Contingency Clauses

Just because you have a contract does not mean a real estate deal will always go through as expected.  There are many things to look out for when it comes to contingency clauses in contracts.  These were, at one time, called weasel clauses.  The reason for this was because a buyer or seller could weasel out of a deal because of one contingency or another. 

There are many contingency clauses in place now to protect both the buyer and the seller.  Here are some of the more common ones being used in the real estate market today. 

1)      Loan contingency.  If the buyer can not get funding in a certain amount of time he or she can back out of the deal.

2)      Sale of another home contingency.  The buyer has made an offer but it is contingent upon whether the home he now has will sell.  If it does not sell within a set time, the buyer is not held accountable for the purchase offer.

3)      Home inspection.  The sale is contingent on whether the property will pass the home inspection. The buyer has the right to inspect the home for any unforeseen damage which may not have been disclosed.

4)      Appraisal.  If the property does not meet the appraisal guidelines set forth by the lender, the buyer does not have to uphold his end of the purchase agreement.

5)      Lead based paint inspection.  When a home has been built prior to 1978, the buyer can have a lead base paint inspection.  If there is evidence of lead based paint, this lets the buyer out of the contract.  The house would be considered hazardous.

6)      Water inspection.  Many times the home is in a rural area where there is no access to city water. The supply is by a well. The well must be inspected.  If it does not pass a health inspection, the buyer does not have to buy the property.

7)      Wood boring insects.  A termite inspection is mandatory so there is no chance of hidden damage.  Although this is a problem which can easily be rectified, many buyers will not buy a home which has had evidence of termites.

8)      Hazardous material contingency.  This is similar to the lead paint inspection.  During the home inspection, the contractor may come into contact with black mold or asbestos.  Unless there is an agreement between the buyer and seller to have this taken care of the buyer can walk away from the deal.

9)      Owners association acceptance. In some condos and town houses, the buyer must qualify for the home owners association.  If they do not get accepted, they will be allowed to back out of the deal.

10)  Title report.  The title report will let the parties know about any liens, encumbrances, or easements on the property.  If these are not acceptable to the buyer, they can walk away and not be held accountable.  Something simple like the seller forgetting to mention the oil company holds the mineral rights to the property and can drill anywhere it wants, may make a buyer think twice about buying the property.

 These are just some of the many contingencies which can be listed in a purchase agreement.  It is up to the buyer and seller to work out as many of them as they can to seal the deal.  Sometimes this just does not happen.  Each party must then move on to the next house or buyer.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

 

 

The maze of real estate contracts.

First time home buyers, and sellers, can become overwhelmed with all the legal aspects of buying or selling a house.  The paperwork can make anyone's head swim.  It is extremely easy to familiarize yourself with the real estate contracts with some simple research. 

The first contract you may run into as the seller is the listing agreement.  This is the real estate contract you will sign with the agent who is going to put your house on the market.  This agreement will state the name, address, and other important information about the seller and the property.  It will also list the terms of the listing.  For instance, how much the brokerage is charging for their services, how much you are selling the house for, how long the house will stay with the broker, and what is included in the sale. 

You will also see a lead paint disclosure form if your home was built before 1978. This form simply states when the home was built and that the seller either does or does not have documentation or information pertaining to the lead paint.  If there is documentation, the seller is required to turn it over for inspection.  If there is no known documentation, the buyer has a certain amount of time to have a risk assessment done to see if a hazardous condition exists. 

Along with the lead paint disclosure is the seller's disclosure.  This is the form which allows the seller to tell about the property.  For instance, if the property is in good repair this can be stated.  The seller is responsible for releasing information on any damage which may have occurred due to flooding or other problems.  If there was an infestation of any kind which had to be professionally treated, the seller will put it on this form. 

The seller will also see another form the real estate agent must present.  This is the agency disclosure form. This is the form which states the agent is working for the seller.  It is important to have this one because some agents work for the buyer, while others are dual agents who work for both.  The seller needs to know who his agent is working for. 

The buyer has an entirely different set of real estate contracts they will encounter.  The mortgage contract will be used to determine the loan amount for purchasing the property.  This will list the details of the purchase.  It will tell how much the buyer will put up and how much the lender will contribute.  There will also be an appraisal done so the property can be properly assessed. 

The purchase agreement is a contract both the buyer and seller will be using.  This is the form the buyer will use to make an offer on the property.  This will also include the amount the buyer is borrowing, any closing costs they are asking the seller to pay, and the amount of earnest money put down.  The purchase agreement will also list what else the buyer would like.  For instance, the window treatments or appliances may be requested in the purchase of the home. 

One of the last forms both parties will see is the title disclosure.  This is the paperwork which states the title is free and clear from all encumbrances.  It also states the seller is the property holder and is allowed to sell the home. 

One final contract is the mortgage paperwork at closing.  This is where the title will change hands, the money will exchange hands, and the property now belongs to the new buyer.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

The Mover's Checklist

Every one dreads moving.  Even if you are moving into the dream home you have pictured all your life, the move is still a pain.  Changing over the utilities, forwarding the mail, notifying creditors, and the packing can all be one big hassle.  With a mover's checklist you can make the process quite a bit easier. 

One month before the move:

Whether you are moving across town or across the country there are certain things you must do.  The first one is to take an inventory of what you own.  You will need to decide what you are going to keep and what can be donated to local charity or sold at a garage sale.  It is easiest to do this on a room by room basis.  Go through each room and box up what you will not be taking with you to the new house.  If you are donating to the charity call to arrange a pick up time.  If you are having a garage sale, plan it for the next weekend.

For parents with school age children, if there will be a change in schools, notify both the old school and the new one so that transcripts can be sent ahead.  This will make it easier to sign the kids into the new school.

Locate the new pharmacy and have your prescriptions transferred. 

Contact the utility companies to make arrangements for disconnecting and/or transferring to the new address.  You will want to contact the new companies to have the utilities turned on the day you arrive in your new home.

Draw out your new floor plan.  This will enable you to know which pieces of furniture will go where in the new house.  You can also determine what will fit and what will not.

Notify the post office with an address change card they provide.  The kit the U.S. Postal Service has will allow you to notify friends, family, and creditors about the new address.

Talk with your bank to have them change the address on your accounts and credit cards. 

Three weeks before the move:

Start using cleaning supplies and foods you will not want to move.  Downsizing the kitchen can be easy during a move. It can be a hassle to move if you do not do this.

Start packing uncommon items you do not use that often.  Labeling the boxes for the new house make it easier to unpack and get settled in.  Many times it is easier to start with things like the off season clothes.

Retrieve items out on loan.  Get any items in the repair shop out.  Make sure all dry cleaning has been picked up.

Notify the newspaper of any cancellations.

Now is when you want to have that garage sale. 

Two weeks before the move:

If you are using professional movers, find an alternative way to move your pets and plants.  These are things the movers can not take on the truck.

Pack as much of the home up as you can.  Remembering to check the attic and basement for stored seasonal items.

Have a moving folder.  This is where you would keep important items you do not want to get lost or misplaced during the move.  Insurance cards, birth certificates, titles, and other things can go in this folder.  Put it someplace safe.

Walk around the outside of the house to make sure you got everything you are taking.  The garden hose, the wind chimes, and even the lawn ornaments can sometimes be left behind without thinking. 

The week before the move:

Pack up anything else you possibly can.

Double check to make sure the utilities will be taken care of and you know what is happening with any deposits you are owed.

Order the new paper delivery service at the new house. 

The day of the move:

Pack up everything you have not gotten to at this point.

When the entire house is empty, do a complete walk through checking closets and drawers as you go.  Make sure to look in the basement and garage as well.  Close each door before you walk out of  the room.  There have been many things left behind doors. 

This is just a small checklist of some of the things you will want to do before you move.  There are other things you may put on your mover's checklist.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

Tips to ensure a safe move.

Everyone gets excited when they are about to move.  It can be a fun and tiring experience all at the same time.  There are certain things you should do to ensure you have a safe move. 

The first thing you need to do is determine what day you are going to be moving.  The people who should know about it are the ones who will be helping you move.  Many times you will have people you only know as distant acquaintances show up to help with the big day.  The best response is to let them know you have enough people already.  Thank them for the offer and send them on their way.  You may think everyone can be trusted, but this is not the case.  Moving is a hard job and very few people volunteer just to be nice.  The ones who did offer are your friends and family.  It goes without saying they will expect the same from you one day.  Taking help from someone you hardly know can lead to things missing when you start to unpack. 

You will also want to make sure you have the proper moving equipment when you are moving.  Things like a cart dolly or two wheeled truck, as they are sometimes called, will be needed to move heavy things like the refrigerator, freezer, washer, and dryer.  Even if you have ten men ready and willing, you do not want someone hurting themselves because of your move. 

Before everyone arrives to help with the move, make sure every thing is packed up, or at least almost every thing.  This will ensure no one is standing around waiting to grab a box.  Having every thing ready to go and waiting on them will make the entire process so much easier for everyone. 

You will want to make sure the walk ways and stair ways are completely cleared.  You do not want anyone tripping and falling.  This is something which should be done periodically throughout the day to keep everyone safe.  People will ask for help from someone carrying a box down the steps. The person will put the box on the steps and help with what ever needs done, completely forgetting about the box.  The next thing you know someone is coming down with a chair or another box and does not see the first one.  Accidents happen like this all the time. 

It is advisable to have a cooler located somewhere which has a supply of ice and cold water in it. This is especially good if you are moving during the summer months.  People will get extremely hot during the moving process.  You want to keep everyone safe by keeping them hydrated. 

One last tip when it comes to having a safe moving experience.  Keep the doors and windows locked.  There are two reasons for this.  The first is obvious.  You do not want any unwanted guests helping themselves to what ever has been moved or still needs moved.  The other is the weather factor.  It never fails that when you are in one house, it will be raining at the other or vice versa.  You can keep floors dry and slip proof by keeping the windows shut when you leave one house for the other. 

You can also divide your help into teams.  Locate one in the new house and keep the other one at the old house.  As the trucks show up to the new place, the second team can unload. This gives the first team a needed break.  When the first team comes back to load up again, the second team is taking their break.  They can also help start to unpack.  

 

You can have a safe, enjoyable day of moving if you just follow the hints and tips suggested here. 

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

The Inspection Process

When buying any piece of real estate there are many details of the process that may come as a shock to you. One of these details is the inspection of the real estate that you are interested in buying. If you think that you are ready to buy a new home you will have to go through this process before you actually make a purchase. This will allow you to learn everything there is to know about a home. After all, do you want to purchase a home that has a cracked foundation? Of course you don’t! But if you do not go through the inspection process you may never find out about a lot of the things that could be wrong.

 As a potential buyer it is your job to pay for the inspection of the real estate property that you are interested in. While this is not a huge expense it is one that you will have to take on. So make sure that you budget for this before you ever start to search for a new home, or any other piece of real estate for that matter. Also, make sure that your home inspection is completed by somebody who has experience with this process. You do not want your inspector to miss a potential problem. If they do this may come back on you many years down the road.

 After your inspector checks out the real estate that you are interested in buying, they will provide you with a detailed list of what is wrong with the home. It is at this time that you must look over each issue, and then address it separately. There is a very good chance that if there is a lot wrong with the home that you may not want to buy it. And even if you do want to move forward in the process you will probably want to negotiate the price based on the issues that your inspector has found. You should never pay full price for a home that did not pass inspection with flying colors.

 Now can you see why the inspection process is so important? If you do not take this seriously you may end up with a piece of real estate that needs more repairs than you had initially thought. And of course if this happens you will get stuck paying a lot of money out of your own pocket. 

Contact or visit Lisa Jones page's.

 

Using a Down Payment to Better your Situation

There are many ways that you can manipulate your cash in order to get into the home you are interested in buying. But with that being said there are some ways that are more beneficial for others. One thing that you will definitely want to consider is using a down payment in order to get things off to a good start. Although you may not think that you have the money for a down payment, chances are that you do and you are just a bit lost on where to get started. No, you do not necessarily need to have a down payment, but you might as well use one so that you can get a better deal for yourself.

 The number one reason to use a down payment is because it will lower your monthly payment. The more money that you put down on a home the cheaper your payments are going to be; there is no denying this. So obviously, you should consider doing whatever it takes to get a good amount of money together for a down payment. It may take you a little while to do this, but over time you should be able to accumulate the money that you need.

 There are many places that you can look if you are in need of a down payment. First and foremost, consider the money that you have in your bank account. Although you may not want to use all of the money that you have, it is a good idea to look here first if you are searching for a down payment. Additionally, you may want to ask your parents or another family member for assistance. Some people do not think that this is a good idea, but if you are close with your family and they trust you to pay them back this is a viable option.

 If you do not have enough money for a down payment at the time that you want to make a purchase you have one of two options available. You can either move forward with the amount that you have, or you can wait a few months or more to see how much money you can scrape together. In most cases you will be better off waiting so that you can use the down payment to lower your monthly mortgage.

 As you can see, having a nice down payment is a great way to get off on the right foot when buying a home. 

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

Should you buy in a Plan?

Over the past few years there have been many trends to hit the housing industry. One of the most common is people who are interested in buying plan homes. These homes are nothing more than properties that are located in a plan with others that look the same, and are located on similarly sized lots. But just because plan homes have become so popular does not mean that you should necessarily buy one. This is just one option that you can consider if you are in the market for a new home.

 So why have plan homes become so popular over the last few years? There is no set reason for this since each buyer has their own agenda. But with that being said there are some generalizations that probably stand to be correct. For instance, most plan homes are relatively new which means that you will not have to deal with costly repairs for the time being. For a lot of people this is reason enough to looking into buying one of these plan homes.

 Another reason for their popularity is the way that they offer great neighborhoods. Generally speaking, these plan homes are more or less secluded from the rest of the world. This does not mean that they are miles away from civilization, but it does mean that they have their own “separate” neighborhood. Most home buyers like this because it gives them the sense of safety and security.

 And finally, since plan homes have just taken off they are all pretty modern to say the least. Not only are the outsides of these homes modern, but the interiors also have a lot to offer in the way of upscale décor. If you are looking for a home that is new both inside and out you may want to consider buying one of the many plan homes that are for sale all over the country.

 Overall, plan homes have a lot to offer. If you are in the market you should at least consider the benefits of one of these homes. You may find out that a home in a plan is perfect for you and your family.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

 

Tips for Making a Land Purchase

 There is a much greater risk in purchasing land than there is in purchasing a home.  This is primarily due to the number of factors influencing a land purchase.  If you’ve never mad ea land purchase before, it’s only natural that you would not be aware of these factors much less the difference between them and other forms of real estate.  You should become familiar with the process of purchasing land before making the actual land purchase.

 Consider hiring an attorney to help you in the land purchase.  When it’s time to negotiate the contract, the attorney will be especially helpful.   Choose an attorney that has previous experience in real estate transactions that deal with land.  This is the best kind of professional to assist you in the process.  You can find an attorney using a directory or by asking for references from people you know.

 You should never assume that you will be able to obtain a building permit for the land.  Don’t make your land purchase under this assumption.  You can be denied a building permit for several different reasons.  The sales contract regarding your land purchase should include a clause that will let you out of the purchase if, unfortunately, you cannot obtain a building permit.  If you don’t include such a clause, you will end up with a piece of land that you can only resale.  Chances are if the land cannot be constructed upon, you will have making a land purchase to someone else.

 Check with the local utility companies to be sure that you can have electric, gas and water services at the site.  Do this before the land purchase.  The last thing you want is to find out this information after you have signed the contract.

 Find out if public sewer lines are available for the land.  The local city hall can assist you in finding out this information.  If you find out that there is not a public sewer line accessible to the land, you will need to install a septic tank.  As you think about the purchase price of the land, keep this cost in mind.

 The city’s building department can let you know if the land is zoned for what you plan to use it for.  Different lots of land are zoned for different purposes.  Also check for any restrictions regarding construction and other uses of the land.

 In some instances, the topography of the land can influence the cost of the work that must be completed.  Have your contractor look over the property to check for any costs that may come up because of the landscape.  It is best to do this check now than to have to pay later.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

 

Tips for Home Builders

 The next best thing to buying your dream home is building a home it yourself.  Building a home provides many advantages over purchasing one that has already been built.  When you build your own home, your only limitations are space and money.  You have complete control over the design of the home and the finished product.  Building a home can be a rewarding process culminating in the home that you’ve dreamt of.

 One of the primary reasons that people build their own homes is so they can customize the home to their own specifications.  As you think about the kind of home you want to build, keep in mind that there is a strong possibility that the home will need to be sold at some point or another.  You might reason that once your home has been built you will live in it forever.  That’s impossible considering that you, yourself, will not live forever.  The way you build your home will have an affect on the ability to resell it.  Some of the features you would love to include in your home may keep it on the market for a longer period of time than expected.

 You should build your home along the lines of those that are already in your neighborhood.  It’s not uncommon for people to want to build in the area that they already live.  These people tend to build homes that are bigger than what is already there.  This makes selling the home a tricky process.  You’ll find that buyers for that neighborhood aren’t looking to pay the price of your home.

 Choose your contractor wisely.  This is the person who is responsible for executing the building a home.  The keys to your new home are in the contractor’s hand.  You should interview several contractors.  The best way to find a contractor is through a referral from a family member or friend that a positive experience.  When you find a contractor you like ask for references.  Be sure to actually interview the references to make an educated decision about the contractor you choose.

 Prepare for delays in the process.  It’s not a good idea to lock in a specific move-in date because it will likely change several times as process of building a home progresses.  When it comes to building a home one delay can cause another which causes another.  Before you know it, the plan is a few weeks off schedule.  Make sure you have a contingency plan in the event that construction goes longer than expected.  Avoid rushing the process of building a home as it will surely have an effect on the final product.

Educate yourself as much as you can on the entire process of building a home from start to finish.  Talk to people who’ve built houses.  Use the internet.  Visit the library.  Information is your best tool in an unfamiliar process such as building a home.  You will have many decisions to make as your home is being built.  Equipping yourself with information about building a home helps you make the best decisions about your home.

 

Contact Lisa Jones and get a better understanding.

 

Six Things You Shouldn’t Do Before Purchasing A Home

Just because you’re buying a home doesn’t mean that life has to stop, or does it?  You never know what affect actions you take today will have on the mortgage you apply for in three or even six months.  Even something as simple as transferring money from your savings to your checking account can create hassle in the mortgage process.  Read on to find out what things you should avoid doing before buying a home.

 Purchase a Car.  Many people are inclined to improve their social standing by purchasing a car and buying a home at the same time.  There’s nothing wrong with that.  Purchasing the car before buying a home will have an effect on what the mortgage lender determines you can afford for a home.  Since a car is such a big ticket item, it can greatly raise your debt-to-income ratio, which lenders use to determine how much of a mortgage you can afford.  Ultimately, the car purchase will decrease the amount you can afford to pay for a home.

 Move Money Between Accounts.  When the lender does the work to determine your eligibility for a loan, they will request statements from all of your accounts that contain liquid assets.  When you move money around between these amounts, especially if they are large amounts, you will have withdrawals in some and deposits in others.  The lender will request the documentation for these.  Unless you want to keep up with all this paperwork, it’s much easier to leave the money where it is until after you have completed buying a home.

 Change Banks.  This can easily be coupled with moving money between accounts.  It just creates additional paperwork for you and the lender.  To make it easier on yourself and the lender, stay with your current bank until the mortgage is complete.

 Become Self-Employed or change jobs if you are employed part-time.  Either of these could have a negative affect on your mortgage approval.  In most cases, lenders want to see at least two years of self-employment they will approve you for a loan.  Wait until after buying a home to become self-employed.

 For part-time workers changing jobs creates unpredictability in the number of hours that you will work from one week to the next.  As such, the lender cannot determine your gross income to qualify you for a loan.  Stay with your current job until you have the loan, then change.

 Apply For a Credit Card.  Even though the inquiry won’t hurt your credit too badly if you already have a good credit score, the additional credit card will cause the lender to question your financial stability for buying a home.

 Make a Large Purchase.  Of course you are going to need furniture when buying a home.  Resist the urge to purchases a new sofa set until after you have obtained the mortgage.  Big ticket items purchased before buying a home can cause the lender to take a second look at your financial situation.

 When you are buying a home, it is best to stay away from anything that will make it look as though you don’t your finances under control.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.