Lou Casciano's Blog
As you go on the house hunt, you’re likely to attend many different open houses. After awhile you can get confused as to what you have seen and where you saw it. Each open house or home showing is only a short window of time. As a buyer, you’re trying to get the feel for a house. Being an observant home shopper can help you to avoid a lot of problems down the road. Check out some of the biggest red flags that you need to look out for when you attend an open house.
The Candles Are Burning Bright
You walk into an open house and see a lovely candle lit on the kitchen table. While it may make you feel all warm and fuzzy, it’s not always a good sign. Candles are a great way to mask odors. There could possibly be a musty odor coming from the sink, the basement, or another part of the house. This spells hidden damage and possible danger for you as a homebuyer. While the home inspection should pick up on things like this, you don’t necessarily want to get that far in the process. The art of masking odors could be a sign that the sellers are trying to hide something.
Be Your Own Inspector
As you walk through the home do you notice squeaky floor boards, cracks in the walls, cracks in the ceilings, or a drippy faucet? Maybe you see some patches on the walls or mirrors and paintings that seem out of place? These are all issues that could be signs of a greater problem. Keep in mind that no house is perfect, but you should do a little investigating on your own while walking through the house at showings.
The Home Doesn’t Appear Cared For
Curb appeal is one thing, but a home that looks unkept is a sign of a larger problem for you. Has the lawn been mowed? Is the fence in disrepair? How does the home appear from the outside at first glance? There are plenty of ways that you can fix up a home to make it your own once you buy it, but the question is just how much of a challenge are you up for? There is always a chance that you’ll have large maintenance costs when a home hasn’t been properly maintained by the previous owners.
Searching for homes and going to open houses can be fun. It can also be an educational experience to help you narrow down what you’re looking for and what you can handle as a homeowner.
You may have heard about home warranties, but are unsure of what they are. A home warranty is an excellent addition to your home insurance and has a particular function. When you buy a home, the last thing you want to worry about is things breaking or malfunctioning in the house after you buy it. Buyers fear the expenses they may incur if items in the home start to break down shortly after the property becomes theirs. As a first-time homebuyer, a home warranty can be incredibly helpful since you may need a crash course on home maintenance.
Depending on what’s the norm for homebuyers locally, either the buyer or the seller will pay for the home warranty. Some sellers pay for warranties up front as an extra assurance to the buyer of the property they’re about to purchase. Sellers also use this as an excellent tactic to “wash their hands” of the property. The buyer won’t need to contact the seller if something goes wrong with the property. A home warranty is a fairly inexpensive way to show buyers that appliances and the home itself have been well taken care of. Occasionally, real estate agents will give buyers a home warranty as a gift for their business. Usually, this is done for higher-end homes.
Home warranties aren’t very expensive. They usually range in price around a few hundred dollars in cost. The cost is based on a yearly rate and can be renewed each year at a slightly higher premium.
How Do The Warranties Work?
The warranty provider works with specific companies for different purposes. When the homeowner calls the warranty provider to let them know there’s a problem, the service provider will call the homeowner to make arrangements to fix the problem. If an appliance cannot be repaired, the warranty company may replace the item. There are usually small service fees associated with these repairs and replacements.
Is Anything Not Covered?
A home warranty will not cover numerous items around the house. These items include:
Outdoor fixtures and plumbing
Indoor plumbing fixtures
Some appliances may not be covered
Home warranty plans can vary based on your location and the type of policy. Make sure you review what’s covered before you finalize any home warranty. It’s an individual choice that homeowners make to have a peace of mind when moving into a new place.
Although buying a home should be a fast, seamless process, negotiations with a home seller sometimes can slow down the homebuying journey.
Let's face it – no one wants to deal with long, arduous negotiations, particularly when they are close to acquiring their dream residence. However, homebuyers who prepare for the worst may be better equipped than others to avoid a complicated homebuying negotiation.
What does it take to prepare for a difficult homebuying negotiation? Here are three tips to help you do just that.
1. Understand the Housing Market
If you submit a competitive offer on a residence from the get-go, you may be able to avoid a difficult homebuying negotiation altogether.
Ultimately, a homebuyer who allocates the necessary time and resources to learn about the real estate market will understand how one residence stacks up against another. Then, he or she can submit a home offer that matches or exceeds a home seller's expectations, thereby reducing the risk of an extensive homebuying negotiation.
2. Analyze Your Homebuying Goals
A homebuyer who analyzes his or her homebuying goals can map out his or her property buying journey. That way, this homebuyer can assess homes that fit within his or her price range and minimize the chance of a complex homebuying negotiation.
Furthermore, if a homebuyer sets realistic expectations for a home search, he or she may be able to make informed decisions throughout a negotiation with a home seller.
A homebuyer who knows how much he or she can afford to pay for a house will be able to submit a home offer that corresponds with his or her budget. And if a home seller asks for more money, a homebuyer should feel comfortable walking away from a negotiation.
Remember, it is paramount for a negotiation to fulfill the needs of both property buyer and seller. If the negotiation favors a home seller, a homebuyer should be prepared to restart his or her home search.
3. Keep Your Emotions in Check
It is easy for a homebuying negotiation to escalate quickly. But a property buyer who understands how to control his or her emotions can take a step back during a stressful homebuying negotiation and plan his or her next move accordingly.
Stress sometimes can get the best of a homebuyer, especially if a property buyer wants to do everything possible to secure a great home as quickly as possible. If a homebuyer plans for stressful situations now, he or she may be able to reduce his or her stress levels when a homebuying negotiation begins.
Don't be afraid to take time to relax during a homebuying negotiation. Going for a walk outdoors or hanging out with family members and friends may provide a stress-relieving break from a homebuying negotiation.
Or, if a homebuyer wants extra help, hiring a real estate agent is ideal. This housing market professional understands the challenges of homebuying negotiations and will help a homebuyer alleviate stress time and time again.
Ready to acquire your ideal residence? Use the aforementioned tips, and you can get ready for a difficult homebuying negotiation.
If you want to acquire the best house at the lowest price, it pays to conduct an in-depth home search. In fact, there are many reasons why you should perform a comprehensive house search, and these include:
1. You can define your dream house.
For those who enter the housing market without a clear-cut definition of a "dream home," there is no need to worry. If you perform an extensive house search, you'll be better equipped than ever before to differentiate home must-haves from wants.
Ultimately, the definition of a dream home varies from buyer to buyer. As you map out your homebuying journey, it helps to put together a list of house must-haves and wants so you can tailor your home search accordingly.
Once you determine what you want to find in your dream house, you can assess the housing market and search for your ideal home. Then, when you locate your ideal residence, you should have no trouble submitting a competitive offer and moving one step closer to buying your dream house.
2. You can avoid the dangers associated with paying too much for a home.
Oftentimes, it is easy to attend a home showing and submit an offer on a home. But if you do so without performing housing market research, you risk overspending to purchase your ideal residence.
When it comes to determining the best price for a house, it helps to look closely at real estate market data. This information can help you differentiate a buyer's market from a seller's market, analyze the prices of houses in your city and town and much more. Perhaps most important, reviewing housing market data may enable you to avoid the temptation to spend too much to acquire your dream home.
3. You can reduce the risk of purchasing a home that fails to meet your expectations.
An in-depth home search reduces the risk that you'll be forced to "settle" for a home that fails to meet your expectations. Instead, you can allocate plenty of time and resources to search far and wide for your ideal residence. And if you find your dream home, you can rest assured that you'll be able to purchase this residence and enjoy it for years to come.
Clearly, there is a lot to think about if you intend to buy a house in the foreseeable future. But if you collaborate with a real estate agent, you can receive expert support at each stage of the homebuying journey.
A real estate agent will learn about you and your homebuying goals. Next, this housing market professional will keep you informed about available houses in your preferred cities and towns and set up home showings. A real estate agent will even help you submit offers on houses and ensure you can get the best price on any residence, at any time.
Take the guesswork out of buying a house – consult with a real estate agent today, and you can get the help you need to make your homeownership dream come true.
If you don’t have a lot of cash on hand to secure a home with a sizable downpayment, you might feel stuck. It’s quite a feat to be able to save up the 20 percent cost of a home that is generally required to purchase a home. Your options may seem limited when you want to own a home. There is one option that could be a good idea to consider when you’re in this situation. That’s the idea of finding a rent-to-own property.
How Does A Rent-To-Own Property Work?
First, know that these properties are hard to find. That’s why you may not have thought of it as a first option. When you do find a property like this that suits your needs, you should know all of the ins and outs before you commit to the home. The agreement works just as it sounds, but there are always a few bits of extra text that can make the difference in any agreement in a rent-to-own property.
Lease With A Purchase Option
With this type of agreement, you’ll need to pay what is called an option fee in order to give you the right to purchase the property at a later date. The seller is then required to sell the property to you as a tenant and apply the option fee to the price of purchase. If for some reason you have paid the option fee and decide to walk away from the property after a time, the money that you have paid as an option is simply lost. The option fee is usually a percentage of the purchase price ranging anywhere from 2-7 percent of the home’s price.
Lease And Purchase Agreement Rolled Into One
In this type of rent-to-own agreement, both the tenant and the seller agree on fixed purchase price for the home, or agree that a purchase price will be determined at a later date through an appraisal. Everything is set up from the beginning including the closing date for the home.
This type of deal in a rent-to-own situation is often considered the better choice. Know that a fixed price option may put you in a better financial position than an appraisal option. You’ll have instant equity in the property when you buy it. This is especially helpful in high competition markets. In any other types of market, you may be better off with an appraisal. This ensures that you don’t overpay for the house.
How Your Rent Payments Apply
Rent-to-own gives you an advantage in that you get the added benefit of rent credits. This is where a percentage of your monthly rent payment is applied to the purchase price of the home. The amount of percentage that’s applied will be agreed upon with your landlord ahead of time.
While a rent-to-own option to purchase a property can be a bit more complicated than other ways of purchasing a home, it can be a great way for people different financial situations to become home owners. Make sure you go over everything carefully before you sign anything so that you fully understand the agreement you’re entering into.