Disney
Most market watchdogs are in agreement that the 1st quarter of 2010 will see a sudden influx of homes on the market. This rise in inventory is expected due to the looming expiration of the federal tax credit in April. As sellers prepare their homes for what is still expected to be a tough sale, some experts are warning that you should not believe everything that you are being told by an anxious seller.
Currently there are only 30 states that require sellers to use a “full disclosure” form. This form covers the basics and is intended to protect the potential buyer from future unexpected costly repairs that should have been reported prior to the closing of the home. Some states have amended these disclosure laws to include environmental hazards which include mold and radon gas. In California the list of required disclosures has become so lengthy that small businesses are popping up all over the state that are primarily focused on helping sellers meet state and federal guidelines.
With all of the laws that are in place you would think that there is little to no room at all for misrepresentations to occur. The fact is that there are still some grey areas that lend themselves open to embellishments. Bank owned properties are not required to follow these “full disclosure” laws, and the amount of bank owned properties on the market are on the rise. Arming yourself with information and knowing what seller statements to look out for, can steer you clear of these “little white lies”. Here are some examples of seller’s statements that you should watch out for.
“This house sits on 1.5 acres of land” most sellers will increase the actual size of the plot of land that their property sits on. The buyer generally will not find the exact and true size of the land until it is revealed in the lender’s appraisal. Be clear prior to closing that your approval on the lender’s appraisal is contingent of the sale.
“We don’t have pests” A home inspection generally will only detect visible damages that have occurred as the result of a pest infestation. The seller may or may not know if there was prior damage done to the house, but if there was he may not be forth coming with that information.
“This place never floods” Just because the property is not listed in a “flood zone” does not mean that it is not susceptible to floods during extreme weather occurrences. Be sure that you speak directly to the individual who is going to be doing the home inspection. Request that they reveal in their report any findings of prior water damage that could have been caused by flooding.
Buying a home in this market can be a profitable experience if you are willing to take the time needed to select one that is perfect for you. Never be afraid to request additional information on a potential property. Be sure to visit the home after dark to see if the neighborhood settles down, or if it is a local hangout for unruly teenagers. Ask your potential neighbors if they like the area, and make time to visit the local police station to request a crime report in that district. Buying a home can be one of your greatest accomplishments, or it can be one of your worst nightmares. Take the time to protect yourself.
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All great advice and this is just another reason why people should hire a professional Realtor when purchasing a home.
.-= Matt@New Homes Atlanta´s last blog ..Details on New Tax Credit Extension =-.
Buyers should attempt not to become emotionally attached to a home. Though this is difficult for most buyers, it is extremely important. If you have any reason to believe that a seller is not being transparent or providing full disclosure, you should walk away. There are too many awesome houses on the market to get wrapped up with sellers that are less than forthcoming.
.-= Bruce Dietz´s last blog ..Great Home with Gas Range =-.
You offer great advice for the seasoned and first time home buyer. Your mention of getting a police report for the area is a great piece of advise and one that should be part of any home buying experience. Great job and blog.
I’ve been reading about this a lot recently, this seems like pretty accurate info, but I’m still not sure about what to do about the technical details… I guess I’ll read around a little more.