3 Focus Points When Viewing Properties!

When you begin your home/condo search, there are 3 things you need to be focused on when viewing properties:

1. Functionality of Floor Plan - Does the floor plan flow or is it choppy? Does it meet your needs? When you walk through a home, it's important initially get a feel for the home, because emotion plays a big part when house-hunting. It's easy to get distracted by the seller's furnishings if the home is occupied, so you need to do your best and visualize the property with how you would furnish it. Is the floor plan bright & open or seem dark with narrow hallways? If you have large furniture or a lot of it, will the furniture fit in the rooms?
   
2. Cosmetic Conditions - Would you need to repaint... re-carpet... replace cabinets or counter tops...etc? As you approach the front door, how does the exterior look? Is the landscaping maintained? Any cracked window panes or failed window seals? Is there a lot of wallpaper that may need to come down? Look at what things you feel you could reasonably handle yourself versus having to hire a contractor to take care of.
   
3. Big-Ticket Items - What are the ages of the roof... furnace... water heater... appliances... etc? It's important to get a rough idea of how old different mechanical systems in the home are. You'll never know how long an item will last, but knowing if it's on its last leg and can go at any time will help you in figuring out how soon you'd have to save some money to replace it. One of the reasons for a home inspection is to make you aware of any defective items. If an item is defective, then you can request the seller to correct it (they can say 'yes or no'). If an item is just older, but is still working fine, then you need to understand that the seller is under no obligation to replace it. That's why it's important when walking through a property to do your best to determine the ages of the mechanical systems, so that will help you when deciding on an asking price for an offer.

Focusing on these 3 points will help you during your home/condo search. It's also important to make detailed notes to yourself as you go through each home, because that will make it easier for you to remember things about the property when it's time to make an offer on it.

At your service,

Dan

What questions do you have? I'll gladly answer them at: dan@danweis.com.

Tell a friend about my next Free Home & Condo Buyer Class!

Are you ready to find your dream home? Contact me for a Free Consultation: (513) 615-1890 or dan@danweis.com

Appraiser's Role in the Home Buying Process!

The appraiser's role in the home buying process is to determine a value of the property for their client, the lender.

No, not for you, the buyer, but the appraiser is looking out for the lender's interests in the value of the property, because if something goes wrong and you can't make the payments any longer, then the lender needs to know that they have a salable property.

In the early 2000s, it was easier for appraisers to value properties, because home values kept rising. Though they did need to be careful not to over-value. Now, appraisers need to figure out if an area is rising, stable or declining in value.

Appraisers have guidelines they need to follow to provide lenders with an accurate picture of the property and in the current marketplace of increased foreclosures and short sales, appraisers are being required to follow more stringent guidelines.

If the appraiser determines that there are repair, defect or improvement issues attached to the property, they may need to be addressed by the owner or buyer of the property before a sale can be completed.

It's extremely rare that you'd ever see or talk with an appraiser. They are expected to give an un-biased, third-party opinion as to the value of the property. Now in the event the appraised value of the property comes in below the agreed-upon sale price, then your agent may be able to offer information about other sales that could make a difference in the final outcome of the appraisal, but normally it won't sway the appraiser, because they have access to the same information as most agents and they do a lot of research too.

So when you're ready to make an offer on a property, understand that the lender's appraiser doesn't come into the picture until after you have an accepted agreement with the seller. Prior to writing your offer, you need to have your buyer's agent prepare a C.M.A. (Comparable Market Analysis), that will show you where values of comparable properties normally within a one mile radius have been in the last 6 - 12 months. That should help you select an asking price based on those recent sales as well as the condition, location and motivation of the seller.

If you're looking at a 3 bedroom ranch home on a slab with a 1-car garage, then you shouldn't be comparing that to 3 & 4 bedroom 2-story homes with full basements & 2-car garages in the same neighborhood. You need to find homes that are as closely similar to yours as possible.

Also, if you want to buy a condominium, the appraiser and lender may also want to review the condo documents as well.

I hope this sheds some light on the role of an appraiser.

At your service,

Dan

What questions do you have? I'll gladly answer them at: dan@danweis.com.

Tell a friend about my next Free Home & Condo Buyer Class!

I'm available to help you find your dream home! Contact me for a Free Consultation: (513) 615-1890 or dan@danweis.com

Insights To Selecting Homeowner's Insurance

The other day I asked one of my Preferred Service Team Professionals, Karen Bastian of American Family Insurance, the following question: "What are some things a buyer needs to know about making a decision on which homeowner's insurance policy to purchase for their new home?" Here's what Karen said:

"There are several things to consider when purchasing a homeowner's insurance policy.

First we’ll look at the dwelling coverage, which is insuring the structure itself and anything permanently attached to the structure (such as kitchen cabinets). It’s very important to make sure the policy is covering your house for replacement cost. There’s software we go through to determine how much it would cost to rebuild your house if you had a total loss. You want to make sure they’ll be able to rebuild your house just as it is. This is also why it’s important to review your policy every year or two with your agent so you can continue to monitor the policy and it’s coverages to make sure you’re never underinsured.

Replacement cost is also an important factor when it comes to your contents. The contents are everything you own in the house that isn’t attached: your furniture, clothing, electronics, dishes etc. In the event of a loss, when you have replacement cost, depreciation is not factored in. For example, if lightning strikes your TV, you would just go buy a similar new TV. We also strongly recommend that you take an inventory of your contents. If you were to have a major loss, there’s no way you’d remember everything you need to replace. You can make a written list, take pictures or a video. It just needs to be enough to jog your memory. Keep the list or pictures off premises with a family member or a safe deposit box. It wouldn’t do you any good if the list burned up in the same fire that destroyed your contents.

Another coverage that’s part of your policy is called “loss of use”. This means that if your home is uninhabitable due to a covered peril, your additional living expenses would be covered. The important thing here is to make sure the policy gives you a 12 month time limit to repair or rebuild without a dollar limit. Some companies impose a dollar limit but there are times when it takes awhile to rebuild so you could potentially run out of coverage.

Many people don’t realize that their homeowners policy also includes liability coverage. This certainly covers any guests who may be injured on your property but it also covers you and your family wherever you are. For example, if you’re on the other side of town at your child’s ball game and they injure someone during the game, the liability part of your policy will provide coverage.

These are just a few of the basic things you need to know when purchasing a homeowner's insurance policy. Please feel free to contact me with any questions you may have. "


Karen Bastian Agency, LLC

American Family Insurance
3476 Irwin Simpson Rd, Ste 112
Mason, OH 45040
(513) 459-3063

kbastian@amfam.com

Watch Out For Homestead Tax Reduction!

The state of Ohio has expanded the Homestead Exemption program to reduce property taxes for all qualifying senior citizens and permanently disabled homeowners, who are at least 65 years of age.

What does this mean to you, the home buyer?

When you're planning to make an offer on a property and you're determining what your monthly payment will be, you need to make sure that the property taxes that are being quoted on the Multiple Listing Service information sheet don't include the Homestead Exemption as a credit. Unless you're 65 or older, you won't be getting that credit and your tax bill will be higher.

So you or your Realtor can check the county auditor's web site and review the property's tax bill to see whether or not there's a Homestead Exemption amount listed on it.

For example, if the semi-annual tax amount is $1,200, but there's a $200 Homestead Exemption credit, that means if you're under 65 years of age, you'd be paying $1,400 every six months instead of the $1,200. That's an extra $33.33 per month you'd be paying.

So don't get a surprise at the closing table or when your tax bill comes out with a higher amount than you thought!

At your service,

Dan

What questions do you have? I'll gladly answer them at: dan@danweis.com.

Tell a friend about my next Free Home & Condo Buyer Class!

I'm available to help you find your dream home! Contact me for a Free Consultation: (513) 615-1890 or dan@danweis.com

You Have 4 Choices!

When deciding on whether you want to purchase a house or condo, you really do have four choices in your decision-making.

Your choices are:

1. Doing nothing
   
   Yes, no one can force you to buy a home. While most people will greatly benefit from owning real estate, there are a few people, who at certain points in their lives, should continue to rent and not put a financial burden on themselves.
   
2. Doing it on your own
   
   This is also an option, but why would you do it? If you needed surgery, would you operate on yourself? If you were going to court, would you represent yourself? Usually not. Then work with a real estate professional, who knows the real estate business inside and out. They can save you time and money in the home buying process.
   
3. Using a typical salesperson
   
   The problem with many agents is they don't have the experience and knowledge needed to help you. Do you know up to 25% of area agents sold one or ZERO homes in the past 12 months? Do you know the qualifications of the agent you're working with? There are others who are only in the real estate business to make a FAST BUCK and they really don't care about you. They'll do and say what they can to get you to buy quicker. Then they're out of your life forever.
   
4. Teaming up with a real estate consultant
   
   A real estate consultant is still a salesperson, but their business philosophy is based on serving your best interests. They look at doing what's right for you. They explain the pros and cons of each situation - so you can make an informed decision. They aren't afraid to share why you shouldn't buy a certain property.
   
   Selecting the wrong real estate agent can cost you BIG, so make sure you have an experienced real estate consultant working for you.

At your service,

Dan

What questions do you have? I'll gladly answer them at: dan@danweis.com.

Tell a friend about my next Free Home & Condo Buyer Class!

I'm available to help you find your dream home! Contact me for a Free Consultation: (513) 615-1890 or dan@danweis.com