Consider a Home Warranty
When buying a new home here in California (not just new construction) it is typical that a buyer will request a home warranty, to be paid by the seller, as part of the offer. This is not always to the case is other parts of the country. And it is not mandatory.
A home warranty provides the new homeowner the assurance that problems with appliances, plumbing, and similar issues will be taken care of within the first year of living in the home (depending on pre-existing conditions vs. not and other factors). This can result is a big cost savings shouldthere be significant issues. A “typical” home warranty will run about $250 – $350 depending on the house. And you can add in things like A/C for additional premiums. There are many companies, like American Home Shield, that provide these warranties. But do your due diligence, since companies vary in reputation, service, details of their warranties, consumer satisfaction, and more.
If you are not in our area, you might want to consider obtaining one of these if not offered by the sellers on the home you are buying. Or ask about having this provided as part of your offer (talk with your agent). And they can be renewed each year in many cases. Consider it money well spent.
Explore San Elijo Hills in San Marcos, CA
San Elijo Hills, in San Marcos, is an award-winning master planned community built on the highest point in North County San Diego.
If you are currently looking for a new home, you may want to learn more about this wonderful, newly built, community. There are a number of homes for sale in San Elijo Hills, both resale and brand new, many with terrific panoramic views.
As a San Marcos REALTOR, I can provide more information or answer any questions you have. I hope you enjoy the tour.
Please feel free to email me at JDowler@emax.net or call me on my cell at (760) 840-1360 if I can provide any assistance.
Should I Worry About Mold?
It’s ugly. It smells. Should I worry about mold?
Worry may be a strong word, but it IS something to investigate so you understand the implications if you find it in a home you are buying. Inspectors will probably tell you that most house have some mold or mildew – you probably have noticed it yourself in your bathroom, perhaps in the discolored grout or caulking. Or under sinks. It can grow in many places, provided there is the dampness to support it. And most of us have discovered mold growing on certain foods we find hidden away in the furthest corners of our refrigerators – yuck. And of course there are good molds (which is a fungus), like yeast and penicillin.
So it is far more common that you might believe. If the home you are interested in buying is near the ocean or in an otherwise humid environment, mold problems can be very common. But they may be hidden, and you might not smell anything.
Therefore, one should investigate whether there is a more serious problem with mold during the home inspection, and if so, determine the extent, and cause. And remediation may be necessary. It can destroy various surfaces and materials; and some folks are allergic to it, so it can cause health concerns. Check out the information provided by the EPA for everything you should know about mold, how to prevent it, and ways to get rid of it.
There are lots of companies around that can assist with investigation andremediation of mold. If your inspector finds mold present it might be prudent to have an additional investigation before proceeding with the home. VM3 Environmental is one such company here in the Carlsbad area. Your agent may know of companies in your area.
Explore Lake San Marcos community in San Marcos, CA
Lake San Marcos is a beautiful residential and resort community in the south west corner of San Marcos, about 8 miles from the beach. Because of its location, it often has more of the coastal weather that Carlsbad has, than the hotter weather that you get further inland in the summer.
There are lots of housing options here for first time home buyers, as well as those who are downsizing or retiring.
Buyers Take Heed on Getting Your Loan
I have emphasized, on more than one occasion, the importance of getting pre-approved before you get started on your home search. No point in wasting time looking at homes, only to find out your credit is a problem, or you can only qualify for homes that are far less than what you want. So do it now!
But there is now an even more important urgency to this. With the recent problems in the sub-prime market, 100% financing, and more, there are buyers who now MAY NOT be able to get pre-approved, even though they were in the past.
Other buyers MAY find that the program they were pre-approved for may NO LONGER be available to them.
So check with your lender to make sure things are still OK with you and your pre-approval. You do not want go through the offer process, get it accepted, and then find that you cannot get your loan as planned. Not only may you lose your prospective new home, but you put your downpayment money at risk.
However, DON’T JUMP to conclusions, with all the hoopla about the mortgage industry right now, that you will not qualify for a loan. Take a deep breath, gather your information, and talk to a reputable mortgage broker (preferably one that is referred to you) and find out the real deal on your situation.
Another tidbit – FHA is getting more relaxed about their requirements, easier to work with, and may be changing the cap on the loan limit (at least that is what folks are expecting to happen). I expect we will see other measures in place to deal with the problems that have arisen recently, and possible changes in loan programs and requirements from the big guys like Fannie Mae. Stay tuned.
Explore San Marcos, CA
I posted a recent community info article and tour of San Marcos, CA a few days ago on another one of my blogs.
I hope you enjoy it. Any questions? Let me know.
Interview Your Agent-Employee
Haven’t made a decision yet as to who to use in the purchase of your new home? It’s probably time that you decide, before you get too far down the road.
I’ve talked about Buyer Representation (Buyer Agency) in the past. I hope I’ve convinced you that it is an important aspect of the buying process that you should consider carefully. Sellers have agents represent them, why not buyers?
So, assuming that you are going to hire an agent to represent YOUR interests, how do you do this?
Let’s use an analogy. You are the CEO (or COO, if you prefer) of your company – First Home Buyer, Inc. You are in charge of making a major acquisition – your new home. Pretty important decision. So, as the CEO you need to making a critical hiring decision – so you need to interview your agent-employee.
There are two parts to this discussion. The first, to understand why you should have a Buyer Representation Presentation(i.e., the interview); the second, to learn what sort of things to expect in the process and how to go about it.
Read more about Part 1 on The Buyer Presentation: How do You Benefit?
Happy St. Patrick’s Day
Not much to say at the moment, just a wish for a Happy St. Patrick’s Day.
Wear some green if the mood strikes you!!
Open Houses – Why or Why Not?
Open Houses have been around for years, and many agents conduct them for their sellers. On a rare occasion a buyer will actually buy the home they see at an open house, but the percentage is low (1 – 5% by most reports). Truth is, while open houses are often conducted to keep sellers happy, since they often don’t sell the house that way, a major reason for them is for the agents to attract buyer clients, such as yourself.
There is nothing wrong with this, IMO. But it is important for you to know, as someone who may be attending them.
I do recommend that buyers go to open houses, especially when you are starting your home search, as it is a good way to get to know the market better and explore homes that are for sale - you can see 5, 10 or more in some markets in one afternoon. But many homes will NOT be open, so you will only see a sampling, however it should be part of your home search strategy. Do try to target your search by using on-line or in-print listings of open houses so you don’t waste time going to those homes that are way out of your price range. It’s not fun to walk into a home, fall in love, and find out it is $100K more than you can afford. How disappointing is that?!
If you are working with an agent, make sure you let the Open House agent know this, and sign in with that person’s name. Better yet, leave their business card. Agents will be interested in having you work with them, but if you are already committed, common courtesy would be to let the agent know so they don’t pester you…and if they do, move along. Don’t create confusion for them, or for you, and respect the relationship you already have with your agent.
But if you are not working with an agent, going to open houses can help you meet some agents in the area, and perhaps you will find one that you like and will want to assist you (I have met a number of my buyer clients this way). Don’t be hasty in deciding, but it is a good opportunity to gather information, query the agent, and gain a feel for how they work.
If you really like the house you see at an open house and are interested in buying, I would encourage you to find another agent to help you in the transaction as a Buyer Agent. Using the listing agent to assist is OK, but that agent REPRESENTS THE SELLER and cannot truly represent you as well – this is a conflict of interest (also known as dual agency). And do not reveal your feelings about the home (“this is perfect for us”) as this can harm your ability to negotiate.
Mortgage Update from a Guest Blogger
You have undoubtedly heard about some changes that have occurred in the subprime market in the mortgage industry. As a buyer, it is important to understand what is going on right now and to find out if this may impact you in any way.
A friend of mine in the mortgage industry writes a regular market update. I posted his market update on another of my blogs in its entirety and recommend that you take a look.
Feel free to give Chris a call if you have any questions or need his assistance.
Jeff
