homebuyer tips

Home Inspection FAQs

December 6, 2016 By Chris

As the buyer you’re not just going to sit back and wait for closing after you’re offer has been submitted and accepted. In addition to working with your lender to get your mortgage approved and setting up your movers, you’ll want to have your future home inspected by a licensed professional. Below we answer the most common questions buyers have about what a home inspection is, why they should have one done, and how to find a qualified home inspector.

Why have a home inspection?

A home inspection is in your best interest as a buyer and may be required by your mortgage underwriter. Touring a home with your Realtor one or two times can only tell you so much about the house and only show you the things in plain sight. A home inspector is trained to look at all aspects and systems of a house. Once the inspection is completed, your inspector will provide you and the seller with a written report of his or her findings. Depending on the terms of your sales agreement, you can then negotiate with the seller to have necessary items on the report repaired or replaced.

What is the inspector looking for?

The home inspector is going to look over almost everything about the house. He or she will inspect the HVAC systems, plumbing, electrical, stairs, roof, windows, foundation, and any external features. The inspector will provide you with an unbiased and professional evaluation of the house. The inspection report will detail necessary repairs along with estimated costs of said repairs. It will also include the estimated remaining life on things like the HVAC systems, roof, windows, decking and fencing as well as tips that may help extend their life. A home inspection does not include everything in the house however. You can read about what isn’t included in a home inspection here.

Should I attend the home inspection?

It’s not mandatory that you attend your home inspection but it is a good idea. First, it would provide you with another look at the house and an opportunity to take measurements for furniture, new appliances, and window treatments. Second, the home inspector will give you some valuable insight into the home. He or she can show you how to operate and maintain all the systems and appliances in the house so you’re not scratching your head after closing.

How long will the inspection take and how much will it cost me?

While the inspector is always looking for the same things, each inspection is different based on the house. Generally, it will take between two and four hours to complete a home inspection. You can expect to receive your written report within seven to ten business days after the inspection. Price will again vary depending on the house. Rates are usually based on square footage and average between $350 and $700.

What should I look for in a home inspector?

Your Realtor and lender can both provide you with referrals to home inspectors. You’ll still want to independently vet your inspector. You want a home inspector who has years of hands-on experience. Research how long they have been in business and when they became certified. Next, ask for information on how they will supply the results of a home inspection to you. Will the report be mailed, faxed, or emailed to you? You’ll want a printed report with details on each item on the checklist. You should also want find out what items they will be inspecting and make sure it’s a thorough list. If a home inspector is hesitant to allow you to attend the inspection, won’t explain their process or background, or won’t provide you with a detailed report you should look elsewhere.

When should I schedule my home inspection?

Once you have your home inspector, schedule the appointment as soon as possible to give yourself and the seller enough time to address any issues that may crop up. There is most likely a contingency related to your home inspection included in the agreement of sale. As with most contingencies, there is a “time is of the essence” custom and it may even be listed in the agreement. Abide by the timeline stated in the agreement or follow your Realtor’s recommended time frame.

A home inspection can seem like a formality and possibly unnecessary but be assured it is most definitely a necessity. While Florida law requires Sellers to disclose their full knowledge of the property’s history that doesn’t mean a Seller will know about unseen issues and it also doesn’t mean all Sellers will be honest and forthcoming. Protect your investment every step of the way.

Editor’s note: This post was originally published November 2014. It has since been updated and edited for clarity and cohesiveness.

8 Tips For Buying a Second Home in Florida

October 14, 2015 By Chris Leave a Comment

Thinking about buying a second home? Does the lure of owning a Florida have you planning your vacation around looking at beachfront bungalows, condos, or potential rental properties? If you’ve ever considered making your vacation plans a permanent fixture in your, you should consider buying a second home in Florida. Here are some tips on how to approach the process and make the decisions with which you’ll be faced.

Why buy a second home? If you’re thinking of buying a rental property, your motivation is income and appreciation. If you’re thinking of buying a vacation property, your motivation will revolve around the fun you and your family can have now and in the future. You can combine your motivations and purchase property that will vacillates between a rental property and your family’s vacation hideaway. Be sure to evaluate how much time you’ll spend in your new home away from home and whether you’ll want to keep returning time after time.
Go in with your eyes open. A second home comes with initial closing expenses similar to those you had to pay when closing on your primary residence as well as ongoing expenses. Be sure you know what all your acquisition costs will be and get a good feel for what it will cost on a monthly basis before pulling the trigger. Don’t make the mistake of underestimating what the real cost of owning and maintaining a second home will be. Florida’s Homestead Exemption reduces property taxes on primary residences, but not second homes. Know what your taxes will be and be sure to consult with an accountant to determine how owning a second home will affect your income taxes.
Location, location, location. You’ve heard it before, but when it comes to buying a second home, whether it’s for income or fun, location really is the key. You already own your first home, so when you’re looking for your second you can take your time, relax and wait
until the right location comes along. Don’t be in a hurry; the pressure is off. You still want your new home to appreciate, so consider buying in popular areas, perhaps near the beach, a lake or a waterway.
Choose a professional Realtor®. We can’t stress this strongly enough. You need a Realtor® who will listen and understand what your priorities are, the budget within which you need to work and someone who has established professional relationships with the people you’ll be working with. (i.e. appraisers, lenders, insurance brokers, etc.) You also want a Realtor® who knows the area, its neighborhoods, their weak and strong points, and where the market is moving.
Insurance. Before you buy, make sure you’re able to purchase the insurance you need, especially if you’re thinking of a home near the water. If you take out a mortgage, title insurance will likely be required. You may also want to consider liability insurance if you will be renting your second home.
Find a lender. Keep in mind that not all lenders are alike, and some have different rules when it comes to mortgaging second homes. Rates are still low and the rate you end up paying for a mortgage on your second home should be about the same as what you pay for your primary residence. However, some lenders may charge an additional one-half to full-point fee for loans on investment properties. You may want to consider using the equity in your first home through a refinance or a home equity line of credit for a down payment if you don’t have the cash readily available.
Revisit why you’re buying that second property. If it’s for income, your path is clear. You’ll become a landlord, which comes with all its rights and responsibilities. Is that something you really want to be? If it’s a vacation home, how much time do you really think you’ll spend there? Be honest with yourself when asking these important questions, or they’ll come back to haunt you later.
Make an offer. Great homes aren’t sitting on the market a terribly long time but that doesn’t mean it’s a Seller’s market either, there are still great deals to be had. When you make an offer, make the strongest one you can. Your Realtor will be able to advise you what constitutes a strong offer while still leaving some wiggle room if negotiations are necessary. And remember this isn’t a zero sum situation, you don’t need a second home immediately so if negotiations don’t go the way you’d hope make peace with walking away.

Editor’s note: This post was originally published in December 2011. It has since been updated with the latest information and edited for comprehensiveness.

Fixtures and Personal Property

October 6, 2015 By Chris

A common surprise for many Buyers when they complete their walk-through or move into their new home is what isn’t there. Buyers many find that the curtains that matched the living room perfectly are nowhere in sight and be further disappointed when the ornate chandelier that was hanging in the dining room during the showing is replaced by a standard brass one. The confusion and expectations are due to not understanding the difference between fixtures and personal property, the Seller’s failure to prepare the house properly, and/or miscommunication when the listing agreement and sales contract were prepared.

Fixtures

Fixtures are anything that is affixed to the property. Things like doorknobs, scones, chandeliers are all examples of fixtures. There are other items that are integral to the operation and living conditions that are also considered fixtures; such as refrigerators, stoves, sprinkler systems, and pool equipment. All of the items must stay with the home unless otherwise negotiated.

Personal Property

Personal property is fairly self-explanatory. It is all the possessions of the Seller such as furniture, decorations, pictures, and maintenance equipment. All of the personal items are not considered part of the sale of a home and the Seller is expected to move all of these items out upon completion of the sale.

Some Sellers have sentimental or other reasons they may want to take a fixture, such a chandelier, with them when they move. Before listing a property for sale, Sellers should advise their Realtor what they intend to take with them, remove the item(s), and replace the items before the house goes on the market. Replacing the item before listing leaves no room or misunderstanding of what is and isn’t included in the sale.

While viewing a house, a Buyer may fall in love with a dining room set or the draperies in a particular room. Buyers should ask that the items be left in the house or offer to purchase the items, the negotiation and payment for such an agreement can be included in the sales contract or handled separately. Not all Sellers are willing to part with their personal effects however and Buyers should avoid making it a sticking point of their offer.

When there is real confusion about what is or isn’t a part of the house they best advice for both sides of the deal is to ask.

New Construction or Existing Home?

May 12, 2015 By Chris

When you’re looking for a new place to call home, you usually have an ideal in your mind. The idea of the perfect home is extremely subjective. An older home full of charm may be perfect for one person while a brand new condo may be perfect for another person. One size definitely does not fit all when it comes to home buying. While you may have your mind made up, it’s still a good idea to be informed about all your purchasing options and their pros and cons.

Existing

Pros

Older homes tend to have more character and individual looks than the newer cookie-cutter mass produced homes.
Existing homes are more readily available than new construction.
Buyers are better able to negotiate the price on existing homes.
With an existing home, the neighborhood is already established so you are aware of traffic, location of shopping and schools, etc.

Cons

Existing homes will likely require more maintenance and possibly be less energy efficient.
Floor plans are difficult to change.
Decor and appliances may be dated.

New Construction

Pros

Everything is brand new!
New construction allows you to choose or design a floor plan that suits your needs and wants.
All appliances and utility systems meet the latest standards of energy efficiency.
New construction comes with a builder’s warranty.

Cons

Unless you hire an independent builder and purchase land outside a planned community, new construction homes will be limited in their variety.
Construction takes time, anywhere from 3-6 months.
Many new planned communities have homeowner associations.
Builders are less willing to negotiate price breaks with buyers.

Just like your ideal home style, buying a new construction or existing home will come down to personal style, needs, wants, and time.

Newlywed Home Buyers Guide

March 24, 2015 By Chris

You’ve said “yes” and you’ve set the date now it’s time to start thinking about where you and your new spouse will begin your life together. You’ll need to evaluate your finances, lifestyle, and future plans before you start touring potential homes.

Can you afford it?

Before you say “I do” to any home you should review your budget and credit history to determine if a mortgage payment can fit. Seeking a mortgage pre-approval from a qualified lender is the next step. The lender will determine what you can qualify for and how much home you will be able to finance. You can read our guide about how to prepare for home ownership for more details on your budget and other decisions you’ll need to make.

The long or short term?

Deciding how long you plan to stay in your perspective home will also help you determine what kind of house and in what neighborhood you’ll want to buy. If your intention is for this home to be a started for just the two of you, a smaller home in a more active & urban area may better suit your needs. You’ll also want to keep the amount of money you invest in a starter home low so you can maximize the appreciation when you sell. Turn-key homes are the best for these situations since they require almost no repairs or home improvement other than a fresh coat of paint to suit your decor choices.

If you are planning on your purchase being your forever home, you should consider what your needs and wants will be in the years to come. If you are planning to expand your family at some point, larger backyards, well-rated schools, neighborhoods with an active community, and easy access to parks and other recreation by foot may be amenities to consider when searching. Properties that need major updates or construction or have the option of adding on to them later on may be more appealing since you have the time to invest and budget accordingly for such projects.

Before or after?

The last thing you will want to consider is when to buy your home. Do you want to buy before or after your wedding? If your wedding is a year or more away you may want to close on your home before rather than after your wedding so you can settle into it while you’re not swept away in wedding planning. Depending on the financial demands of your wedding, however, you may want to avoid depleting all of your savings at one time. Mortgage companies will want to see a healthy savings account and low debt when underwriting your loan. If one of the spouses plans on changing their last name after the wedding it could delay closing while waiting for all the necessarily documents and records to reflect the new last name. And if you take title jointly before the wedding and a name change does occur, you’ll need to record a quit claim deed reflecting the name change at a later date should you refinance your property.

And as with any real estate transaction, you should find a licensed Realtor who is an expert in the location that you want to call home.

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