Archive for April, 2010
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #10.
Step #10. 
Good Faith Deposits.
As you’ll recall, when you placed an offer on your future home, it was accompanied by a “good faith deposit” check. Essentially, a good faith deposit serves as a monetary promise that you will move forward with your purchase of the property, or risk forfeiting the deposit.
In different jurisdictions there are different rules about when and where your check will be deposited. Suffice it to say that if you work with me, you will make your check out to Evers & Company Real Estate. I will negotiate on your behalf to have the check deposited after the home inspection contingency has cleared (there might be some other reasons, and we can try to include these). Typically, home inspections take up Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #9.
Step #9. Homeowners Insurance.
Now that you are a homeowner, you need homeowners insurance. This is true for single family homes as well as condos, co-ops and town homes (the latter three will likely have partial policies in place already- though you’ll need a supplementary policy to cover all the rest). If you are taking out a loan on your new property the banks will insist upon it.
Who: Check with family and friends to see if they have a favorite insurance agent. If not, I can recommend a number of agents for properties in DC or Montgomery County.
What: You need to get enough insurance so that Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #8.
Step #8. Termite Inspection.
If you’re buying a new place, particularly a single family home, I’m likely to insist that you hire a professional to inspect for termites. Why? Well, in the District and Montgomery County, Paragraph 16 of the regional sales contract calls for the “dwelling” (including the garage) to be delivered at settlement free of active termites and any structural insect damage. This is your one chance to see if you’ve got ‘em. It’s for your protection!
Termite inspections are pretty quick and easy. Thirty days prior to settlement (or less) you hire a termite specialist (I have a couple of favorites). This will run you approximately $70. They come out to the property and in about 20-30 minutes will inspect the interior and exterior of the house. You really don’t even need to be there (I do!), however, it presents a great opportunity to Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #7.
Step #7. Condo Docs.
If you purchase a condo or co-op, or a townhome or even a home with a Home Owners Association (HOA), you are entitled to review the “documents” (also referred to as the resale package or resale disclosure documents) that govern the rules/regulations/finances of the building or association you are buying into. For the purpose of this article, we’ll lump them all together and refer to them as condo docs. In the District and in Maryland, this opportunity for review cannot be waived. And with good reason. It is the only opportunity prior to purchase where you can assess the health of the building or association.
Within the District, these condo docs must be presented to the buyer within 10 working days of ratification of a contract (when everyone agrees to agree). You will then have 3 days to Read the rest of this entry »
New Lead Paint regulations in effect 4/22/10
Play it safe…
The EPA has just announced new compliance guidelines for real estate agents and their customers regarding lead paint. While no new forms are required for sellers, the guide describes the new lead-based paint safety practices established by the rule, and what steps real estate agents, brokers, and property managers need to take to comply with the new procedures.
Top 10 Reasons to Fire your Real Estate Agent
Kenny Rogers had it right when he sang “You got to know when to hold ‘em, know when to fold ‘em, know when to walk away, and know when to run”. Same holds true in real estate. Not all agents are equal. And not all relationships are happy. Sometimes you just have to end things, and here are 10 reasons why:
1. Believe it or not, years in the business doesn’t always translate to competency. I’ve known some green agents who are absolutely wonderful, and some very ripe ones who are most certainly not. Experience counts. But sometimes you just need an agent who is able to focus in on the task at hand (you!) and one in possession of some simple common sense. This isn’t a “bash the new agent” rant. We were all new once. Make sure that you are first and foremost in your agent’s mind.
2. Market Updates. Are you getting them? Anyone can set you up on an automatic search. Heck, you can do it yourself. What you need is an agent looking out for you! That means culling through the listings on a daily, if not hourly Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #6.
Step #6. Final Walk Through.
Just prior to settlement you should plan to do a “final walk through” at your soon-to-be new property. Why? To play it safe! You want to make sure that it’s in the same shape (or better, depending on your inspection negotiations) it was at the time of your offer. And, if you’ve negotiated for repairs or replacement items, this is your chance to see that that the work was done properly and all items are in good working order. Last reason… stuff happens. Vacant houses can spring leaks, burst a pipe, or god forbid, catch on fire (this has happened a couple of times in my office!).
What happens if something is wrong? Take some pictures. Have your agent call the selling agent. Consult your settlement attorney. In the end, most of these things can be ironed out, but it will take some determination and patience, and it’ll likely fray a few nerves. My mother used to say (an old time agent) “there’s nothing that can’t be fixed by a big ol’ check”. Amen to that. The problem is, checks aren’t allowed as often as they once were. Especially now that a lot of home loans are through the FHA.
For the first 8 or 9 years of my career an FHA loan crossed my path exactly one time. Now they are quite common. For properties being purchased with FHA loans, the walk through should happen 3-5 days prior to settlement if at all possible. Why? If things go wrong on the walk through, you really have to get them repaired prior to settlement, or check with your lender to see if they will allow you to escrow money for the repair. Read the rest of this entry »
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #5.
Step #5. Home Warranties.
Home Warranties. What are they? For roughly $450/year a home warranty provides coverage (usually for a nominal service fee) in the event that one of your appliances or HVAC fails. 
Some of the policies even cover roofing and/or swimming pools. In theory, they will either repair or replace your failing item/system. As a new homeowner, already stretched by your new mortgage, this can be a real lifesaver.
Who pays for it? Depends. In a slow market some sellers will offer up a one-year home warranty as an enticement. If, during your inspection, a few items are revealed to be at the end of their life cycle (but still working) this might be something you ask for from the seller- either in the contract or as part of your home inspection negotiations. Or, you can buy it yourself.
Why get a home warranty? I can’t help but think of my poor neighbors who within the first year of owning their house had to replace the washer, the dryer, the AC and the water heater. A warranty would have saved them a bundle. Hindsight is golden. But like all insurance, it’s painful to pay if you don’t ever get a chance to use it.
This is an 11-part series. To read the next few articles, click on the attached links for information on:
Final Walk Through. Don’t skip it. If something comes up, don’t panic. Everyone wants to get through this.
Condo Docs. It’s your responsibility to read them. Boring, but also chock full o’ good information. Avoid special assessment or pending lawsuit properties.
Termite Inspection. Pay a professional.
Homeowners Insurance. Again, required by the bank. I recommend a low deductible. Oh yeah, and never use it for the small stuff.
How to get from “Under Contract” to “Closed” in 11 (sometimes) easy steps. #4.
Step #4: Title Insurance
Title insurance is a good thing. It protects you from claims from others on your new house (and these things do happen). But it’s bloody expensive.
One way around the expense is to get a “re-issue” rate on title insurance. If the current owner has been in the house for less than 10 years and they are able to put their hands on the physical title insurance policy, you just might be entitled to a discount. You can save a chunk of change if you are able to explore this route. Doesn’t happen all that often, but it’s out there. It requires the full cooperation of the sellers (another reason to play nice).
There are two parts to title insurance. There’s the bank side- absolutely required (assuming you are taking out a loan on your new property). And there is the purchaser’s side- this is optional. I don’t recommend that you wave this option, but I’ve had clients do so. Why get it? Screwy things can happen in real estate. Long lost divorcees can come out of the woodwork and lay claim to your property. Illegitimate children can wreak havoc with estates. A crazy seller might later dispute the sale. An unrecorded lien on the property pops up. You name it, it has happened. And a few folks have seen “their” homes disappear. For a couple thousand bucks, you purchase peace of mind. Depends what type of player you are.
There are two options available on the purchaser’s side of title insurance. Basic title insurance (we’ll call this option A) is available at X price. What I like to call “souped up” title insurance (option B) is available at a higher price (XX). It has a few more bells and whistles. There are a lot of great reasons for choosing B over A, but best to let the settlement attorneys go into detail. And it’s really important that you have a discussion with them about this prior to settlement. You don’t want to make a snap decision about this at the settlement table. I’d much rather have you digest the information beforehand.
If you’ve got questions about title insurance before you buy, I’d be happy to put you in touch with a settlement attorney to discuss the particulars. Just give me a call.
This is an 11-part series. To read the next few articles, click on the attached links for information on:
Home Warranties. Like all insurance, it’s a crap shoot. Can add peace of mind to purchase.
Final Walk Through. Don’t skip it. If something comes up, don’t panic. Everyone wants to get through this.
Condo Docs. It’s your responsibility to read them. Boring, but also chock full o’ good information. Avoid special assessment or pending lawsuit properties.
Termite Inspection. Pay a professional.
House Hunting Wish List: hints to help you figure it all out.
What’s on your wish list?
If you’re hunting for a new home, hopefully you’ve figured out what you can spend. Now you need to focus in on what you want… within your budget, of course. Items to consider:
Location (town, subdivision, zip code)- Colonial or ranch? Hate splits? Love, love, love bungalows!
- Walk to Metro, playgrounds, school, dog parks, neighborhood swimming pools, restaurants, etc.
- Minimum number of bedrooms
- Minimum number of baths
- Fixer upper or Move-in condition
- New construction or an older home? Older home with addition…
- School district(s)
- Facing S, W, E, or N?
- Must have items: eat-in kitchen, home theatre, garage
- Deal killers: galley kitchens, main floor powder room, lack of a basement
- Off street parking or driveway
- Stairs to front door or level entryway
- Fenced yard
- Renovated kitchen or baths
- Lot size
- Busy street, quiet cul-de-sac
- Urban, city, woodsy, golf course view…
- Size of house. Big and cavernous or a cozy feel?
- Fireplace (wood burning or gas?)
- Screened porch, deck or patio?
- Neighborhood vs. house. Do you want the neighborhood more than the house, or are house amenities more important?
- House Rich-Money Poor, or visa versa? Some studies have suggested that if you buy into a community that you can easily afford, you will feel comfortable and blessed with abundance, whereas buying into a community that you can only marginally afford will leave you wanting and feeling deprived.
Before heading out to look for houses, take the time to figure out what you want. And share this with your real estate agent. Trust me, we don’t want to waste your time showing you things that just won’t do. And maybe you don’t know what you want… yet. That’s o.k., too. The ultimate goal is to get you to a place where you can recognize what will work, and what won’t. Chances are this will evolve as you get serious about looking. Just be sure to share your new requirements with your agent, and cast out any old ideas that no longer fit the bill.
Remember, too, that it’s really hard to find a house that has everything. It’s all about balancing your priorities. Determine what is truly important, and what is secondary. If you cannot abide by a house with a galley kitchen, understood. But… if the swimming pool in the backyard more than makes up for the small kitchen, well, it’s good to understand that, too.
You will find that the more specific you are in your search requirements the fewer the homes there will be to show. Ease up on some of the secondary items, and you’ll have a lot more from which to choose.
So, what’s on your list? If you’re looking to buy, or just want some friendly advice about real estate, give me a call.
Archives
- May 2013 (5)
- April 2013 (5)
- March 2013 (8)
- February 2013 (8)
- January 2013 (12)
- December 2012 (7)
- November 2012 (9)
- October 2012 (11)
- September 2012 (9)
- August 2012 (10)
- July 2012 (10)
- June 2012 (9)
- May 2012 (10)
- April 2012 (10)
- March 2012 (11)
- February 2012 (12)
- January 2012 (11)
- December 2011 (11)
- November 2011 (14)
- October 2011 (15)
- September 2011 (13)
- August 2011 (16)
- July 2011 (12)
- June 2011 (12)
- May 2011 (15)
- April 2011 (14)
- March 2011 (18)
- February 2011 (14)
- January 2011 (21)
- December 2010 (23)
- November 2010 (21)
- October 2010 (31)
- September 2010 (21)
- August 2010 (21)
- July 2010 (13)
- June 2010 (13)
- May 2010 (18)
- April 2010 (19)
- March 2010 (2)
Categories
- Bethesda (243)
- Chevy Chase (72)
- District of Columbia (39)
- History (5)
- Information for Buyers (117)
- Information for Sellers (46)
- Investing in Real Estate (3)
- Just For Fun (106)
- Mortgages and Lending (12)
- Neighborhood Finds (2)
- Neighborhoods (2)
- Out of Town Sellers/Estate Sales (4)
- Relocating to the DC area (23)
- State of the Market (121)
