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A good home inspection report is a valuable resource — not only during the home buying process, but also as a guide to maintenance when you own the home.

Home inspection reports can be difficult to decipher, but it is vital that you thoroughly understand everything in the report and the inspector’s recommendations.

Types of Home Inspection Reports

Home inspectors produce different types of reports. Some home inspection reports are checklists pertaining to specific areas of the house. Some are narratives, detailing what the home inspector found as he or she went through the house. Some are written in plain English, while others use symbols and icons that the reader has to decipher.

No matter the format, a home inspection should provide a detailed description of the home’s features. “Damage to door lintel” isn’t as descriptive (or as useful) as “some scuff marks on door lintel with splintering on left side,” for example.

Some home inspectors tend to give a home’s negative features more attention than its positives. Make it clear you want the home inspection report to list the good along with the bad. You’ll be better able to judge the state of the home if the report includes the positives as well as the negatives.

Who Reads Home Inspection Reports?

Homebuyers aren’t the only people who read home inspection reports. Lenders may require a home inspection report in addition to the appraisal.

If you decide to exercise your right to walk away from the deal due to the findings of the inspection, you’ll need to share the report to get your earnest money deposit back.

Depending on state law, real estate agents representing both buyers and sellers sometimes receive a copy of the report. Depending on negotiations, buyers may allow the seller to also see the report.

Evaluating Home Inspection Reports

If at all possible, accompany the home inspector during the inspection. This allows you to ask questions and get a better sense of the condition of the house than if you rely on the written report alone.

Questions to consider as you look over the home inspection report include:

• Are the problems with the house reflected in the asking price?
• Are the problems significant enough to rule out buying the home?
• Does a problem require immediate attention or can it be fixed in the future?
• Do you need more information on a problem?
• Is a problem minor or major?

Often, reading a home inspection report generates more questions than you had to begin with. Your home inspector should be willing to provide you with more information on the nature of specific issues.

Home Inspection Reports after a Sale

Hold on to your home inspection report after you purchase the house. A thorough report may contain up to 20 or more pages, detailing items that need adjustment, service or cleaning. The summary punch list, detailing the inspector’s concerns, is a valuable reference for future home maintenance needs.

We will be with you every step of the way to the purchase of the home so don’t hesitate to ask questions about the inspection, the report or anything else pertaining to the transaction.

There is no such thing as a home in perfect condition. This includes newly-built homes.

Surprised?

The folks at Scott Home Inspection in Colorado have compiled an online list that highlights the most common defects in a newly constructed home. The list includes some pricey items, such as “… improperly installed heating and air conditioning.”

One of the costliest home repairs or replacements is the roof. How costly? A new roof can cost between $10,000 and $15,000 Gregory Kyler, custom builder and licensed general contractor tells Jami Farkas at yahoo.com.

A roof’s average lifespan is 50 years if it’s constructed of “Slate, copper and tile …,” according to Geoff Williams and Teresa Mears at money.usnews.com.

You’ll get about half as many years of life from a roof constructed of fiber cement shingles and 30 years from a shake roof.

Naturally, these life expectancies depend on weather and natural disasters.

So, what happens when you’ve fallen in love with a house, put in an offer and the home inspector raises red flags about the condition of the home’s roof?

Don’t throw in the towel. There are things you can do to save the deal and not be out of pocket for the work that needs to be done.

Renegotiate the price of the home

Your first step is to obtain a bid for the roof work that needs to be done. Ensure that you hire a licensed roofing contractor to supply you with the bid. Check a contractor’s license status by following the instructions at roofonline.com.

Deduct the bid price from the amount you offered on the home. Your real estate agent will submit an amended purchase agreement to the seller’s agent. Then, it’s a waiting game.

If the seller agrees to the lower price, celebrate! If not, and you have the money, perhaps the sellers will split the cost.

If you have wiggle room in your loan preapproval amount, consider adding the amount for repairs into your mortgage. This will require increasing your offering price.

It’s a far from ideal scenario, however. Will the home appraise for that amount?

Renegotiate the terms of the contract

If you know that the purchase price reduction request might be a deal breaker for the seller, get together with your agent and pore over the contract terms.

Perhaps the seller will be amenable to paying for the roof repair or replacement before the close of escrow. Another method used is for the seller to place that amount of money in an escrow account so you can use it to pay for the roof work after closing.

The latter may raise issues with the lender, who may want a roof certification before releasing funds for the purchase.

Roof problems listed in the home inspection don’t have to be a deal breaker. Once the sellers are informed about them they will need to disclose them to any buyer that comes along after you and will face the same requests that you are making.

Don’t give up! We will negotiate for you and win you that home.

Want to buy a house but you’re short on cash?

If you have a 401(k) (an employer-sponsored retirement plan), read on to learn how it can help you get into the home of your dreams.

First, remember the purpose of that 401(k)

It’s called a “qualified retirement plan” for a reason – it is a cushion to use when you leave the work world and settle into retirement.

It needs to be a rather large cushion too, we might add. “On average, Americans believe they need $1.7 million to retire, …” according to Jessica Dickler, citing a recent survey from Charles Schwab at cnbc.com.

A more accurate way to determine how much income you’ll need each month is by dividing your estimated annual expenses by 4%, according to Jean Folger at Investopedia.com.

“So, for example,” she explains, “if you estimate you’ll need $50,000 a year to live comfortably, you’ll need $1.25 million ($50,000 ÷ 0.04) going into retirement.”

There’s a lot to consider when you’re thinking about raiding those funds to pay for a down payment and closing costs for a home. And, although we’ve researched the issue, we aren’t finance professionals, and we urge you to consult with one before making a decision.

Should I withdraw the money or borrow it from my 401(k)?

Keep in mind that “Every employer’s plan has different rules for 401(k) withdrawals and loans, …” warns the experts at fidelity.com. “… so, find out what your plan allows,” they conclude.

Many plans offer the owner the choice of withdrawing the funds from the 401(k) or borrowing them. Both methods of getting your hands on the money have advantages and disadvantages.

“When done for the right reasons, taking a short-term 401(k) loan and paying it back on schedule isn’t necessarily a bad idea,” according to Troy Segal at Investopedia.com.

In essence, you’ll be borrowing the down payment for the home from yourself, and you’ll need to repay that loan, with interest, within 10 years.

Withdrawing the money from your retirement plan brings with it some distinct disadvantages. “Taking money out of a 401(k) plan before age 59 1/2 often results in taxes and penalties,” cautions Rachel Hartman at usnews.com.

This will happen if you’re younger than age 59. You will pay taxes and a 10% penalty upfront.

One advantage of requesting a withdrawal, however, is that there is no requirement to pay back withdrawals, according to the pros at fidelity.com.

Borrowing the money from your 401(k)to help you buy a home allows you to skip paying the taxes and penalty, but you will have to pay interest on what you borrow.

“Depending on what your employer’s plan allows, you could take out as much as 50% of your savings, up to a maximum of $50,000, within a 12-month period (fidelity).

Before you make a decision on either of these 401(k) options, consult with your financial advisor. Most professional advisors “… recommend borrowers tap their 401(k) funds only as a last resort,” claims Gina Freeman at themortgagereports.com.

 

 

By most people’s definition, luxury condominium buildings feature quality construction and tasteful architectural details. Common areas may be anything from fertile, Eden-like gardens to rooftop sundecks with cabanas and a full bar.

The definition of the “perfect” luxury condo varies by personal taste, but overall, the luxury condo offers superior service to meet the high standards of its residents.

When a building and its amenities cater to your particular lifestyle, you have found the perfect luxury condo.

On-Site Amenities

The best luxury condo buildings have on-site staff that includes a concierge, valet and other members to provide services to the community’s residents. Some of these services may include restaurant delivery, dog walking, and the procurement of theater and sporting event tickets.

Some of the most popular communities feature infinity pools, or at the very least, resort-style pools surrounded by a sundeck. Jacuzzis are standard as is a state-of the art fitness facility.

Ideal luxury condo buildings also employ a valet to park, wash and even detail your car.

The services that you feel are important will define whether or not the condo you are looking at is the perfect one.

Get clear on which services you must have in a luxury condo before heading out to tour them.

The heart of every home

Very often it is the kitchen that makes or breaks the sale of luxury homes, and condos are no exception. Gourmet kitchens are in demand, whether the residents do their own cooking or hires a personal chef.

Top-of-the line appliances, typically with a stainless-steel finish, are common. Professional ranges and dishwashers, granite or other slab countertops and fine wood cabinetry are desirable features for many lux condo buyers.

If you cook, you know the importance of good lighting and luxury condos generally cater to this need. From under-cabinet lighting to brighten up a work surface to overhead lighting, a gourmet kitchen offers it all.

Consider what you need in a bathroom

The bathroom is usually second in importance only to the kitchen, and bathrooms in many luxury condos are magnificent. In fact, think “spa” when envisioning the perfect condo’s bathrooms.

Custom materials, such as imported stone and rich wood set the elegant stage. Other common features include electronic faucets, towel warmers, shower rain heads and heated floors.

Some developers go all out and opt for tanning showers, bubbler tubs with fountains and fireplaces.

A view to die for

Depending upon location, a view may or may not be a part of your picture of the perfect luxury condo. In some parts of the country, a view of the city’s lights or the mountains is so quintessentially luxurious; it’s almost impossible to put a price on it.

The ideal luxury condo also provides dual-glazed windows through which to gaze at the sumptuous view.

If a view is important to you, put it on your must-have list.

Need a guest suite?

Whether you reserve this room for guests or transform it into a library or home office, the extra suite is a must in a luxury condo.

Some newer condos are now offering separate units as suites that you can rent, for a reasonable fee, to accommodate the overflow of guests.

Condos, luxury or otherwise, are attractive for the low-maintenance lifestyle they provide. Life in a condo means not having to concern yourself with grounds up-keep and other home maintenance matters.

Luxury condos provide that freedom, plus all the amenities that make your life easier.

Sure, it’s a sellers’ market and homes in good condition and in popular areas are selling shortly after being listed. How quickly? Nearly 60% of home sellers accepted an offer on their home within two weeks of listing.

Homes are selling for more than the sellers listed them for, as well, at a nationwide average of 100.8% of list price in February.

This is definitely the best time to sell your home. For you to wring every last penny of its value out of it, though, requires preparing the home for the market.

Get the price right to avoid losing money

Keep in mind that if your home isn’t priced correctly, even in a market that is overly kind to sellers, it may sit on the market and become “stale,” until you eventually drop the price.

You may even need to drop the price several times to drum up interest in the home.

Ensure that your listing agent is well-versed on current market conditions and knows how to price a home strategically.

Suggested repairs

If it drips, fix it. If it’s ripped, torn or broken, replace it. If you think the house has major problems, have it professionally inspected before putting it on the market.

Buyers do notice the small stuff so take a tour of the home, paying close attention to the following:

• Cracks and holes in the walls
• Peeling or otherwise damaged paint or wallpaper
• Torn or bent window screens
• Broken or cracked window glass
• Leaky faucets
• Caulking
• Running toilet
• Damaged flooring
• Dirty or damaged baseboards
• Broken floor or counter tiles
• Inoperable lamps and other light fixtures
• Broken electrical outlet and switch plates

Should you decide to make large repairs, the following will net you the most money at the close of escrow:

• Garage door replacement. If it’s old and ratting it will ruin your home’s first impression, thereby lowering its perceived value.
• Front door replacement (make it a steel door to add maximum value).
• Floor repairs or flooring replacement
• Updated electrical.
• Updated plumbing.

Now, the fun part

Once the necessary repairs are out of the way, decide if you want to take some extra steps to make your home irresistible. Consider staging it to increase its perceived value.

Staging a home gives the impression that it’s move-in ready. Why is this important?

Slightly more than 63% of homebuyers want and will pay more for a home that is in turnkey condition, according to a study performed by marketing research firm Maritz.

A move-in ready home is, first of all, an impeccably clean home. Dirty homes turn buyers off and give the impression that the home isn’t worth much.

Aside from the aforementioned repairs, listing your home at the right time is critical if you want to make the most amount of money possible. List soon to take advantage of the current market before you miss out on it.

Making the home attractive to buyers presents the best opportunity, though, to reap even bigger rewards at the close of escrow.

Any real estate agent can sell a home. But to get the most amount of money possible for it requires an agent who is a fearless negotiator, with experience and well-honed marketing chops.

The road from offer to closing is littered with potholes, each of which can, when navigated by the wrong real estate agent, cause the erosion of your asking price, or worse.

1. Minimize surprises for the buyers

One of the biggest real estate transaction “potholes” is the home inspection. Because negative findings can cause price negotiations to begin anew, and with far more emotional intensity than the original negotiations, minimizing the inspection’s impact on the sale is paramount to getting top dollar for your home.

A professional, pre-sale home inspection will give you a clear idea on what the buyer will learn about the home during the escrow period. Making the necessary repairs before a buyer steps in removes this obstacle.

Even if you choose not to make recommended repairs, we can let the buyer know about them ahead of time. It’s better to lose the buyers before they make an offer and you take the home off the market than weeks down the road.

Now, some repairs may be required by lenders and, less frequently, insurers, but we can discuss this when we see the list of the inspector’s surprises.

Since time is money, closing as quickly as possible should be your goal

Those repairs you decide not to make can go on a list to be handed to potential buyers. This way they know upfront what needs to be done and can make a decision on whether to make an offer.

Keep in mind that some repairs may be required by the lender and, although it doesn’t often happen, even your insurance company can insist on certain repairs. At any rate, it’s far better to have a potential buyer walk away before entering into a contract than after.

2. Head off the home inspection as the get-out-of-the-deal-free card

Even seemingly-harmless items in a home inspection report can become a bone of contention and many times the buyer will use these as an excuse to walk away from the deal.

They may actually be experiencing cold feet or they’ve found another home they like better. There are any number of reasons a buyer may be looking for a way to get out of the deal.

Since most purchase contracts allow the buyer to be released without penalty should the home inspection turn up anything they don’t like, some use it as a get-out-of-the-deal-free card.

A pre-sale home inspection, handed to each potential buyer, should quash this tendency.

Since they are aware of the home’s warts going into the agreement, there should be no reason, short of their own inspection turning up something different, for them to walk away for inspection reasons.

3. A pre-sale home inspection makes brilliant marketing fodder

Nothing instills confidence in a buyer more than a seller who is completely upfront and honest about the home’s condition. Should you choose to fix what’s wrong with the home, the report can and should be used in the in-home marketing materials.

Even if you don’t do the repairs, providing copies of the report to potential buyers shows them that you aren’t trying to hide anything – it provides good faith.

A pre-sale inspection isn’t necessary for the successful sale of your home, but if you know there are items in need of repair, it’s best to let potential buyers know before they sign a purchase agreement, getting rid of one of the major reasons home sales fail.

Ready to list your home? Find out how much it’s worth!

 

I imagine we don’t need to tell you, but it’s a crazy, overheated real estate market out there. Some homebuyers are so desperate to land a deal that they’re waiving critical inspections and more.

It can be challenging to consider aspects of a home that need some time to ponder when you’re in the heat of a multiple offer situation in which the price of your dream home is escalating.

This is most likely why a recent survey by a nationwide real estate portal finds that “75% of people who bought a home during the pandemic have regrets.”

Fifteen percent of Millennial homebuyers ended up disappointed by the location of their new home.

Before you commit, remember that a home extends far beyond the walls of the physical house. When you purchase a home, you are actually buying into an entire neighborhood and the community that surrounds it.

Taking the time to gather neighborhood information goes a long way toward ensuring many years of happiness in your new home.

Getting around

While home may be where the heart is, we all need to get from home to work, school, shopping and other activities.

Step number one, then, is to ensure the homes you like are in areas with convenient roads, access to highways and freeways (if you commute) and good public transportation for yourself and children.

Drive around the neighborhoods and maybe even take a test drive to work during rush hour. Neighborhood information such as this is invaluable when buying a home.

Schools

Even if you don’t have children, schools are a vital factor in choosing neighborhoods because of the dramatic effect they have on home prices and resale value. The local school district should be able to provide you with information including:

• average class size
• percentage of students who graduate
• percentage of students who go on to college

Go online to the various school ranking sites for test scores, district and school boundaries rankings and more. Head to schooldigger.com and greatschools.org.

You may also want to visit local schools to see if they are in good condition and if teachers seem competent and motivated.

Community life

Every neighborhood has its own unique feel. Informed home buying involves spending some time in the neighborhoods you are considering so you can decide which is a good fit for you. Here are a few ideas to help you get a feel for a neighborhood:

• Check out the closest hospitals, houses of worship, museums, parks, sporting fields and theaters.
• Find out if the neighborhood has a community association with guidelines you will have to follow.
• Learn about interesting organizations you may want to get involved in, such as a community theater, 4-H club or historic trust.
• Have lunch in local restaurants and cafes.
• Shop in local stores, especially the supermarket.
• Take a walk around the neighborhood and chat with people you meet.
• Test your cell phone for area reception.

Neighborhoods and crime

Crime is up across the country. If this is a concern to you, a little research will help to ensure that you are considering homes in safe neighborhoods:

• Contact the local police department for a history of crime in the area, and crime statistics.
• Examine the neighborhood for signs of vandalism or neglect.
• Scan crime tracking websites, such as spotcrime.com, neighborhoodscout.com (there is a fee)
• Learn more about crime tracking for specific neighborhoods at areavibes.com and safewise.com.

Utilities

An often-overlooked factor in choosing a house to buy is utilities. The type of utilities available in a neighborhood will affect both your budget and quality of living.

• Does the house use a sewer, cesspool or a septic system?
• Is the house hooked up to town or well water?
• See if your prospective neighborhood is hooked up to natural gas or homes are heated by electricity, oil, propane or solar energy.
• Will you be cooking on a gas or electric stove?
• Don’t be afraid to ask the seller how much her average water, gas, electric sewer bills are.

Yes, we’re in a red-hot market and yes, it moves quickly. To avoid regret with your purchase, however, it pays to take a bit of time to consider the neighborhood and surrounding community.