Posts in category 'Real Estate Tips'

Shifts in the housing market can cause a lot of anxiety for homeowners and prospective buyers a like. If you're keeping up with the commentary surrounding the housing market right now, you might be hearing vastly different advice from economists around the nation. It might make you wonder— who should I be listening to?

The answer to that question is simple, actually. You should listen to advice from a local market expert, especially if you're considering making a move with your real estate investments. Our office, and many others like ours, live and breathe the Knox County housing market, and we have much more insight regarding what you can expect out of your investment.

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Are you planning to make some home improvements this year? Well, the Inflation Reduction Act just passed by Congress is making your plans less expensive!

Baked into the legislation are certain tax credits that will ease your cost burden when you choose "green renovations" (energy-efficient alternatives) to improve your home. This includes things like installing solar panels, or replacing windows and doors.

We've seen tax incentives for making your home more energy-efficient in the past, but this bill expands those incentives profoundly— offering a $1,200 credit available for ten years. Additionally, for smaller projects like replacing your HVAC system or water heater, you can receive a $600 tax credit. That's stackable, by the way, meaning to could replace multiple appliances and receive the credit for each.

No matter what, when it comes to taxes, you definitely want to speak with a tax specialist to see how these incentives will work for you. It's especial...

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With interest rate hikes, we will likely see a correction in the housing market. For most, that's good news— we love a balanced market that takes the pressure off of both buyers and sellers. But in the mean time, it kind of leaves everybody wondering what to do in order to make a reasonable real estate move.

Sellers may be concerned about their listing's profit potential as more and more buyers are priced out of the market by higher home prices and higher interest rates.

Buyers, of course, are concerned about more expensive loans and whether or not they can make something happen before interest rates increase again.

And while interest rates are still low historically, we are absolutely in the midst of an affordable housing crisis because of inflation.

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How to Increase Your Chances of Success With Negotiating Remedies

So, you've gathered all of your inspection reports for the house you plan to purchase, and you've found that you're not comfortable with the current condition of the home. What can you do?

First of all, no one can force you to buy a home you're not comfortable with. In Ohio, the inspection contingency allows you to terminate a contract based on inspections. But you also have the opportunity, through an agreement to remedy that might allow you to purchase the home with the repairs you need in order to feel comfortable.

This is another round of negotiations and, at times, it can be more tough than the initial contract negotiations. So I have three tips to help increase your chances of success!

1. Be reasonable. There is no such thing as a "perfectly conditioned home." Even new builds can have flags on an inspection report. Make sure you are negotiating repairs of things that are truly concerning to you. Nickel and dime-ing a seller is a great way to insure a break down and bad blood during negotiations. Make sure you have an in-depth conversation with you inspector about which condition items should be addressed prior to closing.
2. Gather estimates to provide with your documentation. You'll need to provide the sections of the inspection report that are relevant to the request to remedy, but it's also helpful to provide a quote for the work. This requires a little more coordination on your part, but it provides so much clarity for you and the seller, which might prompt and easier and faster negotiation process. Further, if the seller chooses to deny your request, you also have clarity on the cost of repairs should you choose to move forward anyhow.
3. Consider a credit from the seller for the cost of future repair. If you're comfortable closing with the property in its present condition, but concerned about repairs for items on the report, consider asking the seller to cover a portion of your closing costs in lieu of repairs. This gives you some extra cash on hand to do the work yourself. If the seller is looking for an easy path forward, this is a great solution. If they would rather control the cost, they may opt to have the work done prior to closing.

I hope these tips are helpful! If you have any questions, feel free to reach out to us at johnyoderteam.com/contact and speak with an agent today!

Until next time,
Cassie Johnson
Key Realty - John Yoder Team

What You Should Know About Ordering Inspections on Your Next Home!

When you enter into contract on a property, the first two weeks or so can feel overwhelming. This time frame is where you're doing your due diligence to learn as much about the property as possible through inspections. Most buyers, though, don't know exactly what inspections they should be ordering or how to prepare. So, I'm going to break everything down and discuss the types of inspections that are beneficial to most home buyers.  

Before I do that, I want to mention budgeting. The buyer is likely going to responsible for all of the costs associated with generating reports on the condition of the property. I always tell my clients to budget between 600 to 700 dollars for this process, but if the situation arises that additional inspections are required, you could spend over 1,000 to get a clear picture of the condition of the property. 

Your agent should be able to point you in the direction of reputable inspection contractors that can be hired for reasonable fees, but the inspections you have performed and who you choose to perform them is entirely your decision. We generally suggest between four and five companies that we've worked with for your to research and make a decision.

Let's dive in to the types of inspections you should be considering. 

-First is going to be the general home inspection. This inspection will generate a report that will give you an overview of the condition of the home in general, including the roof and mechanicals. Your inspector will likely make comments on things that need repaired or replaced for the home to be safe. 

-Next is a gas line inspection to determine if there are any gas leaks on the property. 

-You should also consider a wood destroying insect inspection to examine whether or not there is any past or current activity that needs addressed. 

-If the property is not on city water and sewer, you're also going to want the well and septic system inspected so that you can make sure those systems are functioning properly. 

-Another inspection that has become common recently are the radon inspection, which will tell you whether or not the home meets the standards for the hazardous gas of radon. Radon is a carcinogen that can increase your likelihood of developing lung cancer when exposed to high amounts over decades of time.  It's common, especially in Knox County, to have radon levels that are higher than recommended, so you want to get an idea of what the level is at the property you're purchasing. 

-Finally, if you're purchasing a home that is on city water and sewer, and that home has been around for a century or longer, your sewer line might be made of clay tile. These systems, over time, might crack, so you want to consider having the sewer line camera'd. This will give you an idea of whether or not there is damage to account for repairing. 

It is possible that the property you're buying will require additional inspections. Your inspector will be able to direct you to more specialized reports that should be gathered, should the need arise. A common example is if there are noted structural concerns, your inspector will likely recommend that a structural engineer examine the property's integrity. This is also common with mold found in a home. While mold is likely to be found in any home, a mold mitigation company can identify whether or not there are toxic molds present.

You will have a specific period of time written in your contract for inspections. By that deadline, it's important that you have all of your reports on hand so that you can have the clarity necessary in order to move into the Agreement to Remedy phase. We'll cover that next in our Buyer Education Series.

We hope you're finding this information helpful! If you would like to speak with an agent about your real estate goals, don't hesitate to reach out to us at johnyoderteam.com/contact.

Till next time,
Cassie Johnson
Key Realty - John Yoder Team