Closing Costs: Buying or Refinancing a Home

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This is a detailed summary of costs you may have to pay when you buy or refinance your home. They are listed in the order that they should appear on a Good Faith Estimate you obtain from a mortgage lender. There are two broad categories of closing costs. Non-recurring closing costs are items that are paid once and you never pay again. Recurring closing costs are items you pay time and again over the course of home ownership, such as property taxes and homeowner’s insurance. Some of the items that appear here do not traditionally appear on a lender’s Good Faith Estimate and lenders are not required to show all of these items.

Non-Recurring Closing Costs Associated with the Lender.

Loan Origination Fee – The loan origination fee is often referred to as points. One point is equal to one percent of the mortgage loan. As a rule, if you are willing to pay more in points, you will get a lower interest rate. On a VA or FHA loan, the loan origination fee is one point. Any additional points are called discount points.

Loan Discount – On a government loan, the loan origination fee is normally listed as one point or one percent of the loan. Any points in addition to the loan origination fee are called discount points. On a conventional loan, discount points are usually lumped in with the loan origination fee.

Appraisal Fee – Since your property serves as collateral for the mortgage, lenders want to be reasonably certain of the value and they require an appraisal. The appraisal looks to determine if the price you are paying for the home is justified by recent sales of comparable properties. The appraisal fee varies, depending on the value of the home and the difficulty involved in justifying value. Unique and more expensive homes usually have a higher appraisal fee. Appraisal fees on VA loans are higher than on conventional loans.

Credit Report – As part of the underwriting review, your mortgage lender will want to review your credit history. The cost of running the credit report can vary and is included in closing costs.

Lender’s Inspection Fee – You normally find this fee on new construction and is associated with what is called a 442 Inspection. Since the property is not finished when the initial appraisal is done, the 442 Inspection is done when the building is completed and verifies that construction is complete with carpeting and flooring installed.

Mortgage Broker Fee – About seventy percent of loans are originated through mortgage brokers and they will sometimes list your points in this area instead of the Loan Origination Fee category. They may also add any broker processing fees in this area so you clearly understand how much is being charged by the wholesale lender and how much is being charged by the broker. Wholesale lenders offer lower costs/rates to mortgage brokers than you can obtain directly, so you are not paying extra by going through a mortgage broker.

Tax Service Fee – During the life of your loan you will be making property tax payments, either on your own or through your impound account with the lender. Since property tax liens can sometimes take precedence over a first mortgage, it is in your lender’s interest to pay an independent service to monitor property tax payments.

Flood Certification Fee – Your lender must determine whether or not your property is located in a federally designated flood zone. This is a fee usually charged by an independent service to make that determination.

Flood Monitoring – From time to time flood zones are re-mapped. Some lenders charge this fee to maintain monitoring on whether this re-mapping affects your property.

Other Lender Fees

We put these in a separate category because they vary so much from lender to lender and cannot be associated directly with a cost of the loan. These fees generate income for the lenders and are used to offset the fixed costs of loan origination. The Processing Fee mentioned above can also fall into this category, but since it is listed higher on the Good Faith Estimate Form we did not also include it here. You will normally find some combination of these fees on your Good Faith Estimate.

Document Preparation – Before computers made it fairly easy for lenders to draw their own loan documents, they used to hire specialized document preparation firms for this function. This was the fee charged by those companies. Nowadays, lenders draw their own documents but this fee is charged on almost all loans.

Underwriting Fee – Once again, it is difficult to determine the exact cost of underwriting a loan since the underwriter is usually a paid staff member.

Administration Fee – If an Administration Fee is charged, you will probably find there is no Underwriting Fee. This is not always the case.

Appraisal Review Fee – Even though you will probably not see this fee on your Good Faith Estimate, it is charged occasionally. Some lenders routinely review appraisals as a quality control procedure, especially on higher valued properties.

Warehousing Fee – This is rarely charged and begins to border on the ridiculous. However, some lenders have a warehouse line of credit and add this as a charge to the borrower.

Items Required to be Paid in Advance

Pre-paid Interest – Mortgage loans are usually due on the first of each month. Since loans can close on any day, a certain amount of interest must be paid at closing to get the interest paid up to the first. For example, if you close on the twentieth, you will pay ten days of pre-paid interest.

Homeowner’s Insurance – This is the insurance you pay to cover possible damages to your home and other items. If you buy a home, you will normally pay the first year’s insurance when you close the transaction. If you are buying a condominium, your Homeowners’ Association Fees normally cover this insurance.

VA Funding Fee – On VA loans, the Veterans Administration charges a fee for guaranteeing your loan. The fee will be a percentage of the loan balance but the exact percentage will vary depending on whether you have used your VA eligibility in the past. Instead of actually paying this as an out-of-pocket expense, most veterans choose to finance it, so it gets added to the loan balance. This is why the loan balance on VA loans can be higher than the actual purchase amount.

Up Front Mortgage Insurance Premium (UFMIP) – This is charged on FHA purchases of single-family residences (SFR’s) or Planned Unit Developments (PUDs). Like the VA Funding Fee it is normally added to the balance of the loan. Unlike a VA loan, the homebuyer must also pay a monthly mortgage insurance fee, too. This is why many lenders do not recommend FHA loans if the homebuyer can qualify for a conventional loan. Condominium purchases do not require the UFMIP.

Mortgage Insurance – Though it is rare nowadays, some first-time homebuyer programs still require the first year mortgage insurance premium to be paid in advance. Most mortgage insurance (when required) is simply paid monthly along with your mortgage payment. Mortgage insurance covers the lender and covers a portion of the losses in those cases where borrowers default on their loans.

Reserves Deposited with Lender

If you make a minimum down payment, you may be required to deposit funds into an impound account. Funds in this account are your funds, and the lender uses them to make the payments on your homeowner’s insurance, property taxes, and mortgage insurance (whichever is applicable). Each month, in addition to your mortgage payment, you provide additional funds which are deposited into your impound account.

The lender’s goal is to always have sufficient funds to pay your bills as they come due. Sometimes impound accounts are not required, but borrowers request one voluntarily. A few lenders even offer to reduce your loan origination fee if you obtain an impound account. However, if you are disciplined about paying your bills and an impound account is not required, you can probably earn a better rate of return by putting the funds into a savings account. Impound accounts are sometimes referred to as escrow accounts.

Homeowners Insurance Impounds – your lender will divide your annual premium by twelve to come up with an estimated monthly amount for you to pay into your impound account. Since a lender is allowed to keep two months of reserves in your account, you will have to deposit two months into the impound account to start it up.

Property Tax Impounds – How much you will have to deposit towards taxes to start up your impound account varies according to when you close your real estate transaction. For example, you may close in November and property taxes are due in December. Your deposit would be higher than for someone closing in May.

Mortgage Insurance Impounds – When required, most lenders allow this to simply be paid monthly. However, you may be required to put two months’ worth of mortgage insurance as an initial deposit into your impound account.

Non-Recurring Closing Costs not associated with the Lender

Closing/Escrow/Settlement Fee – Methods of closing a real estate transaction vary from state to state, as do the fees.

Title Insurance – Title Insurance assures the homeowner that they have clear title to the property. The lender also requires it to insure that their new mortgage loan will be in first position. The costs vary depending on whether you are purchasing a home or refinancing.

Notary Fees – Most sets of loan documents have two or three forms that must be notarized. Usually your settlement or escrow agent will arrange for you to sign these forms at their office and will charge a notary fee.

Recording Fees – Certain documents get recorded with your local county recorder. Fees vary regionally.

Pest Inspection – This is also referred to as a Termite Inspection. This inspection tests not only for pest infestations, but also other items such as wood rot and water damage. If repairs are required, the amount to cover those repairs can vary. The seller will usually pay for the most serious repairs, but this is a negotiable item. Usually (not always) the pest inspection fee is paid by the seller of the home and is not normally reflected on the Good Faith Estimate.

Home Inspection – Since it is the homebuyer’s choice to obtain a home inspection or not, this cost is not usually reflected on a Good Faith Estimate. However, it is recommended. Keep in mind that the home inspector has a certain set of standards he uses when inspecting a home, and those standards may be higher than required by local building codes. An example is that an inspector may note there is no spark arrestor on a chimney but the local building code may not require it. This sometimes leads to conflicts between buyer and seller.

Home Warranty – This is also an optional item and not normally included on the Good Faith Estimate. A Home Warranty usually covers such items as the major appliances, should they break down within a specific time. Often this is paid by the seller.

Refinancing Associated Costs (but not charged by the new Lender)

Interest – When you close the transaction on your refinance, there will most likely be some outstanding interest due on the old loan. For example, if you close on August twentieth (and you made your last payment), you will have twenty days interest due on the old loan and ten days prepaid interest on the new loan. Your first payment on the new loan would not be until October 1st since you have already paid all of August’s interest when you closed the refinance transaction (since interest is paid in arrears, a September payment would have paid August’s interest, which has already been paid in closing).

Reconveyance Fee – This fee is charged by your existing lender when they “reconvey” their collateral interest in your property back to you through recording of a Reconveyance.

Demand Fee – Your existing lender may charge a fee for calculating payoff figures.

Sub-Escrow fee – Though it sounds like an escrow fee, this fee is actually charged by the Title Company. Assume it is an income-generating fee similar to some of the lender fees mentioned above.

Loan Tie-in Fee – Though it sounds like a lender fee, this cost is actually charged by the Escrow Company.

Homeowner’s Association Transfer Fee – If you are buying a condominium or a home with a Homeowner’s Association, the association often charges a fee to transfer all of their ownership documents to you.

Asking the Seller to Pay Closing Costs – Rules and Advice.

It has become common to ask the seller to pay some or all of the closing costs when you purchase a home. Essentially, this is financing your closing costs since you will probably pay a little bit more for the property than you would if you were paying your own costs.

Keep in mind a few simple rules. On conventional loans you can only ask the seller to pay non-recurring costs, not prepaid fees or items to be paid in advance. If you are putting ten percent down or more, the most the seller can contribute is six percent of the purchase price. If you are putting less down, the most the seller can contribute is three percent.

On VA loans, you can ask the seller to pay everything. This is called a “VA No-No”, meaning the buyer is making no down payment and paying no closing costs.

On FHA loans, the seller can pay almost any cost, but the buyer has to have a minimum three percent investment in the home/closing costs.

Most refinances include the closing costs and prepaids in the new loan amount, requiring little or no out-of-pocket expenses to close the deal.

If you didn’t get bored as you read through this, now you know everything (almost) about closing costs.

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San Diego Neighborhood Highlight: Scripps Ranch

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Scripps Ranch is a charming neighborhood suburb in the northeast part of San Diego County. Though inland, it’s still only about a half hour drive to the beach and close to many booming companies and attractions.

History

Scripps Ranch, like many things in Southern California such as the Scripps Institute of Oceanography and Scripps College, was named after the Scripps newspaper family. E.W. Scripps at first thought he was building a vacation home to get out of Illinois’ frigid winter.  He bought 400 acres of land, gave part of it to his sister, Ellen Browning Scripps, and built a ranch there at the site of where the members-only Scripps Ranch Swim and Racquet Club a community hub, now stands. He also built a castle, called Miramar, where the community of Miramar is today.

Real Estate

Scripps Ranch is considered one of the premiere neighborhoods of San Diego County. With a population of 29,000 and home values at a median of around $700K, Scripps Ranch is a desirable area for families. It has top-rated public and private schools and a variety of public parks and open spaces. 

The outlook for real estate here is good, with a 9% increase in home sales over last year.  Houses here retain their value in an area that has very few vacancies. While there are many single family homes, there are also a lot of condos and townhouses for sale, too, at prices well below $500K. If you’re looking for well-maintained and clean houses, Scripps Ranch is the perfect San Diego neighborhood for you!

Commuting

Scripps Ranch is home or close to many large high tech companies in the area. Among them, Intuit, one of the region’s largest employers, is located in nearby Rancho Bernardo. Broadcom is also close by, as is Fitbit.

If you work on the northwest side of the county over in UTC and Sorrento Valley, the commute’s not bad either—less than 10 miles. The commute to downtown San Diego is a bit longer at 18 miles.

Things to Do

There are lots of things to do in Scripps Ranch. Whether you have a growing family or you’re single, activities abound. Hoyt Park hosts Symphony in the Park, a concert series that has most sessions during the summer, but since San Diego is so mild, it also has a couple of concerts in the fall and winter. There’s a farmer’s market on the site of Innovations Elementary every Saturday, with produce from local growers, as well as kid-entertainment like face painters and balloon artists. Vendors also serve a variety of different foods for breakfast and lunch.

The Scripps Ranch Theatre is a popular and well-regarded community theater run by all volunteers, putting on many different shows, including those written by local playwrights. The Erin Hanson Gallery sells California impressionist paintings created by the local artist; there are frequent shows here open to the public.

The San Diego Zoo Safari Park, formerly the Wild Animal Park, is a few minutes up Interstate 15 in Escondido. At this massive zoo,  you can ride a tram through wild animal habitats, take a behind-the-scenes tour, sleep overnight in the park, take a hot air balloon ride, or zip line.

Scripps Ranch also offers many opportunities for hiking in and around the area. Black Mountain Open Space Park has a variety of trails where you can hike, stroll, or horseback ride. Mountain biking is also a popular pastime in these parts with many options.

Golfing is another big thing around here, with several different courses to choose from. In this area, there’s the executive course, Oaks North; the course at the Rancho Bernardo Inn; and, in nearby Poway, the Maderas Course, the top-rated course in San Diego County.

Restaurants

Despite Scripps Ranch being a suburb rather than a city spot, there are dozens of different restaurants in and around the area. Some of the most popular local spots include Gyu-Kaku, a Japanese grill where you can barbecue your own food at the traditional grill right at your table—including s’mores.

Ballast Point Brewing is a local brewery that’s become popular worldwide in recent years. The kitchen serves Californian cuisine. Cutwater Spirits Tasting Room and Kitchen serves up burgers, sandwiches, and its signature vodkas, whiskeys, and gins made on the premises. You can even get a distillery tour at the same time.

Shopping

Scripps Ranch has a few different shopping centers with grocery stores, including Scripps Ranch Marketplace,  which includes a bank, a Starbucks, and other standbys. By 2020, a project called Watermark will bring in a Whole Foods, a movie theater, more restaurants, and a Marriott hotel.

Only a few minutes further away is Mira Mesa, which has many more shops and a movie theater. Mira Mesa Market includes this, as well as the region’s largest Barnes and Noble bookstore, and many different chain restaurants.

Scripps Ranch is a family-oriented, quiet area that nevertheless has a lot of different activities to keep you occupied. Whether you want a local brew, a nature run, or a relaxing round of golf, Scripps Ranch has it all.

Spring Cleaning in San Diego: Boost Your Curb Appeal

Did you know that you only have seven seconds to make a good first impression when meeting someone new? This is not only true for people, but also for a variety of things in life – like our homes. If you want your house to impress new visitors, it’s essential that you pay close attention to its curb appeal.

‘Curb appeal’ is the attractiveness of the exterior of a home, and it is especially important when trying to lure in prospective buyers. If you’re looking to boost your home’s curb appeal, there are many simple and inexpensive changes you can make. From fresh paint to colorful gardens, all it takes is a little TLC to make your home stand out above the crowd.

Southern California is the perfect climate for low-maintenance exterior home improvements. Keep reading for tips on how to increase the curb appeal of your home in San Diego.

5 Ways to Boost Your Home’s Curb Appeal

1. Power Wash

Nothing drags down the outside of a house more than layers of dirt and dust. Even if your home appears clean from a distance, you will be surprised at how much brighter it will be after a good power washing.

When power washing, make sure to thoroughly clean all of your home’s siding, windows, gutters, and roof. Make sure you don’t skip over any patios, porches, or walkways. Keeping these areas free of debris will show that the house has been properly maintained.

Power washers are available for rent at major home improvement stores like Home Depot and Lowes. However, if you plan to power wash your house a couple of times a year, you may be better off buying one rather than renting.

2. Add Paint

A little paint goes a long way when it comes to curb appeal. If power washing revealed peeling paint on your siding, window frames, or doors, scrape away the old paint and give your home a fresh coat of the same color to give it new life.

If the color of your home is turning off buyers, you might want to consider changing up the color scheme. To choose the perfect palette, go for a drive and look for houses you admire. Use these as inspiration for your new paint color.

Another great way to use paint to liven up the exterior of your house is to introduce an accent color. Do this by using a different color on the shutters, window frames, and/or doors. A bright and cheery hue (like Pantone’s 2019 color of the year) will always welcome visitors and prospective buyers.

3. Make Repairs

If you think buyers won’t notice a shabby roof or broken porch light, think again. Before listing your house for sale, it’s essential that you make any necessary repairs to the exterior of your home.

When evaluating your home’s curb appeal, be sure to pay close attention to little details like the condition of the eaves boards, siding that needs to be replaced, the condition of the front porch columns, the state of the window screens, etc.

While many of these repairs may seem simple, they still have the potential to affect the curb appeal of your home. Remember: You want buyers to see all of your home’s positive attributes, not the work that still needs to be done.

4. Spruce Up the Gardens

With warm weather year round, homes in San Diego have the potential for beautiful gardens in all seasons. Choose from succulents, cacti, flowers, and other arid plants to create a landscape of color, even in the winter.

Check out these San Diego plants that bloom in the winter:

  • Sundrops
  • South African daisy
  • Aloe
  • Cyclamen
  • Poinsettia
  • Pansies
  • Snapdragons
  • Euphorbia ‘Diamond Frost’

In addition to introducing blooming flowers to your landscape, don’t forget to keep your garden beds and lawn tidy. Add mulch in the spring and make sure the lawn is regularly trimmed.

If you prefer to have a more low-maintenance yard, consider investing in a Waterwise Landscape Design. This type of landscaping requires very little watering and infrequent maintenance, saving you both time and money on your water bill.

5. Add Special Touches

When improving your home’s curb appeal, don’t overlook the little details. Here are a few simple, special things you can do that will transform the appearance of your home:

  • Hang a wreath on the front door
  • Introduce a rocking chair or swing to the porch
  • Update your mailbox
  • Swap out your house numbers for something new and modern
  • Place planters with flowers or desert grass on either side of the front door
  • Update the exterior light figures
  • Hang string lights over the patio

When it comes to boosting curb appeal, it’s possible to get a lot of bang for your buck. By investing a little time and money into your home’s exterior, you will be able to command higher offers and sell your home in record time. We know that moving in California can be stressful, so contact our experts for all of your California real estate needs!

Tips for Sellers: Setting the Price & Considering Offers

Setting the Price

The price is the first thing buyers notice about your property. If you set your price too high, then the chance of alienating buyers is higher. You want your house to be taken seriously, and the asking price reflects how serious you are about selling your home.

Several factors will contribute to your final decision. First, you should compare your house to others that are in the market. If you use an agent, he/she will provide you with a CMA (Comparative Market Analysis). The CMA will reflect the following:

  • houses in your price range and area that were sold within the last half-year
  • asking and selling prices of houses
  • current inventory of houses on the market
  • features of each house on the market

From the CMA, you will learn the difference between the asking price and selling price for all homes sold, the condition of the market, and other houses comparable to yours.

Also, try to find out what types of houses are selling and see if it applies to your area. Buyers follow trends, and these trends can help you set your price.

Always be realistic. Understand and set your price to reflect the current market situation.

 

Considering Offers

When reading an offer, keep in mind that you are out to get the best price AND the best terms for you. If you focus solely on the price, you may overlook terms that could be favorable to you as a buyer.

Some terms that may work in your favor:

  1. The Earnest Money Deposit (EMD)
  2. The Contingencies
  3. The Down Payment
  4. The All-Cash Offer
  5. The Closing Date

When reading through offers, remember to look at the whole package. Take the time that you need to assess what is being offered and if it meets your needs.

Home Selling: Plan of Action

1. Analyze why you are selling – If you understand your motives, you will be able to better negotiate and to get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle.

2. Prepare your home for the buyer – Maximize the strengths of your property and fix up its weaknesses. You want the buyer to walk away from your home with a lasting good impression.

3. Find a good real estate agent that understands your needs – Make sure that your agent is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer.

4. BRelated imagee prepared for negotiation – Learn and understand your buyer’s situation; what are their motives? Can you demand a big deposit from them? Try to lock in the buyer so that the deal goes through.

5. Negotiate for the best price and the best terms – Learn how to counter offer to get maximum value from every offer.

6. Make sure the contract is accurate and complete – Be honest with your disclosures; you do not want to lose the deal because you were lying or diminishing your home’s defects. Insist the buyers get a professional inspection. This will protect both you and the buyer.

Items You Need When Applying For a Loan

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Have These Items Ready When You Apply For a Loan

It used to be that lenders mailed out verifications to employers, banks, mortgage companies, and so on, in order to verify the data supplied by borrowers. Nowadays, the interest is often in speed and getting answers quickly so alternate documentation has become more widely used. Alternate documentation means that underwriting answers can be obtained with information supplied directly from the borrower instead of waiting around for verifications to come back in the mail.

The following is required for most standardized loans as part of alternate documentation processing. Items may differ according to whether your loan is a conforming (Fannie Mae or Freddie Mac), non-conforming (jumbo) loan, government loan, or a portfolio loan.

Verifications are still mailed out, but usually as part of quality control procedures.

These are the things you need to supply to your lender to get a quick approval using alternate documentation

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Income Items

  • W2 forms for the last two years
  • Pay stubs covering a 30 day period
  • Federal tax returns (1040s) for the last two years, if:
    • you are self-employed
    • earn more than 25% of your income from commissions or bonuses
    • own rental property
    • or are in a career where you are likely to take non-reimbursed business expenses
  • Year-to-Date Profit and Loss Statement (for self employed)
  • Corporate or partnership tax returns (if applicable)
  • Pension Award letter (for retired individuals)
  • Social Security Award letters (for those on Social Security)

Asset Items

  • Bank statements for previous two months (sometimes three) on all accounts. All pages.
  • Statements for two months on all stocks, mutual funds, bonds, etc.
  • Copy of most recent 401K statement (or other retirement assets)
  • Explanations for any large deposits and source of those funds
  • Copy of HUD1 Settlement Statement on recent sales of homes
  • Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
  • Gift letter (if some of the funds come as a gift from a family member)
  • Gifts can also require:
    • Verification of donor’s ability to make the gift (bank statement)
    • Copy of the check used to make the gift
    • Copy of the deposit receipt showing the funds deposited into bank account or escrow

Credit Items

  • Landlord’s name, address, and phone number (for verification of rental)
  • Explanations for any of the following items that may appear on your credit report:
    • Late payments
    • Credit inquiries in the last 90 days
    • Charge-offs
    • Collections
    • Judgments
    • Liens
  • Copy of bankruptcy papers if you have filed bankruptcy within the last seven years

Other

  • Copy of purchase agreement (if you have already made an offer)
  • To document receipt of child support (if you desire to show it as income)
    • Copy of Divorce Settlement (to show the amount)
    • Copies of twelve months canceled checks to document actual receipt of fund

FHA Loans

  • Copy of Social Security Card (or other documentation of social security number)
  • Copy of Driver’s license

VA Loans

  • Copy of DD214

Refinances

  • Copy of Note on existing loan
  • Copy of HUD1 Settlement Statement on existing loan
  • Name, address, phone number, loan number of existing loan/lender

3 Things Sellers will Love This Spring

For many home sellers, there’s no better time to list than the spring, and for good reason: This is peak home-buying season, folks! Buyers turn out in droves once warmer weather finally arrives, bringing people out of hibernation mode, and bidding wars abound as buyers look for ways to one-up their competition.

 

 

All the demand

While home sales decline in the winter (chalk it up to bad weather and holiday obligations), many home buyers blitz the housing market in spring, says Dossman. To meet that pent-up demand, many sellers list their homes at this time of year. It’s no surprise, then, that the lion’s share of real estate agents say March, April, and May are the best months to sell a home. With so many buyers competing for homes, sellers may be in a stronger position to spark bidding wars.

 

Selling in warmer weather

Open houses are often more successful during the spring than in the winter, says Dossman, since the nicer weather makes buyers more willing to emerge from the comfort of their homes to shop for houses. Another boon for home sellers: Daylight saving time gives buyers more time to look at houses, which means your property can potentially be seen by more people, says Dana Hill, vice president of Buyer’s Edge Realty in Bethesda, MD.

That said, “Sellers still need to do some prep work before holding an open house,” Dossman adds. To make sure your home is ready to be seen, do a thorough cleaning, remove such personal belongings as family photos and religious artwork, and trim your lawn for maximum curb appeal. Pro tip: Take a hike for a few hours during the open house. Buyers will feel more comfortable asking questions of your agent if you’re not hovering in the background.

 

The higher valuations

When your home’s value is assessed by a home buyer’s appraiser, the appraiser will look at data for comparable homes (or “comps”) that were recently sold in your neighborhood. The good news: With more homes selling in the on-season, the comparable data tend in your favor, Hill says. In other words, your house is more likely to pass the home appraisal, assuming that you’re selling it at around its fair market value.