What are Five Questions You Should Ask the Seller Before You Move In?

The day has come and it’s time to move into your new home!  It can be exciting and sometime exasperating.  You may have fallen in love with your new place but you may not know everything that there is to know about it.  Sooner or later you are bound to end up finding yourself cluelessly looking through the circuit breaker or petting the neighbor’s dog who may not be as friendly as you thought.  But these questions can be answered by asking the seller a few questions before you move in.

Are there any special quirks about the home? Only someone who has lived in the home will have a handle on any unique characteristics such as light switches in unexpected places, doors and windows that stick or other uncommon items. 

Have you made any repairs to the home in the past? Sellers are supposed to disclose any repairs to the home or issues relate but some past problems might not be disclosed. 

Where is the water shut-off valve, sump pump, circuit box, and more?  Ask the seller to show you not only the location of these items but how they work.  If you are moving into an older home, chances are that many of the utility features will be unique in their operations, so rather than fumble around blindly, ask the seller for help.

How is the neighborhood? Establish rapport between buyer and seller- this is best asked near the end of the buying process.  However, keep it light: ask the seller to tell you about the neighborhood.

Is there anything you want to leave behind? It may not help you get to know the house but it might result in a few bonus items.  Maybe you have your eye on a piece of art or a mounted tv.  It’s worth asking the seller if they are willing to part with any items.

What Happens After You Submit Your Offer?

Making an offer on your dream home can be exciting and scary at the same time!  After looking up listings, visiting open houses, finding the right mortgage company and calculating your finances, you’ve finally found the house you want to the rest of your life with.  But what happens after you submit the offer on your dream home?

If the seller rejects your offer:

The seller may decide the amount you are willing to pay is lower than they are willing to accept.  If this happens, you may consider moving onto the next home.

If the offer is countered:

The seller may come back with a dollar amount that is slightly higher than yours- you have another opportunity to raise your offer in hopes it is accepted.  The back and forth goes on until either the seller accepts an offer or one of you decides to walk away.

If your offer is accepted:

Once you reach an agreement, things start to get really exciting! 

Get your finances in order- It’s time to move forward with your lender on the amount of money you need to buy the home of your dreams.  Work with your mortgage broker to put together the endless paperwork most lenders need to see before giving you the thumb-up.  Your lender will require an appraisal by a licensed appraiser as part of the process.

Schedule your home inspection- A home inspection isn’t required by most lenders, but it will give you peace of mind knowing everything in your new home will check out.  You should schedule this within 7 to 14 days of accepting the offer.  After the inspection, your inspector will send you a report to go over with the seller to determine what repairs will be covered.

Find homeowners insurance- Almost every lender will require you to show proof of insurance on your new home before your loan is approved.  Shop around and don’t be afraid to negotiate rates with your agent.  You may even be able to save money by bundling your homeowner’s insurance with your other insurance you might already have.

Move toward closing- While your loan is getting prepared, your home has been inspected, you’ve purchased homeowners insurance, and your final documents are in order for closing, it’s time to ensure you have your down payment ready.  Don’t make any big purchases during this time as it can mess with your credit. Once your loan is approved, you will be able to do a final walk-through on your home to ensure everything is how it was when you first viewed it and the inspection repairs are made.  Finally, you will be asked to sign on the dotted line and you are officially a homeowner!

What are the 10 Crucial Real Estate Contract Terms Home Buyers Should Know?

Real estate contracts can be a lot to handle at once especially when you are excited about your new home.  It can be packed with a slew of terms you may not be familiar with, at times you may want to take a step back and study up on the common terms.

Earnest Money- As known as “good faith money” is a sum put by the buyer and held in escrow or trust to show the buyer is serious about purchasing the home.  There is no defined amount but generally it runs about 1-2% of the purchase price.

Effective Date- The date the last party signed or initialed any terms and/or changes in the sale contract.

Due Diligence- The contract’s contingencies provide the buyer a period to do their homework.  If the buyer discovers negative information regarding the property during this time, they can cancel escrow and receive a full refund of their earnest deposit.

Contingencies- Requirements that must be met before a real estate deal can close. The frequently used are property appraisal, financing, home inspection, disclosures, homeowner’s association disclosures, and a title report.

Disclosures- All sellers are required to fill out a property disclosure for buyers that states everything they know about the home since they have owned it- good or bad. If a seller withholds information it is considered committing fraud.

Inspections- A buyer can request to do inspection within a time frame that’s mutually agreed upon with the seller.  Typically, an inspection takes place within 7 to 14 days of an accepted offer.  After the inspection, a buyer can accept the property in the current condition, release the contract and retain the earnest money, or ask the seller to repair issues discovered at the inspection.

Title Search- Confirms that the property is owned fair and square by the seller who can then transfer those rights to the buyer.  Occasionally, a home’s title can be compromised by long-lost heirs or liens by contractors who did work on the property but never received payment.

Kick-out Clause- If the buyer needs to sell a home in order to finance the purchase of a new home, the seller may decide to include a “kick-out clause” that allows the seller to continue to show the home and accept offers.  If the buyer can’t sell the home during a certain period of time then the seller can “kick out” that buyer and go with a new offer.

Appraisal- If the buyer is getting a mortgage, the lender will require the buyer to pay for an appraisal.  A third party comes in to estimate the value of the house, making sure a lender’s money isn’t going towards a lemon.

Closing- The final stretch of your real estate transaction that involves bringing together lawyers, realtors, buyers, and sellers at the closing table.  The buyer will provide the funds to purchase the home and will receive the keys to the home.