Home Inspections are Essential

Long-time clients and I looked at disclosures last night on a property they're interested in. My first priority was the home inspection. The seller's agent had asked for an as-is offer, pretty common in our area, and the information in the property and home inspections was especially important.
A professional home inspection not only can provide a great education about the home’s systems, but also be a crucial tool in negotiating the fairest price on the home, according to HouseMaster, one of the first and largest home inspection franchisors in North America.
They provide the following tips to ensure that buyers make an educated decision when purchasing a home and get the best price possible:
1. Inspect the Inspector. Look for a home inspector with an excellent reputation and credential and verify that the inspector carries professional liability insurance
2. Look at the report. A poorly prepared report without pictures or clear, concise details addressing all the various systems and accessible elements of the home is less likely to be taken seriously.
3. Inspect ancillary systems. Often, the company will offer a multiple services discount as well as the added convenience of only having to attend one inspection appointment.
One company I often use gives a discount for a combination of detailed property, termite and roof reports.
4. Go along on the inspection. If the inspector discourages you from going along and asking questions, find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. In addition to documenting issues and needed repairs that may exist, a professional home inspector will also show the new buyer how to operate the various systems in the home and provide tips on improving energy efficiency and maintaining the home in general. Being present during the inspection will make the final written report that much more meaningful.
If the inspection has been completed "up front" by the sellers, a good inspection company will welcome contact by the buyers to clarify any questions they might have after reading the report.
A little homework by the buyers can eliminate headaches down the road!

Short Sales...Shorter?

There are new rules on the horizon that require lenders to provide pre-approved terms for short sales. These sales, in which homes sell for less than owners owe, have been driving sellers, buyers and especially Realtors, crazy... as they can drag on for months without resolution.
The new requirements pertain to sellers who have been refused a loan modification.
The minimum amount a bank will take for these houses will be disclosed upfront, so a buyer's bid is more likely to be accepted. That should help to speed up the loan process, at least a little.

Old Blogs, New Blogs

I spent a little time on a rainy Sunday looking over some of the more than 700 posts in this site. I am amazed by the time dedicated to writing daily articles for the first couple of years, and in re-reading them, how timely most of them still are today. The pointers for preparing a home for sale and maintaining it are still valid, and much of what I wrote about the local market is still the same....surprising, since the first input was in the spring of 2007, and so much has happened in the local, state, and national economy since then. My description of our area (Sunnyvale, Cupertino) real estate market as an oasis, nearly untouched by the short sales and foreclosures around us, is still pretty accurate. There have been some exceptions, but our 10-15% loss in value from the top of the market is being slowly regained in the many multiple offers we're seeing.
The most visible local victim of the downturn is the deserted Sunnyvale Downtown Development. I wrote with such hope of seeing a delightful new town center built, and now it sits, an empty shell, waiting for a recovery that we can only hope will come soon.

The New Tax Credit's Not All It's Cracked Up To Be

There's so much talk around about the California State Tax Credit, that I thought it was time to clear up any misconceptions.
Some home buyers feel that if they get into contract on a house this month, they will be automatically eligible for both State and Federal Credits....not so... in fact it may signal an automatic audit.
The limit on funds from the State ($100 million, and when that runs out, it's over) is not the only limitation on the California credit. These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence. Taxpayers must apply the total tax credit in equal amounts over 3 successive tax years (maximum of $3,333 per year) beginning with the tax year in which the home is purchased. The tax credits cannot reduce regular tax below tentative minimum tax (TMT). The tax credits are nonrefundable and unused credits cannot be carried over.
This is not the only complication. Why am I not surprised?
For more detail, go to the Franchise Tax Board site.