Closing Day Surprises to Keep an Eye Out For

Closing day is an important time for both buyers and sellers. Here are some
potential surprises you could face on that special day and how you can avoid them.

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Today we’re going to be talking about five closing day surprises that are unfortunately all too common:

1. The walkthrough. The walkthrough is a very important part of the process. This actually guarantees to the buyer that they’re receiving the property in the exact condition that it was when they wrote the contract. Maybe there is a hole in the wall, a scrape in the staircase from the movers, or the carpet got stained. Either way, it’s important to make sure that the home is in the same condition as when you wrote the contract.

2. Household items may be missing. In certain cases, household items might get up and walk away. Maybe it’s a chandelier, a fireplace, or something else that was written into the contract that the seller was going to convey to the buyer at the close of escrow. If those items are not there for some reason, approach the listing agent with the contract and ask them. If they don’t know or are unwilling to give them back, at least get a check to cover the cost. Ultimately, you should try to get the items back if they're not there.

3. The lender doesn’t want to make the loan anymore. This usually happens as a result of the buyer’s financial picture. For some reason, they have altered their spending habits. Maybe they lost a job or bought something expensive that messed up their debt-to-income ratio.
 

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A good title and escrow company will
find anything erroneous at the start.

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4. What are the property lines? What chunk of earth are you buying, exactly? If there is any concern that your property lines aren’t lining up with the title, get a survey done. It will make sure that you aren’t encroaching on your neighbor or they aren’t encroaching onto you. 5. Title problems and troubles. Sometimes, there is human error and things recorded against the property that shouldn’t be, such as an erroneous loan or a lien. That’s why a good title company and escrow officer will find what’s record against the home from the beginning. If there is a “cloud” on the title, you can’t go through with the purchase. If you have any questions about any of these closing day problems or anything else about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Why You Need to Be Wary of Home Inspections in CA

Did you know that home inspectors aren't required to be licensed in California? It's crazy to think, but there are ways you can ensure you know exactly what you're getting into when it comes to an inspection.

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Did you know that home inspectors are not required to be licensed in the state of California? It's crazy to think that there are zero licensing requirements here, but states like Washington and Oregon required a license.

Now, we're not the only state; 22 other states across the country don't have any licensing requirements for home inspectors. In my opinion, that's crazy! Additionally, did you know that in the California residential purchase contract, there are absolutely zero requirements for the seller to make any repairs or fixes?

Traditionally in a real estate transaction, the seller is going to give a little bit and the buyer is going to give a little bit. It's called negotiation. If the seller is going to be a hard nose, however, by law, they really don't need to fix anything. That's why you need the representation of an experienced real estate team that knows how to successfully negotiate and keep you from asking for too much or too little when it comes to repairs.

California and 22 other states don't require inspectors to be licensed, and I think that's crazy.

So when it comes to these repairs, you might think that inspectors can take care of them after they identify them. However, they can't.

The California Trade Practice Act states that an inspector who performed your home inspection cannot do the repairs up to 12 months after the inspection took place. They will direct you to a trusted professional, depending on the fix. That could be an electrician, a handyman, or a contractor. This is just another reason why you need a good real estate team representing you during this process.

On our team, we use a guy named Paul Mazzetta of WIN Home Inspection. Paul’s been in one of our blog posts before, and we've been using him for a very long time. He's an amazing inspector who always gives us thorough, detailed reports that we then pass onto our clients so that they can fully understand what they're purchasing.

If you have any other questions about home inspections or you're thinking about buying or selling a home in the Bay Area, give me a call or send me an email soon. I look forward to helping you!

How Much Do You Really Need for a Down Payment?

The average down payment for first-time home buyers isn’t as much as you think.
In fact, as you’ll see today, it’s significantly less.

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I’ve noticed lately that there’s a massive disconnect among first-time home buyers when it comes to knowing what they really need to put down when buying their first house.

You've probably been told that you need to put 20% down when buying a home.

What if I told you that the average for first-time home buyers is only 5%? That’s not something new, either; that’s something that’s been going on for decades! While it’s true that putting more skin in the game means you’ll be more apt to stay in the property longer, if you’re just trying to buy your first home, the average is 5%. Furthermore, there are loan programs that can go as low as 3%.

There’s no shame in becoming a homeowner.

Don't be fooled into thinking you can't buy a home because you are younger and don't have a large amount of money for a down payment. In fact, rentals in our area right now are more expensive than the average monthly mortgage payments.

Now, here’s the cool part: people that are 65 or older are 33% more likely to lend to people that are 34 or younger. If you’re in that bracket, be open to accepting some cash from a parent or perhaps a close friend to get you into that home. There’s no shame in becoming a homeowner today.

If you have any questions about this or any other real estate-related topic, please feel free to give me a call or send me an email. I look forward to talking with you!

How Will Your HOA Impact You as an Investment Buyer?

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Homeowner Associations are fairly common, but what a lot of people don't consider is the dramatic impact that their yearly fees can have on your buying power.

Whether we like them or hate them, HOAs aren't going to disappear anytime soon. Whether you're an investment buyer or buying a home as a primary residence, you'll have to pay these fees. 

As an investment buyer, these HOA fees are undoubtedly cutting into your bottom line. What if you could go out and purchase a bigger, nicer home when you don't have to pay for these HOA fees? The fees can add up to a significant amount over the years.

I used to own a home and had to pay HOA fees. I didn't mind it so much at first. It was a $249 fee, but by the time I moved, the fee had increased to $450 because the Association kept running into problems. When you buy into a HOA, review the HOA Document to ensure you're putting your money into a worthwhile organization. Examine the budget and speak to leaders of the HOA.

HOAs work for some people, but I recommend everyone to look at their budget and ensure that it's a worthwhile investment for yourself and your family. If you knock off the money you pay in those fees, it will allow you a larger total purchase price for a home. 

If you have any questions or concerns about this, please don't hesitate to contact me. I'm always here to help you!

How Can You Help Conserve Water in the Bay Area?

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Buying a home? Click here to perform a full home search Selling a home? Click here for a Free Home Price Evaluation  Call us at (925) 838-4300 to answer any of your real estate questions
Today, I want to touch on something that is affecting, or will affect, all of us if we don't do something about it soon. Of course, I'm talking about the drought! 

For us here in California, we all need to take responsibility for what's happening and actively try to reduce our water usage. If you want to reuse some water, a good idea is to take a few buckets into the shower with you. The water you collect can then be used to water plants around the house and in the landscaping. Also, if you do a lot of cooking, you can take the water you use for boiling outside and water your plants.

There is no better time to upgrade your appliances. Go down to the store and take a look at low-flow appliances, which include shower heads, toilets, and dishwashers that use significantly less water than traditional appliances. These will only cost you a few extra bucks and you'll be helping out our community!  

If your landscaping is dying, you have to let it go. It's unfortunate, but the amount of water it takes to keep elaborate landscapes healthy is just too much in our current climate. Remember, brown is the new green! However, if you really need green in your yard, you can always install fake sod. It's a bit expensive, but it will work out financially in the long run! There are other environmentally friendly ways to make your yard look great, like planting cacti, succulents, and other plants that don't need much water to survive. 

These are just a few ideas that will help you save water and help the communities. If you would like more tips, or if you have some tips you would like to share with us, don't hesitate to reach out to us. We would love to help our community save water! In order to get through this epic drought, it's going to take all of us!

Why Should You Speak to an Agent Today?

Buying a home? Click here to perform a full home search Selling a home? Click here for a Free Home Price  Evaluation  Call us at (925) 838-4300 to answer any of your real estate questions
Today I want to talk about something really important. A lot of people are under the belief that you should only contact a real estate agent when you are immediately planning to buy or sell. That's really not the case. If you want to be the best you can be as a buyer or a seller, you need to get a hold of an agent immediately. 

Here's why: A good real estate agent is going to have their fingers on the pulse of the market, and understand what current conditions are like. So, will you be able to afford it if you wait? Getting in touch with a good agent and talking to them about your motivation for buying will give them a good idea of when it makes sense for you. 

The way other people view your property is not the way you are thinking about it. You may need to do some upgrades and home staging in order to capture the buyer's attention and their imagination. If you are in the Bay Area and would like some help in preparing for the market, give me a call today. If you're not in our area, we can still help you find a trustworthy agent. I network with top Realtors from across the country. 

If you have any other questions, we are always here to answer them. Just give us a quick call or email. Talk to you soon!