Chuck Barry   |   
cbarry3993@gmail.com   |   720-296-6217
http://www.chuckbarry.com

Earnest Money Deposit

Buyers today understand they need a sizable down payment and a strong credit score to secure a conforming home loan. But they must also hold liquid funds for another financial obligation—an earnest money deposit—to be paid when they make an offer on a home.

Earnest money is handed over to the seller’s agent or the title company when a purchase contract is signed. This demonstrates that the buyer is serious about the transaction and is backing it up with cash.

Without this, buyers could simply make offers on many homes, essentially taking them off the market until they choose a favorite. Sellers rarely accept offers without an earnest money deposit.

There is no set amount for an earnest money deposit, so it’s negotiable depending upon your location and current market conditions. If there are multiple bidders, the seller may ask for up to 3% of the asking price as earnest money.

Assuming the transaction results in an accepted offer, earnest money goes toward the buyer’s down payment and closing costs. If the transaction falls through, the buyer may have to forfeit a nominal cancellation fee or more depending on the reasons for the cancellation.

Be sure your purchase agreement outlines the earnest money refund process. Remember, a buyer can lose earnest money through default, which happens when he or she does not perform according to the terms stipulated in a purchase and sale agreement.

Work carefully with your agent to ensure a clear understanding of all the terms and obligations detailed in your purchase agreement.

LED lighting can make a real difference

Many homeowners want to be eco-friendly, yet they worry that making changes in that regard might be costly and time consuming. However, incorporating energy-efficient lighting is a great way to make a big impression with green-conscious (and budget conscious) homebuyers. In fact, studies have reported that 80% of homebuyers identify energy savings and comfortable surroundings as key factors when deciding between listings.

Energy-efficient lighting isn’t just limited to fluorescent tubes or CFLs (compact fluorescent lamps) anymore. LEDs are an energy-efficient light source that began growing in popularity around 2007. LED lighting can be used as accents to better showcase the home’s features. From track lighting over the fireplace to under-counter cabinet lighting and recessed lighting in the hall, LED fixtures can cast dramatic light on your home’s best features, while at the same time, remaining cool to the touch and easy on the wallet.

With its rise in popularity and eco-friendly awareness, LED lights are now also available in budget-friendly bulbs in the most common sizes. It is now easy and very inexpensive to convert all your home lighting to LED resulting in tremendous savings!

Here are some interesting facts about LED lighting:

• Offers the same bright white output as incandescent lighting
• Uses 75% less electricity than standard incandescent bulbs
• Last 50 times longer than standard bulbs, saving you money
• The Department of Energy estimates that replacing regular light bulbs with LEDs could potentially save 190 terawatt-hours annually—the equivalent of lighting over 95 million homes

While buyers can make these simple lighting changes themselves, savvy sellers know that buyers will judge eco-friendly actions in a positive light and may be more inclined to negotiate a deal.

The Trouble with Mold

Mold spores aren’t easy to detect. While some molds are visible and even odorous, mold can also grow between walls, under floors, in ceilings, in the basement and up in the attic. It flourishes in water-soaked materials (e.g., paneling, wallboard, carpet, paint, ceiling tiles), and will survive in most any damp location.

There are countless disputes over mold between sellers and buyers. Both parties should protect themselves up-front. Put a specific mold disclaimer into the real estate sales contract and encourage in the sales contract that the buyer hire and rely upon the buyer’s own independent mold inspection and testing of the home by a certified mold inspector. Conversely, a buyer should ask the seller about mold and hire an inspector to seek it out.

While it’s not the inspector’s job to look for mold, most home inspectors will mention obvious signs of water damage and the possible presence of mold. Because the inspector will poke around in spaces you might not, he or she may see things you wouldn’t. Don’t be shy. Ask whether the inspector saw signs of mold or potential mold dangers.

In some states, real estate agents have a duty to disclose problems they know exist. Appraisers should also notify you of any obvious sign of a mold problem if the value of the property can be affected.

If your home or property has a water, mold, other environmental problem—or if there’s a reasonable suspicion of a problem—you should remedy the water problem, mold infestation or environmental threat prior to even offering the property for sale.

Sellers: Stay or go during a showing?

Sometimes sellers will question whether or not they should be present during a house showing. Sellers mistakenly believe home shoppers will miss important features. They also feel they can help “sell” the property by pointing up the positives.

Most agents would agree that sellers NOT be present when showing your home. There are several reasons you, as a seller, should heed this advice:

• Prospective buyers are uncomfortable having owners hovering or milling about. This can provoke buyers to look quickly without gaining a proper feel for your home
• Providing too much information in a short time can leave a less-favorable impression
• You could actually hurt your cause by calling attention to something buyers aren’t interested in
• If buyers feel like they are being rushed, even though that is not your intention, they are likely going to move on to the next property on their list

Real estate agents are best-suited to showcase your home. They are trained to read buyers and know when, what and how to relay information. Let buyers discover your home’s features at their own pace.

You want buyers to spend as much time as they wish envisioning the possibility of living in your home someday. So do yourself a favor… go to a neighbor’s home, the library or shopping. The inconvenience will be worth it in the long run.