Make sure to get your new home inspection by a licensed home inspector

Inspection For Your Home And When Is It Done

A home inspector job is to look over the home from top to bottom. The buyer has the choice of whether to have an inspection completed or not, but it’s always highly recommended. The home inspector will provide a written statement with results to the buyer. The home inspection process should always take place before the end of the option period. Therefore, if the inspection report shows the house in a different light, you can walk away without losing the earnest money.   

Homes For Sale In Katy

What To Expect During A Home Inspection:

  1. A home inspector will look at interior plumbing, HVAC system, and electrical systems. They will inspect the roof, windows and doors, floors, attic, basement, and structural components.
  2. A home inspection takes typically two to four hours but may take longer depending on the home size.
  3. We advise buyers to attend the home inspection so you can see in detail your new home and ask the inspector any questions. Buyers will get more informative information than just reading a report.

Home Inspection Checklist: 

According to the American Society of Home Inspectors’ (ASHI), the inspector will review the following.

  1. Roof
  2. Attic, including visible insulation
  3. Walls
  4. Heating system
  5. Central air conditioning system (temperature permitting)
  6. Interior plumbing and electrical system
  7. Floors
  8. Ceilings
  9. Windows and doors
  10. Foundation
  11. Basement
  12. Structural components

Paying for an expert 

The buyer normally pays for a house inspection. However, you can negotiate the seller pays for the home inspection.

At times, sellers get a home inspection before they list their home for sale. The seller’s inspection report can provide the owner with an opportunity to fix or replace the issue before the home ever hits the market for sale.

However, we recommend that our buyers obtain their report after we have an excepted contract. We believe in always having an arm-length transaction, having an expert that does not have any ties with the seller or seller’s agent.   

Why Sell With Terra Point Realty

How much is a home inspection  

HomeAdvisor has the national average cost for a home inspection right around $336. In the Greater Houston Area, like Fulshear, Texas, the price comes in about $278 to $399. Low-end start around $200 to the high end of $500. The actual cost also depends on where the home is, as well as the home’s size. Some home inspections have a fixed price for homes up to 2000 square feet and will add $25 for every 500 square feet.

Remember, the cheapest isn’t always the best. Even though Texas requires a license to be a home inspector, ensure the inspector is sufficiently qualified and has the experience. Picking an ASHI member may add some reassurance on who to pick. Your ASHI home inspector holds themselves to a standard of being competent and ethical.  

 

Homes for sale in Fulshear

 

Can there be other types of inspection costs

Buyers are sometimes advised in the inspection report to have other types of home inspections done. There may be a need to obtain other specialty reports concerning the possible presence of:

  • Mold
  • Lead Piping or Paint
  • Termites
  • Asbestos
  • Radon

Asbestos and lead were commonly used in constructing older homes. These construction materials are not legal for use in newer homes. Sometimes buyers will require the inspector to check the sewer pipes with a camera.  

How long does a home inspection take

In the Greater Houston Texas area, the home inspection varies, depending on several factors:

  1. Number of defects
  2. The size of the house
  3. How the homeowner has prepared the home for inspection
  4. The attention to detail of the inspector

Expect two to four hours for your home inspection unless there are unusual circumstances.

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What Does An Option Period Mean?

Option Pending

What Does An Option Period Mean?

The option period is the specified number of days when the buyer has the right to have the property inspected. It’s the buyer’s unrestricted right to terminate the contract for any reason. The option period can be bought for a fee known as the option fee.

How long is the Option Period?

It’s negotiated between the buyer and seller. Typically, the option period is 7-10 calendar days.

How do you count the Option Period?

Paragraph 23, the Termination Option Paragraph uses the word within when describing the period, Day One of the option period is the day after the contract’s effective date. For example, if your client’s effective date is January 22 with a 10-day option period, the option period will end on February 1.  

What Time Does The Option Period End? 

The Texas Real Estate Commission (‘TREC”) clarified that a buyer must give notice to the seller by 5:00 p.m. (local time from where the property’s location) by the date specified Paragraph 23. 

How much is Option Fee?

It’s negotiated between the buyer and seller. Typically, it depends on how many days the buyer will need for property inspections.

Is Option Fee refundable?

Option Fee(s) is paid directly to the seller and is only refundable at closing if agreed. In the 1-4 Contract, “The Option Fee ___ Will ___ will not be credited to the sales price at closing.”

Can The Buyer Lose The Right To Back Out During The Option Period?

All option fee(s) MUST be delivered to the seller within three (3) days after the contract’s effective date, or the buyer will lose the right to back out of the contract during the option period. For example, if your client’s effective date is March 1, the option fee must be delivered by 11:59 p.m. on March 4.

Can Option Money Be Delivered To Seller by Via Electronic Payment (i.e., Venmo, Paypal, Etc.)

Yes, only if the option payment is made unconditional and if you can provide proof. If you are out of town, this may be a good option. 

What If My Option Fee Was Left, Blank?

If the dollar amount is left blank, this paragraph will not be considered part of the contract. The buyer loses the ability to have the unrestricted right to cancel.

Can Option Fee Money Be Delivered To The Title Company? 

Option Fee Money delivered to the title company is a complicated question. Suppose the question is “can” I deliver the option money to the title company. In that case, the answer is “yes” — but that answer is not one without some liability for the buyer. The contract language does not provide for option money to be delivered to the title company. It requires delivery to the seller. Suppose a title company accepts option money from the buyer or agent. Then the title company sends it to the seller. This action may not complete the delivery of the option fee under the contract. 

Texas National Title put this scenario to the legal test, delivery of option to the title company is not “strict compliance” with the contract. This scenario could be creating liability for themselves. Both TREC and the Texas Association of Realtors have highlighted that buyer’s agents are expected to deliver the option money to the seller or seller’s agent. 

If you are considering giving option money to the title company. In this case, we suggest talking this over with your agent or broker before taking that action.  

What Could Happen If I Do Not Deliver The Option Fee Correctly? 

It is our opinion that if the option fee is not properly delivered as the terms of the contract state. Could wind up causing the buyer not having an option period under the contract. 

Disclaimer
**Terra Point Realty, LLC is not giving legal advice.  The views are strictly an opinion.  Please speak with an attorney for any legal advice.**

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Is For Sale By Owner A Good Idea or Not?

Does For Sale By Owner Really Save Money

ingatlantanácsadás 1Many people who are ready to sell their homes think that For Sale By Owner (FSBO) is the way to go. After all, you get to cut out the real estate commission, so technically you can sell the home yourself cheaper and keep all the profits.

Many do not realize the headaches and costs of selling by owner. Certainly, you cut out the commission, but usually, the realtor just adds this 5-6% to your asking price so that the buyer actually pays the commission.  According to NAR, “a typical FSBO home sells for $200,000, while a typical home sold by an agent sells for $280,000.”   That adds up to homes sold by agents getting an average of 28.6% more than FSBO sales. This number reflects the expert knowledge real estate agents bring to a sale.

Sale By Owner Advertising Cost

By selling yourself, you assume all the costs related to advertising. A simple sign in the front yard just will not get the job done. Whatever prospects you get are usually bargain hunters who see the sign and immediately think it is a distressed sale. Many of the prospects are not qualified and are merely lookers who also have a house to sell before buying yours.

Sale By Owner Home Showings

You also are the one to show your house to prospects. It is true that this way you can set your own time for viewing, but you may find that it really interferes with things that you really want to do.

Pricing Your Home For Sale

Another thing to consider is that unless you are well versed in housing values in your neighborhood, you may overprice or underprice your house. An overprice will result in your house is up for sale for an extended period of time. An under price may result in a fairly quick sale, but you will have lost money that was left on the table so to speak. You will have also devalued your neighbors’ properties, as real estate values are often set by comparable sales within a neighborhood.

Sale By Owner disclosures

If you do make a sale, you then have to worry about what information must be disclosed to keep you within the law. There are certain disclosures, such as a leaky roof, foundation settlement repairs made after storms, and others. Many of these will come out during an inspection of the house, but if not disclosed or discovered before closing you may leave yourself open to a lawsuit.

Using A Real Estate Agent

With a realtor, you do not have to worry about advertising costs, showing the house, or entering negotiations until the end. A realtor will be able to show and negotiate on your home without an emotional attachment. Your Agent will want to sell it for the best possible price, as this is the way he makes his living. He or she will do the best to get the figure that you are expecting to the net. Your agent will prequalify prospects, get them signed, and point them in the right direction for financing. He will see your sale all the way through closing. All of this is included in the commission that you did not want to pay. When you consider all of this, a realtor’s commission may well be worthwhile.

Bottom Line

Is For Sale By Owner really saving you any money and is it really worth the time you spend?  Our experts in real estate will be able to advise you from start to finish.  Your real estate agent will also know exactly what information needs to be divulged to keep you legal.  The statistics show selling by owner is like throwing away $63,200.00 after paying out commissions.  So in the end, is it worthwhile to post an FSBO sign in your yard? You may still want to if you enjoy the rigors of selling a home. But for most people, the sale of a home is better left to trained real estate professionals.

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Does Your Home Have What Buyers Are Looking For?

Does Your Home Have What Buyers Are Looking For?

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There’s a great opportunity for today’s homeowners to sell their houses and make a move, yet due to the impact of the ongoing health crisis, some sellers are taking their time coming back to the market. According to Javier Vivas, Director of Economic Research at realtor.com:

“Sellers continue returning to the market at a cautious pace and further improvement could be constrained by lingering coronavirus concerns, economic uncertainty, and civil unrest.”

For homeowners who need a little nudge of motivation to get back in the game, it’s good to know that buyers are ready to purchase this season. After spending several months at home and re-evaluating what they truly want and need in their space, buyers are ready and they’re in the market now. Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) explains:

“A number of potential buyers noted stalled plans due to the pandemic and that has led to more urgency and a pent-up demand to buy…After being home for months on end – in a home they already wanted to leave – buyers are reminded how much their current home may lack certain desired features or amenities.”

The latest Market Recovery Survey from NAR shares some of the features and amenities buyers are looking for, especially since the health crisis has shifted many buyer priorities. The most common home features cited as increasingly important are home offices and space to accommodate family members new to the residence (See graph below):20200716 MEM ENGThe survey results also show that among buyers who indicate they would now like to live in a different area due to COVID-19, 47% have an interest in purchasing in the suburbs, 39% cite rural areas, and 25% indicate a desire to be in small towns.

As we can see, buyers are eager to find a new home, but there’s a big challenge in the market: a lack of homes available to purchase. Danielle Hale, Chief Economist at realtor.com explains:

“The realtor.com June Housing Trends Report showed that buyers still outnumber sellers which is causing the gap in time on market to shrink, prices to grow at a faster pace than pre-COVID, and the number of homes available for sale to decrease by more than last month. These trends play out similarly in the most recent week’s data with the change in time on market being most notable. In the most recent week homes sat on the market just 7 days longer than last year whereas the rest of June saw homes sit 2 weeks or more longer than last year.”

In essence, home sales are picking up speed and buyers are purchasing them at a faster rate than they’re coming to the market. Hale continues to say:

“The housing market has plenty of buyers who would benefit from a few more sellers. If the virus can be contained and home prices continue to grow, this may help bring sellers back to the housing market.”

Bottom Line

If you’re considering selling and your current house has some of the features today’s buyers are looking for, let’s connect. You’ll likely be able to sell at the best price, in the least amount of time, and will be able to take advantage of the low interest rates available right now when buying your new home.

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Mortgage Rates Hit Record Lows for Three Consecutive Weeks

Mortgage Rates Hit Record Lows for Three Consecutive Weeks

20200715 KCM Share

Over the past several weeks, Freddie Mac has reported the average 30-year fixed mortgage rate dropping to record lows, all the way down to 3.03%. Last week’s reported rate reached the lowest point in the history of the survey, which dates back to 1971 (See graph below):20200715 MEM Eng 1

What does this mean for the buyers?

This is huge for homebuyers. Those currently taking advantage of the increasing affordability that comes with historically low-interest rates are winning big. According to Sam Khater, Chief Economist at Freddie Mac:

“The summer is heating up as record low mortgage rates continue to spur homebuyer demand.”

In addition, move.com notes:

“Summer home buying season is off to a roaring start. As buyers flooded into the market, realtor.com® monthly traffic hit an all-time high of 86 million unique users in June 2020. Breaking May’s record of 85 million unique users.  Realtor.com® daily traffic also hit its highest level ever of 7 million unique users on June 25.  Signaling that despite the global pandemic buyers are ready to make a purchase.”

Clearly, buyers are capitalizing on today’s low rates. As shown in the chart below, the average monthly mortgage payment decreases significantly when rates are as low as they are today.20200715 MEM Eng 2A lower monthly payment means savings that can add up significantly over the life of a home loan. It also means that qualified buyers may be able to purchase more home for their money. Maybe that’s a bigger home than what they’d be able to afford at a higher rate, an increasingly desirable option considering the amount of time families are now spending at home given today’s health crisis.

Bottom Line

If you’re in a position to buy a home this year, let’s connect to initiate the process while mortgage rates are historically low.

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25 Tips For Buying Your Dream Home in 2019 – Series

Tip 23 For Buying Your Dream Home in 2019

 

Pay for a Home Appraisalapproved

A home appraisal is a critical component of getting a mortgage. It provides the lender with the current market value of the property. The home’s maximum financial cost is the collateral for your loan, and it determines how much money a lender is willing to loan you. The lender often arranges for the appraisal, but in most cases, the buyer pays the bill.

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Where to try best wine in Houston

Where to try best wine in Houston

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The rapid evolution of wine can be noticed across Houston.  However, the scene has changed a bit due to the arrival of some young sommeliers who have tried to make the place more vibrant with more choices when it comes to wine. Therefore, new places have been opening to push the boundary even further. From traditional choices of wines to wines of avant-garde nature can be found in Houston easily. Therefore, you may not be disappointed at all. Through the following choices of best wines in town, you may be able to know how the wine scene became so diverse in recent years.

Camerata at Paulie’s

Camerata at Paulie’s is one of the cherished places since it is tough to get a place of bucatini Amatriciana in any other places in Houston at a mere $10. So, you can certainly understand the attraction of this location. The wine list has been created by David Keck, who has been acknowledged as the best sommeliers in the area. Strength of Camerata is its expertise with ideal choices. However, they have a critical eye on the modernity at the same time. In addition to the meetings for the Sommeliers association, the study group is also organized here to disseminate knowledge about wine among the professionals and interested customers.

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Bar food is excellent here along with its wine choices. Markups for wine are really low. So, you do not have to worry at all to enjoy a glass of wine. In addition, craft beer can be found here too. If you cannot decide what to drink then you can always go with Syrah. Blind tasting can be enjoyed at Camerata on Sundays by the public. By guessing the wine correctly, you may enjoy some discounts also.

Plonk

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In the list of top wine bars of Houston, you must find the name of Plonk. The Burger is one of the attractions of this bar. It is believed that bacon cheeseburger has been created for the first time here. Therefore, you may be drawn towards this bar almost unknowingly. It has a wine bar of relaxed and chic nature. Gruyere cheese generally melts within the buttery bun in order to make it more delicious. In addition, there are options like mussels and Pizza also that is cooked over the stone oven. Most of the people think that wine and burger do not complement each other. However, you may be proved wrong by coming here and trying it yourself.

 

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Want to celebrate a bachelor party in Houston Here is a guide for you

Want to celebrate a bachelor party in Houston  Here is a guide for you

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By most of the people, planning for a bachelor party is considered as an easy task. However, it is not easy at all. It is necessary to find something which can be enjoyed by the groom and his friends equally. It is better to sit down and plan for the party with calm and composed mind while considering about every member in the team and especially the groom since it is a special day for him.

Have fun locally

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Bachelor party can be a weekend extravaganza as well as fun night out. Instead of going out of the city, you can organize something within the town also. It is better to go with something that is fun and active. However, it may not be a thing that is done by almost everyone. Here, some of things that you may enjoy doing within the city of Houston.

Axe Throwing

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Going out with your group of friends, you can enjoy a night of axe throwing. It is certainly unique and interesting. There is a bar for you also that may be perfect for a group.

Prohibition

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For most, it is an absolute choice. There is no doubt in the fact that it is a little expensive option. However, it may be perfect place for the bride or the groom to celebrate their bachelorhood with friends. Lots of game option can be found here also. It is possible to go for dance at Main Street and Boots ‘n’ Shoots. Some time can be spent with the board game at Dean’s Downtown also.

Piano Bar

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If you like music then Pete’s Dueling Piano Bar can be chosen for the bachelor party. However, you can go to Howl at the Moon for an eventful night. Both bride and groom may able to showcase their talent. Still, there is a chance that they may embarrass themselves also.

Brewery Tour

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In Houston, lots of breweries can be found. So, brewery tour can be enjoyed. If you are at Heights then you can go to Karbach, Eueka Heights and Great Heights Brewery. Inside Downtown, you may get options like 8th Wonder, Under the Radar and Saint Arnold.

 

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Tips for best places to shop in Houston

Tips for best places to shop in Houston

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In a city like Houston, it is possible to find strip malls at every corner to satisfy the young crowd of this populous city. However, every shopping destination within the city may not be good. Here are some of tips on where you can shop in Houston. The Galleria is certainly one of the most popular choices in the city. However, there are some other options also.

Rice Village

If you are not too fond of crowded malls then you can choose Rice Village Shopping District. In addition to the stores, the location has lots of restaurants and salons also within walking distance. Therefore, issue with the choices may not be seen at all. Brands like Victoria Secret, New York & Co, Refuel and Sephora is also present here along with some amazing and delicious restaurant like Black Walnut Café and Torchy’s Tacos. Due to so much option in a small space, you can easily go on a window shopping.

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The location is pretty close to the Rice University. If you walk about a1 ½ mile then you may find the red line of Metro Rail which is placed at the Hermann Park or Rice U Station. During a sunny day, you can take a stroll with loved ones with oak tree in the surrounding area.

The Heights 19th Street

Being one of the trendiest neighborhoods in Houston, The Height observes a combination of traditional and modern atmosphere with its green area and quality restaurants. However, shopping district can be looked as the pride of The Heights.

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Shopping in the area like 19th Street is nothing short of a treasure hunt. Lots of second hand shops can be located here too. Therefore, the location certainly comes with its own share of funk. From costumes of eccentric nature to vintage boot can be found here quite easily. Through boutiques, you may able to get handicraft made with ceramics and decors of bohemian nature. If you want to take rest for a little bit then there are lots of restaurants and cafes around.

River Oaks Shopping Center

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Over 75 stores can be found within the River Oaks Shopping Center. It is sprawled over almost four blocks. In addition to stores, lots of restaurants can be found here too. In terms of architecture, the location is pretty stylish. Later on, some modern attributes have been added to the place also. You can easily meander through the shops.

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Real Estate Forecast for Houston Market 2019

Real Estate Forecast for Houston Market 2019

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Real estate market in Texas has been going through a slump for over a decade now. However, Houston real estate market has stayed quite constant in spite of issues in the surrounding areas. Sometime back, influences on Houston real estate has not been noticed due to up and down with housing cycles around. Right now, Houston has been keeping up pace with the national average. If you look at the appreciation rate of Houston then you may find that it is little more than national rate. Therefore, Houston has become favorites for the home buyers. Investors have been putting a lot of money in the real estate business also. Some investors from overseas market may be thinking about investing money here in future also.

Therefore, prices of the house may be enhanced further in coming days. By looking at the chain of demand and supply, experts have been saying that prices of median homes may increase from 4% to 6%.

2019 Forecast for Housing Market

 

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In the last one year, prices of house has enhanced by almost 7%. It may continue with its upward rise in 2019 and 2020 also. However, the pace may be a little less than last year. So, by the end of 2019, house price is predicted to increase by 4%

Prices of Average may increase about $300,000

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Based on the reports of Houston Association of Realtor in 2019, price of average home has increased by $306,314 in 2018 December. It is an enhancement of 4.7% in comparison to previous year.

Single family home price of median range has raised over 3.4% and stood at $240,000 in the month of December

Limited Housing Inventory

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Prediction suggests that the price may enhance in future too. Supply of the house holds a major importance here. In comparison to the demands from the buyers, inventory list has a shortage till now in Houston.

During 2018 end, supply has been about 3.6 month in Houston. According to the experts, 5-6 month supply is noticed in case of balanced real estate market. So, there is still some tightness in the Houston market especially if you look at the inventory.

However, similar kind of tightness cannot be found in other areas of Texas. Supply in the housing market has been less in the places like Austin, San Antonio and Dallas also than Houston. Still, demand for Houston home is more than others. As a result, an upward trend with house price can be seen naturally in Houston.

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