Be Aware of These 3 Things When Buying a Home

There are three important factors every buyer should consider when deciding which home is the best one to purchase. 

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There are three important factors that you need to consider when deciding which house to buy for you and your family.

First you need to consider the resale value of the home. Most of the time, when someone buys a home, they plan to live there for many years. However, life can throw you a curveball, so it’s not unusual to have to sell a house. Pay attention to the neighborhood the house is in, make sure the house is priced properly for the area, and pay attention to other factors that could negatively affect the resale value of your home. Make sure that there is nothing unusual that will limit the appeal of the house to future buyers.

Don’t overlook the resale value of the home.

You also need to pay attention to the structural soundness of the house. Make sure that you order a home inspection before you purchase the property so that you can be sure that the windows are sound and the floors are sturdy. The home inspection will alert you to any major structural issues with the home.

Finally, don’t lose sight of potential costly repairs. Does the home have any HVAC issues? Is the roof near the end of its lifetime? In some parts of Bucks County, you might have to deal with wells and septic issues. A failed septic system can run $25,000 to $30,000 to repair. Keep these things in mind when deciding which property is best for you and your family.

If you have any other questions about the home buying process or about real estate in general, give me a call or send me an email. I would be happy to help you!

The 7 Most Important Closing Costs for Buyers

Closing costs affect both buyers and sellers, but buyers have to be extra careful in accounting for them so that they don’t end up paying extra money out-of-pocket. Here are the seven costs that will have the most impact in determining how much money you will need to buy a house:

1. Title Insurance: Title insurance rates in Pennsylvania are what we call “statutory,” meaning that based on the price you pay for the house you buy, the state determines what that fee will be.
2. Loan Fees: These can include things like the origination fee, whether or not you’re paying points or the appraisal fee.
3. Taxes: There are two components of taxes that you need to be aware of when you buy a house. The first is that when you’re closing on the property, if you’re using escrow to pay the property taxes, the bank will ask you to put aside a sum of money at the closing so that when the property taxes are due, the mortgage company has money to pay those taxes. The second component is the tax reimbursements that go back to the seller. The seller will have prepaid taxes for the period of time balancing out the entire year, but they won’t be in the house. You will have to reimburse the seller, then, for the property taxes that they’ve already paid.
4. Transfer Tax: In Bucks County, the transfer tax is 2%. For all practical purposes, this fee is split between the buyer and the seller. If you’re on the buyer’s side, you’re going to incur a 1% fee at closing.
5. Homeowners Insurance: This can be paid outside of closing, but when you settle on a house, you need to pay one year’s worth of homeowners insurance in advance.
6. Prepaid Interest: When you settle on a house, you pay interest from the day you close to the end of that particular month. Your first mortgage payment is then due the following month. It’s this stipulation that explains why you often see more closings toward the end of the month.
7. Miscellaneous: This covers anything unexpected and relatively minor, like recording fees, conveyances, etc.
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There are many closing costs to account for.

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If you have any questions or need a closing cost example for a property you’re interested in, please don’t hesitate to give me a call or shoot me an email. I look forward to hearing from you!

How Contract Contingencies Protect Bucks County Buyers

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The Pennsylvania Agreement of Sale is a 13-page document that offers certain protections to home buyers so you can make an informed decision. These protections are called contingencies, and buyers have to meet certain timeframes in order to utilize them. There are four common contingencies that you might see in your contract.
 
1. Mortgage contingency. This is the most common contingency. Basically, you have to be able to obtain a mortgage based on the established terms in the agreement. This contingency usually includes a subset that requires the bank to order an appraisal. However, as long as you have this contingency, even if the home doesn’t appraise, you will be protected so long as you file your loan application on time.

2. Home inspection contingency. While you should always get a general home inspection, there are other inspections you can ask for as well, such as radon tests, termite inspections, and swimming pool inspections. When the inspection report comes back, you can negotiate with the seller, take the property as-is, or walk away from the transaction as long as the inspections are completed on time.

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AS LONG AS YOU STICK TO THE TIMELINE, YOU WILL BE PROTECTED BY CONTINGENCIES.

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3. Insurance contingency. Most people forget about this one. You have the right to see if the house can be insured at the usual and customary rates. Recently, I encountered a seller who had filed so many insurance claims on the property that it was very difficult for my buyer to obtain home insurance. This contingency protected my buyer.

4. Homeowners Association contingency. It is the seller’s obligation to disclose the rules and regulations of the community to the buyer. The buyer then has five days to decide whether or not they can comply with those rules. If not, you do have the right to terminate the contract based on the rules and regulations of a planned community.

Remember, this is not an all-inclusive list. There are many other contingencies that protect the buyer, but these are the most common. If you are interested, I can send you a Consumer’s Guide to the Agreement of Sale, which goes through the contract line by line and explains all the elements of the agreement.

If you have any questions about this topic, give me a call or send me an email. I would be happy to help you!

Do You Need a Home Inspector for a Newly-Constructed Home?

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Today I’m going to be giving you advice when you set out to buy a new home in Buck’s County. It’s a little different than when you purchase a resale home, so listen up.

I’ve worked with a lot of builders around town, so I’m going to dispel some myths. One thing that you must do is hire a Realtor when you’re working with a builder. The builder will have their own sales associates, but these people are working in the interests of the builder, and not you. A Realtor will negotiate to get you a fair deal from the builder, and may even be able to get you free upgrades. 

Construction companies usually value my input as a Realtor, and I work fairly closely with builders in this respect. Companies will usually give a Realtor a part of the commission when they help them to find a buyer, so I always recommend pairing with an agent to buy a home. The builder pays the agent’s commission, not you!
 
Another thing I recommend is getting a home inspection done on a newly constructed property. You might think the home will be perfect, but you would be surprised. I’ve seen mold in brand new homes, so don’t take it for granted that a new home means a perfect home. There can still be problems in a newly-constructed property, and it’s always best to catch them early on in the process.

If you need any assistance when buying a new home, don’t hesitate to reach out to me!

5 Reasons Why You Should Sell During the Holidays

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The holidays are around the corner. What does that mean from a real estate perspective? Many sellers explain, "It looks like we'll have to take our home off the market for the holidays since no one is looking anyway." Or if they haven't listed their home yet, they want to wait until after New Year's. This can be a big mistake, so today, I'll share five great reasons why you should have your house on the market during the holidays.

1. There is less competition. Since a lot of people take their homes off the market, there are fewer houses for buyers to choose from. Fewer homes on the market are great for you as a seller.

2. Buyers look at homes throughout the year. Many companies transfer employees over the holidays. These relocating buyers are very strong and highly motivated. They also don't have to worry about selling their current home. If your home is not on the market, you will miss out on these buyers.

3. Buyers who look at houses this time of year are generally very serious. Most people who buy in the winter have to make quick decisions. They are strong buyers who are ready to purchase a home. Waiting until spring means a lot of unmotivated prospects will simply meander through your property. You do not want to miss out on the holiday homebuyers.

4. People feel more festive this time of year. Real estate transactions can get emotional. Since people are more positive during this time of year, this often translates into buyers being more emotionally connected to your house. This makes them more likely to make an offer.

5. Houses show better this time of year. Seasonal decorations create an emotional connection with a buyer and can draw in offers as long as the decorations are not over the top.
 
Over the years, I've sold dozens of homes during the holiday period and represented many buyers during the holidays as well. There may not be a better time of year for you to be on the market.

If you have any questions, give me a call or send me an email. I would be happy to help you!