When entering the homebuying process, it is important to evaluate and prioritize your wants and needs. This will help you focus your search, save time, and make informed decisions. Here are some key factors to consider:
Budget: Determine your budget by assessing your finances, including your income, savings, and expenses. This will help you understand how much you can afford to spend on a home, including the down payment, mortgage payments, and ongoing homeownership costs.
Location: Consider the location that best suits your lifestyle and needs. Think about proximity to work, schools, amenities, transportation, and any other factors that are important to you. Research the neighborhoods you are interested in to ensure they align with your preferences and requirements.
Size and Layout: Evaluate your space requirements, including the number of bedrooms, bathrooms, and overall square footage. Consider your current needs, as well as any future plans that may impact your space requirements, such as starting a family or working from home.
Property Type: Determine the type of property that suits your lifestyle and preferences. Options include single-family homes, condominiums, townhouses, or multi-family properties. Each type has its own advantages and considerations, so weigh the pros and cons based on your needs.
Features and Amenities: Make a list of the features and amenities that are essential to you. This could include a specific architectural style, a backyard, a garage, a swimming pool, or a specific layout. Differentiate between must-haves and nice-to-haves to help prioritize your search.
Condition and Renovation Potential: Consider whether you prefer a move-in ready home or if you’re open to doing renovations or updates. Assess your comfort level with potential repairs or remodeling projects and factor that into your search.
Resale Value: While it’s important to focus on your current needs, it’s also wise to consider the potential resale value of the property. Look for factors such as the neighborhood’s desirability, property appreciation trends, and any upcoming developments that may impact the value.
Lifestyle Factors: Think about your lifestyle and how the home will support it. Consider factors such as outdoor space, proximity to parks or recreational areas, access to amenities like gyms or shopping centers, and any specific requirements related to your hobbies or interests.
By evaluating and prioritizing your wants and needs, you can streamline your home search and make informed decisions. It is important to stay flexible and open to adjustments along the way, as your priorities may evolve during the process. Working with a knowledgeable real estate agent can also help you navigate your options and find a home that meets your criteria.
Selling a property on your own, also known as “For Sale By Owner” (FSBO), can be an appealing option for homeowners looking to save money on real estate agent commissions. However, it’s important to understand the costs involved in selling on your own, as they can add up and potentially outweigh the savings.
Marketing and Advertising: When selling on your own, you’ll need to invest in marketing and advertising your property. This can include professional photography, virtual tours, online listings, signage, brochures, and more. These costs can vary depending on the level of exposure you want for your property.
Time and Effort: Selling a property requires a significant amount of time and effort. As a FSBO seller, you’ll need to handle all aspects of the selling process, including scheduling and conducting showings, negotiating offers, managing paperwork, and coordinating with potential buyers. Consider the value of your time and whether it’s worth the savings to handle these tasks yourself.
Legal and Documentation: Selling a property involves various legal and documentation requirements. You may need to hire an attorney to review contracts, ensure compliance with local regulations, and handle any legal issues that may arise. These costs can vary depending on your location and specific needs.
Lack of Market Knowledge: Real estate agents have extensive knowledge of the local market, pricing trends, and comparable sales. Without this expertise, you may have difficulty setting the right listing price for your property, potentially leading to a longer time on the market or selling for less than its true value.
Negotiation Skills: Negotiating with buyers can be a challenging aspect of selling a property. Real estate agents are experienced negotiators who can help you get the best possible price and terms. Without this expertise, you may find it difficult to navigate negotiations effectively.
Limited Exposure: One of the main advantages of working with a real estate agent is the exposure they can provide through their network, online platforms, and marketing efforts. As a FSBO seller, you may have limited access to potential buyers, resulting in reduced demand and potentially a longer selling process.
It’s crucial to carefully consider these costs and potential challenges before deciding to sell on your own. While it’s possible to save on agent commissions, selling a property without professional assistance may not always be the most cost-effective or efficient option.
Here’s the scenario: Your house is on the market, and you have interested buyers, but they are concerned about the roof. Maybe your home has a bit of damage from the last storm, but it’s nothing major. Still, a potential buyer sends a roofer to check things out without your approval. Sending a professional to somehow inspect the condition of your home unannounced may seem a bit bold on the buyer’s part. Can a potential buyer send someone—be it a roofer, inspector, or contractor—to inspect a home or snoop around outside without the seller’s consent? Here’s what the experts have to say about this sticky situation.
Your rights as a homeowner
Whether or not you’re selling your home, you have certain rights as a property owner. These laws may vary by state, but generally, anyone coming onto your property without your permission could be considered a trespasser, in accordance with your local statutes. If a potential buyer (or an inspector hired by the buyer) wants to stop by and take a peek at your roof or anything else, written approval from the seller is required. Inspecting the house for purchase, formal inspections, and the steps for a resolution to those inspections should always be in writing. And all parties should have committed to and agreed to the inspections and their resolutions. The formality of inspections varies by state, but sellers have the right to approve or deny any inspection requests and resolutions to inspections.
Professionals should know not to trespass
Paul Ryll, a residential appraiser and co-founder of Oscar Mike Mobile Appraisals, won’t go anywhere near a property without permission. “By law, I am not allowed on the subject’s property without the owner of record’s permission, regardless of the type of appraisal assignment or who my client may be,” says Ryll. Appraisers and inspectors are responsible for confirming they have permission to be at a house—whether inside or out—with the homeowner.
What if you’re using a dual agent?
A dual agent is an agent that represents both the seller and the buyer in the same real estate transaction. In such a transaction, there may be concern about the dual agent representing both sides fairly. Could the dual agent send the buyer or an inspector to the house without the seller’s approval? The answer is no. A dual agent must follow the rules that govern home inspections. Having a dual agent has no bearing in this case as we all have to abide by the law. It’s always unlawful to enter a property without the property owner’s permission. If an inspector shows up on your doorstep with your agent—and you didn’t give the agent permission—it’s time to revisit your dual agency agreement. If you feel as though you are not receiving fiduciary care from your agent, you can always seek out help from your agent’s broker or the local real estate commission.
What about an inspection during a showing?
The low housing inventory, competitive seller’s market, and limited showings due to COVID-19 restrictions have prompted some buyers to forgo inspections to gain a competitive edge. But waiving an inspection could have costly implications for the buyer. Concerned Realtors and inspectors started working toward solutions that made sense for both sides of the transaction. One of those solutions was pre-offer inspections. Agents and inspectors often schedule 30-minute inspections within the time frame of a house showing. This offers insight into those big-ticket items for a buyer prior to writing an offer. Often, the inspector will credit the cost of that 30-minute inspection toward a full inspection after an offer is accepted. Still, an inspector can’t come to the showing with a buyer and nose around without permission. It’s a matter of coordinating between buyer and seller, but it does happen more often than you’d think. The buyer’s agent has to request a showing but note that it is for an inspection in the request.
With all of the listing sites available, browsing homes online can become addictive. Even if you’re not in the market to buy or sell a home, you may find yourself scanning the internet for homes that you do not intend to buy or are completely out of your price range. Not only does this help past the time, but it’s also an exhilarating pastime. But, instead of just simply perusing the web for a home, why not visit them? If you think you need a realtor to go to an open house or you have to be in the market to buy a home to attend, think again. Attending an open house can be a beneficial endeavor for your future home-buying experience. So before you discount the idea, here are a few things to consider.
Is it okay to attend an open house without a realtor?
You might be wondering, “Do I need a realtor to go to an open house?” The first thing that may deter you from going to an open house is that you think you need to go with an agent. While many buyer’s agents recommend booking with them ahead of time to visit a home, realtors are used to prospective buyers stopping by open houses all the time. An open house allows prospective buyers to see what’s available without any pressure to buy. So, if you’re not ready to partner with an agent, it’s completely okay to attend open houses alone.
Discover what you can afford
The homes you’re attracted to and what homes you can afford might be two completely different things. Often, first-time homebuyers don’t get a good idea of what they can afford until they are deep into the home-buying process. They might be searching for something that doesn’t even exist. Therefore, the sooner you can understand what types of homes are available within your price range, the better chance you have of successfully finding a home that matches your expectations and budget.
Visiting open houses can help you discover what you can and cannot afford. While you can type in a price range online, the photos and experience of visiting the home might be quite different from the listing. Getting up close and personal with homes that may interest you will give you a better idea of what to expect when you start the home-buying process. This way, you won’t be disappointed and discouraged when you start looking for your perfect home.
Check out the competition
The number of guests attending an open house can indicate how fast you need to make an offer when you find a home you’re interested in. It can also tell you how you need to price your home to have it sell quickly. While some housing markets can allow a few days to make a decision, others may only give you a few hours to submit your offer. If you pay close attention to the other buyers at the open house, you may gather some intel about what type of home buyer the seller is looking for. Even though this may not matter now since you don’t intend to purchase the home, it may help you later when you’re ready to submit an offer. The more information you can gather, the better you’ll be able to navigate your home-buying process.
See realtors in action
Even if you don’t identify the home of your dreams, you might be able to connect with a realtor who can help you find your dream home. Visiting open houses gives you the perfect opportunity to interview candidates, without them even knowing you are looking for an agent. This gives you the ability to see how different realtors represent their clients and if they might be suitable for your needs. Be aware of how the realtor interacts with you upon your arrival. Do they greet you, or are they too busy to give you the time of day? You should also come with insightful questions about the market to determine how knowledgeable the agent is.
Observe home design trends
Generally, sellers try to make a great first impression when hosting an open house. Some sellers may even make some updates or hire a staging company before they list their homes. Sellers tend to rely on the guidance of their realtor or the design trends happening within the market. Therefore, when you attend an open house, you can get an idea of what home designs you’ll see. It will give you an idea of what you’re attracted to and things you may look for when buying a home. Also, it may give you some inspiration for updates to your current home that will make it feel like new.
Get familiar with neighborhoods that interest you
Buying a home is about more than the property itself. It’s important to find a home and community that suits your lifestyle. For example, if you want to start a family, you may want to buy a home in a good school district with parks close by. Therefore, this is the perfect time to start learning about nearby communities that could be a match for your needs. You can begin by observing the residents and vibe of the communities you’re interested in a few months before you start the home buying process.
Learn more about your needs
Often, it’s challenging to know what you truly want in a property before you start searching for a home. For instance, how many bedrooms do you want? Are you okay with a first-floor master? What amenities are you looking for? Viewing other homes will give you an idea of different layouts and amenities that interest you.
The bottom line
Sure, you may feel nosey or that you’re intruding. However, regardless of whether you’re buying or selling a home, you should visit a few open houses. You don’t need to bring a realtor. Just hop in your car or take a walk down the street to get a better idea of what you can afford and what homes make sense for your lifestyle.
Why should you buy a home? Well, it’s hard to say without knowing a few details about your individual situation, but the below list will seek to cover some of the best reasons one might decide to become a homeowner.
10. It’s yours. Seems simple enough but think of the greater implications of that particular statement. If you want to paint zebra stripes on your wall, turn your garden shed into an Airbnb, or do laundry at 3 a.m., there will be no one to stop you. It’s your home. Your investment.
9. Personal Finance. Most first-time homebuyers are astounded to learn just how little money is truly needed to get to the closing table. There are so many different programs, loans, and services to help first-time buyers succeed in their goal of homeownership, without the need for the assets or equity that a seasoned buyer might have at their disposal. There’s also the cost of the monthly mortgage payment itself. Another shocking revelation for a lot of people is the fact that their mortgage payment is often comparable to or even less than a month’s rent. Plus, you’ll have the benefit of a fixed rate, so you don’t have to worry about a large increase in your monthly payment. Yes, you might have to cut the grass and you’ll be on the hook for repairs but any work or improvements you do to the home are likely to work in your favor on a resell. When you rent, you’re essentially making someone else’s mortgage payment. This means you get neither the risk nor the reward of ownership.
8. Its investment potential. We may have touched on this a little in the previous couple of paragraphs, but it bears repeating: when you make improvements to a property you own, you’re setting yourself up for a bigger payout down the line if you choose to rent out or sell. Whether you’re buying your primary residence, a potential rental, or a flip, there’s a lot of opportunity to build equity and personal wealth.
7. The market is right for it. There are simply times in history when buying is the absolute best decision you can make. Let’s look at interest rates for example. The average interest rate for a 30-year loan is hovering at around 7% right now. Yes, that’s higher than where things were this time last year. However, it’s still much lower than the historical high of just under 19%, in 1981. In the year 2000, they were at about 8.5%. Worst case scenario: pay your mortgage on time, build some equity, and carefully manage your consumer credit and you can always refinance for a lower percentage rate later on.
6. It’s the right time in your life. If you’ve been thinking about buying a home for some time, it feels right, and you have the means and support to do so, why not? Your local trusted REALTOR can help you address any lingering questions and concerns you may have. Even if you’re not ready to say, “yes,” why not see what’s available? You have nothing to lose.
5. You need more space. If you own your property, you won’t have to fight for a parking space or access to extra storage for items inconvenient to store in your unit like a bicycle, motorcycle, kayak, ladder, etc. Plus, if you’re marrying, taking a roommate, or expanding your family, you might need an extra bedroom or two. Find the home that best suits your needs while keeping your monthly expenses under budget.
4. It’s an experience. While it may seem irresponsible to make such a large purchase purely for the experience of doing so, you can certainly learn a lot from homeownership. If you’ve always wanted to try your hand at drywalling, stone masonry, carpeting, minor electrical and plumbing, painting, flooring, roofing, decking, or landscaping, there’s a good chance you’ll be getting acquainted with a little bit of all of it in your first home! The good news? You learn some new skills or at least enough to patch things up while waiting for the professionals to do a proper fix. Of course, if you get really good at something you can save money with a little old-fashioned DIY. Owning a home almost certainly guarantees a unique and rewarding experience.
3. Stability. Maybe you’re just tired of moving or you really want to settle down in one place and build a stable life. You might be tempted to relate homeownership to an anchor, keeping you held in place, but what if you want to be held in place? If you like the neighborhood, you like the town, or you just adore the house and you can see yourself living there when you’re 25 and when you’re 85, maybe it’s time to commit to it. No one really knows what life has waiting around the corner and there are always refinancing or selling options. However, if all things go according to plan and you can’t stand the thought of toting your vinyl record collection up another set of stairs, there’s nothing wrong with settling down.
2. The available support. There are a lot of great REALTORS and support tools out there to help you assess your homebuyer priorities. Sometimes, just speaking to the right person can be enough to help you make a decision one way or another. They’ll show you the ins and outs of homeownership and connect you with affiliates who provide services in financing, settlement, closing, and insurance. When you’re your own personal advocate, the process can feel tedious, daunting, and even impossible. Getting that critical support might be all it takes to change your mind about everything.
1. The market is coming back, big time. That’s right. Don’t let the unprecedented market fluctuations that have defined the post-Covid era deter you from achieving your goal of homeownership. It’s not 2021 anymore. Buyers began to hesitate as homes entered and left the market in hours with offers well above the asking price. What we’re seeing now is a market correction of sorts. Homebuyers are much more likely to have successful bids. If projections hold true, the market is going to take off toward the end of the year. Why wait until then when the competition is up again? If you’ve been thinking about making a move, the board is all yours.
Making the right offer is crucial when you have your eye on a home. Offer too little, and you may get passed over for the next buyer. Offer too much, and you may need to reevaluate your budget for furnishings or upgrades. This can be one of the most challenging parts of buying a new property. Want to make sure you have a strong offer at a price you can afford? Here’s what you might offer above, below, and at the listing price.
At List Price: A home that’s within your budget, move-in ready, and comes with all the amenities you want could be worth an offer at the listing price. But you’ll want to make sure there’s not much competition for the property.
Below List Price: Does the home need serious work? If so, you may want to offer below the selling price. In this case, bidding less money could free up cash for future repairs and necessary upgrades. You can also try a lower offer if there are tons of homes listed in your area (but little demand for them). Get in touch to learn about the properties for sale in your desired neighborhood.
Above List Price: You may want to go beyond the listing price if you’re in a particularly active market or you know you’re up against several buyers. Together, we can determine what other homes in the area are going for, and we’ll make sure your best offer aligns with those bids.
Ready for a new home (and don’t want to overspend)? Reach out today! Scott and Mary, real estate professionals can begin looking for a property that’s perfect for you and your family.
The National Association of Realtors (NAR) released its latest Existing Home Sales Report a few weeks ago. The information it contains on home prices may cause some confusion. NAR has reported the median sales price, while other home price indices report repeat sales prices. The vast majority of the repeat sales indices show prices are starting to appreciate again. But the median price reported may tell a different story.
Here’s why using the median home price as a gauge of what’s happening with home values isn’t ideal right now. According to the Center for Real Estate Studies at Wichita State University:
“The median sale price measures the ‘middle’ price of homes that sold, meaning that half of the homes sold for a higher price and half sold for less. While this is a good measure of the typical sale price, it is not very useful for measuring home price appreciation because it is affected by the ‘composition’ of homes that have sold.
For example, if more lower-priced homes have sold recently, the median sale price would decline (because the “middle” home is now a lower-priced home), even if the value of each individual home is rising.”
People buy homes based on their monthly mortgage payment, not the price of the house. When mortgage rates go up, they have to buy a less expensive home to keep the monthly expense affordable. More ‘less-expensive’ houses are selling right now, and that’s causing the median price to decline. But that doesn’t mean any single house lost value.
Even NAR, an organization that reports on median prices, acknowledges there are limitations to what this type of data can show you. NAR explains:
“Changes in the composition of sales can distort median price data.”
For clarification, here’s a simple explanation of the median value:
You have three coins in your pocket. Line them up in ascending value (lowest to highest).
If you have one nickel and two dimes, the median value of the coins (the middle one) in your pocket is ten cents.
If you have two nickels and one dime, the median value of the coins in your pocket is now five cents.
In both cases, a nickel is still worth five cents and a dime is still worth ten cents. The value of each coin didn’t change.
The same thing applies to today’s real estate market.
Bottom Line Actual home values are going up in most markets. The median value reported tomorrow might tell a different story. For a more in-depth understanding of home price movements, let’s connect.
Thinking about buying? Be sure to include these five items in your calculations. Homeownership may be a goal for some, but it’s not the right fit for many.
Renters account for 37 percent of all households in America — or just over 43.7 million homes, up more than 6.9 million since 2005. Even still, more than half of millennial and Gen Z renters consider buying, with 18 percent seriously considering it.
Both lifestyles afford their fair share of pros and cons. So, before you meet with a real estate agent, consider these five costs homeowners pay that renter do not — they could make you reconsider buying altogether.
1. Property taxes As long as you own a home, you will pay property taxes. The typical U.S. homeowner pays $2,110 per year in property taxes, meaning they are a significant — and ongoing — chunk of your budget. Factor this expense into the equation from the get-go to avoid surprises down the road. The property tax rates vary among states, so try a mortgage calculator to estimate costs in your area.
2. Homeowners Insurance Homeowners insurance protects you against losses and damage to your home caused by perils such as fires, storms, or burglary. It also covers legal costs if someone is injured in your home or on your property. Homeowners’ insurance is almost always required in order to get a home loan. It costs an average of $35 per month for every $100,000 of your home’s value. If you intend to purchase a condo, you’ll need a condo insurance policy — separate from traditional homeowner’s insurance — which costs an average of $100 to $400 a year.
3. Maintenance and repairs Don’t forget about those small repairs that you won’t be calling your landlord about anymore. Notice a tear in your window screen? Can’t get your toilet to stop running? What about those burned-out light bulbs in your hallway? You get the idea. Maintenance costs can add an additional $3,021 to the typical U.S. homeowner’s annual bill. Of course, this amount increases as your home ages. And don’t forget about repairs. Conventional water heaters last about a decade, with a new one costing you between $500 to $1,500 on average. Air conditioning units don’t typically last much longer than 15 years, and an asphalt shingle roof won’t serve you too well after 20 years.
4. HOA fees Sure, that monthly mortgage payment seems affordable, but don’t forget to take homeowners association (HOA) fees into account. On average, HOA fees cost anywhere from $200 to $400 per month. They usually fund perks like your fitness center, neighborhood landscaping, community pool, and other common areas. Such amenities are usually covered as a renter, but when you own your home, you’re paying for these luxuries on top of your mortgage payment.
5. Utilities When you’re renting, it’s common for your apartment or landlord to cover some costs. When you own your home, you’re in charge of covering it all — water, electricity, gas, internet, and cable. While many factors determine how much you’ll pay for utilities — like the size of your home and the climate you live in — the typical U.S. homeowner pays $2,953 in utility costs every year.
Ultimately, renting might be more cost-effective in the end, depending on your lifestyle, location, and financial situation. As long as you crunch the numbers and factor in these costs, you’ll make the right choice for your needs.
Pre-approved? Know what you can afford? That means it is time to start house hunting! The hunt for your dream home can stall quickly if you aren’t sure what your “dream” looks like.
It is easy to talk in generalities about wanting a “big” house or an “older” home, but in order to have a more specific real estate search, you must think specifically about the features you want or need. Will your “big” house be 2,400 square feet or 5,000? When you say “older” home, do you mean one built pre-1950, or pre-2000?
Before continuing on the search, sit down and make a list of your needs and wants — and yes, those are two different things. Think about the things that are needed (amount of bedrooms, yard space, garage, etc.) and the rest of the things that would be nice, but you probably could live without it (pool, etc.)
It is important to note that your lists will most likely change as you learn more about your housing options. Location, such as proximity to the beach, may start as a priority, but once you see the size of ocean-front homes in your price range, the drive to the beach may be more reasonable. Unless you have an unlimited or extremely flexible budget, there will probably need to be compromises along the way.
Below are tips and questions to help you figure out what you do and don’t like about your current home, so that you can find more comfort and pleasure in your dream home. Take the time to rank specific home features in lists such as “Must Have,” “Like to Have,” and “Don’t Care.”
Know your finances
Having your finances in order before house-hunting can make all the difference in a competitive market. Determining your budget and how much financial wiggle room you have can help clarify your must-haves.Ask yourself:
Are you pre-approved for a mortgage?
What’s your price range?
How much do you have saved for a down payment? What about future repairs?
Are you willing to do extra renovations or do you want a turnkey property?
Consider your current lifestyle and plan for the future
You may have the perfect home in mind, or you may not even know where to start when imagining your future place to live. It can help to consider your basic needs and non-negotiables in a home. Consider where you live now and what your favorite things are and what you need to change. Think about the following:
You need space for a future nursery or a home office
You need any special features for your pets like a fenced-in yard
You need wheelchair access or limited stairs
You need a space for a car or is street parking sufficient
Walkability is important to you
You plan on changing jobs in the next 1-2 years
Pick your preferred home style and type
Once the basics are figured out, the groundwork for determining what features you want in a house is easier. Consider the different types of houses on the market, the neighborhoods you would like, and think of keywords that can help narrow your search. Ask yourself these questions:
How many stories do you want?
Do you want to live in a townhouse, condo or single-family house?
Could you live in a historic home?
How many bedrooms?
How many bathrooms?
Want a guest room?
What type of flooring do you like?
What architectural styles do you like best?
What’s your favorite room, and what makes spending time there enjoyable?
If you have an outdoor space, do you enjoy spending time there?
Do you enjoy taking care of a yard or feel burdened by it?
Choose a location
Keep in mind that paint colors to refresh the home can be changed, extensions to increase your square footage can be added, but the location of the home can not be altered.
When finding your dream home, it is easy to get caught up in its features, but you should also consider your surroundings:
Do you prefer urban, suburban or rural?
What city do you want to live in?
Do you want easy access to highways or public transportation?
How important is the view?
Can you sleep easily with traffic noise?
Do you want to be involved in community activities?
Are there parks within walking or biking distance?
Do the property taxes and/or HOA fees fit your budget?
Get to know the neighborhood
Think you have found the perfect home in the perfect area? Before buying, it’s still always a good idea to explore the neighborhood and ask yourself the following:
Are you happy with your neighborhood?
Are there enough activities going on around you — or too many?
Are you happy with your commute?
Do you have to travel far for basics such as groceries or a doctor’s appointment?
Document your visit
When it’s time to take your home tour, check the features against the checklist you made. Do you need to re-evaluate any of your must-haves? Get a feel for the home and consider anything you may have left off of your list. Remember, paint can be replaced and staged furniture will change, but there are aspects that can’t change so easily.
Is there enough space or too much space?
Where could you use more space?
How would you describe the layout?
Do you like the fixtures and finishes?
Are you happy with the windows (enough natural light, well-placed, too sunny)?
Does the home have curb appeal?
Does the home have adequate parking?
Once you know what you are looking for in a home, you will be ready to find the right agent to partner with for your search. Identifying your priorities will help you find the perfect property. Happy house hunting!
You probably know that home inspections are often part of the homebuying process. But do you know why they’re so important — or what they mean for your home purchase or sale? Home inspections can play a big role in whether your homebuying (or selling) efforts are successful. Are you hoping to buy or sell a house soon? Here’s what you should know about how a home inspection might impact your goals.
Inspections are not required. A home inspection is generally encouraged for buyers, but it’s not required. In a hot market, buyers might waive their right to an inspection to win a bidding war. But be careful: This could hurt you financially if you find yourself having to make large repairs and renovations.
The results can influence your deal — and your price. If the inspector finds issues, the buyer will often want to renegotiate. They might ask the seller to make repairs before closing or offer a lower price point to account for them. If they have an inspection contingency, a buyer can even pull out of the deal without losing earnest money.
You have to pay for an inspection. Home inspection costs vary by market and inspector, but they typically cost between $250 and $500 per property. Since the inspection is for the buyer’s benefit, they cover this cost out of pocket, usually as part of the closing costs.
Sellers sometimes get pre-listing inspections. By getting one before the home hits the market, sellers can identify any problems that could hold back their sale. In many cases, sellers are required to disclose any issues their inspector finds if they haven’t been fixed.
If you’re preparing to buy or sell a home, get in touch today to start working with an experienced real estate professional.
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