TRID – How Will it Affect Buyers and Sellers?

What is it?

TRID is a mortgage acronym and it is the new closing disclosure mandate by the DOD – Frank Wall Street Reform Act. TRID stands for TILA (Truth in Lending Act), RESPA (Real Estate Settlement Procedures Act, Integrated, Disclosure. It will be implemented Oct 1. It is meant to help consumers understand the key features, costs, and risks of the mortgage loan for which they are applying. After October 3^rd, buyers with loan applications will receive a Loan Estimate instead of the Good Faith Estimate, and they will receive a Closing Disclosure instead of seeing a settlement statement (HUD-1) at closing.

Why is it Changing?

The CFPB created TRID to protect consumers applying for loans and to make the loan process more understandable and transparent. The hope is to help borrowers become better informed about the loan they are applying for and the true costs of a mortgage.

How does it affect Buyers and Sellers?

1. One of the main changes you will see as a buyer are the changes in the forms as stated above. Both the Loan Estimate and the Closing Disclosure are very similar and were created to be read more easily.
2. The new Loan Estimate must be delivered no later than 3 business days after the loan application is submitted.
3. In the past, a copy of the settlement copy had to be sent to the buyers 2 days in advance or 2 hours in advance (depending on the situation). With the new TRID rules, the Closing Disclosure must be provided to the buyer 3 days in advance. This will give buyers more time to understand and review it.
4. In the past, changes to the settlement statement could be made last minute. Since the Closing Disclosure must be provided to the buyers 3 days prior to closing, if the following 3 changes are made to the Closing Disclosure, the closing date could be pushed back to accommodate the new 3 day rule. The 3 things that could trip up the Closing disclosure are:
   1. A change to the HUD making the APR inaccurate
   2. A change in the loan program
   3. A pre-payment penalty added to the loan

Don’t worry, our Base Camp Agents and our preferred mortgage lender have learned everything there is to know about TRID and they are here to help you through the process every step of the way. If you are ready to buy or sell, give one of our agents a call today!

Home Warrant Benefits

To buy a home warranty, or to not buy a home warranty, that is the question. Whether you are buying or selling a home, new or existing, a home warranty may be an excellent investment. To help with your decision, we will break down what a home warranty is, the cost, and the various benefits of having one.

What is a home warranty?
It’s important to note that a home warranty is not the same thing as homeowners insurance. Homeowners insurance covers major perils such as fires, property crime, water damage, etc. A home warranty is a contract between a home warranty company and a homeowner that provides for discounted repair and replacement service on a home’s major components, such as the furnace, air conditioning, plumbing, etc. Most home warranty plans have a basic component that provides all homeowners certain coverages. When something breaks down that is covered by the home warranty, the homeowner will call the home warranty company, who will in return, send one of its service providers to examine the problem. If the needed repair or replacement is covered by the warranty, the service provider will then complete the work.

This does not mean that the homeowner will never have to spend any money on home repairs, some problems may not be covered in the warranty depending on the plan you picked, or if that specific warranty company does not provide coverage for a specific item.

What does it cost?

A home warranty may cost a few hundred dollars a year, with an additional service call fee, which can run around $60 every time the warranty holder requests a service provider to examine a problem. The plan’s costs varies depending on the property type (condo, single family home, townhouse, etc). For more information regarding pricing, contact our preferred vendor at HMS.

What are the benefits for Sellers?

• Your home will be more appealing to home buyers. 8 out of 10 buyers prefer to buy a home covered by a home warranty plan. Statistically, homes listed with a home warranty sell faster and closer to the asking price
• Budget/cash flow protection on unexpected repairs
• Free coverage during listing, payment is due at closing
• If a break down happens after the closing, the buyer will call the home warranty company, not you

What are the benefits for Buyers and current Homeowners? 

• Budget/cash flow protection on unexpected repairs – provides ongoing home protection year after year. Protects from costly repairs or replacements
• Full replacement of covered items – if it can’t be fixed, it can get replaced
• Just one call away
• Most major systems and appliances are covered under the Standard Plan

To get more information regarding home warranties, and whether it is the right choice for you, contact our preferred home warranty, Katy Richards from HMS.

If you are ready to buy or sell and you don’t have a Realtor yet, check out our real estate professionals! They are ready to get you started, and get your moved.

Which Renovations will Boost Your Home Value?

Increasing the value of your home is easier than you might thing. According to Remodeling Magazine’s Cost vs. Value Report, some of the best renovations are done on the exterior of the home, such as siding, windows, door replacements, etc. These renovations boost your curb appeal, which is what gets buyers in your door. Beyond curb appeal, there are certain renovation projects that yield a higher return than others. The following are the top-ranking home renovations:

Kitchen
A minor Kitchen renovation returns 83% and typically costs under $20,000. Kitchens are one of the first things home buyers look at. A minor kitchen remodel would entail new cabinet doors, new cabinet hardware, granite countertops, stainless steel appliances, fresh paint, new flooring, and a mid-priced sink and faucet.

Bathroom
A bathroom renovation returns 77% and typically costs around $10,000. Just by giving it a new white toilet, a fresh paint job, new fixtures, a new shower faucet, and ceramic tile floors will give you more bang for your buck.

Attic Bedrooms
Adding an Attic bedroom is one of the most expensive remodeling projects, but yields an 88% return. Anytime you expand the square footage of a home, you boost the selling price tremendously. It’s also the least expensive way to add a bathroom and bedroom into the existing footprint of a home

It’s important to note that what’s popular now, changes about every five years, so consider how much longer you plan to stay in the home before you do any major renovations.

Home Buyer Must Haves:

• Replacement Windows
• Garage Storage Space
• Walk-In Kitchen Pantry
• Energy Star Appliances
• Finished Outdoor Living Spaces
• Stainless Steel Appliances
• Granite Countertops
• Hardwood Floors

Renovation Tips

Talk to a Real Estate Professional. Ask a Real Estate agent about home features that are a must-have among home buyers in your area.

Keep the style and color scheme simple. Go for neutral colors for walls, countertops, cabinets, and appliances. Neutral surfaces blend with all styles, appealing to more buyers.

Avoid the extremes. The biggest mistake homeowners make is spending more on a remodeling project than their home value can support. Spend between 6-10 percent of the total home value to get fair returns.

---

If you would like more information on renovating your home, please give us a call at one of our agents a call. We will give you the information you need to boost your home value and help you get in touch with contractors, painters, etc to help get you started.

Home Owners Association 101

If you currently live in a suburban community, or plan to move to one, you probably deal with a Home Owners Association. And I bet if you do live in an HOA, you’ve never given it too much thought until you’ve had a problem. HOAs enforce the community rules, so you should probably learn the ins and outs, as well as the pros and cons.

What is an HOA?

An HOA (Home Owners Association) is an organization in a subdivision, planned community or condominium that makes and enforces rules for the properties in its jurisdiction. These rules are called covenants, conditions and restrictions (CC&Rs). These regulations include things such as the architecture of your home (i.e. height of fences or restrictions on window coverings). Other regulations include residential behavior and common responsibilities (fees and fines).

Typically HOA fees range from $200-$400 per month. According to the US Census Bureau, the average annual dues for HOAs are $396. Membership is normally mandatory for all property owners, as well as monthly dues. Depending on your HOA, some will provide services such as snow removal, maintenance of landscaping in common areas, organizing events and meetings for residents, etc.

Pros

Amenities

If you have an HOA you will have access to amenities like a pool or fitness center or tennis courts close to home.

Services

The fees you pay to an HOA go toward services such as maintenance, snow/trash removal and/or lawn care. This comes in handy on those blistery winter days!

Neighborhood Upkeep

The rules of the HOA are put in place to maintain the appearance of a neighborhood. It helps prevent property neglect, and overall, helps you and your neighbors maintain your property’s value. Typically homes in an HOA have a higher resale value compared to those that aren’t in an HOA.

Mediation

Is your neighbor’s dog creating a lot of ruckus? Are they having too many late night parties? An HOA helps handle disputes between residents so you don’t have to. They will be able to resolve a problem quickly and easily with little animosity.

Community

HOAs typically host several events, meetings and activities to help bring neighbors together, creating a tight knit community. Who wouldn’t love that?

Cons

Dues

HOAs operate on funds provided by its members, and these fees are just one more bill to consider when moving into a home regulated by an HOA. Typically HOA fees tend to increase year after year, just like any other expense.

Limitations

Really want to paint your home purple? Well if you live in an HOA, you may not be able to. If you don’t want a third party telling you what you can and cannot do to your home, then an HOA may not be right for you. 

Forced Foreclosure

If you do not pay your dues within a set time frame, an HOA can put a lien on your home or force a foreclosure on your property. Yikes!

Renting

Thinking about renting out your home? Depending on the HOA, some have to screen and approve occupants, making it a longer process. Even how much you charge for rent can be regulated.

If you are thinking about buying in a neighborhood with an HOA, find out all the information you can about dues and regulations. Typically your agent will get you a copy of the rules, regulations, and bylaws before you sign the purchase agreement or make your offer contingent upon your receipt and acceptance of the rules. Consider the pros and cons against your own lifestyle, and stay informed!

Check out our Chesterfield Neighborhood Series to get a feel for some of the top communities in this area, such as Brandermill, Woodlake, and Hampton Park!

If you are ready to start the home buying process, contact one of our Real Estate Agents today and get started! We will give you the tools to make the best decision for you and your family. Call us today at (804)639-9001!

Buying an Existing Home

In our last blog, we discussed the pros and cons to Buying a new construction home. Well to better help with your decision on what type of home to look for, lets take a look at the pros and cons to a resale/existing home, a.k.a. a home that has been owned before.

Pros

• Older, more established neighborhoods may have less of the “cookie cutter” appearance, making each house unique in its own way
• More choices and more styles to choose from
• Existing homes may need updating or repairs, which means the price can be negotiated
  • Individual sellers are often more negotiable on price – they may be motivated to sell faster

Cons

• Typically less energy-efficient than new homes
• Require ongoing maintenance which can turn into costly repairs if not taken care of
  • Renovation expenses
• Outdated floorplans – not getting exactly what you want

To get advice and help on shopping for a new home, make sure to contact one of our Real Estate Agents today! We will give you the tools to make the best decision for you and your family. Call us today at (804)639-9001.

Buying a New Construction Home

Just like when you go to buy a new car, you have to decide whether or not you want to buy it new or used. Of course there are advantages and disadvantages to both sides. Things like price and quality are factors that go into making this type of decision.

In the Real Estate market you have new homes vs existing homes. “New” homes mean exactly what you think it means – brand new, just built properties, that have never been lived in before. “Existing” homes are homes that have been owned before, most of which were built between the 1920s and 1970s. Recent studies have shown that twice as many people prefer new homes to existing. So why is that? Which is best for you and your family? We’ve laid out the pros and cons of new homes, to help you with your home buying decision!

Pros

• Homes that have just been built are typically more energy efficient, which means lower utility bills (hooray!)
• New homes are typically equipped with brand-new appliances and the latest technology (alarms, speakers, internet wiring, etc)
• Easier to maintain and need little repair, if any. The house is typically covered by a warranty
• Typically less expensive – new communities being built are created with smaller yards, keeping their price low
• The gratification of being the first owner! Breathe in that new home smell

Cons

• When you buy new, there really is no negotiation on the price of the home – it’s usually fixed by the builder
• Sometimes, new communities typically have the same type of home throughout the neighborhood – same floor plan, same landscaping, etc.
• Smaller lots
• High association fees

To get advice and help on shopping for a new home, make sure to contact one of our Real Estate Agents today! We will give you the tools to make the best decision for you and your family. Call us today at 804.639.9001.

Pre-approval vs Pre-qualify and the Loan Process

Are you looking to finally dive in and buy a home? Then that usually means its time to do a little loan shopping. But before you do, make sure you understand the process and you know the difference between getting pre-approved and pre-qualified. They sound like they are the same, but in fact they are not!

Pre-qualification

This is the first step you will want to take when buying a home. Getting pre-qualified basically gets you an idea on how much a bank will loan you, so when you are out home shopping, you have a price-range in your head. Typically, a loan officer will ask you about your income, assets, debts, and projected down payment. The loan officer will then calculate what type of loan you would likely be qualified for. This process can be done over the phone and will take only a few minutes.

Pre-approval

In this step, the process is more involved and requires an appointment with your lender. Your lender will gather all the information it requires to offer you a loan. Your credit report will be checked and you will need to bring the following items with you to document your identity and assets.

• ID, including Social Security Card (for FHA loans)
• Pay Stubs from the past 30 days
• Federal tax returns (including all schedules, W-2 or 1099 statements, and K-1 statements) from the past two years
• Statements for all checkings, savings, investment, and retirement accounts for the past 60 days
• Statements for any installment loans (credit cards, car payments, student loans, child support, etc.) for the past 60 days
• Evidence of mortgage and/or rental payments for the past 2 years, such as canceled rent checks or bank statements

Documentation requirements will vary based on lender and loan type so work with your local lender on your financing options.

As a result of the pre-approval process, you will receive a good faith estimate, which is a document that details the likely terms of the loan including the interest rate, closing costs, and loan type (fixed-rate, adjustable, etc).

Getting pre-approved means that your approved to get a loan, it does not guarantee you the loan. Once the prospective house is appraised to make sure the price you’re paying isn’t higher than the house’s market value, commitment to the loan will then take place.

It’s highly recommended to get a pre-approval letter prior to shopping for a home. Many sellers will not accept an offer from a buyer if they do not have a full pre-approval letter.

If you are ready to start the lending process, contact our preferred lender Kip Painter with Monarch Mortgage and get started! We can’t wait to help you find your new home!

Reasons Why Richmond is Awesome Part 2

In our previous blog, we discussed some of the reasons why Richmond is so awesome. Some of those reasons being its historical significance, its love for craft beers, exceptional local cuisine, and its wide array of outdoor activities to keep Richmonders active.

But we just couldn’t stop there. There are so many more reasons to love Richmond and its surrounding communities. If you’re not convinced yet, don’t worry you will be!

Education

Richmond offers a full range of undergraduate, graduate and professional degree programs at more than 10 colleges and universities.

Home to the University of Richmond – Go Spiders! 

The University of Richmond offers students a combination of the liberal arts with law, business, leadership studies, and continuing education. In 2011 it was ranked #1 for international business education in Bloomberg Businessweek. In 2015, Richmond tied for first in the bachelor’s institutions category of universities producing the most Fulbright U.S. scholars.

Virginia Commonwealth University – Wreak Havoc! 

VCU is one of the nation’s top research universities, enrolling more than 32,000 students with 63 different bachelor degree programs. It is ranked among the best universities for minorities among non-historically black schools. VCU Medical Center is the number 1 hospital in Richmond and the only level 1 trauma center in Central VA.

Richmond is home to several other colleges such as Virginia State University, Strayer University, and ITT Technical Institute. Great place to propel your career at any one of these top universities.

Chesterfield County

The Richmond region is made up of 5 distinct counties that make this area easy to love by anybody (Chesterfield, Hanover, Henrico, New Kent, and Richmond City). Being the largest, Chesterfield is home to many families, with over 25 communities and 1,000 beautiful neighborhoods to choose from. The average sale price for homes in Chesterfield in 2015 so far is $253,306. Not to mention Chesterfield has the lowest crime rate in the Richmond metro region.

The reputation of Chesterfield County Public Schools is what inspires many families to live in Chesterfield. In a 2010 survey, nearly 86% of residents rated Chesterfield Schools as excellent or good. There are 11 high schools, each includes their own specialty centers, helping students find what they want to do with their future. Chesterfield County students generally continue to outperform their peers across VA on SOLs and has a graduation rate of 90%.

Check out our Chesterfield Neighborhood series to learn more about the Chesterfield community!

Parks

Richmond and its outlying communities are filled with parks for just about anyone. In our previous blog, we mentioned the outdoor activities surrounding the James River. Just about anywhere you go in Richmond, there will be a park nearby.

Sprawling state parks, such as Pocahontas State Park, features hiking, biking, fishing, camping, lakes, and horseback trails. The Richmond region boasts more than 100 parks, most that are open from dawn to dusk. Not to mention the thousands of neighborhoods that come with pools, courts, playgrounds, and fields – every child’s wonderland!

Ready to move?

People from the North and all over the East Coast move to Richmond every single day. Millennials, baby boomers, you name it. It’s a place for everyone, and if you are ready to make the move, or get more information, call one of our Real Estate agents today, and let our local experts help you! Get to know Richmond like we know Richmond.

Reasons Why Richmond is Awesome

One of the top places to visit this summer. One of the 10 Best Cities to Relocate to in the US. Named one of the 50 Best Places to Live in America in 2015. Voted the Best River City by Outside in 2014. Named Top Worldwide Destinations in 2014, next to places like Bali, Rio de Janeiro, and Santo Domingo. One of America’s 8 Most Overlooked Cities. If that right there doesn’t convince you that Richmond is an awesome place to live, keep on reading!

To describe Richmond in just one word is nearly impossible. Active, historic, trendy, diverse…the list goes on. Over the years, Richmond has redeemed itself, and is quickly becoming a city that many are flocking to. Young, old, single, married, you name it. It’s a city made for anyone and everyone.

Historic

Are you a history buff? Richmond, famously known as the capitol of the Confederacy, was practically ground zero for the Civil War. More than 400 years of American History live through the monument lined cobblestone streets, with world-class museums and colonial architecture at every corner. Visit Henricus Historical Park and see what it was like to live in an English Settlement in the New World. Or stop by St. John’s Church where Patrick Henry gave his infamous speech “give me liberty, or give me death.” Check out the list of all the historical sites in Richmond here.

Active

One thing you will notice about Richmond, is the people here are always on the go. Whether its biking, running a marathon, or paddle boarding on the James River, Richmonders don’t stay still for very long. When you live in Richmond, you will never be bored again.

The mighty James River is a field of activity during the warm months. It is the only place where you will find Class III and IV rapids in an urban setting. Whitewater rafting, canoeing, kayaking, tubing, paddle boarding, you name it! Belle Isle and Pony Pasture are just a few popular spots to relax and unwind by the water.

Richmond is also known for being a bike friendly city. It is the perfect place for mountain biking and road cycling enthusiasts. The city of Richmond has earned a bronze-level recognition from the League of American Bicyclists as a bike-friendly community. Also, Bike Walk RVA won Bicycling Magazine’s People’s Choice Award in 2014.

Craft Beer and Local Cuisine

In case you haven’t heard, Richmond is a craft beer town, and has quickly become a melting pot of microbreweries. No matter what your taste buds crave in a beer, the Richmond region has it. From right downtown to out on a 220 acre farm, Richmonders are quickly becoming beer aficionados. Hardywood Park, Gingerbread Stout, Garden Grove Brewing, Ardent, Midnight Brewery – the list goes on and on.

Along with local craft breweries, the Richmond region has captured America’s taste buds with local cuisine that is unique to the city. With over 900 area restaurants, Richmonders can indulge in down-home southern barbecue, fresh, decadent seafood, and mom-and-pop eateries cherished by locals. Take a trip town to the Fan, or Carytown and find a locally-owned restaurant or eatery on every corner. Of course we have the big dogs too, like Flemings, PF Chang’s, etc. Come hungry!

Ready to move?

People from the North and all over the East Coast move to Richmond every single day. Millennials, baby boomers, you name it. It’s a place for everyone, and if you are ready to make the move, or get more information, call one of our Real Estate agents today, and let our local experts help you! Get to know Richmond like we know Richmond.

Top 10 Reasons to Work at Base Camp Realty

1. Led by the Best

Base Camp Realty is owned and operated by John O’Reilly, the Broker. John has been in this business for 16 years, and has enjoyed a tremendous amount of success. In 2006, he was voted on the of the 50 Rising Realtors in the Nation by RIS Media Magazine. He has always been in the top 1% and stays very involved in the Real Estate business as well as the community. He is a part of the Board of Directors at RAR, and the RPAC here in Richmond. His knowledge and expertise in the field helps our agents grow to their fullest potential.

2. Training for all Levels

At Base Camp Realty, we have a wide array of agents, from ones just starting out in the business, to those who have a multitude of experience. We provide our agents with some of the best training to continue their ongoing education. Base Camp has partnered with Peak Productions to host a series of training sessions to help our agents generate more leads, close more transactions and get in control of their finances.

3. We’re Not Just a Team

We’re a family. Our agents are not another number. Once an agent joins the Base Camp Realty team, they become apart of a family. Our agents work together in a cohesive bond, helping each other succeed. Together, our agents have 24 years of combined experience. Due to their hard work and dedication, Base Camp Realty ranks in the top 4% of all real estate firms in the Richmond area.

4. Community Involvement

Our motto is “We’re not just your Realtors, we’re your neighbors.” We focus our agents on being hyper local, making us the number 1 go to when a potential client is moving to the area. Base Camp Realty makes sure to involve itself deeply in the community here, whether it’s sponsoring a local team, or marching in a neighborhood parade. When an agent works with us, they immediately become apart of the community where they can build their network.

5. Location, Location, Location

The office of Base Camp Realty is centrally located in Chesterfield, just off Hull Street and Winterpock, seconds from popular neighborhoods like Brandermill, Woodlake, Hampton Park, and Magnolia Green. Not to mention our office amenities provide our agents with all the supplies they need for their business.

6. Marketing and Lead Generation

Our website gives our agents a competitive edge by giving them digital marketing tools and lead generation in one place. Agents can manage their clients with our CRM tool, develop and execute email drip campaigns with our site’s marketing tools, and market themselves with their own personal website.

7. Free from Fees

We allow our agents to do their business without some of those pesky fees. No Desk fees, No Transaction Fees, and no Franchise Fees.

8. A Dedicated Team and Staff

At Base Camp Realty, our goal is to ensure that our agents are well taken care for, and hall the tools they need. Our office staff is made up of Candice, our receptionist, Brenda our Financial/Office Manager, Rebecca our Marketing Director, and John O’Reilly our Broker. Our staff is here to assist you in your business and answer any of your questions of concerns.

9. Getting Agents the Exposure They Need

Base Camp Realty combines Digital Marketing and Traditional Advertising to get our agents and their listing the exposure they need. With our social media presence, optimized website, and magazine, our agents are exposed to thousands of possible clients every day. To put in perspective, Base Camp is the 2nd most followed Real Estate Company on social media in Central VA, with over 4,000 followers on Facebook, Twitter, and Google+ combined. Our website is optimized for mobile, capturing over 3,000 unique visitors a month. Not to mention our magazine which includes our agents and their listings, is distributed to over 100 locations in Chesterfield.

10. Unlimited Growth

At Base Camp Realty, we continue to climb to new heights, and we are constantly expanding our reach across Central Virginia. Starting our company in 2008, we have seen tremendous growth in our brand and our company, and plan to continue this growth in the years to come.

As a company we have over 20 active agents who have done over 220 transactions in 2014, placing our office in the top 7%.

As a brand, we have grown exponentially online and in the community of Chesterfield at a fast rate in 2014. We are constantly finding new talent who help us accomplish our goals as a company, and in turn, we help them accomplish theirs. Our goals is to become the #1 Real Estate Company on Social Media, and to increase our ranking on Google, to get our agents even more exposure.

---

Whether you’re considering a career in Real Estate or you’re looking to enhance your current Real Estate career, we welcome the opportunity to speak with you! You can email us at opportunities@basecamprealty.com or give us a call at (804)639-9001.

See what our agents say about us.