REAL ESTATE IS A BUYER'S MARKET.  THERE ARE MORE HOMES FOR SALE THAN BUYERS READY TO BUY.    Prices have been reduced significantly across the market and offer more choices.  Prices in many areas are down to the pre-1994 levels and many foreclosures, distress sales and short sales offer outstanding buying opportunities for home buyers.   

HOME BUYERS RELY ON AGENTS THAT GIVE THEIR BUYER/SELLER CLIENTS INFORMATION TO MAKE GOOD HOME BUYING DECISIONS.

PLAN A SIT DOWN WITH YOUR AGENT TO GO OVER IMPORTANT QUESTIONS THAT YOU HAVE ABOUT LOCATION, PRICES AND FEATURES AND WHAT VALUE THESE CATEGORIES ADD. 

SOME THINGS TO KEEP IN MIND WHEN TOURING A HOME FOR SALE and MAKING HOME BUYING DECISIONS.

Pricing of Properties for Sale.

*  Know your price range.  Don't guess.  Give your agent your financial profile so that they can firm your price range or speak with a loan officer who will provide a qualifying amount and credit review. 

*  The list price for a home for sale is merely a suggestion.  Base your offering price on facts including recent closed sales in the area.  Your agent can provide this information. 

*  Compare homes for sale based on square feet, amenities, location and condition. 

VARIOUS ITEMS TO CONSIDER WHEN COMPARING PROPERTIES AND ESTIMATING AFTER PURCHASE EXPENSES.

The Roof.

*  Don't wait for the home inspection to ask for roof replacement.  If the roof doesn't leak, it is performing as intended and may not be identified as a defect on a home inspection.  It may be 25 years old but still not leaking.  Avoid home inspection disappointments by making a new roof a condition of the Contract of Sale. 

* The color of the roof contributes to the life of the roof.  Roofs with light tiles last longer, all other influenced being equal, than dark roofs.  The home inspector can estimate the expected life of the roof.

* Using the roof for storage reduces it's useful life.  Roofs are for ventilation, not storage.  A cool attic adds years to the useful life of an attic.  Also, ventilation helps prevent mold.

* Installing flooring on roof decks, even a few strops of plywood, that depress the insulation reduces the R value of the insulation material.  Insulation is rated by the depth and air holding qualities of the material.

Home Inspections and Home Warranties.  "Look for the high water mark".

* Home Inspectors find defects in properties that you may not have noticed when previewing a home to buy. 

* Home Warranties do not cover pre-existing conditions.  If there was no home inspection, they home warranty may not be relied upon for repairs or replacement. 

* If you buy a foreclosure or "short sale" listing, your Contract of Sale may not include the "property condition" or walk-through clause and may default to "as is" sale condition.

* Your home inspector may identify defects, but cannot order repairs or compensation for defects.  The Contract of Sale determines the home inspection repair matter and sets forth a guide for negotiating repair/replacement for defects.

* Unless specified in the Contract of Sale, most home inspection contingencies include an option for the Buyer to void the contract if the home inspection reveals serious defects or if the seller refuses to make repairs.  With proper releases signed by Buyer and Seller, the Buyer's earnest money is refunded. 

* Radon inspections and abatement systems are inexpensive and can be performed before or after settlement.  If a house is in a high Radon area as determined by the EPA map guide, Radon evaluation is good risk reduction for agents and buyers.  Radon abatement is important if the Radon level is 4 picoCuries per liter (pCi/L) or higher. Radon levels less than 4 pCi/L still pose a risk, and in many cases may be reduced.

* If a house is in a high Radon area and a Radon contingency is a part of the Contract of Sale, it is recommended that well water also be tested for Radon.  Make sure the Radon test contingency allows sufficient time. 

* Homes for sale should be tested for termites annually.  Don't accept a seller provided Termite Warranty.  They do not protect your home from termite damage.  Termites cannot read. 

* Termite inspections are not always required by lenders for conventional loans.  FHA and VA loans do require a termite inspection.  Termite inspections are cheap.  Termite infestation treatmeants and damage repairs are very expensive.

* In most areas, the Contract of Sale will require the Seller perform Termite treatments and make repairs for Termite damage.  The Sellers liability for treatment and repair may be limited to a specific dollar amount or percentage of the sale price.  Dont' let banks who are selling forclosed properties remove the termite clause from the contract. 

* Sellers cannot hide material defects by not providing a Property Condition Disclosure Statement. A material defect is a condition that would or may affect the value of the real estate and must be disclosed.  If the seller does not disclose known material defects and a home inspection reveals serious defects, the seller and their agent risk litigation if they do not disclose the defect to future prospective buyers. 

* A cluttered, dusty and poorly maintained house may indicate poorly maintained furnace, heat pump, air conditioner or hot water heater.

* Watch out for pet odors when selecting a home to buy.  Pet damage may be severe and hiding under a new carpet. 

Agency, Earnest Money and More.

* Earnest Money Deposits are held in trust and disbursed at settlement to the buyer to offset their settlement costs or to the buyer in case of buyer default. 

* Disbursement of the Earnest Money are determined by the Contract of Sale and statute for each state.  An Agreement of Release is usually required.

* Oral statements between buyer and seller are not binding.  Oral statements by agents are dangerous. 

* There is no "rescission" period for a Contract of Sale for real estate unless specifically included in the contract.

* A purchaser or seller cannot sign on the Contract of Sale for their spouse or co-buyer without a Power of Attorney, specific or general permitting them to do so.

* Personal property does not convey with real estate purchases.  Agreements to buy or sell personal property should be made outside the Contract of Sale. 

* Agents and Brokers must disclose in writing whom they represent in a real estate transaction.  Most states require that written notice of agency representation be made prior to showing homes. 

* If a property has an addition or finished garage or attic or shed or deck added after construction, verification of a building permit and code inspection is recommended. 

* A Seller's Listing Broker or Agent cannot negotiate for a Buyer. 

* Homes constructed prior to 1979 may contain lead based paint. You may, with seller agreement, have a home inspected for lead based paint before purchase.  Sellers do not have to agree to mitigate lead based paint.

* Co-workers and agents are not a reliable source for drive-time estimates.  Commute time is probably longer.

IT'S A GREAT TIME TO BUY A HOME.  PRICES ARE DOWN ACROSS THE COUNTRY.   

*  Contact an experienced Buyer's Agent and take a tour of homes.  There's a lot on the market and you'll have wonderful selections. 

*  Many Sellers have a real need to sell and you can benefit from the large inventory. 

*  You don't have to look at every home offered for sale in your price range.  Let your agent select the 6 that are the best in your price range and location.  This will give you market knowledge to start your search.  Identify the best homes and start your search there.  If you can't find a home in the best selections, you may need to adjust your price upward, if qualified.  If there are more than 25 homes that meet your criteria, add features to the criteria, i.e., fireplace, finished basement, garage spaces, etc. 

*  Give your agent time to preview the best homes offered for sale.  If your agent has time to preview, it will save you time on the road.  Don't insist that your agent be available to show homes to you "tomorrow".  Give us time to do our job.  An agent who has time to preview, review the disclosures, compare homes for sale will have a much better selection of homes selected to view.  YOUR AGENT IS MORE THAN A WALKING KEYPAD. 

*  If you and your agent tour a home and it meets your needs and you feel comfortable with the price, amenities, features, location, etc. say "Let's make an offer on this house". 

                           * * * *   Enjoy the Home Buying Experience   * * * *