Monday, January 28, 2013

What to Expect at Your Property Inspection...

If you’re a  first time buyer who just nabbed your first place, you’re likely in one of the scarier places in the real estate transaction  After weeks or months of looking, your new home is becoming a reality.

But before you can pick out the paint colors and decide how you’ll redo the basement, the property needs to be inspected.

A property inspection  is one of the most important parts of the purchasing process, yet many buyers don’t know what to expect from the various players involved. Here’s a guide to the roles and responsibilities each of the players has during a typical property inspection.

You, the buyer
You’re there to learn as much about the  about the property as possible. But you should have already done your homework before the big day.

Prior to the inspection, review the seller’s property disclosures and know up front what questions you have for the inspector. Things may have come up during the marketing or during a walk-through that concerned you. Or maybe the seller disclosed that some unpermitted work was done in the basement years ago. Before you release your inspection contingency, know exactly what you’re getting into and that there aren’t any surprises down the road.

Block out a few hours on the day of the inspection, depending on the size of the home. Nearly everyone from the transaction will be present, and these few hours can be critical. Most inspections go smoothly, but some can be the beginning of tough negotiations.

The buyer’s agent
Your agent should be standing by your side to walk you through the inspection. Good agents have been through dozens of inspections and know how they work. They should have basic knowledge of what to look for. Most importantly, they know what’s important and what matters in the big picture. If you’re getting a really good price on the home, your agent would likely advise you not to bother the seller for small fixes. If you’re paying top dollar and discover serious flaws, your agent can guide you on how to best proceed after the inspection.

The listing agent
For many reasons, the seller won’t be present during the inspection. But the seller's listing agent will be front and center as the eyes and ears of the property inspection.

By this point, the listing agent should be familiar with the property and is there to address anything that comes up. For the seller and the listing agent, the inspection is one of the last hurdles to get through and a big unknown. Issues, questions or concerns could arise during the inspection, which could kill the sale or affect the property’s value.

That’s why many agents advise sellers to get a property inspection before going on the market, to prevent any last-minute unknowns or red flags.

Sometimes, it seems as though the listing agent is there to “defend” the property against the buyer, her agent and their chosen inspector. Some feel the inspection is a “three against one” situation. It shouldn’t be.

Though the listing agent is there to be an advocate for the seller, everyone should come with the same goal in mind: to facilitate a clean sales transaction.

The inspector
As the buyer, you hire the property inspector, who should be licensed by the state. You sign an agreement with and pay the inspector. Most buyers get a referral for an inspector from their real estate agent.

The inspector is not a contractor, though some inspectors were contractors in their previous careers. While they may be able to shed light on what you can or can’t do to a property and its potential costs, their main purpose is to inspect the property, its systems and the overall state of the home.
A good inspector will remain impartial and not be an alarmist, though they will point out things to be addressed. The inspector isn’t a part of the transaction and shouldn’t get into the nitty-gritty of your deal, nor would they want to.

The inspector should look around, make notes and provide you with a detailed report as well as some feedback on future maintenance. Be sure to walk through the property with the inspector. Whenever possible, go where the inspector goes. Get on the roof, go into the basement, venture into the crawlspace. It will be helpful for the inspector to point things out to you in real-time and demonstrate where the systems are and how they work. Also, some things are better understood in person than read about in a report later.

Your Uncle Bob
Finally, it’s important to understand why having Uncle Bob on hand during the inspection isn’t necessarily a good idea. While it may seem logical to bring a relative or close friend who is a contractor, be mindful that these people aren’t licensed property inspectors. Sometimes, the most well-intended people can end up causing harmful consequences. Uncle Bob may feel it’s important to point out as many negative things as possible, just to seem helpful. He’s far from impartial, however, and you run the risk of raising red flags when they don’t need to be.

Time for a huddle
After the inspection, you and your agent will likely huddle to talk about what went on and to strategize next steps. Hopefully, the inspection was flawless and you are one step closer to picking out your new paint colors.

Or some additional negotiations may be needed after the inspection.

Either way, it helps to know what to expect going in and to be prepared for anything.


Monday, January 21, 2013

Glossary of Words You Should Know When Buying a Home

The contracts involved in the sale and purchase of a home can be quite complicated and confusing.  Even when discussing a home purchase, many buyers (not just first-time home buyers) aren't really sure what a certain term means.

Here is a great website that allows you to check those terms - be sure before you sign!

Click here for the glossary of terms.

For a free Home Buyer's Toolkit or to chat about real estate, please contact me today.

Monday, January 14, 2013

Homes Get More High Tech - What Will Your Next Home Have?

 Will homes soon be powered and operated all from a smartphone?


A range of home devices could soon all be controlled by a phone or tablet, from kitchen appliances to washers and dryers, lights, pools, and windows, says tech experts.

Major tech companies like Apple, Microsoft, Google, and Samsung are eyeing home technology as a booming business and are introducing a range of products for wired and automated homes. For example in May, Microsoft debuted an operating system for homes, called HomeOS, that connects smartphones, game consoles, wireless routers, home-automation devices, tablets, and security cameras, all for easier access, sharing files, and syncing.

The attention to wired homes also is causing architects to take a closer look at how they design and build homes so that they can better incorporate the new gadgets, blending them into kitchens, living rooms, and bedrooms. For example, entertainment centers need sound systems and screens within walls, and architect Tom Kinslow notes that smart windows are larger than traditional windows.

A range of products are being developed to outfit these high-tech homes. For example, flexible displays built into kitchen appliances will be able to tell home owners the proper temperature to cook an item at or even whether something has spoiled in the refrigerator. Bossa Nova Robotics is even developing a robot maid that will be able to complete house chores while home owners are away at work.

 Check out a great article by clicking this link Welcome to the Home of the Future

Friday, January 11, 2013

10 of the Most Expensive Homes from Around the World


Want to see how the rich and famous live?  Here is a slideshow and description of 10 of some of the most expensive homes from around the world!


http://blog.coldwellbanker.com/slideshow-10-most-expensive-trophy-homes-around-the-globe/

5 Advantages to Buying a House in the Winter

 


There are advantages to buying a home in the winter

IMG_1140 icy guttersHere’s some advantages to buying a home from November to March.

1. Less competition …. There is less competition from other buyers. Many buyers don’t want to brave the cold and icy roads by driving the neighborhoods and looking for properties during this time of the year. This can translate into lower prices and better deals.

2. Prices decline …. Prices are typically less this time of the year because of the downward pressure on home prices due to the inbalance of supply and demand,

3. More time from your Realtor….. Your real estate agent isn’t as busy this time of the year, you may get more of their time and expertise.

4. Not as many properties are receiving multiple offers …. During last year many houses in Kitchener -Waterloo that were priced correctly had multiple offers on them, which translated into higher prices for the seller. All great news for sellers, not such great news for buyers. There is an emotional trigger than happens in multiple offers, and buyers can sometime offer more for the house than they had originally planned on.

5. Ugly Ducklings….. Some houses that are still on the market in December and January may have been on the market for a long time. This could be for a variety of reason, including that the home has been priced incorrectly. Or it could just be that the property doesn’t show well, it’s an ugly duckling. Maybe it’s too crowded with personal belongings, maybe the interior paint color is horrible, maybe the lighting is bad, or maybe the home is dirty. All of these are easy things to fix once you own the property, and if you can look through these items, you may be able to get an ever better deal.

Contact me today if you are thinking of buying or selling and let my experience and knowledge help you!

Tuesday, January 8, 2013

7 Simple Steps to Save on Energy Costs at Home

Saving money on energy costs is always a good investment. With the start of the New Year and Winter, it is that time of year when families must determine how much they want to spend on energy costs. There are, however, some simple tricks to cut costs while turning up the heat.

1. Turn off unused electronics: Everyone has heard our Mom or Dad tell us to turn off something when we are done with it. This still holds true today. When you leave a room, turn off the light. When you go to bed, close your laptop. If you go on vacation, it might be a good idea to disconnect the garage door opener.

2. Use power strips: Simply having appliances plugged in drains energy, so when possible, plug as many electronics into power strips as you can. When those items are not in use, easily switch them off by using the switch on the power strip.

3. Unplug chargers: Many houses have multiple devices that require charging. From laptops to tablets to smartphones, chances are that on any given day one could have a few items charging at once. When the device is fully charged, unplug it. Even though it is charged it still uses energy from the outlet.

4. Invest in a power monitor: Having a power monitor is a good idea for any home. It tells you how much energy you are using, and which household items are draining the most power. By knowing where large amounts of your bill are going, you can adjust your usage accordingly.

5. Use appliance programs: A lot of new household items have self-regulation options. Take advantage of them. This can range from power management options on a computer to programming setting for heat or air conditioning. Many appliances have some form of power-saving settings, and it is beneficial to utilize them.

6. Be smart in choosing light bulbs: Light bulbs have changed a lot the past few years. LED bulbs and compact fluorescents are much easier on power than older bulbs. They are also inexpensive, so there are multiple benefits to updating your light bulb inventory.

7. Use cold water in washing machines: A cold wash will keep clothes just as clean and uses less energy than hot water. Another fun fact: Hot water can make colors run and helps stains set, crises avoided!

Thursday, January 3, 2013

The Top 5 Mistakes Buyers Make

 

So you're ready to meet the challenge of buying a new home? With some common-sense planning, you can avoid these five common buyer mistakes and steer yourself towards success:

1. Impulse buying. In order to skip this mistake, do some serious research on your specific needs. For example, how do the local schools rate? Are there parks or recreation facilities that fit your needs? Can you tolerate the traffic? Is there sufficient shopping? In other words, rate areas in terms of what is important to you personally. You might find your "dream house" only to discover that resales are terrible, the schools are abysmal, traffic is a nightmare, or that aircraft patterns go right over the front yard. Bottom line – make your dream home earn its stripes. Before you commit to a long term relationship, make certain you are compatible.

2. Not setting any limits. Don't make the classic mistake of buying into more than you can afford. Needless to say, your first responsibility is to pay for your mortgage, taxes, and insurance. If you're set on upgrades or remodeling, can you fit them into your budget? What about furnishings? Can you afford the extra furniture for those extra bedrooms or for that huge new living room? And what about utilities? Those cathedral ceilings are breathtaking, but have you considered the additional energy costs?

3. Not getting pre-approved for a mortgage. Speaking of monthly payments, most experts consider it crucial for buyers to seek pre-approval from a lender before even looking to purchase. While pre-approval does not necessarily mean you are approved for a loan, at the very least it establishes precisely what you can afford. Once you're armed with that information, you can avoid the heartbreak of finding the perfect home only to discover that it's beyond your reach. In addition, pre-approval substantially improves your status as a buyer in the eyes of a seller.

4. Not working with professionals. So, you've found a lender. Now you need to complete your professional support team. Too many buyers believe they can do this on their own, and they disregard professional input. Avoid a nightmare later by assembling a group of professionals who will suit your needs, represent you, and whose expertise you respect. Begin your search with a buyer's agent. Resist the urge to call the number on the For Sale sign. The seller's agent works for the seller. You need an agent who will work on your behalf and negotiate with your interests in mind. Will you need a real estate attorney? It's a good idea to find a suitable lawyer as your search begins, rather than in the midst of it. To say that real estate documents are confusing is an understatement. A real estate attorney is best suited to protect you from unexpected terms or surprises when it's time to sign on the dotted line. And what about a home inspector? Which brings us to the next mistake…

5. Cutting corners on the home inspection. Some lenders require a home appraisal before they will approve a loan, but the bank generally pays for only an appraisal of value to make sure the home is worth at least what they are lending. Buyers are wise to pay for more thorough inspections to include roof integrity, sewage or leaks. A minor investment with your own inspector is a small price to pay in exchange for enormous deficiencies later.

Ultimately, with smart planning and a realistic approach to home buying, you really can enjoy the dream of owning your perfect home.
 
Please contact me today for a free Home Buyer's Toolkit!

Wednesday, January 2, 2013

10 Ways to Boost Your Home's Resale Value

With real estate prices not appreciating at a pace they used to, it's only natural for homeowners preparing to sell to be thinking of ways to up their home's value. But it simply doesn't make sense to throw money into a big remodeling project that won't end up netting a higher sale price in the end. What's a homeowner to do?

Learn what buyers want, then start early (so you can enjoy your hard work before you sell) and small (to avoid excessive spending) for the best possible results. These 10 home improvement projects make smart use of your time and resources.
 
 
1. Hire a pro. Consider hiring a pro to take a look at your home and offer advice. One morning spent with a home inspector, a real estate agent or a local designer can give you insight into what potential buyers will see when they look at your home — and can save you money in the long run.

 
 
2. Invest early in landscaping. A beautifully landscaped yard with gorgeous, mature shade trees can be a big selling point, but you'll need to allow for at least several years of growth to make the most of your investment. Make planting a priority early on, and be sure to seek out expert advice on the proper placement and care of your trees and yard.

 
 
3. Power wash paths and siding. Giving your home's exterior and paved areas a power wash can be nearly as dramatic as repainting, for a much lower cost. Rent a machine from your local hardware store if you don't have one.

4. Maintain green lawns. Sad, neglected lawns are a major turnoff to potential buyers. Maintaining a healthy lawn from the beginning with regular care is the least expensive route, though laying new sod can be worth the dramatic improvement in curb appeal if you don't have time to start from seed.
 
 
5. Upgrade exterior doors. Curb appeal will help sell your house; it's as simple as that. And the way your home looks from the outside depends a lot on the condition of your front door (and the garage door, if it's visible from the street).
 
 
6. Remove eyesores. Outdated wallpaper, tacky light fixtures, stained carpets and popcorn ceilings are all good candidates for updating. The replacements need not be high-end; just think clean, simple and contemporary.
 
 
7. Minor kitchen renovations bank the biggest return. If your kitchen is fairly current, you may want to leave it alone — remodeling a kitchen comes with a hefty cost, and you may only be able to recoup around 65 percent of your investment. Smaller updates such as painting or refinishing cabinets that are still in good shape, or upgrading to Energy Star appliances, can refresh your kitchen's look at a fraction of the cost.
 
 
8. French doors add more than light. If you are looking for a special feature to add to your home, consider replacing a door or several windows with French doors. Not only will they let in more light, but the open feel they provide makes the whole space feel larger. Plus, they make for a romantic addition to your home's sale ad. "French doors leading to the garden" — now that has a nice ring to it!
 
 
9. Choose current paint colors. A fresh, crisp paint job in modern neutrals like gray and putty shows off your home to best advantage. Don't feel you have to avoid all color; just be aware that the bolder your choice, the more likely it is that it won't agree with someone. An overly bright or badly chipped exterior paint color may need refreshing too, so don't stop with the indoors.
 
10. Build in extra storage. Another great investment is to add built-in shelving or cabinets in halls, garages or anywhere you have the space. Buyers love seeing great storage, so this can add a lot of appeal — and if you are able to do some of the work yourself, you can keep costs reasonable.
 
Contact me today to discuss your home's value or the local real estate market in general.