First-Time Sellers – 5 Things You May Not Know

First-Time Sellers – 5 Things You May Not Know

Selling your first home is an exciting journey that comes with its unique set of challenges and learning curves. Even if you feel well-prepared and have partnered with a skilled real estate professional, there are several aspects of the home-selling process that might surprise you. Here are essential insights to help you navigate your first home sale effectively.

1. Pricing is Critical

Setting the right price for your home is crucial. Tempting as it may be to start with a high asking price, this can deter potential buyers and lead to a longer wait time in selling your home. Overpricing can necessitate significant price drops later on, which might give buyers the impression that there's something wrong with the property. A competitively priced home, on the other hand, is more likely to attract interest and sell quickly.

2. Preparation is Key

Before listing your home, take proactive steps by addressing repairs and any deferred maintenance. This not only enhances the appeal of your home but also prevents potential buyers from being put off by the work they would need to do. A well-maintained home generally sells faster and possibly for a higher price, as buyers perceive the care you've taken over time.

3. Understanding Disclosure Practices

Transparency about your home's condition is generally expected in the home-selling process. Sellers often share details about the property's history and current state, which can include past repairs and any existing conditions. Providing this information can foster trust and facilitate a smoother transaction by ensuring buyers are well-informed about what they are purchasing. This approach is widely regarded as a best practice in real estate sales.

4. Anticipating Closing Costs

Understanding potential closing costs is crucial when selling your home. These costs can vary and might include fees such as title insurance, transfer taxes, and other related expenses. It's important to be aware that these costs are part of the transaction and can sometimes be negotiated with the buyer. By familiarizing yourself with these potential expenses, you can better estimate the net proceeds from your home sale and approach negotiations with a more informed perspective.

5. Negotiations

Negotiating the sale terms is more complex than just agreeing on a price. As a first-time seller, it’s crucial to understand that nearly every aspect of the offer can be negotiated, including closing dates, contingencies, and even appliances included in the sale. Having a flexible strategy and an experienced real estate agent on your side can significantly benefit this process. Whether it's negotiating repair responsibilities or adjusting the closing timeline to fit your needs, being well-prepared to discuss these aspects can make a significant difference in achieving a favorable sale.

Navigating your first home sale can be daunting, but with the right information and guidance, you can successfully manage the transaction and look forward to your next steps in your real estate journey. Being informed about these key aspects will not only help you feel more confident but also position you for a successful and smooth sale. Remember, the best resource at your disposal is a knowledgeable real estate professional who can provide insights and expertise tailored to your specific situation.

Home Search Frustration? How to Refocus and Keep Going

The best part of buying a new home is going out and touring homes. This is especially true for first-time home buyers. As time goes on, however, it can be frustrating when each home falls short of expectations. While it’s important to be realistic about what is available and affordable, there can be a temptation to settle when the right homes don't pop up quickly.

When this happens, it’s important to take a step back and reevaluate the criteria. Often buyers head out without a solid list of “must-have” and “like-to-have” features in mind. If finding the right home is becoming difficult, then this is the time to create or review these items. Consider lifestyle as well as willingness to renovate or remodel. Is it important the home is turn-key on day one, or is there a willingness and ability to make changes after the sale?

Focus on the “must-have” list first. There could be a beautiful chef’s kitchen on the “like-to-have” but if 4 bedrooms are critical for the size of the family, the larger kitchen will not compensate for long. That said, if the hope is to find a home with a pool, is there room to add the pool later?

Finding the right home is often a matter of timing. Patience is the best advice. With the start of the new year, new listings are hitting the market every day. The perfect home may not have been listed yet

7 Ways to Save Money on Home Insurance

Home insurance is critical for homeowners. It protects you from unexpected damage due to fire, wind, flood, and more. Unfortunately, the cost of these policies can be very expensive and over the past few years, some premiums have doubled or even tripled as more natural disasters hit the country. Fortunately, there are a few ideas on how to save money on premiums. Here are 7 possible ideas to save money on your home insurance.

1. Bundle Policies – The easiest way to save money is to use the same company for both auto and home. Most companies offer significant discounts for doing all your business with them.

2. Increase Deductibles – Raising your deductible on all policies, even just a little can save money overall. Consider how much you are able to spend before relying on insurance and see how much you can save.

3. Home Security Systems – Most companies offer a nice discount for home security, plus you have the added benefit of greater safety for you and your family.

4. Good Credit – A higher credit score will likely give you a lower premium. Be sure to ask your insurance company to review your score at each renewal period.

5. Review Coverage – Do you have health insurance at work? Then maybe you don’t need medical coverage through your auto policy? Review your policies and make sure you need everything you’re paying for and always seek the advice of your insurance agent.

6. Claim Free – Insurance is there to use, but you may not want to use it for everything. If you have a $1000 deductible, for instance, it does not make sense to submit a claim for damage that totals $1150. Staying claim-free saves money.

7. Finally, shop around. At each renewal period, take the time to compare leading companies and make changes when necessary. Switching companies is very easy and can save you hundreds of dollars. Consult with your insurance agent to find out if any of these ideas might work for you.

Real vs Personal Property in a Real Estate Transaction

When buying or selling a home, often misunderstandings occur over the distinction between “real” and “personal” property. Real estate agents across the nation frequently end up playing referee in situations fueled by misconceptions, which can create tension and sometimes even kill a sale. Understanding the difference is important to anyone engaged in a real estate transaction.

In simple terms, “real” property is the land and anything permanently attached to it, while “personal” property are items that are moveable. In this sense, real property obviously includes the home itself, along with other structures, such as a detached garage or barn, etc. It typically includes fixtures inside the home, such as lighting, faucets, built-in appliances, garage storage or racks, even curtain rods.

“Personal” property, being moveable, would usually include everything else. A refrigerator that is not considered a built-in could be included on this list. So would a free-standing BBQ Island, or a mounted TV. As you can see, some of these items may be controversial if there is not a clear understanding about what the seller intends to take with them when they move in the contract.

The best practice is for a seller to provide a list of any item they intend to keep that could be confusing and ensure it’s spelled out on the contract. This way, both parties have a clear understanding of the sale and the buyer does not plan a family BBQ on move day and find it gone.

Should You Repair or Replace a Roof?

One of the most important elements of any home is the roof. The roof is the first line of defense in protecting the home from weather-related issues, such as wind, fire, and rain. Over time, the constant abuse can take its toll, and your roof will require some attention. But how do you know if you should replace it or just repair it? There are a few things to consider before making the decision.

The Age of the Roof – Most roofs come with a 10-year warranty and are expected to last for anywhere from 20-25 years. Some tile roofs should last even longer with some simple maintenance for the under sheathing

Extent of the Damage – Sometimes the extent of the damage is great, such as when there has been a large storm. Other times the original roof was not installed properly or has structural issues, causing widespread damage

Cost – You may find when comparing the cost of the repairs to the expense of a new root, that the new roof is simply a better value. Always get estimates for both.

Insurance - Insurance companies view an older or deteriorated roof as a liability. In their eyes, it's more likely to leak, collapse, or suffer other types of damage, which means they're more likely to have to pay out a claim. Because of this, some insurers require roofs to be under a certain age or in good condition as a condition for providing coverage.

Personal Considerations – Are you planning to stay in the home for a long time? In this case, replacement now will be more economical than replacing later when costs have increased.

Finally, consult a few professionals. Discuss the issues for both replacement and repair with a few trusted roofing specialists and your insurance agent before making the final decision.

Why Didn’t My House Sell?

There is nothing more frustrating for a seller than to watch houses around them sell like hot cakes while theirs lingers on the market. Finally, when the listing expires, they find themselves asking why? Why didn’t my house sell? In a robust housing market like we’ve had the past few years, the good news is there are some common reasons why a home doesn’t sell. If you find yourself in this position, ask yourself these questions, and then correct them and relist them.

· Did You Stage Your Home? We’re not talking about expensive services that bring in all new furniture here, but you do need to make your home attractive. The basic “curb appeal” rule still applies, even in a “sellers’ market.”

· Did You Limit Access? When homes are moving quickly, it’s tempting to assume every home will get multiple offers. But buyers still want to view the home before making that offer, if your home is difficult to see, you will lose potential buyers.

· Did You Price Your Home Correctly? Setting the right price is always important. Even when prices are rising, an unrealistically high listing price will cause buyers and their agents to ignore the home.

· Did You Hire The Right Agent? Sometimes, it really is the agent’s fault. The right agent will properly market the home, communicate frequently, offer advice about price/offers, and make themselves available. They should be giving feedback throughout the process about adjustments to ensure that the home is seen and is appealing to potential buyers.

If you answered “no” to these questions, then relisting may be a great option. Make the changes you need to, and then relist the property. This time, you may not need to ask yourself, “why didn’t my home sell”?

10 Questions You Need to Ask Your Contractor Before You Hire Them

Hiring the right contractor can mean the difference between a successful remodeling project and a nightmare. The contractor is responsible for hiring the best tradesmen, budgeting, ordering raw materials, timing, and much more.

Before you meet with a contractor, it’s important to prepare. Not only should you be clear about the scope and goals for the project, but you also need to have questions about their business and these 10 questions can help you ensure you are hiring the best person for your needs.

1. Are you licensed and bonded? Can you provide information about your insurance coverages and exclusions?

2. What kind of project management system do you use? What is your communication cadence with your team and with me?

3. What is your policy regarding the cleanliness of the job site? How do you ensure employee safety on the job site?

4. Do you have a portfolio of similar projects and recent work with photos and/or videos?

5. Will you give me some references of recent past clients?

6. Can you provide me with a sample contract in advance for review?

7. How are selections and allowances handled?

8. How are payments handled? Will you provide a payment schedule?

9. What is the estimated time frame for planning, start date, and completion?

10.What penalties will you pay for delays caused by your team? How is fault defined for delays? Is this in the contract?

Remember, a home remodel can cause a great deal of upheaval, weeks or months of workers, delays, and adjustments. While you can’t plan for all contingencies, you can hire the best possible contractor. This puts you in the best position for a successful project.

The Real Reason Your Agent Wants You Gone During Showings

There are several good reasons for homeowners to make themselves scarce when potential buyers come to view their house. While one motivation is avoiding problematic comments, there are other benefits to giving prospective buyers space during showings.

For one, an empty home allows potential buyers to envision themselves living there. With the sellers out of the way, buyers can move freely through the rooms and picture where their own furniture and belongings could go. An unoccupied house becomes a blank canvas for buyers to mentally customize to their own lifestyle and needs.

Leaving also allows buyers privacy to discuss their impressions and point out pros and cons to each other candidly. They may feel more comfortable critiquing elements of the home or debating if it meets their wish list when the sellers are not present. This facilitates an open dialogue between potential buyers.

Finally, an empty house also provides a neutral atmosphere for buyers to evaluate it objectively, without sellers unconsciously influencing their perspectives. Buyers can take their time forming their own opinions when touring alone, without chatting with sellers or feeling pressured in any way.

Vacant showings also enable buyers to visualize a future there, speak freely, and decide independently. These benefits make it advisable for sellers to make themselves scarce during viewings.

Don’t Let Small Problems Become Big Insurance Issues

Home maintenance is important for homeowners. Small issues like a loose shingle or minor leak may seem minor, but they can turn into bigger problems over time if left unaddressed. Poor home maintenance can potentially lead to insurance claims being denied if the damage arises from deferred maintenance. Insurance policies generally cover unexpected damage, not issues that developed from lack of home upkeep.

Some insurance companies are increasing home inspections during the renewal process to check for maintenance issues. Homeowners may receive a list of items needing repair, or in more serious cases, a non-renewal notice requiring them to find a new insurer. This demonstrates how critical home maintenance is for continuing coverage.

In summary, staying on top of home repairs and maintenance is key for homeowners. Minor issues should be addressed before they worsen and potentially affect insurance coverage. Homeowners who are not diligent with upkeep may need to enlist the help of professionals to keep their homes in good shape. Maintaining your home protects your investment and helps avoid problems with insurance down the road

Avoid Short Term Rental Home Mistakes Before You Bu

The short-term rental (STR) market has exploded since the Covid-19 pandemic. As America’s workforce raced home, people realized that they could work from anywhere. This, coupled with the desire to isolate oneself and family from other people during vacations, created a strong demand for STR properties. As the trend boomed, large and small investors jumped into the stream and bought properties to market as short-term rentals.

Owning an STR can be a great investment. In addition to the incremental income, the home appreciates in value, and the owner may even find time to use the property themselves. But owning this kind of rental isn’t as easy as putting a lockbox on the door and washing the sheets. Before investing in a STR, consider these 5 things.

1. Local Zoning and HOA Rules – This may seem obvious, yet every year people buy homes with the intention of using it as a STR only to find that the local authorities prohibit that kind of rental. Often, one must rent the home for 30+ days as part of an HOA or local zoning law.

2. Property Management – The wrong property management company can cost the homeowner time and money. Bad reviews, property damage, and mismanaged funds are just a few of the problems caused by the wrong manager.

3. Property Condition – While it’s important to buy a home the owner can handle. Simple cosmetic changes are easy to fix for a home in the right location.

4. Personal Taste – One of the biggest mistakes investors make is to buy what they like, instead of the right property for a short-term rental. They should consider why someone would come to a STR in that area and find a property that appeals to that.

5. Part-Time Manager – Regardless of how handy the owner is, owning a vacation rental is a full-time job and should be managed by a professional management company.

Renters of short-term rentals are choosing the privacy and intimacy that an STR offers, but they expect to have hotel-quality service. This is a high bar and before buying a home to use as a STR, investors need to carefully consider all the aspects of this kind of ownership

Prioritizing Lifestyle Amid Rising Interest Rates

The real estate market has changed over the past year. One of the biggest issues facing anyone considering a home purchase or sale is rising interest rates. After enjoying years of mortgage rates in the 2-3% range, many borrowers are shocked to see a conventional 30-year fixed loan offering rates as high as 7 per cent. While historically reasonable, this increase is having an impact on the real estate market. If you are considering a move, it’s important to remember that your lifestyle still needs to take precedence over these temporary changes.

First, your mortgage interest rate is just one aspect of your overall financial situation. Taking a more holistic view of the potential move, including lifestyle and personal needs, may provide a more favorable picture. For example, if the move is a downsize, what is the savings in loan amount (less expensive home), maintenance and repair costs, utility costs, property taxes, etc.? One must also consider the potential tax deduction difference that mortgage interest might provide.

Another important consideration is that property values may have dropped in some areas as rates have increased. While one may not completely balance the other, it can make the increase more palatable. Additionally, rates fluctuate and if interest rates decrease, you might have the option to refinance down the road. Meanwhile, home values have historically been a great vehicle for wealth building as values rise over time.

Finally, and most importantly, if your lifestyle has changed and you want to move, then that should be your priority. Quality of life is the single most important aspect of health. While rising interest rates may change your decision, it should not keep you from moving if that’s what’s best.

Small Design Changes that Have Big Impact

With the change of seasons, attention turns from the backyard to our indoor spaces. With the cooler months ahead and more time spent indoors, who wouldn’t love a quick living space refresh? Fortunately, you don’t need to completely revamp everything to have a new look. Small changes can have a big impact as well.

Paint is one of the easiest ways to change the look of any space. Paint fads quickly and designers recommend repainting every 5-7 years. This is an opportunity to use new colors. Dark and warm to create a cozy, relaxing space or go bright and bold to add energy or inspiration. If a larger project is too daunting, then adding a single accent wall provides drama and interest.

Look at updating lighting and other fixtures. It’s surprising how quickly a lamp can change the tone of a room. Don’t be afraid of mixing traditional furniture styles with modern fixtures. Use lighting in a new way. Highlight a special picture or piece of art. Light a dark corner or use variable light bulbs to provide flexibility in intensity.

Another great tip is to hit the local farmer’s markets and fairs. Style does not need to come from the chain stores or design magazines. Add some eclectic pillows, candles, baskets, or anything else that interests you. Personal style is just that – personal. With fall on the horizon, spruce up your living spaces with a few small changes.

7 Tips to Creating an Amazing Gallery Wall

A gallery wall is a quick and easy way to add visual impact to any room. Adding art and photography to a wall showcases your personality, interests, and style. Merging art with interesting articles, a gallery wall instantly adds depth to a living room or other space. Set against a strong color, the impact is even greater, and the time commitment is minimal, making it a great weekend or evening project.

7 Tips to Creating a Visual Delight

1. Plan and Visualize – One great tip is to use paper cut outs to plan the wall before committing and make sure you have the right tools, such as nails, hangers, Command® strips, leveler, screws, hammer, etc.

2. Choose a Theme or Concept – Create a cohesive, intentional look by working with a concept. This can be the style of art, color palette, or subject matter.

3. Mix and Match – Combine various sizes and mediums for visual interest. Mix paintings with three-dimensional objects like mirrors, plates, or masks. Pay attention to balance so the result is eclectic and not cluttered.

4. Watch the Framing – Frames and matting adds texture and boundary. Affordable options are available in standard sizes and colors in home improvement stores.

5. Play with Layout – Don’t worry about lining up every frame in a grid. Space frames and objects so that they stand out and are displayed to their best advantage.

6. Find a Focal Point – Starting in the middle of the wall, highlight a special piece and work out from there.

7. Add Lighting – Proper lighting is important. Use to highlight a special picture or use track lighting for a subtle glow.

A gallery wall is a great expression of your personality and can be changed quickly. You probably already have the art necessary to make this change today. Don’t overthink the plan and create your visual delight this weekend.

5 Important Things to Consider Before Buying a Fixer-Upper Home

Purchasing a fixer-upper property can be an exciting and rewarding experience. HGTV is filled with programs of amateurs knocking down walls and tiling bathroom floors. The fact is that this is much harder than it looks and before diving headfirst into this kind of project, it’s critical to consider whether you are prepared for the venture. 5 Important Things to Consider Before Buying a Fixer-Upper Home

1. Financial Planning – The first step in buying a fixer-upper home is to establish a realistic budget. Include the purchase price, repairs costs, and any expected expenses for renovation or restoration. Once you have created a “known” list, then add extra for unexpected issues that will arise.

2. Time and Effort – Renovating a fixer-upper takes time and effort, even if you hire a general contractor to oversee the project. Consider the overall scope of the project and evaluate your skills and level of time commitment.

3. Structural Condition – Before making an offer, thoroughly inspect the property’s structure and foundation. Recognize the impact of any issues uncovered and make sure to budget for the proper corrections.

4. Real Estate Market and Location – Even a beautiful home in a terrible area is a bad investment. Consider such factors as property values, market trends and the potential for future appreciation. Work with a financial planner to make sure the investment fits your long-term goals.

5. Legal Considerations – Before writing the offer, familiarize yourself with local building codes, permit requirements, and zoning regulations. Ensure the changes you anticipate align with local requirements.

Purchasing a fixer-upper home can be a wonderful investment and worthwhile project. By evaluating your budget, time commitment, property condition, and potential appreciation, you can be sure to choose the right situation for your goals and experience.

5 Important Things to Consider Before Buying a Fixer-Upper Home

Purchasing a fixer-upper property can be an exciting and rewarding experience. HGTV is filled with programs of amateurs knocking down walls and tiling bathroom floors. The fact is that this is much harder than it looks and before diving headfirst into this kind of project, it’s critical to consider whether you are prepared for the venture.

5 Important Things to Consider Before Buying a Fixer-Upper Home

1. Financial Planning – The first step in buying a fixer-upper home is to establish a realistic budget. Include the purchase price, repairs costs, and any expected expenses for renovation or restoration. Once you have created a “known” list, then add extra for unexpected issues that will arise.

2. Time and Effort – Renovating a fixer-upper takes time and effort, even if you hire a general contractor to oversee the project. Consider the overall scope of the project and evaluate your skills and level of time commitment.

3. Structural Condition – Before making an offer, thoroughly inspect the property’s structure and foundation. Recognize the impact of any issues uncovered and make sure to budget for the proper corrections.

4. Real Estate Market and Location – Even a beautiful home in a terrible area is a bad investment. Consider such factors as property values, market trends and the potential for future appreciation. Work with a financial planner to make sure the investment fits your long-term goals.

5. Legal Considerations – Before writing the offer, familiarize yourself with local building codes, permit requirements, and zoning regulations. Ensure the changes you anticipate align with local requirements.

Purchasing a fixer-upper home can be a wonderful investment and worthwhile project. By evaluating your budget, time commitment, property condition, and potential appreciation, you can be sure to choose the right situation for your goals and experience

10 Most Common Home Buyer Questions

Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.

1. How do I get started? – The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.

2. How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.

3. What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.

4. How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.

5. What credit score do I need to qualify? – A 620 FICO score or higher is required for most home loan programs. Talk to a lender for other options for lower scores.

6. How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 5% down payment.

7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.

8. What if I change my mind? – Your agent will work with you to build in contingencies for conditions, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.

9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.

10. What’s the best advice for home buyers? – Trust the experts and ask lots of questions.

Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help you make the best choice for your needs. COnnect with Stacy Borroto, Broker at The OC Nest specializing in Orange County Real Estate since 2007.

FICO Shock? Your Lender Can Help with a Rapid Rescore

If you’re ready to buy a new home, you know that a good FICO score is critical to the process. Your FICO affects not just your ability to buy a new home, but the interest rate and fees you’ll pay for the new loan. Often, buyers are shocked to realize their credit score is not as high as they thought. Even borrowers who always pay their bills on time can be surprised by a lower FICO score when they apply for a loan. Fortunately, your lender can help with a rapid rescore process.

A rapid rescore is initiated by your lender to boost your FICO in days. Most lenders offer this service and will start by reviewing your credit report with you. Lenders use what’s known as the “middle score,” in determining risk. There are three credit bureaus – Transunion, Equifax, and Experian – and they each calculate your score a little differently. The middle score is used for most home loans as your FICO.

Your lender has a program which can estimate your rescore based on removing false reporting or lowering the balance on a credit card. Even paying off one card can raise your score by 20+ points, enough to make a huge difference in your mortgage interest rate. Once the steps are determined and taken, they then request the credit bureaus to verify the report. This takes a few days. Then the new score will be available to the lender to use for your loan.

If you are considering a new home loan, it’s important to know your credit score ahead of time, when you can still correct mistakes. But, if you are already in the process, your lender may be able to use the rapid rescore process to quickly increase your score and offer you a better loan.

Design Trends for 2023 – More is Everything

A common regret around taking down the holiday decorations is how bare the home looks suddenly. Fortunately for anyone ready to upgrade their design in 2023, new trends are offering more comfort and coziness than we’ve seen lately.

For the past few years, home designers have created a blend of minimalism and simplicity in their home styles. This style involves removing anything from the space that is not necessary for function or lifestyle. The common phrase, “does it spark joy,” is a new mantra for homeowners hoping to eliminate clutter from their homes.

As the new year approaches, this mindset has been thrown out the window. Maximalism is the new theme. Color and patterns, textures, and excess have replaced the sleek lines and neutral colors of minimalist design. Home décor trends now invite the consumer to play with bold colors and contrasting patterns and shapes. Almost anything goes.

It’s important to note that this is not an invitation for clutter. A perusal of home magazines and design books emphasizing the latest “boho” style, clearly shows a method to the design. The furnishings are functional and comfortable. Color palettes are curated for harmony and mood. While this is a great time to experiment, to avoid creating a hodge-podge of design, thought is more important than ever.

2023 is almost here and with it a fresh approach to décor. Forget the minimalist style of the past and embrace maximalism; with all the print, color, and excitement it brings to the home.

Is My House Up to Code?

Building codes change over time and for people who have owned their homes for a long time, they may not know if their home is out of code and if so, does it matter.

Building codes and violations from jurisdiction to jurisdiction and focus on issues that can affect the safety of the dwelling and its occupants. A home that’s “up to code” may answer the questions:

· Does the home have fire escapes and exits?

· Are plumbing lines intact and functional?

· Are construction materials in good condition and free from asbestos and other hazardous chemicals? ·

Is the home well-lit and free from tripping hazards?

· Is the HVAC system working efficiently?

Avoid Code Violations

There are things to look for in both an existing house and a potential home.

· Check for any permits on the home and always ensure any work done on the home includes permits.

· Test for hazardous materials such as asbestos or lead. These materials are common in older homes. If found, these need to be removed by professionals to avoid health issues from contamination.

· Poor bathroom ventilation is a big code violation. The humidity can lead to rot and mold which is expensive to remove and dangerous to the occupants’ health.

· Shoddy electrical work is also common in older homes. Lack of grounded wires, spliced wires, and DIY repairs duct-taped together can be very dangerous.

Understanding code violations can help the homeowner to avoid issues. All this information is readily available through local jurisdictions and home inspectors can provide more explanations to help mitigate any problems.

10 Most Common Home Buyer Questions

Buying a new home is exciting and confusing. There are a lot of steps to buying a home, and people have questions. These are the most common questions home buyers have, and the answers.

1. How do I get started? – The first step is to speak with a lender and get a pre-approval. This will tell you, and potential sellers, how much you can afford.

2. How long does it take to close on a home? – Typically, it takes about 30-45 days once contracts are signed to complete the lending, appraisal, and inspection processes.

3. What does my agent do? – A buyer’s agent will negotiate terms and manage the closing process from start to finish.

4. How much do I pay for a buyer’s agent? – Nothing. The seller’s agent gives the buyer’s agent a portion of their commission from the seller.

5. What credit score do I need to qualify? – A 620 FICO score or higher is required for most home loan programs. Talk to a lender for other options for lower scores.

6. How much money do I need for a down payment? – It varies. FHA loans start as low as 3% and most lenders offer standard programs for a 5% down payment.

7. What other fees will I need to pay? – Closing costs and loan origination fees will add another 2-4% to the costs.

8. What if I change my mind? – Your agent will work with you to build in contingencies for conditions, loan terms/approval, and other protections to allow you time to evaluate the home during escrow.

9. When do I get the keys? – Unless you’ve negotiated extra time for the sellers to move, you’ll get the keys at the closing.

10. What’s the best advice for home buyers? – Trust the experts and ask lots of questions. Buying a new home is exciting. Reduce any anxiety by finding a good buyer’s agent who can help you make the best choice for your needs.