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.

Short Sales on the rise in Utah

In case you haven't hear the news lateley, short sales in Utah are on the rise. In Salt Lake County Alone in March there were 1,650 short sales. That is 22% of the ALL the homes on the market. The good news is that the banks have finally figured out that they have to deal with the short sale process rather than waiting for the market to return. Now is the best time in recent years to get a good deal on a property in Utah. Prices have fallen, sellers are motivated, interest rates are still low for those that qualify (more on this later).