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Final walkthrough a buyer's best friend

By Dian Hymer, Monday, August 10, 2009.

Imagine this. You move into your new home for the first time after closing and, although you transferred the utilities into your name, the lights don't turn on. There isn't a single light bulb left in the house, the yard is overgrown and the leaky faucets the sellers were to have fixed still leak.

Most homebuyers aren't faced with such an unpleasant surprise. You can gain some degree of control over the situation by completing a walkthrough inspection of the property within five days of closing.

Your purchase contract should include a clause that grants the buyers permission to do a final walkthrough inspection sometime close to the closing date. more...

Multiple home inspections pay off

By Dian Hymer, Monday, August 3, 2009.

Buyers often assume that if a house is new there's no need to inspect it. What could possibly be wrong with a brand-new house? You'd be surprised.

Following the 1991 firestorm that destroyed thousands of homes in the hills above Oakland, Calif., contractors from around the country moved into the area to take advantage of rebuilding opportunities. The planning department was overwhelmed. Inspectors rushed from one job to another.

Problems that showed up mere years after these new homes were completed were often due to faulty installation of windows and doors, improperly flashed decks over finished living areas, and lack of proper ventilation. more...

Charting interest rates' next move

By Dian Hymer, Monday, July 27, 2009.

On May 26, 2009, shock waves hit the mortgage market as interest rates shot up after dipping into the 4 percent range for 30-year fixed-rate conforming loans. On May 29, the bond market rallied, lowering mortgage rates by about half of the previous days' increase.

This was followed by another rate hike as investors demanded higher interest rates on long-term government debt. Interest rates on 30-year fixed-rate home mortgages are tied to the 10-year Treasury rate. more...

Don't skimp on title insurance

By Dian Hymer, Monday, July 20, 2009.

Most people are trying to cut costs these days. Some even wonder if it's necessary to pay for title insurance when they buy or sell a home. Skimping here could end up costing plenty if you discover a title defect after you own the property.

Title insurance is paid for once at closing and covers the property for as long as you own it. It protects the purchaser from financial loss deriving from defects in the title to the property. The premium cost varies depending on the title insurance company, and is usually based on the purchase price. more...

Facing neighbor complaints on eve of sale

By Dian Hymer, Monday, July 13, 2009.

When the for-sale sign goes up, it's not uncommon for a neighbor to come forth with a complaint -- perhaps about an issue that has never been mentioned to the seller before.

The complaint is often addressed to the seller's agent, either in the form of a letter or phone call. In one instance, a seller's next-door neighbor contacted the listing agent to find out if she knew there was a lawsuit pending against the listing.

The listing agent knew nothing about this. But she was sure, given California's mandatory seller disclosure requirements, that if there was a lawsuit involving the property, it needed to be disclosed to buyers. more...

Sellers think twice about high offers

By Dian Hymer, Monday, July 6, 2009.

Sellers who are lucky and receive more than one offer should carefully consider all aspects of the offers before accepting the one with the highest price. Even if you receive only one offer and it's lower than your asking price, you might want to consider bending some on your price in exchange for a transaction that is likely to close.

Ideally, you want a committed buyer who has a good credit score and financial resources, and who has been preapproved for a mortgage, as lenders have tightened their qualifying criteria considerably. more...

Contingencies frustrate buyers, sellers

By Dian Hymer, Monday, June 29, 2009.

There are many frustrating aspects associated with buying or selling a home today. One is that contract contingencies -- such as inspections, financing or the sale of another property -- often aren't removed on time. It's not uncommon for closings to be delayed, usually due to the buyer's lender.

Your purchase contract should include a provision to deal with deadlines that are not met on time. For example, in the home purchase contract used by many Realtors in California, sellers can give buyers a 24-hour notice to perform. If the buyers don't meet this deadline, the sellers can cancel the contract. This notice can't be delivered earlier than 24 hours before the contingency is due. more...

Deferred maintenance often a deal-breaker

By Dian Hymer, Monday, June 22, 2009.

Three years ago, when the home-sale market peaked, buyers frequently bought "as is" regarding deferred maintenance, like wood-destroying pest or "termite" work.

Home prices were rising in many areas, and buyers were flush with cash and could line up a mortgage even if they didn't qualify. Today, prices are still declining with a few exceptions; many buyers are cash-strapped; and they need to put more cash down and go through a rigorous qualifying process to get a mortgage.

In the hot seller's market of several years ago, many sellers invested money to make their homes look pretty in order to attract multiple buyers and drive the sale price up. more...

Finding middle ground for home repairs

By Dian Hymer, Monday, June 15, 2009.

Today's home sales are all about negotiation. Negotiating the purchase price is the first step. A second round of negotiations can occur after the buyers complete their inspections. For sellers who negotiated to their rock-bottom price, this can be disappointing and a possible deal-breaker.

Buyers who are willing and able to buy in this market need to feel they are getting a good value. Property condition is a big consideration. Correcting defects adds to the cost. If the buyers still want to buy after completing inspections, and the sellers need or want to sell, an attempt should be made to reach an agreement on inspection-related issues. more...

Check permits before purchase

By Dian Hymer, Monday, June 8, 2009.

It can be a hassle to go through your local building department permit procedure when you make changes to your home. You or your contractor must apply for permits, pay fees and meet building inspectors to approve the work in progress. Sometimes there are complicating factors.

Recently, sellers of a home in the Oakland Hills (Calif.) decided to have wood-destroying pest work done before their home went on the market to make the property more appealing. The contractor applied for a permit and the plan for the repair work was approved by the city. City inspectors inspected the job twice while the work was being done. When a different inspector came out to give final approval, he refused to do so and required that more work be done. more...

Resale value high on buyers' minds

By Dian Hymer, Monday, June 1, 2009.

There's not much you can do about keeping a down market from having some impact on the value of your home. But, you can carefully choose the home you buy so that you end up with a property that holds its value well, even in a slow market.

Gerry and Patty Montmorency have lived in their Oakland, Calif., home for 11 years. Prior to this relatively long period of ownership, at least for them, they bought and sold seven homes in six different cities. It took them between 12 hours and two weeks to sell the last six homes, even one they owned in Nashville, Tenn., for less than four months. more...

Delay move until deal is done

By Dian Hymer, Tuesday, May 26, 2009.

Sellers should start packing as soon as they think they might want to put their home on the market. That is, they should start weeding out all the personal property they no longer want or need. It makes no sense to spend time and money packing and moving these things.

Most homes need decluttering before they're sold. This is so they show at their best, which usually results in a faster sale at a higher price. Cluttered homes look smaller than they are. And, an unkempt look puts buyers off. Clearing out the clutter early is a good idea even if you aren't sure when you'll be moving. more...

Picking the right mortgage rep

By Dian Hymer, Tuesday, May 19, 2009.

Just as using a top-notch real estate agent enhances the quality of your home-buying experience, so does working with an astute mortgage broker or loan officer. The 80-20 principle applies to most businesses: 20 percent of the practitioners are excellent; 80 are not.

How do you find the best person to help you through the rigorous mortgage approval process that has become the norm in today's housing industry? You need someone who knows how to work in the current environment. Getting a loan through the process to a successful closing requires grit and tenacity. more...

Appraisals killing deals in many markets

By Dian Hymer, Monday, May 11, 2009.

Finding the right house to buy is never easy; selling a home today is also challenge. It's best to prepare yourself for obstacles that could cross your path so that you're prepared should they arise.

In some markets, one in three transactions doesn't close. This is a high ratio compared to the fallout ratio in previous years when the housing market was stronger and financing options were plentiful. In past years, most transactions fell apart over inspection issues. The biggest hitch today is financing, which is not to say that property defects don't come into play. more...

Tips on buying home through relo company

By Dian Hymer, Monday, May 4, 2009.

Approximately 1.5 million sellers per year take advantage of an employer-assisted relocation, according to the Employee Relocation Council. Buying one of these listings involves a different procedure than you'd ordinarily expect.

One of the hardest parts of making an offer on a relocation listing is that it can take three to five business days to get a response to your offer from the relocation company. The sale procedure differs from one relocation company to the next. But, generally, the process goes like this. more...

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