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Warning Signs That You May Not Want To Buy A Particular House

Home sellers don’t always give you the full details of the property they are trying to sell. It is unfortunate that if you were to hire a professional inspector for each viewing, it would get incredibly expensive. So, here are some red flags that you can look out for that could tell you to avoid the property.

Firstly, always look at the neighborhood. Does it look like everybody is leaving? Speak to others in the street and ask them about the community. Have a look at how the land is shaped. If the land slopes downwards towards the property, there is a chance that the foundations have been or will be damaged by flowing rain water. Use your nose: bad smells in or out the property are a bad sign. Bugs and insects are a bad sign as well. If there have been bugs or insects, people in the street are likely to know about it, so ask them.

The second key factor to look into is for you to figure out whether you are looking at a foreclosure or short sale property. Although it is true that these are the cheapest properties, they are also often in poor condition and in bad neighborhoods.

The reality is that you are the only one who can decide whether or not to buy a property. Additionally, if you find that there are certain problems, you could use this as a negotiating point to drive the price down. However, you must also be very careful that you aren’t buying into a money pit, or a property that you will never be able to sell again. Homes, whether purchased as an investment or not, are places for people to live in, which means they have to be inhabitable. It goes without saying that checking the condition of the property itself is very important, but the area it is in must be focused on as well. A property inspector is all you really need in order to look into the condition of the actual property after all. In terms of checking out a neighborhood, there is no data available to do this right, only your own personal feelings.

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Is Your Housing Deal About To Fall Through? What To Know About Breaching Contracts

Selling a house is not a simple process, and it can become even more complicated and expensive if the deal falls through; sometimes this can be a result of buyer retracting their offer at the very last minute. As a seller, here are some things you need to know about late-stage exits. In a real estate transaction process, a buyer will make an offer on your home. When it’s accepted, a contract is signed between the two parties. At that point, the property goes under contract.

This tells buyers and other agents that the seller has a buyer and is in the process of closing the deal. However, a home sale or purchase is not complete until both parties have signed all necessary legal documents transferring ownership of the home at closing. Buyers often have contingency clauses written into their contracts which are legal ways of backing out of the contract at no cost to them. The most common contingencies include:

Mortgage Loan Contingencies: The buyer must be able to obtain a mortgage loan for the property, usually within a specific period of time of signing the contract.
• Home Inspection Contingencies: The home for sale/purchase must either pass inspection or the seller must agree to make any necessary repairs noted by the inspector.
• Sale Contingencies: The home purchase depends on the buyer selling his or her property.
• Appraisal Contingencies: The price of the home for sale must either meet or be less than the official appraisal price.

If you’re under contract and your buyer is trying to exit it, here are a couple of things you stand to lose in the interim.

Interest from other buyers. 
Other buyers that may have been interested in making an offer on your home will begin looking at other properties. One of those buyers may have been able to meet the terms of the contract within your desired time frame, but by then, they are already gone.

Precious time. 
One of the most frustrating aspects of a housing deal falling through is that you have to find another buyer. This takes time and could also complicate your plans to purchase another home and/or your moving timeline.

Your next house. If you are buying another house and the contract on that property was based on selling your current house, you may find yourself unable to financially proceed. You may have to back out of the purchase of your next home or figure out another way to finance it if you were depending on the proceeds from your current home to purchase the next.

. You may lose money as a result of the deal falling through if you:

• Failed to include a contingency in your next home purchase contract and you need to break it
• Need to continue making the mortgage payment on your current home and make a mortgage payment on a new home or pay rent
• Have to continue paying to keep the property up to show the home when it’s put back on the market

There are steps you can take if your buyer wants to back out. First, make sure that both of the real estate agents involved are communicating and that both you and your buyer are getting copies of all changes or communications in writing. See if there are concessions you could make to keep your buyer on track to close. While you may not want to reduce the sale price of your home or lay out more money to make repairs, it may be worthwhile.

Also check if the potential losses due to a broken deal would be more costly than making desired concessions.Be sure to read your contract to determine what recourse you have as the seller. There just may be a clause in your contract that gives you legal grounds to sue your borrower for breach of contract and obtain a set percentage of the originally agreed-upon selling price. Check out this article on, Home Sale Falling Through? Here’s What to Do.

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Are There Any Hidden Costs To Selling a House? What Fees You Should Expect Pay Aside From the Commission To Your Realtor

If you’re about to sell your house, know that you are either going to be very pleased with the end result, or very disappointed. If you bought your house a long time ago for way below market value, you’re going to pocket a lot more change from the sale. On the other hand, if your home has since decreased in value, or the market temperature isn’t doing too hot, you’re going to be pretty upset when you start seeing your offers. Now is the time to decide whether or not you should wait to sell your home. 

Each house is different. Because of this, there’s no way to tell for sure what your house will sell for. It depends on all too many factors. Even homes priced correctly sometimes sell for less than their value. You’re also going to have to pay your realtor a commission; usually this is between 2-6%. It depends on every realtor. Note that they have a set amount that their company charges. If they work for themselves, they’ll be able to negotiate their commission percentage fee. You’re also going to have to pay commission to the selling and the listing agent. These commission prices are not going to be cheap when you add them all up. Read: Common real Estate Myths That Plague Buyers.

You’ll also have to pay for title insurance. The buyer does not pay it. You have to purchase title insurance to show the buyer that the house has a clear title, stating that all judgments, liens, or loans are paid off. The closing company will charge you a fee for closing, so you’ll incur that expense as well. This can range from a few hundred to almost a grand. You’ll also have to pay fees to record any mortgage information that needs to be released. These also run a few hundred dollars. 


When you are selling your house, you are responsible for the taxes and the utility bills up until the very day that you close on the house. Your taxes have to be paid at closing before the house is sold. If the escrow account is holding extra money, note that it will be returned to you after closing.

Neighborhoods that have an Homeowner’s Association have to pay a monthly fee. These fees will probably be around two-hundred dollars. The contract will decide who pays these fees, so this is something you’ll figure out in negotiation.

Understand that the mortgage pay-off on the house will be higher than you expect it to be. The mortgage pay-off is calculated all the way up until the day the house sells (same with your taxes). Every day after that principal amount is calculated by the bank, the interest will increase. This can come as quite a surprise to sellers who expect their payoff to be the same as their last mortgage statement principal balance.

The best way to get the most money when selling your house is to have your home in top condition when it is listed on the market. Most buyers don’t want to purchase a home that needs a lot of work; because of this, try to make sure that any and all touch-ups that you are able to afford. See: What Does It Cost to Sell Your House?

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What You Can Expect During An Appraisal, And How You Can Prepare For One

If you are selling your home, you can expect a visit from a professional appraiser. The buyer and lender will both want to see the appraised value of your home. While you can’t change their mind about the number they come up with, it is always valuable to know what the appraiser will be looking for.

So, how does the appraiser determine the value of my home?
At its most basic, a home is made up of a foundation, walls and a roof. All three of these play major roles in the functionality and the reliability of a dwelling and the appraiser will pay serious attention to all of them. He or she will be looking for defects in the general construction of the home, as well as for any damage to these components. See: Ten Things Your Appraiser Doesn’t Want You to Know.

An appraiser will focus on any roof or foundational issues first, as these are two of the things that can decide whether or not a home is habitable. Don’t forget that the reason the appraiser is there is to report back to the lender who will be providing the buyer with a mortgage. The bank wants to make sure that they are not lending money on a property that does not have the decent equity in it.

People tend to prefer larger homes and larger lots, so you can expect these to come into play when your home is evaluated. The more bedrooms and bathrooms you have, the more you can expect the house to be worth. Home buyers like the opportunity to expand and are more likely to desire a property that will allow this. The square footage of the home will make up a large portion of what goes into figuring out the appraised value of the home.

While the condition of the exterior is important, the interior condition is equally as important to an appraiser when assessing value. Things like windows and doors, flooring, walls, plumbing, electrical, kitchen and bathroom are all important parts of a home. The appraiser must know about all of these and be able to tell good from bad, and you can rest assured that he or she will look closely at yours. This is true even down to the appliances your home includes and the light fixtures you have installed.

The appraiser will be very interested at any improvements you have made and the quality of those improvements. A new floor, a renovated bathroom or kitchen, new appliances, or an HVAC system – all of these are considered by the appraiser to determine overall value. Buyers and lenders love newer appliances and quality renovations because they contribute to the lasting value of the property.

These can include anything that make a home special. For example, built-in pools, heated floors, heated toilets, elevators. Even basic things such as fireplaces, garages, or alarm systems. All of these special additions to the home will certainly be of interest to the appraiser in terms of adding value to your home. For more information, read this article on Home Appraisal: How to Get Maximum Value.


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