Top ten things you should check during your home inspection

1. The roof. What is the overall condition (are there curled shingles, granules missing from shingles)? When was it last replaced? Are there trees touching it? This is a high ticket item so you really need to know about your roof.

2. The foundation. Look at the base of the walls and the ceilings in each room. Are there obvious cracks or apparent shifts in the foundation? Large cracks signify a problem. Cracking is very common so ask your home inspector if they are worrisome. Look around the outside. Are there any trees encroaching on the foundation? 

3. The furnace and cooling system. Does it seem to do the job? How old is the furnace? Is the furnace original to the home or has it been upgraded? 

4. The electrical system. Do the switches work? Are there any obvious malfunctions? Have the outlets been grounded? Is the panel updated and expandable for additional appliances or a potential remodel? Are there uncovered junction boxes? Is there a mixture of old and new wiring (this can be dangerous if not properly addressed). Your home inspector can advise you of potential issues.

5. The plumbing. Are there any visiable leaks in the home? Has the sewer line been scoped to check for potential cracks? If you are in an older home this is particularly important as sewer repairs or replacement are very expensive.

6. Check for moisture or drainage issues. Check the ceilings and around windows in each room for moisture. Does the exterior drainage appear to be away from the house? Are there any obvious soggy areas? Is there an odor in the house? Beware of musty odors which could be a sign of a wet basement or other moisture condition.

7. Radon. Radon is a cancer causing radioactive gas that is the second leading cause of lung cancer in the US (source: Utah Department of Environmental Quality). Certain areas have higher risk of radon so consult your real estate agent or home inspector to find out if you should test for radon. In most cases, it is wise to test for it.  To learn more about radon, visit: http://www.radon.utah.gov.

8. Exterior issues. Does the house look like it will need repairs or repainting soon? Are gutters and downspouts firmly attached? Are there loose boards or dangling wires? Are there stains or holes in the stucco?

9. Appliances. If these are included, what is the age and condition of the stove, dishwasher or refrigerator? These are high ticket items so you should know when to budget to replace them.

10. Chimney and Fireplace. An inspection of the chimney and each fireplace will check for loose bricks and mortar, assess the overall stability and check for obstructions within the chimney. In older homes the chimney will often be deteriorated and can be a hazard if bricks fall off.

Top 10 things every new homebuyer MUST know before they start.

1. Get pre-qualified.

Before looking for your new home online or with a real estate agent you need to apply for a mortgage loan.  It is heartbreaking to set your mind on buying your first home and then finding out from a mortgage lender that you cannot buy a home or that you can only afford a $100,000 home when you have been looking at $200,000 homes.

2. Hire an experienced real estate agent. 



Sure we could all pull out our own teeth, but you go to a dentist because they are experts in teeth.  Real estate agents are experts in the process of buying and selling homes. Buying a home can be an overwhelming experience, but a professional real estate agent will guide you through the entire process. From finding the right home to negotiating the right price, a real estate agent is your ally when it comes to buying a home.

 3.  Understand the OTHER costs of home ownership.

The cost of owning a home is more than just the purchase price.

On top of a mortgage payment, there are several monthly fees and expenses any first-time buyer should consider when becoming a homeowner: insurance, property taxes, utilities and maintenance. The roof may need to be replaced in 5 years, the furnace may need replacement soon, etc. and you might need to save up for those items.
 

4. A top 10 list of  “must have’s” in a home.

It is important to know what you are looking for in a home and understand that generally you can’t have it all.  If you have 3 kids and you want them all to have their own room, you should be looking for at least a 4 bedroom home.  If you need to be close to work, then be sure you are looking for homes near your work. 

The idea of the list of 10 “must have’s” is to figure out what aspects of a home you really need and what you don’t.  It is important to not only think about your current needs, but also the potential needs in the future. 


5. Location, location, and location.



After figuring out the financing the next 3 most important things are location, location, and location.  It sounds silly but you can change anything about a house EXCEPT for its location. A bad location puts you at risk for having trouble re-selling the home. Good school districts also boost property values. Even if the homebuyer does not have kids, buying a home near sought-after schools can help the resale value.


6. Decide on what to test for once you find your home.



Research home inspectors and decide what you plan on testing for after you have a home under contract, ex. radon, meth, mold, etc. Your real estate agent is a great resource for recommendations for home inspectors and should know what you need to test for in your area. Some homes are at greater risk for radon, meth, etc. so testing for them may be important.
 

7. What Are Closing Costs? 



This is probably the top asked question by first-time home buyers. When you get a mortgage loan, you will be charged closing costs that are an additional expense besides your down payment. All mortgage lenders are required by law to disclose in writing your estimated closing costs and fees, so you’ll know what will be ahead of time.
 

8. Foreclosures and short sales.

 

A “short sale” is a home that the current owners owe more than the value of the home. In order to purchase a short sale the bank must be willing to take less than what is owed on the property.  A foreclosure is a home that the bank has repossessed from the previous owner.


Foreclosures and short sales may present great deals, but proceed with caution. Buying a foreclosed home or short sale can be a risky proposition for a first-time buyer. Foreclosures often are sold “as is” and may not be in very good condition, whereas a short sale transaction can be lengthier and more complicated and frustrating than a typical home purchase. Many times we find that homes that are foreclosures or short sales are priced well but need so many repairs it may not actually be a better deal than buying a home that is maintained depending on what market conditions are.


9. Understand the value of the home you want to buy. 

Doing your homework can help you make a competitive offer. Before buying the home, determine the property’s market value by having your real estate agent conduct a comparative market analysis. This report shows what buyers were willing to pay for similar homes in the area, giving a good idea of what will make a fair offer.
 

10. It’s important to have a back-out plan.

Before signing on the dotted line, make sure to have a contingency plan in case things don’t go as planned during the home inspection or appraisal. If the home has a major flaw or doesn’t appraise for the purchase price, an escape plan allows the contract to be voided. A good real estate agent will keep this process on track and will ensure your back-out plan is viable.

For more tips on buying and selling a home or to find homes for sale visit www.SaltLakeOpenHouse.com.

Are you asking yourself how you can get your home ready to sell quickly? Here are 9 tips:

1. Boost curb appeal. This is something you always hear for good reason. Many people thinking of touring your home will do a quick drive-by first, often deciding on the spot if it is even worth a look inside.

2. Welcome visitors with an inviting porch. Even if you have only a tiny stoop, make it say 'welcome home' with a clean doormat, potted plants in bloom and, if you have room one or two pieces of neat porch furniture. Keep your porch lights on in the evenings, in case potential buyers drive by. Illuminating the front walk with solar lights is a nice touch too, especially if you will be showing the house during the evening.

3. Get your house sparkling clean. From shining floors and gleaming windows to clean counters and scrubbed grout, every surface should sparkle. You may want to hire pros to do some of the really tough stuff, especially if you have a large house.

4. Clear away all clutter. If you are serious about staging your home, all clutter must go, end of story. It's not easy, and it may even require utilizing offsite storage temporarily, but it is well worth the trouble.

5. Strike a balance between clean and lived-in. Think vases of cut flowers, a basket of fresh farmer's market produce on the kitchen counter or a bowl of lemons beside the sink.

6. Rearrange your furniture. In the living room, symmetrical arrangements usually work well. Pull your furniture off the walls and use pairs (of sofas, chairs, lamps) to create an inviting conversation area.

7. Open the closets. Open-house visitors will peek inside your closets. Closet space can be a make-it-or-break-it selling point for buyers, so show yours off to their full advantage by giving excess stuff away. Aim to have 20 to 30 percent open space in each closet to give the impression of spaciousness.

8. Beware of pet odors. Really, this can be a big one! If you have pets, get all rugs steam cleaned and be extra vigilant about vacuuming and washing surfaces.

9. Stage the outdoors too. Even if your condo has only a small postage stamp–size balcony, play it up with a cute cafe table and chairs, a cheerful tablecloth and even a little tray of dishes or a vase of flowers. When people look at this scene, they won't be thinking 'small,' they will be thinking, 'What a great spot to have breakfast'!

Radon, the Silent Killer

photo credit: Daniel Y. Go via photopin cc

We have been advising our clients to do radon tests when purchasing their homes these past few years and this year we have had several homes test positive.  It seems to be a fairly common problem here in the Salt Lake valley.  The good news is that fixing the problem it generally isn't very difficult.  Most of our clients have been able to remediate the problem for less than $1,500.



So why do we care so much about radon?  

According to The National Cancer Institute at www.cancer.gov, radon is the second most common cause of lung cancer.  Radon is estimated to cause about 21,000 lung cancer deaths per year, according to  EPA's 2003 Assessment of Risks from Radon in Homes (EPA 402-R-03-003).

What exactly is Radon?

Radon is a cancer causing, radioactive gas.  It is an invisible gas that you can't taste or smell.  Radon comes from the natural (radioactive) breakdown of uranium in soil, rock and water that eventually gets into the air you breathe.

Testing for Radon

Radon can be detected by a simple test that good home inspectors are able to test for.  There are a number of tests available in the home improvement stores.  Some home inspectors have the ability to test for radon as part of their home inspection.  The National Radon Program Services at Kansas State University offers discounted test kits available to purchase online.  Here is the link to their site http://sosradon.org/test-kits.

How to fix the problem

The good news about radon is that in order to remediate the problem it generally isn't a difficult process.  There are several ways to reduce the levels of radon in the home but the primary way is to use a vent pipe system and fan that pulls radon from beneath the house and vents it to the outside.  This is know as a soil suction radon reduction system.  There are many ways to ways to reduce the amount of radon and we recommend discussing it with a professional radon mitigator.

For more information on radon please visit  http://www.epa.gov/radon/pubs/citguide.html.

For more information about things to look for when buying a home please visit www.saltlakeopenhouse.com 

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Great Salt Lake Home Near Liberty Park

Home Affordability Modification Program (HAMP) Defined

I get a lot of questions these days about HAMP, HARP, and all the new government programs.  I put together this article to help explain how HAMP works. The information is readily available on various government websites.

Home Affordability Modification Program (HAMP)

The Home Affordability Modification Program, or HAMP,  makes it possible for eligible homeowners  to modify their current mortgage in order to reduce the monthly payments. This is accomplished by adjusting the interest rate, reducing the principal amount of the loan, extending the period of the loan,  or a combination of both.

To qualify for HAMP the homeowner must:

• Be the owner-occupant of a one- to four-unit home.

• Have an unpaid principal balance that is equal to or less than:

ο 1 Unit: $729,750

ο 2 Units: $934,200

ο  3 Units: $1,129,250

ο  4 Units: $1,403,400

• Have a first lien mortgage that was originated on or before January 1, 2009.

• Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.

• Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

Homeowners experiencing financial difficulties and/or at risk of foreclosure that have loans owned or guaranteed by Fannie Mae or Freddie Mac are allowed to participate in HAMP.  In addition to Fannie Mae and Freddie Mac, there are many other lenders receiving government incentives to participate in the program as well.

As of June 2010 over 1.2 million homeowners have started trials of HAMP.  Of those, only 396,021 have become permanent modifications.  50,000 trials will be converted to permanent modifications in June – a 15% increase from May.  On average HAMP has reduced homeowners monthly payments by  about $510. 

HAMP expires on December 31, 2012. Your trial modification must be in place by that date.

If you are struggling to make mortgage payments and HAMP sounds like an option for you, or if you have any questions please feel free to contact us.  We will personally evaluate your situation and find a solution.

For more information about HAMP, including FAQ's click here.   http://www.makinghomeaffordable.gov/borrower-faqs.html#19

Sources:

www.makinghomeaffordable.gov

www.financialstability.gov