7 FREQUENTLY ASKED QUESTIONS ABOUT TITLE INSURANCEAPRIL 30, 2015 BYTOM JOVANOVSKI

What is title insurance? 
Title insurance is a contractual obligation between you (and/or your lender) and the title insurance company, wherein the title insurer provides protection (effective as of the date the title insurer issues the policy) against future losses that might result from a variety of possible title defects or encumbrances.

An insurance policy-protecting against loss should the condition of title to land be other than as insured.

A principal purpose of title insurance is to eliminate the title risk associated with a real estate transaction. This means that the title company will review the transaction to seek to identify and eliminate any potential title risk. The objective is to identify and eliminate title risks which may be present and to provide the insured with a policy of title insurance which provides protection in the future there are no problems which exist on or before the effective date of the policy of title insurance other than those identified in the policy. Unlike most insurance, title insurance only charges a single premium at the date the policy is issued.

Why do I need Title Insurance: 
When you buy a home, or any property for that matter, you expect to enjoy certain benefits from ownership. For example, you expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights you bargain for.

Benefits of Title Insurance: 
The purchaser of real estate needs protection against serious financial loss due to a defect in the title to the property purchased. For a single, on-time premium, which is a modest amount in relationship to the value of the property, a buyer can receive the protection of a title insurance policy. A title insurance policy will cover both claims arising out of title problems that could have been discovered in the public records, and those so-called “non-record” defects that could not be discovered in the record, even with the most complete search.

To the Seller: 
An owner of real property whose interest is insured by an owner’s title insurance policy has the assurance that the title will be marketable when selling the property. The title insurance policy protects the seller from financial damage if the seller’s title is rejected by a prospective purchaser. Also, when the seller conveys with “warranties,” the seller is still protected if the buyer sues because of a breach of those warranties.

What does Title Insurance Cover? 
-Protection from financial loss (up to the face amount of the policy) due to covered claims against your title
-Payment of legal costs to defend against covered claims;
-Payment of successful claims against your title (up to the face value amount of the policy)

What are my chances of ever using my title policy? 
In essence, by acquiring your policy, you derive the important knowledge that recorded matters have been searched and examined so that title insurance covering your property can be issued. Because we are risk eliminators, the probability of exercising your right to make a claim is very low. However, claims against your property may not be valid, making the continuous protection of the policy all the more important. When a title company provides a legal defense against claims covered by your title insurance policy, the savings to you for that legal defense alone will greatly exceed the one-time premium.

What if I am buying property from someone I know? 
You may not know the owner as well as you think you do. People undergo changes in their personal lives that may affect title to their property. People get divorced, change their wills, engage in transactions that limit the use of the property and have liens and judgments placed against them personally for various reasons.

There may also be matters affecting the property that are not obvious or known, even by the existing owner, which a title search and examination seeks to uncover as part of the process leading up to the issuance of the title insurance policy.

Just as you wouldn’t make an investment based on a phone call, you shouldn’t buy real property without assurances as to your title. Title insurance provides these assurances.

The process of risk identification and elimination performed by the title companies, prior to the issuance of a title policy, benefits all parties in the property transaction. It minimizes the chances that adverse claims might be raised, and by doing so reduces the number of claims that need to be defended or satisfied.

Is title insurance as important as homeowners insurance? 
Generally speaking, homeowner’s insurance protects against theft or damage. If a fire destroys your home, you will be able to rebuild or to buy a new house. However, if your property title has defects, you could lose any rights over the house and the property on which it has been built.

This is why it is important to have a great Title company as part of your real estate team.  First Arizona Title agency takes pride in safeguarding every transaction from complicated commercial closings to simple residential cash translations.    First Arizona Title’s reputation for experienced staff, combined with local market knowledge lease to security in your transaction.

Whether you’re about to close on a lovely new house in Chandler for your growing family or a stylish Chandler condo so you can retire, one thing is certain: you’re going to face a variety of closing costs. Insurance, taxes, financing fees, title fees, attorney fees and other costs will need to be paid, and if you’re a savvy buyer you’ll do everything you can to save on them. In today’s post we’ll share three quick tips that can help you reduce your closing costs when you buy your next home. 

• Tip #1: Include Closing Costs in Your Negotiations with the Seller As closing costs are a part of the real estate transaction they’re an excellent item to include in your negotiations with the seller. For example, if you consider that closing costs might be 3 or 4 percent of the home’s value you can try to bring the seller’s asking price down to get those costs included. Or, you may be able to entice the seller with the prospect of a quick sale if they are willing to pay your closing costs in order to get you to sign on the dotted line. 
• Tip #2: Compare All of Your Mortgage Options If you’re using mortgage financing to cover some of the up-front purchase cost of your home you’ll have other closing costs to pay including lender fees, mortgage insurance and more. Be sure to compare all of your options with your trusted mortgage adviser to ensure that you’re getting the best possible deal and paying the least amount in fees and interest. You may also be able to save a bit on your closing costs by choosing a “no points” mortgage. In this type of mortgage you’ll end up saving on closing costs but you’ll be left paying a higher interest rate. Spend a bit of time doing the math to determine the best course of action. 
• Tip #3: Ask About Every Fee You’re Required to Pay Finally don’t forget that you’re the customer and that you have the right to know about each one of your closing costs and why you’re expected to pay them. Being informed about all of the various items in your transaction will help ensure that you’re not paying something you could have avoided. There you have it – three excellent tips for reducing your closing costs when you purchase your next home.  Give Tom or Darby Associate Brokers at Solutions Real Estate  a call @480-442-5540 with any of your Closing cost questions.

Yard Staging in Arizona: How to Stage Your Front and Back Yard to Appeal to Home Buyers

Whether you’re just listing your Chandler  home for sale or you’ve already started entertaining potential buyers, focusing on your “curb appeal” can drastically increase your chances of a quick and successful sale.

In today’s blog post we’ll discuss how to stage your front and back yards in order to make them seem more inviting and welcoming to home buyers.

It All Starts with a Great Lawn

Whether you’re standing on the street looking at the front of your home or you’re on your patio looking out over your back yard, your lawn sets the tone and is one area that potential buyers are sure to focus on.

You’ll want to ensure that your lawn is very well-kept, with no weeds, dandelions or patches of clover breaking up the continuity of the grass or desert scape. You’ll also want your lawn to be a healthy green and looking good.

Use Gardens to Add a Splash of Color

Once the lawn looks incredible, it’s time to move on to your gardens and other landscape features. Gardens are the best way to add a vibrant splash of color to your yard and they can be used to accessorize the front or back of your home to break up the monotony.

Choose flowers or plants that are in season for your area to ensure that they are healthy while potential buyers are driving past and viewing the home. Also, keep in mind that most of the time, less is more; don’t overdo your gardening or you’ll have a small jungle on your hands.

Make Your Backyard Feel as Inviting as Possible

Your backyard will be a major selling feature for many different types of homebuyer – especially those with children. You’ll want to ensure that your backyard feels as inviting as possible. If you have a deck or patio, ensure that you have furniture and your BBQ tastefully arranged so the buyer can picture themselves hosting friends and family.

Staging your front and backyards is just one of the many tasks that you’ll need to take care of in order to prepare your home for a successful sale. For more information about how to prepare your home, contact Tom or Darby today at 480-442-5540 today and they’ll be able to share expertise that is specific to your local community.

FOR RELEASE: IMMEDIATE

Date:  4/30/2014

REAL ESTATE PROFESSIONAL TOM JOVANOVSKI BECOMES MEMBER OF

 MILITARY VETERANS ASSOCIATION OF REAL ESTATE PROFESSIONALS

 

The Military Veterans Association of Real Estate Professionals is proud to announce the addition of our newest member – Tom Jovanovski with Solutions Real Estate in Gilbert Arizona.   By becoming a member of MVAREP, Tom has joined a dynamic group of concerned citizens and real estate industry professionals committed to promoting home ownership opportunities within the military and veteran community.

MVAREP is open to all with members from the real estate community including real estate agents, real estate brokers, lenders, loan officers, title and escrow, home inspectors, insurance representatives, etc.,  as well as concerned citizens and anyone who wants to recognize the sacrifices of military service members including military veterans, active duty service members and national guard members.

MVAREP was formed with many goals in mind.  First and foremost, the main objective will be to promote home ownership within the military and veteran community.  MVAREP will do this by creating and developing programs to educate both the real estate community and general public on the benefits of working with a VA (military) home buyer as well as provide the tools and training for the real estate community to better help and serve members of the military and veteran community.  From there, local and national events will be held with distinguished key note speakers, as well as tools and training provided to all members.

MVAREP was founded by David E. Dion of Solutions Real Estate with offices in both Arizona and California.  David is a Service Connected Disabled Air Force Veteran who served on active duty from 1986 – 1990 and also the Massachusetts Air National Guard from 1990 – 1995.  David himself was recently trying to use his VA Home Loan Guarantee benefit for his own home purchase in Southern California and realized the challenges first hand.  He had made a full price offer (and higher) on more than one home and each time had his offer rejected.  In competitive selling situations, the VA Home Buyer offer is frequently put on the bottom of the pile, or identified as the least desirable offer when compared to a cash buyer, a conventional buyer and even an FHA buyer. 

For more information about Military Veterans Association of Real Estate Professionals (MVAREP), be sure to visit www.MVAREP.org  or email us at info@MVAREP.org.

Contact: David E. Dion – MVAREP Founder – www.MVAREP.org – email at info@MVAREP.org

ST PATRICKS DAY FESTIVAL IN DOWNTOWN CHANDLER

The 6th Annual St. Patricks Day Festival 2014 is taking place on Saturday, March 15th from Noon-Midnight in Downtown Chandler.  You can either purchase tickets at Murphy’s Law in Downtown Chandler, online at MurphysLawAZ.com, or at Ticketleap.com.  

EXPECT TO ENJOY:

•  12pm DJ Q from Mega104.3 will be playing 12pm-5pm
• 230pm Bracken School of Irish Dance performing at 230pm
• 1pm-8pm Bike Masters will be hosting Trike Races and Corn Hole Competitions
• Arizona Fire Service Pipe Band will be performing throughout the day
• 5pm all minors will be asked to leave (turns to a 21+ event only)
• 5pm Chuck E. Baby and the Allstars will be performing 5pm-8pm
• 8pm Triangles Bikini Contest hosted by Mike G from Hot97.5
• 9pm-12am Kung Fu Grip will be be performing
• Blue Moon VIP Tent area (21 and over only)
• Extensive Food vendors participating – From Corned Beef to Burgers to Sandwiches to Desserts
• Fun Activities area to include rock climbing wall, carnival games, face painting/body painting, caricature artist, photo booth by Depoy Studios and the most amazing Dog Show you have ever seen by Dog Training Elite.
• E-Vapor smoking lounge provided by Smoking Vapor
• Kelly Kawasaki will be presenting some of their hot new bikes
• 7th Heaven Calendar girls will be signing their calendars
• Leinenkugal Lodge will be present and pour their libations
• Epic Valet will be providing valet services
• Discount Cab will have lines of cabs waiting to get you home safely
• A whole collection of local artists and craft makers
• Event t-shirts for the memories provided by One Wing
• Fun Glow in the Dark trinkets to really get your green on!

Click Here Check out these homes for Sale near the Chandler St. Patricks Day Festival.  

You found a great Listing agent to sell your home, then a  Buyer submitted an offer that you accepted now that buyer has scheduled a home inspection.  Is that a cost to the seller you ask?  The answer is “no” the cost of a home inspection and pest inspection falls on the buyer in most transactions.

The Seller’s Disclosure Statements you provided to the buyer is an indication, but not a guarantee, of the condition of the property.  Although a residential home inspection is not legally required in Arizona here at Thomas Davis Group Realty we strongly recommend that all purchasers engage a competent residential home inspector and pest inspector to inspect the property and advise the purchaser as to its condition and as to the presence of any wood boring insects.

A good home inspector should inspect the following areas of a home if accessable:

• • Roof, vents, flashings, and trim,
• • Gutters and downspouts,
• • Skylight, chimney and other roof penetrations,
• • Decks, stoops, porches, walkways, and railings,
• • Eaves, soffit and fascia,
• • Grading and drainage,
• • Basement, foundation and crawlspace,
• • Water penetration and foundation movement,
• • Heating systems,
• • Cooling systems,
• • Main water shut off valves,
• • Water heating system,

• • Interior plumbing fixtures and faucets,
• • Drainage sump pumps with accessible floats,
• • Electrical service line and meter box,
• • Main disconnect and service amperage,
• • Electrical panels, breakers and fuses,
• • Grounding and bonding,
• • GFCIs and AFCIs,
• • Fireplace damper door and hearth,
• • Insulation and ventilation,
• • Garage doors, safety sensors, and openers,

The AAR purchase contract contains an inspection contingency provision which allows the purchaser a reasonable length of time to secure these inspections. Purchasers should act diligently, however, because sellers typically agree to such contingency periods of not more than 10 days to after the purchase agreement has been negotiated to allow for these inspections.

Should any of these inspections reveal conditions which were unforeseen or undisclosed during the negotiation of the purchase, purchasers have the right to ask the seller to remedy the problem, give the purchaser a credit for cost of resolving the problem or, in extreme cases, cancel the purchase contract.

Pictures Credit to Matt Jenks Owner of First Step Home Inspectors

So your thinking of putting your Chandler Arizona home on the market and your ultimate goal is to get it SOLD!!  For most families, their home is their largest financial asset, and deciding to sell it is a big decision that involves a lot of preparation and work.  

The first big step in getting your home sold is to interview and hire a great listing agent.  No matter what city you live in the number one thing I see sellers wanting in today's market is SERVICE.  As a Leading Agent here in the Chandler Arizona area, I strive to make the Selling process a wonderful experience for my clients by working with them through ALL steps of the Selling process.  Here are a few steps you should take when interviewing a listing agent.

• Step 1 -  I know everyone knows or is related to a licensed real estate agent but not all real estate agents are created equal.  In my opinion it is very important to list your home with a full time listing agent that has experience selling homes similar to yours in Chandler Arizona.
• Step 2- A good Listing agent will have a marketing plan that they can show you.  We have a 30 step very detailed marketing plan in place to get your home sold.  I would not hire a listing agent unless they have one.
• Step 3 - How many homes has that agent sold in your area?  It is important that your listing agent know your local market, market stats and what the trends currently are in your neighborhood.
• Step 4-  When interviewing an agent look at the little things like, do they answer their phone, do they return emails promptly, do they provide feedback or have a system in place to do that. 
  

Hopefully these few steps will help in interviewing listing agents.  In my humble opinion in today's global and social environment it is much more important to have a listing agent that gives great service or using a large brokerage just for the name. 

Selling your home can be a great and stress free process. Avoiding listing agents who do not work with you through each step of the selling process is a good start. Most home owners whose homes do not sell during the first 2 months of the listing term do not sell because of price or a lack of attention from your agent. By having a Local Chandler listing agent who works full time, offers full service and knows the Chandler Arizona market, you can get the advantage of being properly priced, properly marketed and in most cases sold quickly and the best price.

Tom Jovanovski at Thomas Davis Group Realty has had a lot of success selling homes fast in today’s market because he has a comprehensive Marketing Plan.  The Marketing Plan here at Thomas Davis Group Realty is one of the most aggressive in the industry.  Our 30 Step Marketing Plan has been proven to work in any market but we have sold more homes in the last four years than we ever have. For a view of our 30 step Marketing plan give us a call at 480-361-5012

Husband, Dad, Real Estate Broker and all around good Guy!!  Tom Jovanovski is a partner in Thomas Davis Group Realty a Residential Real Estate Brokerage in Chandler Arizona. He has represented both buyers and sellers with foreclosures, short sales, commercial lease, residential leases and investments.  Outside of work I enjoy spending time with my two kids and beautiful wife Darby. Our family enjoys an active lifestyle with sports being played all the time.

I am sure over the years you have heard that selling real estate is all about the price.  One of the biggest challenges I have as a listing broker in Chandler Arizona is to convince an emotionally charged seller that their home is worth "x". 

It sometimes is tempting to just pick the highest price and say "lets list the home here"

But in reality there is somewhat of a science to pricing your home correctly and in today's market pricing the home right is all the marketing you need to sell your home fast.. 

Lets break down the science of pricing your home right in a few steps.

The Comparative Market Analysis -  Or more commonly known in Realtor speak as a "CMA"  In a nut shell a CMA is a side by side comparison of your home with other homes that have either sold or that are currently on the market.   We will compare items such as, square footage, upgrades, pool, bedrooms & bathrooms etc.   I get this information from the Multiple Listing Service and the County Tax website.    I do not pull info from third party websites or websites that give free Estimates of value and then pull info from all over the place.   A good buyers agent will also do a CMA for a buyer prior to them making an offer on a house as well.

The Appraisal -  An appraisal is a market analysis performed by a professional appraiser using a variety of sources, including MLS data and conforming loan formulas. A buyer's Lender uses home appraisals to determine the value of a property on which they want to make a loan. An appraisal is essentially "an estimate of fair market value" as of a specific date. The lender makes a loan as a percentage of a home's value estimate.  In the Arizona Association of Realtors Purchase contract there is a contingency that states that the home has to appraise for the purchase price or the buyer can cancel the contract.  This gives the buyer a clear advantage when making an offer.  Even more reason to price the home right from the start. 

Generally if a home is over priced we will know it in the first 10 days.  If there is a lack of showings, no offers, poor feedback a good Arizona listing Agent will be able to provide you with updates on the showing activity.  If the flow of showing traffic stops than it is really important to adjust the listing price quickly.

When choosing a good Listing agent in Arizona it is important that they have knowledge and experience in the local market that can take the numbers and put them with other market conditions. She or he will help you read the market, and help you choose the right price, based on current trends analysis and news.  Choosing the right Realtor to sell your home is a huge decision.  Many folks believe all Realtors do the same thing just throw it on the MLS and wait till someone comes along to buy it.   The Realtors that have a lot of success selling homes fast in today’s market have a comprehensive Marketing Plan.  The Marketing Plan here at Thomas Davis Group Realty is one of the most aggressive in the industry.  Our 30 Step Marketing Plan has been proven to work in any market but we have sold more homes in the last four years than we ever have. For a view of our 30 step Marketing plan give us a call at 480-361-5012.

Husband, Dad, Real Estate Broker and all around good Guy!!  Tom Jovanovski is a partner in Thomas Davis Group Realty a Residential Real Estate Brokerage in Chandler Arizona. He has represented both buyers and sellers with foreclosures, short sales, commercial lease, residential leases and investments.  Outside of work I enjoy spending time with my two kids and beautiful wife Darby. Our family enjoys an active lifestyle with sports being played all the time.