10 Questions to Ask Home Inspectors

• Whether purchasing a new home or an existing one, most real estate experts recommend buyers get a home inspection.

• The inspector plays a critical role in the home-buying process, and to the extent you can, it is imperative that buyers verify that person’s credentials are up-to-date and that all of the important details are covered during the inspection.

• The NATIONAL ASSOCIATION OF REALTORS® has compiled a 10-point checklist to help buyers verify that an inspector meets industry standards. Among the recommendations, the association encourages buyers to ask direct questions about how the inspector maintains his or her credentials.

10 Questions to Ask Home Inspectors

Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors:

1. Will your inspection meet recognized standards? Ask whether the inspection and the inspection report will meet all state requirements and comply with a well-recognized standard of practice and code of ethics, such as the one adopted by the American Society of Home Inspectors or the National Association of Home Inspectors. Customers can view each group’s standards of practice and code of ethics online at www.ashi.org or www.nahi.org. ASHI’s Web site also provides a database of state regulations.

2. Do you belong to a professional home inspector association? There are many state and national associations for home inspectors, including the two groups mentioned in No. 1. Unfortunately, some groups confer questionable credentials or certifications in return for nothing more than a fee. Insist on members of reputable, nonprofit trade organizations; request to see a membership ID.

3. How experienced are you? Ask how long inspectors have been in the profession and how many inspections they’ve completed. They should provide customer referrals on request. New inspectors also may be highly qualified, but they should describe their training and let you know whether they plan to work with a more experienced partner.

4. How do you keep your expertise up to date? Inspectors’ commitment to continuing education is a good measure of their professionalism and service. Advanced knowledge is especially important in cases in which a home is older or includes unique elements requiring additional or updated training.

5. Do you focus on residential inspection? Make sure the inspector has training and experience in the unique discipline of home inspection, which is very different from inspecting commercial buildings or a construction site. If your customers are buying a unique property, such as a historic home, they may want to ask whether the inspector has experience with that type of property in particular.

6. Will you offer to do repairs or improvements? Some state laws and trade associations allow the inspector to provide repair work on problems uncovered during the inspection. However, other states and associations forbid it as a conflict of interest. Contact your local ASHI chapter to learn about the rules in your state.

7. How long will the inspection take? On average, an inspector working alone inspects a typical single-family house in two to three hours; anything significantly less may not be thorough. If your customers are purchasing an especially large property, they may want to ask whether additional inspectors will be brought in.

8. What’s the cost? Costs can vary dramatically, depending on your region, the size and age of the house, and the scope of services. The national average for single-family homes is about $320, but customers with large homes can expect to pay more. Customers should be wary of deals that seem too good to be true.

9. What type of inspection report do you provide? Ask to see samples to determine whether you will understand the inspector's reporting style. Also, most inspectors provide their full report within 24 hours of the inspection.

10. Will I be able to attend the inspection? The answer should be yes. A home inspection is a valuable educational opportunity for the buyer. An inspector's refusal to let the buyer attend should raise a red flag.

Source: Rob Paterkiewicz, executive director, American Society of Home Inspectors, Des Plaines, Ill., www.ashi.org.

www.RealtorLisaWu.com

Heatwave or Up-Hill - Seller Market is Now to Sell

SF April Article

How to Compete in a Bidding War for this Seller Market?

Talking Points

• Bidding wars are back, and while not every local real estate market is experiencing bidding wars, some home buyers find themselves competing for houses because there aren’t many for sale in their neighborhood.

• To compete in a bidding war, buyers need to prepare financially for the home purchase. They have to familiarize themselves with property values in their target neighborhoods, and they must know what they want.

• While offering the most money might seem the best way to win a bidding war, sellers don’t always choose the highest offer. Instead, some sellers prefer offers that are the most likely to go through and that meet certain conditions.

• One way to be competitive in today’s real estate market is to select a lender and loan product, complete everything the lender requires, and have a pre-approval letter in-hand before beginning the house hunt.

More can afford a home, but lenders remain tight-fisted

Nearly half of all California households can now afford the median-priced home in the state – but that’s no help if they can’t get mortgages.

Making sense of the story

• Six years after the subprime mortgage meltdown, banks remain tight-fisted, even with solid borrowers – a fact they attribute to shifts in government regulation and demands that they buy back bad loans.

• Mortgage credit has not eased much since 2007, according to Federal Reserve surveys of loan officers, even while low rates and the housing recovery have borrowers lined up seeking financing.

• First-time buyers and self-employed borrowers must jump through especially complex hoops. Even gold-plated applicants must justify the smallest quirks in their finances in excruciating detail. And, processing applications can take months.

• Lenders say their cautions stems in part from uncertainty over a tougher new regulatory environment, along with unrelenting demands from government-sponsored mortgage buyers that the banks repurchase soured loans.

• Salaried professionals with credit scores in the high 700s have the best shot at being approved for a mortgage loan in this environment, along with borrowers who have never missed a payment and want to refinance.

• However, even these borrowers may face stiff documentation demands, including having to explain any bank deposit other than a regular paycheck.

Source: L.A. Times March 2013

Homebuyers Growing More Optimistic 2013

February Article

What Should You Aware When Purchasing a Foreclosure Home with Tenants in there?

- Disclosure of Foreclosure to Tenants - 

As of January 1, 2013, property managers and landlords in California are required to disclose in writing to any prospective tenants, if a notice of default has been recorded against the property. The law applies to rentals of single-family homes and apartment buildings of no more than four units.

The disclosure also includes a notice that if a new owner takes ownership of a property following foreclosure, the owner will not be able to evict the tenants without a 90 days written eviction notice, in many cases.


For landlords who violate the disclosure requirement, tenants may be able to void any lease and recover one month’s rent or twice the actual damages—whichever is greater. Tenants may also be able to recover all prepaid rent from the landlord, if the landlord violates the disclosure requirement, according to the new law.

Should the tenant not be notified properly and the property is in escrow, it could delay the closing escrow and issuing title insurance.

If a title company is being asked to insure the sale of the property after a foreclosure, they may require an affidavit from the owner stating, if there are tenants or anyone else in possession of the property.

Source of Information from Cornerstone Title Company - January 2013

Did Housing Price Went Up 33% or Less? Seller Market! Multiple Offers! Price Bidding Wars!

Data from professional sources such as DataQuick shows 33%

over year increase on median price.

http://blog.sfgate.com/stew/2013/01/16/bay-area-home-prices-surge-fastest-pace-in-decades/

This doesn't mean that the price of a particular house has gone up 33%  over the year,

so don't panic.  The median price is sometimes misleading because it shows the mid 

point of all selling price.  If the mix of people buying more expensive house goes up 

compared to lower priced house, median price goes up even if the price for individual 

house has not moved a single bit.  Also note that the monthly median price figure is

quote volatile (kind of like daily stock price) and can jump up or down significantly

from month to month.

With that said, this median price increase is a combination of the two.  My clients 

are definitely seeing solid competitions in making offers to buy properties.  The low end 

still has the most competitions with lots of investors with tons of cash in the mix.

However, I am seeing more action in the mid-range where many buyers are looking at also.

Whether this price increase will continue in the near term or move up a bit more or slow

down a bit is anybody's guess.  However, I think it is safe to say that the "great real 

estate sale of 2008-2012" is over.  If you still want to own your own place (it is as much

a lifestyle choice as it is a financial decision), time to get moving.

My Real Estate Team is very experienced in negotiation and seasonal advise, which includes among other things, an experienced real estate attorney.  Every transaction that I managed is also reviewed by multiple experienced people to ensure that things are done properly. Over the years, I have helped clients overcoming all sorts of thorny issues, before- during -and -after the real estate transactions,and in many cases, saved them tens of thousands of dollars.  Buying a house is a very important and complicated decision,   Make sure you have the right representation.

Call me when you are ready.  Have you gotten a loan pre-approval yet?  

www.RealtorLisaWu.com