Monday, May 2, 2011

Why use a home inspector

If you're looking for a house, you've probably seen your share of ill-conceived rehabs: additions that stick out like sore thumbs, for example, or once-trendy materials that quickly became dated.

Harder to spot are the remodels that look great on the surface, but ignore or deliberately try to hide serious flaws. An incompetent, clueless or greedy remodeler can leave you with a house that's not only expensive to fix, but potentially dangerous for you and your family.
Fundamentally unsound
Unless you have X-ray vision, you can't peer inside the walls, floors and ceilings to see if a home is fundamentally sound. You can look, however, at the home's surfaces for some real clues about what's going on underneath. Such as:
  • Big cracks in the walls, ceiling, floors or foundation. Any foundation crack should be cause for concern. Wide cracks elsewhere, or cracks radiating from the corners or windows and doors, may also be a sign of trouble. They can indicate foundation problems, or ongoing movement that could be expensive to fix. If everything looks good, Jarrett said, check the closets. Remodelers may patch everything else -- but forget about what's hidden there.
  • Sloping, bouncy or "spongy" floors. All homes settle over time, so a slight slope (or even a rather noticeable one on a very old home) shouldn't panic you. But sloping that's accompanied by significant, recent wall and ceiling cracking should be a concern. If the new ceramic tiles in the bathroom are already cracking, for example, you have good evidence of serious trouble. So, too, is any floor that feels less than solid under your feet.
  • Doors and windows that don't open freely. This could be due to settling, foundation problems or poor construction. In any case, it may indicate costly repairs are needed.
  • Wide open spaces. Remodelers often like to combine smaller rooms into larger spaces, but doing so can undermine the stability of an entire house if the remodeler unwittingly removes a structural or load-bearing wall. Sagging rooflines, ceilings or beams should be big red flags. Any time an older house has been updated this way, however, investigate further. At the very least, ask for copies of the permits and for the name and license number of the contractor who did the work. If the work is unpermitted or the contractor unlicensed, consider steering clear.
I always recommend that you have your home of your dreams be inspected by an inspector that knows construction and has been in business here in Utah for a resonable length of time and you are sure he knows the weather needs here and knows what he/she is looking for.  I would be happy to show you a variety of great homes just waiting to for you to move in.

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Short Sales

A short sale may or may not be a good deal and may take 4-10 months before you know if you are the buyer and your final sales price.

Whereas our current market has many motivated sellers and a buyer can know within 24 hours if their offer has been accepted.

In 2007 I worked with 42 homes that were involved in Short Sales. I spent a lot of time Educating Sellers, unrepresented Buyers and were surprised how much time I spent educating Buyers Agents what a Short Sale is. Many, many Realtors have not been educated on the "Short Sale" process and have not been involved in one, but will represent buyers and submit unrealistic offers. A buyer will find a short sale home listed for sale at $180,000. This is done to attract buyers while the actual market value and final sales price would likely be $230K - $240K. In the meantime there many motivated sellers in the $220K-$240K price range.

We've seen unrealistic timelines and information provided to both the distressed Seller and the anxious Buyer(s) that cannot be met and create anxiety for all parties.

I'm not trying to discourage, just letting you know the Short Sale playing field. Getting Pre-Approved for a mortgage is the 1st step, then looking and finding the home they love followed by submitting an offer be it short sale or motivated seller. I hope this information is of help.

I now have my SFR certification. Which is training in Short Sals and foreclosures.


7 tips for first-time home buyers

Think you're ready to take the plunge? Following these steps first will help ensure you're making the right decision.

1. Check the selling prices of comparable homes in your area. Web sites such as Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the site of the National Association of Realtors.

2. See what you can afford. Contact a Bank or lending institution, they will have guidelines of what will work out best for you.

3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use MSN Real Estate's home affordability calculator. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.

To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy. For an idea of what you'll pay in taxes, Zillow publishes property-tax information for homes all over the country. Just remember that exemptions and the intricacies of local tax law (such as Florida's Save Our Homes value cap) can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.

4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees.

5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.

6. Give Bonny a call about the real-estate climate. Do I believe prices will continue falling or do I think your area has hit bottom or will rise soon?

7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account.

So consider whether you're ready for the expense and effort of homeownership before pulling the trigger.

Everyone needs a Disclaimer!

(All data and information provided on this Blog are for informational or entertainment purposes only. It does not reflect the opinions of any affiliated Brokerage(s). Bonny Conforto makes no representations as to accuracy, completeness, correctness, currentness, suitability, or validity of any information on this Blog and will not be liable for any errors or omissions in this information or any losses, injuries, or damages arising from its display or use; All Blog posts are the constantly changing opinion of the author(s) and may occasionally contain bad opinions.)