Inspection and Title
Once you are under contract on a home, you will need to work with a title company and a home inspector. Learn more about each process, what you can expect, and why it matters.
Before finalizing the sale of the home, you will have a period of time — typically referred to and stipulated in contracts as the due diligence period — to identify any areas of concern with the home. Once you have reviewed the report and are comfortable with any of the items listed, you can close on your home with greater peace of mind!
It's important to hire a knowledgeable, independent home inspector for advice on the overall condition of the property, Contact Me and I will put you in touch with a trusted professional. The purchase contract usually requires specific time periods for each inspection, and it's critical that these time frames be met. Usually the cost for any and all inspections and re-inspections are paid by the Buyer. Prices can range from $350 to $700 for whole-house inspections.
Some examples of common inspections are:
Structural - Defects caused by poor construction, soil movement, water or drainage conditions, settlement, fire, etc.
Environmental Hazards - Including asbestos, lead-based paint, radon gas or any other toxic material.
Roof - Can include framing members, decking and shingle condition.
EMP - Electrical, Mechanical and Plumbing - Should include electrical and plumbing systems, built-in appliances, heating and cooling systems, swimming pool/spas, sprinkler systems and security systems.
Septic and Wood Burning Systems - Ask if your inspector is licensed to conduct septic and WETT inspections.
Many companies specialize in only one area of inspection, and others will group several together and offer a package price. Whichever route you go, assure yourself you're getting the inspections you need. Many can be found in the yellow pages or Contact Me and I can provide a list of several of each to choose from.
Title vs. Deed
It’s important to note the distinction between Title and Deed. A Title acts as proof of ownership and indicates you have the right to use the property, but it is not a physical document. A Deed is the legal document used as a means of transferring ownership from one party to another. Before you close on your home, both parties will need to sign this document.
Title Company and Title Search
A title company acts as a liaison to legally transfer a property title from one party to another. After you hire a title company, they will conduct a title search on the property and issue a report that verifies that the title is valid and can be legally sold by the seller.
They can also issue title insurance to protect the buyer and the lender should any problems with the property be revealed during the title search. Title insurance may help provide protection even after the sale is complete in the event that title problems are discovered in the future.
Now that you’ve conducted your research and are satisfied with the property, you can close on your new home with more confidence. Your title company will oversee your closing and will work with both the buyer and the seller to distribute money and transfer the title. Welcome home!
A home warranty is an affordable way to cover the costs of unexpected mechanical failure of a major system or appliance. A home warranty is specifically designed to cover the kinds of repairs that home insurance does not: appliances, plumbing and electrical, air conditioning and furnaces, and pool equipment.
The average annual cost of a home warranty policy is between $250 and $400. Most home warranty companies offer comparable coverage within the same price range. The premium is payable at closing and customarily protects you for one full year. Repairs are typically handled through the home warranty company with a minimal deductible. Often times the cost of the first year premium is offered as an incentive by sellers to solicit the sale of the property.
The age and condition of the home should be a consideration when choosing to purchase a home warranty. A fifteen year-old home with original equipment, versus a two year old home will likely have different financial risks. Your REALTOR® can help you decide if a home warranty policy is right for you based on your individual circumstances.
Why Should I Consider a Home Warranty?
Homeownership is expensive enough all on its own, without adding the cost of repairs and replacements. When moving into a home where appliances and systems have been previously used, there is always the chance that the general wear and tear, or the way in which they were previously used and maintained, could cause breakdown and/or complete failure. These repairs/replacements can be astronomically costly and often times occur unexpectedly. A home warranty will protect you financially from most of the frequently occurring breakdowns of home system components and appliances. Contact Me if you have any questions about home warranty's or would like more information about them.
Discuss your unique needs and concerns with your home warranty representative. If you do not have a trusted home warranty representative, your REALTOR® can refer you to one.