Regardless if you are a new homeowner or someone who wants to purchase an additional property, there is no denying that great feeling you get when you finalize closing on your home. You have already started planning out how you want each room to look, and you are starting to plan Christmas and New Year’s events. 

Just as you finally get everything moved in and settle down, you notice that the freshly painted ceiling started to leak.

Confused, you reach out to your home inspector to see if this was something noted in the report just to find out that you bought a house with problems not disclosed. Flustered, you have someone come in to inspect the leak to find out that there are thousands of dollars in structural damages that you have to pay for out of your own pocket.

If this sounds anything like you are going through and need help on what to do next, you came to the right place. This brief article will go over what to do if you bought a house with undisclosed damages and who you can reach out to for help!

Problems With Your House After Purchase

There is nothing worse than buying a house that has defects you were unaware of. Fortunately, there may be warranties on the house that can help you in a situation like this.

When your purchase your new house, some sellers offer you a third-party warranty. This warranty may help cover any undisclosed defects that pop up, and they usually cover the first year of you living in the property. 

Before you purchase your home, it is best to ask if there is a warranty and to ask what is and is not covered. New homes typically come with 10-year warranties covering workmanship, home systems, structural components, and materials. Again, it is crucial to make sure you are aware of what the warranty includes. 

Even if there is a warranty that covers any undisclosed home issues, there may be some limitations. For example, the warranty may cover a repair, but you may have to pay a deductible. The guarantee may also have excluded repairs listed on the policy. 

What Are Material Defects?

As mentioned earlier, you may uncover that there is a problem with the materials in your home. According to the International Association of Certified Home Inspectors, this defect encompasses anything that may pose a risk to those who live in the house. It also includes any materials that may have an impact on the home’s value. 

Can You Sue for Non-disclosure?

At this point, you may be wondering if you can sue the previous homeowner for non-disclosure, and the answer is a bit complicated. Yes, you have the right to sue the previous homeowner or realtor for undisclosed damages, but that may not be the best option. If you decide to move forward with a lawsuit, there are a few things that must be true. 

The undisclosed defect must have previously been present before you purchased the home. The damage must also not be apparent as a significant crack on the wall that was easily noticeable when you walked through the house. When going through a lawsuit, it is essential to remember that you must prove that the defect was purposely hidden or undisclosed. 

Lawsuits can cost a lot of money, and they should be a last resort. The last thing you want to deal with is a lawsuit on top of trying to mediate your damages. 

Burden of Proof

As mentioned earlier, you will need to show proof that the previous homeowner holds responsibility for these defects. For example, if you notice that there is a newly painted area that is now suddenly sporting a water stain, you will want to document that.

This proof can show that the homeowner tried to cover up the stain during the homebuying process. Another example would be if the previous homeowner painted over cracks in your basement to make it look more appealing. Once you have this burden of proof, you may be able to move forward with speaking with an attorney about a possible lawsuit. 

What Can a Lawyer Do?

If you decide to pursue a lawsuit against the involved parties, you will need to seek a lawyer specializing in real estate law. Your attorney may reach out to the responsible parties by sending out a demand letter.

The demand letter will detail the defects and how much you are looking to receive compensation for. Your attorney may try to settle this issue outside of court, but it may be a while before you receive any payment. You may want to consider other alternatives, such as selling your home to an iBuyer. 

Dealing With Home Defects After Purchase

Once you have located the defect, you may want to reach out to the seller or the agent who sold you the house. Each state has its own rules and regulations for disclosure laws.

The seller must disclose certain defects present in the property before the close of the sale. Although there are laws present that require homeowners to disclose any issues, sellers do not have an obligation to scout out any problems. 

Reach Out to the Inspector

It is imperative to review your home inspection report before you close when you are buying a home. If the inspector missed any problems that an expert should notice, they might be liable for the defects. Make sure that you double-check the report and reach out to the inspector if you have any questions. 

Contact the Listing Agent

A few states hold the listing agent responsible for undisclosed damages if you prove they bore responsibility. For example, there may be communication between the homeowner and the agent about hiding damages.

The listing agent does not need to crawl into the attic to inspect insulation; that is what a home inspector is for. The listing agent needs to disclose any information about the home’s condition that they are aware of. If you can prove that the agent did withhold information, they may have their license revoked. 

Common Undisclosed Defects

The most common defects that you may encounter are lead-based paint, asbestos, radon leaks, and roofing problems. There may be other natural hazards present. 

Other examples of natural hazards:

• Water damage
• Foundation issues
• Electrical issues
• Plumbing issues
• Bad sewer lines
• Improper ventilation
• Rotten wood
• Termites
• Heater issues

You may also encounter unrepaired or undisclosed damages from natural disasters. The previous homeowner may have claimed damages from a natural disaster, but they may have not correctly repaired it.

Most inspectors will uncover these damages during the inspection. If they do not, you must review your contract to see what you can remedy. You will also want to keep in mind that any home maintenance repairs may not qualify as a home defect. 

I Bought a House With Problems Not Disclosed

If you bought a house with problems not disclosed, there are a few options available to you. You may want to partner with an attorney to file a lawsuit against the responsible party, but that can take time. A lawsuit also costs money, and there is no guarantee that you will win the lawsuit even with your evidence. 

As mentioned earlier, there is the option to sell your home to an iBuyer. Many customers prefer to use iBuyers because of the fast and accurate options that they offer. 

What Is an iBuyer?

An iBuyer, also known as an internet buyer, is a company that uses cutting-edge technology to provide you with the best cash offer for your home. The use an algorithm that uses the information you input and uses big data from houses sold in your neighborhood to determine the value of your home. 

Selling to an iBuyer

If you are ready to sell your home to an iBuyer, you must first locate a reputable iBuyer. It is essential to work with a company that works with your home’s market area.

Once you find your company, they will ask for your contact information and information on your home. You will want to include as much information as possible so that the iBuyer can create the best evaluation of your home’s property value. Make sure that you include the condition of your home and any damages that you discovered. 

Review Your All-Cash Offer

Once the iBuyer receives the information about your property, they will generate an offer for you within about 24 to 48 business hours. They will send you the offer to your email, and you will have around five days to either accept or deny the offer. The offer they send you includes any closing costs and fees in addition to the net proceeds you will receive. 

Accept the Offer

If you find the offer to be of your liking, you can move forward with the process. Once you notify the iBuyer that you accept the offer, they will send you information about a home inspection.

This inspection is to make sure that what you put on your application matches what the inspector sees. When you submit your application, you must be open and honest about any defects that you notice.

If there are repairs that the iBuyer needs to complete, they will let you know. You will not need to pay for these repairs out of your own pocket.

Instead, the iBuyer will deduct the repair costs from your estimated proceeds. There is no need to worry about the repairs ruining your closing timeline. The iBuyer will take care of those repairs after you move out of the home. 

Choose Your Closing Day

Once the iBuyer completes their inspection and goes over any needed repairs, you can select your closing day. Most companies allow you to pick between two weeks and two months after finalizing the offer information.

After you close on your house, you will receive payment from the iBuyer. It takes a few days for you to receive compensation. You can then focus on buying a home suitable for you and your family!

Why Choose an iBuyer?

Most people prefer to use an iBuyer because of how quickly the home selling process is. The traditional home selling process can take weeks, if not months, to complete. You may also have to pay for those home defect repairs out of pocket before the next home buyer even considers putting in an offer.

If you decide to sell traditionally, you will have to disclose those damages, and you may have to take care of those damages. With an iBuyer, you can move out in a matter of a couple of weeks. Your move-out day depends on when you pick your closing day. 

No Realtors Involved

When you choose to use an iBuyer, there is no need for a middle man, or in this case, a real estate agent. You deal directly with the iBuyer’s team. There is no need to find the right agent to help sell your defective home. You also won’t have to pay any realtor commission fees. 

Staging and Showings

Once you close on your home, the iBuyer takes complete responsibility of your home. This means that they will take care of the staging and the showings of the property.

The iBuyer handles all of the marketing needed to sell the home. You walk away with your proceeds and peace of mind knowing they will take care of the rest. No more taking the time out of your day to show the home to potential buyers! 

Solve Your Home Issues Today

If you bought a house with problems not disclosed, you might feel like you have no other choice but to try to repair your home or sue someone, but that is not true. A reputable iBuyer will provide you with a review of your available options.

The post I Bought a House With Problems Not Disclosed – What Do I Do Now? appeared first on iBuyer Blog.

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Imagine you find your dream house to buy, but you don’t know how to make it yours. Before you send an offer letter, you should understand all of the steps to closing on a house.

And if you’re the seller, you also need to understand the process. That way, you can make sure the deal won’t fall through and that you can get the money you want.

No matter your situation, read on to learn how to close on a home.

Sign the Purchase Offer

One of the first steps to closing on a house is to accept an offer from a buyer. You’ll need to wait for offers to come in, and you can review them over time.

Sometimes, real estate agents will write the letter for the buyer, but others will write it themselves. Either way, the offer letter should include the home’s address, the buyers’ names, and how much money they’re offering.

It can also include information about contingencies, such as a good inspection. The letter might also include when the buyer wants to close on the home and when they want a response to their offer.

At that point, you’ll need to sign the offer before you move forward.

Hire a Closing Agent

Next, you should hire a closing agent or settlement agent to help you through the closing process. The agent will help the buyer and seller communicate and make the transaction of selling a house.

Closing agents usually work for the buyer, so make sure to contact the buyer to get the agent’s information. That way, you’ll be able to transfer ownership of the house smoothly and easily.

If you’re buying a home, be sure to look for an agent with experience with closing. Ask the agent if they’ve helped others buy properties similar to the one you’re buying to learn how well they can help you.

Open an Escrow Account

Next, the buyer will need to open an escrow account to hold the money throughout the buying process. The buyer should do this within a few days of the seller accepting the offer.

That way, the buyer will have a place to deposit the earnest money. Earnest money will help prove to the seller that the buyer is serious about purchasing.

If you’re selling the home, you can contact the buyer to make sure they open the account. When the money is in escrow, a third party will manage the finances to keep them safe.

Once you finish closing, the seller will be able to obtain the money.

Go Through an Inspection

Another one of the most important steps to closing on a house is to perform an inspection. When buying a home, it will be your responsibility to hire an inspector.

If you’re the seller, you should be open to an inspection to give your buyer peace of mind regarding the sale. An inspector can discover faulty wiring, foundation problems, and other issues.

The entire inspection can take a few hours because it should be as complete as possible. It can then take a few days for the inspector to write up a report on their findings.

Buyers will be responsible for hiring and paying the inspector, so you don’t need to pay anything as the seller.

Renegotiate the Offer

If the inspector finds any major problems, you may want to renegotiate the offer. The buyer might want to lower their offer if there are significant issues that need repairs.

As the seller, you have to consider how low you’ll be willing to negotiate. Then, you can sell your house the way it is now. Otherwise, you may lose an offer, and you may need to pay to repair things before you can sell the house.

Of course, you can also inspect your house and make any repairs before you sell it. That way, you may not need to worry about renegotiating due to an inspection.

Complete a Mortgage Application

If you’re buying a home, you will need to apply for a mortgage. You will need to include details about you and your financial situation to prove that you can afford the loan.

Depending on your credit score, you may receive a good interest rate. Be sure to review the terms of the loan to make sure you’re comfortable paying it.

When you’re the seller, you may want to verify that the buyer has applied for a mortgage. Then, you can make sure the buyer will be able to buy your house.

Review the Lender Appraisal

Another essential part of the buying process is a lender appraisal. Some mortgage lenders will need to go through the home and make sure the value isn’t less than the amount the buyer is borrowing.

You may want to get your own appraisal to determine how much you can expect to make from the sale. If the house’s value is lower than the current offer, the buyer may choose to renegotiate.

Some buyers may be willing to pay the difference between the value and the sale price in cash to get the house. However, others may decide not to go through with the offer.

Process Your Closing Documents

Next up in the steps to closing on a house is to process all of the closing documents. If you’re selling your house, you will need to fill out a seller’s disclosure to inform the buyer of all of the problems you know of.

If you’re purchasing a home, you’ll need to review that disclosure as well as a closing disclosure. The closing disclosure covers the amount and term of the home loan as well as the interest rate.

Homebuyers should also review the title documents to ensure the seller is legally able to sell the home. You may also receive a copy of your mortgage application so that you can make changes to it or confirm that it’s still accurate.

Cancel or Move Your Homeowner’s Insurance

If you’re selling a house, you’ll want to cancel your homeowner’s insurance policy or move it to your new address. Purchasing homeowner’s insurance is crucial for buyers at this stage.

Some lenders may require you to have insurance before they will approve your loan. Make sure you choose a policy you can afford in addition to your mortgage payment and other bills.

If you’re selling and buying a home, you can transfer the insurance. Then, you’ll be able to keep the same coverage at your new address.

And Title Insurance

When buying a home, you may want to obtain title insurance. Your lender may not require it, but it can protect you in the future if someone else tries to file a claim on the property.

Fortunately, you only need to pay for title insurance once instead of each month. That makes it even easier to afford the coverage in case something happens in the future.

Be sure to shop around for a good title insurance company. Choose a policy with enough coverage to offer you peace of mind as you purchase and own the home but that isn’t too expensive.

Clear the Title

Sellers will need to clear title on their current property before they can sell it. This is where you make sure you don’t have any outstanding loans or claims on the house.

You can do a title search to look for any loans or claims. Issues that may keep you from selling the house include:

• Gambling debts
• Renovation projects without the correct permits
• Unpaid child support

Be sure to also check for issues with paperwork in previous sales of the home. You should also ensure you don’t owe any HOA fees or fees to contractors that you’ve hired.

If you find you haven’t paid certain things, you’ll need to take care of them before closing. Perform a title search to make finding issues easy so that you can resolve them before closing day.

Organize Your Finances

Both buyers and sellers should organize finances before closing on a home. Buyers need to prepare for a few different charges, including closing costs, lender credits, and cash to close.

Closing costs are what you’ll pay the lender, and they cover things like appraisals and your application fee. If you’re willing to pay a higher interest rate, your lender may offer lender credits to pay for some costs.

You’ll also need to obtain a cashier’s check for the amount of your downpayment. Cashier’s checks are more trustworthy than personal checks, so make sure to get the check in advance of closing day.

If you’re the seller, you may need to pay some of the buyer’s closing costs through seller concessions. You can negotiate this early in the closing process, so you’ll know if you need to pay anything or not.

Perform a Final Walkthrough

One of the last steps to closing on a house before closing day is to do a final walkthrough. You’ll do this a day or two before you close on the home, and it’s your last chance to make sure the house is still in good condition.

The walkthrough also gives you a chance to review any issues that came up in an earlier inspection. If the house has developed more issues since the prior inspection, you can take note of those problems.

During the walkthrough, check everything, including the light switches, faucets, doors, garage doors, and toilets. Be as thorough as you can to make sure you don’t miss any issues.

If you discover a problem, you can get the money to fix it. Your agent can take that money from the money the seller would earn since the house isn’t in the condition they promised.

Start Packing

Whether you’re selling or buying a home, you should start packing to move. While this isn’t directly part of the closing process, you should prepare for the move before closing.

That way, you’ll have less work to do after you officially transfer ownership of the property. It’s also especially important to start packing early if you have a lot of items to pack.

You may not have time to pack everything in a week before you more. The earlier you start, the more time you’ll have to organize everything and make sure your house is ready for the buyer.

Bring Essential Documents

On closing day, you’ll need to bring some essentials to make everything go smoothly. As a seller, you should bring your keys, the seller’s disclosure, seller concessions, and a form of identification.

If you’re purchasing a home, you’ll want to bring your ID and a cashier’s check for the amount of your downpayment. You should also bring your closing disclosure and other documents from earlier in the buying process.

Be sure to have a good pen on hand to sign all of the paperwork. You’ll need to sign documents like the property deed, closing statement, and the affidavit of title.

Bring anything else you think you might need so that you have it in case. Then, you will be able to proceed with closing on your home.

Transfer the Keys

One of the last steps to closing on a house is for the seller to give the keys to the buyer. After you sign all of the necessary paperwork, you can hand over the keys to confirm the sale.

Of course, as the seller, you’ll want to make sure that you’ve moved all of your belongings out of the house. If you’re the buyer, you may want to bring a small envelope to keep the keys safe after you receive them.

Then, you’ll be able to prepare for moving day, and you’ll know where your keys are.

If the house has a garage door code, you should also reset the code for the buyer. That way, they’ll be able to set a code that will work for them.

Don’t Forget the Steps to Closing on a House

Whether you’re selling or buying, you need to consider the steps to closing on a house. From obtaining an offer to transferring the keys, you need to make sure the sale goes smoothly.

Be sure to go through these steps with care whether you’re buying or selling. Then, you’ll be able to buy the home of your dreams or sell your home to downsize.

Do you want to make selling your house easy? Consider if you live in an iBuyer market to sell your house fast.

The post 16 Steps To Closing On a House appeared first on iBuyer Blog.

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Are you in the market of selling your home? Are you curious to know more about what hurts a home appraisal? Did you know that the average price of your home greatly depends on its location?

For example, the median price for an average home in Ohio is $150,000, whereas a similar home in California may go for $500,000? It is imperative that you educate yourself on the other factors that may help or hurt your home appraisal.

If you are looking for more information on what hurts a home appraisal, you came to the right place! This article will briefly go over important information you need to know about home appraisals and who you can contact for more details.

What Is a Home Appraisal?

A home appraisal is a process where a third-party appraiser comes to review your home. They will then compare your home to other homes in the area to give you the market value of your property.

There are a couple of reasons why you may need your house appraised. One reason could be that you are looking to refinance your home and your lender needs to appraise the home’s value.

Another primary reason your home needs an appraisal is that someone’s mortgage lender requested them to appraise the house before releasing the loan. It is essential to know that if the appraisal is for a home sale, neither the future homebuyer nor the current homeowner cannot be there for the inspection.

Why Is an Appraisal Necessary?

A home lender can only lend up to the appraised value amount to ensure that the homebuyer and the lender only pay what is fair. This inspection also helps to ensure that the home lender won’t encounter a total loss if the new homeowner defaults on their loan.

What Is a Low Appraisal?

A low appraisal could potentially derail your home refinance or home sale. If the appraisal is lower than expected, the home buyer may not be able to borrow the money they need to cover the price of the home. The homebuyer will most likely need to pay the difference out of pocket.

If they cannot pay out of pocket, they have the option to try to renegotiate with the seller. If you are looking to refinance your home, it is essential to know that a low appraisal could mean there is insufficient equity to borrow against the loan.

What Is a High Appraisal?

A high appraisal allows a homebuyer to borrow the money they need to purchase the home. This appraisal also increases the home’s equity, which could also help remove the homeowner’s private mortgage insurance.

Although you have the option to borrow more money with a higher appraisal, it doesn’t mean that you should. There is a risk that you could over-borrow on your loan, which could cause you to have an upside-down mortgage easily.

Who Does the Appraiser Work For?

Most people believe that the appraiser works for the lender, but that is not true. A lender may request an appraisal, but a third-party person always completes these appraisals.

It is crucial to ensure that your appraiser has the necessary licensing and certifications to complete the job. This will ensure that the appraisal process goes smoothly without any bias.

It is important to know that if someone has an approval letter from an FHA lender, USDA lender, or VA lender, the appraisal process is different. These loans are government-backed loans that require a home to meet specific guidelines set by these government agencies.

Who Pays for an Appraisal?

When you have someone interested in buying a home, they usually have to front the bill for the appraisal. The appraisal is typically factored into the closing costs of the loan. The cost of the appraisal depends on the location of the home and the type of property it is.

Home Appraisal Tips

When an appraiser comes to look at a property, they will consider many different factors. For example, an appraiser will determine the home value by looking into the property’s location, condition, renovations, and square footage. They will also look into any recent sales of the homes within the same neighborhood.

Key Factors Appraiser’s Look For

As mentioned earlier, the appraiser will look into the location of the property. The appraiser takes into consideration the quality of the local school district and the employment opportunities nearby.

If your home’s location is near a flood zone or has the potential to be impacted by any other natural disaster, the appraiser will consider that as well. Any nearby entertainment, such as movie theatres or restaurant types, also affects the value of your property.

Size of the Lot

Square footage plays a significant factor in your home’s value. The inspector will look to see if there is any space to expand and if you have a backyard.

Access to Utilities

Your home must have the necessary hookups to public utilities. This includes any water or sewage connections. This is a huge sanitary concern that many inspectors want to make sure is up to date. Having access to public utilities is especially important if you sell a home to someone with an FHA, USDA, or VA loan.

The Age of Your Property

The age of the property you want to sell can significantly affect the appraisal. The older the property, the more likely there will be maintenance issues or other structural problems. If this is the case, the appraiser will include that in their report when they determine your home’s value.

What Hurts a Home Appraisal?

There may be a few things out of your control that may negatively impact your home appraisal. For example, you cannot control the sale prices of other homes in your area. It is crucial to stay on top of the market conditions in your local neighborhood, so you aren’t as surprised if your home value is less than you expected.

Rural and Unique Homes

If you live in a unique or rural home, there is not much you can do to change that fact. The problem with these types of homes is that there are not many other homes to compare your property with. It is difficult to assign a specific value because there are a lot fewer homes in rural areas.

A unique home is a home that may have been custom-made. For example, someone may have used their architect to design the home with special features and add-ins.

A house customized to that degree can be a challenge for most inspectors because there are no other homes like that one. To compensate for this challenge, most appraisers will likely create a range instead of an exact number.

They will look into competitive neighborhoods to try to find a similar value. The challenges imposed by unique and rural homes may cause your home to be undervalued.

Structural Materials

Just like technology advances over the years, so do construction methods. Many builders have found better technology, materials, and techniques to make a home more energy-efficient, stronger, and safer. These new methods help to increase the value of the house.

There are some materials that older homes possess that can pose a health threat to the inhabitants. For example, some older homes have lead paint, asbestos tiles, and outdated insulation. Even if dated materials in the house pass inspection, they may not be as energy-efficient as other types of materials.

Old windows, doors, and roofs can prove to be very pricey to repair or replace. If they need changing, this can drive down the value of the property.

Outdated Appliances and Systems

Updating vital appliances or systems such as electrical or plumbing systems can drive up costs, especially if your systems are outdated. It is also important to note that if the home’s interior still has the original design of when the original owner initially built the house, many homebuyers today may want to change it up before purchasing the property.

If a property contains any outdated features, this can also signal that there are other underlying issues. This also may indicate that the homeowner did not properly take care of the home.

How to Prevent a Low Appraisal

There are many ways that you can try to prevent a low appraisal, such as doing your research on the local market conditions and the prices of homes that sold nearby. You also may want to do a few upgrades to the house to make it more appealing to what home buyers are looking for.

If you decide to do any updates, ensure that you keep proof of these repairs and updates to show the inspector. You also have the option to improve the curb appeal of your home. The home’s first impression can say a lot to an inspector, so it is best to have your home looking as best as possible.

If you notice that doing all of these updates and repairs interferes with your own personal funds, there are other options. You have the opportunity to sell your home to an iBuyer. The iBuyer will handle all of the listed tasks above on your behalf.

What Is an iBuyer?

An iBuyer is a company that uses unique technology to make you an instant offer on your home. They use a collection of data of your market area to create a competitive bid without you needing to update or change anything on your own. Many homeowners who want to sell their homes prefer to use an iBuyer because of the simplicity of their home purchase process.

Why Use an iBuyer?

As mentioned earlier, iBuyers take ownership of the home selling process on your behalf. This process includes any owning, marketing, and reselling of your property. The iBuyer process allows you to control when you want to close and move out of the property.

iBuyer Home Buying Process

The process varies based on who you choose to sell your home to, but the overall goal is the same. It is vital that you ask any questions about this process to your iBuyer to make sure that you understand what is going on.

Step One: Request an Offer

Once you have found an iBuyer that you want to work with, you must request an offer. The process to request an offer is free, and there are no obligations on your end to accept what they quote you.

You will need to provide the iBuyer with the property’s address and insert some of your contact information during this step. If your property meets the criteria, you can expect an all-cash offer on your home within two business days.

Step Two: Review Your Offer

Depending on who you decide to partner with, you will have about five days to consider the offer. The offer letter includes any closing costs or transaction fees associated with the home sale.

It will also state what your net proceeds will be after the entire process closes. There are no hidden fees or costs. You will know everything upfront. If something changes, your iBuyer will let you know as soon as possible.

Step Three: Accept the Offer

Once you accept the offer, you will need to schedule an appraisal. The iBuyer will send a representative to check out the property to make sure all the information matches what you put on the application.

If any necessary repairs are needed, they will reach out to you and make sure that it is okay to come to said repairs. You do not need to pay for these repairs. The repair costs will be deducted from your offer letter. The iBuyer will handle the repairs after you move from the house.

Step Four: Choose Your Closing Date

Once you and the iBuyer agree upon the repairs, you get to select your closing day. You have the option to move out between fourteen to sixty days after you agree on the offer. After you close on the deal, you receive payment within a few days.

Accept Your All-Cash Offer Today!

Now that you know more about what hurts a home appraisal, let’s show you how to get the best appraisal possible. Using an iBuyer who has access to cutting-edge technology to give you the best offer on the market is the most innovative way to go.

The post What Hurts a Home Appraisal? Everything You Need to Know appeared first on iBuyer Blog.

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It’s still a seller’s market, low inventory is still causing elevated prices and bidding wars. What lies ahead? 

A lack of inventory is pervasive across the housing market statewide. “We got our hopes up for inventory, but except for a few months that didn’t happen,” said Florida Realtors® Chief Economist Brad O’Connor, Ph.D., at the 2022 Florida Real Estate Trends summit in Orlando last month. “We started the year with a 1.6-month’s supply of existing single-family homes, but we ended 2021 with a 1-month’s supply; and in many of your local markets, it’s down to a half-a-month’s supply. 

For years, Florida has had more existing condos than single-family homes, but by the end of the year, existing condos and townhomes are down to a 1.3-month’s supply, which is very close to the single-family category.”

Property valuations should climb even higher in 2022, as inventory continues to wane. Here’s a look at some of the state’s top markets.

Tampa Bay is No. 1

Tampa Bay is the hottest real estate market out of the 50 largest metro areas in the nation, according to Zillow. It’s also the No. 1 market in the state. “Homes go here as quickly as they hit the market,” said Rae Anna Conforti, sales associate with RE/MAX Alliance Group, whose farm area includes all of Tampa Bay, St. Petersburg and Clearwater. 

“The lower the price point, the more offers we are getting. But it’s the same across the board—from $350,000 to million-dollar homes. More people want homes than we have inventory. I’ve been in the business for 20 years and I feel like inventory is at the lowest point that it’s ever been. Sellers have complete control right now, which is sad for buyers and extremely frustrating.”

Home values are expected to rise 24.6 percent in 2022, thanks to Tampa’s strong job market, high demand for housing, an ever increasing population of home buyers and steady home value growth.

“We’ve gotten a lot of press recently with our sports teams all doing well, so I think that is creating even more of a desire for people to want to come down here and see what it’s all l about,” Conforti said. “People don’t necessarily have the luxury of picking the location like they used to. Now it’s which house is available. Some neighborhoods have no homes for sale.”

Buyer fatigue is also beginning to take hold. “Buyers are tired of submitting offers and getting rejected,” Conforti said. “Interest rates are going up eventually and that may prompt some sellers who have been holding off to put their home on the market.”

There is fierce competition in new-home construction too. “What I’m being told by builders is they only have so many permits that they can build and there are waiting lists for people to buy,” said Conforti. “Some builders are going back to buyers on their waiting lists and asking for their highest and best offers. They are creating their own bidding wars. I never saw builders do that before; it’s crazy.”

Northeast Florida: A Hidden Gem

Jacksonville, once largely overlooked by people moving to Florida, is now trailing right behind Tampa as the second hottest real estate market in the nation. “Jacksonville is also the No. 2 market in the state,” said Geoffrey Blum, sales associate with Keller Williams Realty Atlantic Partners in Jacksonville Beach. “It’s a great place to live—and still affordable compared to the rest of the state. But it has been behind the eight ball for 50 years because people cruising down Interstate 95 look at the sign that says, ‘Welcome to Florida’ and they’re excited to get to Orlando and the attractions or on to Fort Lauderdale for spring break.”

In December 2021, the median sales price of $350,000 was up 22% from the year before. Inventory dropped 22.7% to 1.1-month’s supply [Source: Northeast Florida Association of REALTORS®]

What’s driving the influx of buyers? “We have a lot of good things going for us,” Blum said. “We have the ocean, a major port, the St. Johns River, an NFL football team, the global headquarters for the PGA Tour in Ponte Vedra Beach, and of course St. Augustine is in our backyard.”  

The area is also home to Naval Air Station Jacksonville, Association of Tennis Professionals, CSX, and business data titan Dun & Bradstreet among others. And, according to Bloomberg and LinkedIn, Jacksonville ranks ahead of Seattle and San Francisco as a preferred destination for tech workers.

Demand for homes is strong and seems likely to stay that way; however, housing inventory is low. “Our supply is so weak that it’s like when Covid first hit and there was a run on toilet paper,” Blum said. “Multiple offers will stay strong and on the best terms cash will win out. The normal flow of real estate has been decimated by people from blue states such as California, Washington, Oregon, Minnesota, New York, New Jersey, Maryland, Delaware and Virginia who are getting out of Dodge because of high property taxes and crime rates. All those people are moving to Texas or Florida, but a majority are moving to Jacksonville. It’s the x variable that went unnoticed and our real estate is being gobbled up by Pac-Man. As a result, prices are going up steadily and we are eventually going to become the pricing of California.”

Central Florida Continues to Break Records

According to the Orlando Regional Realtor Association, December’s median home price was recorded at $340,000—up 23.6% from $275,000 in December 2020—closing the year with the highest median home price ever recorded. Meanwhile, inventory was down to a historic record low of 47%.

Orlando-based real estate attorney Kevin Pribell, broker at Acres, Inc., is seeing multiple full-price offers within days of listing properties for sale. “I’ve recently had three listings that got between $7,500 and $23,000 over the Zillow estimated value on medium-priced residential properties,” he said. Rising interest rates could eventually impact home prices. “The escalation in values will slow down as interest rates go up, but the buying frenzy won’t stop.” 

South Florida Prices Steadily  Rising

Neal Oates, broker-owner of World Renowned Real Estate in Fort Lauderdale, said the market is frustrating some consumers to the point where they’ve decided to hold off while others are having to get “creative” to make a transaction work. “Buyers are asking, ‘If I want a piece of this dream what concessions do I have to make?’ Some are being asked to waive the appraisal contingency or they’re having to put more down even if they have 90% financing. Some sellers are asking for larger escrow deposits simply because they want to see if the buyers are willing to meet their requirements. Others are asking for post-close occupancy for the seller until they find a new place or they’re asking for the addendum that says the contract is contingent upon seller closing on their property in X amount of time. So, buyers in this marketplace can purchase property and go under contract but may not be able to occupy it immediately.” 

Home prices in South Florida are projected to rise by upwards of another 6% this year, Oates said. As of December 2021, the median sale price for a single-family home in South Florida was $475,000.

Another trend is single-family buyers opting for condos and townhouses instead. “Dr. Brad O’Connor mentioned that as well,” Oates said. “Today, we strongly encourage buyers to be flexible unless they have the means to potentially pay more than appraised value. Skilled agents who used to only work in single-family are asking buyers during their initial consultation if they would consider a condo or townhouse. We obviously want to work the way the client or customer wants, but we have to add our professional experience in a market like this.”

The post The Florida Real Estate Outlook for 2022 appeared first on iBuyer Blog.

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Home maintenance is such an important part of homeownership. It’s the best way to ensure that your home is safe and comfortable to live in for as long as possible. And when you’re selling a house, it ensures that you can get the best value for your home possible.

But where do you start when it’s time to rewire your house? How do you know when your house needs rewiring? And how much does it cost to rewire a house?

Old and faulty home wiring is one of the leading causes of electrical fires, so it’s important to update it regularly. Read on to learn how much it costs to get your home rewired.

Signs Your House Needs Rewiring

If your home is over forty years old, then you might want to think about getting it rewired. This will reduce the chances of an electrical fire and improve the energy efficiency of your home. Plus you may find that many of your electronic devices simply work better after you replace the wiring.

There are a few signs to look for if you aren’t sure if it’s time to rewire your home. You should always be looking for any of these issues so you know when and if your home has a wiring issue. 

The first thing you should watch out for is flickering lights or lights that burn out quickly. This could be a sign that the circuits in the room are overloaded. You’ll usually notice this flickering when running a large appliance such as a dryer.

If you notice breakers tripping a lot, then this could also be a sign that your wiring is going bad. The breakers prevent electrical fires from happening. They do this by shutting off the power to different parts of your house if the circuit starts to overload.

Other issues to look for include sparks from the outlet, hot switch plates, and loose outlets. All of these indicate that the wiring isn’t able to handle the amount of electricity your home needs or that the wiring is warping from age.

How Much Does It Cost To Rewire A House?

But even when you start to notice these issues, you still don’t necessarily know how much it will cost you to get your house rewired. And the truth is that many factors decide how much it will cost to rewire your home. Consider these items as you’re looking for quotes for this service.

Size Of The Home

The first thing you need to consider is the size of your house. This affects both material and labor costs. 

First of all, wiring costs money. Manufacturers usually charge per square foot. Usually, the cost is about $2 to $4 per square foot. 

Think about how big your house is. Do you need the whole house rewired or will fixing a few circuits be enough? 

The bigger the project, the more wire your contractors need for it. This adds up when you want to rewire an entire 1,300 square foot home.

The other side of this coin is labor costs. Contractors will take longer to install the wiring in a larger project. It creates more work for those contractors. 

If there’s more work for the contractors to do, then they need to charge more for their services.

This is why a single circuit in the house is cheaper to rewire than the entire house. This requires a lot less wire and a lot less time to complete this project than rewiring a whole house. 

Most people pay an average of around $2,000 for rewiring a house. It depends on how much square footage of your house needs rewiring. 

But even a small home that needs complete rewiring can cost as much as $8,000. A large home can cost as much as $20,000 to rewire.

In other words, if your home is on the larger side of the scale, then you can expect to pay a lot more than someone who lives in a tiny house to rewire your home.

How Much Work Is There?

You might also be thinking of adding some new wiring while you’re getting this home maintenance done. Maybe you want some new light fixtures in your house. You might want some new electrical outlets around your house as well.

Some people might even want to move or even remove outlets completely from their homes. And if you want to move any appliances, then this can also require some extra work.

It’s not a bad idea to get this done while you’re already having work done on your house. But it will affect the price of your project. 

Adding new wires and outlets means you need even more materials to complete the project. It also creates more work for the contractors working on your house. This will once again raise the cost of both materials and labor.

Adding new wiring is also often more complicated than replacing the old wiring in the house. In some cases, you might even need to install a second circuit breaker to ensure that you’re not overloading any of the current circuits. Otherwise, you might end up dealing with power failures regularly because your breakers keep getting tripped.

And most of these issues require someone else to complete some work afterward. If you’re having outlets moved or removed, then holes in your walls need to be patched up. Moving appliances sometimes requires a professional if you aren’t able to move them yourself.

Accessibility

The way that your house is wired is also going to contribute to the total cost of rewiring. There are generally two ways that a contractor can rewire your house. They either can go through an attic or a crawlspace, or they need to open up the walls completely.

If your contractors can access the wiring from an attic or crawlspace, then this saves them a little effort. This means that they have easy access and can rewire your home without too much difficulty at all. That means that they can get done faster, so you won’t need to pay as much for labor.

On the other hand, if they can’t access the wiring from the crawlspace or attic, then they’ll need to open up the walls to get to the wires. This adds more work to the project and means that you’ll need to pay to patch the holes again once they’re done. This often increases the price of your rewiring project significantly. 

And you won’t get much choice in the matter. There isn’t much else that can be done when the contractors can’t access the wires easily. 

Many houses are going to have a combination of these two methods too. In many cases, some parts of the house are much more easily accessed than others. This means that they don’t necessarily have to open all of the walls in the house to complete your project.

However, the more walls that need cutting open, the more the project will cost.

Permits

Inspections and permits are pretty common practices for rewiring jobs in the United States. The requirements for these, however, are going to vary based on where you live. The cost of these inspections and permits is also going to vary based on location and requirements.

These permits and inspections are important because they ensure that the wiring will be safe to use once the project is complete. This protects your home and your family from electrical fires. That’s the main reason you want to keep your wiring updated in the first place. 

Permits provide your local government with the knowledge that your home’s wiring project is being handled safely and legally. It tells the government exactly what work is being done at the house so that if anything goes wrong, the government can easily discover who should be held responsible. The rules and regulations that determine which permits get approved are determined by said local government. 

An inspection before the project is started tells your contractors exactly what work needs to be done. This helps them fill out any paperwork necessary to get a permit approved. Then an inspection after the project’s completion lets the contractors know that the project was completed the way that it should be.

It might be harder in some places to get permits and inspections, however. And contractors and the government workers who handle permits all need to be paid for their work. That means that the more effort this part takes to complete, the more your project will cost.

This part of the job usually costs between $100 to $300.

Increase Your Home Value By Rewiring Your House

So how much does it cost to rewire a house? Again, most people pay around $2,000 for their rewiring jobs, but the cost can go up and down depending on the above conditions.

But this type of home maintenance is extremely valuable when you’re selling a home. And the good news is that iBuyer.com is willing to give you a free no-obligation cash offer on your home right now. 

Get your free estimate and see how much you can get for your home today.

The post How Much Does It Cost to Rewire a House? appeared first on iBuyer Blog.

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