Tag Archives: investing in real estate

Ensure Your Closing is Stressful in 5 Steps

Is a real estate closing stressful? It can be so stressful, apparently, that panic and dysfunctions like “the endowment effect” and “loss aversion” are possible.

When you work with a punctual and accurate abstracting firm and an experienced title insurance company, things can go smoothly. But sometimes negatives resonate stronger than positives. So, here are five things you should do if you want your closing to be stressful. Logic dictates that if you want a non-stressful closing, simply do the opposite.

And we’re off!

Don’t Worry About Organization

Assume your loan officer has all the documentation they need. Don’t take time to prepare all the documents in advance. All those tax returns and pay stubs can stay in the closet or buried and folded in the back of the file cabinet.

Do Tomorrow What You Could Do Today

Why do today what can be done tomorrow, right? This truism is especially true in the runup to your real estate closing. Procrastination is key if you want to get the keys to your new home. If your lender says you need homeowner’s insurance by Wednesday, no need to start on it until Tuesday. Emails related to your closing, either from the title company or the lender, don’t need to be answered right away.

Demand Perfection

Even if the inspection is completed, take out a big red pen and dissect the report. Contest anything and everything. Find odds and ends around the house that aren’t up to snuff and demand the seller fix them. Have them dust.

Assume Timelines are Flexible

Your lender tells you to complete you loan disclosure for Friday. Assume that any and all timelines are flexible. Wait to complete the loan disclosure until Monday, Tuesday if you prefer. Plan a backpacking trip in the Andes mountains to celebrate the fact that the offer on your dream home was accepted.

Never Stop Shopping Around

You are almost done. Your dream house is almost yours. But curiosity is difficult to beat down. You decide to shop around and see what other lenders are offering. You have them run credit checks. Some of them offer you a better quote. You field their offers. While you are at it, get a new homeowner’s insurance policy several days before your closing.

Again: Do the Opposite of Everything Above if You Want Less Stress

We’re done with the sarcasm. To ensure your closing goes off without a hitch, follow the instructions of the realtor, lender, and title company closely. Real estate closings are complicated, and require the input and cooperation of numerous professionals. A stream of documents must change hands. Many tasks must be completed, and all in the right order. To ensure you have a positive experience, work with a reputable title company and a renowned abstracting firm like Punctual Abstract.

For more information on what we do to streamline closings, check out our homepage.

How One State is Solving Home Affordability

This is a story about supply and demand, about basic economic principles, and how one state is ideally situated to solve one of the greatest problems in the housing market today: lack of home affordability.

Home Prices And A Stubborn Inventory

According to the most recent quarterly report from the National Association of Realtors (NAR), home prices breached another all-time high in the second quarter of 2017. Prices rose in a surprising 87% of measured markets. 154 of the largest 178 metropolitan areas registered increases in median home prices. The national average stands at $255,600. More than any other factor, these hikes are due to a severe scarcity of homes.

To make matters worse, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau recently issued a report that showed housing starts decreasing in July. Single-family home construction has barely nudged in the last several months. Most builders are focusing on multifamily construction, leaving those in the market for single-family homes stuck with few options.

How One State Is Solving The Home Affordability Problem

Across the country, home prices are rising. In many areas, the precipitous rise has been caused by an acute shortage of homes. One state in particular is tackling the inventory problem with gusto, alleviating affordability concerns for would-be homebuyers: Texas. Texas is on a crazy-fast home building spree. Just three Texas markets make up 10% of all building permits in the U.S. Allow that to sink in.

The three markets are Houston, Austin and Dallas. Dallas takes the cake for homebuilding in the country, with nearly 49,000 projected permits. Houston takes second place in the nation with 48,000.So, why the boom in the Lone Star State? The right mix of conditions: lots of flat and developable land and a business-friendly regulatory approach that has led to significant job creation. This environment has impacted the economy and the real estate market in three ways:

– Job growth, which provides a steady source of income and creates greater demand for housing.

– Income growth, which is causing existing homeowners to trade up to newer, bigger homes; and allowing renters to make the leap to ownership.

– Home price appreciation. As is the case with all goods and assets, a low supply of housing causes the price to increase. This incentivizes suppliers to create more.

Texas, of course, isn’t alone in trying to solve the death of available inventory in the country, but they are leading the pack. New York rounded out the top three, with a projection of just over 40,000.

Your National Solution With A Local Touch

From our office in Harvey, LA, Punctual Abstract serves lenders, title agents, and abstractors nationwide. With knowledgeable abstractors and advanced technology, we typically provide polished abstracts within a 24 to 48-hour timeframe. For more information, please visit our homepage today!