Our Real Estate Blog
For homebuyers, a home inspection is paramount. This inspection enables you to look closely at a house and identify any problem areas. It also may force you to rethink your decision to buy a house, particularly if you discover a wide range of problems during the inspection.
Ultimately, it pays to consider your options following a home inspection. In fact, if you take an in-depth approach to potential home repairs, you can determine whether to ask a seller to complete these repairs before you finalize a purchase agreement.
Before you ask a seller to perform home repairs, there are several questions that you should consider, and these are:
1. How much will it cost to complete assorted home repairs?
A damaged roof is much more expensive to repair than a defective light fixture. Fortunately, if you assess the costs of potential home repairs, you can differentiate major home repairs from minor ones and plan accordingly.
If a home requires thousands of dollars in repairs, it may be worthwhile to ask a seller to complete these repairs. Otherwise, you'll be responsible for allocating the necessary time and resources to perform costly home repairs after you finalize your house purchase.
On the other hand, minor home repairs may be easy to handle on your own. If you feel comfortable completing minor home repairs, you may want to avoid submitting a request to a seller to perform these repairs. Because if you ask a seller to complete myriad minor home repairs, he or she may walk away from a potential home sale.
2. Are there any required repairs that must be completed right away?
Required repairs, i.e. repairs that will address hazardous conditions in a house, sometimes will need to be completed following a home inspection. These repairs include water penetration issues and local code safety violations.
If required repairs go unaddressed, your lender is unlikely to provide you with the financing that you need to acquire a house. Thus, you should request a seller complete these repairs as soon as possible.
3. Is it worth my time to ask a seller to complete home repairs?
There is no right or wrong answer to the aforementioned question, as every homebuyer and home seller is different. If you are uncomfortable with a house following an inspection, you should examine the inspection report and determine the best course of action. And if you feel that asking a seller to perform home repairs is essential, it is important to do just that.
Lastly, if you need assistance throughout the homebuying journey, it helps to work with an expert real estate agent. This housing market professional usually will attend a home inspection and help you assess a house. Plus, an expert real estate agent is happy to provide recommendations and suggestions to ensure you can make an informed home purchase.
Take the guesswork out of evaluating a house following an inspection – consider the aforementioned questions, and you can determine whether to ask a seller to complete home repairs after an inspection.
Shopping for a home is an exciting time for any hopeful homeowner. After weeks of scouring listings looking for the perfect home in the ideal location for you and your family, it can seem like you’ve found the needle in the haystack.
When it’s time to go visit that home, it’s easy to put on rose-colored lenses and overlook issues that should, at the very least, be taken into consideration when it comes to deciding whether or not you should make a bid on the home and how much you should offer.
Today’s post is all about preparing you for that first viewing. We’ll give you tips on what to look out for and how to factor these things into your equation when it comes to making an offer.
Check the listing for omissions
Even if a home looks perfect on paper (or on its website listing), it’s still quite likely that there are things you’ll want to know about before considering an offer. A home listing should attempt to address several questions you might have. But ultimately, it’s main goal is to attract interest in the home.
So, what type of things should be in the listing that the seller might leave out?
Poor street conditions, heavy traffic, and blind driveways are all things that will factor into your decision but most likely won’t be mentioned in a listing
Odors of any kind can be off-putting and difficult to remove. Some homeowners may not even know that their home has an offensive odor if they’ve become used to it.
Room omissions. If the home is listed as having two bathrooms but there are only photos of one, this could be a sign that there are problems with the second bathroom that the seller doesn’t want you to see quite yet.
Top dollar home repairs
A professional home inspection will be able to give you an idea of the kind of money you’ll need to spend on renovations in the coming years. But why wait? When touring a home, ask questions about the last time important renovations and repairs were made.
Roofs, septic systems, and electrical work are just a few of the things that are expensive to repair or replace. If the previous homeowner has a small family or lives alone and you plan on moving in with a houseful of kids, you might find that your impact on the septic and electrical systems of the home are too much for the house to handle. You’ll want to take this into account before considering a bid on the home.
The cost of heating a home in the winter and keeping it cool in the summer can be hefty if the home isn’t properly sealed and weatherproofed. Ask the current homeowner what they spend per month on utilities to get an idea of what you might be spending.
Then, take a look at the windows and doors. Cracks, malfunctioning locks, and worn weatherstripping are all signs that the home will need some work to be energy-efficient.
Don’t ignore the little things
Small fixes may not seem like a big deal when viewing a home. They can even deceive you into thinking that you’re getting a good deal by buying a fixer-upper for a price that’s lower than the market average.
However, it’s important to keep in mind that small fixes around the house are a sign that bigger problems are also being neglected. Don’t be too quick to assume the house will be a good deal before getting it professionally inspected.
A first-time homebuyer may believe that he or she can submit a "lowball" offer on a residence, even if a house has been available for many weeks or months. However, the risks associated with submitting a subpar proposal are significant, particularly for a homebuyer who wants to purchase a top-notch residence as soon as possible.
Ultimately, a lowball offer may result in an instant "No" from a home seller. Perhaps even worse, the proposal could sour potential negotiations between a homebuyer and home seller and cause a property buyer to miss out on an opportunity to acquire his or her dream residence.
When it comes to buying a house for the first time, there is no need to risk submitting a lowball offer.
Now, let's take a look at three tips to help a first-time homebuyer avoid the temptation to make a lowball proposal.
1. Evaluate a Wide Range of Houses
An informed first-time homebuyer may be better equipped than others to provide a competitive offer to purchase his or her ideal residence.
For example, a homebuyer who assesses a broad range of houses in a particular area can determine a price range for similar residences. Then, if this homebuyer would like to submit an offer on a house, he or she can use housing market data to submit a fair proposal without delay.
With housing market data, a homebuyer can determine whether he or she is operating in a buyer's or seller's market too. That way, this homebuyer can leverage housing market insights to quickly and effortlessly put together a competitive offer on any residence, at any time.
2. Understand Your Finances
Getting pre-approved for a mortgage usually is a great idea for a first-time homebuyer. With a mortgage in hand, this homebuyer will be able map out a homebuying journey based on his or her finances.
To receive pre-approval for a mortgage, a homebuyer will should meet with several banks and credit unions. These lenders can offer details about a variety of mortgage options and help a homebuyer make an informed mortgage decision.
After a homebuyer is pre-approved for a mortgage, he or she can submit an offer on a house and understand exactly how much money is available for a home purchase. As a result, this homebuyer can put his or her best foot forward with an initial offer, thereby reducing the risk of submitting a lowball proposal.
3. Collaborate with a Real Estate Agent
The homebuying journey can be long and complicated, especially for those who are pursuing a house for the first time. Fortunately, a first-time homebuyer can collaborate with a real estate agent to obtain deep housing market insights.
A real estate agent is happy to provide honest, unbiased home offer recommendations. By doing so, this housing market professional can help a first-time homebuyer submit the best offer on a residence – without exception.
Ready to purchase a home for the first time? Use the aforementioned tips, and a first-time homebuyer can avoid the danger of submitting a lowball offer on a residence.
If you intend to purchase a house, it helps to submit a competitive offer. In fact, if you submit a competitive offer, you may be better equipped than ever before to enjoy a fast, seamless homebuying experience.
Ultimately, there are many reasons to submit a competitive offer on a home, and these include:
1. You can increase the likelihood of an instant "Yes" from a home seller.
Let's face it – no home seller wants to deal with a "lowball" offer on a house. Fortunately, a competitive offer helps improve your chances of receiving an instant "Yes" from a seller, thereby increasing the likelihood of a stress-free homebuying experience.
A homebuyer who allocates the necessary time and resources to understand a house and its strengths and weaknesses should have no trouble defining a competitive offer. Then, this buyer can submit a proposal that accounts for a house's age and condition. And if a seller accepts the homebuying proposal, both the buyer and seller can work together to finalize a purchase agreement.
2. You can open the lines of communication with a home seller.
Although a competitive home offer may suit your interests, it may not match a seller's expectations. However, a buyer's decision to submit a competitive proposal may open the lines of communication with a seller.
If a buyer submits a lowball proposal on a house, he or she may receive an immediate rejection from a seller. Comparatively, a competitive home offer may force a seller to consider his or her options closely. And even though a seller may not be fully satisfied with the proposal, he or she could counter the offer and negotiate terms with a buyer.
3. You can avoid the risk of overspending to acquire a residence.
A homebuyer who analyzes the real estate market can find out what a home is worth based on a variety of housing sector conditions. Therefore, this buyer can submit a competitive offer, one that minimizes the risk that he or she will overspend to acquire a residence.
When it comes to putting together a competitive home offer, you may want to collaborate with a real estate agent as well. This housing market professional can work with you throughout your home search and ensure you can pounce at any opportunity to purchase your ideal house.
A real estate agent understands all aspects of the housing market. He or she will help you search for residences in your preferred cities and towns. Plus, once you discover your dream house, a real estate agent will make it simple to put together a competitive offer.
Furthermore, a real estate agent is happy to respond to your concerns and questions throughout the homebuying journey. This housing market professional will offer expert homebuying insights, enabling you to make the best-possible homebuying decision.
Limit the guesswork associated with submitting a competitive homebuying proposal – use the aforementioned tips, and you can make an aggressive offer on any house, at any time.
If you’re hoping to buy a home in the near future there are several financial prerequisites that you should aim to meet. Ideally, you’ll want a sizable down payment, a verifiable income history, and a good credit score.
It takes time to build credit. For most people, it can be several months or even years before they see a double-digit change in their credit score. However, if you have a low credit score and want to give it a quick boost, there are ways you can make a big difference.
But first, why should you focus on your credit score?
Credit scores and mortgages
When you apply for a mortgage there are several factors that your lender will take into consideration. One of their top concerns will be your credit score. This score is like a snapshot of your financial reliability. It tells lenders how much risk is involved in lending to you.
As a result, lenders will increase your interest rate if you are high risk and lower it if you are lower risk. To be a low risk homeowner, you’ll want your score to be in the high range, (usually 700 or above).
Credit change potential
Depending on your financial history, it can be more difficult to raise your score in a shorter period of time. If you are young, don’t have a long credit history, or haven’t had many bills to pay in your lifetime, your score will be more malleable than someone who has had low credit for years due to late payments.
In the United States, you have to be eighteen to open up a credit card or take out a loan by yourself (this is different from getting a loan co-signed by a parent or guardian). You can also ask your parents or guardians to add you as an authorized user of their credit cards. This will let you build credit without having to settle for the high interest rate credit cards you would be eligible for.
If you happen to have a low score (anywhere between 300 - 600), the good news is you can achieve a larger change over a shorter amount of time than someone who already has a high score.
So, how do you achieve that change?
One of the easiest ways to quickly improve your score is to check for errors in your credit report. You can get a free report each year from the three main credit bureaus--Equifax, TransUnion, and Experian.
Look out for bills that have been mistakenly put under your name and for collections that shouldn’t be on your account.
Avoid new credit
One thing that can do short-term harm to your credit score is opening or attempting to open new lines of credit. That can be a store card, a loan, or getting your credit checked by a lender.
If you want to build credit quickly, making several inquiries could land you with a lower score than where you started.
Pay your regular expenses with credit
A good way to gain credit points in a few months is to pick a monthly expense to use your credit card for. Pay off your full balance at the end of each billing cycle to earn the most points while avoiding building up too much interest.