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Author: opey@gulflifego.com

  • How to Protect Your Home From Severe Cold Weather

    Homeowners in cold-weather climates face icy conditions, blizzards, and other cold-weather storms. Beyond barring you from being able to leave your home, severe cold weather can threaten your home’s structure and your safety. It’s important to take preparatory measures and invest in the resources you’ll need to deal effectively with winter’s challenges before it gets into full swing.

    Understand the threats of severe cold weather

    Blizzards: Storms with heavy winds and large amounts of snow accumulation can cause roof or other structural damage and leave you isolated.

    Ice storms and ice dams: Ice storms coat structures, trees, power lines, cars, roads and virtually everything else with ice. As the ice melts, large chunks can fall and cause injury to anyone below. When ice melts during the day and then re-freezes at night, ice dams—which block water from flowing in the gutter—may form. This condition can force water back under the roof line and cause leaks.

    Sleet or freezing rain: Combinations of snow and freezing rain may cause slippery conditions and coat roads, sidewalks and driveways with ice when temperatures drop.

    Protect yourself from severe cold weather

    The Federal Emergency Management Agency (FEMA) recommends that homeowners have shovels on hand, as well as melting agents such as rock salt. Some of the new, more environmentally friendly deicers include calcium magnesium acetate and sand to improve traction. Be sure to stock up early in the season, as these agents tend to be in short supply during periods before a well-publicized storm.

     

    FEMA also advises you have enough fuel to maintain heat in your home, as well as a backup heating source: firewood if the home has a working fireplace or a generator to power heaters in case of power failure. However, use caution as these can represent fire hazards when not used correctly. Be sure to follow directions explicitly and keep a fire extinguisher. Some generators and fireplaces also require proper ventilation, according to the Institute for Business and Home Safety—so follow directions carefully and keep them away from curtains or other flammable items.

    Stock up on extra blankets, warm clothing and enough food/water to sustain your family in case of a few days of isolation. And a transistor radio with fresh batteries can help keep you updated on news and information in case of a power outage.

    Protect your home from severe cold weather

    Before winter, there are some precautions you can take to protect your home from the ravages of severe cold weather storms.

    Winterize your home: Check shutters, siding and other exterior materials to ensure they’re secure, says retired contractor, home improvement expert and writer John Wilder of Jacksonville, FL. High winds, ice and moisture from winter storms can easily strip off such outside elements if they’re loose.

    Be sure that gutters are clear of debris and walkways are even—and don’t represent tripping hazards that can be exacerbated with snow or ice. Caulk drafty windows and apply weather stripping to doors, both inexpensive strategies that can keep heat in your home. Air sealing can help you save about $350 in energy costs or one-third of your average annual heating and cooling costs. The average annual home energy bill is about $2,200, according to Energy Star—of which about $1,000 represents heating and cooling. An assortment of air sealing materials and tools—including silicone foam, caulk, aluminum flashing for flues and additional insulation—will run roughly $100 to $350.

    Winterize pipes: Be sure your pipes, especially those exposed or in unheated areas like crawl spaces, are wrapped in insulation to prevent freezing and bursting. Also, learn where your water shut-off valves are so you can turn off the water supply in case of a leak. Six feet of insulation can cost anywhere from $7 to $17; it’s available at most home improvement stores.

     

    Trim tree branches: Branches that overhang roofs or areas where you park your car—or which are simply overgrown—represent a risk to structures, vehicles and people. Keep trees trimmed and remove those that are weak or sickly to prevent them from falling on or near your home. Tree trimming and removal pricing varies greatly, and you may have additional restrictions if you live in an historic community—or if the trees are close to power lines.

    Check with your municipality about any regulations and contact your local Chamber of Commerce, municipal offices or contractor rating sites like merchantcircle.com or angieslist.com to get the names of reputable pros. Tree trimming and removal can be dangerous, so don’t attempt it on your own unless you’re experienced.

     

    By keeping your home in good repair and stocking up on the supplies you’ll need before the rush for rock salt and shovels begins, you’ll be as ready as possible to tough out the storm.

  • Five Reasons to Replace Your Windows

    Replacing your home’s windows can seem like a task that is not your top priority, but the benefits you can gain will make a huge difference.  Over time, windows need to be replaced, just like your appliances or roof shingles. Don’t wait until the weather gets cold, now is a good time to take a look at your windows and determine if they will need to be replaced.

    1. Energy Efficiency
    If you are starting to notice your energy bills are going up, you might want to take a look at your windows to see if they are the cause of the problem.  Window replacement is a common recommendation among construction professionals as a way to improve energy efficiency. According to a study on the energy performance of residential windows, new windows reduce annual heating and cooling costs by 22%.  Although new windows are an investment, they will save you money in the long run. Now is the time to swap out your old windows with double-pane, energy-efficient windows.

    2. Window Defects
    If you start to notice any defects in your windows, such as small cracks or chips, it is a good time to replace your windows.  Leaving a crack will only cause more damage in the future. Some problems include air leaks, water leaks, and letting in small insects. Visible cracks also weaken the strength of your window.  Having a crack or broken window can cause a lot of problems down the road. It is a good idea to replace them sooner rather than later to save money.

    3. Security
    Windows are an entry and exit point to your home so windows that aren’t opening or locking correctly pose a security risk. Some signs that burglars might look for to identify vulnerable windows include old or wooden windows, windows with cracks, or condensation in windows.  You also don’t want small critters like bugs or chipmunks getting through window openings.

    4. Curb Appeal
    Updating your windows might seem odd to increase your curb appeal, but instead of simply focusing on changing the outer appearance of your home, be sure to incorporate changes that add into your home’s structural integrity and energy efficiency. For instance, if your window frames have rotted then you’re ready for new windows.  They will not only improve the functionality of your home, but the appearance too. Installing new windows will increase the value of your home and make it more appealing.

    5. Value
    If you’re thinking of selling your home in a few years, replacing the windows can help your home stand out in a crowded market, plus raise its value before you list your home. Some buyers love buying homes that are not only move-in ready, but updated with modern amenities. New windows improve your home’s marketability and help you command a higher selling price.

    If you have old windows in your home or are planning on listing your home soon, now is the time to replace your windows.

  • Comparative Market Analysis Basics

    With the end of the year here, home sellers are doing whatever they can to make their homes the most on the market. To attract prospective buyers, things like well-maintained curb appeal and properly staged rooms are a major help. But there is one factor that can drive buyers to—or from—a home in a hurry. If the sales price is wrong on an otherwise perfect home, it may never stand a chance of selling.

    If you’re planning to list your home this fall, you’ll obviously want to set a fair and competitive price. To do so, make sure your professional real estate agent completes a comparative market analysis, or a CMA. This report of similar homes that are currently listed, have recently sold or have even been withdrawn from the market, can give sellers the extra confidence and peace of mind that they are setting the right price to get their home sold.

    Why is it so important to compare your home to others on the market? Reviewing other homes that are currently for sale makes you familiar with your competition, but it won’t dictate your sales price point. Instead, your agent will review similar homes that already have sold (typically within the last three months). These homes paint a truer picture of what buyers are willing to pay—and where appraisers are likely to value your home. Armed with this knowledge, sellers can more easily set the right price for their homes.

    What aspects go into a CMA? With so many homes on the market, how is a real estate professional to know which homes to compare a seller’s home to? Well, they examine a few key factors in homes that have recently sold:

    1. Age
    When real estate agents look for comparable homes, they look for homes that were built around the same time. Particularly in today’s planned developments, construction and layout among homes are similar, which makes for a more even comparison. So, if a home that has recently sold has the same layout as a seller’s home, it might be a good candidate for the CMA.

    2. Size
    Of course, square footage is also an important factor when completing a CMA. But, as we’ve mentioned, when real estate agents compare similar homes, they also look at the layout. Why? It is a lot easier to compare two two-story homes to each other than it is to compare one two-story home with a ranch. Agents will look for homes that have similar square footage and structure when they are completing a comparative market analysis.

    3. Location
    Frankly, a two-story home in the city and a two-story home in a far-off suburb are not ideal for a CMA. Though they may have a similar construction date and layout, their respective locations make them far less than a match when it comes to an equal comparison. Instead, agents look for homes that have recently sold in or near the same neighborhoods where their clients are planning to list their homes.

    4. Extras
    So, a real estate agent finds a few homes with similar construction dates, layouts, and locations. What do they look for next? The amenities. Ideally, if a seller is hoping to set a higher price point, their home will have a few more amenities or upgrades than homes that have recently sold. We’re talking about finished basements, upgraded flooring and possibly an incredible walk-out deck. OK, that may be a stretch, but if a seller is hoping to set a higher price, upgrades matter when it comes to a CMA.

  • Realtor® vs. Real Estate Agent: Deciphering the Difference

    While you may think the terms “real estate agent” and “realtor” can be used interchangeably, that is just not the case. In fact, there are several differences between the two. Today, we’re shedding some light on a few of those determining factors – along with some similarities, too.

    First and foremost, they’re both legit. Both real estate agents and realtors have taken the necessary courses and passed the required licensure exam to help buyers and sellers complete their real estate transactions. That may be their biggest similarity. Their biggest difference is pretty simple too… Realtors belong to the National Association of Realtors (NAR), while real estate agents do not. What does that mean?

    Realtors practice real estate under the NAR code of ethics. Basically, they agree to work with other real estate professionals to ensure that their clients’ best interests are met. What does that mean to a buyer and seller? Well, obviously, it means their realtor pledges to do their best to help their client buy or sell a home. What it does not mean for those clients is that their realtor will do this unethically. Realtors also pledge to treat all parties in a transaction with honesty.

    What are the consequences for violating the NAR code? That is pretty simple too. Realtors who are found to have acted in a way that is not in accordance with the code of ethics can have their “realtor” title removed.

    Do these differences mean that you’ll only receive honest, reputable service from a realtor? Absolutely not. What this information means is that you need to choose the person who will be representing your home sale or purchase very carefully.

    Here are three tips to help you make sure you select the right real estate agent:

    1. Take advice from family and friends.
    When a family member or friend has had a good (or bad) experience during a real estate transaction, they are bound to want to talk about it. If you have friends or family members who are particularly happy with their home sale or purchase, find out what it was they liked most about their real estate professional – and find out if they would use that person again.

    2. Read the reviews.
    Family members and friends are not the only people who want to share their opinions about their real estate transactions. Use tools like social media sites and online reviews to confirm the word-of-mouth advice you receive.

    3. Conduct your own interviews.
    As with any advice, take real estate recommendations in stride. Reach out to the real estate agents or realtors who’ve helped your family and friends. But make sure they can help you too. Ask them about the things that matter most to you when it comes to your transaction. See if they will be a good fit for you. Once you’re satisfied, select your real estate professional, and rely on their honesty and expertise to carry your home sale or purchase to completion.

  • Home Energy Cost: The Real Deal on Big Bills That Come With a House

    Home energy cost is not something people always think of when it comes to buying a house. But don’t get consumed by the details of finding and buying a house without considering the potential bills you’ll have to pay every month for heating, cooling and more.

    Home energy cost considerations

    Even an affordable mortgage payment could quickly tip into the pain point if your new home comes with a monthly utility outlay that you weren’t expecting. So what factors should you consider? Everything from your electric bill to your heating are part of your home energy cost.

    How to do that math:

    You might want to hire a professional to determine the home’s overall energy costs before committing to a down payment. Energy audits cost a few hundred dollars but could save you from countless headaches (and costs) down the line. Not only will they give you a good idea of what’s in store, they will also point you toward fixes you can install so you’re not facing the same bills as the previous owner. The federal government’s Energy.gov site has guidelines for home energy audits, and tips for a DIY version. If you don’t want to go that far, here are some specifics to consider:

    Heating and cooling systems

    Heating and cooling can consume 45% of a house’s energy costs. The layout of the house will be a factor in energy costs. Vents located under windows are inefficient, and some rooms may not even have vents. In colder climates, remember that heat rises. High ceilings can result in wasted energy and added heating costs every winter. In tri-level houses, the upper floors will be warmer while the ground floor will be colder.

    Consider how much alterations might cost. In-floor heating can save you up to 40% of energy costs, depending on the system. To have a professional install a hot water radiant floor heating system would cost about $6 to $15 per square foot.

    Get all the information available on the house’s furnace and air conditioner. Find out the seasonal energy efficiency rating (SEER) for the house’s air conditioning system. For gas furnaces, you need to know the Annual Fuel Utilization Ratio (AFUE). If the house’s heating and cooling systems are 10 to 15 years old, or have a SEER of less than eight, it may be necessary to replace them.

    Appliances energy costs

    Did the former owner of the house throw in some appliances as part of the package? Although this gesture may save you money in the short run, be aware that older appliances can be much less energy efficient than new ones. Inefficient appliances eat up energy and can cost you hundreds of dollars over time. Research the make and model of any used appliances and assess whether they will incur higher energy costs than if you bought new ones.

    Tax credits

    State and federal programs might offer tax credits or other deals, such as grants or discounts, if you replace older appliances or heating or cooling systems, like an aged boiler, with newer, more energy-efficient versions. Some localities offer free energy audits, too. It might be worth asking about such programs if you are looking at an older house. Maybe the efficiency ratings are low, but if you love the house, and there’s enough deals available that you could upgrade relatively painlessly, it might still be worth purchasing. The key here is knowing the facts so you can judge what your bank account can handle.

    Infrastructure

    Check features such as windows, doors, insulation and siding for efficient energy usage. You can hire a professional to use a thermal camera to see where heat escapes, or conduct a blower-door test to identify air leaks by using a large fan with an airtight skirt that blows air out the door, although those tests could prove expensive. Insulation in the attic should be thick enough to hide all of the studs. Weathering and material aging can cause problems with siding, such as cracking, rotting or cupping, so check its condition too. Leaky windows glazed with putty can be reglazed, or consider buying double-pane windows. These will run you about $600 for moderate quality or up to $800 for high quality.

    Architectural features

    Big homes mean bigger energy bills too, so consider size in relation to your ongoing energy bills when you look at homes. A big stairway in the entryway means a lot of wasted heat each time the front door opens. Beautiful cathedral ceilings can bump up energy bills too. Walls of windows can afford a lovely view, but the added sunlight can strain your air conditioning bills in the summer, while leaks will raise your heating costs in the winter.

    Energy costs: an informed decision

    Only you can decide whether a home’s energy costs are worth the selling price. Your dream home may not be so ideal if the energy bills deplete your savings. But it could be worth investing some money in upgrading the house’s systems and features.

  • 5 Reasons to Hire a Property Manager

    Sometimes, it can be hard to admit that we need some help – particularly when admitting that fact may cost us some money. But, for the group of homeowners who not only own a primary residence, but also have one or more income properties, how much is too much?

    As a landlord, income property owners are responsible for a laundry list of tasks that include, but are not limited to finding and retaining tenants, managing routine maintenance and repairs, collecting rent, handling tenant complaints and, frankly, just being available in case of an emergency. And, yes, that is in addition to any day job the income property owner may have, too.

    When income property owners decide to hire a property manager for their investment properties, guess who handles that laundry list of “landlord” tasks? Not the property owner!

    Are you an income property owner who may need a little help? Here are five reasons it may be time to hire a property manager:

    1. You own multiple properties or rental units. Maybe managing one tenant is doable while balancing life’s other priorities – and even that’s a maybe. But, if you are an income property owner with multiple homes or other rental units, it is understandably difficult to maintain the properties and manage the tenants. It could be time for you to contact a reliable property manager who can help to lighten your landlord’s workload.

    2. You don’t live near your rental properties. What do you do when you live a few states away from your income property and it is time to show it to potential new residents? What if your tenant contacts you in the middle of the night with a plumbing issue or other pressing problem? When you don’t live near your income property, it may be more cost-effective and efficient to hire a property manager.

    3. You don’t have a lot of time to devote to managing your property. Is maintaining your income property and keeping tenants happy your only job? It certainly can be a full-time job! So, if you’ve got a career in addition to owning a rental property, you may need to decide how much of your free time you’re willing to devote to being a landlord. If you’re having a hard time wearing all hats, you may need to hire a property manager.

    4. You are not (and don’t want to be) familiar with landlord/tenant laws. In addition to all those previously listed landlord tasks – you know, maintaining your property and managing your tenants – a landlord also needs to be familiar with housing regulations and property laws. There are local, state and federal regulations that landlords must follow. How can you be sure you’re in compliance? A property manager can keep you and your property up to date on the latest laws and regulations.

    5. You can afford it. Perhaps this should be number one on the list. But, if you’ve seen yourself in all other listed reasons, this may be the last thing you need to evaluate before hiring a property manager. Keep in mind that they typically function as independent contractors and most property managers may take a flat fee of one month’s rent or anywhere between around 5-10% of your monthly rental fees. Do the math and decide if you’re able to afford that kind of sometimes-invaluable help.

    As an income property owner, it may be difficult to admit that you need the help of a property manager. But, if you already can admit that you’re struggling to properly maintain your property and manage your tenants, the easy choice for you may be enlisting the help of a trusted property manager today!

  • 3 Sneaky Ways to Make a Small Home Office Look Huge

    The struggle of the way-too-small home office: a space that needs to be functional often doubling as a guest room and the holding pen for all the random stuff you couldn’t find a home for elsewhere. And did we mention these rooms are often tiny? You spend many of your waking hours in this small, cramped place. So, how can you figuratively supersize one of the hardest-working and smallest rooms in your home?

    1. Pick the right-sized furniture

    One of the worst home office fails? Furniture that simply doesn’t fit! Just because you want a large work surface (who doesn’t?), it doesn’t mean you want to overwhelm your space with a massive CEO-style desk. Start with the right-sized desk, and orbit other furnishings around it. There isn’t a formula for size; the more compact you can go, the better. The small-home mecca otherwise known as Ikea offers countless affordable desk options. Take measurements of your room before you shop, and don’t forget to account for other furniture that needs to go in the tight space. And maybe factor in a bit of walking space, too. Find a desk that has ample storage and just enough surface space for your computer. If you primarily use a laptop, you can get away with a small laptop desk for tight spaces. For bigger devices, consider a storage-rich desk that’s both stylish and sturdy.

    When it comes to your chair, you want comfort, but you don’t need the gargantuan seat on wheels that you’d see in an office building. Pro tip: Go for a stationary chair with style. Standard dining chairs work well because they’re smaller than most office chairs, but they have high backs, so you don’t have to worry about being down too low. Dining chairs are a lot more attractive than office chairs, and they just blend in better.

    2. Find a place for everything

    On websites, floating, open shelves look amazing. Know why? Because they’re styled for photos, not living. They probably hold about half the stuff you really need. Your pile of crumpled and mismatched paper? It’s not nearly as eye-pleasing as the perfectly stacked piles you see in design books. Here’s a good way to leverage wall space: Use it to hang file holders. You’ll find plenty of options at The Container Store or any office supply retailer. Every item should have a dedicated place that’s not your work surface or the floor.

    If you can squeeze another piece of furniture in your room, Petty suggests a closed cabinet. A stylish armoire could be a nice touch. Use bins to store your office wares inside. Purchase cord organizers and tuck away that laptop when you’re offline to make everything look seamless. If you must leave things out, then do it in style.

    3. Have fun with decor

    One of the easiest and most cost-effective ways to make your work ambiance more Zen is through color. You can paint, but a hued wallpaper looks great, too. The key, productivity-wise: You want a design that’s inspiring but not distracting.

    While overhead lighting is the best lighting for task-orientated work, a desk lamp can add a great decorative detail. Don’t opt for one that looks too utilitarian. With practically no effort, you can find options that are stylish, attractive, and affordable (the trifecta!).

    One thing to skip: rugs. Chairs are harder to move on rugs and placing them under a desk ends up cutting the rug off awkwardly.

  • Staged Home Living

    Life in a staged home may seem perfect to some, but there is plenty of work that goes into maintaining a perfect house. With each room comes a set of responsibilities that ultimately contribute to maintaining that immaculate appearance

    Home staging tips often touch on one important point: You have to be prepared to maintain a state of perfection from under your sink to within your bedroom closet. While certainly not impossible, this takes dedication. This can also pay-off handsomely in the end, when homebuyers, enthralled with the state of your home, begin making offers. There is a lot that goes into perpetuating perfection.

    Here are tips, room-by-room, on how to live in a staged home:

    The bedrooms
    These rooms tend to collect clutter. To alleviate that, it is time to make use of those nightstand drawers, and possibly under-the-bed storage. While it is OK to keep maybe a book or two, – maybe home staging books! – and a lamp on top of your nightstand, everything else – tissues, glasses, etc. – should be stowed away in storage somewhere accessible yet hidden. Clothes should also be neatly stored. Make sure to consistently put clothes in the hamper. In a staged home, you’ll probably be doing laundry often anyway – to keep towels, dishcloths, and other similar items clean. Also, it is crucial that everyone in every bedroom makes his or her bed immediately after waking up in the morning.

    The kitchen
    Air freshener is your best friend in a staged home. Of course, you will probably end up cooking in your staged home. Even a smell can turn a potential homebuyer off, though. Use air freshener to ensure your home smells as perfect as it looks. Clean every surface after each meal cooked, as well. There should never be dishes in the sink when people are touring the home, either so clean them or place them in the dishwasher right away.

    The bathrooms
    Your bathroom should appear as though no one uses it. That means storing away shampoos, soaps, and razors after showers, and cleaning every day. If you have more than one bathroom in your home, have everyone share one to reduce the amount of cleaning required. This is where laundry comes into play again – every time someone uses a towel, it should be washed, rather than hung up to dry, to avoid any sort of clutter at all.

    Other rooms and spaces
    You can treat the family and living rooms similar to bedrooms – plenty of hidden storage space, spotless floors and no clutter whatsoever. Also, it is important not to forget closet and pantry space. While storing clutter away is important, overfilling closets and pantries will make them seem tiny. Organize these spaces to ensure their sizes are accurately represented.

    Prioritizing perfection is paramount in a staged home, but if you can maintain it there’s a good chance buyers will fall in love with your spotless house.

  • What is a Purchase and Sale Agreement?

    When it comes to a real estate transaction like buying a home, a lot of important paperwork needs to be completed before you can call a home yours. One of these important pieces of paperwork is a purchase and sale agreement.

    To help you navigate this document, we’ll go over what a purchase and sale agreement is, what makes up the agreement, and what happens after the agreement is signed. So whether you’re selling a home in Boston, MA, or buying a home in Dallas, TX, read on to learn more about what goes into a purchase and sale agreement during a real estate transaction.

    What is a purchase and sale agreement?

    A purchase and sale agreement, PSA or P&S for short, is the document received after mutual acceptance on an offer. It states the final sale price and all terms of the purchase in a real estate transaction. PSAs can vary by state but they typically consist of the final sale price, earnest money details, closing date, title information, and contingencies agreed upon by the buyer and seller. Additionally, other details will be outlined in the agreement regarding timelines and anything else the buyer/seller requests.

    Who drafts the purchase and sale agreement?

    Depending on the state where your dream home resides, either the buyer’s agent or the real estate attorney will draft up the contract. In states where escrow agents handle the closing process, the buyer’s agent is responsible for preparing the PSA document. In areas where attorneys handle the closing, the attorneys will prepare the document. The buyer, seller, and their respective agents will sign the document.

    What does the purchase and sale agreement consist of?

    The specific items in this contract vary by state, but will almost always include the following:

    1. Final sale price: This is the purchase price agreed upon by the buyer and seller. Note that this price might change during negotiations before the closing date. For instance, if the buyer’s home inspection turns up a problem with the home, the buyer may be able to negotiate a reduced purchase price.
    2. Earnest money details: The PSA will include information on the earnest money deposit, such as the dollar amount and instructions for making the deposit. In most areas, the buyer will need to deposit a personal or cashier’s check within one to three days of mutual acceptance. The check will be held by a neutral third party until the completion of the deal.
    3. Closing date: On your closing date, the purchase will be completed, the transfer of property will be recorded with the local government, and the seller will receive the money for their home. Usually, you’ll sign all the necessary paperwork a day or two before your closing date. Your closing date may change, however, due to unforeseen events, such as your financial paperwork taking longer than expected.
    4. Title insurance company: Information about your title company will be included in the PSA document. As the buyer, you always have the right to select a title company. You should talk to your agent or attorney if you have any questions about choosing a title company
    5. Title condition: The PSA will include an agreement that the seller will provide a clear or marketable title of ownership to the buyer.
    6. Contingencies: Contingencies are conditions that must be met in order for the home purchase to be completed. If one of these contingencies is not met, the sale may be canceled by the buyer or seller. Here are some examples of common contingencies:
    • Inspection contingency: This contingency allows the buyer to have the home inspected before going ahead with the purchase. If the inspection turns up a problem with the home, the buyer can renegotiate with the seller, who may repair or offer a credit for the problem. If the problem is severe, the buyer can back out of the purchase without losing the earnest money deposit.
    • Financing contingency: This contingency requires the buyer to get approved for a mortgage before making the purchase. If the buyer is unable to get mortgage approval they can back out of the deal.
    • Title contingency: This contingency gives the buyer the right to review the home’s title for problems or conflicting claims of ownership. If the title review turns up a serious problem with the title, the buyer can require the seller to satisfy them before the closing date. If these items are not cleared before closing, this contingency allows the buyer to walk away from the deal.
    • Appraisal contingency: This contingency allows the buyer to back out of the deal if the home appraisal reveals that the home is not worth as much as the buyer intended to borrow and pay for it.
    • Home sale contingency: Less common than the other contingencies listed above, this contingency gives the buyer the right to back out of the deal if she is unable to sell her current home.
    • Addendum: An addendum, also known as a rider, is any additional request from the buyer to the seller that is not included in the actual PSA document. Examples may include a buyer’s request that the seller pays part of the buyer’s closing costs, or that the seller includes appliances or furniture not originally included in the home’s sale price.

    Purchase and sale agreement vs. purchase agreement

    The purchase and sale agreement may sound similar to the purchase agreement, but they shouldn’t be confused with each other. A PSA outlines the specific terms in the transaction between the buyer and seller while the purchase agreement is the final paperwork signed by both parties for the sale of the home. Once the details of the purchase and sale agreement have been signed and covered, the parties will move forward with the sale of the home by signing the purchase agreement.

    What happens after a purchase and sale agreement is signed?

    After the buyer and seller agree and sign upon the terms of the PSA and the earnest money is deposited, the buyer and third-party companies will begin the home inspections, title searches, loan agreements, and anything else outlined in the agreement that needs to be checked. It can take several weeks for the finalization of the purchase and sale agreement if problems arise during an inspection which can lead to negotiations and counters. Once the PSA is signed the buyer has finished the inspections, and other requests are outlined, the buyer will sign the purchase agreement at closing and receive the keys to their new home.

  • 5 Questions to Ask Before Adding an Addition

    If you’re a long-time homeowner whose home just isn’t measuring up to all your needs and wants anymore, you could consider adding on to the home you love instead of abandoning it altogether.

    If you’re considering adding on to your home, congrats! But before you schedule an oh-so-gratifying demolition day, consider a few things first. Here are five questions to ask before adding on to your home:

    1. How much do I want to spend?
    Obviously, you’re not going to blindly embark on a home renovation project without considering price. But, when it comes to adding on to your home, you need to get a few estimates from the professionals who will complete the work—once you do, be sure to account for a few overages before committing to the project.

    2. Will the addition be worth it?
    Keep money in your mind, maybe we’re talking about finances here. But maybe we’re talking about your quality of life in your home. If you intend to sell your home after adding on, you need to consider the resale value and how the addition may return your investment. If you don’t intend to sell, consider how the addition may enhance your lifestyle at home.

    3. Would remodeling be a better option?
    Always wanted a home office, but never seemed to have enough rooms to give yourself the space? Don’t simply start breaking down a wall in your home to add on the office. Instead, survey your current space. Are your children off to college—or will they be soon? Could you finish your basement and create several new rooms? It may be more economical to make simpler renovations to your current home rather than adding on. Look at all possibilities before you begin major construction around your home.

    4. What regulations do I need to follow?
    Unless you live in some remote area with very few rules, it is likely that you’ll have to follow some restrictions when it comes to adding on to your home. Before you start spending and break ground on all your enhancements, contact city or county government offices to see what rules you may need to follow during the construction process.

    5. Can I afford this in the long run?
    Yes, you considered the amount you would be spending on your renovation project in the beginning. However, some home additions can tack on additional costs that last for the long run. Consider the extra costs of heating and cooling your home once you add on. Also think about an increase in your property taxes. Don’t forget to account for any extras you’re adding in too—you know, like a hot tub or additional bathroom. Those extras can add monthly expenses. Make sure you’re prepared for any extra costs your addition may bring.

    Adding on to your home is a great way to make it last. But before you break ground, you need to know that your addition is the best option for you. Ask questions about the addition up front so you don’t face any surprises during your project.