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Seller Moving Tips...the Next Exciting Journey

Sun, 01 Dec 2024 04:25:02 GMT

Selling Your Home and Rediscovering the Possibilities

Selling your home is a significant milestone, but once the sale is complete, the real work begins—moving out! The transition can be both exciting and overwhelming, but with proper planning, you can make it a seamless experience. Here’s a guide to help you handle your move efficiently after selling your home.

1. Create a Moving Plan

Selling your home involves plenty of deadlines, so stay organized with a detailed plan:

Set a Timeline: Start packing early to avoid last-minute stress.

Make a Checklist: Include tasks like hiring movers, transferring utilities, and updating your address.

2. Declutter Before Packing

Moving is an opportunity start fresh.

Donate or Sell Unwanted Items : Let go of things you don’t use or need anymore.

Reduce Costs: Fewer items mean fewer boxes and lower moving expenses.

Organize as You Go: Pack items you want to keep in clearly labeled boxes.

3. Hire the Right Movers

Professional Movers: Research and book a reputable moving company in advance.

DIY Moving: If you’re moving yourself, reserve a rental truck early and gather packing supplies like boxes, tape, and padding.

4. Coordinate with the Buyer

Communicate with the buyer to finalize move-out dates and other details. Ensure the home is left in the agreed-upon condition and that keys are handed over properly.

5. Deep Clean Your Home

As a courtesy to the new owners, leave the home spotless. Areas to focus on include:

Floors and carpets.
Kitchen appliances and countertops.
Bathrooms, including sinks, tubs, and toilets.

Note: This leaves a positive impression and fulfills any contractual obligations in the sale agreement.

6. Transfer or Cancel Utilities

Notify utility providers of your move and ensure services like electricity, gas, water, and internet are transferred or canceled. Schedule disconnections on the day of closing or the day after you move out to avoid interruptions during the transition. The goal is to work with your buyer so they won't have the hassle with turning utilities on.

7. Update Your Address

Ensure that your mail follows you to your next location. Notify banks and credit card firms, healthcare providers, subscription services, and the postal service about things like mail forwarding. Remember your loved ones.

8. Protect Your Valuables

Pack important documents, jewelry, and other valuables separately and keep them with you during the move. Consider using a safe or locked container for added security.

9. Plan for Temporary Storage if Needed

If your new home isn’t ready yet, arrange for temporary storage. Many moving companies offer short-term solutions, or you can rent a self-storage unit.

10. Be Ready for Moving Day

Pack an Essentials Bag: Include items you’ll need immediately, such as toiletries, a change of clothes, snacks, and important documents.

Have a Toolkit Handy: Keep tools like screwdrivers, scissors, and tape for quick fixes or assembly.

11. Tie Up Loose Ends at Your Old Home

Double-Check Each Room: Make sure nothing is left behind.

Return Keys: Provide all house keys, garage openers, and any access codes to the new owners.

Leave a Note: A friendly note with helpful tips about the home or neighborhood is a thoughtful gesture.

12. Embrace and Celebrate Your New Chapter

Moving out can be bittersweet, but it’s also the beginning of an exciting journey. Whether you’re moving into a new home or transitioning to a different stage of life, take time to reflect on the memories you made in your old house and look forward to new opportunities.

Final Thoughts

Selling your home is just the beginning of your next adventure. With careful preparation and a positive mindset, you can make the moving process smooth and stress-free. Check Out " Buyer Moving Tips " blog to cross-reference and get other tips you could incorporate.

Here’s to a successful move and a bright future in your new chapter!

Renters: Your Essential Tips

Fri, 01 Nov 2024 03:20:31 GMT

The Basics to Finding the Perfect Rental Home

Renting a home is an exciting step, whether you’re moving to a new city, upgrading to a larger space, or downsizing for simplicity. However, finding the right rental can be challenging without the right strategy. To help you navigate the process, here are some practical tips for finding the best rental home for your needs and lifestyle.

1. Define Your Needs and Budget

Start by outlining your priorities and setting a realistic budget:

Know What You Need: Consider the number of bedrooms, bathrooms, and any must-have amenities like a yard, parking, or proximity to work or school.
Set a Budget: Financial experts recommend spending no more than 30% of your monthly income on rent. Don’t forget to factor in utilities, internet, and other costs.

2. Research the Market

Understand the rental market in your desired area:

Use Online Platforms: Websites like Zillow, Apartments.com, and Craigslist can give you a good sense of what’s average rental prices; however, be sure to confirm rental is still available because such platforms may have a brief lag-time when updating vacancies.
Check Local Listings: Explore neighborhood-specific options or connect with local real estate agents for exclusive listings.
Track Trends: If you’re in a competitive market, prepare to act quickly when you find a suitable property.

3. Tour Potential Rentals

Seeing a property in person (or via a virtual tour) is crucial:

Inspect Thoroughly: Look for signs of wear and tear, check appliances, and ensure all fixtures are in working order.
Ask Questions: Inquire about maintenance policies, utilities, and any rules (e.g., pet policies or guest restrictions).
Consider Noise and Privacy: Pay attention to noise levels and how private the property feels, especially in apartments or shared spaces.

4. Evaluate the Location

The right neighborhood can make a huge difference in your rental experience:

Proximity to Essentials: Check the distance to locations like grocery stores, public transportation, schools, and your workplace.
Safety: Research crime rates and visit the area at different times of the day to get a feel for safety and activity levels.
Community Vibe: Think about whether you prefer a quiet suburban street or a bustling urban area.

5. Understand the Lease Agreement

Read your lease carefully before signing:

Review Terms: Pay close attention to the lease length, rent due dates, security deposit requirements, and penalties for breaking the lease.
Check for Additional Fees: Look for charges like pet fees, parking fees, or maintenance fees.
Clarify Rules: Ensure you understand policies around modifications, subleasing, and repairs.

6. Work with a Realtor or Rental Agent

A professional can save you time and effort:

Local Expertise: Agents often have access to properties that aren’t listed online.
Negotiation Help: T he y can assist in negotiating terms, especially in competitive markets.

7. Consider Roommates Carefully

If you’re renting with others, ensure compatibility:

Align on Finances: Make sure all roommates can reliably contribute to rent and utilities.
Establish Ground Rules: Discuss household expectations like cleaning schedules and shared expenses upfront.

8. Negotiate When Possible

Don’t be afraid to discuss terms with landlords:

Lower Rent: If the rental has been vacant for a while or you’re willing to sign a longer lease, you may have room to negotiate.
Request Upgrades: Ask for minor improvements, like fresh paint or updated appliances, before signing the lease.

9. Protect Yourself

Safeguard your rental experience:

Document the Condition: Take photos of the property before moving in to avoid disputes about damage.
Get Renters Insurance: Protect your belongings from theft or damage for a small monthly cost.
Verify the Landlord: Ensure the person renting to you is legitimate to avoid scams.

10. Trust Your Instincts

If something feels off about a property, landlord, or lease, don’t hesitate to walk away. Finding the right rental may take time, but it’s worth holding out for a place that feels like home.

Takeaway:

Finding the best rental home is about balancing practicality with personal preferences. By staying organized, doing your research, and keeping your priorities in mind, you can find a place that suits your needs and feels like home.

Happy house hunting!

Buyer Moving Tips: What's Next...

Tue, 01 Oct 2024 01:56:22 GMT

Ways to Maneuver the MOVE

Buying a home is an exciting milestone, but the work doesn’t stop once the papers are signed. Moving into your new space can feel overwhelming without a plan in place. To help you navigate this transition, here are practical tips for a smooth and stress-free move after buying your ideal home.

1. Plan Your Move Early

Once your closing date is set, start preparing for your move. Create a timeline with key tasks like scheduling movers, packing, and updating your address. The earlier you start, the less last-minute stress you’ll face.

2. Declutter Before Packing

Moving is the perfect time to assess your belongings and decide what you truly need. Let go of clothes, furniture, and gadgets you no longer use. The fewer items mean fewer boxes and potentially lower moving expenses.

3. Hire Professional Movers or Rent a Truck

Research and book a reliable moving company well in advance. Read reviews and ask for recommendations to ensure a good experience. If you’re handling the move yourself, reserve a rental truck early and enlist friends or family for help.

4. Pack Smart

Clearly mark each box with its contents and the room it belongs to. Include items you’ll need immediately, such as toiletries, a change of clothes, phone chargers, snacks, and basic kitchen supplies and any important documents. Be sure to protect your items by using bubble wrap, packing paper, or blankets to secure breakables. Place important documents in a sturdy and protective folder or location for quick retrieval.

5. Transfer Utilities

Set up utilities for your new home (electricity, water, gas, internet) before moving day to ensure everything is functional when you arrive. Don’t forget to cancel or transfer utilities at your old home as well.

6. Update Your Address

Inform important organizations that your address has changed. This entails, among other things, calling banks, credit card firms, insurance agencies, your employment, and any subscription services, as well as alerting the post office to forward your mail. Don't forget your family and friends.

7. Clean Your New Home

Before moving furniture and boxes into your new home, give it a deep clean. Pay special attention to the kitchen, bathrooms, and floors. This ensures you’re starting fresh in a tidy space.

8. Conduct a Pre-Move Inspection

Walk through your new home to ensure everything is in good working order. Check for leaks, test light switches, and identify any immediate repairs or maintenance needs.

9. Unpack Strategically

Tackle unpacking in stages. Start with essentials like your bedroom, kitchen, and bathroom. Organize as you go to avoid creating clutter in your new home. Take your time; it’s better to unpack thoughtfully than rush.

10. Explore Your Neighborhood

Take time to familiarize yourself with your new community. Locate nearby grocery stores, schools, parks, and healthcare providers. Meeting your neighbors can also help you feel more connected and settled.

11. Secure Your New Home

For added security, replace all locks shortly after moving in. Consider installing cameras, alarms, or smart home devices for peace of mind. Additionally, make sure carbon monoxide and smoke alarms are working by testing them and changing the batteries if necessary.

12. Celebrate Your New Home

Moving is a lot of work, but don’t forget to celebrate this big milestone. Host a small housewarming party or enjoy a quiet evening in your new space to mark the beginning of this exciting chapter.

Takeaway:

Moving into a new home is a fresh start filled with possibilities. By staying organized, preparing early, and tackling tasks one step at a time, you can transform your moving day into a smooth and memorable experience. Here's to making your house a home and beginning this new chapter with ease! Check Out " Seller Moving Tips " blog to cross-reference and get other tips you could incorporate.

Congratulations on Unlocking Your New Home!

Avoid During the Mortgage Process

Sun, 01 Sep 2024 04:00:00 GMT

Things Not to Do When Applying for a Mortgage

Purchasing a house is an intense and lengthy process that can take several months. It's crucial to keep an eye on your finances and wait to make any significant adjustments until closing on your home. Consider the below-mentioned tips to minimize any detours, or worst, derailments during the home buying process.

Don't lie about your income on your loan application or ignore any obligations or debts – your lender will discover hidden information during the underwriting process or sooner. Don’t waste your time or theirs.

Don't switch jobs , leave your current employer, or start working for yourself. – your lender needs to trust that you will have stable and consistent income. If you are changing your job and/or position, let the lender know in advance. Typically, if your income is increasing and/or you are remaining within the same job field, your application is less likely to be an issue. Double check with your lender to confirm that this is the case for you and your situation.

Don't switch financial providers. Make sure to maintain a history of consistent banking – needless to say, you are proving your whole financial picture at this time. Lenders want see what is included in your financial profile and how much of a risk it will be to loan you money. After all, would you loan someone money that is unwilling or unable to repay you?

Don’t co-sign for anything – you can’t control what someone else decides to do. If your name is on a shared account, and the account goes late or worse, this can hurt your credit score. You should never co-sign for anyone, especially during a mortgage process.

Don't deplete your investments and/or savings accounts – it’s good for lenders to see that you have financial resources if needed for unforeseen issues such as loss of employment or other unexpected financial hardships.

Don't make disproportionately big deposits into your accounts. You should have at least two months' or more worth of funds in your account before making your down payment – lenders like to make sure all funds are accounted for when processing your application. If it is determined that large amounts deposited in your account will not be a reoccurring transaction, lenders question what will happen when you no longer have those funds deposited in your account in the future? It is presumed that you won’t be able to afford payments. If you are expecting large deposits, talk to your lender as soon as possible.

Don't take on more long-term debt for big ticket items like new furniture for your home or a car purchase. Taking on more financial responsibility will result in a higher debt-to-income ratio. This says to the lender, that you have more expenses (debt) which means you have more going out then coming in (income). Bottom line, this compromises your income health that was planned for loan repayment at time of loan application and loan commitment. Remember, you are being approved for what you said and what you can prove.

Don't use credit cards more frequently or fall behind on your payments – late payments can hurt your credit score and make you seem financially irresponsible. A score decrease can change the offered loan product, program eligibility, even increase your interest rate and down payment.

Don't open new credit accounts or close accounts – a no-brainer. A new credit line means that you have taken on more debt risks. Your lender is processing your application based on the financial picture that you initially presented to them via respective documents. If you take on more credit, it is presumed that you are going to take on more debt which inevitably changes what your initially submitted to the lender. This is true for closing accounts because your lender will base eligibility on your credit information. If this situation changes, it can affect your credit score. Yes, closing an account can hurt your credit, especially if it's an old account with good standing. Closing this type of account will decrease your score because it is no longer counted in your scoring model.

Takeaway:

Always get advice from your mortgage loan officer before making any decisions that could materially affect your credit score or finances.

It's crucial to maintain consistent financial circumstances throughout the house-buying process, matching the information you provided on your application. Positive or negative adjustments have the potential to prolong the mortgage process and prevent you from closing on your ideal house.

In Short … when in doubt, do without and contact your lender. Just accept the fact that you must make careful financial decisions after completing your mortgage application (pre-approval process).

Home Warranty: A Bird’s Eye View

Thu, 01 Aug 2024 21:08:00 GMT

To Cover or Not To Cover Your Major Appliances or Home Systems...

When buying a home, it could be beneficial to have a home warranty to assist with the cost of repair, replacement, and service of major appliances and systems.

A home warranty can be purchased by anyone. Anyone, be it a homebuyer, seller, or renter, regardless of the home's age or condition, can directly purchase a policy from a home warranty company. It’s just a matter of incentive, why might a seller or buyer want to purchase a home warranty?

A Seller's Incentive

A seller may purchase a home warranty as an incentive for a buyer or to ensure coverage is provided if a major appliance or home system breaks before closing on the house. It’s important to note that less expensive appliances like (countertop microwaves and ice machines) are not covered under these warranties.

In the case of a sellers’ market, the buyer will typically pay for the home warranty and choose what type of plan they desire and whether it will cover both large and small appliances and major home systems.

It’s important to note that coverage is limited to what is listed in the contract, different plans cover different appliances and systems. It is vital to pay close attention to what’s covered when deciding whether to buy a home warranty.

A Buyer's Incentive

Buyers will sometimes ask the seller to pay for the first year of home warranty. For sellers, this is beneficial as the buyer will likely be less concerned about the condition of major appliances and systems, which increases the chance of closing the deal. Meanwhile for buyers, the benefit lies in the peace of mind given, knowing that expensive service or repair costs for major appliances and systems are unlikely.

The buyer will also be able to access the home warranty company’s pre-vetted contractors. This is very beneficial for moving to a new area or if the buyer does not already have a group of trusted contractors.

Ultimately, a buyer may want to purchase a home warranty if they’re not prepared to spend thousands in the event of a major break down or would like the peace of mind knowing they’re protected as well as the repair process being simplified with the home warranty company involved.

Need help finding a reputable home warranty provider, contact me!

Homeowners Insurance

Mon, 01 Jul 2024 21:07:33 GMT

Is Home Insurance Required to Buy a Home?

Proof of homeowners insurance will often be required by your lender before they fund the home loan and turn over the property to the buyer. A lien will be held on the property by the lender until the home is fully paid off. Because of this, it is likely that the lender will ensure that the property is insured while the buyer is paying down their mortgage.

Shopping for a Policy

Certain things may not be covered in a standard policy, such as earthquakes, floods, or landslides, depending on where you are shopping for home insurance. Your home insurance agent will be able to tell you if there’s an option to purchase protection from any incidents that aren’t included that you may be at risk of encountering.

It's beneficial to compare homeowners insurance quotes and pricing for best options. Another helpful tip would be bundling homeowners and auto insurance with the same insurer, as it often helps you save money.

Your loan specialist will let you know when to buy homeowners insurance during the mortgage approval process.

Important Factors: Mortgage, Insurance, and Escrow

Escrow accounts hold funds that are designated for your home insurance and property taxes and are recommended as they ensure that you stay up to date with these fees as your lender pays on your behalf when they are due.

For this process, each month, you will pay a specific amount, which is typically a few hundred dollars, above your normal mortgage payment. These extra funds will be kept in the escrow account by your lender or mortgage servicer.

Most lenders will require you to obtain mortgage insurance if your down payment is less than 20%. If you have a conventional loan, your mortgage insurance is called Private Mortgage Insurance (PMI). If you have a loan backed by the Federal Housing Administration (FHA), your mortgage insurance is known as mortgage insurance premium (MIP).

Closing Cost Process

The first term of your homeowner’s insurance may be required to be paid at closing by your lender, as well as the funds deposited into your escrow account for the next billing cycle. If you don’t have escrow, however, the entire first year’s home insurance premium will likely have to be paid at closing. In some cases, a lender may charge a nominal fee to waive your escrow requirement. Homeowners have the option of using escrow to pay for home insurance and property taxes in installments rather than annually or biannually.

Why Title and Title Insurance Are Both Important

Sat, 01 Jun 2024 21:05:10 GMT

What is a House Title?

A house title is the ownership record of a property. This title contains information such as the physical description of the property, who has previously owned the property, and if there are any legal claims, also known as liens, on the property.

Title Companies

The title company, as well as the title insurance policy, work in unison to protect the buyer from any liability
Title companies are hired with the purpose of researching and insuring the title of the home being purchased isn’t claimed by another owner along with free of liens
Title companies are third parties that work on behalf of both the buyer and the lender and is a critical part of the settlement process

Who Picks the Title Company?

Both the buyer and seller have representation from a title company, but neither are obligated to use a specific title company. If you’re unsure which company to use, you may ask for recommendations from your real estate agent or lender.

Title Company’s Steps During the Home Buying Process:

 Research a Chain of Title - Title companies are going to investigate a "chain of title,” which is the full history of who owned the home, as well as any existing liens on the home.

Property Survey – A property survey will be conducted to certify that the home solely takes up the space specified in the title. A title abstract will then be provided for both the buyer and lender to review.

Title Insurance - Two kinds of title insurance policies will be provided: one for the buyer and one for the lender. Title insurance protects both buyer and lender financially and legally.

Usually, the seller of the house pays for the buyer’s title insurance policy, and the buyer, in turn, pays for the lender’s policy. This will be a one-time payment when the property is closed on, and the buyer will be covered for as long as they own the property.

Determine Who Is the Title Holder – It’s vital to work with the title company to ensure that the wording on the title accurately describes who has the right to transfer ownership. How property taxes and fees are paid, if the buyer sells the home in the future, could also be affected by the wording on the title.

Settlement – Sometimes, the title company will oftentimes manage closing on the home. Depending on the state requirement, a signing agent or a real estate attorney will be appointed to review all closing documents and finalize the deed and title transfer.

Hold and Manage Money in Escrow - An escrow account is a savings account managed by a third party that distributes payouts under certain conditions.

These accounts are commonly used in real estate so mortgage lenders can ensure that the buyer can afford certain expenses.

Issues a Title Company May Be Able to Find:

If the title company finds any issues with the property, both the buyer and the seller will be notified. Some examples include:

Income and Property tax and other judgment liens
Outstanding loans on the home
Claims to property by other owners or heirs
Mechanic’s lien for work performed and unpaid
Special assessments on the property

Contact me for further information.

Home Search - NEVER Buy These Types of Houses

Wed, 01 May 2024 21:04:48 GMT

Homes That May Cost You More in the Long Run!

Old Homes (Over 100 years old):

Electrical and plumbing will likely be an issue that needs addressing
Rewiring may be required to replace Knob-and-tube (K&T) wiring and insulation standards that are not up to code
Unsafe features such as steep staircases, low ceilings, old laundry chute, etc.
Professional removal of Asbestos found in the house

Flipped Houses:

Inexperienced contractors can cause hazardous and/or unsafe conditions
Rushed job increases the chance of latent or unseen potential problems by the naked eye

Homes with Oil Tanks:

Potential taint to nearby water, soil, and vegetation
Soil Remediation will be costly

Homes in Flood Zones:

According to Federal Emergency Management Agency (FEMA), the national average of $800 or more per year
Marginal floodwater can cause upwards $20,000 in damages

Houses with Over-the-Top Custom Features:

Features could hurt resale values as it may only be appealing to a niche selection of buyers
If you no longer like the feature, it will likely be costly to get changed, removed, or otherwise modified

Takeaway: Considering the areas discussed can save you time, headache and money. Work with your agent to get property history and disclosures, hire an inspector, and investigate any permits and receipts.

Mortgage - FHA Loans vs. Conventional Mortgage: Advantages and Disadvantages

Mon, 01 Apr 2024 21:04:01 GMT

FHA vs. Conventional Loans

FHA Loans

Mortgages insured by the U.S Government’s Federal Housing Administration are known as FHA loans. These loans were implemented with the intention of helping lower- to middle-income buyers become homeowners.

Eligibility Requirements (Lender Specific):

Minimum credit score of 500-579
3.5% down payment; credit score of 580 or higher for best loan and terms
Typically, Debt-to-Income ratio of 50% or less less

Pros:

Buyer minimum credit score that are lower than required by conventional mortgages
Lower down payments
Higher Debt-to-Income ratio than allowed by conventional mortgages

Cons:

Higher interest rates than conventional loans
Upfront mortgage insurance premium
FHA sets home price qualifying maximums

Conventional Mortgage

Conventional mortgages are known as established financial vehicles for purchasing a home with a down payment and an amortized home loan. These loans are held by banks, credit unions, and saving loan associations. It’s important to note these mortgages aren’t backed by the government like FHA loans are, which leads to stricter eligibility requirements than FHA loans. These requirements allow private mortgage owners to protect their investments.

Eligibility Requirements (Lender Specific):

Proof of cash available for down payment
Typically, Debt-to-Income ratio below 36% (higher for some lenders)
Minimum credit score of 620; a credit score of 740 or higher needed for best loan terms

Pros:

Flexible Interest Rates
Loan term flexibility
No PMI with a 20% or more down payment

Cons:

PMI insurance with less than 20% down payment
Higher credit score required
Higher credit score threshold to meet than FHA loan

Mortgage Contingency Explained

Fri, 01 Mar 2024 22:03:14 GMT

A Mortgage Contingency: What Is It?

A mortgage contingency, also known as a financial contingency or loan contingency, is a condition written into a contract that ensures home buyers aren’t bound to a home sale until a concrete approval letter from a mortgage company is received.

Typical Scenarios Include:

If the loan cannot be approved, the buyer can leave without facing any legal consequences and receive their earnest money deposit back
Both the buyer and seller must agree on the mortgage contingency in a purchase contract
Mortgage contingency period usually last 30 – 60 days
Either party can back out of the home sale agreement during the contingency period with no penalties
Generally, the expectation is for the buyer to gain approval for a mortgage and secure financing before closing on the house can begin

How a Mortgage Contingency Works

The buyer submits a purchase offer to the seller
If preapproval hasn’t been obtained for a mortgage, a mortgage contingency can be added to the offer
The buyer will then submit an earnest money deposit and the seller will take the property off the market once both parties sign the purchase agreement
Once mortgage is approved, the buyer will provide the seller with a mortgage commitment letter from their lender
The contract may be terminated if the buyer is unable to qualify for the loan or cannot secure financing in time
In the event of a contract termination, the seller will be free to pursue other offers, and the buyer will receive their earnest money deposit back

What is Included in a Mortgage Contingency Clause?

Mortgage Contingency Deadline
Amount Of Money Needed
Maximum Interest Rate
Type Of Mortgages
Closing Or Origination Fees

In Short

A mortgage contingency is a safety measure to help guard home buyers and sellers against unforeseen changes that may occur during the home buying process.

Side note: Carefully consider the pros and cons of using a mortgage contingency with your agent to avoid financial risks.

What is a Home Inspection?

Thu, 01 Feb 2024 21:55:50 GMT

Typical Maryland Inspections

When buying a house in Maryland, it’s the buyer’s right to request inspections. It’s important to note that the buyer pays for most, if not all, of these inspections. There are many inspections that a buyer may request, but this list will focus on the most common ones in Maryland.

The Whole-House Inspection:

A whole-home inspection typically includes the interior and exterior of the home including all home systems such as the HVAC, plumbing, and electrical. This is a visual inspection, which means while everything might be visually functional, yet there may be problems not visible to the naked eye. Such issues may whether be behind the walls or within home systems.

Homebuyers will receive an inspection report upon completion
Buyers will be educated by home inspectors. Tips may range from how home systems work, to maintenance of the house, or simple home ownership tips
Positives and negatives will both be pointed out in this inspection

Well and Septic Tests:

Wells supply water and a septic system, also known as water and sewage handles sanitation. For this inspection a visual inspection of the tank and distribution box needs to be performed, to accomplish this, the system is pumped out and the inspector will look for things such as missing or broken parts, or any other signs of decay.

Lenders often require the water quality to be tested
Problems with both water and septic systems are almost impossible to determine without a proper inspection

Pest Inspection:

This inspection is to ensure that there are no pests that can cause damage to the house and that there are no existing structural threats to the house.

A wood-destroying insect inspection or WDI is required by most lenders for approval of a loan to buy a house
For Maryland, if the buyer is using a VA loan, an inspection is typically required by
This inspection is often paid for at settlement rather than in advance

Radon Testing:

Radon is a radioactive, carcinogenic gas that is tasteless, colorless and odorless. In testing, either two charcoal containers or a digital device will be placed in the basement. Over a period of several days, air samples will be collected and evaluated.

There are reported to be elevated radon levels in certain areas in Maryland
Readings above 4.0 are considered elevated
Most home inspectors also perform the radon testing
According to the National Cancer Institute, Radon is the second leading cause of cancer in the country

Chimney Inspection:

For this inspection, a camera is placed down the chimney in efforts to find any evidence of damage such as cracks.

If there has been a chimney fire, this inspection will find out
This inspection will also see if there is a chimney liner, which safeguards the chimney structure

How to Request a Home Inspection in Maryland:

The Property Inspections Addendum is one of the common forms included in a contract when buying a house. This inspection contingency allows the buyer the option to pay to have the house inspected, and afterwards request any necessary repairs. If any requests cannot be resolved, this contingency allows the buyer to cancel the purchase. Typically, all inspections are required to take place within a specific time frame, often 14 days or sooner after a contract is accepted.

The buyer’s real estate agent can provide a list of recommended inspectors. The recommended inspectors should be called and asked about their availability, inspection process, and prices.

If the inspection is completed or the report is received after the specified deadline, the buyer will not be able to ask the seller to repair anything. The buyer’s real estate agent should make sure that inspections are scheduled on time to avoid this outcome.

What Can be Expected at a Home Inspection:

The home inspection can take anywhere from 1-3 hours. The time taken to complete the inspection depends on the size of the house.

A good inspector will be as thorough as they possibly can rather than rush through the inspection. While inspecting the house, the inspector will also educate and explain things to the buyer, as well as provide maintenance tips. This will also provide the buyer the opportunity to plan and budget for replacements.

The seller will be expected to leave the house during all inspections. As the buyer pays for their inspections, the inspections and their results belong to them. Occasionally, a homeowner may refuse to leave their house during an inspection, it is strongly recommended to avoid doing this as the seller could say something that may scare away the buyer.

If there are any concerns, the seller will receive a copy of the report when the buyer submits their list of repairs.

Need more information? I’m here to help!

Appraisal Contingency Explained

Mon, 01 Jan 2024 22:27:48 GMT

An Appraisal Contingency: What Is It?

An appraisal contingency clause is a provision included in purchase contracts. This appraisal determines the fair market value of the home you’d like to buy. It’s of significant importance as it allows homebuyers to back out of their contract if a home is appraised for less than the amount you’ve agreed to pay in the contract.

Ultimately, Appraisal contingencies protect you and your lender from overpaying for your home, protecting you financially if there’s a substantial difference in the home’s value and the price you agreed to pay for it.

It may be recommended by your real estate agent that one or more contingencies are included in your contract when you make an offer on a home. Contingencies are included alongside your offer and are not individual contracts. Much like the seller can accept or reject your offer, the seller has the option to accept or reject your contingencies.

How an Appraisal Contingency Works:

During your loan application, a home appraisal is ordered by your lender, and the house you want to buy, as well as the area it’s in, is inspected by a licensed appraiser. Next, the appraiser will give you a professional opinion of how much the home is worth. Appraisals are required by lenders to ensure that the home isn’t selling for more than it’s worth.

If the appraisal comes back lower than your offer, you’ll have a few options. You can either ask the seller to lower the sale price, back out of the sale, or come up with the cash to cover the difference between the appraisal and your offer. If you have an appraisal contingency, you’ll have leverage in negotiating a lower price.

Without an appraisal contingency, the option to walk away might not be available. Waiving an appraisal contingency clause can complicate things significantly for you if the home appraisal is low. At the very least you could be at risk of breaking the contract and losing your earnest money deposit. As mentioned before, however, with the appraisal contingency, you can safely walk away from the sale if you and the seller can’t reach an agreement.

Low Appraisal: What Now?

It’s important to note that you may petition for a second appraisal if you believe the appraisal is wrong. This second appraisal is essentially a second opinion on the home’s worth. You will need to have a reason why you think the first appraisal was wrong to get a second appraisal.

Typically, providing items such as documentation of improvements and recent market home sale data may improve the chances of getting a better second appraisal.

In Short:

An appraisal contingency can help guard your finances when making an offer on the home of your dreams.