Don’t Overlook a Home’s Potential

Home shopping for first-time homebuyers it’s an exciting, albeit nerve-wracking, experience. If you’re like others in the market for their first home, you probably have in mind exactly how your soon-to-be home will look. But it’s important not to fall into the bad decorating, dingy walls and dirt-bare back yard equals bad-home trap. If you don’t see past the hideous wallpaper, funky light fixtures and avocado green carpeting, you may miss out on a home with great potential.

One of the first things to do is to get pre-approved for a loan and determine the maximum you can afford to offer for a house. Don’t look at homes that are asking for more than 5 percent above your maximum, otherwise you’ll be setting yourself up for disappointment if you find the perfect—but outside your budget—home.

The floor plan of the home is extremely important. If a floor plan isn’t quite to your liking, consider rearranging it or adding on. If you’re looking at an existing home and will need to remodel or expand to suit your needs, the estimated cost of renovation needs to be considered when making an offer.

Also, consider the features of a home:

  • Walls. While these are among the easiest to remedy, they also make a huge first impression. If the walls need to be painted, are covered in wallpaper or are painted a color you find distasteful, picture them crisp and clean in the color of your choice—that’s how they could look after you paint them.
  • Floors. Like walls, carpet or floor surfaces that are old or outdated can be easily replaced. You could even ask for a carpet allowance in your bid, especially if you’re in a buyer’s market.
  • View. Things like old, ugly—even dirty—windows and window treatments can make a view appear less desirable. Those things can be improved, so unless the only view you have is of your neighbor’s clunker on the side of the house, don’t get hung up on what is surely a fixable view.
  • Landscaping. Your best bet is a moderately landscaped yard because you can always improve landscaping without spending too much. Worst case, even if you’re looking at dirt, landscaping is one of the easier projects to tackle. Plus you get to design it however you’d like if you’re starting from scratch.
  • Closets and garages. You can never have too much storage space, which is why so many newer homes have three-car garages. But if you encounter a converted garage that is now a bedroom or storage room, don’t give up. Converted garages can almost always go back to their original purpose without much cost or labor.
  • Kitchen. The most popular room in the house, many homeowners want their kitchen to be large and have modern appliances. Don’t let outdated color schemes deter you because there’s nothing like a fresh coat (or two) of paint to make a kitchen your own. Plus, if you like the rest of the house enough to make an offer, you can give the kitchen a minor spruce-up with some new appliances or a major overhaul complete with new countertops, cabinets, and flooring.
  • The exterior. If the home doesn’t have good curb appeal, try to picture it with a fresh coat of paint and revitalized landscaping.
  • Pools. If you want a pool, buy a home with a pool already built in. Pools are expensive and you will not get a full return on the cost when you go to sell. Let someone else lose the return. The cost of repairing a pool is less than putting one in, so if you’re looking at a home with an old pool that looks like it’s in bad shape, it’s still a better bet than putting one in later.

When making an offer, consider what you can’t live without, as well as your budget. Also, be sure you hire a professional home inspector to inspect the house. If the home’s systems are in good working order and the house has everything you want except a minor item or two, make an offer accordingly.

Most importantly, keep in mind that unless you’re building your dream home from scratch, you’ll probably never find the perfect home. But seeing past a previous owner’s bad decorating choices to the core of the home and its potential for livability will yield you the home you’ve always wanted. It may take some work, but hey—it’s yours.

Realtor.com

Five Key Areas to Pay Attention to When Buying a Home

Looking for a new home can be exciting and frustrating. You can help alleviate the frustration by paying close attention to five key areas of the homes you’re considering buying; it may save you money in the long run.

Don Walker is an inspector and owner of Ace Home Inspections. He says there are five areas in homes that he frequently reports problems with. They are electrical, foundation, plumbing, the attic, and landscaping.

Electrical
Walker says sometimes homeowners assume with newer homes that all will work just fine but that’s often not the case. “I [inspected] a brand new house — four years old but the electrical was all done incorrectly,” says Walker.

Having a complete home inspection will help to rule out any problems and point out any areas of concern. However, even as you’re browsing homes, buyers can start to make note of the key areas that Walker mentioned, such as the foundation.

Foundation
Walker says a four-year-old home he inspected recently was already showing trouble signs which could result in a costly repair project. “It was a model home. What [the homeowners] did was plant trees for shade to make it look really nice, but they planted the wrong trees and they’re going to crack the foundation and it’s going to cut the property value down by $50,000,” says Walker.

Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. “As you walk through the house, 21 feet in and 30 feet deep, there’s just too much root invasion and it’s going to ruin their tile,” explains Walker.

He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, “which means the foundation is moving.”

However, just because you see cracks doesn’t mean there is a foundation problem. “Most people don’t understand that there are natural cracks in a house. That’s why when we do an inspection report we have to look at it and say ‘Okay, this is a typical crack and this one is an untypical crack,'” says Walker. He says some cracks may lead to other problems while others won’t.

Plumbing
Walker says another big area of concern is the plumbing. It’s an area that you can’t always spot as easily but it can create expensive repairs if plumbing issues go either undetected or are not properly fixed. “Mold forms underneath sinks when people have a leak and they fix the pipe but they don’t take care of the mold,” says Walker.

He says things like caulking the sink can help prevent mold. “That’s my number one thing I always find — bad sinks,” says Walker.

He says that when you look at the sink, look behind it and most of the time you will discover a little crack. “What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it’s in a perfect position to create mold,” says Walker. The dampness, humidity, and lack of light can turn that area beneath the sink into a mold-breeding ground.

Attic
“You can tell everything about the house by the attic,” says Walker. He says other areas of the home can be covered up if a repair had occurred. For instance, if there was a leak and it damaged a wall, with the right contractors and repairs it can be made to look like new and, hopefully, function like new. But Walker says the attic is sort of the eyes to the soul of the home. “In the attic you can tell where all the damage has been,” says Walker.

“If you’re in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced,” says Walker. He adds, “You can tell if the roof is good because you can look right at the wood.”

Landscaping
“There should not be moisture or plants next to your house,” says Walker. He says there should be a 12 inch barrier between the landscape and the house. Walker says otherwise you run the risk of having the foundation crack and affect the home. What happens is, as the landscape that is too close to the home is watered, the foundation and soil expand. Then, when no watering occurs, the foundation dries up and shrinks and this can cause it to crack.

Remember, knowledge is power, so learning about the home before you close the deal on it will keep you from making a mistake that may cost you extra out-of-pocket money later.

Realtor.com Blog

Debating Between a Condo or a House

Which is right for you?

A condo can offer a good location at a less expensive price. Buying a home is one of the biggest and most important decisions you’ll ever make. Whether you are a first-time buyer, or a veteran homeowner looking to trade up or make a new start, you will inevitably be faced with a number of questions. Your answers will lead you to the home that’s right for you. One of the most fundamental questions all homeowners face is whether to buy a condo or single family house. There are advantages and disadvantages of each and only you can know what’s right for you.

What is most important to you? Give consideration to the following:

  • Location – Where do you want to be? Are there options for both condos and single-family houses in this area?
  • Privacy – Is it important to you to have complete privacy or do you find close neighbors to be a comfort?
  • Responsibility – Do you need total control over decisions affecting your home or are you attracted to the idea of sharing decision-making with your neighbors?
  • Maintenance – Are you a homebody who enjoys getting dirty in the yard or are you delighted with the idea of never having to cut a blade of grass again?
  • Budget – How much do you have to spend? Depending on where you want to live, a condo may be the only option that meets your budget.

These considerations and others will help you determine the best choice for you now. And just remember, if your interests and priorities change in the years ahead, you can always sell your home and make a move, this time with experience as your guide.

Realtor.com

Seven Helpful Tips For New Homeowners

You’ve done it. You’ve signed the papers, received the keys and the house is yours. Now what? There are still many things to keep in mind. Below is a list of seven skills that every new homeowners should know.

We recently came across an article about some necessary skills every homeowner should know and it got us thinking…what skills should we put on such a list for all those clients who we just helped become homeowners. Well here is what we came up with.

  1. Keep all warranty, assembly, and operating information for each appliance or item in your house neatly filed, this way when something goes down you know where to go to find a solution.
  2. To locate a stud, knuckle the wall starting in a corner to compare a hollow sound to a firm sound, and then use some simple math to guide you to others as most studs are at 16 inch intervals.
  3. Unclogging a drain typically will mean using a plumbing snake to pull the gunk out. Nowadays you don’t even need a plumbing wrench to separate the pipes under your sinks to find debris. Of course ensure water is off and you have plenty of towels and buckets ready, or you could use some drainage chemicals to create a small hole in the gunk and save the heavy lifting for later.
  4. Know where your breaker box is and ensure each is labeled with a permanent marker. To find corresponding plug each switch controls have a friend plug a lamp in to sockets one by one. You will use this information one day.
  5. Know where your main water and electrical shutoffs are, either by referring to your inspection or asking the employees when they come out to read your meters.
  6. Have a list of vendors who perform every job that could possibly come up readily accessible so at any time you need help you can get it.
  7. Every once and awhile your house will need routine maintenance like an oil change for a car…things like A/C units, older appliances, etc…If you always wait for it to break first it will cost you in the long run.

Realtor.com

What To Look For When Doing A Personal Inspection Of A Home

When you buy a home you will likely hire a professional to do an inspection but as you are narrowing down your choices you can do your own informal inspection, weeding out houses that have obvious issues. Here are a few tips on what to look for:

As you near the point of making an offer on your target property, you’ll want to include the following in your personal inspection of the property:

– Check the foundation for cracks.
– Does the house show any obvious water damage?
– Examine ceilings, window areas and walls.
– Check for damaged plaster and wallpaper.
– Do you detect dampness or mold?
– Examine the attic for water leaks and structural integrity.
– Check electrical, heating and plumbing.
– Test the air conditioner and thermostat.
– Look at the major appliances included in the sale.
– Check for building quality and drafts.
– Does water drain away from the house, or toward?
– Are trees to near the foundation?
– Check additional structures, such as a garage or shed.

Covering your bases prior to making your initial offer, will help you make a solid decision as you move through the process. Further, if you make your offer contingent upon inspections, you’ll have time to hire a professional to ensure that the home you are buying is in the condition that you are willing to pay for it.

Realtor.com

Five Items That Can Destroy Your Mortgage Application

Not only do would-be homebuyers have to be concerned with their credit scores and their income, but they should keep an eye on five other factors that could affect their ability to secure a mortgage, MortgageLoan.com reports.

Are you in the midst of a divorce? According to the website, most lenders refuse to issue a loan to couples who are undergoing a divorce. Fearful that a one-person income would affect a homeowner’s ability to make payments, most lenders are reluctant to lend money to potential homebuyers, the article said. Would-be homebuyers beware: Do not attempt to hide the fact that you are undergoing a divorce, MortgageLoan.com reports. Most institutions will find out during a background check. If this happens, homebuyers will definitely be turned away and could face charges of mortgage fraud for lying on the mortgage application.

Did you recently switch careers? Potential homebuyers who changed careers within the past two years may find it difficult to secure a mortgage, MortgageLoan.com said. Lenders are wary of issuing mortgages to people who are not yet established in their careers, even if a person is earning more in a new job than in his previous occupation, the article reported.

If homebuyers are thinking of switching careers, MortgageLoan.com advises against the move until after a mortgage has closed, or you may face the prospect of starting over. And, if for any reason a potential homebuyer has been unemployed, he will probably have to work in a job for at least two years before he can qualify for a mortgage.

Are you a party in a lawsuit? It may be difficult to secure a mortgage for potential homebuyers who are either plaintiffs or defendants in a lawsuit, according to MortgageLoan.com. Lenders fear that defendants may get whopped with a hefty settlement that may make it difficult to pay monthly mortgage payments. On the other hand, plaintiffs who lose their cases may get stuck with pricey attorneys’ fees, MortgageLoan.com reported.

Are you making repairs on your existing residence? Lenders are hesitant to provide mortgages to borrowers who are in the midst of repair work on their homes, even though that work may increase their home’s value, according to MortgageLoan.com. Because repairs may never be completed and could take any amount of time to end, banks prefer to see finished repair work before issuing a new mortgage.

Did you recently take on new debt? Lenders do not want to see a borrower’s debt-to-income ratio at any more than 43 percent of monthly income, according to MortgageLoan.com. Taking on new debt, such as a car loan, could increase a potential homebuyer’s debt to levels above the bank’s comfortable debt-to-income ratio. The site suggested that it is best to wait to make new purchases until after securing a mortgage.

Realtor.com

Specializing in properties in South Hampton Roads, Virginia.