Before you purchase a home, hire an inspector to make sure the structure is sound and there aren’t any defects.
An inspection helps buyers identify serious issues with a house, condo, townhouse or other type of home. Some lenders require home inspections before they’ll approve closing on a mortgage loan. Professional home inspections aren’t always a required part of a purchase contract; they’re a smart part of buying a home and a property investment.
Whether or not a loan officer insists on an inspection, getting a home inspected is to your advantage. No one wants to find out there’s something wrong with a property after they’ve signed the papers.
Here’s what you need to know about home inspection, followed by a handy home inspection checklist:
Not all home inspections cover the same points
There will likely be numerous home inspection companies and professionals to choose from when you’re buying a home. As you look for an inspector or consider inspection company referrals, keep in mind that not all inspections cover the same points.
When inquiring or interviewing inspectors, make sure those you’re thinking of hiring will inspect the inside and outside of the property. Inside, an inspector should look for leaks, fire hazards, the health of the house systems and the life of the water tank. Plumbing and wiring inspection are essential to make sure these systems are up to code. Inspectors should look at a home’s ventilation systems and smoke detectors. If the home has appliances, they should be tested.
Outside, inspectors should check for cracks in walls and the foundation. Missing siding, damage to the roof and cracked woodwork are all issues that may point to structural problems with a home.
Most general home inspectors won’t check septic systems or insect damage. These are points that you should hire specialists to address.
Buyers should choose their own home inspector
As a buyer, you can certainly negotiate who pays for a home inspection. However, consider that sellers paying for an inspection may want to choose the company themselves.
It’s in your best interest to choose your own inspector when purchasing a home. This may mean that you’ll have to pay out of pocket for the inspection. This service is not usually included in the fees a lender will roll into a loan.
The cost for a home inspection is typically a few hundred dollars. If you need in-depth inspection of a property, such as a review by a structural engineer, prepare to pay much more.
In some states, a home inspector must have a license. If you aren’t sure where to look for a licensed home inspector, your real estate agent should be able to offer a referral. It’s a good idea to verify any inspector’s license to make sure you’re hiring someone qualified.
Home inspections can offer a way out of a purchase contract
Every purchase contract is different. Buyers should refer to their binding agreement with questions about getting out of a sale due to issues that come up during a home inspection.
It’s wise to write a purchase offer that lets you out back out of a sale if an inspection reveals issues with which you don’t want to deal. Sometimes, buyers are willing to spend the extra time and money to fix problems. Often, it’s just not a good idea. If your agent or you have written a good purchase offer, you’ll be allowed out of the contract should the home inspection uncover problems.
If a home inspection uncovers damage to a property, buyers can ask the seller to pay for repairs as part of the contract. Buyers and their agents may want to submit a Request for Repairs that negotiates part or all of the cost of repairs, or asks for repair work to be completed prior to close of escrow. In lieu of money for repairs, you can request a cash credit (reduced price) for the home.
Refer to the home inspection checklist
It’s always smart to be present when an inspector is checking out your potential home. If you’re working with an agent, your agent should also be there at the inspection. Some of the specific points you’ll want to make sure your inspector looks at include:
- foundation
- lot
- roof
- chimney
- exterior
- attic
- interior leaks
- basement
- electrical
- plumbing
- appliances
- heating/cooling system
- odors
- mold and mildew (consider a specialist in this field)
An inspection is a crucial step in the home purchase process. Remember, it’s there to help you, not discourage you. Many home inspections reveal minor issues that buyers can live with. There aren’t many houses that are completely free of defects.
Having a real estate professional by your side is important during the home inspection process. If the inspection report brings up any issues that you don’t understand, or aren’t comfortable making a decision about right away, your agent can help you navigate the situation wisely and within the time frame indicated in your contract.
Source: www.bhgrelife.com
- Don’t try to second-guess interest rates or the market by waiting for the “right time”. If you find a home you like, buy it.
- Accept the fact that no house is perfect. Concentrate on the items important to you and let the minor flaws go.
- Get approved for a mortgage first before even looking. This will set your price range and also enhance your offer.
- Don’t look at every house on the market just because they are there. Be picky and look at the most appealing. Then add to the list if nothing fits.
- Don’t worry if you feel buyer’s remorse after making an offer. It is common and will pass. Buying a home is a big decision but the benefits far outweigh the negatives.
- Work with an experienced local agent. Buying can be emotional so pick someone you’re comfortable with and respect.
Contact me if you are looking for an accredited buyer’s agent with over 24 yrs. of experience to make your buying experience a success! 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
With rising prices and low inventory, it’s challenging to buy your dream home. Below are some tips to help position yourself for success.
- Get pre-approved for a mortgage before looking. This is different than getting pre-qualified. Pre-approval requires documentation and is not based on estimates.
- Work with a Realtor who has experience and a proven track record. They will provide invaluable advice.
- Be prepared to move quickly. You don’t have days to think it over.
- Don’t make lowball offers. Your offer should be as attractive as possible. Things to consider – make a larger deposit, offer a flexible closing date, don’t sweat the small stuff, and have as few contingencies as possible.
- Decide what you are willing to compromise on ahead of time. Figure out what matters most – is it location? Size? Style?
It’s expected to continue as a sellers’ market and you need to be mentally prepared to up your game when it comes to buying. Contact me if you want expert guidance through every step of your home purchase. 603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com
You’ll be moving in the right direction with Better Homes & Gardens Real Estate - The Milestone Team.
Buying a home is a multi-step process that can be complicated, particularly for first-time buyers. It is crucial to be aware of each step, as competition can be steep: one misstep and the keys to a dream home could go to another family. Read on to discover the best path to acquire one of the greatest investments to date.
Step No. 1: Decide on a REALTOR®
A real estate agent and a REALTOR® are different. While both must be licensed to sell real estate, a REALTOR® goes through numerous background checks and must follow a strict code of ethics, which is consistently enforced by local real estate boards. Another distinction between a real estate agent and a REALTOR® is that a REALTOR® is a member of the National Association of REALTORS®. Ask for referrals and read online reviews/testimonials. Interview multiple agents to find the right one. Look for agents who have realistic expectations and are experts in desired neighborhoods.
Step No. 2: Get finances in order
A three-digit credit score and credit report tell financial stories more than bank accounts do. Everyone must carry debt in some form, and the process of paying it can span a lifetime. Paying cash for everything results in a lower score than responsibly carrying debt. A steady job and income can bypass a bad score if prospective clients are willing to put down 10-20 percent. To improve scores, future homeowners should pay all bills on time. A single missed payment can stay on credit reports for seven years, with recent delinquencies impacting scores the most negatively. Additionally, credit limits should not be exceeded, and balances should be kept below 30 percent of the credit limit.
Step No. 3: Apply for pre-approval
A pre-approval letter is a statement from a lender demonstrating that one is a qualified buyer who sellers will take seriously once ready to make an offer. Unless one plans on paying cash, a mortgage pre-approval is a good idea before beginning the home-buying process.
Step No. 4: Know the difference between wants and needs
Real estate agent will not know where to begin if a prospective client does not. Start thinking about must-haves. They can range from location to the number of bedrooms. Wants can include a pool or a guest home. Compromises are the things one is willing to exchange for needs. For example, a great school district can be attainable if the number of bedrooms is reduced.
Step No. 5: Begin the home search
Open houses will become a favorite activity when a real estate agent begins showing homes that fit criteria. This is a fact-finding mission. Take notes and jot down ideas about what is liked and not liked. This will streamline the process and give real estate agents all they need to know to make a happy homeowner.
Step No. 6: Check off mortgage approval
An accepted offer will begin the closing stage of the home-buying process. A lender will give the final approval for the purchase and specify the closing date. This is not the time to celebrate by splurging on big ticket items. Unexpected expenses can show up without warning. Paying property taxes or insurance for the first full year on the closing date might be a noted point.
Step No. 7: Get a home inspection
A good home inspector will audit the house from top to bottom, literally. They will look at the basement and the roof and everything in between, including the heating system, plumbing and windows. Given that purchasing a home is likely one of the largest investments a person will make, don’t skip this critical step. If repairs are necessary, this can be negotiated with the seller before the final sale.
Step No. 8: Prepare to close
Once at the final step in the process, one can pat themselves on the back for a job well done. The closing table is the desired location where the deed will be transferred from the seller to the buyer. John Hancocks should be ready because there could be hours of paperwork. An attorney or settlement agent will most likely be present.
May your new home be the happiest one on the block!
Source: www.bhgrelife.com
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
The answer is “yes”. It is both depending on the property you are trying to buy or sell. I know, the news is full of stories on the shortage of inventory, high demand, and rising prices. The truth is the type of market you face is dependent on the price point and condition. In general, our area does not have enough listings in the price range for the bulk of buyers who are buying. Home prices have reached unaffordable levels for many 1st time buyers. And the downsizing baby boomers have specific needs (newer, 1st floor master, near town amenities, mostly under $400k) for which there is pretty low inventory.
Overall, sales are about the same as 2016 in New London, Sunapee, & Newbury, mainly due to lack of desirable inventory. New London is actually down from last year YTD, thru Oct. With a median price of $342,000 in these 3 towns combined and an average days on market of 127 days, it can be confusing to understand what type of market is in play.
Bottom line, buyers trying to find a move-in ready home under $300k are in a sellers’ market. Sellers with homes that don’t fit the desired condition and price for the bulk of buyers are in a buyers’ market. Whether buying or selling, contact me if you want to know what you are facing!
Figures are based on information from the Northern New England Real Estate Network, Inc. for the period 1/1/16 thru 10/31/16 and 1/1/17 thru 10/31/17.
Donna Forest 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
Don’t Be Surprised By….
Next to price, most buyers focus on the location and appearance of the property. Below are some lesser known factors to consider when house hunting.
- Private Roads – if the house is located on a private road, find out if there is a road maintenance agreement with the other owners. Lenders may require one before they issue a mortgage.
- Flood Zone - Looking at waterfront? Flood insurance could be required if the structure is located in the flood zone.
- Lead Paint – Homes built prior to 1978 could contain lead paint and the paint flakes or dust can present a health hazard. Even if the paint is in great condition, keep in mind any renovations by a contractor that would disturb areas with lead paint may cost more as they have to be certified and follow specific safety practices.
- Age of Systems – Even if it is well maintained, systems don’t last forever. Well pumps, furnaces, water heaters, and even septic systems have a life span. Knowing the age of these systems will help prepare for future expenses and may factor into your offer price.
Avoid costly surprises on your home purchase by working with me as your Accredited Buyer’s Representative! 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com
Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team
Buying a home is a big investment. Knowing what to steer clear of will help make this experience a positive and rewarding venture. Here are some common mistakes to avoid.
- Not knowing what you can afford. Get pre-qualified with a lender. Lending standards have tightened considerably; it’s important to know IF you can borrow money and how much.
- Failing to consider additional expenses. Taxes, insurance, utilities, and maintenance are costs on top of your mortgage.
- Being too picky. There is no such thing as a perfect home. Every house has trade-offs. Evaluate what’s important to you and let the little stuff slide.
- Not researching the neighborhood. Check school systems, traffic, potential noise situations, etc.
- Not hiring your own agent. Hire a buyer’s agent and use their expertise to represent your best interests.
The more educated you are as a buyer, the better chance you’ll have for a smooth and easy home buying experience. Give me a call if you are looking for an accredited buyer’s agent! Donna Forest, Broker Associate, 603-526-4116; Donna@DonnaForest.com; www.DonnaForest.com
As our area market continues to see strong demand and low supply, it becomes more important for buyers to be prepared and ready to make an offer when the right property comes along. Here are a few tips to help strengthen your buying position:
- Do your homework and know what you are looking for in a home.
- Get pre-qualified for a mortgage before looking.
- Stay in touch with your agent and be ready to view any new listings that match your criteria.
- Don’t play games when bidding; you’ll likely be competing with other offers.
- Don’t make your offer contingent on selling your house first. It will be the last offer considered if you do.
While it can be discouraging to buy in a tight market, remember, “Luck favors the prepared”. Be ready to act and to present an attractive offer. Contact me if you’d like to know how to make home buying an easier process. Donna@DonnaForest.com, www.DonnaForest.com, 603-526-4116
Did you know 92% of buyers in the Northeast used a real estate agent to buy their home? Buying a home is one of the biggest financial decisions you can make. Whether a first time buyer or not, using a buyer’s agent means you have a professional in the business committed to working in your best interest. Below are just a few of the many advantages you get:
- Local knowledge & insight
- Expertise in contract writing & negotiating
- A buffer to keep emotions from derailing a sale
- Guidance on the whole process from offer to inspections to closing
- A reputable list of inspectors, attorneys, etc.
- Advice on what to do in the event of…
A good buyer’s agent is an advisor and advocate so buyers can make informed decisions.
Thinking of buying? Contact me to work with an Accredited Buyer’s Representative® and put my 23 yrs. of experience to work for you! 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com.
Searching for the perfect home can be challenging, regardless of the market, and even more so when it’s a seller’s market. It can feel like you’re constantly hitting roadblocks and meeting dead ends, as the sellers are in full control. However, all you need is a bit of momentum, encouragement, and these five tips from our Ask a Pro expert Karlton Utter to survive a seller’s market and find your perfect home:
1. Come to the Table Prepared with a Prequalified Loan
Be fully prepared with a prequalified loan as soon as possible. Obtaining a prequalified mortgage shows sellers that you are a serious buyer who is able to meet your end of the sale to close the deal. This puts you on an entirely new playing field, with a little more control than what you would have had without a prequalified mortgage.
2. Be Taken Seriously by Bringing all the Paperwork
Show the sellers that you’re not kidding around. In a seller’s market, it’s important to show them that you mean business and that you and your offer should be taken seriously. Show up to the table with not only a prequalified loan but with all the paperwork that supports the proof of funds, such as an approval letter from the lender. Actions speak louder than words, and this will definitely entice the seller to work with you!
3. Be Flexible and Discuss Compromising
In a dry market, it’s important to remain flexible. Placing too many limitations on the real estate market will make it even more challenging to find a home. Widen your horizon within the real estate market, as this could introduce you to new homes that you would have never seen otherwise. Being more flexible can also make the process of buying a home easier. If you are hesitant to look outside of your pre-determined boundaries, it’s important to consider compromising. You may be required to give something up – such as a desired feature in a home – just to stay within the area you’re set on. Sometimes by compromising a little, you could have it all and possibly for less.
4. Be Readily Available to Sellers as Much as Possible
With so many buyers looking for homes, timing is essential. It’s important to remain readily available and open for communication with your sellers, and be prepared to make a move on an offer at a moment’s notice. Make it a goal to respond quickly and follow up on requests – or just follow up to get updates if you have not heard back. Communication is not only important for timing, but it also builds rapport with your seller. This can make the difference in getting the offer and property that you want.
5. Don’t Play Hard to Get
Now is not the time to play hardball. A seller’s market leaves very little control to you as a homebuyer. As such, you need to be willing to follow the seller’s lead, as opposed to challenging it with bullheaded negotiation tactics that work in other situations. Limit the contingencies, make a bold offer and if the sellers make a counter offer, proceed carefully by negotiating from there.
With the proper approach, you can find your ideal home – at your ideal price – even in a seller’s market.
Source: reprinted from www.bhgre.com