Tri-Valley Home Buyers Archives - Page 5 of 6

How to Understand the Seller’s Disclosure Report

September 26, 2016 by temineth Leave a Comment

The seller’s disclosure report or form will be filled out by the homeowner/a seller before listing the property explaining in detail any known issues, remodels, renovations or problems that the house currently has or has had in the past and has been fixed. Anything that the seller knows about a property must be disclosed on this form. Seller’s disclosure forms vary from state to state will have some of the basics that buyers will need to know or understand before purchasing the property.

Here are some of the basics of most sellers disclosure forms or reports have that buyers need to understand.

The age of the roof.

This is more than simply knowing that the roof is 10 years old; it’s knowing what type of roof it is that you know the lifespan of that material. If you are only 10 years into a 40 your roof, you know that the roof will have some life left to it for quite some time. If you are unsure about the life of a particular roof material ask your real estate agent or home inspector. They can give you tips and advice as to how long a particular roof will last.

Plumbing.

Sellers should be able to explain any and all plumbing issues that they know what. You want to know the age and type of the pipes, whether it’s copper, galvanized steel or brass. Some of these can last up to 100 years but polybutylene or lead pipes could mean trouble. Some of these materials may need to be replaced before you move in.

Heat pumps, furnaces and water heaters.

Most gas water heaters usually last about 10 years and electric ones about 15. Most water heaters don’t need to be replaced until the leak or fail. HVAC systems or heat pumps work harder the older they get so a 20-year-old HVAC system will be working about 50% harder and less efficient than a new system. While this may not be something to replace, it is something to be aware of for your future in the home.

Renovations and remodels.

If the seller had conducted any remodels or major renovations they should be able to produce a building permit. If no permit was done on a major remodeling issues that require a permit for your city or state, you could be liable for mistakes in the future. Anything that was done that should have had a building permit needs to be signed off on before you agree to purchase the property. This is for your safety and liability.

Cracks in the wall and foundation.

Cracks can be structural damage but they also could simply be a settling. Newer homes are notorious for getting cracks in the ceiling, walls and corners simply because they have settled now that people have moved into the home or the foundation and ground around the home has settled. While this may not be cause for concern it is something to ask your home inspector about. Read more: Do New Homes Need Inspections?

Animal damage.

Sellers should be able to tell you if there’s been any major animal damage while the home was under their ownership. This could mean past issues, where they have hired an exterminator, major damage, rats, mice, snakes or other issues that may have caused damage to the house under the seller’s ownership. Make sure all of these items have been addressed and taken care of before you take ownership.

Asbestos and lead paint.

Sellers need to answer honestly of they know that the home has asbestos or lead paint. But, most homeowners have not owned the home for the last 40 years total so whether or not the property has lead paint in it or not, the seller is not going to know. The seller may know if there is asbestos but anything that they do know, they have to disclose.

Understanding the seller’s disclosure form doesn’t have to be difficult but if there is anything you don’t understand don’t hesitate to ask your real estate agent or the listing agent. They can identify and explain any detail and unfortunately if the seller simply does not know about an item dues to issues happening before they owned or if it is an investment rental property, there’s not much the buyer can do about it.

This post previously had a disclosure image that was creative commons and has since been pulled into a license photo. The image has been removed.

Should You Buy a “Flipped” Property?

September 20, 2016 by temineth Leave a Comment

We see them all the time these days; fix it or flip it, love it or list it etc. This new trend of buying homes and flipping them is certainly not a new idea but broadcasting it on reality TV has only hit the airwaves in the last few years. More and more sellers and investors are watching the shows thinking they can definitely do it but when it comes to buyers, are buyers apprehensive about purchasing a flipped property?

The challenge is finding a home that has had just a little bit of cosmetic work done versus a home that has undergone major surgery. Finding a home that has undergone major repairs or replacements is not a bad thing but you want to make sure that the work was done properly and up to code. Simply repainting a wall and repairing a patch or two is not something you’ll need permits for but rewiring the house, redoing plumbing or installing a major household appliance such as a furnace or heat pump should be monitored and approved by a qualified professional.

Other items that you may not be aware of include precautionary materials. For instance: if a vanity was replaced, the vanity might look great but if the Hardy backer board was not installed properly or is not waterproof, you could be faced with mold and mildew later on down the road. You’ll need to verify that all the materials used were up to code and properly installed. You certainly wouldn’t want the floor to buckle due to improper plumbing underneath the sink. Remodeling or renovating things on the outside might look pretty as long as the inside work was also completed properly.

Aesthetics are of course important when you’re dealing with a remodel or rehab but you also want to make sure that the work was done professionally and not just completed on the surface. Any wood rot, foundation problems, or items behind the scenes may not be visible on the outside door on the surface. These are items that could cause major problems in just a few weeks after purchasing the property.

Related: Do New Homes Need Inspections?

Having an inspection can certainly alleviate some of these concerns, however, not everything is visible or can be inspected. Verify that your home inspector will check the crawlspace and the attic in order to confirm that the bones of the home is just as sturdy and durable as the aesthetics.

All in all, buying a flipped property is a great way to get a home that is usually all put together but it is important to be aware of the concerns that flipped properties could present. Talk to your real estate agent, make sure you understand what work was completed and that it is been properly inspected and permitted.

Do New Homes Need Inspections?

September 6, 2016 by temineth Leave a Comment

Buying a new home is an exciting venture. New home/new you! Despite being very exciting, homebuyers may think they can skip the inspection because if something is brand new it should be perfect. Right? Just as a brand new car may have issues, new homes can too and that inspection can be a real revelation.

Not only should you conduct a final walk-through of your new home, but also have a non-biased home inspection. If you are customizing the house, you want to make sure the builder or developer used the correct materials and finishes you chose. Perhaps the tile is the wrong color, slightly crooked or the carpet should have gone down the hall instead of stopping at the top of the stairs. These little details are obvious to homebuyers that chose the materials but there are things that go far deeper than cosmetics in new homes that a professional home inspector should check out and correct before you sign on the dotted line.

Defects can happen and many new homes come with warranties to guard against such things. Nevertheless, if you do not know about them, you cannot argue for them. If you have never lived in the home, you may not know that you can hear people walking on the second story, or that the pipes knock when using the washing machine, or that the back door rattles when the front door closes. While a home inspector may not be able to catch all these issues, they can inspect places most homeowners will never tread. This includes the crawl space, attic, roof, and under sinks for plumbing issues.

Home inspectors will be able to tell if the installation was proper. Most new homes have builder grade materials and appliances but a new homeowner may not realize some appliances are not adequate for the size of the home. We inspected a 3,000 sq. ft. home and found that the installed furnace only heated 1500 sq. ft. This would have cost the homeowner hundreds if not thousands in heating and cooling costs! Most homeowners would not realize this until they are calling the electric company wondering why their bill is through the roof.

You would be shocked to discover what some of our inspectors have found; missing siding, unattached ductwork, broken roof trusses, raised roof shingles and more! These things should be fixed before homeowners take residence.

Having a building inspection and signing off on a permit is not the same as a home inspection designed specifically for the future homeowner. It pays to have this type of inspection done; every. single. time…. Do not neglect it!

Contact me today to find a home inspector in your area for your new construction home.

10 Tips to Make Your Move Really Easy

August 22, 2016 by temineth Leave a Comment

Nobody likes to pack up the entire house and move but most of us do it at least once or twice in our life. If you’re looking at moving or relocating to the Tri-Valley area or maybe you’re moving out of the area, you may be researching some of the best tips and tricks to make your move so much easier. Here are 10 easy tips that you may never have thought of before they can make your relocation that much easier.

#1. Box of essentials.

Many people pack the wrong way. You want to make sure that the items you want to get to quickly are at the back of the truck or the easiest to obtain. This could mean your coffee maker, important documents or records. But you also want a box of essentials to go along with you, especially if you are relocating a long distance. These essentials could be blankets and pillows, toiletries, a first aid kit, any medications, phone and tablet chargers, toilet paper and paper towels, paper plates and utensils, pet food and bowls, credit cards, passports, Social Security card and credit cards.

#2. Hook up TV and the Internet as soon as possible.

Many utilities only require a phone call to get things switched over to your new location so you want to make sure that your Internet and TV are some of the first things to be hooked up so that you can start getting your email, have access to the Internet and some entertainment if necessary.

#3. Bring something for the kids.

Kids can find moving to be extremely boring so you want to make sure you have items for kids such as coloring books, crayons, games, tablets or other items that can keep them entertained, especially if you have a long way to go.

#4. Nextdoor.

The online company Nextdoor is a great way to network with your new neighborhood. You can ask questions about the neighborhood, find babysitters and handymen and a little bit about your particular neighborhood before moving in.

#5. Don’t forget to leave important items with your last house.

This could be all the keys that you have, your garage door opener that you may have stuck in your visor and forget that you have it, any other items that the new homeowner will need to operate their new home.

#6. Changing the locks.

You never know who may have a house key to your new house out there so it’s always a good idea to change the locks before you move in.

#7. Call a cleaning service before hand.

If you’re moving a long distance, call a cleaning company and have your real estate agent let that cleaning person in for a thorough cleaning before you even arrive.

#8. Pack the essentials last.

Just like we had an essential box for the trip, make sure that your coffee maker, any documents, taxes, phone numbers and close are easily accessible as soon as you get to your new house.

#9. Ask about movers insurance.

If you are hiring a moving company to move your items, ask about their insurance policy and get at least three quotes from different moving companies and if they do in-home assessments so your estimate is as accurate as possible. You also want to make note that moving expenses can be tax-deductible.

#10. Research schools and kennels ahead of time.

Before moving you want to see what school your children will be in so you are prepared to get them in school right away if you’re moving during the school year. You may also want to make note of doggie daycare is in the area, kennels, doctors, dentists and other places that you may frequent.

These are just some simple items that a lot of people forget to do. If you’re relocating to the Tri-Valley area of California contact my office today for more tips and tricks to moving and finding the right house for your needs and budget.

How to Really Finance Your Dream Home

August 16, 2016 by temineth Leave a Comment

You’ve put in your time in a small townhouse, smaller home or condo and built up some equity but now you’d like to make that dream home a reality! How can you go about financing the home so you get what you want and still stay on budget?

For starters, you want to set realistic goals about the house you’re looking for. These are basic and broad goals such as do you want to live in a certain school district? Do you need a certain amount of square footage? How many bedrooms and bathrooms do you need? What type of neighborhood do you want to live in? These are large, broad requirements for your dream home. From there, you can narrow things down to certain details that you really love such as, large kitchen, updated bathrooms? Large backyard, mature landscaping, fenced yard, and any other little details you may want in a particular property.

Keep your broad, large items at the top of your focus and then narrow the homes down to items you love within those particular homes. From there, you can determine what you really want, what you can really afford, and if you’re ready to make the move to a dream home.

When it comes to financing a large purchase you may need a jumbo loan. Depending on how much equity you’ve built in your current home will determine how much down payment you can make on your next home. If you’re currently renting, you’ll need to come up with a certain amount of down payment. Speak to your lender about the exact figures you’ll need in order to qualify for your dream home.

Other items you’ll need when it comes to financing a large loan is secure information. Your credit report will be one of the most important pieces of information that will get you either the home you want or rejected. You can request your own credit history for one of the three major credit bureaus in the United States: Equifax, Experian, and Trans Union. Typically getting one report should have every piece of information you need to verify your credit history, score and to correct any mistakes or errors.

Determine whether you want to buy your dream home or build a home.

In the Tri-Valley area, there are many new subdivisions and communities popping up all over the place in places like Livermore, Pleasanton, and Oakland. Are you considering buying an existing home, putting the final touches on a custom built home or building a home from the ground up on your own land? Financing changes for each one of these situations so you’ll need to talk to your lender about your plans and your real estate agent about what you’re looking for to find you the right home in the right lending program for your needs.

Determine your financial limit.

What you might think is your financial limit, lenders may disagree. Lenders will take into account all of your assets, liabilities, debts and income to determine a comfortable amount that can go towards financing each month. Typically no more than 30% to 35% of your income should go towards your housing payment each month. There are different programs and plans that may allow for more but remember, putting too much strain on your finances means that you won’t have any money for those emergency issues that may arise as a homeowner.

[More: 8 Money Tips for Home Buyers]

Perhaps you’re in a similar boat to a lot of people; you already own a home but if the right dream home comes along you would consider selling and moving. To prepare yourself for the situation it’s important to have some reserve funds set aside for the down payment, earnest money deposit, and home inspection. You’ll be ready if the right home becomes available and you already have done your financial homework necessary to afford the home.

Start first by talking to a real estate agent about your needs. I can set you up with an alert system that sends you an email when a home that meets your search criteria and price becomes available. Secondly, speak to a lender about your credit history and your chance of getting a loan for the type of home you want. They can set you up to be in a good position, ready to make an offer, complete with a preapproval letter that can be updated monthly if necessary.

Don’t Make These Mistakes When Building a Custom Home

August 8, 2016 by temineth Leave a Comment

There are lots of new home developments and subdivisions going up throughout the Tri-Valley area. While a lot of these have general layouts and set designs, homebuyers can really customize the building experience to create the home that is unique to them, lifestyle and practicality. Designing and building a custom home you certainly don’t want to make any mistakes however, mistakes are given but if you can learn ahead of time with some of the more common mistakes are, you have a better chance of avoiding them. Here are some pretty common mistakes that homebuyers can make when building a custom home.

#1. Not being in control of your design.

Like I mentioned earlier, some things are set in the design, especially if you are building in a subdivision that has a few general layouts however, many people have high expectations that the developer or builder will do everything for them. The developer should go off of your ideas, not the other way around. Make sure you are in control of the things that you can have control of things are done to your expectations.

#2. Not maximizing your mortgage.

Use your mortgage to add more things to your home rather than credit cards. A mortgage interest can be anywhere from 3% to 4% nowadays which is a lot better than a 15% or even a 22% interest rate on a credit card. Maximize that mortgage for customizations when building a home. If you have more questions talk to your real estate provider or your lender for details on how to maximize your mortgage.

5 Ways to Get the Best Deal on a House

#3. Not planning for delays.

Delays happen would building a custom home. This could mean that cabinets didn’t get shipped in time; a certain paint color became unavailable and you have to pick a different one; certain tile is not available for shipment that ruined the needs to be reordered. All of these delays are pretty common when building a custom home so if you are starting another home or moving from a rental property you want to make sure that you have pushed out your move-in date further than expected. There are going to be delays and things usually take longer than expected so if you plan for this you will be less frustrated in general.

10 Important Things to Do Before Buying a House

#4. Not planning for over budget.

Always leave cushion in your mortgage or in your budget for a little extra. Things will always come in a little bit over budget and if for some reason they surprisingly come in less than budget, you have an extra money to spend elsewhere. Plan for a little bit of over budget and then you won’t be as frustrated or as tight on funds when you move in.

If you’re looking for a great home in the Tri-Valley area or would like to customize a new home contact my office today. I’d be happy to give you a list of brand-new homes surrounding the San Ramon, Pleasanton, Livermore or Danville area that are brand-new and ready to be customized.

5 Important Things to Know About Your Home Inspection

August 1, 2016 by temineth Leave a Comment

Before finalizing on a home purchase it is imperative to get an inspection. This home inspection is to be conducted right after mutual acceptance of the purchase and sale agreement or the offer. Once mutual acceptance has happened the earnest money can be deposited or held with the escrow or title company and the transaction moves on to “subject to inspection”. It is at this point that the buyer needs to schedule a home inspection from a professional inspector. This can be scheduled through the buyers agent, a local company or the buyer themselves but there are five important things you should know about the home inspection. [Read more…]

5 Ways to Get the Best Deal on a House

July 20, 2016 by temineth Leave a Comment

We always want the best deal; and even better when we can find a great deal on a great house that we really love. If you’re ready to get into the real estate search game, know all you can about the business, the market and prepare yourself for getting a great deal. Here are 5 ways to get the very best real estate deal.

#1. Know the market.

The knowledge really is power and if you’re planning on getting the best deal, this is not something that you decide on a Tuesday afternoon and then put in an offer Wednesday morning. You need to do the research in order to get the best deal. Take some time; maybe even a month or two to really find out where you want to live, get a good list of communities, subdivisions or neighborhoods that you’d like to choose and then the research over the last six months for that area. How is the market doing? Are homes increasing in value rapidly or gradually? Are homes dropping in value? What about the crime rate for a particular area? Are there good schools in the area, something to consider for resell value? Home selling quickly? If homes in a particular area are selling fast you may need to come up with an escalation clause or deal with multiple bids for the same property. If there are 300 homes in a subdivision yet only two or three are listed at a particular time, chances are that’s a very popular neighborhood and you might end up paying more than the asking price in order to get the home. If there are dozens of homes in a smaller neighborhood, people may be moving for a particular reason. Is there new construction going to be happening in the area? Talk to the neighbors about why they’re moving. And of course, talk to your buyers agent about a particular neighborhood, why you want to live there and if they have any concerns or advice they can share about the subdivision, community or area in general.

#2. Set yourself up as an attractive the buyer.

After you’ve done the research on a particular neighborhood and you have a good idea of the area you want to live in and the price range, set yourself up for homebuying success. This means doing the financial homework necessary in order to purchase a home. If your financing the property, talk to a lender about the type of loan that works best for your situation. Get a preapproval letter and set aside some funds either for a down payment and/or earnest money deposit. The larger the earnest money deposit the more serious sellers take you. They may be more inclined to accept your offer then another similar offer that has a lower earnest money deposit.

Another way you can be an attractive buyer is to minimize your contingencies. If you need to sell a particular property, have tough financing contingencies or too many conditions that need to be completed before you finalize the purchase, sellers just see you as a hassle and may decline your offer altogether. Of course we always recommend a home inspection but in a slower market you might consider a home inspection prior to making an offer. This could waive the inspection after the offer is accepted, speeding up the process and making you more attractive to the seller.

#3. Consider a foreclosure or short sale.

Foreclosures and short sales are still out there and they can be great deals. There are keys to look for though in a foreclosure or short sale property:

Find the least attractive property in the best neighborhood. By doing so you can instantly gain equity once the home is fixed up, because it matches the rest of the homes in the area.
Keep your eye out for mispriced listings. Overpriced properties will generally get very little interest and attention and could sit on the market for a long time. These are great properties to go for because they might be more inclined to accept a lower offer.
Buy a foreclosure at the year or quarter end. This works especially well with cash buyers. If you make an offer at the end of a month, quarter or year, many banks will accept that offer in order to get the deal closed and off the books.
Look for the diamond in the rough. Many real estate agents make it too many homes from banks and not have enough time to really research the property and showcase the best features. Check out these properties a little bit closer and if they meet your criteria for size and the neighborhood, check out in person and you might find great features that the real estate agent failed to mention.

#4. Negotiate with everyone involved.

You can negotiate pricing from just about every party involved in the real estate transaction. This could include your real estate agent, appraiser, lender, inspector, escrow and title company. You might be surprised at how much you can save simply by negotiating everybody’s fees in an amicable and reasonable way.

#5. Know When to Pull the Trigger.

Knowing when to pull the trigger is something that you and your buyers agent should discuss. Once you’ve done everything prior to this point, knowing when NOT to wait is crucial. By determining all the factors above, understanding the area and the market, you should be able to pull the trigger on an offer at the right time.

ALSO – know when to walk away. This is just as important as knowing when to go for it. Your agent will be able to talk you through the plan and when not to get your emotions too involved. Sometimes, buyers can get so wrapped up in the process, they overpay when it’s all said and done. Don’t let the idea of “winning” become the focus over getting the right house at the right time.

Ready to get started? Ready for step one? Let’s talk!

10 Important Things to Do Before Buying a House

July 12, 2016 by temineth Leave a Comment

In today’s real estate world more and more homebuyers are being informed and educating themselves on the process, the transaction and the details. This is great and it helps buyers understand and feel more comfortable with their purchase. Before looking and buying a home there are some things that you should do so that you are prepared, well-informed and assured you are ready to buy. Here are 10 things all potential homeowners should do before buying a house.

#1. Know your own finances.

Before applying for a home loan, looking at homes or touring open houses, understand your credit history, score and your own finances. You certainly don’t want to be surprised when a lender discovers that you have a low credit score and that loan you took out 10 years ago never got paid off. Make sure there are no surprises and if you find any errors on your credit history correct them or write a letter of explanation before applying for a home loan.

#2. Shop for the right lender.

There are lots of lenders out there and you should be shopping them just as much is you would shop for a house. The rates, points, fees and costs can all vary from lender to lender so let them know your shopping them so that you get the best deal.

#3. Understand homebuying expenses.

There are a lot of zero down home loans or low-cost home loans out there making it fairly easy for first-time homebuyers to purchase a property however, there are expenses that you need to know about such as out-of-pocket earnest money costs, appraisal fees and home inspection costs. It’s important to have several thousand dollars for these items but talk to your lender and your real estate agent about how much exactly you’ll need in order to buy a house.

#4. Get your own buyers agent.

Find a buyers agent that has this profession as a full-time business. It’s fairly easy to get your real estate license so many people real estate and have a full-time day job however, they may not understand the changes, rules and regulations of purchasing property so it’s best to go with an experienced and seasoned real estate agent so you have someone on your side throughout the process.

#5. Don’t max out your budget.

Just because you can’t afford a $500,000 house, doesn’t necessarily mean you need to max out that budget. Looking for a home around $450,000 will give you a little bit of breathing room and allow you to save money for those home repairs that will now need to deal with in the future.

#6. Don’t let your emotions rule you.

I’ve dealt with many people that fall in love with the house and want it at all costs even though after the home inspection the property is in dire need of repairs and could even be hazardous. Try not to let your emotions get the better of you and try not to completely fall in love with the house until you know it’s going to be yours.

#7. Ask about the homeowners association.

HOA, or homeowners associations are very common in the bay area and Tri-Valley area so you want to double check on how much you’ll be paying monthly for the homeowners association. Single-family homes, residential neighborhoods and condo associations can all have an HOA, so make sure you agree with it before signing on the dotted line.

#8. Consider plans for the future.

For first-time homebuyers it can be difficult to think long-term but the home you by now probably will not be your only home. Consider resale value, location, school districts, and what it would take to sell the property in the future if need be.

#9. Try to look past cosmetics.

Some of the best homes with the greatest deals out there may have peeling, outdated wallpaper, older appliances and wood paneling. But, you can get a great deal and if you look past the cosmetics and see the house for what it really is, you may be getting a diamond in the rough.

#10. Don’t sabotage your finances.

Once you’ve applied for a home loan do not make any large purchases or take out another loan. This can greatly affect your interest rate and even your ability to get the loan at all. Consider putting all of your finances on hold and freeze them until the transaction is complete.

For more information or to get started on any of these steps contact my office today.

Hidden Costs for Home Buyers

July 5, 2016 by temineth Leave a Comment

Buying a house, they said. It will be so easy, they said. Until all of a sudden, you have these hidden costs and fees popping up all over the place. I don’t want you surprised at all with any of the costs or fees involved in buying or selling a house but you do need to know that buying a house does require some money.

There are many billboards, signs and advertisements out there touting the you can buy a house with zero down and no money. Do you really want to be a homeowner if you have no money in the bank? That’s a serious question that deserves some serious consideration.

Now, I’m not saying that you need hundreds of thousands of dollars or even tens of thousands of dollars in order to be a homeowner but there are certain costs and fees associated with buying a house that all homeowners, especially first-time homeowners can tend to be surprised about. I want you aware of everything and doing your homework, including reading this blog post, will put you in a better position financially.

Here are some hidden costs to buying a home.

Out-of-pocket home inspection costs.

This is one of the expenses that will not be included in your closing costs. Unless your real estate agent or financial lender has done some creative consolidating, chances are you’ll need to pay for your home inspection out-of-pocket. This means you’ll need to write a check or give a credit card to the home inspector while they are there before or right after the home inspection. Home inspections tend to run anywhere from $350-$800. On average is about $400. If you can’t afford a home inspection out-of-pocket, you probably should not be buying a house. The home inspection is a vital part of the home buying process and not understanding everything you can about the home from a professional’s point of view could lead to some costly mistakes in the future. Make sure you have this money set aside for the home inspection.

10 Point List to Know if You’re Ready to Buy a House

The appraisal fee.

When borrowing money your lender will want to make sure that the home you are purchasing is worth the amount you are borrowing, which is why they’ll need to order an appraisal that you’ll need to pay for. The lender will typically hire an independent certified appraiser to assess the property value of the home. It will document varies features that make the home valuable and they can typically run between $250 and $600. This upfront fee will be charged directly to the borrower by the lender and may or may not be included in the closing costs.

Escrow fees.

Some lenders will require that an escrow account be set up in conjunction with a mortgage loan agreement. This will house money to pay ongoing property related expenses on the homeowners behalf including homeowners insurance, private mortgage insurance and property taxes. There also may be an additional deposit required at closing for this account. Be sure to check with your lender or your real estate agent about these additional fees.

Potential survey costs.

Not all homes will require a survey but it may be required so everyone knows exactly where your property’s boundaries are. This could be several hundred dollars but again, not required however, you will be paid directly to the surveyor.

5 Secrets Every House Hunter Should Know

Earnest money deposit.

When you first make an offer on a home you’ll need to write a check or money order for an earnest money deposit. This holds the property as the first right of refusal to buy the home. This could be anywhere from 1% to 5% of the purchase price of the home so this is a good chunk of money that could be several thousand dollars. This will go toward your down payment at closing. This money will not be deposited until mutual agreement is secured on the purchase and sale contract.

Closing costs.

When you finalize the sale on your new property closing costs will include a variety of courier fees, escrow and title company fees, appraisals, lending fees, points etc. and may or may not include some of the previous points as well. This could be anywhere from $5000-$20,000 based on the price of the home. This can be rolled into the cost of the home if the property can bear the value however, talk to your lender about this so that you’re not stuck with a $10,000 bill that you didn’t know about.

Buying a home should be fun but understanding all of the details about the transaction and the lending practices will help you be better prepared for the entire process. For more information or to get started or to answer any questions you might have about homebuying in the Tri-Valley area contact my office today.

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