Their major responsibility is to protect your interest as a buyer and as their client. Their main roles are the following:
Looking for a new home is exciting and overwhelming. There are so many things and details to pay attention to. Focus on these five most important areas: electrical, foundation, plumbing, the attic, and landscaping. According to Don Walker, inspector and owner of Ace Home Inspections, these are the five areas in homes that he frequently reports problems with.
Most people assume that if they buy a newer house, they won’t have electrical problems anytime soon. “I inspected a brand new house — four years old but the electrical was all done incorrectly,” says Walker. Through a complete home inspection, potential problems are detected early on.
Walker said he inspected a four-year-old home that was already showing signs of major damage that is expected to cost you a lot of money in repairs. “It was a model home. What [the homeowners] did was plant trees for shade to make it look really nice, but they planted the wrong trees and they’re going to crack the foundation and it’s going to cut the property value down by $50,000,” says Walker.
Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. “As you walk through the house, 21 feet in and 30 feet deep, there’s just too much root invasion and it’s going to ruin their tile,” explains Walker.
He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, “which means the foundation is moving.”
But not all cracks is an indication of a foundation problem. Walker said, “Most people don’t understand that there are natural cracks in a house. That’s why when we do an inspection report we have to look at it and say ‘Okay, this is a typical crack and this one is an untypical crack.”
According to Walker, is another area that poses a big concern yet often goes undetected. “Mold forms underneath sinks when people have a leak and they fix the pipe but they don’t take care of the mold,” says Walker. He said caulking the sink can help prevent mold. “That’s my number one thing I always find — bad sinks.”
He says, “When you look at the sink, look behind it and most of the time you will discover a little crack. What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it’s in a perfect position to create mold.” When it’s dark and damp, it becomes a perfect breeding ground for molds.
Walker says, “You can tell everything about the house by the attic.” When you fix other parts of the house, you can already mask the problem. Take for example a wall damaged by leaks. You can have it fixed and repaint it to make it look new. But Walker says the attic is sort of the eyes to the soul of the home. “In the attic you can tell where all the damage has been.”
“If you’re in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced,” says Walker. He adds, “You can tell if the roof is good because you can look right at the wood.”
“There should not be moisture or plants next to your house,” says Walker. He says there should be a 12 inch barrier between the landscape and the house. If not, the foundation might crack. If the landscape is too close to the home, when the plants are watered, the foundation and soil expand. And when the they’re not, the foundation dries up and shrinks which causes it to crack.
Acquiring the money to pay for a house is not the only preparation you need to buy a house. Learn what you can about the house and how to take care of them. It will save you a alot of money in the near future.
When you sell your home, you can’t expect to take home all of the sale price. There are many fees to pay – commissions, taxes and miscellaneous and they can take out up to 7% of the sale price.
How do you determine your net profit? When you receive an offer, your real estate agent will give you a Seller’s Estimated Net Proceeds worksheet, which will give you an idea of all the costs that will be deducted when you close.
Here are some of the costs that could are usually deducted from the sale price. They may vary depending on yoru state.
There may be more costs not mentioned here. It’s best to ask your real estate agent so you can anticipate and prepare for it.
Buyers are now in a better position when it comes to buying a house. Gone are the days when real estate is a hot market and you need to make an upfront offer as soon as a property is put up for sale.
Competition has mellowed down in most areas. This gives buyers an opportunity to be able to deliberate on what is available and take advantage of the best deals. How do you determine the climate of your market? According to economists, real estate is directly related to employment. So if there is a rise in employment, you can say that the value of your property is also looking up. In the Midwest real estate is not doing as good as auto manufacturing. Prices are low and is not expected to rise anytime soon. It might take a while until the market rebounds.
Things buyers can keep in mind to get the best deal in the market:
In a changing market, the biggest problem is human nature. Market value can drop or stagnate. But sellers often refuse to believe this. To them, the price of their home is based on how dear it is to their heart regardless of its actual market value. On the other hand, buyers take advantage of a market slump and make unrealistically low offers. Before you make an offer, research and think about important things like the features of the home that you want to be in the home, the size of the home and the going rate of properties in the area.
Find out how much the last one in the area sold. According to Beverly Durham of ReMax Gold Coast Realty in Camarillo, Calif., “See what’s going on out there.’’ Don’t insult the seller by making a very low offer. You’ll drive them away. Your goal is to make them consider your offer.
Find out as much as you can about this. Is it because of retirement, job-related, divorce, they need to relocate, or they simply want to sell to the highest bidder. This information is crucial. If a buyer knows this, they can either negotiate better or decide to look elsewhere.
They usually state what the seller owes. Or your agent can provide this information for you.With this information, you could negotiate accordingly.
According to Durham, “After 45 to 60 days the seller is usually absolutely sick of keeping their house spotless and sick of people walking through.’’ After this period the seller will be anxiouse to sell their house.
It will cost you time, effort and money to fix damages.
Even in a tight market, it’s okay to ask the seller to add the closing costs to the price of the house. It’s better to pay 20% downpayment and roll the closing costs into the loan than pay 15% downpayment and pay upfront for the closing costs.
when you ask for extras.You can also ask for new kitchen appliances or washer and dryer. Durham said you can even ask the seller to pay for the first year of homeowner association dues. But don’t ask them for things that involve workmanship. Durham said, “Don’t ask them to paint.’’“They won’t do it the way you want. They’ll do a lousy job.’’
When you consider buying a home, think about staying there for atleast five years. Remember your goal as a buyer is to get the home that you want; not to outsmart the seller.
Your success in the realty market lies in how well you negotiate. But negotiation is a complicated matter. All the parties involved want things to go their way. Given these conditions, how can you make things work for your favor? How does one become a succesful negotiator?
Based on experience, these five aspects determine a successful negotiation:
Study the market. There will be times when it’s more favorable for buyers and there will be other times when it will lean towards sellers. The key is to strike when the time is favorable for your side. For example, as a buyer you are in a position to offer the seller a quick deal and you know that the seller is in a hurry to sell the property. Take it as an opportunity to make things work in your favor.
If word has gotten out that the seller has gone bankrupt, you are in a position to make reasonable demands. On the other hand, if you know that the house is a hot item, expect many competition. Therefore, you are in no position to dictate the terms or ask for “extras”. The owner has the liberty to choose the buyer they want; usually to the highest bidder with the best terms.
What are the other costs (or savings) involved? Most people think that the price of the house is all there is to it. But in fact, there are other things to consider. For instance, Both house A and house B cost $275,000. However, house A is an older house that needs costly repairs. Plus the seller of house A agreed to pay a portion of the closing costs. On the other hand, house B also costs the same. But cost of necessary repairs will not be covered by the seller.
Think about all the costs and savings involved and determine where you can get better value for your money.
All transactions involve money. Money affects negotiations in so many ways.
Is the buyer pre-qualified or pre-approved by a lender? Finding your ideal house does not guarantee that financing will also be available. Your loan application can be denied because of several reasons; among them: appraisal problems, title issues, survey findings.
One of the advantages of being pre-approved is that buyers already know how much they could afford. Sellers like buyers who are pre-qualified. They pose less risk to the seller. They won’t have to worry about waiting for the buyer to find a loan to seal the deal. Being pre-qualified means that you have the financial capacity to pay for the loan.
Lower interest rates mean a broad market – a lot of potential buyers.
Nowadays, downpayments are made easier. Now you can find loans with as low as 5% downpayment or even less. 100 percent financing or no downpayment plans is even an available option.
Brokers are now representing not only sellers but buyers as well. If you have competition, being represented by a reputable broker gives you an edge.
The outside of your home is the first thing that buyers will notice. It’s what gets them interested in your home. If you’re thinking about improving your home, you’ll be getting your money’s worth if you do a good job on the exterior.
According to Remodeling Magazine’s 2009-10 Remodeling Cost vs. Value Report, six out of the top ten remodelling projects were all related to outside improvements. The report surveys realtors across America. Based on the report, even a simple move like replacing a steel door for about $1200 can recoup more than 120% of your investment when you sell the house. An attic bedroom which costs $49,350 yielded $40,990. It brought back about 83% of what was invested. Adding a deck returned about 80% of the cost.
One of the primary reasons why people invest in outdoor improvements is that it doesn’t cost much and the investment will surely pay off. Usually, exterior improvements costs less than $15,000 but it can do a lot for your home’s curb appeal. Curb appeal is important because it holds the key to selling your home. Midrange outdoor projects in the report’s top 10 are a deck addition, vinyl siding replacement, wood and vinyl window replacements and steel and fiberglass door replacements.
Another reason for exterior improvements is energy efficiency. Plus, homeowners can get tax credits for weatherizing their houses under the American Recovery and Reinvestment Act. Improvements like upgrading windows, roofs and siding can be counted towards it. In the process of doing this, homeowners are also making their houses marketable.
It’s also a good investment to improve your kitchen and bathroom, but don’t spend too much. A small kitchen remodelling in a midrange house that costs $21,410 can yield about $16,775 or about 78 percent of its cost when you sell. If you decide to do a major renovation that costs $57,215 you can expect to recover $41,260 or 72 percent.
In an upscale home, a major kitchen remodelling at $111,800 can give you about 63 percent of your investment while a bathroom costing $52,300 would give you a little more than 61 percent.
Improvements in a home office or sun room can only yield about 50 percent of construction costs.
Are you looking to finance a new home? Or are you finding the best mortgage rate to refinance your home?
The first step is to shop around. But what does that really mean? Research and prepare. Take time to think and analyze different mortgage plans. You could save a lot by doing this. Take this for example: on a 30-year mortgage for a $300,000 house, a homeowner would pay approximately $1,520 each month at a 4.5 percent rate. But if the homeowner chooses a slightly higher rate of 5.10 percent, it would increase the monthly mortgage payments to $1,633, which would make a difference of $40,680 in 30 years. (Figures were calculated on a 20 percent down payment.)
The best thing you should do is retrieve your credit scores. If lenders retreive them multiple times, it can lower your score.
If you’re looking for a lender, look into their track record. Ask family and friends about them and when you’ve narrowed down your options to two or three lenders, compare their rates.
Before you compare rates, establish a budget. Think about how much maximum you can afford to pay every month.
The lender should be able to give you a comparison of loan terms with conventional methods of financingso you can make an informed decision. Don’t just jump into a plan with low rates. Make sure you understand all the costs with it. Rate lock is a contract with the lender that ensures the interest rate will not change. But you will need to get the loan within a certain period of time; usually 60 days. If the rate increases, you will not be affected. Using a mortgage calculator , compute the monthly payment at different interest rates. If you find a rate that is lower than your limit, lock in to that rate.
When you see rates that are lower than your limit, act fast. Don’t miss out on good deals and offers.Some lenders offer a “float down.” This means that even if you’re already locked in on a low rate, you can get even lower rates. Specific contracts may vary depending on lenders.
When you look for a lender, don’t just consider one. Look into other lenders as well. Different lenders offer different products. Understand the products. Some products for example have low rates for new homebuyers but not for those who want to refinance.
It’s a good idea to try different institutions from a direct lender, credit union or a community bank. Once you’ve made up your mind on a lender, ask what other fees are added to the loan. You might choose a plan with a low rate but have a lot of additonal charges. Before closing the deal, make sure you know the total amount of the loan.
Once this is settled, decide when you want to close the deal. Discuss your intended date with the lender. Ask about the charges for loan lock periods. Lock in for the best rate and the right amount of time.
When you think about buying a home, one of the first questions that come to mind is whether you buy an old house or a new one. A new house may be attractive because everything is new. Nothing has been used yet. The walls are clean, the closets have never been used before, they come with energy-efficient appliances and you won’t have to spend on repairs because of wear and tear. On the other hand, you may fall in love with traditional look and feel of an old house.
When you’re at a crossroad, these points can help you decide:
Old homes
Buyers in general are more attracted to houses with fireplaces. They give a warm and cozy feel. They usually become the centerpiece of a room. Fireplaces add to the aesthetic appeal of a house.
They also keep houses warm during cold times. Even though there are already other possible sources for heat, it can still come in handy when there is no power during storms.
There are other states like California where a house a house needs to have a fireplace in order to be sold. But Gopal Ahluwalia, director of research for the National Association of Home Builders, says, “you probably don’t need one more than three days a year.” He says, “lifestyle is guided by the conditions of the economy. When you have money left over, you want to spend it on things you don’t need.”
Now that houses have become expensive and people are looking for ways to be cost-effective, are houses with fireplaces still popular? Is it worth the investment? According to experts, a fireplace can be paid for over time in a 30-year mortgage. And there are lower interest rates available.
Kira McCarron, marketing director of Toll Bros, which builds luxury houses in almost 20 states says, “The concept of fireplaces has changed. The shift from masonry to prefab designer boxes has put fireplaces in bathrooms, dining rooms and bedrooms, as well as living rooms and family rooms.” You can even find fireplaces on walls of entertainment rooms, below big-screen televisions, “so that you have your choice of what you want to see,” she says.
This is all made possible by technology. Now we have gas fireplaces because it is already possible to vent gas outside through a wall without a traditional chimney. Flexible pipes allow gas to go to the units. Usually houses have both – a wood fireplace in the living room and gas on the other rooms.
Burning wood can cause health and environmental problems. According to the U.S. Department of Energy, wood-burning appliances and fireplaces can release large quantities of air pollutants like nitrogen oxides, carbon monoxide, organic gases, and particulate matter. They can cause serious health problems particularly to children, pregnant women and those with respiratory problems. These chemicals have properties similar to cigarette smoking that are associated with cancer. Many areas consider smoke from wood burning as one of the major cause of air pollution.
Because of the availability of vent-free fireplaces, homes can now enjoy having several units instead of just one. However, vent-free appliances also come with safety concerns. In fact some states ban the use of vent-free fireplaces. And even in states where it can be used, some county government prohibit its use.
According to the U.S. Department of Health and Human Services the key to reducing health risks linked to vented and unvented heating appliances is proper maintenance.
Contractor John Burke puts a priority on safety when he installed a vent-free fireplace in his house. “There had to be a constant supply of fresh air in that house to guarantee safe operation,” Burke says. “Fortunately, the house was old and drafty, and there was never an issue.” The unit he bought came with a carbon monoxide monitor and an oxygen-depletion sensor. Once the level of oxygen in the room reaches a dangerous level, the fire turns off immediately.”Never leave a gas fireplace running when you aren’t in the room,” Burke says. “And make certain that you shut it off when you go to sleep for the night.”
Usually a gas fireplace costs between $600 to $3,000, excluding installation. Electric fireplaces usually cost between $1,200 to $1,500, but you can expect it to generate enough heat to take the edge off one or two rooms.
When you have an older house, you’ll have a problem with chimney lining, says developer Mark Wade. He rehabs older city homes. Home inspectors suggest that stainless-steel liners be installed in old chimneys. However, it will cost a lot. A stainless steel installed from fourth floor to the basement typically cost $3,000 for about 1 1/2 hours’ work.
To us, negotiation is important and we have the patience to go through the the process of getting a good deal.
Our success rate is strong giving no wonder we enjoy a big share in the percentage of success rating in growing nationwide business.