Kentucky Real Estate BlogRecently posted or modified blog postshttps://www.bestofkentuckyhomes.com/blog/Copyright BestOfKentuckyHomes.com2022-12-06T06:55:48-07:00tag:bestofkentuckyhomes.com,2012-09-20:20337The importance of a home inspectionWhen it comes to a home inspection, the question of “Why is it important and when to do it” sometimes plagues even the more experienced homeowners. In this article, we will be answering that very question. And we will cover the answers for both a home seller and a home buyer. No matter which of these two groups you fall into, after reading this article, you’ll be armed with the necessary knowledge to help make every home purchase go over smoothly.
What exactly is a home inspection?<br />Before we discuss why home inspections are essential and when you should do them, we first have to define a home inspection.
A home inspection is a thorough assessment of the quality of a home’s physical state and the state of all major systems within it. A professional, licensed home inspector does this. This person will examine every corner of a home to determine its overall condition. After this, they will draw up a report, which will draw attention to all the significant flaws in a home. What they won’t do, however, is include information about minor cosmetic issues and easily fixable problems. Additionally, depending on the inspector, they might inform the buyer about the home system’s age.
Although it’s common for first-time home buyers and sellers to avoid an inspection and consider it unimportant, it’s highly beneficial for both parties. It gives peace of mind to the buyer since they’ll be able to make sure they won’t need to spend a lot of money on significant surprise fixes right after moving in. And it also gives the seller proof of credibility; if it goes well, the sale is usually a sure thing.
As a Seller
If you’ve decided to sell your home, asked for a home inspection, and are wondering why it is important and when to do it, you should know that there are multiple answers to that question.
Properly preparing for a home inspection can be a daunting task. There is much to do. But that’s also one of the main reasons a seller can benefit from conducting their home inspection before listing. The home inspector you hire is on your side. He will not only make sure everything that should be up and running is, but he’ll also help you prioritize when it comes to things that aren’t. Some fixes may not be worth fixing in the long run. And some issues might make it impossible to sell your house without addressing them. As you can see, there are many reasons for a home inspection before listing.
A common practice after failing a buyer’s home inspection is offering a credit or warranty on the home. Since it takes less time and effort than waiting for the seller to fix the issues, many buyers will choose this option. However, it also sometimes happens that a buyer might try and scam the seller into giving credit with a fake failed inspection.
That is when hiring your home inspector comes into play. Of course, this is rarely the case, but if something seems “fishy” to you, or you are sure that items listed on the report as problems are actually in working condition, then you’ve got your answer to the “Why is it important and when to do it” question.
Experts advise you to be especially wary of this if you’ve already moved away from the home you’re selling. You not being there to check things right away by yourself makes it even easier for you to be tricked. And unless you want to spend a lot of time coming back to the home you’re selling, your best option is again to hire a trusted home inspector who is already in the area.
As a Buyer
Buying a home is one of the biggest investments most people make in their lives. And a home inspection is crucial to ensure the investment is worth it. However, it’s still common for buyers to wonder why it is important and when to do it. Let’s go through the two most common options for this.
Hiring a home inspector right after the viewing saves you a lot of time and effort. This way, you can just relax and take in your potential home while viewing without worrying about spotting issues yourself. However, a big part is hiring a home inspector you can trust to do everything right. If you don’t hire carefully, you might become a victim of a faulty inspection. The process after that is tedious, and suing the inspector might not even be financially worth it, leaving you pining for justice.
You can find a reputable home inspector in a couple of ways:
1. You can ask people you trust who have also recently gone through this process;
2. You can ask your real estate agent;
3. You can find a potential home inspector with the American Society of Home Inspectors.
It's common for buyers to have too much confidence in themselves when uncovering potential issues within a home they’re viewing. While it is always a good idea to keep an eye out for some key things to look out for during the viewing, you should only use what you notice as directions for a professional home inspector. For instance, if you notice some dampness on the wall, you shouldn’t instantly assume there’s a leak. What you should do, however, is inform the home inspector you hire about it so that he can use his expertise to find out what is happening there.
Relying too much on yourself and skipping out on a professional home inspection just because you considered the home in good shape can be very bad for you financially. Getting a professional to do some hands-on work can save you from a potential disaster in the future.
As you can see, when it comes to home inspections, the question of “Why is it important and when to do it” has multiple answers. However, it will always be necessary whether you’re a seller or a buyer. From saving you from financial disasters as a buyer to ensuring your credibility as a seller, a home inspection can be beneficial in many ways. Of course, there are specific home inspection tips every motivated seller should follow. And every motivated buyer should know to restrain themselves until they get the results of a home inspection back. 2022-12-06T06:24:32-07:002022-12-06T06:55:48-07:00Josh Longtag:bestofkentuckyhomes.com,2012-09-20:13429Is Getting a Home Mortgage Still Too Difficult? <img src="https://assets.site-static.com/userfiles/695/image/getting-a-home-mortgage.jpg" alt="Is Getting a Home Mortgage Still Too Difficult?" title="Is Getting a Home Mortgage Still Too Difficult?" height="410" width="750" />
Potential homebuyers are always cautioned to be aware of mortgage lending standards and the difficulty they might face when trying to obtain a mortgage. Credit availability is expanding, making it easier to get a mortgage now than it was a year ago. The market is still tight however, and homebuyers should be prepared to shop around until they find a lender who is offering something that will meet the needs of their family.
Mortgage lending companies have high standards so it is important to make sure you and anyone else who will be included on the mortgage have their credit in check. The mortgage market is strict because lenders do not want to be put in a situation where they are forced to repurchase loans that are not paid on. They also do not want to end up in a litigation situation due to loan issues.
What Has Happened to the Number of Mortgages?
Due to the strict nature and requirements of the lending companies, the number of mortgages given out has significantly dropped. A report by the Housing Financial Policy Center at the Urban Institute showed that about 6.3 million fewer mortgages were given out between 2009 and 2015. The reasons behind this statistic are strict regulations and policies. These mortgages would have been granted if the lending standards where more reasonable.
Mortgage companies rely on calculations to determine if a home buyer will become delinquent on their payment. They will not give you a loan if you are too much of a risk for them. Credit history has a huge impact on this decision since lenders can see how often you pay back your debts. The history they receive is extensive. This view into your financial past causes lenders to take less risk when lending to you for your mortgage.
The Effect on the Economy
The housing market is recovering at a slower pace than it should since less potential homebuyers are being offered loans. While the market is still recovering with positive trends, fewer buyers can create a strain on other economic factors like home goods or construction jobs. Bottom Line
After the housing market boom and bust, mortgage lenders became stricter in their lending standards. It is not impossible to get a mortgage loan, but it can still be difficult for potential home buyers. Stay on top of your credit and make sure you and anyone else who is applying are in a good financial position so you can be approved for a loan. It is important to research different companies and their requirements to ensure success in getting a mortgage.2022-12-06T06:03:00-07:002022-12-06T06:04:08-07:00Patty Maupintag:bestofkentuckyhomes.com,2012-09-20:13428Why You Should Consider Selling in the Winter <img src="https://assets.site-static.com/userfiles/695/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2022-12-06T06:03:00-07:002022-12-06T06:04:36-07:00Patty Maupintag:bestofkentuckyhomes.com,2012-09-20:13427Common Things to Look Out for Before Buying Your Dream Home<img src="https://assets.site-static.com/userfiles/695/image/3-questions-to-ask-before-buying-your-dream-home.jpg" alt="Common Things to Look Out for Before Buying Your Dream Home" title="Common Things to Look Out for Before Buying Your Dream Home" height="410" width="750" />
It is easy to become overwhelmed when you enter the home buying market. Friends, family, colleagues, and even acquaintances will give you their opinions if you are a first time home buyer. While most of them are looking out for your best interest, they are not fully aware of what is happening in the housing market.
It is important for you to be prepared and have your own questions ready. No matter what other opinions you are getting, you are the one buying the home and your comfort level will help make your final decision. Here are three important questions to ask before you purchase a home.
1. Why am I Buying a Home?
Regardless of the finances, it is important to think about what made you want to buy a home in the first place. Usually the reasons don’t have to do with money. Instead, home buyers are focused on how the house will impact their family in the future. A study done by the Joint Center for House Studies at Harvard found there are four reasons people buy a home. Those reasons include schools for your children, a safe environment, more room for your family to grow, and control of your own space.
These factors are the most common reasons people look to buy a new home. When you ask yourself why you are looking to purchase a home, do any of those factors come up? Spend time with your spouse or family members who are involved in this decision and determine why you want a home in the first place. Creating this list will help when searching for a home and can help your real estate agent find the best home for your needs.
2. What is the Trend with Home Values?
Our current economy and housing market is strong. That means home values and mortgage rates are increasing. If you are looking to purchase a home but want to stay within a budget, it may be in your best interest to move quickly. It is forecasted for these trends to continue in an upward motion, causing home values to continue to increase.
3. What About Current Mortgage Rates?
The ticket price is not the only thing you should be concerned with when purchasing a home. Mortgage rates are always changing and can have a huge impact on your monthly payments. Current trends show mortgage rates are rising. This is something to consider if you are debating the right time to purchase a home, since the rates may be even higher down the road.
Bottom Line
You and your family are the only ones who can determine the right time to purchase your dream home. It is important to decide exactly why you want a new home for your family and decide on a budget that will be comfortable moving forward. This budget may affect the amount of time you have to search for a home, since home prices and mortgage rates are increasing. 2022-12-06T06:03:00-07:002022-12-06T06:05:05-07:00Patty Maupintag:bestofkentuckyhomes.com,2012-09-20:13426Will Increasing Mortgage Rates Impact Home Prices? <img src="https://assets.site-static.com/userfiles/695/image/Mortgage-Rate-Projections.jpg" alt="Will Increasing Mortgage Rates Impact Home Prices? " title="Will Increasing Mortgage Rates Impact Home Prices? " height="410" width="750" />
There has been some discussion recently on home prices in relation to mortgage rates. Some believe if there is a rapid rise of mortgage rates, home prices should decrease. Logically it makes the most sense for the price of the house to drop when interest rates are rising, but this is not always the case.
This theory of home prices decreasing is typically discussed by future home buyers. As a buyer you would like to think if you are paying higher rates on your mortgage, you should be able to see a decrease in cost somewhere else. Unfortunately, these rates are rising because the economy is in better shape. As the economy succeeds, incomes rise, rates go up, as well as the price of the home.
A recent study by the John Burns Real Estate Consulting found mortgage rates have very little impact on the cost of the home. The housing market and price increases are affected by things like job growth in the area and rising wages. Coincidentally, these same factors are causing the rise in the mortgage rates since people can afford to take out more.
Bottom Line
As the economy progresses and strengthens, mortgage rates and home prices will fluctuate. It is a misconception as rates increase, home prices will decrease. Advances in the economy have shown that rates and home prices are more likely to increase together.2022-12-06T06:03:00-07:002022-12-06T06:05:31-07:00Patty Maupin