If you’re selling your home, you can expect to undergo a home inspection before you finalize the deal with your buyer. 

A recent survey by Porch indicates that around 88% of buyers requested a home inspection before closing on a home sale. In most cases, mortgage lenders prompted this requirement.

This time-consuming process often leads to extra expenses and can cause the buyer to withdraw their offer.

As a seller, it’s helpful to ask yourself, ”What do home inspectors look for?” Then, find the answers, so you know how to prepare for this eventuality and streamline the procedure as much as possible. 

What Is a Home Inspection?

Many home purchase contracts feature an inspection contingency. This provision gives buyers a chance to discover any serious problems before they close on a property.  

It’s their last chance to find defects in a home and get the seller to pay for them, withdraw their offer, or renegotiate before they close on the sale.  

For most buyers, especially in a seller’s market, it’s simply a chance to help them predict any extra costs associated with buying the home. It may also reveal less serious issues that the buyer should address if they want to avoid problems later. 

The home inspector isn’t going to dismantle the house in search of problems, it’s their job to evaluate easily accessible and visible aspects of the home.

In this way, they provide a reasonably accurate picture of necessary future repairs and maintenance issues. 

How Much Does a Home Inspection Cost?

According to the Department of Housing and Urban Development, home inspections cost between $300 and $500 depending on the size and location of the house. 

The buyer pays for the home inspection and chooses the home inspector. So, the onus is on them to find a qualified, reliable, and experienced professional for the job.

In rare cases, they may ask the seller to pay for the home inspection. 

How Long Does a Home Inspection Take?

Most home inspections take two to four hours to complete, depending on the circumstances. 

The size of your home, the number of defects, and the thoroughness of the inspector are the main variables that affect how long a home inspection takes.

If you prepare your house thoroughly before the inspector arrives, they can get their job done quicker, too.

Home Inspection Checklist for Sellers

One way to prepare for a home inspection is by arranging for an inspector to visit your home before you put it on the market.

The buyer will likely insist on their own inspection. Yet, this exercise helps you find answers to the question, ”What do inspectors look for in a home inspection?” before the buyer’s inspector arrives.

It also gives you a chance to fix any defects in advance.  Be sure to address any minor, inexpensive fixes before they arrive; it will make things a little quicker and gives the buyer fewer reasons to haggle over the sale price. 

If you’ve kept your home well-maintained, you won’t have much to worry about in this regard, but you’ll need to put in a little extra work if you’re selling an inherited house with an uncertain past.  

Before the buyer’s home inspector arrives, there are things you can do to make their job a little easier. These are:

• Labeling any relevant keys and making them easily accessible 
• Turning on pilot lights for furnaces and fireplaces 
• Tidying your basement, so they can easily view your water heater and HVAC unit 
• Tidying your attic 
• Cleaning up your yard for easy access to drainage access points, septic tanks, and crawl spaces
• Ensuring the utilities are active and operational

These niceties won’t give you any extra leeway when it comes to the results, but a little courtesy goes a long way toward streamlining the process.

What Do Home Inspectors Look for During an Inspection?

According to the American Society of Home Inspectors (ASHI), each state has its list of requirements regarding home inspections.

However, most home inspectors must review the following aspects during their visit: 

• Basement
• Foundation
• Structural components
• Walls, ceilings, and floors
• Doors and windows
• Central air conditioning system
• Heating system 
• Electrical systems and Interior plumbing 
• Attic and insulation
• Rain gutters and roof

The home inspector conducts a thorough surface inspection of the above items as far as possible. 

Of the above, five items typically present issues, and the inspector focuses most thoroughly on them. Let’s review them.

The Foundation

Defects in your foundation impact your whole home. This structure supports the framework of the house and everything in it. 

Foundation repairs are extremely costly and can amount to as much as $15,000, so any issues in this area can cause sellers to back out fast. What Do Inspectors Look For in a Home Foundation?

Home inspectors walk around the perimeter of the home looking for sloping, cracks, and settlement problems. They’ll also look for signs of moisture in the crawl space, like warping and mold or termite damage that could affect the wood supports. 

If you’ve recently had your foundation repaired, they’ll check the quality of workmanship.  

The Roof

Roof repairs range from $150 to $1,500, and replacing a roof can cost as much as $12,000. Most roofs last about 30 years before you’ll need to replace them, provided they’re well maintained. 

A good quality roof affects the home’s energy efficiency, will determine whether you can install solar power or not, and enables good ventilation. What Do Inspectors Look For?

Inspectors may evaluate the roof from a ladder, view it through binoculars, or climb on top of it.

They conduct a quick evaluation of its water-tightness and overall appearance and look for signs of potential problems, like:

• Moss growth
• Missing shingles or tiles
• Broken or missing gutter, vents, and flashing
• Attic ventilation issues

Home inspectors often recommend that a qualified roofer conduct a detailed inspection.  

Plumbing Systems

Water leaks cause high utility bills and can result in flooding, mold growth, and structural damage. They’re often difficult to detect, too, which can lead to massive water mitigation costs down the line. What Inspectors Look for When Inspecting Plumbing

Home inspections include anything to do with water flow, i.e. spigots, toilets, sinks, faucets, showers, and pipes. The inspector will make a note of any leaks, corrosion, cracks, and evidence of substandard repairs.

They’ll also pay attention to floors, walls, and ceilings to look for signs of moisture, cross-connection, or contamination issues.  

Electrical Aspects

A home’s electrical systems have a major impact on how safe it is. Electricity causes 51,000 residential fires every year. Electrical repairs can cost as little as $150 for a minor repair to $2,200 to rewire the house. What Do Home Inspectors Look For?

Home inspectors evaluate the electrical panel in minute detail to ensure everything is up to code regarding wiring and grounding. They’ll also check for correct amperage ratings and corroded wires. 

The house should have ground-fault circuit interrupters throughout the house to prevent electrocution, and all the switches must work properly.

If there’s any doubt about the safety of a home’s electrical systems, the home inspector will recommend a more detailed inspection by a qualified electrician.  

HVAC System

HVACs can cause ongoing hassles and high electricity bills and can cost as much as $12,500 for a new one. While regular repairs can keep an HVAC running smoothly for years, most older models don’t meet modern energy-efficiency standards. What Do Home Inspectors Look at When Inspecting an HVAC?

The home inspector will usually turn on the heater and air conditioner when they arrive at the house and leave it running. This enables them to gauge if they’re working efficiently. 

Things That Aren’t Included in a Home Inspection

While they’re only a small sample of the things home inspectors evaluate during their visit, the above items cause the most problems overall. They’re also among the most expensive issues for new homeowners to rectify.

Despite doing a thorough job, there are some things a home inspector can’t or won’t pass judgment on. These are: 

• Anything they can’t access 
• Compliance with local codes
• The value of the home
• Landscaping issues
• Appliances
• Septic systems and wells
• Interior decor items like wallpaper, paint, and furniture
• Anything behind a wall cavity

If you’re present during the home inspection, you can help the inspector access locked or blocked features.

If desired, the buyer can request separate inspections for things like septic systems, unpermitted work, and code compliance, and arrange for an independent assessor to evaluate the home on their behalf. 

They may also request further inspections for safety aspects, like:

• Termite infestation
• The presence of radon, lead, or asbestos
• Water damage and mold 

The home inspector may offer some of these additional services or recommend someone who can carry them out. 

What Happens After a Home Inspection?

Depending on the buyer, the sale of your home could proceed without a hitch if the home inspection reveals only minor defects in the house. 

It’s good practice to agree to fix small issues like a leaking faucet or chipped paint before the buyer moves in, but you’ll need to engage in some negotiating if the home inspection reveals more serious issues.  

Safety and structural issues represent red flags for buyers, and they may request further inspections to put their minds at ease before buying the house. 

What Happens If the Inspection Reveals Problems?

Your home can’t pass or fail a home inspection. The inspector’s job is simply to point out areas for improvement or components that do not meet the minimum standards. 

Most home inspection checklists are pages long and full of recommendations to repair or replace items. 

It’s up to the buyer to decide what to do with this information. They have four options once they receive the report from the home inspector.

Ask the Seller to Pay for the Repairs 

If you can afford to pay for the relevant repairs and are keen to sell your home, it’s worth considering this option.

Keep in mind that small issues can sometimes reveal more extensive and expensive issues on further inspection. So you could end up losing more on the sale of your home than you bargained for.

The buyer can’t force you to pay for these repairs, but they can withdraw their offer if you refuse. 

Pay for the Repairs Themselves

In a competitive market, sellers are often willing to wait for another buyer to come along. Sometimes, they’ve already reduced their price to hasten the sale.

If the buyer is very keen on the home and can afford to pay for the repairs, they may opt to do so. 

Share the Costs

The buyer and seller can agree to meet each other halfway. They could either pay half of the costs each, or the seller might agree to reduce their selling price by half the cost of the repairs.

They could also each agree to pay for specific repairs. 

Back Out of the Deal

Lenders won’t mortgage a home unless they can get their money back in a foreclosure sale. So, it doesn’t make sense for them to give a buyer more cash for repairs.

So, if the buyer does not have extra funds to pay for any necessary repairs or doesn’t want to pay for them, they’re often forced to walk away from the deal. They’re entitled to do so within the time frame mentioned in the home sale contract.  

How to Avoid Home Inspection Hassles

There you have the answer to your question, ”What do home inspectors look for?”.

With this knowledge, are you doubtful about whether your home will make the grade if a buyer sends the inspector around?

There is an easier, less stressful alternative. An iBuyer won’t expect you to go through the anxiety associated with a home inspection. We can connect you with qualified buyers who pay cash for houses in less than perfect condition.

Try our home value estimator to receive a fair estimate of what you can get for your house right now.

The post What Do Home Inspectors Look For? appeared first on iBuyer Blog.

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Did you know that clutter can cause anxiety? If you’ve been feeling extra stressed lately, your messy home isn’t helping.

Decluttering is stressful too, however. It seems like a gargantuan task if you don’t know how to declutter your home. How do you even get started? 

We’re here to offer some quick advice that can help you get the ball rolling. Whether you’re decluttering for yourself or you’re getting ready to sell your home, read on for our “how do you declutter” checklist.

“Declutter Your Home” Checklist Supplies

Key Takeaways:

• Gather supplies first
• Use multiple large labeled containers
• Use what you have at home
• Consider a timer

The decluttering process is going to start with gathering supplies. The last thing you want is to be halfway through decluttering a room just to realize that you don’t have something you need. This will make you lose focus and thus, make the process take even longer. 

Your specific supplies will vary depending on how large your space is, how many items you have at home and the resources that you have available to you. 

You don’t have to go out of your way to buy new boxes or bags. Use what you have.

You’re going to need several containers. Because you’re going to declutter room-by-room, you can just keep one set if you’re able to empty the containers between rooms, but it might be best to have a set for every room if you’re able to do so.

Large boxes or bags work best for this. Bags are best for items that are going to go into the trash or are going to be donated. Boxes are good for items that you plan on keeping, but you can use either boxes or bags for any items. 

You’re going to label your containers with:

• Keep
• Throw away
• Repair or repurpose
• Donate
• Wrong room

If you know that you have things that may fit into a unique category, feel free to add another container. 

We also recommend using a timer, especially if you have a hard time staying focused. This will allow you to take breaks and give yourself challenges that can keep you motivated.

Basic Decluttering Tips

Key Takeaways:

• Break it into chunks
• Smaller is better
• Don’t leave your designated decluttering area
• Gamify the decluttering process
• Enlist help

Decluttering is overwhelming, but if you break it down into chunks and stay committed to the process, you’ll be able to make quick work of even the messiest space.

First, we recommend targeting a specific area to declutter. If your rooms are quite small, you could do an entire room. With this in mind, it’s better to focus on an even smaller space, such as a closet or even a messy shelf.

This way, you don’t lose focus or motivation. When you try to go room-by-room or cover the entire home all at once, it’s difficult to see progress. When you combat a small area, you’ll see the results, and you should feel better about continuing the project. 

This is why the “wrong room” container is so important. When you find something that belongs somewhere else, don’t waste time by placing it elsewhere. Put it in the “wrong room” box so you can keep decluttering distraction-free.

Alternatively, you can declutter by category. Start with books, for example. 

Try to turn decluttering into a game. Set the timer for a set amount of time and challenge yourself to declutter a specific area before the timer goes off. Give yourself a reward if you beat the timer (but make sure it isn’t too distracting).

If possible, enlist help. It will be more fun to work with other people, and it will prevent you from wasting too much time or energy on sentimental items. Other people will be able to be objective.

Finally, consider using the Marie Kondo Konmari method. If it isn’t useful and it doesn’t bring you joy, it’s time to let it go. It seems simplistic, but this method was popularized for a reason.  

Bathroom Declutter Checklist

Key Takeaways:

• Throw out empty or expired toiletries and products
• Wipe down the counters and drawers once they’re decluttered
• Use labels to create designated spaces to prevent mess
• Try DIY bathroom storage solutions

You can start decluttering anywhere, but for the purpose of this article, we’re starting in the bathroom. It’s often the simplest room to declutter, and it’s easy to get it out of the way and feel like you’ve made serious progress. 

Start with anything that absolutely does not belong. Consider bringing in a hamper for things like dirty clothes or towels that are taking up space. You want to get them out of the way as soon as possible. 

The counter likely looks overwhelming, especially if you have plenty of beauty products. Go through all of them and throw out anything that you either don’t use, that’s empty, or that’s past its expiration date. Do the same for the products in your bath or shower. 

Open up your drawers, cabinets, and medicine cabinets. Get rid of any medications or ointments that are no longer usable. Look for empty bottles. 

Wipe down the counters, drawers, and cabinets with a microfiber cloth. 

We recommend allocating specific spaces for all of your bathroom items (consider using labels if you have a hard time keeping a tidy space). Put everything back in its designated space.

Bonus tip: This is a great time to try some DIY bathroom storage solutions, so your area doesn’t get cluttered as quickly in the future. 

Kitchen Declutter Checklist

Key Takeaways:

• Split it into sections (don’t worry, we did it for you!)
• Remove everything from the refrigerator and pantry first
• Clean your refrigerator and pantry before replacing items
• Get rid of anything out-of-date
• Donate your unused non-perishables 
• Label leftovers for easy future decluttering
• Try a “one in, one out” policy

Decluttering the kitchen is more in-depth. Many people find cleaning the kitchen scary, but you can’t avoid it forever. As long as you stick with it and avoid distractions, it should go by quickly.

The best thing about decluttering the kitchen is that it quickly clarifies what items you should and should not keep. There are very few “sentimental” items that you’ll need to declutter in there.

Let’s break it down into sections for this kitchen portion of your “declutter home checklist.”

Decluttering the Fridge

While this article isn’t about cleaning, keep in mind that you should take the opportunity to clean your refrigerator after you take out everything inside of it. This doesn’t happen often, so take advantage of it.

We recommend turning off the refrigerator while you do this, but if you work quickly, that won’t be necessary.

Remove everything from your fridge and freezer. Everything that’s past its use-by date or that doesn’t pass the smell test should go right into the “throw-away” bag. 

If there are leftovers that you don’t remember, we recommend tossing them. 

Check all condiment containers to make sure that they’re still full. If you have multiples of certain condiments, either throw one away or combine the containers. If you choose to keep both, make sure that you make the older one more visible in the fridge when you put everything back, so you’re more likely to use it. 

Wipe down the walls and shelves before you put all of the items back in the fridge.

Bonus tip: start labeling your leftovers, so you always know when something is too old to eat. This will save you time in the future.

Decluttering the Pantry

When you declutter the pantry, you’re going to start off the same as you did when you were decluttering the refrigerator and freezer. You’re going to remove everything and place it on the counter.

The pantry gives you the opportunity to donate certain foods instead of just throwing them away. While you should still throw away everything that’s out-of-date, shelf-stable nonperishables that you don’t plan on using should go into the “donation” container to take to local food banks or put into local food pantries.

When you’ve rid yourself of the things you no longer need, start organizing. This will make it less likely that you end up with more overwhelming clutter in the future (and it will make your pantry look nicer and make it easier for you to find your food).

Before you put things back into the pantry, wipe down the shelves and walls. 

Decluttering Kitchen Essentials

This is where things get tricky. While food is easy to declutter (either it’s edible or it isn’t), other kitchen essentials pose more problems. 

Remove all of your utensils, pots and pans, storage containers, small appliances, and everything else that’s in your kitchen that isn’t either edible or a fixed appliance.

Bring out your trusty containers. You’re going to need them. 

Look for items that are broken and get rid of those first. Those pans you never use because the non-stick coating has worn off? That’s right, it’s time for them to go into the “throw-away” container. 

Then, look for items that you have unnecessary duplicates of or that you’d like to get new versions of. For example, if you have a perfectly good can opener but you’re ready for a new one, get rid of the one you have and donate it. 

This is a good time to implement a “one in, one out” policy for yourself. When you want to buy a new plate or mug, get rid of one you already own to avoid getting more clutter in your home.

Closet Decluttering Checklist

Key Takeaways:

• Track your clothing
• Avoid getting sentimental. If it doesn’t fit, it goes
• Consider repairing or repurposing old clothing
• Donate sentimental items like prom dresses and baby clothes

For the most part, this is going to refer to standard bedroom or coat closets that mostly contain clothing and personal belongings. Using the same general principles, you can expand this to include children’s closets that include toys.

Before you start decluttering, we recommend trying to make a habit of tracking the clothes that you (or your family member) wear. Try placing hangers in the closet backward after putting recently-worn outfits on them. This way, you’ll be able to identify clothes that you no longer need.

When it comes time to declutter, go through every item in the closet and have an honest talk with yourself about whether or not you’re actually going to wear it again. If it’s too small or too large, it’s best to donate it rather than waiting to be that size again. 

Items with tears or stains can go either into the “trash” or “repair and repurpose” containers. If you’re someone who likes to sew or turn old clothes into rags, you may be better off recycling. 

Items in good condition that you no longer need should go into the “donate” container. 

If you find yourself getting too sentimental about the clothing you know that you’ll never wear again, try to imagine how much good it can do for someone else. For example, if you have an old prom dress, find a local group that donates prom dresses to teenagers who can’t afford them.

Bedroom Declutter Checklist

Key Takeaways:

• Invest in under-the-bed storage methods
• Keep a hamper in every bedroom
• Throw away old school or work assignments (and keep up with it)
• Invest in new storage solutions

The closet is the biggest part of your bedroom decluttering session, so once that’s out of the way, the rest is easy.

We recommend investing in some storage containers that fit under your bed. Use them to house some of the items that are cluttering up your space but that you can’t get rid of (such as linens or favorite sentimental belongings).

Put a hamper in the bedroom if there isn’t one already. Keep all blankets and clothes off of the floor and put them in the hamper when they’re ready to be washed. 

Take a look through your desks and drawers. Look for old things that you no longer need, like old school and work assignments. Throw them away or donate things that other people may want.

Take this time to invest in shelves and other storage solutions. Again, you want to make sure that everything has a place. When something no longer has a place, you know that it’s time to get rid of it. 

Living Space Declutter Checklist

Key Takeaways:

• Alternative storage solutions are your friend
• Put cords in a central location
• Have a designated “stuff bin” for toys, blankets, and other living space items

So what about the rest of your living space? This will include your living room, your home office, or any other room that doesn’t fit into one of the previous categories. 

Make sure that you have plenty of storage solutions. You should never give yourself the opportunity to stack things in piles. If you have places for things to go, you won’t end up with clutter.

Gather all of the cords for electronics and place them in an easy-to-find container. It’s best to keep this near your home’s entertainment center.

Put items that belong in the living room but often get messy into a designated bin. We recommend multi-use ottomans that open up into helpful storage containers. They can store toys and linens with ease.

That’s How to Declutter Your Home

Decluttering is a lot of work, but once you know how to declutter your home, it goes by quicker than you’d think. This “declutter house” checklist can be finished in a single weekend if you’re diligent (especially if you ask your friends for help). 

Tidy up your space and send all of that clutter packing. 

Are you thinking about selling your home? Use iBuyer’s free home value estimator to see how high your cash offer could be! Create an account and get no-obligation cash offers.

The post How To Declutter Your Home: The Ultimate Checklist appeared first on iBuyer Blog.

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Traditional home-selling can be a complicated process. To make the process run more smoothly, many sellers choose to hire a real estate agent who can provide guidance and industry expertise to ensure the home sells quickly and at a fair price. 

While real estate agents may provide you with plenty of valuable information, they may be less transparent about how they’ll be paid at the end of the process. Typically, real estate agents work on commission, meaning they’ll receive a percentage of the property’s selling price upon closing. 

This begs the question: who pays real estate commissions? And how much do these fees usually cost? The answers may vary from agent to agent and in some cases may be negotiable. 

Read on to learn more about real estate commissions, and find out how much—if any—of their fees you may be responsible for as a seller. 

Real Estate Commissions: How Do They Work?

In most cases, real estate agents don’t charge by the hour for their services. Rather, they’ll take a portion of the home’s selling price after the deal is closed. As the seller, this potentially means their commission may be coming out of your pocket. 

The exact percentage of the selling price an agent earns for their work will vary depending on the stipulations of their contract. If both you and the buyer are represented by agents, the fee will often be split evenly between the two of them. However, one may receive a higher commission than the other if stated in the contract.

Agents vs. Brokers

Real estate commissions are complicated by the fact that they do not go directly to the agents. Instead, the fee must first go through the listing and selling brokers. 

Because real estate agents work under the direction of a broker, the brokers will take a portion of the commission for themselves. Part of this cut is responsible for covering any costs the agent may have incurred, including advertising and renting signs, and sometimes even office spaces. 

After any costs have been recouped, the broker and the agent will split the remainder of the commission. The split may be an even 50/50, though it can be any previously agreed-upon division. 

For example, a contract may stipulate that the real estate commission be set at 5% of the selling price. If an even split between agents and brokers is agreed upon, the awarded commission may look something like this:

• Seller’s agent: 1.25%
• Seller’s broker: 1.25%
• Buyer’s agent: 1.25%
• Buyer’s broker: 1.25%

If the home sells for $400,000, the broker and agent on both sides will each receive a $5,000 commission. 

Who Pays the Real Estate Commission?

When it comes to who is responsible for paying the real estate commission, the answer can be somewhat complicated. 

Traditionally, the seller is officially responsible for paying the fee. In fact, 77% of sellers reported paying the commission in 2020, according to the National Association of Realtors. However, in most cases, the real estate fees are incorporated into the price of the home. This means that it’s the buyer who ultimately pays the fee, just not directly. 

As a seller, the practice of factoring estimated real estate fees into the listing price is designed to protect you. This way, you aren’t forced to manage an unexpected payment post-closing that ultimately takes away from the money made from the home’s sale. 

The Cost of a Real Estate Commission

While it’s been established that a real estate commission will be a percentage of the home’s final selling price, you’re probably wondering exactly how much these fees will add up to. 

The exact percentage of your agent’s commission will depend on what is stipulated in your contract. However, the national average is about 6% of the home’s final sale price. 

For example, if your home sells for $400,000, a 6% commission will amount to $24,000. While you won’t know the exact cost of your real estate agent until the final price of your home is negotiated, factoring in an estimated amount to your listing price will ensure you’re prepared to cover the commission regardless. 

What Do Real Estate Fees Cover?

With real estate commissions often making for a large sum of money, it’s natural to wonder what you’re really getting out of it. 

This fee is particularly hefty because it covers all of the work your agent has put in since your partnership began. When selling a home, this can include a number of services such as:

• Readying your home for sale and crafting a strategic listing
• Taking attractive photos to entice buyers
• Holding open houses and showings to prospective buyers
• Crafting effective advertisements that garner interest in your home
• Negotiating with buyers and ensuring the offer you accept is fair
• Providing guidance and extensive knowledge of your local real estate industry

Plus, the real estate commission is split between agents and brokers on each side, meaning there are often as many as four separate parties relying on it. Though the fee may seem high, it covers a relatively wide array of services. 

Negotiating Agent Fees

While it may surprise you, real estate commissions are always negotiable, thanks to antitrust laws at both state and federal levels. Because of this, many agents or brokers expect negotiations to take place before selling a home.

However, effectively negotiating a lower agent fee can be a challenge. Be sure to interview multiple agents before making your selection, and familiarize yourself with the state of your local market. If homes in your area are selling quickly at prices far above listings, your home will likely be an easy sell. In these cases, even a 5% commission may be too high.

In some cases, agents may offer to represent both you and the buyer in the same transaction—a process known as “dual agency.” Agreeing to a dual agency sale can lower the cost of your real estate commission, as it eliminates the need to split the fee with an agent and broker on the buyer’s side.  

Avoiding a Real Estate Commission Fee

While most agents require payment in the form of a real estate fee, this isn’t always the case. Your agent may opt for a different payment method that won’t include a percentage of the home’s final sale price. 

Additionally, you can avoid paying an agent entirely by opting for alternative means of selling your home. Read on to find out more about avoiding paying for costly real estate commissions. 

Flat-Fee Agents

Some agents charge a flat fee for their services, rather than accepting a commission. Though these agents are rare (only about 3% of all agents in the country), finding one could allow you to save significantly on real estate fees. 

However, there are some drawbacks to opting for a flat-fee agent. Because they aren’t working on commission, they may have little incentive to sell your home for the highest price possible. Additionally, they’ll likely be working with a smaller budget and provide limited services, both of which can lower the sale price of your home. 

Selling Without an Agent

You can avoid paying for a real estate commission entirely by choosing to sell your home without an agent. This can be done in multiple ways. 

Opting to sell your home For Sale By Owner (FSBO) allows you to be completely responsible for the sale of your home. In fact, FSBO sales make up around 8% of all home sales in the country. However, as an FSBO seller, you’ll likely still be required to cover the buyer’s commission costs. Additionally, a portion of your commission savings will be needed to pay for the services a realtor would otherwise provide. This includes things like creating advertisements and holding open houses. 

You can also sell your home without an agent by opting for a service such as iBuyer that will match your listing with local buyers and investors that are prepared to make an offer quickly. Not only does this eliminate the need for an agent, but it also saves you from time-consuming tasks like creating a listing and paying for home repairs. 

Real Estate Agents: Are They Really Worth It?

After learning more about who really pays for real estate commissions, you may be wondering: is hiring an agent really worth it?

The answer depends on several factors. If your local area is currently experiencing a seller’s market, it may be easy to receive an offer well above your listing price.

In other cases, you may need to sell your home quickly due to an emergency or major life event, or simply because the home needs repairs that aren’t worth investing in. For these situations, opting for a service that can guarantee instant offers will save you money and time. 

Avoid Agent Fees With Help From iBuyer

Sometimes, agents simply aren’t worth the expensive commissions. If you’re looking to sell your home quickly with minimal hassle, iBuyer can help. 

Simply enter your address into the free evaluator to get an estimate on your home, and wait for the offers to come in. With iBuyer, getting a fair offer for your home has never been easier or faster. Enter your address and take the first step toward selling your home today.

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The average single-family home in the United States is worth $374,900 right now.

The property market has steadily been making gains over the last few decades. This has resulted in the average home increasing in value by around 416% since 1980. This further emphasizes what a great investment property is.

If you’re buying or selling property, chances are you’re going to need to get the property appraised. However, you may be wondering, “How long does an appraisal take to get back?” These inspections may be conducted in a day but can take a few days or weeks to get back to you.

Have you ever asked yourself, “How long do appraisals take?” You’ve found the right blog. Read on for everything you need to know about appraisals, how long they take, and how to get the most out of one.

What Is an Appraisal?

An appraisal is a specific process done to determine the accurate market value of your home. These processes are generally conducted by a real estate professional that comes to your home for a physical inspection. These professionals will walk throughout your home and take notes of any defects and issues that may be present.

They may also decide to test appliances, plumbing, and your electrical supply to make sure everything is in order. These factors are all noted and taken into consideration when finalizing the value of your home.

The most important variable to consider is how the rest of the market is priced. This means that the same home can be valued differently depending on what area the home is in.

This is why a one-bedroom apartment in New Jersey is always more affordable than the same apartment in New York City. Appraisers have a good understanding of the market and are able to accurately value your home in it. 

Why Are Appraisals Important?

When putting your home on the market, the most important piece of information is the price. While many people are looking for specific homes in specific places, their budgets are often the most important consideration.

This means that accurately pricing your home can help you find the right buyer while also getting the most for your home. Although everyone wants to get the highest possible price for their home, pricing your home too high can scare off potential buyers.

When buyers think your home is not worth the amount of money you’re asking for it, they are often reluctant to even place an offer. This means that it will be much harder for you to find a buyer and finalize the sale of your property.

An appraisal will give you an accurate idea of how much your home is worth. This allows you to list your home accurately so that the right buyers can interact with your listing. Although appraisals are an added cost, they are very much worth it.

What Does an Appraisal Look At?

Appraisals look at both the outside and inside of your home. They will start at the curb to evaluate your curb value and façade. Once this is done, the inspector will inspect the interior of the home. This includes the doors, hinges, flooring, lighting, electrical wiring, and fixed appliances.

The inspector will then test the plumbing and inspect the exterior walls. Larger issues are also checked such as drainage and dampness. The roof is usually skipped but some thorough inspections will check the insulation as well.

How Long Does an Appraisal Take?

Appraisals usually start from the outside and work their way inside. In most cases, the inspector will ask you a few questions about the house to get a good understanding of the property. These chats are generally quite short, leading to a total inspection time of around an hour.

This is entirely dependent on the size of your property. A one-bedroom apartment may take 15 minutes to inspect while a five-bedroom home will take a few hours.

How Long Does It Take To Get an Appraisal Back?

The appraisal occurs in two parts. The first part is when an inspector visits your property to look for any defects or issues that may be there. This inspection can last anywhere from 30 minutes to a few hours depending on how big your home is.

The second part of the process is when the inspector will take their notes and do research on the current market value of your home. They consider the location of your home along with the unique features and issues that your home may have.

This research process can last anywhere from a few days to a few weeks depending on what agency you use. This is why it can be beneficial to use smart valuation calculators to provide you with an accurate appraisal in just a few minutes.

These impressive online tools can save you tons of time and are completely free. To find your home’s estimated value, click here.

How Long Does an Appraisal Take on a House?

When it comes to appraisals, different sized properties can take longer than others. Condos and apartment buildings are usually quick, with single-family and multi-family homes taking significantly more time. In most cases, you’ll hear back from the inspector within a few weeks.

How To Boost Your Home’s Appraisal Value

If you’re planning to sell your home, you’re going to want to get the most out of the sale. While there are many ways to increase your property value, here are a few of the easiest ways.

1. Essential Repairs

The first thing inspectors look for are repairs. Even the smallest of repairs reflect badly on your home as they indicate repairs that the new owners have to account for. These costs are generally added together and deducted from the standalone value of the home.

This is why it’s so important to do essential repairs before the appraiser arrives. This includes fixing cracked tiles, replacing broken doors, and even patching up the drywall. While the physical repairs are very obvious, electrical and plumbing issues are just as important.

Before your appraiser comes over, it’s helpful to call your electrician and plumber to make sure everything is in order. Any leaky taps or flickering lights should be sorted out before they arrive. This gives you the best chance of getting an accurate and favorable appraisal of your home.

2. Improve Curb Appeal

Curb appeal is one of the most important factors that contribute to a home’s value. Curb appeal refers to the entrance and exterior of the home as it’s seen from the street. To help improve your home’s value, consider giving your home a fresh coat of paint.

In addition to touching up the façade of the house, keep the front yard as minimal as possible. Clear the driveway and pathways so that it’s all safe and looking great for the inspector.

3. Go Green

Homes that have green solutions are often more valuable than homes without. This is because solar panels and solar lights can drastically decrease your monthly energy bills. New homeowners are aware of this and would pay the extra money to save on maintenance costs in the future.

This justifies investing in your property by installing solar panels or other green energy solutions. These can be considered investments into the property as they futureproof the home as well.

4. Spring Clean Your Home

When the appraiser comes to inspect your home, be sure to clean up before they arrive. Inspectors can be extremely thorough at times, so it’s best to do a deep clean. This can also help you spot small repairs that you can quickly repair before the inspection.

Keeping your home clean helps make the entire space look more formal and professional. This directly increases its perceived value.

5. Modernize Your Interior

When it comes to the interior of your home, it’s best to keep things simple and modern. Investing in modern interior design can help futureproof your home and also reduce your monthly utility bills. While solar panels can help supplement your electricity usage, modern appliances can reduce your energy usage entirely.

Consider replacing your appliances with modern, energy-efficient models as soon as you can. Additionally, consider replacing all your interior lights with LEDs. Despite being more expensive, LEDs require far less energy to light up your home. They also produce less heat, allowing for a more efficient system.

6. Document The Upgrades You Have Made

When the appraiser is looking through your home, don’t be shy to talk to them. Feel free to point out any repairs you have made and even tell them how much they cost you. This can give them a good indication of how well you took care of the property. This can help them understand that the home is in good condition.

When doing upgrades, it’s beneficial to keep a list of them on hand. In some cases, the appraiser may want to take note of them to add to the value of your home.

7. Keep Your Backyard Tidy

The backyard is often forgotten when tidying up your home for the inspection. By the time you remember, it may be too late since the backyard is often a much bigger clean-up. This is why it’s so important to keep your backyard organized and neat throughout the year.

If you’re investing in a property to sell, utilizing the backyard is a great way to increase the value of the property. If you have the space, consider building an accessory dwelling unit. This can be used as a guest house or even as an additional investment property. Due to the income potential of having an ADU on the property, your home’s value is bound to skyrocket.

8. Replace Air Filters

Air quality is incredibly important. Before the inspector arrives, be sure to replace all the air filters in and around your home. This will purify and keep the home full of fresh, clean air. To keep your home safe and clean, you should replace your HVAC filters every few months. These filters are very efficient and can get dirty very quickly.

9. Consider Installing Smart Home Devices

Just like installing green solutions, installing smart home devices can help futureproof your home. Smart home devices such as cameras, speakers, and automatic curtains are some of the most useful to install. These additions can be expensive but will positively increase the value of your home.

10. Keep Things Organized and Decluttered

In addition to keeping your home clean, you should keep things organized and decluttered. When your space is cluttered and full of things, it can quickly feel small and cramped. These feelings are generally not very pleasant, leading to lower home appraisal values.

The best way to keep things organized is to allocate a space for every item you have. This way, you’ll know exactly when something is out of place.

Get Your Home Appraised Today!

If you’re thinking about selling your home, you’ll need your home appraised. Simply put, this is the professional valuation of your property’s worth in the market today. If you’re wondering, “How long does an appraisal take?” The answer is usually within a few weeks.

If you have any questions or want to learn more about how to sell your home fast, feel free to look through some of our other helpful resources. To help you get a good idea of how much your home is worth, you can use our free home value estimator here.

The post How Long Does An Appraisal Take? appeared first on iBuyer Blog.

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Did you know that 23% of home sales in mid-2021 were all cash sales?

Sellers’ eyes tend to light up when they get a cash offer on a property. That’s because they don’t have to worry about the buyer’s financing going through since they don’t have a mortgage lender involved. However, how does a cash bid on a property work? 

What is a cash offer on a house? Well, if you’re unfamiliar with cash offers and how they work in the real estate market, no worries. 

You’ve come to the right place. Read on for our full breakdown of what is an all cash offer and how it all works.

What Is a Cash Offer on a House?

A cash-only offer is what it sounds like. When a buyer receives an all-cash offer, the hassle of negotiating with a bank or loan is removed from the equation.

Additionally, there are many purchasers who can afford it. All-cash deals have become the standard in several locations. As an example, in Naples, Florida, in the first half of 2021, more than half of all purchases were all-cash.

All-cash offers aren’t always the best option for everyone who makes one. It’s very uncommon for investors to purchase a house or condo with the intention of renting it out or renting it out for a profit.

How Common Are Home Cash Sales?

You would imagine that not many individuals have the money to buy a house outright with no money down. As a result, all-cash sales are becoming more common.

Almost one-third of house purchases in the first six months of 2021 were cash transactions. For several purchasers in 2021, monetary offers helped them win the bidding war. Sellers are more willing to take cash offers since the closing procedure is expedited.

If you’re thinking about buying or selling a house with cash, bear in mind that closing expenses aren’t always waived in a cash transaction. A cash sale has lower expenses than a regular sale, but they must still be paid for.

Cash Offer in Real Estate vs. Traditional Mortgage

The one glaring difference is appraisal isn’t a requirement. Yet, it’s still a good idea to have one nonetheless.

Mortgage lenders demand a house evaluation to ensure that the property is worth at least the amount of money they’re lending. In the event of a foreclosure, this lowers their financial exposure.

In the case of a cash offer, there is no lender, hence there is no need for an appraisal. Cash purchasers, on the other hand, may choose to receive an assessment anyhow. You don’t want to wind up with an item that’s worth less than you paid for it, just like a lender.

Quicker Transaction With Lower Risk to the Seller

One of the most time-consuming parts of the home-buying process is the underwriting of the mortgage.

For a 30-to-60-day process, Since pre-approval, there is always the possibility that the buyer’s finances have changed and the lender may reject them the loan. Vendors benefit from saving time and avoiding potential risks by skipping the mortgage underwriting procedure.

A Stronger Monetary Offer

Although the buyer with a mortgage offers more, the seller may opt to accept a cash offer instead.

Simple: they’ll be paid sooner and the sale is less likely to go through without the mortgage underwriting and appraisal process, so it’s a win-win situation.

Need Proof of Funds from Cash Buyers

A financial institution is still needed by cash purchasers, even if it isn’t as hard as being pre-approved for a loan.

A bank statement or verified financial statement is required for all cash purchasers. If the buyer has the money, the seller may rest comfortably.

Lower Overarching Costs and Expenses

When purchasing a property with cash, the prices might be much cheaper.

In a standard transaction, you have to pay a number of bank-related expenses, such as credit check charges and origination and processing fees, in order to close the deal. With no mortgage, cash purchasers save tens of thousands of dollars in interest over the long term.

Freedom to Make an Offer

Particular forms of mortgages, such as FHA or USDA loans, limit purchasers to specified types of properties in certain localities or in a certain condition.

As far as buying cash homes, there are no limits to specific properties or locations.

Closing Procedure

A cash offer has a significantly simpler closing procedure. A cashier’s check (or wire transfer) will be exchanged for the keys and the title and deed will be signed by the buyer.

The paperwork is much simplified when there is no funding involved. Due to the absence of lending fees, your closing expenses will be cheaper as well.

Escrow and Title

Title and escrow companies will be necessary for the purchase of any property.

But, you may have greater freedom to choose these organizations without a lender involved. Comparing prices is easier when you shop around.

The Similarities Between Cash Offers and Regular Mortgage

The Necessity of an Inspection

Even if you’re a cash buyer, you should still have a home inspection done before you seal the deal.

Having a pre-purchase inspection is a good way to ensure that you don’t end up with any surprises when you move into your new property.

Same Expenses for Cash Buyers

When purchasing a house, certain expenses are the same whether you have a mortgage or pay cash.

A deposit of earnest money, transfer taxes, escrow fees, as well as additional closing charges are required. Insurance, HOA fees, and taxes are all important considerations as well. If you purchase a property with cash, be sure you can handle the continuing expenses of owning a home on your own, since they may be included in your mortgage payment.

The Buyer’s Perspective: Making an All Cash Offer

For both the seller and buyer, cash offers have a number of advantages depending on the nature of the market.

To ensure that the seller accepts the buyer’s cash offer above other bids, the buyer must follow the proper method. Here’s how it should be done.

Put Your Money Into a Single Account

There are a variety of ways for a buyer to get the money they need to purchase a property. It’s easier to keep track of the money you’ll need for closing if you put it all in one place. One bank statement instead of many papers as evidence of money will be easier to submit to the seller.

In order to utilize the funds from a sale of securities or real estate, the buyer should liquidate the assets before signing a contract. Before meeting with a seller’s agent to draft an offer to purchase the home, the buyer should have a sufficient amount of cash on hand.

Prepare a Budget

The buyer should also create a budget for additional home-buying costs in addition to the cash needed to purchase the property.

Property taxes, home inspection fees, and homeowner’s association dues are all possible costs to keep in mind while budgeting for a new house. State by state, the overall budget for all costs varies. Before signing a purchase agreement, the buyer should verify all of the associated expenses.

Create Your Cash Offer

It is the responsibility of the buyer or his/her agent to complete the state-specific paperwork. Adding a little deposit to the offer can help the buyer seem more trustworthy. For further security, they should also provide a copy of the buyer’s most recent bank statement.

Presenting a cash offer eliminates the need to include a financing contingency, a standard requirement in bank-financed real estate purchases.

The buyer’s offer may be lower than those of other financing-guaranteed bids to the seller, depending on the market. For a rapid sale, the seller could be ready to accept a lesser buying price.

Ensure That Your Deal Is Attractive

It is necessary for the buyer to sweeten the bargain if they are competing with other cash bids for the seller’s attention. Instead of waiting 30 to 40 days or more for an underwriting procedure, the buyer might provide a closer closing date of roughly 10 days with a cash offer.

To remove the home inspection contingency from a newly purchased or recently remodeled property, a buyer might volunteer to do a home inspection for information reasons only. Another technique to entice a customer is to give a price that is higher than any other offer currently on the market.

All-Cash Real Estate Considerations: The Seller’s Edition 

A few cash offers are likely to come your way if you’re selling a home in an affluent market or in an area that’s popular with investors.

Buyers who are willing to pay in cash are often one of the following groups of people.

• Investors looking to fix and flip properties or buy them and hold them as rentals;
• Previous homeowners using their sale proceeds to purchase a new property;
• Retirees tapping their savings to avoid mortgage financing costs;
• Companies that buy your home directly to sell online;
• Wealthy buyers who can afford to put down large amounts of cash

It doesn’t matter who makes the cash offer; you should thoroughly assess the advantages and disadvantages before taking it. Even if being cash-only has its benefits, it isn’t a strategy for everyone.

The Benefits of Cash Offers for Sellers

There are several reasons why cash offers are beneficial to sellers.

Compared to standard sales, when the buyer must take out a mortgage, sellers may gain from a cash sale in two ways.

Transaction Speed

With the help of iBuyer.com platform, you can sell your home in a matter of weeks, not months.

A standard sale may take anywhere from 49 to 56 days to complete, but cash transactions involving direct purchasers, flippers, or iBuyers can reduce that time in half. You can even sell your home as-is if you’d prefer.

Less Risk

If a buyer is making an all-cash offer, they may be ready to forego the mortgage lender’s need for an appraisal.

An all-cash offer for your house is enticing. Because what’s better than a fast sell at a good price? When it comes to the cost of purchasing a home, cash purchasers often spend an average of 12 percent less than their financed counterparts.

As with financed bids, cash offers are paying just as much. You’d prefer to accept a cash offer than a loan since there’s less paperwork and uncertainty involved.

You may greatly boost your chances of selling for top dollar by working with a top real estate agent that is up to date on market trends and is an expert in their region. As a result, 87% of recent homeowners enlisted the help of an agent or broker to expedite and smooth up the process.

What Does All Cash Offer Mean: Exploring the Process

For both buyers and sellers, cash offers may have a significant impact.

If you’re selling a property, weigh the benefits and drawbacks of accepting a cash offer, as well as the source of the offer. We hope that our guide on what is a cash offer on a house has given you a solid foundation of the entire process.

And, if you’re selling your home online, you’ll want to get a free home value estimate by submitting your home address.

The post What Is a Cash Offer On a House? The Complete Guide appeared first on iBuyer Blog.

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