Do I Need A Home Inspection To Buy A House?
Do I Need A Home Inspection To Buy A House?
Yes, most definitely! You will never hear us say…”Don’t bother with a home inspection“, and if you ever do…we have gone crazy, so run, save yourselves!
Part of the responsibility of purchasing a home whether it is your first or your last is to do your due diligence and find out every thing you can about the property before you decide to buy it. One part of this due diligence is a home inspection.
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A professional home inspector will help you ” kick the tires” and poke around the house to make sure all is as it should be once you take the rose colored glasses off. This will be your opportunity to check behind the curtains, under the hood, and all the other clichés’ and really determine how sound the home is. Your inspector should be checking all the electrical outlets, the plumbing (that’s a biggy), heating and air conditioning, peering into the attic to make sure the roof is sound., exploring the basement (unless there IS no basement, then that would be dumb) to check out water leaks. Your inspector should check out the sprinkling system, the faucets, the oven, the dishwasher, and any other appliance that is negotiated in the purchase contract.
What this will accomplish is this….
- You will find out the problems that exist with the home and then, with your agent , negotiate any repairs that are needed.
- You will also find out any potential problems so that you can be prepared for the future.
Who should you get to do an inspection? There are lots of companies with professional inspectors to help you with this. These professionals will do an inspection and give you a full written report of what they find. A professional home inspection will run you from $200-300 for an average size home, a little less for a town home or condo.
You can also opt for a trusted friend or relative that is a contractor or in the building industry. The good thing is it will probably cost you less. The bad thing is in our experience they miss the important stuff (like whether the furnace is fit or needs to be green stickered) and concentrate on things that are usually beyond scope of what a home inspection is supposed to be (like wanting all the plugs moved in the finished basement because they were too far apart….true story!)
Anyway, if you want your home purchase to go smoothly and have no regrets when you move in…..Get A Home Inspection! For more information on this, or if you need a recommendation on who to call, drop us an email at loves@SALTLAKEHOMEFINDERS.com, we have several inspectors we have worked with and are happy to recommend.
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First Time Homebuyers-How Much Earnest Money Do I Need?
First Time Homebuyers-How Much
Earnest Money Do I Need?
Before we get to the “how much”, we should talk about “what is” earnest money.
Dating back to medieval days, the word earnest means “a state of mental intent” . We will ignore the mental reference here (don’t get me started) but the word “intent” is applicable. Earnest money given with an offer to purchase real estate literally means it is your Intention of forming a contract with the other party.
Now, earnest payment in a real estate contract varies depending on where you are. There is no national requirement for a certain amount of earnest money, but there are customs for real estate.
For example, East and west coast where housing is considerably more expensive, will require as much as 5% of the sales price to be delivered in option fees for a contract in real estate to be signed.
Here in Salt Lake the following is customary for earnest money in a real estate contract:
- $500 for regular real estate purchases under $200,000
- $1000 for regular real estate contracts for homes $200-350,000
- 1% of the sales price for real estate purchases of over $350,000
- $1000 for HUD homes- even the ones you can purchase for $100 down
Some Other Information on Earnest Money In Real Estate
Earnest money is like a deposit that is kept either with your Realtor’s company in a trust account, or in the trust account of a 3rd party (either an attorney or a Title Company). It will be applied toward the purchase of your home when you go to the settlement and closing of your real estate purchase.
Earnest Money is refundable on your real estate contract provided you cancel according to contingencies of your contract. Your buyer’s agent will take care of explaining these to you (well, if you are working with Us We will…blatant commercial here) and keeping track of those deadlines for your protection.
So, be prepared to offer a customary amount of earnest money if you are planning a real estate purchase. If you need help or have questions be sure to give us a call at the numbers above, or shoot us an email, we will be happy to help you in anyway we can!
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Read MoreBuying Your First Home In Salt Lake City, Ut
Buying Your First Home In Salt Lake City, Ut
We know, we have told you this before, now is a great time for buying your first home. There is a little bit of apprehension going on with you…I can feel it as you read this.
Jay and Kate had the same apprehension, in fact they didn’t even think they could Qualify for their first home, much less find one they could afford. But for some reason Jay called me one day on one of my listings and I, being the ever vigilant protector of buyers, began asking questions about his and Kate’s goals and dreams of buying their first home.
Now, note here, and Jay will tell you this, I did not bite, kick or use any form of torture on him, but after a conversation on the phone, I put him in touch with one of my favorite lenders who works with my first time homebuyers.
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He too was gentle, and, with a little more conversation, made the proud announcement to Jay and Kate that they
Here Is The Home They Bought
could indeed buy a home, their credit was not as bad as they thought and they did actually HAVE credit when they thought they didn’t, and with some of the programs available to first time homebuyers, they could buy their first home as soon as we found the right one.
So…. armed with that knowledge, plus a pre-qualification from their now favorite lender, off we went, searching for that perfect home, the one they told me about when they were telling me of their dreams. By the 2nd time we went out, we found a new construction foreclosure townhome that was a perfect fit for them, (and at 2200 sq ft 3 bd, 2 1/2 bth it’s as big as most homes!), was the right price, and for which they could help pick out some of the colors to finish it off. Wow!
Long story short, we got them into their darling home, they got $8000 for buying their first home to help with furnishings, (they bought a new living room set and a big screen tv), and they are happy! All because they called me one day.
They bought a home…you can too, especially with the help of your trusty buyer’s agent…me. Don’t wait though,if you want to buy your first home , get a great interest rate, and get the home you dream about, you need to move…Now. Call me and let’s get started. What we did for Kate and Jay, we can do for you! Now stop reading and call or text me at 801-819-9005. Right now!
Read MoreContingencies For Buying Homes In Salt Lake, Ut
Contingencies For Buying Homes In Salt Lake, UT
Buying a home in Salt Lake is an exciting experience, especially if it is your first home. As you go through the process of home buying, however, there will inevitably be a point in time where you experience the “What Ifs”.
What if’s” are those doubts that creep into your mind after the rose colored glasses come off …after you have found “The” home to which you are about to give your commitment, your time, your love…and your money. Thoughts like
- “What If”…I can’t afford the house after I buy it?
- “What If”…I find out the air conditioner doesn’t work?
- “What If”…I lose my job in the next month?
- “What If”… I don’t qualify for the loan?
- “What If”…I change my mind?
There are a thousand different “What If”s that go through buyers minds at different points in the process of homebuying, but don’t worry, in Salt Lake these “What Ifs” are handled through “Contingencies” that are written into the REPC ( Real Estate Purchase Contract).
Contingencies that are standard for homebuying in Salt Lake are those that deal with:
- Finance Contingency- Utah Real Estate Purchase Contracts protect the buyer if he cannot ultimately qualify for a loan or the loan terms and conditions (payment amounts or variable rate etc) are not what he wants.
- Appraisal Contingency-If the sales price of a property comes in below the sales price, the buyer has the right to cancel the real estate contract.
- Due Diligence Contingency- The REPC protects the buyer by allowing her time to inspect the property, find any problems with condition, and negotiate the remedy with the seller.
- Due Diligence Contingencies also allow the buyer to cancel the contract if he cannot remedy the condition, or if he just simply changes his mind.
During the contract period, usually 30-45 days, there is ample time for you to find the answers to all the “What Ifs” especially if you use a great Buyers Agent.
Your Buyers Agent , especially if you…ahem…use Us, will know how to protect you and address any concerns you may have by:
- Properly preparing you to make an offer- not only getting you pre qualified with a lender, but making sure you are in the right kind of loan for your circumstances, AND that you are comfortable with your price range and payment. They will help you make a plan for Earnest Money and whatever downpayment you will need as well.
- Counseling with you on what terms and conditions (contingencies) should be included in your offer to address all your concerns and to protect you in the transaction.
- Planning the Home Inspection with you and attending the inspection to help address any problems with conditions and help you find the answers to all the questions.
- Communicating with both you, the lender, and the seller’s agent to make sure the transaction goes smoothly, all contingencies are met, and to head off any problems that might occur.
So, never fear, contingencies when you buy a home in Salt Lake are there to protect you, the buyer. And if you have the right people working for you (smiling slyly here), your experience will be as it should be…..Fantastic!
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Til later, ciao
Read MoreMy Salt Lake Home-What if the Value Never Goes Up?
What If The Value Of My Salt Lake Home Never Goes Up?
This is a question that Steve and I get all the time, especially from first time home buyers preparing to purchase a home in the Salt Lake Market.
Well, ask and ye shall receive I always say (ok..sometimes I say that), so as I was pondering this very question, someone tweeted this little video entitled…wait for it ” What if the value of my home never goes up?“. So, being the ever vigilant Realtor and seeker of truth that I am for you, my very special clients and first time homebuyers, I watched the video and now am presenting it here for you to glean bits of wisdom.
Just a caveat, this video reports on the Financial Reasons For Home Ownership, and it is full of facts and figures (and that dreaded word “tax“) on why it makes financial sense (or cents, if I were being really cleaver here) to own a home, so if he gets a little long winded, be patient with him. He is a math type person, and knows not what he does. So, watch the video , then come back here and I will have another post for you entitled ” What If The Value Of My Home Never Goes Up Part 2” that will go further into this most pertinent of questions.
Watch The Video Here.
What If The Value Of My Home Never Goes Up?
As always, if you have questions, give us a shout, and when you need really great Realtors to help you make that most important purchase of your first home, call us. We are the best in town! OK, don’t inundate me with email over that, it’s my blog!
Til later, ciao
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