Real Estate Listing Myths 

 

Large Agencies Sell Homes Faster – False

There is no Data that shows that Large agencies sell homes any faster than smaller agencies, both provide the same information to Agents representing qualified buyers.

 

Large Agencies have more buyers – False

Less than 5% of all homes sales were purchased through the company which listed the home.  This is a misconception held over from before Real Estate hit the Internet.

 

Real Estate Teams are more productive sellers – False

Real Estate teams are very common today.  Fact most do not work as a team, they are simply groups of realtors who work under a common “Associate” Broker within an office, they do not work in the traditional definition of a “TEAM” to buy or sell homes.

 

Real Estate agencies will not show discounted/flat fee listings – False

Buyer Agents don’t know if the listing side is discounted, the only commission information which is displayed in the listing, is for the buyer agent.  If the seller is offering a commission to the buy side to sell their home, realtors will gladly bring qualified buyers to see the home, because they know they will be paid. 

 

Discounted Commission listings receive inferior service – False

A full-service listing requires the discount listing agent to provide the same full service that any other Full Fee (6%) realtor provides, such as: Arrange Appointments, Accept/Present Offers, Advise on Offers, Assist with counter offers, Negotiate for seller.

 

Discounted Commission Real Estate Offices cannot survive – False

Companies that manage expenses and keep overhead low, can significantly reduce commissions and still be profitable.  Large Real Estate companies are burdened with high overhead, such as Expensive Rent, office staff, and utilities, and therefore must charge higher commissions to pay the bills and keep the doors open, they rely on you to pay their expenses and bills.

 

Zillow is a Home Buying Site – False

Zillow is a marketing site, less than 5% of the viewers of homes on Zillow are qualified buyers, approximately 80% of the homes you see listed on Zillow were initiated by an MLS listing and were automatically pushed out to Zillow.

 

If you have a question about buying or selling your home, please reach out to Mitten Realty Group at 248-294-7850 or via email at info@mittenrealtygroup.com

Thank you,

Scott Fader and Gary Brincat
Mitten Realty Group, LLC

Mitten Realty Group is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

 

Pre-Qualification vs Pre-Approval

When you are selling your home For Sale by Owner or even with an agent, you need to understand what kind of approval or well, not approval is provided with the offer. Many people get pre-qualified and pre-approval mixed up and they are entirely different as to how secure they are with their financing. The mortgage industry continues to provide relaxed letters of qualification or approval for clients who may or may not be able to close on the house they choose.

We will look at qualifications and approvals a bit deeper.

Pre-Qualified

Getting pre-qualified involves supplying a bank or lender with their overall financial picture, including debt, income, and assets. The lender reviews everything and gives an estimate of how much the borrower can expect to receive. Pre-qualification can be done over the phone or online, and there is usually no cost involved.

Pre-qualification is quick, usually taking just one to three days to get a pre-qualification letter. Keep in mind that loan pre-qualification does not include an analysis of credit reports or an in-depth look at the borrower’s ability to purchase a home.

The pre-qualification has NOTHING reviewed in terms of documents – bank statements, W-2, 1099, tax returns, investment accounts or the credit. The potential borrower is verbally providing an idea of who they are credit wise and financially.

A pre-qualified buyer does not carry the same weight as a pre-approved buyer, who has been more thoroughly investigated. As a Realtor, I tend to stay away from pre-qualified letters for offers and request that the borrower go back and get pre-approved.

Pre-Approved

Getting pre-approved may take a few extra steps, but it is a better way to go to ensure a borrower can close a deal (or at least fairly good chance to close).

The borrower must complete an official mortgage application to get pre-approved, as well as supply the lender with all the necessary documentation to perform an extensive credit and financial background check. The lender will then offer pre-approval up to a specified amount.

Lenders will provide a conditional commitment in writing for an exact loan amount, allowing borrowers to look for homes at or below that price level.

This puts borrowers at an advantage when dealing with a seller because they are one step closer to getting an actual mortgage.

 

When a borrower provides the PRE-APPROVED letter from the lender, it gives the seller a warmer feeling that the deal will happen. As a Realtor I prefer a pre-approval with an offer over the pre-qualified letter.

 

Remember there are still conditions to be met on the mortgage side, even with a pre-approved letter. You should always call the lender and have a brief and to the point discussion about the pre-approval letter. Find out if there is anything major lacking from the file that could cause the loan to pause or be denied at later date – make sure they have reviewed credit, all documents and ask if they owe the lender anything.

 

DO NOT BE AFRAID TO ASK QUESTIONS TO THE LENDER OR BUYERS AGENT. IT IS YOUR HOUSE THAT IS BEING SOLD.

 

This information comes from a Realtor and not a lender. This is just for informational purposes giving you a better understanding. We are not lenders or a mortgage company.

If you have any questions about real estate or would like to buy or sell a home, Investment property, or commercial property in Michigan (Ohio and Florida by 2021), please e-mail us at info@mittenrealtygroup.com or call 248-294-7850.

Thank you,

Scott Fader and Gary Brincat
Mitten Realty Group, LLC

Mitten Realty Group is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

 

 

What is a Quitclaim Deed?

A quitclaim deed is a legal instrument that is used to transfer interest in real property. The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee.

  • Typically used in a NON-traditional sale
    • Between family
    • Divorce
    • Into a trust

Simple way to transfer deed – no title search is done. Since there is no title search done, liens, taxes, open mortgages, and loans are not checked for. The verification of the grantor also is not checked to make sure they can convey the property.

Quitclaim deeds are also used to clear up matters when there may be an ownership issue or claim. The person with claim can sign a quitclaim deed over removing themselves.

Quitclaim deeds are not used for traditional real estate sales (especially with a lender involved), because the new owner receives no guarantees about the title and how valid it is.

Although we are not lawyers and would advise anyone using a quitclaim to seek advice, we do want to put a word of warning out there. Quitclaim deeds are used often in investment property sales and scams both. People use them to transfer property they do not own, or they know has other encumbrances. Therefore, working with a proper title company or lawyer when involving real estate is a good idea. Not transferring property correctly or verifying ownership and other information can be a costly mistake. More than what it would have costed to have a title search done and having insurance you are getting a solid transfer.

To transfer title by quitclaim, a quitclaim deed form must be in writing to be valid. This legal document includes a legal description of the property that is being deeded, the county it is located in, date of transfer, and the names of the grantor (person transferring the property) and grantee (person receiving the property). If a price has been paid for the transfer, that amount is included.

The grantor signs the document, and this signature is generally notarized. Witnesses may be required depending on the state. In some states the grantee also signs the deed. It is common to file the deed with the county clerk in the county where the property is located, but in some states, this is not required.

Quitclaim deeds are a part of the real estate world. Although they are not as secure as Warranty Deeds, they are used. If you need help preparing a Quitclaim deed or have questions about them, you can contact your local title company or real estate lawyer.

If you are thinking of buying or selling real estate and would like to talk further about title company needs (Nationwide), please call Gary Brincat or Scott Fader at 248-617-0004 or email them at info@inkedtitle.com

Thank you,

Scott Fader and Gary Brincat
Inked Title, LLC

Inked Title is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers of real estate with Mitten Realty Group (www.MittenRealtyGroup.com or 248-294-7850) and owners of Inked Title. They have been working in real estate as brokers, Realtors, investors, property managers and real estate and title company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

Why Do I Need a Title Company?

A title company is more than just a place to close your property. They are the research company for the buyers, sellers or both in a transaction. We will talk about title companies in the general aspect, as each state can be a little different when it comes to how your property is closed and who is part of the process. You will want to call a local title company or real estate lawyer to find out how your state works. You can also call Inked Title, LLC at 248-617-0004 or e-mail them at info@inkedtitle.com and their staff can find out what the process for your state on real estate closings and title.

WHAT IS TITLE?

In property law, a title is a bundle of rights in a piece of property in which a party may own either a legal interest or equitable interest. The rights in the bundle may be separated and held by different parties. It may also refer to a formal document, such as a deed, that serves as evidence of ownership.

HOW DO YOU KNOW THE OWNER IS THE OWNER?

To find out who owns the bundle of rights and ownership the title company will do a title search. A title search is an examination of public records to determine and confirm a property’s legal ownership and find out what claims or liens are on the property. A clean title is required for any real estate transaction to go through properly.

The way to look at title is like a credit report. The cleaner the better. If the credit report is bad or has bad information it can cause issues, just like clouded title. It is always a good idea to make sure when you sell or when you buy, the title to the property is ready to be conveyed.

As the title company is reviewing who owns the property, they will also be checking on the status of the property taxes, any special assessments attached to the property, any liens someone has placed on the property, outstanding mortgages, HOA liens or if there is an HOA, so that they can get a full idea of what will be required to be paid off in the closing and what information they may need to collect from the parties involved.

When research is complete, the title company provides a report called a “title abstract.” You should get a copy of this before you close on the home to review. This document is not your title insurance policy. That is a separate document you’ll get from your agent.

WHAT IS A TITLE INSURANCE POLICY?

Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in a title to a property. The most common type of title insurance is lender’s title insurance, which the borrower purchases to protect the lender. The other type is owner’s title insurance, which is often paid for by the seller to protect the buyer’s equity in the property (Again, this differs state by state).

CLOSING:

Once all the title documents are set and the lender and title company have compared and approved all the numbers, the title company will help in the process of closing the home (once again, who closes and who is involved will vary from state to state). The closing will also vary on if the home is a cash deal or one with a lender involved. The closer will go through all the docs that they have prepared, and the lender has provided to give you a full understanding of what you are signing and why. They will also go back over the numbers within the documents to make sure they are the same as you have reviewed and approved with your lender.

The closing table is fun and stressful. You will want to review as much of the information before closing. Most title companies will provide a digital link to all the documents for review well enough in advance to review. ASK ALL THE QUESTIONS YOU WANT AT THE CLOSING!!!! Many people SIGN SIGN SIGN and then have questions after closing when it is too late. Take your time at the closing, get all your questions answered and leave excited, not worried.

FUNDING:

The title company also assists in the funding of the transaction. Money from the lender and the buyer are provided to the title company who verifies all the money and then disperses to all the parties who are due money – and there are many in a real estate deal.

 

A title company is a valuable resource. They are more than the people who sign documents. They are the companies that ensure your property is free to transfer and both the buyer and seller are secure of any issues with title through the insurance. 

If you are thinking of buying or selling real estate and would like to talk further about title company needs, please call Gary Brincat or Scott Fader at 248-617-0004 or email them at info@inkedtitle.com

Thank you,

Scott Fader and Gary Brincat
Inked Title, LLC

Inked Title is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers of real estate with Mitten Realty Group (www.MittenRealtyGroup.com or 248-294-7850) and owners of Inked Title. They have been working in real estate as brokers, Realtors, investors, property managers and real estate and title company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

What is Quiet Title?

An action to quiet title is a lawsuit brought in a court having jurisdiction over property disputes, in order to establish a party’s title to real property, or personal property having a title, of against anyone and everyone, and thus “quiet” any challenges or claims to the title.

The process of quiet title is not an overnight process or pay a lawyer or title company to handle it and it is done. The process can take 8 to 12 weeks (we have heard of some taking as long as 6 months). In 2020, we are looking at this process taking longer with many of the people working on quiet title working at home or the staff is laid off. It is a process of patience no matter when it is started. The sooner the better.

Steps in the quiet title process:

  1. Complaint
    1. Done in county where property is located
    2. Anyone with claim will be notified
  2. Service
    1. Notice to defendants
    2. Can take time to locate heirs and prolonged if someone is deceased with claim
    3. There will be a time frame to respond
  3. Negotiation
    1. If someone responds – you can negotiate how to get them to sign off
  4. Judgement
    1. Judge signs off and notifies plaintiff how the case was decided
  5. Recording
    1. Once you receive the judgement you record it in the county where the property is located
  6. Delivery of the Order
    1. Provide all the documents to the title company so they can continue with your file

The cost of the whole process will vary on the area you are in. We have seen them range from $650 (which is rare) to as much as $4500.

A quiet title action does not give the new owner the same level of protection against the previous owner in most cases; if there are problems with the property, the new owner can’t sue the previous owner, unless he or she acquired the property via warranty deed and sued for defects when the warranty deed was delivered.

Additionally, quiet title actions do not always clear up all issues with a title. In some jurisdictions, they can only be used to clear up specific claims or title defects (you will want to clarify this with the title company or attorney you are using).

Following the quiet title action, the plaintiff will be in full possession of the property in perpetuity, as will be his or her heirs, and they will also be protected from any further claims of ownership made against the property by other outside entities.

A good title company will try to clear up what they can on the title before you jump into the process of quiet title. The title company will be the ones who will eventually tell you what steps you will need to have the ownership rights you seek. If it is out of their control, the next step is that of the quiet title process. They also usually know good real estate lawyers to go to when quiet title is needed.

If you are thinking of buying or selling real estate and would like to talk further about title company needs, please call Gary Brincat or Scott Fader at 248-617-0004 or email them at info@inkedtitle.com

Thank you,

Scott Fader and Gary Brincat
Inked Title, LLC

Inked Title is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers of real estate with Mitten Realty Group (www.MittenRealtyGroup.com or 248-294-7850) and owners of Inked Title. They have been working in real estate as brokers, Realtors, investors, property managers and real estate and title company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.

 

In real estate, there are many moving pieces, lots of paperwork, and many hands touching things associated with your property from the title company to the mortgage company to other city and state agencies. Mistakes will happen and these mistakes can cause delays or cause deals to fall apart.

The question of when to order title work is an easy one – AS SOON AS YOU DECIDE TO SELL. Your title report is like the credit report for your property. You want it as clean as possible and only things you know and have permitted attached to it. CLEAN and MARKETABLE TITLE can save you time and make your home sale smooth and easy.

Common things to look for when you get your title ordered:

  • Liens – if you have taken a mortgage or other financing on the property
  • Liens – are there any liens you do not recognize
  • Taxes – are there any past due taxes owed
    • If you have paid taxes, you can just provide proof to title company to clear this
  • Ownership – is the title in the correct name you purchased in

 

If there are items that you do not recognize or showing in error, you will need to work with the title company in order to clear the title. Sometimes you will bring in the previous title company if there is something that should have been cleared before.

The title company will be able to guide you as to what is needed to clean up the issues – if there are issues to clear. The title company knows their business, so take their advice. Lawyers can be expensive, but a good time team can help guide you, and save you money.

If you are looking to sell your home, call Inked Title at 248-617-0004 or email info@inkedtitle.com – they can start your title work to help prepare your home to close.

Thank you,

Scott Fader and Gary Brincat
Mitten Realty Group, LLC

Mitten Realty Group is a veteran owned company located in Michigan. Scott Fader and Gary Brincat are two of Michigan’s multi-million-dollar top producers. They have been working in real estate as brokers, Realtors, investors, property managers and real estate company owners for over 20 years. Together they would like to share their experiences, knowledge, success and failures to help buyers, sellers, Realtors, brokers and anyone else in the real estate and business, so that together we can grow as a community.