Transparency: The Young Team prioritizes transparency by clearly outlining all associated costs in collaboration with our mortgage partner, CrossCountry Mortgage.

Pro Tip:

 Work closely with our team to get a comprehensive breakdown of expected costs, ensuring a smooth and transparent transaction.

At The Young Team, we believe that your journey to homeownership should be informed, exciting, and stress-free. By considering preapproval, future financial decisions, and understanding down payments and closing costs, you’re setting the stage for a successful and fulfilling homeownership experience.

Ready to take the plunge? Contact us today, and let The Young Team turn your homeownership dreams into reality!

Start your home-buying process with us today!

Useful Resources:

For more information about the home-buying process, including Tips to ensure the best deal and prepare to move to your new home, visit our blog.

Boost Your Credit Score: Achieve a Rapid Increase to 700!

Report Credit Score Banking Borrowing Application Risk Form

A solid credit score can unlock numerous opportunities, from your dream home to an investment property. Establishing a robust credit foundation is crucial. In this post, we will guide you through simple steps to effectively build and maintain an outstanding credit score.

Why is it important to establish credit?

Before we dive into the steps, let’s understand why having good credit is crucial. A solid credit score not only enhances your eligibility for mortgages and loans but also influences the interest rates you’ll receive. It’s a financial passport that can pave the way for your real estate endeavors.

How long does it take to build a good credit score?

Building credit is a gradual process, and the timeline varies for each individual. On average, it may take six months to a year of responsible credit behavior to start seeing improvements. 

What constitutes a credit score that is considered respectable?

A good credit score is a numerical representation of an individual’s creditworthiness, providing lenders and financial institutions with a quick assessment of the likelihood that a borrower will repay their debts responsibly. 

The credit score range commonly used is 300 to 850, with higher scores indicating stronger creditworthiness. Typically, a credit score of 670 to 850 is considered good, reflecting a track record of responsible financial behavior such as timely payments, diverse credit types, and a favorable credit utilization ratio.

With that being stated, let’s begin to break down different approaches  to improving your credit score: 

Open a secured credit card

One great way to begin your credit journey is by opening a secured credit card. It’s a responsible way to build credit since you use a secured deposit as collateral. Make sure to use the card responsibly—by paying your balances on time and in full each month—to maximize the benefits of a secured card.

It is imperative to highlight that opening a credit card is like acquiring a traditional loan in the short term that can be utilized and repaid monthly. Nonetheless, it is crucial to recognize that maintaining a contingency plan can have both advantages and disadvantages in certain situations. Therefore, it is important to ensure timely payment of your credit card balance each month to enhance your creditworthiness.

Become an authorized user

Becoming an authorized user is a valuable strategy, especially for those looking to establish or enhance their credit history. However, it’s essential to approach this step with transparency, communication, and a long-term credit-building mindset.

Commonly known as Piggyback, riding on someone else’s credit and becoming an authorized user on their account can help you improve your score. 

When you become an authorized user, you gain permission to use someone else’s credit card. However, as an authorized user, you are not legally responsible for repaying any balances incurred on the card. This arrangement allows you to benefit from the primary account holder’s positive credit behavior without the financial responsibility.

Pro tip:

Ensure it’s a trustworthy individual with a positive credit history.

Keep a low balance

By focusing on keeping a low balance on your credit cards, you not only enhance your credit score but also demonstrate to lenders that you are a reliable borrower capable of managing credit responsibly. This step, combined with other credit-building practices, strengthens your overall financial profile.

Strategies for Keeping Balances Low:

Regularly monitoring your credit card balances and setting up alerts for approaching credit limits can help you stay mindful of your credit utilization. Consider making multiple payments throughout the month to keep balances in check, especially if you use your credit card frequently.

Credit Utilization Ratio Explained:

The credit utilization ratio is calculated by dividing your credit card balances by your credit limit. For example, if you have a credit card with a $1,000 limit and a balance of $300, your credit utilization ratio is 30%. Keeping this ratio below 30% is generally recommended for maintaining a positive impact on your credit score.

Consistency is Key:

Consistently maintaining a low credit utilization ratio showcases financial discipline and responsible credit management. This commitment to keeping balances in check contributes to a positive credit history over time.

How many credit cards are suggested for a good credit score?

While the number varies, having a mix of credit types can be beneficial. Start with one or two credit cards and manage them wisely.

Set up automatic bill payments

Timely bill payments are essential for establishing a robust credit history. To ensure payment consistency, it is prudent to consider setting up automatic payments or reminders. Doing so can maintain a favorable credit standing while mitigating any potential disadvantages.

Request a credit increase

As your credit history improves, it is advisable to consider requesting a credit limit increase. This can have a positive effect on your credit utilization ratio.

Keep a savings account

Establishing a savings account demonstrates financial stability, which can indirectly impact your creditworthiness.

Open a second credit account

Diversify your credit portfolio by opening a second credit account, such as a different type of credit card. Follow these simple tips to choose the best fit for your credit:

How to select the ideal Second Credit Card

Are you looking to boost your cashback on fuel or groceries? Planning a new adventure and looking to rack up points or miles for every dollar spent? Fancy some hotel discounts or travel perks? Here are the top picks according to Forbes.com

Cash Back:    

Our recommendation is to start your research with cards that offer 1% or more cashback, which provides an excellent choice to use on gas, groceries, or any other purchase. 

Travel Rewards:

Consider selecting a credit card that provides mileage rewards per point or purchase. Look for cards that grant access to VIP lounges both domestically and internationally, enhancing your travel experience.

0% Introductory APR:

The Annual Percentage Rate (APR) is the interest rate applicable to any outstanding balance on your credit card. Certain credit cards come with variable APRs, meaning the rate can fluctuate, either increasing or decreasing.  Go for the ones that qualify for a balance transfer. Here are the top 13 credit cards with a 0% APR to consider, as recommended by CNBC.

Open a credit builder or secured loan

Experts like Experian recommend debating the choice between a credit builder loan and a secured credit card as strategies for building or rebuilding credit. 

The key differences between the two options fall into helping individuals make an informed decision. Both credit builder loans and secured credit cards are designed to assist those with limited or damaged credit histories. A credit builder loan involves borrowing a small amount, typically deposited into a savings account, with the borrower making fixed monthly payments. In contrast, a secured credit card requires an upfront security deposit, and the cardholder can use it like a regular credit card, with their payment history influencing their credit score. 

We advise readers to carefully consider factors such as their financial goals, preferences, and the potential impact on credit scores when making a decision between these credit-building options.

Sign up for free credit reporting tools

Stay informed about your credit progress by using free credit reporting tools. According to AnualCreditReport.com, regularly monitoring your credit report allows you to address any discrepancies promptly.

Monitoring your credit report is an essential part of maintaining good credit. You can request a free copy of your credit report from AnnualCreditReport.com, which will show you all relevant information associated with your accounts, including total debt, payment history, accounts in collections, and more. Make sure to review it regularly for errors that could hurt your score.

Frequently Asked Questions (FAQs)

How often should I check my credit score?

  Regularly monitoring your credit is advisable. Aim for at least once a month to catch any discrepancies early.

Can closing a credit card hurt my score?

Closing a credit card may impact your credit utilization ratio, so consider keeping it open, especially if it’s your oldest account.

How long does negative information stay on my credit report?

  Most negative information, like late payments, stays on your credit report for seven years. Bankruptcies can linger for ten years.

To sum up:

A good credit score opens doors to favorable interest rates on loans, credit cards, and mortgages, making it a crucial factor in financial success and access to various opportunities. It serves as a testament to an individual’s financial responsibility and plays a significant role in shaping their ability to achieve important milestones such as homeownership or Real Estate investments.

Building a good credit score is a journey that requires patience and discipline. By following these ten steps and incorporating good financial habits, you’ll be well on your way to establishing a credit score that opens doors to real estate opportunities in Cleveland.

Read more than 1,000 5-star experiences on Google that have certified

The Young Team as Cleveland’s #1 trusted real estate team! 

Reach out to us today and find your perfect home!

Debunking 5 Common Myths Of Cleveland’s Real Estate Market

Man holding Myth and Fact balance

We are experiencing an unprecedented real estate market across the nation, which means there are some common myths and misconceptions floating around that can affect buyers’ and sellers’ decisions. In this blog post, we will debunk these misconceptions and explain what it’s actually like to navigate the current real estate market in Cleveland.

According to a recent Zillow survey of real estate agents, would-be buyers and sellers commonly have misconceptions about the future state of home prices, the probability of a bidding war, how fast their home will sell, and more.

1. Myth: The Asking Price is Non-Negotiable

One common misconception is that the asking price in a seller’s market is set in stone. However, negotiations still play a crucial role. Buyers may assume they have no room to negotiate, but understanding the market dynamics can empower them to make informed offers and secure a favorable deal.

We recommend buyers rely on an expert agent in their local real estate market to help them navigate writing an offer in a seller’s market. A local expert will understand all the intricacies of the area a buyer is looking in and will be better able to guide them to win the home they want. 

On the sell side, partnering with an experienced agent will play a huge role in the success of your home sale. An experienced agent will be able to walk you through multiple scenarios of how to sell your home based on current market conditions and buyer behavior. They will also help navigate difficult negotiations and guide you through to the final closing process. 

2. Myth: Homes Sell Themselves – Minimal Effort Required

While it’s true that homes may sell faster in a seller’s market, sellers can still focus on preparation and presentation. Quality marketing, professional photography, and staging remain crucial for attracting buyers and maximizing the property’s value.

According to Yoder Real Estate, in a seller’s market, where homes may sell quickly, sellers should not overlook the importance of preparation and presentation. Even though speed is an advantage, it doesn’t negate the need for quality marketing and staging. By investing effort into these areas, sellers can ensure a successful and lucrative transaction in any market condition.

Get your hands on our Home Maintenance Checklist now to prevent any unforeseen surprises when it comes to listing your home.

Button: Download it today!

Useful Resources:

5 Must-Know Tips From Real Estate Photographers For Sellers

Effective Marketing To Attract Potential Buyers

Sell Your Home Faster With Virtual Tours!

Pro Tip: 

“If you want to sell in today’s market, overcome the uncertainty in buyers and make sure to price your home correctly”

The Royal Gazette

3. Myth: Buyers Have No Say in a Seller’s Market

While it’s true that a seller’s market can be challenging for buyers, it’s important to remember that they still have a voice in the process. By staying informed about market conditions and trends, buyers can make strategic decisions and negotiate effectively. Additionally, partnering with an agent who has access to off-market opportunities can make a huge difference when looking for a home in today’s market.

With the right knowledge and guidance, buyers can navigate a seller’s market with confidence and find their dream home.

4. Myth: All Sellers Receive Multiple Offers

In a seller’s market, it’s not guaranteed that every property will receive multiple offers. While factors like pricing, condition, and location are still significant, there are other considerations to keep in mind. 

For instance, the property’s curb appeal, marketing strategy, and timing of the listing can also impact its desirability. Collaborating with a knowledgeable real estate agent can help sellers navigate these variables and determine the best approach to attract potential buyers.

Discover the current value of your home today!

5. Any renovation can be added to the Home Price:

When it comes to adding up renovation costs and setting the asking price, sellers often have a soft spot for the improvements they’ve made. However, it’s important to keep in mind that not every change will yield a significant return on investment. Sometimes, what may seem like a renovation is simply regular maintenance. If you’re curious about which improvements are worth considering, expect those fixes, and chat with your agent, who will advise you on which renovations carry the highest return on investment.

Useful Resources:
How To Make Your Curb Appeal Stand Out In The Greater Cleveland Area

Home Renovations With The Highest Roi

Key Takeaways:

  • Cleveland’s seller’s market offers exciting opportunities, but it’s vital to separate fact from fiction. 
  • By understanding and debunking these common myths, both buyers and sellers can navigate the market more confidently and make informed decisions. 
  • Stay informed, work with experienced professionals, and embrace the nuances of Cleveland’s dynamic real estate landscape, are your keys to a successful deal.