Talking Real Estate with Hope Leitner
March 2023 Colleen,
Spring is on the way! So is the big real estate inventory crunch. The reality is that there are not enough sellers for all the buyers who want in on the housing market. So, if you've been thinking of selling, think hard. We need homes on the market in San Diego!
That being said, the market is stabilizing and buyers are not so quick to do things like skip inspections, or overpay. Negotiations are back in play as the market is not a runaway train anymore. So, this newsletter talks about some of the things to expect in this new market.
March - Ponder this - “Nothing ever seems impossible in spring, you know.” — L.M. Montgomery This quote is by the author of Anne of Green Gables, one of the most influential novels of my childhood, Anne “with an ‘e’” Shirley’s irrepressible enthusiasm for life and contagious positivity carry her through many of life’s storms. After all these real winter storms we’ve been having I’m looking forward to the coming sunshine, both literally and figuratively. If you’ve been thinking that homeownership is out of your range, give me a call. We can discover what is really possible for you.
Just like you have your taxes done every year, you should also know what your home equity is. You won’t know what you really have until you do. This helps when you're making plans for the necessities of life. Give me a call.
As always, I am here for you, your family, and friends.
Berkshire Hathaway HomeServices, California Properties Christie D. Horn and Associates Cell: (858) 382-3763 |
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HOME IMPROVEMENT, HOMEBUYERS, HOME SELLERS
Sellers: Don’t Be Surprised by Repairs
Repairs or replacements that the homebuyer requires to be completed before closing on the sale of your home can blindside you if you’re not prepared. While any unforeseen expenses are an unwelcome surprise, you’ll still have to fix the problems or risk letting your buyer out of the contract and having to disclose the problems to future homebuyers.
Homebuyers have the right to have the home they’re buying professionally inspected. The purpose of the inspection is to inform the buyer as to the condition, age and likely lifespan of major systems and appliances in the home. As a contingency in the contract, the buyer has the choice to proceed with the contract or ask the seller for repairs or replacements. This is fair because many issues with a home can’t be seen with the naked eye. An inspection gives a rough idea of future expenditures; if there are more problems than the buyer is willing to allow, the transaction will be in jeopardy. The buyer can’t help but wonder what other problems may come to light about the home.
Your Berkshire Hathaway HomeServices network professional knows that the less the buyer finds wrong, the smoother the transaction will be. Before you put your home on the market, hire a licensed home inspector to alert you to unknown problems and repair or replace them so the buyer has no misgivings. You’ll also be able to ask a higher price for your home when it’s in pristine condition.
Who Pays the Closing Costs?
Closing costs are fees paid to third parties to finalize a home purchase, explains Fool.com, by both the buyer and the seller.
Costs can vary widely depending on state requirements, the type of loan the buyer has, the fees that the lender charges, local customs and any arrangement negotiated between the buyer and seller.
Buyers typically pay the closing costs related to their mortgages such as loan origination fees, discount points, mortgage insurance and more. Buyers are also responsible for some third-party fees such as attorneys’ fees, appraisal fees, escrow fees and title search fees, prorated shares of property taxes and hazard insurance, and more. Buyers may be required by the lender to escrow monthly payments in advance for one to three months and property taxes and insurance for up to a year in advance.
Three days before closing, the lender provides a closing disclosure that outlines all fees and the “cash to close” required of the buyer at closing – typically as much as 3% to 6% of the home purchase price. Buyers have the option of paying cash, rolling closing costs into their mortgage, paying a higher interest rate of lender-paid fees and asking the seller to pay them in exchange for a higher purchase price.
Home sellers are usually responsible for the buyer’s title insurance and both the buyer’s and seller’s real estate commissions and/or fees. Seller’s fees can range between 6% to 8% of the home’s sale price and are taken out of the transaction proceeds.
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©2023 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of Columbia Insurance Company, a Berkshire Hathaway affiliate. Information not verified or guaranteed. If your property is currently listed with a Broker, this is not intended as a solicitation. Equal Housing Opportunity. |
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