At Julie and Daniel’s appearance yesterday on Twin Cities Live they were able to answer a few of the most common questions sent in by Facebook viewers that buyers and sellers have. Make sure to review these questions and their answers before starting your next real estate venture.
Question 1: Melissa asked on our Facebook page: Who’s responsibility is it to make sure a newly remodeled home was done by license contractors and was permitted work? I purchased a flipped house only to find nothing was up to code and was not done by a licensed contractor.
Julie and Daniel say you can always call the city and see if permits were pulled for the work done. Sellers are supposed to disclose if permits were not pulled for work but usually when you are buying a home from an investor they are selling it as is and are not required to disclose anything. The best thing to do is have a home inspection done. A good home inspector should be able to identify code violations and poor workmanship.
When getting a home inspection make sure you are getting the proper inspections. There are multiple inspections you should get depending on the home:
– General home inspection
– Radon test
– Chimney inspection
– Sewer line inspection
– Septic/well inspection
Question 2: I am ready to purchase a home, what is my first step?
Get pre-approved by a lender. This is very important, because you can’t put an offer in on a house without a lender pre-approval letter or proof of funds for a cash purchase. Also, pick the right realtor to work with to represent your interests and get a home search set up through that realtor on the MLS site.
Question 3: Can I store all of our clutter and stuff in our closets, storage area and garage when I list my home?
The Desrochers say an emphatic “No!!!” You want your closets/storage areas and garage to be organized and clutter free. If buyers look in these areas and see a bunch of stuff they are going to be worried that there is not enough storage in the home. They work with a moving company that will store your belongings for you until you move out of your home, they pick it up for you and pack it in to a vault and then drop it of at your new home when you move.
Question 4: Should I be present when buyers view my home?
Again, they say “No!!!”It can be very awkward for buyers if the seller is home during a showing. Buyers want to talk freely about the home when walking through it and will not do this if the seller is home. Buyers need to be able to open cabinets and closets and feel weird about doing so if the seller is there.
They have shown other listings to buyers of theirs where the seller is home and it is very awkward and the buyers spends much less time in the house
Question 5: Heather asked on our Facebook page: “I can qualify for a home loan and I have quite a bit of equity in the home I plan to sell. But I don’t have a lot of cash available for expenses associated with buying a home. Will I need cash to qualify for a loan to pay for a house and the expenses related to the purchase of the new house? Like Realtors fees, closing costs, 20% down, etc. Or can that all be paid out of equity from the sale of my current home?”
The Desrochers say you can use the equity from the home you are selling to pay for the fees associated with your new purchase. You will want to close on the home your selling first and then the house you are buying, and that can be coordinated for the same day.
Watch the entire Twin Cities Live segment below: