Ten Questions to Ask Your Home Inspector

The above referenced article includes the "good" answers to these important questions. You should always discuss these things things with the home inspector before having them come out to the property. Below are ten questions to discuss:

1. What does your inspection cover?
2. How long have you been practicing in the home inspection profession and how many inspections have you completed?
3. Are you specifically experienced in residential inspection?
4. Do you offer to do repairs or improvements based on the inspection?
5. How long will the inspection take?
6. How much will it cost?
7. What type of inspection report do you provide and how long will it take to receive the report?
8. Will I be able to attend the inspection?
9. Do you maintain membership in a professional home inspector association?
10. Do you participate in continuing education programs to keep your expertise up to date?

Why Do You Need a Real Estate Agent?

A real estate agent can help you in a number of different ways:

• Saving Your Time: Selling your home yourself will involve long hours and quite a bit of money (for marketing expenses). “For sale by owner” homes generally spend more time on the market than their represented counterparts. An agent can help save you time, money and will distinguish between the serious prospects and the casual bystander.
  
  
• Specialized experience and in-depth knowledge: Real estate agents have the skills to answer your questions and guide you through the process. They know the current market conditions and can evaluate how your home fits in that market. Agents have contacts in areas such as financing and should have a list of potential buyers on hand. As well, an agent is not emotionally involved with your home and, because of this, can more objective about its value.
  
  
• Setting the right price: A real estate agent will be able to help you set a realistic price that will be appealing to buyers. The agent will go over your home with you and advise you on how to get it into shape so you can get your desired price.
  
  
• Marketing: It is important to have an agent who can get the word out. Your home is on the market and you want to make sure that people know it. A real estate agent is an expert at marketing your home to other agents as well as to prospective buyers. The costs involved in marketing your home are part of their service to you. The agent will hold open houses and should have access to the MLS (Multiple Listing Service) and other means of letting buyers know your home is available.
  
  
• Negotiator: The agent will screen offers and counter-offers and negotiate an agreement according to your instructions.
  
  
• You’ve made the sale, now what? When you accept an offer, your agent will help draw up a legally binding contract that protects your interests and makes certain that certain conditions are fulfilled. Your agent will also help you with the details on closing day, ensuring that there are no last minute glitches.

Things to Remember When Buying a Home

When buying or selling a house, with the buyer in particular, it is important to make sure that all bases are covered. After the purchase, the house becomes theirs; the good, the bad and the ugly. Regrets are quite often the result of following bad advice or forgetting to pay attention to the bigger picture. It is important to take some time to think things through and make sure you do not make these most common mistakes.

Not Performing Inspections

Do not forego your right to inspect your new home before closing. Inspection contingencies should definitely leave you the option of backing out of a contract if you find that the house needs more repairs than you are willing to handle. An inspection of the entire house and property is important, but checking for radon, pests and mold as well as other potential problems.

Neglecting to Get All Agreements in Writing

Hand-shake agreements are not advised in serious situations such as homebuying. Verbal agreements cannot be enforced and unless terms are in writing there's no guarantee that you and the person you are working with will have the same memory and interpretation of what was agreed to. Put everything in writing, and make sure each party signs off on it.

Not Taking a Final Walk-Through Before Closing

The final walkthrough before closing is your opportunity to inspect the home one last time before the deal is final. It is recommended that you do a final walk-through the house after the house is vacant, on the day of closing if possible, and don't allow anyone talk you out of it.

This article also includes several other important things you should not forget when purchasing a home.

Find the House you Want

You will have to be a good detective to find and buy a home you love. The home buying process is a journey that requires you to pay attention to small details, ask questions, take notes and stay current with the real estate market in your area.

Determine Your Wants and Needs

Grab a piece of paper and divide it into three columns. If you'll have a co-owner, have that person make a list too, but don't share ideas just yet.

Column 1, List Must-Have Features:

• If the house must be located in a specific neighborhood or school district.
• If the house must have 3 bedrooms, a 2 car garage, a large kitchen, a view.
• If there must be no restrictions against a home-based business.
• If the home must be one level, with few or no steps.
• List every feature you feel is a must.

Column 2, List Features You Would Like:

• A basement or a deck.
• Whirlpool tubs, walk-in closets.
• A certain type of architecture.
• Gas heat.
• Central air conditioning.
• List all features that are important to you--but that you might be flexible about.

Column 3, List Features You Do NOT Want:

• A home located next to a highway or in a congested area.
• Certain types of architecture.
• Homes that need a great deal of work.
• List all features you absolutely cannot accept.
  

"Review your list. If your co-owner made a list, compare them to see if your priorities match. If they don't, you'll need to compromise, revising your lists so that both of you are happy.
Making a list is a good exercise because it forces you to think about your wants and needs, but I can almost guarantee you that the list will change and evolve when you actually begin to look at houses. Even home buyers with an unlimited budget rarely find the "perfect" home."

Common House Features That Turn Off Prospective Buyers

This article lists the top ten things that turn off prospective homebuyers.

We’ve all been to those houses; the small “hole in the wall” places with a certain odor in the air, toys in the yard and an ominous looking dog waiting on the front porch. So here’s the million dollar question: would you want to buy that house?

There are many reasons why people don’t buy homes; location, schools and size being among the top reasons. If you are truly serious about selling your house, and getting top dollar for it, you must avoid these common “homebuyer turnoffs.”

Among the top ten turnoffs:

• Odors
• Dirty Bathrooms
• Busy Wallpaper
• Bugs

Learn more about the top ten homebuyer turnoffs and what you can do to make sure that you receive top dollar for your home by clicking the external link.

Contingent or not contingent?

That does seem to be the question. Let's address this first from the sellers side. If your home is on the market and your agent presents a contract to you that is contingent upon the buyer selling and settling on their home, what should you do?

First you need your agent to do some extensive homework. He or she needs to:

• Find out if your buyer's home is priced right for the market
• Can your potential buyer get a loan if their home does not sell in time?
• What kind of financing does the buyer have?
• Do they have cash or is it all coming out of the house they are selling?
• How long will it take to sell their home?
• How many homes are on the market in their neighborhood?
• What if you, the seller are in the process of buying another house? Then what?

Your agent needs to protect you, so you don't end up without a home. You must have safety nets built into the contract of sale.

If you are purchasing another house, then you need to be contingent upon your home selling. You may need to rent back your current home for a few days or weeks until your settlement can take place on the home your buying. It is a tricky process with much to think about. The main concern should be, how do we, the seller, protect ourselves so we are not out of our house with no place to go. This can all be handled if everyone remains cool and collected. Someone wants your house, you want another house and everyone can get what they want and need if your agents' are communicating clearly.

Always insist that you are protected in writing. You need to protect your deposit monies making it clear that you cannot settle on your purchase until you close on your current home, therefore, if you don't close you are not committed to the other party. If you are selling yours but haven't' found your home of choice you need to make your contract contingent upon you finding home of choice.

Take a read of the attached article for other takes on the subject. Keep in mind that THE NUMBER ONE thing that must happen for any contingency to work well is COMMUNICATION.. with all parties involved.

Ten Things a Prospective Homebuyer Should Avoid Doing

Many prospective homebuyers make mistakes that could cost them thousands of dollars, or worse, the opportunity to buy their desired property. This article discusses ten things that every prospective homebuyer should avoid. Some things, like remembering to change your utilities from one house to another, could be considered a "no brainer." Below are some excerpts from the article:

You've just found out your credit is A+. That's great news, because a new car would look fantastic in the driveway of your new home. But hang on--if you are depending on a mortgage to move in, you'd best wait until after closing to buy that car.

An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment.

If you tack on a higher car payment, the bank might decide you can't afford the home.

Using cash to purchase the car could also create a problem, since banks consider cash reserves when approving your mortgage. If you must make a major purchase before closing, talk to your loan officer before you do it.

The second item on the list? Don't change jobs unless it's necessary.

Lenders like to see a consistent job history. They aren't usually as nervous if you change jobs within the same field, but it's better to stay put until the house is yours.

>Number Eight? Don't panic if the appraisal comes in low. At least not at first. There are some things you (and your agent) can do to correct the problem.

These items, along with six others are discussed in more detail in this article, found on About.com.

Using a Kick Out Clause

A kick out clause makes good sense in our current real estate market. If you click our post title, you can read the full article. A kick out clause is where a contingency clause is put in a real estate contract. This is usually used where a buyer still has to sell their home in order to buy the new one.

What the kick out clause allows is for the seller to continue to market the home and not remove it from the market. If another offer comes through before the original purchasers home has been sold, the seller is able to not miss a beat and sell the home to the new ready to go buyer.

A smart move in today's current market where the buyer may have a tougher time selling their home than the seller.

Getting Your Home Ready to Sell

This article explores a number of ways for home sellers to improve the condition and appearance of their home to prospective buyers. These simple items can add thousands of dollars onto the selling price.

For example:

• You never get a second chance to make a first impression. The author of this article suggests that, when selling, you "clean up your yard, rake the leaves, shovel the snow, and sweep driveways and porches. Get out the rags and cleanser and spend 30 minutes scouring your front door, porch, railings and steps." It really makes a difference!
• Keep your home smelling fresh and clean. Nothing will scare away prospective buyers faster than malodorous quarters.
• Take the time to remove dirt. "Pay special attention to the furnace room since every home buyer wonders what shape the furnace is in. 'If the furnace looks clean, it looks newer.'"
• Hire a handyman to repair minor leaks and small problems.

Check out the full text of the article or call Homes Buy Day for more ideas on preparing your home for sale. We make sure our customers know how to make the best impression on potential buyers.

What is Going on in the Real Estate Market?

Is it up, down, dead or just plain slow? I hear it everyday. Some agents in my office and my sellers are especially concerned. Their homes are staying on the market longer than their friends did just six months ago. I have personally seen some very large home builders adjust their prices downward by as much as 40,000.00. We they just ripping you off before? We all watched in amazement during the past few years of double digit price increases in new and resale homes. It was probably one of the fastest home appreciation periods in history. It could not have lasted. Why? Well, think about it, can your children afford to buy their first home? Can you afford to help them buy that first home?
There has been a major cooling in the market. It almost came to a halt. The properties that are selling are priced very fairly and are in excellent shape. So if you are a seller I strongly suggest you have a critical eyed friend inspect your property before you put it on the market. Now, more than ever, you must prepare your home for the buyer's eye. Below is an article from my web site that talks more about market conditions. Please visit my site at www.homesbuyday.com for up to date real estate news and information.

Home Sales Up or Down?
After cooling off for several months in a row, the sales pace of existing homes experienced a slight bounce in in the most recent report. Sales were up 5.8% over the previous month to a seasonally adjusted annual pace of 6.9 million homes. Compared to last year at the same time, sales were almost equal, down only .29%.
Indications are that this may be a temporary "bump" in the sales pace, partly because the weather was unseasonably warm during January.
Existing home sales are reported when they close, so most February closings came under contract in January. New home sales are reported when they come under contract and showed a decline of 10.5% during February.
Regionally, sales increased the most in the Northeast, up 19.19%. Sales were also up in the Midwest by 11.11% and by 5.11% in the West. Sales declined slightly in the South by 2.54%.
March sales figures will be released in late April.