Homes For Sale in Columbia and Mid-Missouri
Area Real Estate News & Market Trends
You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!
Homeowners insurance will keep you protected if disaster strikes. March 27, 2020
Home Inspection Information
A home inspection is an important part of the home buying process. It’s a thorough examination of the condition of the home.
They inspect both the exterior and the interior condition of the home.
You can then take this information and decide if this is the right home for you.
Both home buyers and sellers often use an inspector. A home buyer uses an inspector so they know of any major or minor problems before purchasing a house. A home seller may hire an inspector to help identify problems with their home. They can share the information with the home buyer or make the repairs so that their house may sell quicker.
During a home inspection, an inspector will look at the HVAC system, electrical systems, plumbing systems, the attic, the roof, walls, ceilings, floors, windows and doors, the foundation and any structural components. A home inspection usually does not include inspecting for asbestos, radon, methane, radiation, formaldehyde, wood-destroying organisms, mold, mildew, fungi, rodents or lead. To learn more about these inspections, check out the 14 types of specialized inspections. You can also look at the American Society of Home Inspectors to see what you should expect in your home inspector report. These home inspectors have to follow a Standards of Practice and Code of Ethics.
A home inspection is usually a must for a buyer and if not, you should make it a must. Some mortgage lenders require a home inspection so make sure to confirm with your lender should you decide to forego an insepction.
Buying a home will probably be the largest investment you will ever make, so having peace of mind is comforting. You don't have to be there during an inspection, but it is a good idea if you are. You will be able to follow along and see the problems and ask any questions. If there are any major or minor problems, you may choose not to purchase the house or you could ask the seller to pay for these repairs before you purchase the house.
Just don't nit-pick the small items.
Instead, just address the major issues and safety issues.
BEAR IN MIND -- If you're buying a house that's 20 - 30 years old, the HVAC, other appliances, and roof are probably that old as well. The inspection report may come back saying that they are near the end of life. That doesn't mean that they need to be replaced, and the seller probably won't agree to replace an appliance that is still working. The report is just letting you know that they may need to be replaced in the future.
A good option in this case is to purchase a home warranty or ask the seller to purchase one for you.
This warranty usually costs between $500 - $1200 and covers major defects in certain appliances for a year, providing you with some peace of mind. The home warranty can also be extended once it expires after the first year.
The price you pay for a home inspection is a small price to pay to make you feel secure with such a large purchase looming. Inspection fees vary by region, the size of the house, its age and if other services are needed to be inspected like a well, septic system or radon testing.
An inspection lasts from two to three hours and usually ranges from $350 to $600.
Ask your REALTOR® for some referrals for inspectors if you're not sure who to choose or which inspections to get. Always ask the inspector if they are licensed and what kind of credentials they have. You will be required to pay the inspection fee up front to the inspector.
Some people are under the misconception that a new construction does not need a home inspection. This is totally false. Don't always assume that the builder and contractor did everything correctly. Leave that to the professionals to figure out.
Another mistake that a buyer may make is not following up on the inspector's recommendations. If your inspector recommends getting something further evaluated, don't just sweep it under the rug. Follow up on the situation. Always get several estimates on what it will cost to fix the problem.
Also, inspectors are not psychics and can only inspect things that are visible. They don't know when a problem will arise. Just because something looks okay now, doesn't mean that it won't fail in the near future. They are paid to inspect your house, so they are a very neutral party and will give you their honest opinion.
If you would like more Columbia, MO home inspection information, contact us today!
Posted in
Home
March 27, 2020
Home Appraisal Information
You've found your dream home, but how do you really know that it's worth what the sellers are asking? A real estate appraisal can give you that answer. This comes from an expert that is certified and state-licensed. The appraisal will help keep you from over-paying and protects the bank from getting stuck with a property that's worth less than they paid for it. It is an unbiased professional opinion of the home's value.
Once you apply for a mortgage, the lender will typically require that your house be appraised by one of their approved appraisers. You are required to pay for the appraisal and it typically costs around $400.
The appraisal will be one of the first steps in your closing process. There are two methods to appraise a residential property. The first is a sales comparison approach. The appraiser will compare the property with a few other similar homes in the area. These are often called comps. They will look at the lot size, square footage of the home, style, age and other features of the home. The second method is called the cost approach. This is used more for new property. The appraiser estimates what it would cost to replace the structure if it was destroyed.
Generally, these are the things that are included in a home appraisers report. An explanation of how they determined the value of your property, and the size and condition of the house. It will also describe the improvements that have been made and what materials were used. The report will also let you know if there are any serious structural problems with the home. It will include information about the surrounding area and an evaluation of recent market trends that may affect the value of the home. Also included is a comparative market analysis, maps, photographs and sketches.
What if the appraisal came back low? The first thing you'll want to investigate is why the appraisal came back so low. Are there repairs that the homeowner needs to correct? If so, once they are corrected, you can have the appraiser take a second look. If there are no issues with the appraisal, your agent will submit a form asking the seller to lower the purchase price of the home to the appraised amount. A lender will not give you more money than the property appraises for. In most cases, the seller will lower the price, but if not, you could choose to pay the difference or cancel the transaction.
If you are a seller looking to increase the appraisal of your home, there are a few things that you can do. Give your home a really good cleaning and fix any minor repairs. Keep your pets locked up while the appraiser is there so they do not annoy him or her. Always be honest and friendly with the appraiser and answer any questions they may have.
If you are refinancing your home in a conventional mortgage, a low appraisal can keep you from being able to refinance. Whatever you want to refinance for, the home needs to appraise at, or above that amount. If your existing mortgage is an FHA loan, you are still in luck. You can refinance without an appraisal through the FHA Streamline Program. This is a great option if you are underwater in your loan.
If you are in need of Columbia, MO home appraisal information, feel free to contact us. We are here to help!
Posted in
Home
July 31, 2017
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We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.
Posted in
Market Updates