How Do You Store Your “Stuff” At Home?

If you have worked with Glass Slipper Homes you know that we go paperless whenever we’re able to. For example, when you visit one of our listings you will receive a cd containing scanned copies of property information rather than a packet of paperwork. We like it that way – and we hope you do too!

This leads to the question of the day – how and where do you store important documents in your home? While we strive to make sure our homes are safe at all times, sometimes accidents happen. With this in mind, where do you keep documents like insurance policies? The title policy for your home? The closing documents that the title company gave you after a property purchase or refinance? Copies of your tax returns? Receipts if you’re a business owner?

A common answer is a Banker’s Box that you can purchase at any office supply store. While this is handy and economical, what if you store it in your basement and then you get water down there after a heavy rainstorm? Or if you put the same box anywhere else in your house, what will  happen to the information if something like a fire or smoke damage occurs? These aren’t things that we like to think about, but it’s important as responsible homeowners to do so.

If possible, consider scanning documents into your computer and then backing up your computer system using an on site option like an external hard drive or an off site option like Mozy or Carbonite. If scanning isn’t an option for you, consider a water and fireproof container for storing important documents – you won’t regret it!

For more tips on how we achieve paperless as well as we do, email heidi@glassslipperhomes.com!

More Remodeling Tips: Cost Vs. Value

In our last post we discussed tips for remodeling that won’t break the bank. Another great tip that we want to share is the “Cost Vs. Value” report that is published annually by Remodeling Magazine and featured in the National Association of Realtors publication titled: REALTOR. This report offers a break down of average costs for common residential remodels (Cost) and then it also charts the average recoup on the investment (Value). While this report is only a tool, you can consider it a great resource as you contemplate remodeling your home. You can review the actual 2009-2010 report by clicking here. Be sure to click on your region (and your exact city when possible) to see information relevant to your geographic area.

If you have any questions, email heidi@glassslipperhomes.com!

Closing Costs For Buyers and Sellers

If you have bought or sold a home, the final step in finalizing that sale is when you close. There will be alot of paperwork to complete and the closing costs will be indicated at this time. Most homebuyers are aware that their will be closing costs but many sellers are surprised to find that they are responsible for closing costs as well. 

Closing costs refer to all of the taxes, fees and costs required to close a real estate transaction. The amount and who will be responsible can vary from state to state.

If you are sellling your home, it is important to ask your agent for a breakdown of what you are expected to pay in closing costs as well what the buyer will pay. In most states the buyer and seller split closing costs but some states consider the buyer to be responsible or both parties can be required to pay the costs. 

The real estate market can have an impact on on who will be responsible for paying closing costs. For example in a market that is plentiful, the seller could have more of a chance in having the buyer pay the majority of the closing costs. But in a market that is struggling such as now, buyers tend to have the upper hand and many sellers will pay the majority of the closing costs in order to complete the sale.

Below are some of the common closing costs faced by sellers and buyers:

Escrow/attorney fees: Some states require third-party escrow companies handle real estate closings, while others dictate attorneys perform the function. Title companies, title agents, lenders, brokers and even real estate agents are allowed to handle closings and/or escrows depending on the state. These fees are usually split between the buyer and seller.
Title insurance: There are usually two types of
title insurance that must be purchased – the lenders’ policy and the owners’ policy. Usually either a title company or in some states a lawyer will research the title to make sure there are no liens against the property or unidentified owners. These policies protect the lender and new owner for the full value of the property. Usually, the seller pays for the owner’s policy and the buyer pays for the lender’s policy. This is often referred to as clearing title.
Transfer or documentary taxes: These are paid either to the state, county, city or a combination depending on the state. This is where the government agency gets their share of the transaction. This is also known as a reconveyance tax.
Recording fee: Usually paid to the county for recording the deed, which shows ownership of the property.
Mortgage tax: This is an additional tax collected by some states. Alabama, Florida, Georgia, Hawaii, Kansas, Maryland, Minnesota, New York, Oklahoma, Tennessee and Virginia are the states that collect this tax.
Brokerage commission: The fee you contractually agreed to pay for the selling of your home.

Aside from these costs, the seller may be responsible for costs such as any credits that were promised to the buyer for repairs or home warranties. Don’t forget that Federal law requires that sellers and buyers receive a copy of a HUD-1 form outlining all charges in a real estate transaction.

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