Archives 2020

By: HouseLogic

From finding an inspector to dealing with surprises — this is your guide to getting a house checked out. The first thing you need to know about home inspection: You’ll feel a range of emotions. There’s the excitement — the inspection could be the longest time you’re in the house, after the showing. Right behind that comes … anxiety. What if the inspector finds something wrong? So wrong you can’t buy the house? Then there’s impatience. Seriously, is this whole home-buying process over yet?

Not yet. But you’re close. So take a deep breath. Because the most important thing to know about home inspection: It’s just too good for you, as a buyer, to skip. Here’s why.

A Home Inspector Is Your Protector

An inspector helps you make sure a house isn’t hiding anything before you commit for the long haul. (Think about it this way: You wouldn’t even get coffee with a stranger without checking out their history.)

A home inspector identifies any reasonably discoverable problems with the house (a leaky roof, faulty plumbing, etc.). Hiring an inspector is you doing your due diligence. To find a good one (more on how to do that soon), it helps to have an understanding of what the typical home inspection entails. 

An inspection is all about lists.  

Before an inspection, the home inspector will review the seller’s property disclosure statement. (Each state has its own requirements for what sellers must disclose on these forms; some have stronger requirements than others.) The statement lists any flaws the seller is aware of that could negatively affect the home’s value. 

The disclosure comes in the form of an outline, covering such things as:

• Mold 
• Pest infestation
• Roof leaks
• Foundation damage
• Other problems, depending on what your state mandates.

During the inspection, an inspector has three tasks — to:

1. Identify problems with the house that he or she can see
2. Suggest fixes
3. Prepare a written report, usually with photos, noting observed defects

This report is critical to you and your agent — it’s what you’ll use to request repairs from the seller. (We’ll get into how you’ll do that in a minute, too.)

The Inspector Won’t Check Everything

Generally, inspectors only examine houses for problems that can be seen with the naked eye. They won’t be tearing down walls or using magical X-ray vision, to find hidden faults.

Inspectors also won’t put themselves in danger. If a roof is too high or steep, for example, they won’t climb up to check for missing or damaged shingles. They’ll use binoculars to examine it instead.

They can’t predict the future, either. While an inspector can give you a rough idea of how many more years that roof will hold up, he or she can’t tell you exactly when it will need to be replaced.

Finally, home inspectors are often generalists. A basic inspection doesn’t routinely include a thorough evaluation of:

• Swimming pools
• Wells
• Septic systems
• Structural engineering work
• The ground beneath a home
• Fireplaces and chimneys

When it comes to wood-burning fireplaces, for instance, most inspectors will open and close dampers to make sure they’re working, check chimneys for obstructions like birds’ nests, and note if they believe there’s reason to pursue a more thorough safety inspection.

If you’re concerned about the safety of a fireplace, you can hire a certified chimney inspector for about $125 to $325 per chimney; find one through the Chimney Safety Institute of America.

It’s Your Job to Check the Inspector

Now you’re ready to connect with someone who’s a pro at doing all of the above. Here’s where — once again — your real estate agent has your back. He or she can recommend reputable home inspectors to you.

In addition to getting recommendations (friends and relatives are handy for those, too), you can rely on online resources such as the American Society of Home Inspectors’ (ASHI) Find a Home Inspector tool, which lets you search by address, metro area, or neighborhood.

You’ll want to interview at least three inspectors before deciding whom to hire. During each chat, ask questions such as:

• Are you licensed or certified? Inspector certifications vary, based on where you live. Not every state requires home inspectors to be licensed, and licenses can indicate different degrees of expertise. ASHI lists each state’s requirements here. 
• How long have you been in the business? Look for someone with at least five years of experience — it indicates more homes inspected.
• How much do you charge? The average home inspection costs about $315. For condos and homes under 1,000 square feet, the average cost is $200. Homes over 2,000 square feet can run $400 or more. (Figures are according to HomeAdvisor.com.)
• What do you check, exactly? Know what you’re getting for your money.
• What don’t you check, specifically? Some home inspectors are more thorough than others.
• How soon after the inspection will I receive my report? Home inspection contingencies require you to complete the inspection within a certain period of time after the offer is accepted — normally five to seven days — so you’re on a set timetable. A good home inspector will provide you with the report within 24 hours after the inspection.
• May I see a sample report? This will help you gauge how detailed the inspector is and how he or she explains problems.

Sometimes you can find online reviews of inspectors on sites like Angie’s List and Yelp, too, if past clients’ feedback is helpful in making your decision.

Show Up for Inspection (and Bring Your Agent)

It’s inspection day, and the honor of your — and your agent’s — presence is not required, but highly recommended. Even though you’ll receive a report summarizing the findings later on, being there gives you a chance to ask questions, and to learn the inner workings of the home.

Block out two to three hours for the inspection. The inspector will survey the property from top to bottom. This includes checking water pressure; leaks in the attic, plumbing, etc.; if door and window frames are straight (if not, it could be a sign of a structural issue); if electrical wiring is up to code; if smoke and carbon monoxide detectors are working; if appliances work properly. Outside, he or she will look at things like siding, fencing, and drainage.

The inspector might also be able to check for termites, asbestos, lead paint, or radon. Because these tests involve more legwork and can require special certification, they come at an additional charge.

Get Ready to Negotiate

Once you receive the inspector’s report, review it with your agent.

Sometimes, sellers are required by the lender to make certain repairs. These can vary depending on location. Most home repairs, however, are negotiable. Be prepared to pick your battles: Minor issues, like a cracked switchplate or loose kitchen faucet, are easy and cheap to fix on your own. You don’t want to start nickel-and-diming the seller. 

If there are major issues with the house, your agent can submit a formal request for repairs that includes a copy of the inspection report. Repair requests should be as specific as possible. For instance: Instead of saying “repair broken windows,” a request should say “replace broken window glass in master bathroom.”

• If the seller agrees to make all of your repair requests: He or she must provide you with invoices from a licensed contractor stating that the repairs were made. Then it’s full steam ahead toward the sale.
• If the seller responds to your repair requests with a counteroffer: He or she will state which repairs (or credits at closing) he or she is willing to make. The ball is in your court to either agree, counter the seller’s counteroffer, or void the transaction.

At the end of the day, remember to check in with yourself to see how you’re feeling about all of this. You need to be realistic about how much repair work you’d be taking on. At this point in the sale, there’s a lot of pressure from all parties to move into the close. But if you don’t feel comfortable, speak up.

The most important things to remember during the home inspection? Trust your inspector, trust your gut, and lean on your agent — they likely have a lot of experience to support your decision-making.

That’s something to feel good about.

The scent of pumpkin spice will soon be filling the air and leaves will soon begin changing from their summer green to the vibrant hues of fall. But before you settle in with a bowl of soup and a nice glass of red wine, take the time to tackle a few fall home maintenance projects.

Why is fall home maintenance important?

The answer is simple: Seasonal maintenance can help keep your home looking and functioning properly, and save you money because you’ll catch problems before they get out of hand.

Plus you’ll get the added bonus of sleeping easier at night knowing you’ve taken all necessary precautions. When you are ready to sell, your home will be too! Now is the time to …

1. Rake it in

Few things are more beautiful than a yard speckled with crimson, gold, and tangerine-colored leaves. But failing to dispose of them can kill your grass and inhibit growth in the spring months. One of the most important fall home maintenance tasks is raking the yard. So, grab your rake and enjoy the crisp temperatures of the season. You can always treat yourself to a pumpkin treat when the raking is done.

2. Clean the gutters

Speaking of leaves, when they clog your gutters, rainwater can’t flow through and will eventually spill over. So what, right? This overflow can damage your home’s siding, roof and foundation.

It’s better to remove the leaves from your gutters than to chance the buildup turning into a costly problem.

3. Check the roof

While we’re on the subject of the roof, fall is a great time to check that all shingles are in place and in good shape before winter snowstorms pop up on your radar. If not, many roofers can repair small issues before they become a major problem.

4. Conduct a walking inspection

Take a walk around the exterior of your home, keeping an eye open for damage along the pathways leading to your doors. Cracks could mean loose cement or gravel, increasing the likelihood that someone could trip or slip and fall.

To ensure the safety of visitors, seal any cracks you see. Be sure to inspect the siding and foundation while you’re at it, and tackle any repairs as soon as possible.

5. Cracks and gaps can cause problems indoors too

When you shut doors and windows, make sure there aren’t any spaces allowing air to escape. If there are, seal them.

You may not think much of these little gaps right now, but you will when you open your heating bill and see how much you’re paying to keep the whole neighborhood warm, or when you find out that a mouse has made your cabinet his home for the winter.

6. Store summer staples

Patio furniture is susceptible to damage from winter weather. Since you probably won’t spend as much time outside — except for roasting marshmallows over the fire pit — move outdoor furniture, trampolines, and other summer staples into storage.

7. Make it a clean sweep

Schedule a time to have your chimney and heating system cleaned and maintained, including swapping old filters for new ones. It’s important that everything is in good working condition to decrease the likelihood of house fires.

8. Pipe down

Shut off the water supply to exterior faucets and insulate your pipes before the weather dips below 32 degrees. This will help prevent pipes from freezing, bursting and flooding your home.

9. Take time to vent

Your dryer vent, that is. Cooler weather means more static electricity, which means lint buildup in your dryer can ignite more easily. Clean your dryer vent to help prevent this problem and keep it working more efficiently.

10. Testing … 1, 2, 3

Test safety devices, such as smoke alarms, and check the expiration date on your fire extinguisher. In case a fire ignites, it’s important to know that you and your family will be alerted and able to get out of the house quickly and safely, or able to extinguish smaller fires before significant damage is done.

Ready to sell? Contact me to set up an appointment.

Buying a home can be overwhelming, whether you are a first-time home buyer or an experienced one. Here are the steps from thinking about owning a home to the closing table for a financed transaction! I am here to help you along the way, simply contact me!

1. Check Your Credit Score

If you are financing, this is the first step any potential home buyer should make. The higher your credit score, the lower the interest rate on your mortgage. There are lots of free or inexpensive resources for checking your credit score and report for accuracy. Credit Karma offers free credit scores, reports, and insights. Many credit card companies offer a free credit score and/or report, so check your credit cards for benefits you may have overlooked.

Credit Scores: The minimum FICO^® Score required to qualify for a conventional mortgage is typically about 620. You can get an FHA mortgage with a FICO^® Score as low as 500, but applicants with scores ranging from 500 to 579 must make a down payment of at least 10% to qualify. Applicants with credit scores of 580 or greater can qualify with a down payment as low as 3.5%. Issuers of VA loans have some discretion in setting minimum credit score requirements, but they may accept applications from borrowers with FICO^® Scores as low as 620.

2. Start Saving for a Down Payment

Depending on the type of loan for which you qualify, you may need from 3.5% to 20% of the purchase price for a down payment. The get the best mortgage rate, plan to put down around 20% of the purchase price. But you can put down less than 20%. The minimum down payment required for a house varies depending on the type of mortgage.

• FHA Loans can require as little as 3.5% down.
• VA loans, for current and veteran military service members and eligible surviving spouses, usually don’t require a down payment.

Keep in mind, down payment requirements can also vary by lender and the borrower’s credit history.

3. Mortgage Preapproval

You will need a preapproval letter to starting to look at homes with a realtor. A preapproval letter shows sellers and real estate agents that you’re a serious buyer and shows the amount of your buying power, as well as the type of loan for which you qualify. Having this letter on the front end helps the process by preventing you from falling in love with homes that are out of your price range or loan requirements. Need a lender? I have a list of mortgage loan officers who some of my clients have worked with that I am happy to share!

4. Start Looking at Homes

The fun part of home buying now begins! I will set up an MLS search for you that matches everything you are looking for in a home: 4 bedrooms, 3 bathrooms, a 2 car garage with a fenced-in yard in a particular school district. We can select almost anything as a part of your search! I will begin sending you email notifications when homes are listed for sale and we will schedule showings as properties you would like to see come up.

5. Make an Offer on a Home (Buyer Cost: $500-$5,000)

Next, we will work together to make an offer once we find a home you want to purchase. We can write up and sign the contract in person or electronically. I will then submit the offer to the seller’s agent. The sellers can accept, counteroffer, or reject your offer. When the contract is agreed upon, the realtor will finalize the contract. Earnest money is a deposit you put down with your offer on a house to show good faith. The earnest money will be credited towards the sale. 1% of the purchase price is the standard amount of earnest money to submit with your offer.

6. Submit Your Mortgage Application to Your Lender

Your lender will guide you through this process, but you should be prepared to provide some financial paperwork. Some items you will need to have ready will be: W-2 forms and federal tax returns from the past two years, Pay stubs from the past 30 days, Proof of other sources of income, Recent bank statements, Details on long-term debts, and your ID and Social Security number.

7. Have a Home Inspection (Buyer Cost: $350-$600)

A home inspector checks out the house from top to bottom to determine if there are any problems with it that might make you think twice about moving forward. The buyer pays for the home inspection in Alabama, as we are a “buyer beware” state. Expect the pay around $350-$500 for a home inspection, out-of-pocket. Next, we will receive the inspection report. At this point, we can choose to request any needed repairs be done by the seller, negotiate the price further due to inspection findings, or choose to accept the home in its current condition.

8. Your Lender Will Order an Appraisal (Buyer Cost: Around $650)

Another important part of home buying is the appraisal. The appraiser checks out the house to make sure it’s a good investment. He/she will investigate the condition, the square footage, location, and any additions or renovations to determine the home’s specific value. If you are buying with cash, having an appraisal is totally up to you. Expect to pay around $650 for an appraisal. Sometimes this cost is rolled in with closing expenses and sometimes the lender requires it to be paid out-of-pocket. Discuss this with your lender.

9. Additional Inspections (Buyer Cost: Varies)

Other inspections to consider are a property survey, septic or sewer inspection, and a termite inspection. Some lenders may require additional inspections. Each of these types of inspection will carry its own cost. Surveys and termite inspections are usually rolled in with closing, while sewer or septic inspections are usually paid out-of-pocket by the buyer. It is your duty as the buyer to conduct any and all inspections that you wish.

10. Final Walk-Through

Around a week before closing, we will schedule a final showing of the property. The goals: to ensure the property’s condition hasn’t changed since your last visit, that any agreed-upon repairs have been made and that the terms of your contract will be met. At this point, you should have received a preliminary settlement statement from the closing attorney to review the preliminary numbers.

11. Closing Day

Perhaps the most anxiety-causing part of the home buying process is the closing day! But, really, it’s a group of people sitting around a conference table signing paperwork. Make sure to bring your valid I.D., funds needed to close, and anything else your agent or lender has instructed you to bring. Closing is the day you officially get the keys to your new home and pay all the various parties involved. That will include your down payment for your loan, plus closing costs, and the extra fees you pay to process your loan. Congratulations!