Are you a first time home buyer? With so many choices to make and so much at stake, it’s essential that you prepare. For advice, check out the First Time Home Buyer Guide from realtor.com® to learn the 10 steps to purchasing your first home without a hitch.

See the complete article Find out more here

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A home inspection can be a terrifying process to newbie buyers: What if the house you adore has major problems hiding beneath that shiny new coat of paint? If you lie awake haunted by visions of mold or “foundation issues,” it’s time to take a deep breath. Here’s everything you need to know about home inspections, and how (as scary as they might seem) they exist to protect you from a very bad deal.

Here are some insights into how to make the most of this all-important step. OK, exhale.

What is the Home Inspection Process?

The Inspection Period is the specified amount of time agreed upon by both parties in which the Buyer may examine the property.  In Louisiana, this is the “due diligence” period which also allows you to back out for any reason if you find problems with the home that make you uncomfortable.

The time frame selected for the Buyer can range is usually between 10 and 14 days and must be agreed upon by all parties at the beginning of the transaction. The Inspection Period begins when the buyer and seller enter into a contract.  The Buyer must accept or reject the property within this period.

Buyers and Sellers should make sure the inspection period provides adequate time for any authentication and/or appraisal process that may be necessary to complete the transaction.

Hire a top-notch home inspector

While it may be tempting to hire any run-of-the-mill home inspector to get the job done—particularly if the price is right—the inspection is no time to cut corners. After all, buying a home is an enormous investment. “Everyone does themselves a disservice when they shop by price alone,” says Alan Singer of Sterling Home Inspections in Armonk, NY. “Plenty of inspectors don’t know what they’re doing and set up shop because it’s easy to do.

So, first, check your local requirements: Many states require an inspector to have a license or insurance, and not having either is a big, waving red flag. Even if insurance is not mandated, you’re better off choosing an inspector who is insured, which protects both of you against errors and omissions. Membership in a professional trade organization, such as the National Association of Home Inspectors, indicate the inspector is up-to-date on the latest developments in the field—another giant plus.

Attend the home inspection

Even though you will receive a written report after the home inspection, you should attend the inspection while it’s being done. It provides a valuable opportunity to learn all about the inner workings of your would-be new home. “I much prefer it when buyers are there so we can discuss the home in person,” Singer says. “It’s much easier to explain the ramifications of an issue when we’re standing in front of it.” Plus, it sure beats deciphering a 10-page report about HVAC or plumbing problems.

So, don’t be afraid to ask questions. Really stick your nose into the home inspection. You and your inspector will be looking at all sorts of things you might have skipped during your showings, like the attic and crawl space, and under the sinks. Don’t be scared to delve into the details. Even the best home will receive a laundry list of to-do’s and potential problems, and fixing them will be much easier with a hands-on understanding of the issues involved. Consider it free (and invaluable) fix-it advice.

Don’t panic (until it’s time to panic)

The vast majority of issues raised during a home inspection are repairable—after all, as Singer describes it, you’re buying a “used home.” Just like a used car or an old computer or second-hand clothing, there are bound to be problems. Some of them may be small and easily fixed, like leaky pipes and rattling doorknobs. But if an inspector discovers a major problem—with, say, the foundation or water intrusion—even that may not be a deal killer. In fact, it could be a bargaining chip you can discuss with the sellers before closing the deal.

Work with your real estate agent to determine the best approach. If your offer was contingent on a successful inspection (and most are), you have a good basis to request that the current owners make repairs before closing. You’ll want to get this in writing, along with provisions if the sellers fail to fix the problems.

But there’s no obligation for sellers to address the inspector’s discoveries. If they aren’t willing to shoulder the burden, you need to assess whether the cost of a new roof—or mold abatement, or fixing the foundation, or whatever the problem is—is worth the reward. With no solution beyond paying $30,000 from your own pocket, you might need to move on to a more habitable home. “People get very invested in the home they want to buy, and it all becomes a very overwhelmingly emotional experience,” Singer says. “But they need to listen to the advice of the inspector, take a look at the financial ramifications, and make a clear-headed decision.”

To Inspect or Not

Home buyers are often conflicted about whether or not to spend the money to hire a home inspector. The responsible answer to this question is… yes, absolutely. Let me say this about cost; the price of an inspection is generally $250.00 – $400.00. Compare that to the price of the house and I would suggest that it becomes fairly insignificant.

However, there are some exceptions to this rule; for example, if the buyer is a general contractor, he might be knowledgeable enough to do the inspection himself, or if the buyer is a professional investor with lots of experience, he may also do well. But, to the average person, buying a home and conducting a formal inspection is a must.

A good home inspector will bring to your attention everything that is wrong with the house so you can handle it accordingly.  Then there is the added benefit of being able to use the inspection report to get back to the negotiating table. I have literally saved buyers thousands of dollars in lowered purchase prices using a detailed inspection report.

Hopefully, all will go well and your home inspector will say it’s fine to move in.  The lender will then do the next step for you: Order the Appraisal

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport Bossier City area.  Connect With Me

Are you a first time home buyer? With so many choices to make and so much at stake, it’s essential that you prepare. For advice, check out the First Time Home Buyer Guide from realtor.com® to learn the 10 steps to purchasing your first home without a hitch.

See the complete article Find out more here

Click Here to See if I Should Be Your Agent 

We’ll get right down to it: Shopping for a home is fun. But once you find “The One,” things start to get real—real fast. Think of making an offer on a home as setting the roller coaster in motion: You might have sharp drops in emotion and slow, trudging climbs to success, but the ride won’t end until the car slows down and the safety bar is lifted. (OK, this metaphor is now officially over.)

You need to learn how to make the right offer, the one that will end with your receiving the keys to your new house. So check out some of these agent-approved negotiation tactics to make the process a whole lot less bumpy.

The offer process

The written offer is legally binding, so in most cases a simple letter won’t work. There are many state, and sometimes local, laws guiding the process, so you’ll want to cover all the bases by using a legally approved form.

Your real estate agent will write the offer for you but with your full participation.  In Louisiana this is called a Residential Purchase Agreement which complies with applicable state and local laws.

Pick the right price

Just because the home is listed at $300,000, it doesn’t mean it’s actually worth that much. It all depends on the market. If you’re buying somewhere hot—especially places with low inventories—offering substantially below asking price is “probably wasting your time,” says Mindy Jensen, a Realtor® with Equity Colorado. But if the place has been sitting unsold for a few months, even the sellers probably don’t expect full price. Your best reality gauge are comps, or what similarly sized homes nearby have sold for recently.

Work with your real estate agent to determine a fair asking price; he or she will have the best read on pricing and marketplace dynamics, and can walk through the comps with you. Your agent can help you determine what a fair discount would be without offending the seller. While specific numbers will depend on your market, experts estimate that it’s unrealistic to go below 5% of the list price unless it’s been sitting on the market for months. Which leads us to…

Lowball with care

Sometimes a home is priced just too high—no ifs, ands, or buts—or perhaps it’s been sitting unsold for half a year. In those situations, a lowball offer well under asking price might be the right strategy to get the home you love for a bargain price. However, this is a tool to be deployed rarely and with great care—especially if the current owners have lived there for many years.

“Longtime owners usually have tons of pride in their home, and want the new owners to love it like they do,” says Jodie Burns, a Realtor with McEnearney Associates. “Buyers who lowball run a risk of angering the seller and losing the house. Ideally, you’re looking for a closing where both sides feel like they got a fair deal.”

So don’t lowball unless both you and your Realtor agree that it’s the best strategy for the occasion. Think about the big picture: “If a couple of thousand dollars is going to keep them out of a home they love, I remind buyers how little that amount translates into a monthly payment,” Burns says.

Write a letter

If the market’s tight and you’ve decided that you must have that stunning Colonial, you can boost your chances by writing a personal letter. Maybe you’ve heard this before? It helps, really.

“Top dollar will typically win the bid, but the sellers get to choose which offer they like best,” says Jensen. “Including a letter can sway them toward you, or at least give you the opportunity to match the highest offer.”

Jensen recommends scouting the house to figure out what’s important to the sellers and mentioning it in your letter. For example, a dog shed in the backyard means they’re probably canine lovers—and more likely to respond to your excitement over little Humbert’s potential new backyard. If they’re mountain bikers, they’ll love that you’re excited about the nearby trails, too. And, of course, parents who raised their (now grown-up) kiddos in this home will appreciate your intentions to do the same.

Consider contingencies

Along with the price, you’ll also want to factor contingencies into your contract: For example, do you need to sell your own home first, requiring a selling contingency? Work with your Realtor to decide what you’ll ask for off the bat—and consider dropping some requests if the market is hot.

As Jensen explains, “Your chances are best if you ask for the fewest things.” Don’t put yourself at risk to get the home you love, though. Some people might advocate dropping the inspection clause to sweeten your offer, but that can be dangerous, especially in older homes.

Keep your emotions in check

Yes, the search seems to have dragged on forever; yes, this home has everything you need. But keep your wits about you.

“Don’t fall in love,” Jensen says. “Falling in head over heels with a home can make you do ridiculous things, like overpay.”

Plus sometimes, even an “excellent offer may not be accepted,” says Vici Boguess, a Realtor with the Burke Boguess Zimmerman Group in Alexandria, VA. Don’t assume a rejection is an insult—the sellers might just dislike some of your contingencies or are holding out for a better offer. So, don’t assume it’s over until it’s over.

The offer also includes the closing costs … that comes next in this list.

**Ryan Wheeler is an expert real estate agent and military veteran serving buyers and sellers of homes in the Shreveport Bossier City area.  Connect With Me