Tips

From Offer to Closing in 49 Days

With the recent introduction of the RESPA-TILA Know Before You Owe regs, courtesy of the federal government, real estate closings are now averaging 49 days.  As in 7 weeks.  So plan accordingly.

Many realtors write offers with 30 days closings in mind, and then attempt to force everyone to get ‘er done in that timeframe.  They rarely happen in that time, and everyone usually has to adjust and readjust, and readjust some more.

As the housing industry adjusts to the new regs, and gets better with them, the average timeline from accepted offer to closing will likely come down a few days.  Note I said a few days and not a few weeks.  So, when buying and selling, plan accordingly.

“U get what u pay 4!”

You’ve heard that old saw many times, and you know it to be true.  However, for some unexplainable reason we humans repeatedly test its validity.  I guess it comes down to trying to “get something for nothing.”  Instead, what we usually get when we venture down this path is “nothing for something.”

Case in point… A month ago I was talking with a home buyer who lived out of state and was preparing to relocate to central Indiana.  They came up and we looked at a half dozen houses, but none seemed to hit their hot button.  They were either overpriced bad houses, or good houses on terms this buyer really hoped not to pay.  Then, driving around on their own they came across a house that appeared to come pretty close to satisfying their housing wants and needs— and it was a really great deal!  (Or so it seemed.)

Flash forward a month, and I get a call from them, only to hear that they’d bought a lemon, and they were trying desperately to get out of the deal.  The plumbing was in shambles- with sinks, toilets and bathtubs backing up every time they turned around.  On top of that, the seller was a dirtbag, and had spray painted over water stain lines and mold on the basement walls.  So, they have problems, and they need to cut their losses and get out of this lemon before it consumes their money and their health.

Now, I can’t guarantee that when someone works with me that all of the potential problems get revealed before the buyer writes a check.  However, I’ve been doing this a long time and have extensive experience as an inspector, appraiser and building contractor (not to mention realtor); and all of those experiences has put me in a position to recognize and comprehend what’s going on far better than someone buying their first, second, or even their tenth home.  Let’s just say, the odds are much, MUCH better that the house being purchased is going to have real and lasting value.

Housing is a huge investment- many times greater than anything else you buy.  So, be smart and put together a team of trusted advisors when you get ready to buy a home.  That’s what I do for my clients.  My team can save you a whole lotta’ grief, and time, and money.  And steer you away from a lemon in disguise, a pig with lipstick, a money pit.  It’s a lot cheaper to do it right the first time.  Call me.

Don’t be a Wal-Mart shopper!

The modern consumer is stereotyped as buying whatever is cheapest. Of course, you get what you pay for, but there appears to be little concern for that in the mad rush for instant gratification- buying as much as you can with the cash and credit you have available. Only the sticker price matters.

 

Now, I’m not too keen on that when I buy anything, and I’m especially none too keen on it when it comes to buying houses. Take two houses side by side, one brick and one with vinyl siding. Otherwise they’re the same house. Guess what, the brick one is worth more- maybe 5 or $10,000 more. Now, that may be simplistic, but when one goes house shopping, it’s important to do a cost/benefit analysis to determine just what is the best deal for you. (And guess what, it’s not always the cheapest.)

 

You know, a big plus of being a homeowner is that it makes sense to make long-term investments in your home. I mean, what tenant is going to plop down $4000 for granite countertops? Right, none. But many a homeowner will take that step because they’re going to be there a long enough so they can recoup their investment- either in enjoyment or resale value, or both.

When it comes time to buy a house- do not a Wal-Mart shopper be! Be a value shopper!