When Should You Drop Your Selling Price?

You want to get the best price for your home, naturally. You’ve put it up for sale, focused on things like curb appeal to make a good first impression, and done research for other prices in your location. But despite all of your efforts, what if your home has been sitting on the market and/or you have no showings scheduled? It may be time to evaluate your selling price.

When you initially list your house, it will be a new listing that may get lots of attention at first. But that can change quickly, and as the weeks go on, you might consider the price.

There are many reasons to lower your selling price:

There are fewer buyers looking at your home. If the house has been on the market and there have not been any interested buyers inquiring about your property, it may be time to reduce the price a bit. Many potential buyers may think that your home is overpriced a bit, and taking it down can bring in new buyers.

You have to sell because of a looming deadline. Maybe you’re moving to another state and need to sell before you leave. Consider lowering your asking price to get potential buyers interested.

You don’t have any offers coming in. Maybe you’ve given many tours of your home to potential buyers but no one had made you an offer. It’s possible that the only thing stopping them is the too-high price, so you may want to take it down.

You can’t afford any upgrades. If you were planning to do some improvements like painting, new carpet, etc. but now you simply can’t put out the money for these things, you may want to consider lowering the price. You want the price to be fair considering what the home may be lacking.

Your price is too high for the competition. If your home has been on the market for a month or so and you don’t have any potential buyers, it’s time to give the price a second thought. Staying in touch with the competition will ensure you get the best price for your property.

It’s understandable that you want to get a certain price for your home, but you must be realistic about the market and the condition of the house. It’s a good idea to keep in close contact with your agent throughout the entire process so that you know where the sale of your home stands.

How to Determine Whether Your Visitor is a Serious Buyer

You have listed your home for sale, and now you are getting a lot of visitors. But don't expect each one of them to make an irresistible offer. Many people who visit a property are not serious buyers. They simply want to take a look at the house and leave.

This can frustrate the seller, but remember that showings are a normal part of the home selling process. If you really want to sell your property, you should be ready to show it to a number of potential buyers. You must be wondering if there is a way to determine whether a buyer is serious or not. Yes, you can decide whether a buyer is serious by simply asking them a few questions before they turn up to see the house. If the answers aren't satisfactory, you can refuse the visit.

Here are the questions you need to ask:

Do you think that my home will meet your needs?

Ask the prospective buyer if they have reviewed your listing thoroughly. And if so, do they think that your home will meet their needs? If they want three bedrooms and you have only two bedrooms, chances are things won't work out.

When do you intend to move in?

You should know when the buyer intends to move in. If the buyer wants to move in quickly and you are not ready to vacate the home in six months, then it isn't a good match.

Are you looking for 'extras'?

Some buyers expect 'extras'. For example, they might assume that you will sell your home appliances with the property. If that is not the case, you should let them know. Clearly state what items are included and what items are not included in the sale.

Do you have the financial means to buy a home?

Ask the buyer if they have got a mortgage pre-approved for the price of your home. If so, it is a clear indication that the buyer is serious. Serious buyers will explore the possibilities of getting finance even before they start looking for properties. However, just because a visitor doesn't have a pre-approved mortgage, you cannot assume that they are not serious. It is possible to get a mortgage approved after making an offer.

Hold an open house

If you feel that buyer visits are consuming too much time, you can consider holding your house open once a week. Ask everybody who has expressed an interest in your property to come and see it during this occasion. An open house will attract many visitors and at least one of them will hopefully come up with a great offer.

Selling a property can be a time consuming process. Don't expect to find a buyer overnight. There are, however, a few things you can do to sell your house quickly and profitably.

First of all, make sure that your asking price is right. If you quote an astronomical sum, finding a buyer will be very difficult. You also need to ensure that your home is in good condition. Even minor issues like leaking faucets and dysfunctional light bulbs need to be fixed before listing the property for sale.

Minor Oversights That Can Land You In an Undesirable Mortgage

If you are not an all cash buyer, you will definitely need to get a home loan. The home loan application process can be both stressful and time consuming. A minor oversight can lead to big headaches in the future. So take your own sweet time to review your loan documents.

Do your research

Do your research to keep yourself informed about the process. You should be crystal clear about the terms and conditions before signing the loan document. If you come across terms that you do not understand, ask about them. Don't assume that things will work out fine. They probably won't. This doesn't mean that your lender is trying to cheat you. They aren't, but you might assume that your mortgage will work in a certain way. And when you later discover that your assumptions were wrong, you will be in for an unpleasant surprise.

An inability to understand the terms specified in the loan document will land you in trouble. Some mortgages, for example, come with prepayment penalties. These penalties limit the repayment options you have. If the mortgage comes with a prepayment penalty, you will have to pay additional fees if you pay off the loan in 1- 3 years. Now that interest rates are pretty low, you will definitely not want to choose a mortgage with a prepayment penalty.

Here is a glossary of terms you might come across in your document.

Amortization

The word amortization is used to refer to the process of reducing an amount of money owed by making regular payments. During the initial years of your mortgage, the major chunk of your monthly payments goes towards the interest. Towards the end of the term, you pay more principal and less interest.

Comparables

The term comparables refers to comparable properties in your area. While appraising your home, an appraiser will consider the price at which similar homes in the locality were sold.

Escrow

Every month, a certain percentage of your mortgage payments goes to your Escrow account. Escrow will hold this amount to pay your yearly bills such as mortgage insurance, property tax, and homeowner's insurance.

Federal Housing Administration (FHA)

FHA is a US government agency. It sets the mortgage underwriting standards and insures home loans made by banks and private lenders. FHA loans make homes more affordable because they allow people to borrow with less equity or lower down payment.

Lien

The word lien means that somebody has a legal right to somebody else's property. The mortgage is a kind of lien. It gives the lender the right to seize the borrower's property if terms specified in the mortgage are not met.

These are some of the terms you will come across during your home loan application process. There are several others, too. Here is a quick overview of some missteps you must not make.

Your credit score determines your chances of getting a loan, so review it frequently. Avoid opening any new line of credit as it may affect your score. Do not change jobs in the months before applying for a home loan. If you must change jobs, wait until you get the sanction letter.

The Best Time of Year to Buy a Home

Ah spring time! When flowers are young, the air is fresh, and people are in a home buying frenzy. This frenzy is not limited to age, gender, or marital status - it grips all classes of people.  When tender tulips start showing up through melting snow in cold climates and the rain stops falling in the rainy areas, prospective buyers start hitting the streets looking for homes.

Typically during the spring, the real estate market booms throughout the country.

Reasons Home Buyers Choose Springtime

Barring some exceptions, most home buyers select spring to begin house hunting. Here are some probable reasons why:

• Winter is over and spirits are high.
• Families get together more often with long awaited holidays in March-April.
• The school year is closing soon. Buyers plan to begin moving soon after the school ends.
• There are more inventories available in the market since many sellers decide to go for spring listings.
• This is a part of pre-vacation planning. Buyers prefer to move during vacation time.

Which Day of the Year is the Worst to Buy a Home?

You can say it's the very last Friday in the month of May. Many people might think that Christmas is possibly the worst day, but that’s not true. There are very few interested buyers at that time and competition is low. People are in good spirits and feel more generous, and home sellers might extend this generosity when they accept your offer.

The time when home buyers start scouting for a home is not an issue. The time they eventually finalize the home they’re going to buy might create a problem. This often happens in April. After that, very often a closing date of the last Friday of May is decided during the signing of the purchase offer. All at once, there are a huge number of closings scheduled for that very day of May.

Why You Should Avoid the Worst Day

The reasons are plentiful, beginning with competition offered by other buyers and concluding with the actual moving in.

• From the available inventory, the best new listings are lapped up first at higher prices. Neighborhoods play an important role. Homes in good condition with appealing prices and desirable neighborhoods get many offers. Because of the competition, buyers often end up with a higher price than planned.
• There’s often a peak of pending sales in April which results in a large quantum of May closings. Regular workloads of real estate workers sometimes triple during this period and there are backlogs which might delay your closing.
• Otherwise exemplary services can be weakened by the Memorial Day holiday. Due to long weekends, workers take off for holidays and cannot process your transaction. High volumes also delay processing of loan documents.
• Higher interest rates might result from delayed closing if the locking period of your loan ends. There is a good probability of this if there is a rising demand of properties in your area and you might be stuck with higher mortgage payments.
• Since many people shift residences at May end, movers hike their rates. So your moving costs escalate. You might find it difficult to even find a mover in peak seasons. Many movers get booked well in advance for all weekends right through July.

Make sure you don’t sign the deal during the worst time to buy a home! It’s best to start your home hunting process early.

How to Inspect a Home Security System

Are you hunting for a new home? There are quite a few things that you need to consider while inspecting a home. For example, you need to ensure that the home seems safe. But what constitutes "safe?" What do safe homes look like? In this article, we will give you an overview of the important features of a home security burglar alarm system.

For many home owners, their security system is just another feature that increases the value of their home. But just about any security system will not do. Only a well-built security system can enhance the value of a home.

Here are two things you need to consider while evaluating a home security system:

Does the home security system cover all the entry points?

This is very important. A good security system should cover all entry points. Most bargain alarm systems only cover 1 or 2 doors and a few windows. These systems are usually installed at the front door on the first floor. They do not take into account the possibility of an entry through the second floor.

A burglar alarm system that does not cover all entrances cannot be considered as a good security system. While inspecting the system you must check what areas are covered by it. Don't accept a system that does not cover all entrances. And by entrances, we mean the garage and entry points in fenced areas as well.

Is the system fully functional?

Don't take the seller's word. You should ensure that the security system is in good shape and ready to use. Ideally you should get it inspected by a professional.

You can also perform some inspections on your own. Here are a few things to consider:

Make sure that batteries are well-maintained. If batteries are low, the system may produce those dreaded false alarms. Worse still, it may not raise an alarm when it should.

You should also ensure that all door and window contacts are properly calibrated. If the alarm contacts on your system are too sensitive, they may go off unnecessarily. In this case, even a gentle breeze can set off the alarm. On the other hand, if they are not sensitive enough, the contacts may miss a burglar.

The motion sensors, too, need to be properly calibrated. They are often calibrated in such a way that they do not normally register anything too low. However, this is a major mistake and it is often easily exploited.

Does the security system include cameras? And if so how are they installed?

The security cameras need to be installed in a sturdy location that cannot be reached easily. The cameras must have a clear and unobstructed view of the property.

The noise detectors are equally important. They are installed with the objective of detecting the sounds of forced entry and breaking glasses. However, noisy pets can complicate things pretty easily. The noise detector should be adjusted in such a way that it makes allowances for these.

If you don't know the important aspects of a security system you won't be able to know whether the home is well-defended. Consider these important aspects while checking a home security system.

How to Sell Your Home When the Market is Down

When the market is down, the easiest way to sell your house fast is to lower the price. But lowering your asking price isn't the only solution. You can also attract buyers by adding new features that enhance the value of your home.

Here are a few tips to sell your house at the best price:

Differentiate your home from your neighbors

You can attract buyer attention by differentiating your home from your neighbor's. For example, custom additions such as a new roof, landscaping, or high grade windows can make your home stand out from the rest. These features not only make your house more attractive but also enhance its value.

 

While adding new features, it’s best to opt for designs and colors that will impress most people. Any new feature should complement your home. For example, building a patio next to your outdoor swimming pool is a great idea.

However, resist the temptation to overspend. Of course, enhancing the appearance of your home may attract buyers, but it is not always easy to recover all the costs while you sell it. There is absolutely no example to prove that the new shingles on your roof will substantially increase the value of your home. If you're planning to invest a lot of money in improving the appearance of your home, do some research and add features that are more likely to recover their costs.

If you have recently added some interesting custom features, don't forget to include them in your home's listing. 

Clean the clutter

Make sure that your home is free of clutter when potential buyers come to see it. Clutter turns off people immediately. You can make your rooms look larger by removing some furniture. Also put away personal items and family photos. And if your budget permits, you should consider hiring a stager. Be willing to shell out a few thousand dollars if you are planning to rent modern furniture for showing your house.

Sweeten the deal

You can attract more buyers by sweetening the deal. You can, for example, offer to pay the buyer's closing costs. These deal sweeteners will help you to attract more buyer interest. You can also consider offering a transferable home warranty.

Improve curb appeal

Don't overlook the need to enhance your home's curb appeal. When a buyer takes a look at your house, the first thing they see is its external appearance. So make the exterior as attractive as possible. Apply a new coat of paint before listing your home for sale. You also need to keep your garden and lawn in good condition. Appearance means a lot in real estate.

Make sure that your home is ready to move in

Make sure that your plumbing and electrical fixtures and appliances are in working order. They should also comply with existing building codes. When potential buyers visit your home, they should get the impression that the home is ready to move in.

Price it right

Your home should be priced appropriately. You should consult a real estate agent to know what comparable homes in your area are selling for.

Your home doesn't have to be the least expensive home on the street. That said; it must still be reasonably priced.

 

The bottom line

It is not exactly easy to sell your house when the market is down. However, by adding a few interesting features and keeping your home in great shape, you can improve your chances of finding a buyer.

Successful Staging for Fast Home Selling

The key to selling your home fast and at a good price is correct staging. We’ve compiled some staging tips for upgrading and styling your home to help you get the best results.

Enhance curb appeal. Often people considering having a look at your home will first do a quick drive-by. To ensure onlookers are not turned away, washing walkways and planting blooming flowers is a great idea. Cleaning front windows and repainting the porch floor can also add to curb appeal.

Make the porch appear inviting. Even if your porch is small, try to make it appear welcoming with blooming potted plants and a clean doormat. If there’s space, keep a couple of pieces of porch furniture. For the benefit of potential buyers driving by, keep the porch lights on after sunset.

Clean to a sparkle. Shining floors and gleaming windows can create a great impression. This is an easy way to help your home look its best. It’s a good idea to get pros in to do the job. The results will be well worth the expense.

Clear all clutter. It’s imperative for all clutter to go. This might involve temporarily utilizing offsite storage space but it’s worth the trouble. Potential buyers view clear surfaces, cupboards, and floors as more space, so get rid of anything unsightly or unnecessary.

Take a look at the floors. Clean the floors thoroughly and get the carpets steam cleaned. If wood floors are in poor shape, consider getting them refinished. If refinishing is beyond your budget, placing rugs strategically can save the day.

Rearrange furniture. Symmetrical arrangements usually look nice in living rooms. Move furniture away from the walls and make use of pairs of chairs, sofas, and lamps to build inviting conversation areas.

Select neutral colors. Avoid experimenting with "fun"-looking colors like lime green when you’re planning to sell. This doesn't mean an all-white appearance. Rich neutral colors like mocha create sophisticated backdrops which make everything look more integrated.

Keep the master bedroom gender-neutral. Try to create a general appeal with a neat master bedroom that’s free of clutter and personal items. With tasteful artwork, crisp, clean linens, and a neatly folded blanket on the bed, you’ll never go wrong.

Make closets appear spacious. Buyers are quite likely to peek into your closets. Often, closet space proves to be a make-or-break point for buyers, so make sure yours appear spacious by getting rid of excess stuff. Aim to have 20-30% open space within each closet.

Keep toys neatly. Even though people looking at your home might have their own kids, having toys strewn all over is not likely to sell them on the house. People who are house hunting are generally looking forward to a fresh start. Try showing them that in your house, having a well-organized kids' room is possible, and they’ll possibly be swayed.

Use "extra" rooms judiciously. It’s time to change things if you’ve been using a spare room as a dumping space. Each room must have its own clearly defined purpose. Consider what potential buyers might like to have – a study or a guest room? Converting a junk room into a real room is sure to result in a big payoff.

Remember, you can always rely on a free home valuation report from Neighborhood IQ to help you in the selling process. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

Home Makeover Tips to Make Your Home Look Awesome

So you have got your home listed and firmly implanted that “For Sale” sign in the front yard. But is your home ready to be toured by would-be buyers? Ask any real estate expert and they will all tell you why it is important to give your home a nice makeover before showing it to potential buyers. First impression really matters.

Even if you are in a market where houses sell quickly, first impression is very important. So it’s a good idea to spruce up your house – it would convince the would-be buyer that it is well worth every penny you are asking. You can give your home a great makeover without having to spend a fortune.

If just a few homes are available on the market, you will probably not feel the need to spend loads of money on aesthetic improvements. Still, there are several relatively inexpensive things that you can and should do to attract buyers.

Here are a few things you should do to improve your home's external appearance:

·         Make sure that your lawn is well-maintained; don't forget to tidy up your landscaping.

·         Place a nice potted plant close to the front door. It will make your door area more attractive.

·         Make the doors look new by applying a fresh coat of paint.

·         Clean the windows to a sparkle.

·         Install a new doorknob. It will create a sense of greater security.

·         Your street numerals should be in place. Make sure that they are polished. You can also invest in a brand new set of numerals. 

·         Hang a seasonal wreath on the door.

·         If there are any loose shingles get them fixed before showing the house to potential buyers.

·         Repair your gutters and paint them.

The interior is as important as the exterior. When potential buyers enter the house, you should still be able to leave a positive impact on them. Here are a few things you need to do: 

·         Remove clutter. Clutter kills positive energy. It also makes your home look cramped and unattractive. Keep the toys well organized in closets or shelves. Leave the countertops in your bathrooms and kitchen empty. If that is not possible, remove as many items as you can.

·         If you have a lot of family photos, you need to remove them as well.

·         Hang fresh towels in the bathroom.

·         If the walls have rough spots, touch them up with paint.

·         Get your carpets cleaned before potential buyers walk in. You should vacuum clean the floor each morning.

·         If the faucets in your bathrooms or kitchen are leaky, get them fixed. You should also replace all non-functioning bulbs.

·         Open all curtains and blinds to let light in. Don't forget to turn the lights on before each showing.

·         If you have a lot of furniture, remove some of it.

·         Place some flowers and nice plants in attractive containers.

·         Clean your fireplace.

Of course, each one of us has our own sense of style. By doing these things you are not trying to fool potential buyers into believing that your home is the best. Instead, you are trying to show a simple and clean house with great potential.

Selling your home means that you should know the true value of the property. You can obtain a free home valuation report from Neighborhood IQ to find out how much a home is worth. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

5 Options to Consider if You Can’t Find a Buyer

Selling a house can be difficult if there are too many houses in the market. If you have a home for sale, you probably already know how difficult it is to find a serious buyer in the existing real estate market scenario. Now, in case your search for a buyer is taking longer than you expected, here are a few options you can consider:

Rent the house 

Renting allows you to generate some income from a property that has been in the market for a while. Of course, you can't make a lot of money by renting, but this is definitely an option you can consider if you feel that finding a home buyer is taking longer than usual. What's more, if you place it on rent for long enough, the market conditions in your locality may improve. People who hold on to their property during a slump will be able to sell it for a higher price when the economy recovers.

Not every seller will want to rent his house. They suspect that the renter will not take proper care of the property. What's more, renting your house to the wrong person can invite a lot of trouble. Evicting a problem renter may take many months and cost a few thousand dollars.

Lease the house

Leasing your home is another option you can consider. When you lease your house, you will receive an extra fee besides the standard monthly rent. Of course you will have to sell the house to the renter at a later time in the future for a pre-determined price. Now, in case the renter decides not to buy the house later, you can keep both the rent and the extra fee.

Rent the house for short periods

If your house is in the vicinity of a tourist spot, you can consider renting it for short periods. Some companies also rent homes to provide accommodation to their non-permanent employees. In popular tourist areas, you can find brokers specializing in short-term rentals.

Sell the house to a realtor 

Some big realtors buy homes and later sell them for a profit. Since they have huge cash reserves, they will have no trouble holding on to the property until they find a good buyer. However, you can't expect these buyers to offer a good price. You may consider this option only if you are desperate to sell or are willing to accept a lower price.

Short sale

This is the least attractive of the five options we discussed here. Lenders want to avoid foreclosures at any cost. So if you are unable to pay off your home loan, the lender might even consider selling your home for a price less than the actual value of your loan. This allows the bank to get a bad loan off their books. They also save the expenses involved in the foreclosure process.

The bottom line

Depending on the market conditions, finding the right buyer may take a year or more. None of the options discussed in this article are ideal; nonetheless they allow you to generate some income while you are still holding on to your property.

Remember, you can always rely on a free home valuation report from Neighborhood IQ to help you in the selling process. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

7 Habits Every Home Seller Should Have

Putting your home on the market and getting it sold for a decent price is not easy. In fact, selling a home can be quite stressful. However, you can reduce your stress levels by following these highly effective habits.

1. Be Realistic

Your neighbor probably sold their house for top dollar last month, but it doesn't matter now. You didn't sell your home when the market was at its peak. Right now, your only concern should be getting your home sold for a reasonable price and that won't be possible unless you are realistic.

When selling a home, don't expect to recover every cent you spent on it. It is not always possible. So be realistic about the value of your home, the quality of your neighborhood and current market conditions. There is hardly anything that you can do to improve the neighborhood or the market. Nonetheless, you can improve the way your home looks. Make it clean and repair the parts that need to be repaired.

2. Listen to suggestions and advice

You probably don’t have much experience in selling a home; however, your agent has. A good agent sells many homes a year so they should understand the process better than you. Listen to their advice. Of course, it is nearly impossible to do everything that they suggest. Nonetheless, listen to them and do whatever you can to present and market your home in the best possible way.

3. Be Available

You don't have to be physically present during showings. In fact, the presence of the home owner may make the buyer uncomfortable and force them to rush through the process. Nonetheless, your home should be easily accessible to buyers. You must be willing to vacate the premise whenever your agent asks you to so that potential buyers can view it. This improves your chances of selling it.

4. Be Smart

Knowledge is power, so gain as much information as you can about the home buying and selling process. Of course, you are not buying, but you should still be able to know what the buyers are going through. Also understand the real estate market. If you have doubts, ask your agent to clarify them.

5. Don’t let emotion cloud reason

All of us are emotionally attached to our home. We are also proud of it and expect it to be sold for a price that is reflective of our pride. However, market conditions and location often determine the price. If you don't get the price you are asking for, you should be willing to lower it.

6. Be Reasonable

While selling a home, price shouldn't be the only consideration. You must also take into account the buyer's eligibility for a loan. If buyers request for repairs, you should consider every aspect closely. Don't risk losing a potential buyer by refusing to repair a leaky faucet or something just as trivial. That doesn't mean that you have to give into every demand. Be reasonable. That's enough.

7. Ask Questions

During the selling process you may hear many terms that you don't normally use on a regular basis. If you don't understand anything, don't hesitate to ask for clarification. 

These seven habits will not only reduce your stress levels but also increase your chances of getting a good price for your home.

To assist you in pricing your home to sell, you can get a free home valuation report from Neighborhood IQ and find out what your home is really worth.

Thinking about refinancing? You can find lenders that can help you with a refinance on your home loan. Let The Home Loan Advisor help you today!

Budgeting Mistakes of First-time Home Buyers

The experience of purchasing your first home can be both exciting and stressful. Like in all first-time situations, the probability of committing “newbie” errors is high. This especially happens in the case of the budgeting of funds to cover all expenses before and after the house purchase.

Some typical budgeting mistakes are made by buyers going in for their first homes. Though these errors are understandable, they can prove to be quite costly. If you’re aware of them, you have better chances of avoiding them.

Lack of affordability knowledge

Many buyers envision their first home as a castle or a dream house. But a first home most often has very few features of the dreams of young home buyers. You need to have a clear idea regarding how much you can afford to spend on your home before you begin shopping.

Make it a point to invest more time in researching for suitable financing options and understanding the effect of debt ratios on mortgage approvals rather than in judging design preferences and home styles. Once you know what exactly you can afford, you’re in a better position to make a judicious choice from the options available.

 

Incorrect assumptions

It’s true that everyone is thrilled to get a deal. But it’s highly erroneous to assume that every foreclosed or short-sale property offers a fabulous deal. This may be true in some cases but in the real estate market, a property is only worth as much as a buyer is ready to pay for it.

Experts in the real estate field know that it’s quite likely that properties which appear to be bargains often have serious HVAC, plumbing, structural, or other problems.

Inappropriate buyer's agent

A seller's agent has the responsibility of getting the best deal in terms of the highest sale price possible for a home seller. Similarly, a buyer's agent needs to represent the buyer's interests and try to get a great deal from the buyer’s perspective.

If you pick an inappropriate buyer's agent to represent you, you could be down by thousands of dollars by the end of the transaction.

Underestimating total costs

If you do not correctly gauge the real costs associated with home ownership, you’re in trouble. When you’re staying on rent, you can call your landlord when anything goes wrong. But when you become a home owner, this option is eliminated. The complete responsbility is on you.

So even if you’re buying a brand-new house, some things may go awry and you’ve got to solve all issues yourself. You would generally need to spend money to resolve the problems because you cannot be a master electrician, plumber, and everything else yourself. So make sure you plan for repairs, maintenance and emergencies. Also, remember to budget sufficient funds to take care of moving expenses.

No contingency clause in sales agreement

Today, most standard Sales and Purchase Agreements contain contingency clauses. While sellers would prefer not to have these clauses, they are of utmost importance from the buyer’s perspective. If you do not receive the required mortgage, the purchase will not be possible.

If you do not have a clause regarding this in the agreement, you don’t have a way out and your seller can refuse to return your deposit. Also funds spent for things like land surveys, appraisals and home inspections are forever gone. So make sure you have contingency clauses in the Sales Agreement before signing on it.

 

Don't make the mistake of not knowing the value of the home you want to purchase! Neighborhood IQ offers a free home value report that will tell you what a house is worth so that you can budget accordingly. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.