What is Fractional Ownership?

Fractional ownership is a type of real estate ownership in which multiple parties own shares of a property. Each fractional owner has the exclusive use of the property for a specified period of time, typically one week or one month.

Fractional ownership can be an attractive option for vacation home buyers who want to enjoy all the benefits of ownership without the hassle and expense of maintaining a property full-time.

Before you purchase a fractional ownership property, it’s important to understand how the arrangement works and what your rights and responsibilities will be as an owner.

Benefits of Fractional Ownership

Fractional ownership is a great way to get into the real estate market without having to commit to a full purchase. It also allows you to share the costs and responsibilities of ownership with other people. This can be a great way to make your dream of owning a vacation home a reality.

There are many benefits to fractional ownership, including:

-Access to upscale properties that you may not be able to afford on your own
-The ability to use the property for a set number of days each year
-Shared costs and responsibility for maintenance and upkeep
-A built-in group of people to enjoy the property with you

The Buying Process

The process of purchasing a fractional ownership property is relatively simple. The first step is to find a broker who specializes in fractional ownership properties. Once you have found a broker, they will help you find the right property for your needs. Once you have found the perfect property, you will need to negotiate the price and terms of the sale with the owner. Once the sale is finalized, you will need to pay a small fee to the broker and then sign the contract.

Researching Potential Properties

Once you have decided on the location of your fractional ownership property, it is time to start researching potential properties. The first step is to identify what type of property you are looking for. Are you looking for a condo, townhouse, or single-family home? Once you have determined the type of property you are interested in, you can begin to narrow down your search by price range, number of bedrooms and bathrooms, and other amenities that are important to you.

After you have created a list of must-haves for your fractional ownership property, it is time to start looking at specific properties. The best way to do this is by searching online listings or contacting a real estate agent in the area where you would like to purchase a property. When looking at online listings, be sure to pay attention to the photos and descriptions of each property to get a better sense of what the home looks like and whether it has the features that you are looking for. Once you have found a few potential properties that meet your criteria, it is time to schedule appointments to view them in person.

Working with a Realtor

When you purchase a fractional ownership property, you will be working with a real estate agent to help you find the right property and negotiate the purchase price. Here are some tips to help you get started:

1. Determine your budget and what type of property you are looking for.

2. Find a reputable real estate agent who specializes in fractional ownership properties.

3. Work with your agent to search for properties that fit your criteria.

4. Once you find a property you like, negotiate the purchase price with the help of your agent.

Financing Options for Fractional Ownership

Assuming you are looking to finance a fractional ownership interest in a property, there are a few options available to you. You could take out a loan from a lending institution, use your own personal savings, or seek out investors.

Taking out a loan from a bank or another lending institution is one way to finance your fractional ownership interest. In order to secure financing, you will likely need to put down a sizeable down payment and agree to monthly payments. The terms of the loan will vary depending on the lender, so be sure to shop around for the best rate.

Another option is to finance your fractional ownership stake with your own personal savings. This can be a good option if you have the financial means to do so and don’t want to incur any additional debt. However, keep in mind that using your savings means you won’t have that money available for other purposes.

You could seek out investors to help finance your fractional ownership stake. This can be done by selling shares in the property or by taking on partners who will each have an ownership stake in the property. If you go this route, be sure to draw up legally binding agreements so that everyone understands their rights and responsibilities in relation to the property.

Document Considerations and Closing Costs

There are a few key things to keep in mind when considering purchasing a fractional ownership property. First, be sure to review all documents carefully and consult with an attorney if you have any questions. It is also important to be aware of any closing costs that may be associated with the purchase.

Be sure to review the following documents carefully:

• Purchase Agreement: This is the contract between you and the seller that outlines the terms of the sale. Be sure to read it carefully and understand all clauses before signing.

• Title Documents: These documents show proof of ownership for the property. Make sure that there are no outstanding liens or encumbrances on the title before proceeding with the purchase.

• Property Disclosure Statement: This document contains important information about the property, including any known defects or problems. Be sure to read it carefully and disclose any concerns to the seller before making an offer.

Closing costs can vary depending on the type of property and the state in which it is located, but they typically range from 2% to 5% of the purchase price. Be sure to factor these costs into your budget when considering a fractional ownership property purchase.

Maintenance and Upkeep of a Fractional Property

Assuming you’ve already gone through the process of purchasing a fractional ownership property, here are some tips on maintaining and keeping up your property.

First and foremost, it is important to develop a good relationship with the management company that oversees your property. They will be responsible for handling any day-to-day maintenance and upkeep issues, as well as any necessary repairs. Be sure to keep communication lines open so that you can address any concerns in a timely manner.

In addition, it is important to be proactive in maintaining your property. This means regularly inspecting it for any potential issues and addressing them before they become major problems. For example, if you notice a small leak in your bathroom, have it fixed immediately rather than letting it go until the issue becomes a bigger and more expensive problem.

Remember that as a fractional owner, you are part of a larger community of owners. This means that it is important to be considerate of your neighbors and do your part to keep the property clean and tidy. By working together, you can ensure that everyone enjoys their time at the fractional ownership property.

Final Thoughts

Purchasing a fractional ownership property is an excellent way to get the most out of your real estate investments. By following the steps outlined in this article, you should have all of the information needed to make a well-informed decision on whether or not fractional ownership is right for you. As with any major purchase, it’s important that you do your own research and ask as many questions as possible before signing on the dotted line. With a little bit of hard work and careful consideration, purchasing a fractional ownership property can be one of the best decisions you ever make.

Closing day is the final step in the home buying process where all parties involved come together to complete the sale of a property. It can be an exciting and nerve-wracking experience for both buyers and sellers, as it marks the official transfer of ownership.  We will provide you with a detailed overview of what to expect on closing day and how to prepare for this important milestone in your home-buying journey.

What Happens on Closing Day?

On closing day, all parties involved in the transaction will meet at a designated location, usually at the office of either the buyer’s or seller’s attorney or at a title company. The purpose of this meeting is to review and sign all necessary documents related to the sale of the property.

The following are some key steps that typically take place on closing day:

1. Final Walk-Through: Before signing any paperwork, buyers have the right to do one last walk-through of the property. This is done to ensure that there are no major changes or damages since their last visit and that all agreed-upon repairs have been completed by the seller.

2. Reviewing Documents: Once everyone is satisfied with the condition of the property, it’s time to get down to business. Buyers will be presented with a stack of documents that they need to carefully review and sign. These may include loan documents from their lender, title insurance forms, deed transfer documents, and more.

3. Payment: Buyers are required to bring a cashier’s check or wire transfer for the remaining balance of the purchase price, as well as any closing costs and fees. These payments are typically made directly to the closing agent or attorney.

4. Transfer of Ownership: After all documents have been signed and payments have been made, the deed and other legal documents will be transferred from the seller to the buyer. This officially marks the change in ownership.

5. Distribution of Funds: Once all paperwork has been completed, funds will be distributed accordingly. This includes paying off any outstanding loans on the property and distributing any remaining funds to the seller.

6. Closing Costs: Buyers will also be responsible for paying closing costs which can include appraisal fees, attorney fees, title search fees, and more. These costs are typically outlined in detail on the closing statement provided by the lender.

7. Keys and Possession: Once all documents have been signed and funds have been distributed, buyers will receive the keys to their new home! They can then take possession of their new property.

Overall, closing day is a crucial step in the home-buying process that requires attention to detail and careful preparation. It’s important for both buyers and sellers to come prepared with all necessary documents and payments to ensure a smooth transaction.

Pre-Closing Checklist: What to Do Before the Big Day

As the big day of closing draws near, it is important to make sure that all necessary tasks are completed and everything is in order. This pre-closing checklist will help you stay on track and ensure a smooth closing process.

1. Review the Purchase Agreement
The purchase agreement is a legally binding contract between you and the seller. It outlines all the terms and conditions of the sale, including the agreed-upon price, contingencies, and closing date. Before closing day, review this document carefully to make sure everything is accurate and as agreed upon.

2. Schedule a Final Walk-Through
One of the most crucial steps before closing is scheduling a final walk-through of the property. This lets you inspect the property one last time before signing on the dotted line. Ensure that any repairs or changes requested during negotiations have been completed satisfactorily.

3. Prepare Your Funds
Before closing day, you will need to prepare your funds for payment. This may include cash for down payment, closing costs, taxes, insurance premiums, etc. Talk to your lender or escrow agent beforehand to determine how much money you will need and what forms of payment are acceptable.

4. Get Homeowners Insurance
Homeowners insurance protects your home against damage or loss due to unforeseen circumstances such as natural disasters or accidents. It is important to secure homeowners insurance before closing day so that your property can be fully protected from day one.

5. Notify Utility Companies
Make arrangements with utility companies such as electricity, gas, water, and internet to transfer services into your name on closing day. This will ensure that you have uninterrupted service after moving into your new home.

6. Get a Cashier’s Check
Ask your lender or escrow agent if a cashier’s check is required for closing. If so, make arrangements to obtain one prior to closing day in the correct amount.

7. Review Closing Disclosure
The Closing Disclosure is a document provided by your lender that outlines all of the final terms of your loan, including interest rate, monthly payments, and closing costs. Review this document carefully before closing day to ensure everything is accurate.

8. Bring Required Documents
On closing day, be sure to bring any required documents such as government-issued ID, proof of insurance, and any additional documents requested by your lender or escrow agent.

9. Attend the Closing Appointment
Closing appointments typically take place at the office of the title company or attorney handling the closing process. Be sure to attend the appointment and bring all necessary documents and funds with you.

10. Sign All Documents
During the closing appointment, you will be required to sign numerous documents related to the purchase of your home. Read each document carefully before signing and ask any questions you may have.

Things to Bring on Closing Day

Closing day is the final step in the home-buying process and marks the official transfer of ownership from the seller to the buyer. This can be an exciting and nerve-wracking time, as there are many important tasks to complete before you can officially call yourself a homeowner. One crucial aspect of closing day preparation is making sure that you have everything you need for a smooth and successful closing. To help you stay organized, here is a detailed list of things to bring on closing day.

1. Government-issued ID: It’s essential to bring a valid government-issued photo identification such as a driver’s license, passport, or state ID card on closing day. This will be needed for identity verification purposes during the signing of legal documents.

2. Proof of homeowners insurance: Before finalizing your mortgage loan, your lender will require proof of homeowners insurance coverage. Make sure to bring along this documentation to avoid any last-minute delays.

3. Certified or cashier’s check: Most likely, you will need to bring a certified or cashier’s check for the down payment and closing costs unless you’ve made other arrangements with your lender beforehand.

4. Your checkbook: While some fees may have been paid in advance or rolled into your loan amount, it’s always wise to have your checkbook handy for any unexpected expenses that may arise on closing day.

5. Purchase contract and addendums: You should also bring all copies of the purchase agreement and any addendums that were agreed upon between parties during the negotiation process.

6. Closing disclosure and loan estimate: These are two documents that your lender is required to provide you with at least three days before closing. Make sure to bring them with you for comparison purposes and to ensure there are no last-minute changes.

What to Expect on Closing Day

Closing day is the final step in the home-buying process and marks the moment when you officially become a homeowner. It is an exciting and nerve-wracking time, as it involves a lot of paperwork, signatures, and financial transactions. We will go over what to expect on closing day so that you can be well-prepared and make the most out of this momentous occasion.

1. Final Walk-Through:
Before heading to the closing table, you will have one last chance to do a final walk-through of the property. This is your opportunity to ensure that everything is in the same condition as when you first saw it and that any agreed-upon repairs or changes have been made. If there are any issues, make sure to address them before proceeding with the closing.

2. Closing Disclosure:
The Closing Disclosure (CD) is a document that outlines all of the final terms of your mortgage loan. It includes important details such as interest rates, monthly payments, closing costs, and any other fees associated with your loan. You should review this document carefully and compare it to your Loan Estimate (LE) to ensure there are no discrepancies.

3. Required Documents:
On closing day, you will need to bring certain documents with you such as a government-issued ID, proof of homeowner’s insurance, and any other documents requested by your lender or real estate agent. Make sure to have these documents readily available beforehand to avoid delays during the closing process.

Tips for a Smooth Closing Process

The closing process is the final step in purchasing a home and can often feel overwhelming for first-time buyers. However, with proper preparation and organization, it can be a smooth and stress-free experience. Here are some tips to help you navigate through the closing process with ease.

1. Review all documents beforehand: Before the closing day, your real estate agent or attorney will provide you with a stack of documents to review and sign. It’s important to carefully read through each document and ask any questions you may have. This will ensure that everything is accurate and in line with what was agreed upon during negotiations.

2. Get a pre-closing walkthrough: A pre-closing walkthrough allows you to inspect the property one last time before signing on the dotted line. Make sure to check that all repairs and agreed-upon changes have been made by the seller. This is also a good opportunity to test all appliances, lights, faucets, etc., to ensure they are in working condition.

3. Have all necessary funds ready: Closing costs can add up quickly, so make sure you have enough funds available for payment on closing day. These costs typically include lender fees, appraisal fees, title insurance fees, and homeowners insurance premiums, among others. Be sure to discuss these costs with your lender beforehand so there are no surprises on closing day.

Post-Closing Checklist: What to Do After the Closing is Complete

Once the closing is complete and all necessary documents have been signed, it may feel like a huge weight has been lifted off your shoulders. However, there are still a few important things to take care of before you can fully celebrate becoming a homeowner. This post-closing checklist will guide you through the steps you must take after the closing.

1. Review Your Closing Documents: It’s crucial to thoroughly review all of your closing documents, including the purchase agreement, settlement statement, and mortgage note. Make sure everything looks accurate and matches what you agreed upon during negotiations. If you notice any discrepancies or have questions, don’t hesitate to reach out to your real estate agent or attorney for clarification.

2. Get in Touch with Your Insurance Provider: Now that you officially own the property, it’s time to make sure it’s properly insured. Contact your insurance provider and update them on the new ownership status so they can adjust your coverage accordingly. You may also want to consider getting additional insurance such as flood or earthquake coverage if applicable.

3. Change Your Locks: For security reasons, it’s always recommended to change the locks on your new home after closing. You never know who may still have keys from previous owners or contractors who worked on the property before it was sold.

4. Set Up Utilities: Before moving into your new home, make sure all necessary utilities are set up in your name. This includes electricity, gas, water, internet/cable services, and any other essential utilities for your new home. You don’t want to be without heat or electricity on your first night in your new home.

5. Update Your Address: Don’t forget to update your address with the post office, bank, credit card companies, and any other important accounts. This will ensure that you receive all of your mail and bills at your new address.

6. Keep Track of Important Documents: Make sure to keep all of your closing documents in a safe place for future reference. These may include the purchase agreement, settlement statement, mortgage note, inspection reports, and title insurance policy.

Conclusion

Closing day can be an exciting but overwhelming experience for homebuyers. By following this checklist and preparing in advance, you can ensure a smooth and stress-free closing process. From organizing your documents to conducting a final walkthrough of the property, these steps will help you feel prepared and confident on closing day. Congratulations on becoming a homeowner, now go enjoy your new space!

Buying a home has lots of steps. Once a home buyer is “under contract” on a property, it’s common for them to hire a professional home inspector as the next step. This contingency allows the home buyer to determine whether anything is wrong with the property before purchasing it.

A home inspection typically takes 2 to 4 hours and can reveal plenty of problems with a home. This article covers the 18 most common issues found during a home inspection.

 

1. HVAC Needs Servicing

Your HVAC system uses almost half of the energy in your home. It works hard every year to keep your home climate-controlled. Therefore, it tends to need servicing quite often. Unfortunately, many people do not service their HVAC systems yearly, which results in issues during the home inspection.

The average home inspector will not do an in-depth job of inspecting the furnace and AC. If you purchase a home with an HVAC system over ten years old, hiring an HVAC specialist to perform a complete system check is wise. This step will help you determine the remaining life of the unit and project future repair costs.

Some common HVAC issues include:

• Dirty Filters (most common issue)
• Improper Flue Installation
• Dirty Coils
• Unlevel Pad
• Cracked Heat Exchanger
• Broken Condenser

2. Water Intrusion

Water damage can be tricky to identify. Thankfully, inspectors are fully trained to find this issue and recommend repairs.

Your roof will often be the first spot for water to leak and will travel downwards. Inspectors will usually start in the attic when looking for water damage from the top of the house. Some of the signs of water damage include the following:

• Cracks and holes– Cracks or holes on the exterior walls are prime spots for water to enter your home.
• Warped floors and damp carpets
• Stained walls and ceilings– Even if the stain results from an old leak that has been repaired, inspectors will still check for mold buildup.
• Peeling paint and wallpaper– This issue may indicate a leak behind the walls.
• Musty odors– This problem can indicate mold buildup, often caused by leaks.

Some water intrusion may result from small leaks, but your inspection report will include details on the breadth of the problem. In addition, it will explain the steps to take to remediate the situation if needed.

3. Roof Problems

Your roof will be one of the critical components an inspector will pay attention to during a home inspection, as it’s one of the essential parts of your home. If the roof leaks, there will be a list of other issues that will follow, which will cause some buyers to back out of a deal. It can be a costly fix on their part.

The condition of your roof will be affected by many factors, some of the main ones being the weather. If you live in an area with a harsh climate, your roof will require more attention than one in a mild climate.

Here are some of the everyday things an inspector will look for during a roof inspection:

• Sagging– This problem occurs when the joists of your home are weakened and cannot properly hold the roof in place. This issue can be exacerbated by large amounts of snow or poor drainage from your roof.
• Overall condition of the roof sheathing– Particularly in areas around chimneys or other roof penetrations and valleys of the roof.
• Soft spots that indicate leaks– These can be further identified by a deeper look in your home’s attic.

An inspector will assess your roof in two different ways. First, if the weather allows and the environment is safe, they will walk the roof to understand its condition.

Second, they will enter your attic. Working in the attic allows them to see areas where current or past leaks have occurred. They will also see signs of roof sagging, spreading, and twisting of the rafters.

4. Electrical Wiring Issues

Every year, it is estimated that 51,000 of the fires in homes are due to electrical wiring problems. So, the electrical system is another critical component of a home’s inspection. Most newly built homes will not have electrical issues. However, older homes with outdated wiring areas are susceptible to fires.

Some of the most common electrical issues an inspector will find are as follows:

• Exposed wiring and fraying
• Painted outlets– which can cause overheating. Common in properties once used as rentals.
• Reversed polarity– This means that the plugs’ hot, neutral, and ground slots have somehow been mixed up.
• Aluminum wiring– Aluminum was considered more cost-effective than copper wiring in the late ’60s and early ’70s, but it can contribute to the potential for a fire in your home.
• Improper modification of electrical panels– This issue can cause intermittent flickering of lights or your switches and outlets not working correctly.
• Missing knockouts– or rectangular shapes missing in a panel

An inspector will check the condition of your electrical panels and outlets, your light fixtures, and the type of wiring in the home. They will include this suggestion in your report if they feel a system needs to be updated. However, if they think a specific area is vital to be fixed upon move-in, they will flag it.

Some electrical fixes will be of relatively low cost. For example, if the entire home needs to be re-wired, it can cost up to $30,000+.

5. Poor Ventilation

While you likely will not run into issues with the ventilation in newer builds, older homes usually have ventilation problems. Poor ventilation will lead to moisture buildup, wood rot, termite infestations, mold development, and foundation issues. Home inspectors will trek into your attic to determine the state of your home’s ventilation.

Why is ventilation important? Poor ventilation can result in much more work for your HVAC system to keep your home cool and comfortable.

If there is not enough ventilation within your home, a large amount of heat will build up in your attic, raising the overall temperature of your home and sending your cooling system into overdrive. Proper ventilation equals more energy efficiency.

6. Poor Drainage and Grading

What is the importance of grading regarding your home’s foundation? Grading refers to the slope present in the area surrounding your home’s foundation. Ideally, you want the slope to face away from your house. Therefore, the water will flow away from the structure rather than towards it.

The insufficient slope will result in water pooling towards your home’s foundation. This problem can result in a flooded basement, damp crawl spaces, cracks in the foundation, and even shifting in your home’s foundation. Structural issues can be very costly.

In an ideal world, the grading surrounding your home is anywhere from three to five percent slope away from the property. In other words, for every two or three feet you step out from your property, the land should drop by two or three inches.

How can you tell if your home might have some issues with the grading on your lawn? Here are some signs to look for:

• Windows that are not square or that look off-kilter
• Interior doors with significant, uneven gaps at the top when closed
• Interior doors that visibly swing to one side or the other when left ajar
• Floors that visibly slope to one side or the other

Correcting grading around your home can be pretty costly. However, depending on who you hire to help with the issues, they may re-grade the land. This step will involve adding fill near your home’s foundation and tamping it down.

The inspector may also recommend installing a French Drain at a low point in your yard. Water is directed into the drain and out to a different part of your yard that can handle it.

Grading your yard is a tough job. Although it can be costly to fix, you will face an even heftier price tag if it is left unattended and damages your home’s foundation.

7. Plumbing Issues

Plumbing issues within a home can be pretty common and very costly. Unfortunately, homeowners may not even realize an issue until inspection, as most plumbing issues present as low water pressure or a slow drain.

The majority of the time, an inspector will pay attention to the following when inspecting your plumbing:

• Whether or not water flows from your taps effectively
• Whether or not your drains work properly
• And whether or not your toilets flush

A home inspector will not be as detailed in their plumbing inspection as a professional plumber; however, they can give you an overview of the issues that need to be addressed upon move-in, if any.

They will likely recommend a professional plumbing inspection if they think there may be a more significant issue outside their expertise. However, rest easy knowing that most plumbing issues found during a home inspection are minor.

8. Foundation Flaws

Foundation problems are perhaps one of the most problematic areas of a home inspection for most buyers. Your home’s foundation is one of the most critical components of its overall structure, so finding an issue here can be very stressful and costly to resolve.

The following factors can cause foundation issues:

• Drainage problems – If your yard is sloping or grading is off, water can settle near your home’s foundation, leading to damage.
• Missing or inadequate steel reinforcement in the foundation
• Intrusive tree roots
• Installation of a second story without reinforcing the original footings
• Natural occurrences like earthquakes, sinkholes, or landslides.

How can you tell if your home may have foundation issues? One of the most significant signs will be cracks in the interior or exterior walls of the house. Some minor signs include tile cracks, bowed walls, siding separation, or uneven floor.

In a perfect world, the seller will have done their best to uncover any foundation issues before listing their home, as not doing so could result in costly negotiations. However, some sellers will wait to see what the market will offer for their home and not worry about fixing an issue that could cost them thousands of dollars.

Therefore, thoroughly inspecting your foundation is a good idea when buying a house.

9. Blocked Gutters or Downspouts

Many people do not stop to consider the importance of gutter conditions. When inspecting your gutters, the inspector will look for the following:

• the guttering system is adequately sized for your home to protect against runoff,
• that the channels are free of rust, cracks, and holes that will cause leaking and
• that the downspouts divert water away from the home’s foundation

Why is it so important to look at your gutters during a home inspection? Because they play a massive role in keeping your home safe from water intrusion.

If your gutters are blocked, cracked, or not diverting the water far from your home, it will settle near your home’s foundation. Over time, erosion will occur, and you will likely develop cracks in your home’s foundation, the perfect environment for water to enter your home.

In addition to the toll it will take on your home’s foundation, water inside your home can find its way into wooden joists, etc. This problem will encourage the development of mold, wood rot, and termite infestation.

Although maintaining your gutters may be annoying, the payoff is excellent. But, of course, you’ll want to deal with any water issue up front before moving into the home.

10. Mold

This component of the home inspection is heavily tied to issues with your plumbing and ventilation systems. For example, if a leak is present, you live in a humidity-heavy climate, or the ventilation systems in your home are outdated, you will be at high risk for developing mold within your home.

Contrary to popular belief, mold will not always be visible to the naked eye. However, you can usually smell mildew in the air when it is present. Mold is prevalent around windows and doors, but it is also a frequent visitor in your bathroom and kitchen. When looking over your home, inspectors will be on the lookout for the following signs:

• A musty, mildew smell
• Signs of warping or cracking around materials such as tile, caulk, etc.
• Moisture buildup in areas with low light or visibility (prime spots for mold)
• Visible mold that will lighten upon application of bleach

Why is it essential to identify whether or not there is mold in your home?

The first obvious answer is that it can lead to health issues like trouble breathing, itchy eyes, sore throat, and coughing. But mold can also indicate a leak inside or outside your home, which you will want to find before it becomes a more significant issue.

If mold is found in the home, there are many ways in which you could try to remove it on your own. However, if the problem is too severe, hiring a professional for mold remediation in your home is always recommended.

11. Termite Damage

Termite inspections are one of the most recommended portions of a home inspection following a purchase. Why is this the case? Because you often cannot see their damage from the outside.

Termites are small insects that feed on the cellulose found in plants, wood, dead leaves, and soil. They often become more active in the spring, feeding on wood from the inside out.

Most of the time, once you notice termite damage with your naked eye, it is too late to resolve the problem just by tinting the home. In addition, replacing portions of the wood in your home’s walls, roof, or foundation will be a very costly.

What are some of the signs of termite damage your inspector will be looking for?

• Buckling floors
• Dry rot in wood floor joists
• Wood rot in door and window frames
• Soft/damp wood
• The presence of mud tubes bored into the soil near the foundation or directly into the home.
• Swarms around indoor or outdoor lights
• Small mounds of what looks like sawdust

Where will your inspector look for termite damage? One of the first areas they will look at will likely be in your crawlspace or basement. These areas are often the first to show signs of moisture, creating the perfect environment for these wood-destroying organisms. Other areas include the following:

• Wall cavities
• Firewood stacked against the side of a home
• Mulch or other landscaping materials near your home’s walls and foundation
• Siding
• Flooring
• Window Frames

A pest control contractor will likely be brought in for proper assessment and treatment if termite damage is noted during the inspection.

12. Wood Damage

This component of a home inspection is very closely tied to termite inspections. During this portion, exposed wood will be what inspectors will focus on the most.

In nature, wood rot is a vital part of the life cycle, but it is not something you want to have present in the house you plan on making your home. Wood rot can lead to the following problems:

• Deterioration of support posts and beams
• Rotted floors and ceiling joists
• Destroyed roofs
• Unstable porches and decks

What causes wood rot? The most common culprit is a combination of moisture and fungi coming together to make a tiny home within the wood. There are three types of wood rot that an inspector will be keeping an eye out for:

• Brown Rot– AKA “dry rot.” The surface of the wood will appear dry, but upon further inspection of its interior, you will find its cellulose has been targeted, breaking into small, cube-like bits.
• White Rot– Noted in wood that takes on a white color and spongy feel.
• Soft Rot– Noted by its honeycomb-like appearance after it breaks down cellulose in the wood. This rot is not commonly found in houses but can be.

If present, repairing wood rot can cost an individual upwards of $20,000.

13. Appliance Issues

Home inspectors examine the appliances within a home to make sure they are in good working order.

Here are some of the typical ones an inspector will look over:

• Your stove range and oven
• The cooktop
• Oven and cooktop vents
• Dishwashers
• Garbage disposals
• Built-in microwaves that convey with the sale of the home

Keep in mind that inspectors are not experts on these appliances. Therefore, they will be unable to fix them themselves if an issue is noted. However, it is their job to ensure that they are working correctly and do not pose any safety hazards to you and your family when you move in.

They often perform tests and checks on the appliances and note any issues in the report. Some of the most common problems include the following:

• Range controls or burners not turning on or heating properly
• Ovens not warming to the proper temperature. Temperature lights not working
• Range hoods not working or being vented into the attic
• Dishwashers not running through an adequate cycle
• Garbage disposal blades not working or not turning on at all.

14. Radon

A radon inspection is usually performed as part of a home inspection. However, sometimes, a buyer may have to request this portion of the inspection specifically.

Why is a radon test recommended? Radon is a colorless, odorless gas that occurs when uranium in soil breaks down. Radon gas is released as a byproduct of that breakdown and can cause many health problems, such as lung cancer.

Although radon is not dangerous in small amounts, it is potentially unsafe when it builds up in your home. In addition, symptoms can take years to present themselves, so it’s essential to consider a radon test during the inspection.

There are a few factors that will indicate a higher risk of radon exposure:

• Location– Areas such as the Appalachian Mountains and upper Midwest have higher amounts of radon present, as sheetrock and wood are frequently used building materials in these areas.
• Foundation Type– Homes built with dirt floors in basements or crawl spaces have nothing to protect against the rise of radon from the soil.
• Foundation Cracks– Cracks provide a perfect spot for the gas to seep into your home.
• Well Water– Groundwater can have radon present in it. Therefore, it is essential to have these levels checked regularly in wells.

What happens if radon is found to be present during the inspection? A professional radon mitigator will be recommended to you. This step can cost anywhere from $800-$1500 to resolve. It is costly, but the effect radon can have on your family’s health may be worse.

15. Building Code Violations

All homeowners would go through the proper channels when building additions onto their homes in a perfect world. Unfortunately, the reality is different.

Adding onto your home can exponentially increase the home’s value, which is why people do it. But, unfortunately, when they realize how much work is involved, they are also tempted to cut corners.

Building codes vary from place to place, but there are some put into place that is nationwide. So, what are some of the most common nationwide building code violations your inspector will be on the lookout for?

• Missing or defective GCFIs– GCFI stands for Ground-fault circuit interrupter. They are required for outlets in the kitchen, bathroom, garage, and all outdoor circuits. Simply put, they protect against electrical shocks.
• Handrails along staircases without returns– Handrails are supposed to be installed with a “return,” a small wooden piece that ends into the wall.
• Misplaced smoke alarms and carbon monoxide detectors– Codes require a smoke alarm on each level of the house and outside every bedroom.
• Deck flashings– Flashing needs to be installed between the deck ledger board and the house, and the ledger needs to be firmly attached. In a lot of DIY decks, ledgers will pull loose from the structure. As a result, these decks can collapse, especially when loaded with people.
• Basement bedrooms with no window for egress– Each bedroom in a home should have a window present to allow for escape if an emergency occurs.
• Bad electrical work– This electrical problem is often a telltale sign of a DIY project and can result in significant fire hazards.
• Bathroom vents leaking into the attic– These vents should always vent outside of the home

If any of these issues are present, it’s possible that a homeowner performed the work. While inspectors are not code experts, they can generally tell you when a room in your home will not pass major code laws.

16. Asbestos

You have probably heard the legal commercials for this one. “If you or a loved one has been exposed to asbestos, you could be at risk for developing lung cancer or mesothelioma.”

Asbestos is a mineral fiber found in rocks and soil found in building materials before 1981. It was a popular product due to its resistance to heat, chemicals, and electricity. Some items that include asbestos are the following:

• Vinyl Flooring
• Siding
• Shingles
• Blankets for hot water pipes

While it is not dangerous when exposed to it in small amounts, your inspector will look for areas that indicate the asbestos has been disturbed. It can crumble and become airborne. This issue may pose a threat to you and your family.

One of the most common fixes for asbestos is encapsulation, a process in which the material will be treated with a sealant that either binds the asbestos fibers together or coats them so they cannot be released.

17. Windows Not Sealing Correctly

Much like poor insulation, windows can lead to poor energy efficiency and high electric bills in your home. They can also cause security threats, as unsealed windows or ones that do not close properly will be a prime target for an unwanted person to enter your home.

Some things that an inspector will look for on your windows include the following:

• Condensation in the window
• White, powdery substance around the windows
• Shower-like scum buildup inside the windows

These are all prime signs that your windows are not sealing correctly. Therefore, it is recommended that you replace the seals in your windows every five years.

In addition to energy considerations and safety concerns, if window seals are not up to par and you are experiencing condensation buildup, this could lead to mold development.

18. Water Heater Issues

In addition to the HVAC, water heaters are one of the potential buyers’ most considerable areas of concern. So, what do home inspectors look for in regards to your water heater?

• Sediment buildup– Sediment buildup within your water heater will result in a smaller water volume than the tank can hold. Your water heater may have to work overtime to heat the water, driving up your energy bill. Most sediment issues can be resolved by draining and flushing the tank.
• Noise– Popping sounds in the tank can indicate sediment buildup and mean that your internal heating system is overheating.
• If there is hot water or not– Usually, this is a sign that the heating element is faulty. They’re relatively easy to replace
• Any water that accumulates underneath the heater– Sometimes, this can just be the result of condensation. Still, after your inspector rules that out, there may be a bigger problem to address.
• Tripped circuit breakers– If your water heater causes your breaker to trip, this is an indicator of a bad heating element or faulty wiring.

Your water heater is the most expensive portion of your entire plumbing system. So this portion of your home inspection will be significant.

Final Thoughts

A home inspection is a vital part of buying a home. Ask your real estate agent for a list of good inspectors in your area. When you have found one that you like, book them to get your inspection scheduled.

Your inspector will look at many different components during the home inspection process. Then, they will write a detailed report about what areas were flagged and which ones are in good condition. This blog post will help prepare you for the common things that fail a home inspection.

You may be able to enter into negotiations with the sellers to help fund some of the fixes found during the inspection before closing on the home. However, if you live in a hot market where homes are sold as-is, the likelihood of a seller putting any capital towards fixes is very slim.

Even if this is the case where you live, home inspections are still recommended. You will know what needs to be fixed upon moving into your home, and you can begin planning for the work that needs to be done. In addition, home inspections are a great way to ensure that you move into your next home with realistic expectations.

In recent years, homeowners associations (HOAs) have become increasingly popular among homebuyers. According to a study by the Community Associations Institute, approximately 26% of Americans now live in some form of community association, with HOAs being the most common type. So what exactly is an HOA and why are more people choosing to live in one?

What is a Homeowner’s Association? 

A Homeowner’s Association (HOA) is a governing body that manages and maintains a residential community or neighborhood. This organization is typically created when a developer builds a new housing development, such as a condominium complex or planned community. The purpose of an HOA is to ensure the smooth running and upkeep of the neighborhood for the benefit of all its residents.

The function of an HOA is to enforce rules and regulations, collect fees, and manage common areas within the community. These rules and regulations are outlined in the HOA’s governing documents, which include articles of incorporation, bylaws, and covenants, conditions, and restrictions (CC&Rs). These documents are legally binding for all homeowners within the association.

One of the main functions of an HOA is to maintain property values within the community. This is achieved by enforcing architectural guidelines that ensure consistency in design and appearance among homes in the neighborhood. By maintaining a certain standard of aesthetics, homeowners can feel confident that their property values will not be negatively affected by neighbors who do not properly maintain their homes.

Another important role of an HOA is to manage common areas within the community. These may include parks, playgrounds, clubhouses, swimming pools, or other shared amenities. The cost of maintaining these areas typically comes from fees collected from homeowners. This ensures that everyone in the community has access to well-maintained facilities and services without having to individually pay for them.

The Importance of Thoroughly Reviewing the HOA

Purchasing a home in a homeowner’s association (HOA) comes with a lot of responsibilities and commitments. One crucial aspect that prospective buyers need to carefully consider before making such a purchase is reviewing the HOA contract. This document outlines all the rules, regulations, and bylaws that govern life within the community and can have a significant impact on your homeownership experience.

In this section, we will discuss why it is essential to thoroughly review the HOA contract before purchasing a home in an HOA.

1. Know What You’re Getting Into

The primary reason for reviewing an HOA contract is to understand what you are getting into as a homeowner. The contract will provide you with information on what services and amenities are included in your fees, how much those fees will be, and how often they may increase. It also outlines any restrictions or limitations on using common areas or modifying your property.

By thoroughly reviewing the HOA contract, you can gain insight into what type of community you are joining and whether it aligns with your lifestyle preferences.

2. Understand Your Financial Obligations

As mentioned earlier, the HOA contract includes details about fees and their potential increase over time. As a prospective buyer, it is crucial to understand these financial obligations fully. In addition to regular monthly or annual dues, some associations may also charge special assessments for unexpected expenses or capital improvements.

Thoroughly reviewing these details will help you budget accordingly and avoid any surprises down the road.

3. Familiarize Yourself with Rules and Regulations

HOA contracts also include rules and regulations that dictate how homeowners should conduct themselves within the community. These rules can range from pet restrictions to parking guidelines to noise regulations. By thoroughly reviewing these rules, you can ensure that you are comfortable living within the community and are willing to comply with all regulations.

4. Identify Any Potential Issues

Reviewing an HOA contract may also help identify any potential issues or red flags within the community. For example, if there is a history of frequent fee increases or disputes between the HOA and homeowners, it may be a sign of poor management or financial instability.

Thoroughly reviewing the contract can help you make an informed decision about whether this is a community you want to be a part of.

5. Seek Legal Advice

In some cases, an HOA contract may contain complex legal language or provisions that are difficult for the average person to understand. In such situations, it may be wise to seek legal advice before signing off on the contract.

An experienced real estate attorney can review the document and explain any terms or clauses that may not be clear to you. This can help prevent any misunderstandings or legal issues in the future.

In conclusion, thoroughly reviewing an HOA contract is crucial for any prospective buyer considering purchasing a home in an HOA. It helps to ensure that you have a complete understanding of your financial obligations, community rules and regulations, and potential issues within the community. Seeking legal advice may also be beneficial in navigating complex contract language.

Benefits of Living in an HOA

There are several benefits to living in an HOA that make it an attractive option for many homebuyers. One major advantage is the added sense of security and safety that comes with living in a regulated community. Most HOAs have rules and regulations in place that help maintain the overall appearance and cleanliness of the neighborhood, creating a more desirable living environment for residents.

Another benefit is access to shared amenities that may not be available in non-HOA neighborhoods. These can include things like community centers, fitness facilities, playgrounds, or even private beach access. In addition to these amenities, many homeowners also appreciate the convenience of having someone else take care of maintenance tasks such as lawn care or snow removal.

Final Thought

An HOA is a legal entity formed by a real estate developer to manage and maintain a residential community. When purchasing a home within an HOA, residents are automatically members and are required to pay dues or fees towards the maintenance and upkeep of shared amenities such as parks, pools, or landscaping.

Being a homeowner has its perks and privileges but it also comes with a lot of responsibilities which all involve money. You need to think of repairs, taxes, insurance and maintenance. Not to mention city maintenance and repairs for streets, sewers, curbs and sidewalks near your home. If your house is in the corner of the block, these costs are doubled. 

But don’t let these costs discourage you from becoming a homeowner. If you have the desire and enough funding to purchase a home, you should also have a good understanding of government policies so your house becomes a good investment. Consider it as a business with the city and state financial departments so your chances of making a promising investment is high.

Know what it takes to become a homeowner. Learn the ropes from completing and filing paperwork and getting in touch with necessary agencies. All the hassle involved in the process can be confusing and discouraging.

Your role is an investor. Your responsibility is to own and maintain your property. But you are not expected to know everything including the business side of owning a home. You need to team up with people you can trust who can help you ensure your house’s value will increase. This team should be able to guide you in making prompt payments, tax assessments, insurance, maintenance,( H.O.A. requirements, when applicable), upgrades and necessary repairs or maintenance. If these sounds all too overwhelming for you, you ight as well stick to renting.

Through renting you are giving business to the owners. Being a renter, you don’t need to come up with a large amount of money and no need for taxes.

Think about these things:

• How much is my income?
• How much is my rent?
• What is your credit rating?
• How much do you spend and how much do you save?
• How well do you handle your money?

You need to think about these things to determine if you’re ready to be a homeowner. You should also consider the economy. Do you know the current market climate? Do you believe it’s looking up? Are you knowledgeable when it comes to government regulations.

So ff you want to buy a property and work towards increasing the value, you as homeowner needs to be knowledgeable about finances, real estate, taxes, government policies and regulation, city building codes and restrictions and have good credit rating. If you know these things, you can make your investment grow and start other investments for your family’s future.

After some time, the value of the home you invested in will increase. This is the measure of your success as a financial wizard. You were able to take advantage of the government tax system and policies and borrowed against it. The money you borrowed is tax free and your earnings from it is tax-deductible.

People who used this method was able to finance other things like school tuition, payment for a new home or a new investment.

If you bought a home for $600,000 and you sell that same home for  $1,000,000, you can have the gain tax-free for up to $500,000 for a married couple. Real estate transactions like this is the only one that have a no tax income advantage. You may want to consider them for your retirement fund.

When it comes to investing, no time is better than now. But don’t do it in haste. Careful planning is required. And do it with a team of professionals who can help you with financial and legal matters.

A real estate agency is really a team that lead you to good investments and they teach you how you could maximize your earnings – tax free.

Renting versus Buying

Renting	Buying
no tax deduction	tax write -off
rental fee can go up anytime	house expensie will not go up
not free to make changes	you can make physical changes as you please
you can be evicted	home value increases over time
temporary	your home for as long as you want

Your success in the realty market lies in how well you negotiate. But negotiation is a complicated matter. All the parties involved want things to go their way. Given these conditions, how can you make things work for your favor? How does one become a succesful negotiator?

Based on experience, these five aspects determine a successful negotiation:

• What the market says

  Study the market. There will be times when it’s more favorable for buyers and there will be other times when it will lean towards sellers. The key is to strike when the time is favorable for your side. For example, as a buyer you are in a position to offer the seller a quick deal and you know that the seller is in a hurry to sell the property. Take it as an opportunity to make things work in your favor.

• Determine who has leverage

  If word has gotten out that the seller has gone bankrupt, you are in a position to make reasonable demands. On the other hand, if you know that the house is a hot item, expect many competition. Therefore, you are in no position to dictate the terms or ask for “extras”. The owner has the liberty to choose the buyer they want; usually to the highest bidder with the best terms.

• What are the details?

  What are the other costs (or savings) involved? Most people think that the price of the house is all there is to it. But in fact, there are other things to consider. For instance, Both house A and house B cost $275,000. However, house A is an older house that needs costly repairs. Plus the seller of house A agreed to pay  a portion of the closing costs. On the other hand, house B also costs the same. But cost of  necessary repairs will not be covered by the seller.

  Think about all the costs and savings involved and determine where you can get better value for your money.

• Financing

  All transactions involve money. Money affects negotiations in so many ways.

  Is the buyer pre-qualified or pre-approved by a lender? Finding your ideal house does not guarantee that financing will also be available. Your loan application can be denied because of several reasons; among them: appraisal problems, title issues, survey findings.

  One of the advantages of being pre-approved is that buyers already know how much they could afford. Sellers like buyers who are pre-qualified. They pose less risk to the seller. They won’t have to worry about waiting for the buyer to find a loan to seal the deal. Being pre-qualified means that you have the financial capacity to pay for the loan.

  Lower interest rates mean a broad market – a lot of potential buyers.

  Nowadays, downpayments are made easier. Now you can find loans with as low as 5% downpayment or even less. 100 percent financing or no downpayment plans is even an available option. 

• Broker expertise

  Brokers are now representing not only sellers but buyers as well. If you have competition, being represented by a reputable broker gives you an edge.

Moving in the summer when a lot of people do can be such a challenge. But if you prepare well, moving will be definitely easier for you.

Here are ten tips you can follow for an easier move:

• Think about this: Can I handle the move alone? or do I need to hire a licensed moving company for a full-service or partial-service move? The answer to this depends on your family’s budget, available time and lifestyle. Before you choose a moving company to help you, get quotes from atleast three companies so you can compare and get the best deal. Packing calculators can help you gauge the number of boxes and packing materials you will need.
• Plan where each box or furniture will be placed in your new home before you pack them. Taking pictures of each room in the new house can make this task easier. Write down where each item should go and what needs to be assemled first. Make sure to bring this list with you on moving day. Cross out from the list each item as it is placed in its new room. This will making moving orderly and smooth.
• Create a system when packing and start early. This will enable you to move within your time frame in an organized manner. Go to Moving.com to complete a free change of address and to schedule utilities. Go through your things one at a time – one cabinet, one storage box, one room at a time. Divide your things among these categories: for charity, give to a friend, recycle, trash, pack now, or keep handy until moving day. With each room or bin you clear out, the task of packing becomes less overwhelming. 
• Plan on what to do with the kids on moving day. Think if you’ll leave them in daycare or if you’ll have a friend or family member take care of them. Dont forget to thank them or give them a thank you gift. Another option would be to set up a corner where they could play or entertain themselves on your new home on moving day.
• If you have a pet, make plans for them too. All the hustle and bustle can be stressful for man’s bestfriend. Bring them to a pet daycare or leave them with a willing friend on moving day.
• Secure small items. Some big things (furniture, appliance) need to be disassembled. You’ll need to have a container for small parts like screws. Make sure they’re sealed and marked so nothing gets lost.
• Packing cleaning products and toxins (such as pesticides or bleach) can be quite hard to manage. Get rid of as much as you can But be careful in doing this. Dispose of them in an eco-friendly way.  If you don’t know how, get information from your city’s waste disposal department. For those that need to go with you, pack them securely. Put them in a sealed container and make sure they’re marked clearly. Keep them away from other stuff especially like your children or pet’s stuff.
• Think about getting full value insurance. This insures the protection of your belongings. In the event that something will be lost or damaged, that item will be replaced or there will be cash settlement based on the current market value regardless of the age of the item. It may cost more with a professional mover but the peace of mind that it can give you will be worth it. Do not settle for the required minimum coverage of 60 cents per pound. If something bad happens, it won’t be able to cover what was damaged or lost.
• Know your rights as a consumer. For interstate moves, do you research in the Federal Motor Carrier Safety Administration (FMCSA) or contact the state agency in your state. FMCSA requires interstate movers to offer arbitration to settle disputed claims. If you’re having a hard time with the moving company or they threaten to hold your belongings for an illegal reason, report them to the Better Business Bureau (BBB).

Buying a home is expensive. A lot of people want to have a home of their own but do not have enough cash or can’t get enough funding to afford a mortgage. On the other hand some people are looking for ways to be able to take advantage of tax benefits from being a home owner. So they turn to co-buying.

“Neither of us had a big enough chunk of money to put down for a home in a desirable neighborhood,” Brian Free told the U.S. News & World Report about his decision to purchase a home with his friend. “However, aggregating our resources allowed us to find a home that suited our needs.”

However, co-owning anything with a friend or relative comes with risks. But there are things you can do to reduce the risk of running into problems. Careful delibiration and planning is a must.

• Think about how you will hold title

  The decision on how to hold title will affect your say in legal documents. Unmarried co-buyers can share a title as TIC (tenants in common) or as JTWROS (joint tenants with right of survivorship). Co-owners who are married can take title via community property or tenancy by the entirety.

• TIC versus JTWROS

  With JTWROS both owners have equal shares in a home. When a co-owner has passed away, his share will go to the other owners. Consequently this means that the last surviving owner gets all the shares. In a TIC, the shares may or may not be equal. Each co-owner has its own title. Right of survivorship doesn’t work in TICs. When a co-owner dies, his share will not go to surviving co-owners. Each co-owner can pass their share to their family members or whoever they want to will it to. TICs can be dissolved if a co-owner buys out the share of the other co-owner/s. Or to sell the home, one co-owner can file a partition action.

• The similarities of a TIC and JTWROS

  In both ownership arrangements, owners have rights to the property. If it is rented or sold, co-owners each receive each will receive a part of the money that is according to their shares.

• Secure a co-ownership agreement

  It is important to lay the ground rules and protect your share. It is wise to make things clear for all parties involved before problems arise. No matter how close you are with the co-owners, there is always a possibility that ownership issues will be challenged. A co-ownership agreement can help resolve the issue.

• What are the ownership percentages?

  Joint tenants have equal shares. Co-owners in a TIC agreement can divide the shares based on the amount that each has put in for the downpayment.

• How are ongoing costs divided?

  They refer to ongoing costs like mortgage payments, property taxes, insurance, utilities and maintenance. The division of expenses like this should be part of the co-ownership agreement. Co-owners may divide this according to their shares or according to the amount of time each co-owner will put in in maintaining or improving the property. You may want to open a joint checking account so each co-owner can withdraw from this account to pay for ongoing expenses.

• What if a co-owner wants to sell?

  The co-owner who wants to sell does not need to get the approval of the other co-owner as to whom they could sell it to. However, the other co-owner can object to the sale because of their right of first refusal.

Buyers are now in a better position when it comes to buying a house. Gone are the days when real estate is a hot market and you need to make an upfront offer as soon as a property is put up for sale.

Competition has mellowed down in most areas. This gives buyers an opportunity to be able to deliberate on what is available and take advantage of the best deals. How do you determine the climate of your market? According to economists, real estate is directly related to employment. So if there is a rise in employment, you can say that the value of your property is also looking up. In the Midwest real estate is not doing as good as auto manufacturing. Prices are low and is not expected to rise anytime soon. It might take a while until the market rebounds.

Things buyers can keep in mind to get the best deal in the market:

• Do your homework and negotiate fairly.

  In a changing market, the biggest problem is human nature. Market value can drop or stagnate. But sellers often refuse to believe this. To them, the price of their home is based on how dear it is to their heart regardless of its actual market value. On the other hand, buyers take advantage of a market slump and make unrealistically low offers. Before you make an offer, research and think about important things like the features of the home that you want to be in the home, the size of the home and the going rate of properties in the area.

• Research on comparable sales.

  Find out how much the last one in the area sold. According to Beverly Durham of ReMax Gold Coast Realty in Camarillo, Calif., “See what’s going on out there.’’ Don’t insult the seller by making a very low offer. You’ll drive them away. Your goal is to make them consider your offer.

• Why is the seller putting it up for sale?

  Find out as much as you can about this. Is it because of retirement, job-related, divorce, they need to relocate, or they simply want to sell to the highest bidder.  This information is crucial. If a buyer knows this, they can either negotiate better or decide to look elsewhere.

• Check the MLS (Multiple Listing Service).

  They usually state what the seller owes. Or your agent can provide this information for you.With this information, you could negotiate accordingly.

• Timing.

  According to Durham, “After 45 to 60 days the seller is usually absolutely sick of keeping their house spotless and sick of people walking through.’’ After this period the seller will be anxiouse to sell their house.

• Go for newer or well-maintained houses.

  It will cost you time, effort and money to fix damages.

  Even in a tight market, it’s okay to ask the seller to add the closing costs to the price of the house. It’s better to pay 20% downpayment and roll the closing costs into the loan than pay 15% downpayment and pay upfront for the closing costs.

• Be reasonable

  when you ask for extras.You can also ask for new kitchen appliances or washer and dryer. Durham said you can even ask the seller to pay for the first year of homeowner association dues. But don’t ask them for things that involve workmanship. Durham said, “Don’t ask them to paint.’’“They won’t do it the way you want. They’ll do a lousy job.’’

  When you consider buying a home, think about staying there for atleast five years. Remember your goal as a buyer is to get the home that you want; not to outsmart the seller.

Are you looking to finance a new home? Or are you finding the best mortgage rate to refinance your home?

The first step is to shop around. But what does that really mean? Research and prepare. Take time to think and analyze different mortgage plans. You could save a lot by doing this. Take this for example: on a 30-year mortgage for a $300,000 house, a homeowner would pay approximately $1,520 each month at a 4.5 percent rate. But if the homeowner chooses a slightly higher rate of 5.10 percent, it would increase the monthly mortgage payments to $1,633, which would make a difference of $40,680 in 30 years. (Figures were calculated on a 20 percent down payment.)

The best thing you should do is retrieve your credit scores. If lenders retreive them multiple times, it can lower your score. 

If you’re looking for a lender, look into their track record. Ask family and friends about them and when you’ve narrowed down your options to two or three lenders, compare their rates.

Before you compare rates, establish a budget. Think about how much maximum you can afford to pay every month.

The lender should be able to give you a comparison of loan terms with conventional methods of financingso you can make an informed decision. Don’t just jump into a plan with low rates. Make sure you understand all the costs with it.  Rate lock is a contract with the lender that ensures the interest rate will not change. But you will need to get the loan within a certain period of time; usually 60 days. If the rate increases, you will not be affected. Using a mortgage calculator , compute the monthly payment at different interest rates. If you find a rate that is lower than your limit, lock in to that rate.

When you see rates that are lower than your limit, act fast. Don’t miss out on good deals and offers.Some lenders offer a “float down.” This means that even if you’re already locked in on a low rate, you can get even lower rates. Specific contracts may vary depending on lenders.

When you look for a lender, don’t just consider one. Look into other lenders as well. Different lenders offer different products. Understand the products. Some products for example have low rates for new homebuyers but not for those who want to refinance.

It’s a good idea to try different institutions from a direct lender, credit union or a community bank. Once you’ve made up your mind on a lender, ask what other fees are added to the loan. You might choose a plan with a low rate but have a lot of additonal charges. Before closing the deal, make sure you know the total amount of the loan.

Once this is settled, decide when you want to close the deal. Discuss your intended date with the lender. Ask about the charges for loan lock periods. Lock in for the best rate and the right amount of time.