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Friday, September 27, 2013
Wednesday, September 25, 2013
What is a home inspection?
What Is A Buyer's Home Inspection?
It is a visual inspection of the structure and components of a home to find items that are not performing correctly or items that are unsafe. If a problem or a symptom of a problem is found the home inspector will include a description of the problem in a written report and may recommend further evaluation. Before you close, you need to consider whether or not repairs are needed now and who's going to pay for them.
Why is a home inspection important?
Emotion often affects the buyer and makes it hard to imagine any problems with their new home. A buyer needs a home inspection to find out all the problems possible with the home before moving in. Once your inspection is performed, do not wait on the agent to assist you. Review the inspection and make a list of items you think the seller should address and present them to the agent in a timely manner. While the inspection is not meant to be a tool for re-negotiations, many times it becomes one. Don't let your brother or uncle or a friend do it. You are not saving any money by letting a friend look. Even if he is a contractor, it does not mean that he is a good inspector. You need a qualified, unbiased inspection, so when the inspector does find problems, they won't be easily minimized by the other parties because your uncle or friend did the inspection. Search for a professional that uses HomeGauge Services. Find a Home Inspector.
What if the report reveals problems?
All homes (even new construction) have problems. Every problem has a solution. Solutions vary from a simple fix of the component to adjusting the purchase price. If the inspector recommends further inspection by a qualified person, this means that you need to get an opinion by a qualified person before your inspection time period runs out on your real estate contract.
What does a home inspection include?
A home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing, electrical systems, roof, attic, visible insulation, walls, ceilings, floors, windows, doors, foundation, basement, and visible structure. Many inspectors will also offer additional services not included in a typical home inspection, such as mold testing, radon testing, water testing, thermal imagery and heat/air loss inspections typically known as energy audits, without the diagnostics.
What should I NOT expect from a home inspection?
A home inspection is not protection against future failures. Stuff happens! Components like air conditioners and heat systems can and will break down. A home inspection attempts to reveal the condition of the component at the time the component was inspected. For protection from future failure you may want to consider a home warranty.
A home inspection is not an appraisal that determines the value of a home. Nor will a home inspector tell you if you should buy this home or what to pay for this home.
A home inspection is not a code inspection, which verifies local building code compliance. A home inspector will not pass or fail a house. Homes built before code revisions are not obligated to comply with the code for homes built today. Home inspectors will report findings when it comes to safety concerns that may be in the current code such as ungrounded outlets above sinks. A home inspector thinks "Safety" not "Code" when performing a home inspection.
Should I attend the home inspection?
It is often helpful to be there so the home inspector can explain in person and answer any questions you may have. This is an excellent way to learn about your new home even if no problems are found. But be sure to give the home inspector time and space to concentrate and focus so he can do the best job possible for you.
What is a Home Warranty?
A home warranty does protect you against components that fail in the future. You may have to pay a deductible (service call fee) when you have a problem. If you choose to have a warranty, be sure and qualify coverage of your problem over the phone with the warranty company before they send a repairman. If you do not, you may find out that your problem is not covered and you still must pay the deductible or trip service fee. If you have a home inspection and you know your furnace or another major component is old, you may be better off to buy a warranty before you purchase. We recommend you look closely at what is NOT covered in warranty company policies as you compare prices.
Some inspectors offer a 90 day warranty and some agents offer a year warranty. Are they the same?
No, they are different. The 90 day warranty will cover certain items for up to 90 days after the inspection is performed. It is a limited warranty they may help you with certain items that fail shortly after a home inspection. The annual warranty is much more comprehensive and while it does cover more, be sure and read what is covered and what is the deductible, etc.
It is a visual inspection of the structure and components of a home to find items that are not performing correctly or items that are unsafe. If a problem or a symptom of a problem is found the home inspector will include a description of the problem in a written report and may recommend further evaluation. Before you close, you need to consider whether or not repairs are needed now and who's going to pay for them.
Why is a home inspection important?
Emotion often affects the buyer and makes it hard to imagine any problems with their new home. A buyer needs a home inspection to find out all the problems possible with the home before moving in. Once your inspection is performed, do not wait on the agent to assist you. Review the inspection and make a list of items you think the seller should address and present them to the agent in a timely manner. While the inspection is not meant to be a tool for re-negotiations, many times it becomes one. Don't let your brother or uncle or a friend do it. You are not saving any money by letting a friend look. Even if he is a contractor, it does not mean that he is a good inspector. You need a qualified, unbiased inspection, so when the inspector does find problems, they won't be easily minimized by the other parties because your uncle or friend did the inspection. Search for a professional that uses HomeGauge Services. Find a Home Inspector.
What if the report reveals problems?
All homes (even new construction) have problems. Every problem has a solution. Solutions vary from a simple fix of the component to adjusting the purchase price. If the inspector recommends further inspection by a qualified person, this means that you need to get an opinion by a qualified person before your inspection time period runs out on your real estate contract.
What does a home inspection include?
A home inspector's report will review the condition of the home's heating system, central air conditioning system (temperature permitting), interior plumbing, electrical systems, roof, attic, visible insulation, walls, ceilings, floors, windows, doors, foundation, basement, and visible structure. Many inspectors will also offer additional services not included in a typical home inspection, such as mold testing, radon testing, water testing, thermal imagery and heat/air loss inspections typically known as energy audits, without the diagnostics.
What should I NOT expect from a home inspection?
A home inspection is not protection against future failures. Stuff happens! Components like air conditioners and heat systems can and will break down. A home inspection attempts to reveal the condition of the component at the time the component was inspected. For protection from future failure you may want to consider a home warranty.
A home inspection is not an appraisal that determines the value of a home. Nor will a home inspector tell you if you should buy this home or what to pay for this home.
A home inspection is not a code inspection, which verifies local building code compliance. A home inspector will not pass or fail a house. Homes built before code revisions are not obligated to comply with the code for homes built today. Home inspectors will report findings when it comes to safety concerns that may be in the current code such as ungrounded outlets above sinks. A home inspector thinks "Safety" not "Code" when performing a home inspection.
Should I attend the home inspection?
It is often helpful to be there so the home inspector can explain in person and answer any questions you may have. This is an excellent way to learn about your new home even if no problems are found. But be sure to give the home inspector time and space to concentrate and focus so he can do the best job possible for you.
What is a Home Warranty?
A home warranty does protect you against components that fail in the future. You may have to pay a deductible (service call fee) when you have a problem. If you choose to have a warranty, be sure and qualify coverage of your problem over the phone with the warranty company before they send a repairman. If you do not, you may find out that your problem is not covered and you still must pay the deductible or trip service fee. If you have a home inspection and you know your furnace or another major component is old, you may be better off to buy a warranty before you purchase. We recommend you look closely at what is NOT covered in warranty company policies as you compare prices.
Some inspectors offer a 90 day warranty and some agents offer a year warranty. Are they the same?
No, they are different. The 90 day warranty will cover certain items for up to 90 days after the inspection is performed. It is a limited warranty they may help you with certain items that fail shortly after a home inspection. The annual warranty is much more comprehensive and while it does cover more, be sure and read what is covered and what is the deductible, etc.
Monday, September 23, 2013
4 Tips for Finding the Best Home Inspector
Buying a house is the biggest purchase you'll likely ever make. That's why you want the best possible home inspector in your corner to tell you whether that cute Colonial is your dream home … or a lemon with a rotting foundation, termites and a shaky chimney.
But first, how do you know if an inspector is rock-solid? There's a lot riding on the person you choose, after all. "You've got one shot at having the home looked at by a professional who has a professional eye and professional training to find defects," says Jim Turner, certified home inspector in Southern California.
We've grilled the experts for their top tips on how to find and vet a home inspector.
A messy frontier
There are 20,000 to 30,000 home inspectors nationwide today, estimates Turner, who is also president of the 20-year-old National Association of Home Inspectors, which has about 1,500 members. He says many inspectors were lured into the business by promises of easy money. No wonder would-be homeowners have trouble knowing whom to trust.
Unfortunately, only about half of states require any kind of certification or licensing for home inspectors. "For example, in New Mexico, there are no requirements to being a home inspector," says inspector Bill Richardson, owner of Albuquerque's Responsive Inspections and president-elect of the American Society of Home Inspectors. "You can just hang your shingle and go for it."
What's your home worth?
However, Turner adds, "Licensing doesn't solve problems with the industry." He points out that after licensing was instituted in Texas, the number of inspectors jumped several fold, as would-be inspectors signed up to benefit from the glow of respectability that a state license would give them – whether or not they actually deserved respectability, Turner says.
Tip No. 1: Don't trust an inspector simply because he or she has a state license or certification. All states that issue licenses require training, "but the training may be so minimal that it is ineffective," Turner says.
So now what? Well, move on to Lesson No. 2.
Tip No. 2: Look for an inspector who is associated with a professional inspection organization. This can help weed out the truly fly-by-night inspectors, but it won't catch all the bad actors. There is an alphabet soup of such groups, with wildly varying criteria for membership. In one, "you can send them a $60 check and you'll be a member," says Mike Kuhn, a New Jersey home inspector and co-author of "The Pocket Idiot's Guide to Home Inspections."
Look for affiliation with groups such as NAHI, the National Institute of Building Inspectors, and the American Society of Home Inspectors. These are some of the most reputable inspector associations, and their Web sites have a "find an inspector" service to locate a member in your area.
You can also study several home inspection organizations' criteria for membership: how many homes a would-be member must have inspected; how much — if any — continuing education is required; whether an exam is required for admission, etc. Each is a little different. Inspectors who are fully certified by ASHI, the nation's oldest such group, with 5,700 members, are required to have completed at least 250 paid professional home inspections and passed two written exams, for example.
Professional Services
Find local plumbers, electricians, contractors and more.
Tip No. 3: Don't just take your agent's recommendation at face value. Real-estate agents often recommend inspectors to home buyers. But that arrangement doesn't necessarily serve the home buyer well, since both agent and inspector have a financial incentive for things to go well: for the agent, a commission, and for the inspector, the possibility of repeat business from the agent. "Every single day we walk a razor's edge with that conflict of interest," Turner acknowledges. He adds, though, that "the good Realtors are going to recommend an inspector who's not going to be afraid of what he calls out."
Still, experts suggest some ways to make sure your interests are served:
Don't be monogamous. Get more than one suggestion from your real-estate agent. Turner suggests asking for three inspectors' names. Richardson says to ask for five.
Ask the tough questions. "Ask the agent flat out, 'Would you hire any of these to inspect your home, or your family's home?'" Turner says. "It kind of puts them on the spot." Also, ask the agent or others you know, "Who's the deal-killer in this area?" advises Ilona Bray, co-author of "Nolo's Essential Guide to Buying Your First Home." In other words, who's the crusty inspector with a reputation for mucking up deals because he finds all of a home's flaws. That's who you want.
Tip No. 4: Grill him. Once you've got an inspector in your sights, start sniffing around his résumé and asking questions. "We have a phrase: 'Inspect the inspector,'" Kuhn says.
Here's what to do:
Check for complaints. If your state licenses inspectors, call the licensing board, or whatever body oversees them (in Texas it is the real-estate board), and ask if the inspector is active and up-to-date. Also, "ask if there are any complaints against the inspector," Turner suggests.
Call the professional association to which the inspector belongs and do the same, though Turner concedes that these organizations don't see that many complaints – "maybe a dozen a year." The local Better Business Bureau could also be worth a call.
But first, how do you know if an inspector is rock-solid? There's a lot riding on the person you choose, after all. "You've got one shot at having the home looked at by a professional who has a professional eye and professional training to find defects," says Jim Turner, certified home inspector in Southern California.
We've grilled the experts for their top tips on how to find and vet a home inspector.
A messy frontier
There are 20,000 to 30,000 home inspectors nationwide today, estimates Turner, who is also president of the 20-year-old National Association of Home Inspectors, which has about 1,500 members. He says many inspectors were lured into the business by promises of easy money. No wonder would-be homeowners have trouble knowing whom to trust.
Unfortunately, only about half of states require any kind of certification or licensing for home inspectors. "For example, in New Mexico, there are no requirements to being a home inspector," says inspector Bill Richardson, owner of Albuquerque's Responsive Inspections and president-elect of the American Society of Home Inspectors. "You can just hang your shingle and go for it."
What's your home worth?
However, Turner adds, "Licensing doesn't solve problems with the industry." He points out that after licensing was instituted in Texas, the number of inspectors jumped several fold, as would-be inspectors signed up to benefit from the glow of respectability that a state license would give them – whether or not they actually deserved respectability, Turner says.
Tip No. 1: Don't trust an inspector simply because he or she has a state license or certification. All states that issue licenses require training, "but the training may be so minimal that it is ineffective," Turner says.
So now what? Well, move on to Lesson No. 2.
Tip No. 2: Look for an inspector who is associated with a professional inspection organization. This can help weed out the truly fly-by-night inspectors, but it won't catch all the bad actors. There is an alphabet soup of such groups, with wildly varying criteria for membership. In one, "you can send them a $60 check and you'll be a member," says Mike Kuhn, a New Jersey home inspector and co-author of "The Pocket Idiot's Guide to Home Inspections."
Look for affiliation with groups such as NAHI, the National Institute of Building Inspectors, and the American Society of Home Inspectors. These are some of the most reputable inspector associations, and their Web sites have a "find an inspector" service to locate a member in your area.
You can also study several home inspection organizations' criteria for membership: how many homes a would-be member must have inspected; how much — if any — continuing education is required; whether an exam is required for admission, etc. Each is a little different. Inspectors who are fully certified by ASHI, the nation's oldest such group, with 5,700 members, are required to have completed at least 250 paid professional home inspections and passed two written exams, for example.
Professional Services
Find local plumbers, electricians, contractors and more.
Tip No. 3: Don't just take your agent's recommendation at face value. Real-estate agents often recommend inspectors to home buyers. But that arrangement doesn't necessarily serve the home buyer well, since both agent and inspector have a financial incentive for things to go well: for the agent, a commission, and for the inspector, the possibility of repeat business from the agent. "Every single day we walk a razor's edge with that conflict of interest," Turner acknowledges. He adds, though, that "the good Realtors are going to recommend an inspector who's not going to be afraid of what he calls out."
Still, experts suggest some ways to make sure your interests are served:
Don't be monogamous. Get more than one suggestion from your real-estate agent. Turner suggests asking for three inspectors' names. Richardson says to ask for five.
Ask the tough questions. "Ask the agent flat out, 'Would you hire any of these to inspect your home, or your family's home?'" Turner says. "It kind of puts them on the spot." Also, ask the agent or others you know, "Who's the deal-killer in this area?" advises Ilona Bray, co-author of "Nolo's Essential Guide to Buying Your First Home." In other words, who's the crusty inspector with a reputation for mucking up deals because he finds all of a home's flaws. That's who you want.
Tip No. 4: Grill him. Once you've got an inspector in your sights, start sniffing around his résumé and asking questions. "We have a phrase: 'Inspect the inspector,'" Kuhn says.
Here's what to do:
Check for complaints. If your state licenses inspectors, call the licensing board, or whatever body oversees them (in Texas it is the real-estate board), and ask if the inspector is active and up-to-date. Also, "ask if there are any complaints against the inspector," Turner suggests.
Call the professional association to which the inspector belongs and do the same, though Turner concedes that these organizations don't see that many complaints – "maybe a dozen a year." The local Better Business Bureau could also be worth a call.
Tuesday, September 10, 2013
Plumbing inspections
Plumber of the Year...
2013 PLUMBER OF THE YEAR AWARDS - FINALISTS
How does this even get past the planning phase?
&%$@#
Hmmmmm…
Should have measured twice!
Apparently, you don’t want anyone seeing your face,
but everything else is okay? 
The oak seat is a nice touch, though.
And the purpose for the door is?
This stall is for people that have arms like an Orangutan..
This would be the “half bath” noted in the real estate listing?
Very Classy! And, only three steps when you’re in a hurry!
(Drum roll…)
AND THE PLUMBER OF THE YEAR AWARD GOES TO…
Brilliant…
|
Wednesday, August 28, 2013
Top 8 things you need to know when buying a home
Tips for buying a house
1. Don't buy if you can't stay put.
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.
2. Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
4. If you can't put down the usual 20 percent, you may still qualify for a loan.
There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a small down payment.
5. Buy in a district with good schools.
In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.
6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.
7. Choose carefully between points and rate.
When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.
8. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.
Saturday, August 24, 2013
Top 10 Reasons to get a Home Inspection
After your offer to buy a home enters into contract, the process of near-endless check writing begins. There are many necessary costs, such as realtor and lawyer fees, and the total of these expenses may have you looking for ways to save money elsewhere. You may be tempted to skip the home inspection and its $200 to $500 invoice, but there are 10 good reasons why you should get one.
1. It Provides an "Out"
A quality home inspection can reveal critical information about the condition of a home and its systems. This makes the buyer aware of what costs, repairs and maintenance the home may require immediately, and over time. If a buyer isn't comfortable with the findings of the home inspection, it usually presents one last opportunity to back out of the offer to buy. (This step is important when purchasing a property because it may save you thousands. For more, see Do You Need A Home Inspection?)
2. Safety
A home inspection can detect safety issues like radon, carbon monoxide, and mold, which all homes should be tested for. Make sure that your home-buying contract states that should such hazards be detected, you have the option to cancel the offer to buy.
3. Reveal Illegal Additions or Installations
A home inspection can reveal whether rooms, altered garages or basements were completed without a proper permit, or did not follow code, according to Chantay Bridges of Clear Choice Realty & Associates. "If a house has illegal room additions that are un-permitted, it affects the insurance, taxes, usability and most of all the overall value. In essence, a buyer is purchasing something that legally does not exist," she explains. Even new homes with systems that were not installed to code will become the new homeowners' financial "problem" to fix (and finance). (The home for sale/purchase must pass inspection. For more, see Housing Deals That Fall Through.)
4. Protection
Home inspections are even more critical if you are buying an "as-is" foreclosed property or short sale. Dwellings that have been boarded often develop hazardous mold problems, which are costly to remedy and pose health concerns. Greg Haskett, VP of shared services at HomeTeam Inspection Service says it's common for home inspectors to find that copper plumbing lines and outdoor compressors have been removed from foreclosed properties by people trying to sell copper to recyclers for money. (For more, see Should You Buy A House At Auction?)
5. Negotiating Tool
Realtor Jennifer De Vivo of Orlando-based De Vivo Realty says the home inspection report presents an opportunity to ask for repairs and/or request a price reduction or credit from the seller. Work with your realtor to understand what requests can and should be made to negotiate a better deal.
6. Forecast Future Costs
A home inspector can approximate the installation age of major systems in the home like plumbing, heating and cooling, and critical equipment like water heaters. They can diagnose the current condition of the structure itself, and tell you how long finishes have been in the home. All components in the home have a "shelf-life." Understanding when they require replacement can help you make important budgeting decisions, and it wll determine what type of home insurance coverage or warranties you should consider. (For more, see New Home Repair Troubleshooting.)
7. Determine "Deal-Breakers"
De Vivo suggests that home inspections can help buyers identify how much additional money or effort they are willing and able to spend to take the home to a condition that is personally acceptable. If you are unwilling to repair issues like faulty gutters, cracked walls or ceilings, perhaps you are not ready to end your home buying search.
8. Learn to Protect Your Investment
The home inspector is a valuable educational resource. He or she can suggest specific tips on how to maintain the home, and ultimately save you thousands of dollars in the long term, according to De Vivo.
9. Reveal the Big Picture
Haskett advises that people use the home inspection to understand the nuances of what may be the biggest purchase they ever make. "People fall in love with a piece of property based on the color of the walls, the location of the home, or something else; they are completely blind to the issues that can make that dream home a nightmare," he says. (For more, see Purchasing A Short-Sale Property.)
10. Insurance
Some insurance companies will not insure a home if certain conditions are found, or without the presence of certifications like Wind Mitigation and four-point inspections, according to Haskett. "Qualified home inspectors can do these things at the same time as their other services and save the home buyer time and money in the long run."
1. It Provides an "Out"
A quality home inspection can reveal critical information about the condition of a home and its systems. This makes the buyer aware of what costs, repairs and maintenance the home may require immediately, and over time. If a buyer isn't comfortable with the findings of the home inspection, it usually presents one last opportunity to back out of the offer to buy. (This step is important when purchasing a property because it may save you thousands. For more, see Do You Need A Home Inspection?)
2. Safety
A home inspection can detect safety issues like radon, carbon monoxide, and mold, which all homes should be tested for. Make sure that your home-buying contract states that should such hazards be detected, you have the option to cancel the offer to buy.
3. Reveal Illegal Additions or Installations
A home inspection can reveal whether rooms, altered garages or basements were completed without a proper permit, or did not follow code, according to Chantay Bridges of Clear Choice Realty & Associates. "If a house has illegal room additions that are un-permitted, it affects the insurance, taxes, usability and most of all the overall value. In essence, a buyer is purchasing something that legally does not exist," she explains. Even new homes with systems that were not installed to code will become the new homeowners' financial "problem" to fix (and finance). (The home for sale/purchase must pass inspection. For more, see Housing Deals That Fall Through.)
4. Protection
Home inspections are even more critical if you are buying an "as-is" foreclosed property or short sale. Dwellings that have been boarded often develop hazardous mold problems, which are costly to remedy and pose health concerns. Greg Haskett, VP of shared services at HomeTeam Inspection Service says it's common for home inspectors to find that copper plumbing lines and outdoor compressors have been removed from foreclosed properties by people trying to sell copper to recyclers for money. (For more, see Should You Buy A House At Auction?)
5. Negotiating Tool
Realtor Jennifer De Vivo of Orlando-based De Vivo Realty says the home inspection report presents an opportunity to ask for repairs and/or request a price reduction or credit from the seller. Work with your realtor to understand what requests can and should be made to negotiate a better deal.
6. Forecast Future Costs
A home inspector can approximate the installation age of major systems in the home like plumbing, heating and cooling, and critical equipment like water heaters. They can diagnose the current condition of the structure itself, and tell you how long finishes have been in the home. All components in the home have a "shelf-life." Understanding when they require replacement can help you make important budgeting decisions, and it wll determine what type of home insurance coverage or warranties you should consider. (For more, see New Home Repair Troubleshooting.)
7. Determine "Deal-Breakers"
De Vivo suggests that home inspections can help buyers identify how much additional money or effort they are willing and able to spend to take the home to a condition that is personally acceptable. If you are unwilling to repair issues like faulty gutters, cracked walls or ceilings, perhaps you are not ready to end your home buying search.
8. Learn to Protect Your Investment
The home inspector is a valuable educational resource. He or she can suggest specific tips on how to maintain the home, and ultimately save you thousands of dollars in the long term, according to De Vivo.
9. Reveal the Big Picture
Haskett advises that people use the home inspection to understand the nuances of what may be the biggest purchase they ever make. "People fall in love with a piece of property based on the color of the walls, the location of the home, or something else; they are completely blind to the issues that can make that dream home a nightmare," he says. (For more, see Purchasing A Short-Sale Property.)
10. Insurance
Some insurance companies will not insure a home if certain conditions are found, or without the presence of certifications like Wind Mitigation and four-point inspections, according to Haskett. "Qualified home inspectors can do these things at the same time as their other services and save the home buyer time and money in the long run."
Friday, August 23, 2013
Home Buying Tips
Are you a first-time home buyer eager to get into the market? Here are steps to take to help you decide whether you're ready to take the plunge.
1. Check the selling prices of comparable homes in your area. Web sites such as Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the site of the National Association of Realtors.
2. See what you can afford. Use Bankrate’s mortgage calculator to see what your payment would be. To get a sense of the maximum you should spend, use MSN Real Estate’s home affordability calculator (below).
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use MSN Real Estate's home affordability calculator. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.
To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy. For an idea of what you'll pay in taxes, Zillow publishes property-tax information for homes all over the country. Just remember that exemptions and the intricacies of local tax law (such as Florida's Save Our Homes value cap) can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.
What's your home worth?
4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees. You can see what closing costs average in your state by looking at Bankrate.com's annual closing cost survey.
5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.
6. Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?
Home affordability calculator
Combined annual income $
Other monthly obligations $
Cash for down payment $
7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account.
So consider whether you're ready for the expense and effort of homeownership before pulling the trigger.
1. Check the selling prices of comparable homes in your area. Web sites such as Zillow and Homegain can give you a general idea of what you should expect to pay. You can also do a quick search of actual MLS listings in your area on a number of Web sites, including the site of the National Association of Realtors.
2. See what you can afford. Use Bankrate’s mortgage calculator to see what your payment would be. To get a sense of the maximum you should spend, use MSN Real Estate’s home affordability calculator (below).
3. Find out what your total monthly housing cost would be, including taxes and homeowners insurance. To get a feel for the maximum amount you should spend, including taxes and insurance, use MSN Real Estate's home affordability calculator. In some areas, what you'll pay for your taxes and insurance escrow can almost double your mortgage payment. According to the Insurance Information Institute, the average yearly premium can range from $477 in Utah to $1,372 for unlucky Texans.
To get an idea of what you'll pay in insurance, pick a property in the area where you want to live and make a call to a local insurance agent for an estimate. You won't be obligated to get the insurance, but you'll have a good idea of what you'll pay if you buy. For an idea of what you'll pay in taxes, Zillow publishes property-tax information for homes all over the country. Just remember that exemptions and the intricacies of local tax law (such as Florida's Save Our Homes value cap) can create differences between what a homeowner is currently paying and what you can expect to pay as a new homeowner.
What's your home worth?
4. Find out how much you'll likely pay in closing costs. The upfront cost of settling on your home shouldn't be overlooked. Closing costs include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowners association fees. You can see what closing costs average in your state by looking at Bankrate.com's annual closing cost survey.
5. Look at your budget and determine how a house fits into it. Fannie Mae recommends that buyers spend no more than 28% of their income on housing costs. Go much past 30% and you risk becoming house poor.
6. Talk to reputable real-estate agents in your area about the real-estate climate. Do they believe prices will continue falling or do they think your area has hit bottom or will rise soon?
Home affordability calculator
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7. Remember to look at the big picture. While buying a house is a great way to build wealth, maintaining your investment can be labor-intensive and expensive. When unexpected costs for new appliances, roof repairs and plumbing problems crop up, there's no landlord to turn to, and these costs can drain your bank account.
So consider whether you're ready for the expense and effort of homeownership before pulling the trigger.
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