When you and your Realtor successfully negotiate an offer to purchase a home and you go officially “under contract”, the next step for smart buyers is to hire an inspector to inspect the home. But what does that entail, and how do you find a good inspector, and how do you know what he finds?

Inspectors are like any other professionals–there are good ones, there are really good ones, and there are not-so-good ones. Your realtor should be able to give you a list of several inspectors that are licensed by the state, and that past clients have hired and been satisfied with.

Call 2 or 3 of the inspectors on the list and find out what they charge, the scope of their inspection, how they will deliver the report and how quickly, how quickly they’re available, etc. Be sure to ask each inspector the same questions so you can compare apples to apples.

Once you hire someone and have an appointment set, it’s important for you to be there for the inspection. If you can’t come for the entire time, find out how long he’ll be there and come toward the end so you can go over the findings with the inspector on site. He should be able to show you pictures he’s taken of problem areas, explain what those problems are, and guide you in deciding whether or not you want to proceed with the purchase of the home.

Your inspector will inspect the whole house. He’ll look at the roof, go into the attic, check the electrical panels, switches, and plugs; he’ll check out the HVAC system, run the heater and the air conditioner to be sure they’re heating/cooling properly. He’ll also run the appliances, turn on all the lights, check windows, look at walls, open and close doors, look at flooring.

Outside, he’ll check the foundation–if it’s a pier and beam, he will go under the house. He’ll look at all exterior trim, check the chimney and fireplace, check water pressure. If the house has a sprinkler system, he’ll check that as well. He’ll check for plumbing leaks, run all faucets, flush all toilets.

If the house has a pool, that may be a separate inspection done by someone who knows pools. Same if the house is on a septic system.

You should also have a termite/wood-destroying insect inspection to be sure there are no termites, carpenter ants, or other pests trying to set up house.

He’ll follow up with a written report that details the results of his inspection and points out items that should be considered for repair.

After you receive this report, then it’s up to you, your realtor, and the decision makers to decide what to do. In Texas, if you’ve chosen and paid for an option period, you have 3 choices; accept the property as is and move forward; exercise your “option” to terminate and receive a refund of your earnest money deposit; or, negotiate with the seller for repairs. Just be sure you make your decision and notify the seller in writing before the end of your option period. Your realtor can explain this process in more detail, or you can contact me and I’d be happy to do so.

Keep a copy of the inspection report. If you choose to ask the seller to repair some of the items, you may also want to share a copy of the report with him/her so that he/she can see exactly what the inspector said about whatever the issue or issues may be.

If you’re not real familiar with all the terminology and workings of a house, you might ask the inspector how much it would cost to fix the things he has noted. He may not wish to answer that question as it is beyond his area of expertise. But he should be able to tell you whether or not something warrants further investigation by someone who can fix it.

Talk to your realtor and let him/her guide you. Most of us who have been in business awhile have found inspectors whose work we trust and who will give a buyer straight answers without making small things into big deals and who will make sure any major
items that present problems will be explained and encourage buyers to have them evaluated more completely.

Good luck! Inspections are important. Unless you have the expertise and skills to evaluate home repairs and perform them, the cost of an inspection will pay for itself in peace of mind!

Do you have a fur baby? Most of us do, and pets add so much to our lives. I know mine does!

While raising my family, we had dogs, cats, guinea pigs, birds, fish, turtles, and probably something else I’ve forgotten about! Now that my nest is empty, I’m down to just one sweet kitty, but I can’t imagine how boring life would be without her!

When you’re shopping for a new home, there are a few things you’ll want to look for to accommodate your fur baby or babies. They don’t care about granite counters or a spa bath, but there are a few things that will make a new house feel like home for your pets.

Here are some things to consider and check for–mostly geared for dogs since they’re a little more “high maintenance” than kitties.

1. Grass! And a fence! Unlike cats, dogs need to go outside to take care of business, and need an enclosed space to do that. Fences need to be tall enough so they can’t jump over and low enough to discourage digging under! If there’s an HOA, be sure the rules allow a fence tall enough for your dog.

2. Dog Park/play areas. If your house’s yard is small and your dog is large, look for a house that’s convenient to a dog park or other open area so your dog can run free and play–dogs need exercise too!

3. Storage–is there a space to store your dog’s “gear”–leash, toys, etc.? If you also have little ones, you’ll want to be able to keep dog toys put away when not in use so Fido’s the only one chewing on them!

4. Flooring–hard floors are a lot easier to keep clean than wall-to-wall carpet! Dogs shed, cats shed, they track in dirt, they track around cat litter, they’re messy eaters. Sweeping up after them is much easier with tile.
And look for floors that can stand up to dog feet–hardwood floors can be scratched with constant running back and forth.

5. Access to the back–is there a door that can accommodate a doggie/kitty door? If so, and if you install one, it will certainly make your life easier and give your pet the freedom to come and go. Highly recommended!

One more thing to consider as you’re looking at houses–are there other dogs in the immediate area? Does your dog get along with others pretty well, or will having a neighbor dog cause a lot of drama? No one likes to listen to a neighbor’s dog bark incessantly, so keep that in mind if there are other dogs next door.

Hope that helps!

Looking to purchase a home?  Your credit score is a crucial part of the transaction!  It will help determine what kind of financing  you’re able to secure, the interest rate you qualify for, and even if you can qualify for a loan at all!  And it’s not just for buying a home!  Insurance companies look at that score.  If you’re looking to lease, landlords consider your credit score as well.

This number is important so you need to take good care of it and protect it!  Scores range between 200 and 800.  The higher the number, the better your score!  620 is the “magic number”!  That’s the minimum most lenders want to see to qualify you for a mortgage!

Here are 5 things that can affect your score–positively or negatively.  Be mindful of:

1. Your payment history!  You must pay your bills on time!  Late payments, bankruptcy filing, liens, collection activity all show up on  your credit report and can impact your score in a negative way.

2. How much you owe.  And also the ratio of debt to available credit.  If you owe a lot on several accounts, you may be overextended and lenders may not want to lend to you.  But if you have a small ratio of debt to overall available credit (and make your payments on time!), that’s a good thing!

3. The length of your credit history.  Your lender and/or your realtor may have told you not to go open new accounts while you’re trying to obtain mortgage financing.  Lenders like to see a history, and the longer the better–it shows that you can manage your debts.

4.  New credit.  Multiple new accounts opened within the last couple of years will impact your score–and not in a good way!  Remember, lenders want to see some history and evidence that you can manage your payments.

5. The type of credit you use.  There are different kinds of credit and in general, it’s good to have evidence of more than one type–installment loans, credit cards, a mortgage.  Again, lenders want to see that you can take care of your debt and your obligations.
You are entitled to a free copy of your credit report every year from each of the 3 credit reporting agencies–Experian, TransUnion, and Equifax.  It’s a good idea to obtain those reports, check them, and report anything that’s not accurate to the agency.  That’s also a good way to find out if someone is opening accounts in your name!

Your credit score can make a huge difference when you buy a home, a car, insurance, furniture, anything that requires you to take out a loan.  Stay on top of your score and save yourself some $$!

Congratulations!  You’ve found a house you love, made an offer, negotiated it, and had it accepted!  Now you’re in option/inspection period and ready to hire an inspector to evaluate the home.  In Texas, realtors give our buyers a list of inspectors who are licensed so buyers can choose who to hire.  I usually like to indicate inspectors I’ve worked with before who I feel have done a good job for my clients, but it’s the buyer’s choice of who to select.  So, now that you’ve made your choice and set up an inspection appointment, what’s next?

First, be sure your realtor has informed the listing agent of the inspection time and who the inspector will be so the seller knows and can be prepared and arrange to be gone.  Try to make your appointment for a time when you and your realtor can be there for the inspection.  If  you can’t be there for the entire time, find out about how long he thinks he will be and try to at least come for the last part of the inspection so the inspector can go over his findings with you.

Keep in mind that an inspector’s license (at least in Texas) requires him to note anything in the home that does not meet current building code.  Depending on the age of the home, that could be quite a few things, as building codes change a lot.  Just because something does not meet current codes, does not mean it needs repair or is dangerous.  It just means that the item is not up to today’s standards, which likely did not exist when the home was built!  A good inspector will let you know if a particular item warrants repair or replacement or not, but don’t panic just because there are a lot of items marked!

Inspectors are not supposed to give estimates of what it will cost to fix something or replace something.  That is not their field of expertise.  They can recommend you consult someone who specializes in whatever the item is, e.g. an HVAC technician, an electrician, a plumber, etc.   He may also suggest that a particular item is a minor repair that can be done easily with a couple of small parts, but if you’re not handy, or don’t know someone who is, always best to get an estimate for repairs from someone who knows!

After you’ve had a chance to see the report and have seen first hand what items have been noted in the report, talk to your realtor about which items you would like for the seller to take care of before closing.   All these repairs are negotiable, and that’s between you and the seller what’s going to be done and by whom.  Your realtor will help you decide and negotiate for the things that are most important to you and explain your options.  Be sure you ask for receipts for all work the seller has agreed to do so you know it’s been done and who did it.

Once those negotiations are complete, you’re moving on toward closing the transaction if you’ve come to an agreement, or finding another property if you haven’t.

Good luck!

I’ve been out with buyer clients quite a bit lately, most recently in the past week.  These particular clients wanted a new home from a builder so we’ve been to several communities around San Antonio, visiting the model homes of several different builders.  These buyers wanted to see finished homes to find out what features and finish-outs are standard and which are upgrades.  Almost across the board, we found some things that were common with all these builders in all these communities.

1–their model homes are all beautiful, decorated to show all the latest popular trends, and all with most available upgrades.   Builder models are not the reality of what they are offering to you.  Be sure you understand that all these beautiful floors, fancy kitchens, gorgeous granite counters, etc., are probably not going to come standard with their homes, but you can pay extra if you want them.

2–all the builder sales reps were nice and very knowledgeable about their products and communities and what was there, what was coming, etc.  For that reason, if you are seriously considering buying a new builder home, you should definitely start at the sales office and talk to the builder’s representative to get important information.

3–in my experience, most builders are happy to work with you and your realtor.  In my years in real estate, I’ve only had 2 times that a builder’s sales rep has tried to muscle me out of a deal with a buyer.  One time, the buyer went for it and I lost; the other time, my buyer said no way and the builder lost.  But those were definitely the exceptions and had to do more with the rep than the builder.  So, by all means, visit with your realtor or let the rep know you’re working with a realtor, and be sure you’ll have someone representing you, just as the builder has a representative on his side.

4–most builders we visited have very little inventory available!  Builders have cut way back on building spec homes and most just do not have much to show buyers that is finished and ready for move-in.  This varies from community to community and builder to builder, but if you’re wanting something ready-to-go, your options are limited.  Expect to either build from scratch, or find something under construction but not ready yet.

5–understand that builders have a plan in place for their community.  They will only build certain homes on certain lots.  You may have a choice of elevations for a home and/or materials for the exterior, but if you want a certain plan on a particular lot, you may be in for a disappointment if your plan doesn’t fit the builder’s plan.  Same goes for the interior finish for your home.  They have a certain range of options available for each home plan; some are standard, some are upgrades, but they cannot deviate much from the options they give you.   And as far as plans go, many builders will offer some options for some things–fireplace or not, study or not, box window here or not, etc.  But other than their pre-planned options, they do not change their plans.  If you want to move a closet here, or add a bathroom there, then you need to visit a custom builder, not a large-volume builder.

6–be sure you’re very clear before you authorize paperwork on exactly what is included, what  you’re paying extra for, and how much those extras are going to cost.  It should all be spelled out for you in the contract, but be sure you read and understand everything.

7–prices are going up; mortgage rates are starting to creep up also.  Most of the builders I visited over the last few days had signs posted about price increases going into effect June 1 (we visited the last few days of May).  None of them were talking about drastic increases, but a few thousand here and a slight increase in mortgage rates can mean a few hundred dollars a month in payments.  Time is money!

8–building a home is an amazing experience, frustrating at times, nerve-wracking at times, but so satisfying and exciting when you finally move in!  Enjoy the ride!