Top Real Estate Articles November 2021
As we are getting into the holiday season, real estate bloggers are continuing to share relevant information to keep you informed. We are looking back at another month of real estate information with the best real estate articles for November 2021.
Essential Steps to Perform Your Due Diligence
Performing your due diligence is extremely important when buying a home. When completing your due diligence involves a deep investigation of the home, both the physical condition of the property, and a review of all the disclosures about the house.
The time frame that a buyer uses to perform their due diligence must be completed within the contingency period. And there will be contingencies with the purchase agreement that a buyer will need to perform before removing them and proceeding with the purchase.
The home inspection is probably the most significant contingency that needs to be considered.
How Does Escrow Work?
When buying or selling a home, the vast majority of all transactions have what is referred to as an escrow deposit. The escrow funds are the glue that holds a real estate transaction together.
Many real estate agents refer to these deposits monies as having “skin in the game.” By having escrow funds held in an account, a buyer can not just freely walk away from a transaction without consequences.
The article at Maximum Real Estate Exposure explains exactly what escrow is in real estate and how it works. If you are going to be purchasing a home, it will be well worth the read.
What’s the Difference Between Earnest Money and a Down Payment
You may ask yourself the difference between earnest money or a down payment when buying a home. The earnest money deposit or EMD is the amount of money a buyer agrees to put into escrow when the seller accepts their offer.
When a buyer puts down a large earnest money deposit, it demonstrates a few things to the seller, including that the buyer is serious about the offer. It shows that the buyer has money for their down payment and closing costs. Lastly, it shows the seller how confident the buyer is in their ability to purchase their home.
In most cases, buyers can get their earnest money deposit back if things fall apart within their contingency period. If the purchase falls through after contingencies have been removed, the deposit could be forfeited.
The Meaning of Contingent in Real Estate Explained
A contingent offer is widespread in most real estate sales. However, in a scorching real estate market, buyers may decide to offer fewer contingencies to make the offer more appealing to the seller. Contingencies that buyers are removing include the appraisal, home inspection, and shortening the loan contingency period.
By removing contingencies from an offer, there are risks to the buyer. Buyers need to be fully aware of the impact of eliminating contingencies from their offer. However, during a bidding war, buyers are desperate to “get in the game,” so they remove contingencies from the offer. The fewer contingencies in a sales contract, the better, as it increases the odds of the sale taking place.
When there are multiple contingencies, the odds go up the home will come back on the market.
Top Reasons for a Closing Delay When Selling a Home
Selling a home can be stressful for both buyers and sellers, especially when the closing of escrow is delayed. There are many reasons why a home closes escrow late. This can be very frustrating and costly to all parties involved with the real estate transaction.
It is crucial to be prepared and make sure you have been pre-approved and are working with a suitable lender who can meet the time guidelines in the contingency period. Another reason that a home closes late can be due to the home inspection.
The appraisal can come in under the purchase price. There are many other reasons that escrow will be delayed. It is a good idea to be prepared and to move quickly to ensure that you stay within your time frames.
Facts to Understand About a Second Mortgage
You may be considering obtaining a second mortgage on your home. If you find you need a source of cash for consolidating debt, or home improvement, a second mortgage may be a reasonable consideration.
The equity you have in your home could be the solution. A second mortgage will release some of the money you’ve put into your home when you need it.
If you have had a mortgage on your property for a few years, there will be equity that you can borrow on. When you take out a second mortgage, this accumulated value will be used as collateral to get the loan.
How Can Home Buyers Get Out of a Purchase Agreement
Homebuyers can change their minds about a home after their purchase agreement is accepted. Buyers can simply change their mind, or it may be due to finding material facts about the house that is unacceptable.
The home inspection is a critical contingency, and if a buyer discovers something about the property that is unacceptable, then they can cancel the agreement.
The buyer has a contingency period to perform all their due diligence. Buyers can cancel the purchase agreement if they find material defects in the home or even if they just get cold feet.
How to Choose Between Multiple Home Offers
There will be many terms on a purchase agreement, and many sellers will look at the price first. The idea is to make as much money when selling your house. But you don’t want to tie yourself up if you have a buyer who can’t perform. There are many things to consider when you choose between multiple offers.
Perhaps the person offering the most money is mortgaging all or a portion of the home, and they may not qualify for the amount needed they have offered. Other factors to consider are the length of escrow, contingency period, whether they are paying cash or obtaining a loan.
What To Know About Remodeling A Bathroom
When you remodel a bathroom, it definitely adds to the value of a home. It will also create an updated look and feel of the house. There is a process to remodel a bathroom so they can make sure it is done correctly. You need to consider if you are taking the bathroom down to the studs or just replacing the spa tub with a free-standing tub. The shower can be updated and add a rain-style type shower.
Over the long term, replacing an inefficient faucet or an old toilet with a new low water consumption toilet will save your money on your water bill. Lighting fixtures that use incandescent light bulbs, the new LED-powered lighting fixtures can help save on your electric bill.
9 Things You Should Know Before Installing Solar Panels
Solar energy is becoming more popular for homeowners. Installing solar panels on your home is a great way to add It is your best option for clean energy, and they will reduce the electric bill. Solar power systems are better and more reliable, and they are a decrease a homeowner’s strain on the grid.
Some steps need to be taken before installing solar panels, such as roof repair. Additionally, the weight of solar panels needs to be considered. A roof will need to be engineered to support the weight of the so9lar panels.
Warranties are highly recommended for solar panels. Should anything happen to the solar panels, the manufacturer will take responsibility if you have a warranty in place.
Tips For Finding the Right House When Relocating
When buying a home in a new location, buyers must perform their own research about the community. The analysis can be done online, in person, and by asking neighbors about the community. It is a good idea to determine the appealing local amenities, such as dining and shopping.
When finding the right house when relocating, other factors include the proximity to highways and freeways if you need to commute for employment. You also need to decide what type of property will be suitable, including whether it is a condo or a single-family home.
We hope you enjoyed this month’s real estate articles. It is a good idea to be prepared before you embark upon a real estate transaction. Anticipating what can happen in a transaction will help to avoid frustration and stress.
PREVIOUS BEST OF REAL ESTATE ARTICLES
- Best Real Estate articles October 2021 – see some of the best articles published in September 2021 to help buyers and sellers make sound decisions.
- Best Real Estate articles September 2021 – get the advice from September filled with informative buying and selling advice.
About the Author: Top Newport Beach Realtor Sharon Paxson wrote the article “Best Real Estate Articles November 2021”. With experience since 2005 representing sellers, buyers, and landlords with their real estate transactions. We welcome the opportunity to share our knowledge and expertise and guide you through the home buying or selling process.