Time for Balance - Again!
Home inspections are a must, and I see that buyers and some agents have shifted their views of them since the economy took a turn down. I tell my buyer clients that the inspection is not intended to provide a laundry list of items that the seller is required to fix. It is done to educate the buyer and point out any issues that the buyer may not know otherwise. Some issues are minor, while some are major. One cracked tile in the bathroom does not mean the whole floor has to be replaced ... unless ... it is found that water has consistently seeped through and ruined the subflooring. Then we would request a replacement or credit. If an inspection issue is health, safety, or structural related, I would ask the seller to repair before closing. After all, if the seller refuses to repair it, it must now be disclosed in the property disclosure. That will certainly deter future buyers. Other agents are encouraging their clients to put in an offer with a home inspection contingency and then their friend can be the inspector, giving them a way out if they so choose.
With the buying frenzy buyers just wanted to get their offer accepted and willingly took on more problems with the purchase. These days I am seeing them get so picky that it is much harder to get a sale to closing.
I tell my buyer clients that the inspection is not intended to provide a laundry list of items that the seller is required to fix. It is done to educate the buyer and point out any issues that the buyer may not know otherwise. With my construction background, we look very closely at homes during showings and I will point out any issues I see that could be of concern. It is not a substitute for a home inspection, but gives them good information to consider before proceeding to an offer. I am representing the buyers and working in their best interest.
I think that part of the issue with new buyer expectations in this market is the shift from conventional loans to FHA and USDA loans. First time buyers are coming in to the market with no money down and no wiggle room in terms of funds for things like downpayments and closing fees. They need a “perfect home” so that they are protected from disaster in the first year. What will happen to them in the ensuing years?
I am seeing that with clients right now who do not even have the funds for an earnest money check but insist they are ready to buy a home. Before even showing them the first home I asked what they would do if the heater went out. Do they have the money for a repair? Do they know how much a repair may be? They have no clue and yet they are ready to jump in and want a perfect home at under $80,000, through the USDA program which will finance 100% including closing fees.
Education and first time homebuyers' classes need to be more widespread, if this is at all typical.
Helping make real estate dreams come true
Have you received a Notice of Default on your property? What are your plans? Do you plan to walk away or do you want to try a Short Sale which has much less damage to your credit and helps you save face? You need a plan of action and if you want to buy some time, stay in the home until it sells and save up some money - then contact:
Kathleen Lordbock REALTOR/Staging and Short Sale Specialist
Keller Williams Realty Brainerd Lakes
Don't just walk away - there is hope, there is help!
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