What to Look for During Your Final Walkthrough

Luxury Home Interior

Luxury Home InteriorThe excitement of buying a house and transforming it into a home can sometimes result in the buyer making an irrational decision. Nobody wants to make an investment that they later regret, which is what the purpose of a final walkthrough is. What is a final walk through, you ask? Well, it is essentially the last chance you will have to walk around the premises with your realtor.

Unless you are aware of what to look for, there is a chance you might miss something, such as an underlying problem that could potentially turn into an expensive repair job. With that being said, it is crucial that you use this time wisely to ensure the property condition has not changed in any way since the last time you inspected it.

Here are the main things you must focus on for the final walk through:

  • Check Repairs – Should there be a problem, get an estimate of how long the repairs will take to complete, so that you can move into the house with no worries about the condition. In most cases, the owner of a property will arrange to repair visible and invisible problems prior to the moving in date. This is the time to check if the repairs requested were made. In the event that the repairs are not required until after the moving in date, a home warranty will cover it.
  • Check Appliances – There are several things you should inspect when you attend the final walk through. Failure to do so might result in you spending thousands of dollars for repairs once you finally move in. Flip the light switch on and off when entering every room, test all appliances, and flush the toilet. Heating and air conditioning may encounter a fault if the appliances are not maintained properly, too.
  • Check for Leaks – Did you know that a leak inside a property can cost you a lot of money? In fact, even the smallest of leaks can increase water usage by a lot. If you don’t take the time to listen for hissing noises, check the leak indicator on the water meter, and investigate the average water usage, it will be you who is responsible for funding the repairs, not the seller.
  • Check for General Damage – Make sure there isn’t any damage from when the offer was submitted to time of the final inspection. If the property condition has changed from the first time you walked around it, you have the right to request the property owner to pay for repairs. An insurance policy will come in handy if you notice damages after you have moved in. However, the type of coverage you receive will depend on state laws, so bear this in mind and contact a claim representative if in doubt.

Once you have completed the final walk through and have deemed the condition to be good, a contract will need to be signed. The contract addendum serves as proof that you are satisfied with the property. Furthermore, it confirms the completion of any agreed-upon repairs.

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Add A Personal Touch When Submitting Your Offer

Business women hands working writing notebook on wooden desk, lighing effect

Business women hands working writing notebook on wooden desk, lighing effectJust because you have your eye on a property and have been shown around the premises by a professional real estate agent, it does not mean that you will be the only person interested in submitting an offer. In fact, there could be multiple people making an offer at the same time, which is why it is imperative that your offer really stands out!

It is rare for a buyer to offer the seller the asking price, with most buyers putting their haggling skills to the test in order to land their dream home for a desirable price. So, how can you peak the seller’s curiosity and improve your chances of receiving a positive response?

Capture the seller’s attention with a personal letter. A traditional tactic that has not lost its touch, personal letters can make you stand out among a sea of bidders.

How to Write the Perfect Personal Letter

Including a personal letter with your offer is known to help get an offer accepted. Below, we discuss the three main points to include in your letter:

  • Personal Information - Opening up to the seller will strike a chord with them. It will help them to get to know you, without even meeting you. Furthermore, it will allow them to make a choice based on who they would (ideally) like to transfer home ownership to. Including personal information in your offer letter that is related to your profession, your pets (if any), and your family size will make your offer stand out. Plus, the inclusion of personal information will prove to the seller that you are a serious and honest buyer.
  • Express Emotion - Connecting with the seller on an emotional level can be a challenge, but if you accomplish it, the chances of your offer being accepted are far greater. Perhaps you have decided to buy a new home so that you can use the leftover expenses to fund a relative’s surgery or a child’s college education? Maybe you want to relocate as a way of feeling safer in the neighborhood? Whatever your reason(s) for wanting to buy a particular property, don’t be afraid to express emotion in your letter.
  • Show Appreciation - It is nice to be nice! Even if the seller already has someone else in mind, this doesn’t mean that they don’t deserve some gratitude. After all, they invited you into their home and took the time to read your letter, right? Be polite and you never know – the seller could change their mind and accept your offer over someone else’s.

When you realize the difference a personal offer letter could make to your chances of being accepted for a property purchase, you won’t want to approach a seller without writing a letter ever again! A well-written letter that demonstrates your suitability for the house can be read over and over by the seller, thus enabling them to make an informed decision. After all, it is their pride and joy they are selling, so they won’t be willing to hand the keys over to just anybody.

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Market trends on home equity: The top ROI home improvements that contribute to home equity.

Beautiful Kitchen in Luxury Home with Island and Stainless Steel

Home equity is the market value of your financial interest minus the debt balance against it. Typically, the largest debt against your home is your mortgage. As you make mortgage payments against the loan, the equity of your home increases. You may also gain equity as your property appreciates in fair market value.1 Understanding your home equity as well as larger home equity trends is key for making a sound investment in property and then increasing your equity in that investment.

Once you’ve invested in property, you must decide which home improvements to make to boost the equity of your home. Before you consider large home renovations, start with the basics. When a potential buyer looks at a home, he assumes that the basic systems are running smoothly.2 No one wants to buy a home and then immediately sink thousands of dollars into a new roof, plumbing infrastructure, or HVAC system. Taking care of the basics will minimize monthly maintenance expenses and put your home in prime condition for potential buyers.
After the home is in good working order, think about tackling a larger renovation. Two of the best rooms to invest in are the kitchen and bathroom. In a strong housing market, a top notch kitchen or bathroom remodel frequently returns over 100% of the cost. People spend a lot of time in their kitchens and bathrooms and will be able to tell whether or not money was well invested in these areas of a home.

Do you live in an older home with only one bathroom? If space permits, it makes more sense to add a second bathroom than to renovate the only bathroom. If your home has two, three, or even four bedrooms and just one bathroom, adding a second bathroom may increase the sales price as much as 8.7%, which is more than double the rate for adding another bedroom.4
If you’re not anticipating a move in the foreseeable future, be honest with yourself about whether you’d get more use out of a bathroom or kitchen renovation. Even if you don’t get quite as much money back doing the remodel that you really want, you’ll get a lot more enjoyment out of the home.

As you weigh varying home improvement projects, think about the value of your house, the average home value in your neighborhood, the general state of the housing market in your area, when you plan to sell your home, and the projects that interest you the most.5 For example, an $8,000 stove is fabulous, but it simply doesn’t make sense to install it in a home worth $220,000. You want to choose home improvements that offer the biggest bang for your buck.

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Buying A Home Again After Foreclosure

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Buying After Foreclosure - Paramount Equity®Many people have been led to believe that once they go through a foreclosure that they are never going to be able to buy a home again. In some cases, they are told that buying a home after a foreclosure is possible, but they will have to have an insane amount of money down, that they will have an incredibly high interest rate and that it will take years to get it. This could not be further from the truth. The fact of the matter is that you will have to take some crucial steps, but you can learn how to buy a home after a foreclosure.

Pay Up

One of the first things you are going to want to do is to get your finances in order. Most likely, if you were behind on your mortgage, you were behind on other bills as well. It is time to do whatever you have to do to get those expenses on (more…)

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Buying a Home After a Bankruptcy

Buying After Bankrupcy - Paramount Equity®Many people believe that it isn’t possible to buy a home after you have a bankruptcy. However, there are avenues available to you if you want to own another home. The trick is to be creative with the type of loan you apply for.

FHA Loans Are Available For Those With A Bankruptcy

Buying a home after a bankruptcy is almost impossible if you go through a traditional lender. However, FHA loans are the perfect option if you are looking for a lender who will be sympathetic to your needs. You don’t even have to have your credit score completely repaired yet.

Borrowers can qualify for a loan with a credit score as low as 620. These standards (more…)

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Debunking Homeownership Myths

paramount-equity-myth

Myths - Paramount Equity®The process of home buying is overwhelming and can be confusing if you’ve never done it before. While friends and family can be excellent sources of advice, it is useful to do your own research as well so you can read about some of the common myths regarding owning a home that are circulating.

The first myth is that you need an absolutely perfect credit to buy a home. The majority of homebuyers have a score in the range of 600 to 700. (more…)

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Is home ownership right for you?

Is homeownership right for you - Paramount Equity®

Home Ownership-Paramount Equity®Many people dream of owning their own home, but is home ownership right for you? Purchasing a home is a major financial responsibility that you will have to consider carefully to ensure that you will be able to take it on successfully. No one likes to think about whether or not they would be able to make housing payments, but it is much better to consider this worry before the mortgage bill is sitting on your kitchen table. Consider the top five steps you should take before you commit to purchasing a home:

  1. Talk with your family about making the commitment. If you are afraid to talk about money issues it can put stress on your relationship, which will make the situation harder to deal with. Talk about your long-term goals and what each adult in your family can and will commit to assisting with your dreams of home ownership.
  2. Evaluate your household income. Know exactly what you are making and how that is likely to change in the next few years. Do not commit to spending (more…)
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Getting Ready for Home Ownership

Getting Ready for Home Ownership - Paramount Equity®

Home Ownership - Paramount Equity®Buying your own home is an exciting event, but it is also nerve-wracking. For home ownership to be a success, you need to do things right, and planning starts well before you actually sign on the dotted line.

As you start getting ready for home ownership, think about these three key areas.

1. Finances

When you are getting ready for home ownership you need to think, not only about the costs of actually buying the house, but also the on-going costs of owning it.

The biggest costs are the down payment and closing costs. (more…)

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