Minutes to Downtown Ocala, FL

3660 NE 64th Ave, Silver Springs

Cute, clean and close to everything! Don’t miss this 2 bedrooms, 1 bathroom home with 672 living square feet. Located across from Silver Springs State Park the location could not be better. The home sits on .24 acres with lots of privacy and surrounded by more trees than homes and people. This home includes new roof, stainless steel appliances, washer/dryer and is move in ready.

Silver Springs, Florida is most known for the beautiful Silver Springs and river that flows approx 5 miles before reaching the Ocklawaha River. Silver Springs State Park is one of Florida’s first tourist attractions, the springs drew visitors even before the U.S Civil war, Glass Bottom boat tours have been a popular way to see the 242-acre (98 ha) complex. Relax and explore the real Florida paddling in Silver Springs State Park. Spend a couple of hours paddling along the tree-shaded Fort King Waterway and discovering the springs on the Silver River. Or journey five miles from Silver Springs to Ray Wayside Park. Silver Springs community is part of the Ocala Metropolitan area. Silver Springs includes many restaurants with variety of flavors for all, shopping opportunities from big box stores to local merchants and many outdoor activities including trails, biking and more.

 

Home Design Trends

There are plenty of reasons to look forward to 2021, especially when it comes to the home. After a year that guided many of us to spend more time at home, the new year is an opportunity to bring comfort and creativity to our living spaces. From calming room ideas to stylish (and smart) approaches to home office design, we are predicting 5 of the biggest interior design trends for 2021.

Grandmillennial Grandeur

“Grandmillennial” (modern takes on granny chic) style might be a surprising trend on the surface (it’s the exact opposite of sleek, modern minimalism) – but it actually fits in well with what we’re currently craving in our homes. Cozy details a la grandma’s house, pretty florals, and elegance definitely have a place in the 2021 design landscape.

Plenty of Plants

It seems like 2020 was the year that many of us went back to the basics (hello, green thumbs) and chances are that these primal habits will continue to grow in 2021 – especially when it comes to indoor plants. Incorporating house plants into your decor can help refresh your air and brighten your mood.

Multi-Functional Spaces

This past year has made many of us rethink how we use our rooms. When spending more time at home, it makes less sense to dedicate whole rooms to just one purpose – especially in smaller spaces. With this is mind, we’re betting that we’ll see creative storage and design solutions to help dining room, living rooms, and bedrooms double up as home offices and workspaces. 

Walls on the Wild Side

When it come to interior design trends, we tend to focus a lot on what’s between our walls, but what about what’s on the walls themselves? While paint is always popular, textured, bold, and unusual finishes like floral wallpaper fabric upholstery or even a living wall can add a fresh feel to our spaces in the year to come.

Earthy Tones

You’ve probably picked up on one of the overarching themes for home decor in the year to come: a return to nature and earthy inspiration. This feeling extends to color trends, as warm, comforting color palettes (think wine reds, golden yellows, and sage greens) take precedence. 

Lake George “Sunrise Special”

9555 NE 307 Court Salt Springs, FL 32134

Did you see the sunrise picture? It is awesome and can be seen and enjoyed in person if living in this wood frame home built in 1975 that sits on .62 acres with 155′ of waterfront on Lake George. The house has central heat and air with 1140 living square feet of living space.  Includes 2 bedrooms, 2 full baths and an open floor plan with many great views of the lake from kitchen, living room, family room and bedroom. Bathroom one is cozy in size with shower/tub combo and bathroom 2 includes laundry room with shower. The 10×22 Florida room is the best room to enjoy coffee in the morning and watch the stunning sunrises or relax in the huge 20’x24′ screen room.  All kitchen appliances are included in the sale (propane, range and two year old refrigerator). HVAC with heat pump is 11 years old.  Survey and flood certificate completed 2 years ago.

Lake George is the second largest lake in Florida and is an awesome location for boating, fishing or just enjoying the beautiful lake. A short boat ride away is Salt Springs which has a swim area & boat launch, Silver Glen Springs Recreation Area, and Juniper Run. The St. Johns River is located on the North and South end of the lake and offers miles and miles of water navigation with restaurants, lodging, entertainment, adventure and sight-seeing of wading birds, osprey, eagles, manatees, occasional deer and more. 

Within distance of the Ocala National Forest, Salt Springs is also home to miles and miles of ATV/SxS, horseback and hiking trails and a public park. Great fishing is year round in the many lakes, rivers and forest ponds; and don’t forget about the excellent hunting too. Local shopping includes a grocery store, Dollar General, hardware, gas station, great restaurants, entertainment and more. You will only be a short 30 minute drive to Ocala or Palatka for all your other needs.

Don’t Miss This One!

Call, Text or Email to Schedule Your Private Showing Today!

 

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February Newsletter

It is officially February and the start to a new month!

In the February issue of our newsletter you will find events this month, featured listings, and market predictions for 2021.

Click the attachment to check it out!

Please don’t hesitate to reach out with any of your real estate needs.

February Newsletter

Quiet Country Living

12001 NE 135th Street Fort Mc Coy, FL 32134  ASKING PRICE $519,000

Entrance to the property is gated and 11+ acres of serenity greets you when driving up the private driveway to the gravel parking area in front of the home.  This is a country style 2017 custom built home with 2,710 square feet of living space, with a covered front porch including cathedral solid wood beams and 2×6″ tongue and groove ceiling.  Rocking chairs are included to enjoy the sunrise and sunset.  This home has an open floor plan, 10′ ceilings, recessed lights and lots of space for entertaining with friends and family, or just a quiet night alone. Kitchen cabinets are custom Shaker (plywood) with leathered granite countertops and a large center island with sink (all appliances are included in the sale). Living room has custom built-in bookcases and lots of windows providing tons of natural light. Main bedroom is spacious in size with full length walk-in closet and an additional storage closet. Main bathroom is huge with granite double sinks in the custom cabinets and large shower with glass enclosure and multiple shower heads/controls. Guest bedrooms are cozy in size and second bath has custom cabinets, granite tops and tiled tub/shower.  The hallway leads to a 16’x24’ bonus (play) room with mini split unit and built-in bookshelves.  Adjacent  from playroom is an  awesome home office with lots of storage, built-in safe and additional mini split unit. Laundry room is just off the kitchen and includes custom cabinets, leathered granite, washer & dryer, folding table, storage closet and a cove for your stand up freezer. Double french doors in the living room lead to 12’x24′ screened back porch with views of nature including deer, turkey, squirrels and more. The home has hardi-board siding, 2″x6″ exterior framed walls with most interior walls insulated for extra comfort and sound. 

For the outdoor person(s) there is a beautiful fire pit area with brick pavers and accent lighting. The 24’x48′ pole barn includes a metal roof and in the center is a 12’x24′ storage/workshop area with power and water in place (even a TV with Satellite hookup for relaxing (watching the game or a cooking show while you grill). Also, an additional 12’x24′ pole barn, a custom chicken coop and additional fenced area for whatever you desire. 50 amp service is close by for an RV hookup.

This home really has it all and you don’t want to miss the great location and, more important, the peace and quiet of the surroundings.

Located minutes to downtown Fort McCoy with grocery store, doctor office, pharmacy, hardware, gas station, pizza delivery and more. Close to Silver Springs which is great for kayaking, boating and outdoor activities. Ocala is just another 20 minutes away with Walmart, Lowes, Bealls, Outback and many more of your favorite shopping and  restaurants. Gainesville(Home of Florida Gators) is only 50 minutes to downtown. If you’re a fisherman, hunter or simply love hiking, canoeing or kayaking you are in luck! Minutes to Ocklawaha River, Rodman Reservoir boat ramp, Ocala National Forest and many natural springs(Salt Springs, Silver Glen Springs, Juniper Springs), horseback and walking trails, and off road vehicle trails awaits your explorations. One of a kind property and location! Ready for new owners! 

Listing Price: $519,000

Acreage: 11.66+/-

3 Bedrooms /2 Bathrooms

2710 Living Square Feet

24’x48′ Pole Barn

12’x24′ Pole Barn 

 

 

What’s Ahead for Real Estate?

In 2020, the housing market seemed continually flush with buyers as sellers became ever more scarce. Buyers, enticed by record-low mortgage rates, sought out new homes in droves, creating a rapid-pace market for real estate agents across the country.

More than 1,000 HomeLight agents recently surveyed by the referral platform expressed optimism about a hot market in the year ahead but noted that low inventory, and other factors, will continue to be a struggle.

Between Nov. 9-23, 2020, HomeLight conducted its Q4 survey via an online poll of its top affiliated agents across the U.S. who were selected based on performance data like transactions and reviews, which the company uses to select agents for buyers and sellers who use the platform. Here’s what those agents had to report.

Factors impacting the market in 2021

In November, the National Association of Realtors (NAR) reported that inventory was down 22 percent year over year. Twenty percent of HomeLight agents surveyed said that low inventory would likely make the greatest impact on the market in 2021, as mortgage rates continue to dip even further.

However, 50 percent of agents surveyed stated that the rollout of COVID-19 vaccines could change the inventory problem for the better, noting it might give sellers the confidence they need to enter the market again, especially if more businesses ease restrictions.

As more companies continue to adopt or solidify remote work options for employees in the wake of the pandemic, top HomeLight agents said in the survey that such maneuvers will continue to impact migration trends into 2021.

Across all HomeLight agents surveyed, 14.5 percent said working-from-home trends would have the greatest impact on the market in the new year, while nearly 20 percent of HomeLight agents on the West Coast and about 16 percent of agents in the Northeast stated the same. In the South Central region, however, only about 8 percent of HomeLight agents said remote work would impact real estate the most in 2021.

Top HomeLight agents also feel that the start of the Biden administration’s term in office may provide a boost to real estate with its housing proposals. A 55 percent majority of HomeLight agents expressed their support for Biden’s $15,000 tax credit for first-time homebuyers, and 11 percent of surveyed agents noted that finding an affordable home will be the biggest hurdle for buyers in 2021.

Home renovation trends

As clients continue to stay at home well into 2021, HomeLight agents noted that they’re thinking about upgrading their home environment, including their kitchen, bath and outdoor spaces.

In the kitchen, most agents say their clients want a kitchen island upgrade most (64 percent of agents), followed by a walk-in pantry (62 percent) and ample cabinet or drawer storage (57 percent). Meanwhile, in the bathroom, most agents say their clients want to upgrade to a double vanity sink (65 percent), followed by a rainshower head (39 percent) or dual shower head (37 percent).

Outside, clients are craving fire pits (54 percent of agents said said this is a client’s priority outdoor amenity), privacy from hedges or a fence (48 percent of agents say this is a client priority), and a full outdoor kitchen (46 percent of agents say is a priority).

HomeLight agents also found that potential buyers are expressing clear distaste for specific outdated home features like carpet in the bathroom (72.6 percent), popcorn ceilings (65.9 percent) and shag carpeting (62 percent). 

However, homeowners who have sought to make upgrades in recent months have faced significant supply shortages and rising prices as a result of the pandemic. Lumber prices have skyrocketed by 150 percent since mid-April 2020, according to the National Association of Homebuilders. Fifty-three percent of HomeLight agents surveyed also reported labor shortages in their market, 51 percent noted appliance shortages, and 30 percent said there have been shortages of windows and doors.

In light of increased client urges to work on their homes during quarantine, 51 percent of HomeLight agents said homeowners should refrain from personalizing home materials too much, 38 percent of agents warned against using up savings during national uncertainty, and 36 percent said homeowners should be wary of paying a premium during this time for materials or labor.

Impact of business closures

The commerce options in a neighborhood often have a significant impact on the area’s attractiveness and home values. But the pandemic has thrown many businesses into a state of uncertainty with 163,735 total U.S. businesses having closed temporarily or permanently as of August 2020, according to Yelp’s Local Economic Impact Report. About 19,590 restaurant closures that have happened since the start of the pandemic are likely permanent ones.

Nearly half of HomeLight agents surveyed said that business closures have redirected interest from once-bustling neighborhoods elsewhere, like suburbs, exurbs or smaller cities. In particular, 49 percent of agents surveyed said that restaurant closures have had the most negative effect on neighborhood demand.

The rise of second homes

As homeowners have sought to find ways to keep life at home interesting, many are turning to second homes, and likewise, transitioning vacation homes into work-from-home properties.

A whopping 81 percent of HomeLight agents surveyed said they’ve seen an increased interest in second homes in their market. Furthermore, 41 percent have seen a rise in clients selling their primary residence and living in their secondary residence full time.

With remote work becoming the new norm, 49.6 percent of survey respondents said the primary factor driving demand for second homes is the ability to work in a warmer climate. But not far behind that factor are the ability to own a second home while traveling is a less safe option (49.4 percent) and the ability to latch on to low mortgage rates (47.5 percent).

Buyers shopping for second homes now are mostly looking for warm weather, affordability and the potential to earn rental income.

The future is endless for real estate. Rountree Realty is always happy to go over any part of the process and answer any questions you may have. Don’t hesitate to reach out. We thank you for your continuous support.

January Newsletter

It is officially January and the start to a new year! 

In the January issue of our monthly newsletter you will find events during this month, featured listings, and market predictions.

Click the attachment below to check it out.

Please don’t hesitate to reach out with any of your real estate needs.

January Newsletter

Make an Offer

You’ve found the home that you can see yourself doing life in. Now it’s time to make an offer! Let’s go over how this process works.

#1 Know Your Limits

Your agent will help you craft a winning offer. You can trust your agent’s advice on price, contingencies, and other terms of the deal: It’s a mutually beneficial relationship. The more collaborative you are with your agent, the more quickly you’ll be able to move.

But ultimately, it’s you who decides what the offer will be — and you who knows what your financial and lifestyle limits are. Buying a home means mixing strong emotions with business savvy, so now is also a good time to reflect on your “musts.”

  • Have a top limit to your offer price because you’re also saving for retirement and love beach vacations? Stick to it. 
  • Want a vegetable garden or to paint your home’s exterior purple? Make sure your homeowners association rules permit it. 
  • Besides reading HOA rules, find out how much the HOA has in reserves to cover common area repairs. You don’t want to be slapped unexpectedly with a special assessment. 
  • Want a dog-friendly community? Make sure there are no pet weight limits preventing you from cohabitating with your (extra-large) canine bestie.

#2 Learn to Speak “Contract”

Essentially, an offer is a contract. The documents and wording vary across the country.

In the spirit of due diligence, take time to review sample offer forms before you’ve found a house (LawDepot.com has purchase agreements for each state). If you’re high-maintenance, a real estate attorney can explain the documents to you so you’re familiar with their vocabulary when you’re ready to pull the trigger on an offer with your agent. Your agent will have offer forms for your state. 

#3 Set Your Price

Homes always have a listing price. Think of it as the seller’s opening bid in your negotiation to buy a home.

As the buyer, your offer will include an offer price. This is the first thing home sellers look at when they receive a bid.

Your agent will help you determine whether the seller’s listing price is fair by running comps (or comparables), a process that involves comparing the house you’re bidding on to similar properties that recently sold in the neighborhood.

Several factors can also affect your bargaining position and offer price. For example, if the home has been sitting on the market for a while, or you’re in a buyer’s market where supply exceeds demand, the seller may be willing to accept an offer that’s below the list price. Or if the seller has already received another offer on the home, that may impact the price you’re willing to offer. Your agent will help you understand the context here.

#4 Figure Out Your Down Payment

To get a mortgage, you have to make a down payment on your loan. For conventional loans (as opposed to government loans), making a 20% down payment enables borrowers to avoid having to pay private mortgage insurance (PMI), a monthly premium that protects the lender in case the borrower defaults on the loan.

But 20% isn’t always feasible — or even necessary. In fact, the median down payment in 2019 for buyers overall was 16 percent, and 6 percent for first-time buyers, according to the National Association of REALTORS®. Your lender will help you determine what the best down payment amount is for your finances. Depending on the type of loan you get, you may even be able to put down as little as 0% on your mortgage.

You might qualify for one of the more than 2,400 down payment assistance programs nationwide. Many of them make funds available to households earning as much as 175% of area median income. In other words, middle-income households. And the savings can be substantial: Home buyers who use down payment assistance programs save an average of $17,766 over the life of their loan, according to real estate resource RealtyTrac. Find out more about down payment assistance programs in your state.

You can use an online mortgage calculator to see how different down payments would affect your mortgage premiums and how much you’ll pay in interest.

#5 Show the Seller You’re Serious: Make a Deposit

An EMD — short for earnest money deposit — is the sum of money you put down as evidence to the seller that you’re serious (read: earnest) about buying the house. If the seller accepts your offer, the earnest money will go toward your down payment at closing. However, if you try to back out of the deal, you might have to forfeit the cash to the seller.

A standard EMD is 1% to 3% of the sales price of the home (so, that would be $2,000 to $6,000 on a $200,000 loan). But depending on how hot the market is where you live, you may want to put down more earnest money to compete with other offers. 

In most cases, the title company is responsible for holding the earnest money in an escrow account. In the event the deal falls through, the title company will disperse the funds appropriately based on the terms of the sales contract. Title companies also check for defects or liens on a seller’s title to make sure it can be transferred cleanly to you.

#6 Review the Contingency Plans

Most real estate offers include contingencies — provisions that must be met before the transaction can go through, or the buyer is entitled to walk away from the deal with their EMD.

For example, if an offer says, “This contract is contingent upon a home inspection,” the buyer has a set number of days after the offer is accepted to do an inspection of the property with a licensed or certified home inspector.

If something is wrong with the house, the buyer can request the seller to make repairs. But most repairs are negotiable; the seller may agree to some, but say no to others. Or the seller can offer a price reduction, or a credit at closing, based on the cost of the repairs. This is where your real estate agent can offer real value and counsel on what you should ask the seller to fix.

Just remember to keep your eye on the big picture. If you and the seller are bickering over a $500 repair to the hardwood floors, keep in mind that’s a drop in the bucket in relation to the size of the bid.

In addition to the aforementioned home inspection contingency, other common contingencies include:

  • A financing contingency, which gives home buyers a specified amount of time to get a loan that will cover the mortgage.
  • An appraisal contingency, where a third-party appraiser hired by the lender evaluates the fair-market value of the home to ensure the home is worth enough money to serve as collateral for the value of the mortgage.
  • A clear title contingency, where the buyer’s title company verifies that the seller is the sole owner of the property and can legally convey ownership to the buyer.
  • A home sale contingency, where the transaction is dependent on the sale of the buyer’s current home.

Although contingencies can offer protection to buyers, they can also make offers less appealing to the seller because they give buyers legal ways to back out of the sale without any financial repercussions. So, if you’re going up against multiple offers, making an offer with fewer contingencies can potentially give you an edge over the competition.

In other words: A chill offer is an attractive offer. But keep in mind you have to be comfortable with the risks that come with this strategy. If you don’t have a financing contingency, for example, and you can’t get a mortgage, you’d likely lose your earnest money deposit since you’re on the hook. (An outcome that’s decidedly un-chill for you.)

#7 Read the Fine Print About the Property

The sales contract states key information about the property, such as the address, tax ID, and the types of utilities: public water or private well, gas or electric heating, and so on. It also includes a section that specifies what personal property and fixtures the seller agrees to leave behind, like appliances, lighting fixtures, and window shades. The seller provides prospective buyers with a list of these items before they submit an offer. This can be another area of negotiation.

Carefully reviewing the property description also helps you know, for example, if the seller plans to take that unattached kitchen island with them when they move. (Stranger things have happened.)

#8 Make a Date to Settle

The sales contract you submit to the seller must include a proposed settlement date, which confirms when the transaction will be finalized. The clock starts as soon as the purchase agreement is signed. If you don’t close on time, the party that’s responsible for the delay may have to pay the other party compensation in the form of “penalty interest” at a predetermined rate.

A 30- to 60-day settlement period is common because it gives the typical home buyer time to complete a title search and obtain mortgage approval, but settlement periods can vary. Some sellers, for example, prefer a longer period so they have more time to move or look for their next house. Being flexible, with respect to the closing date, could give you more negotiating power in another area of the deal.

One thing that’s the same no matter where you live is that you’ll have a three-day period prior to settlement to review the Closing Disclosure, or CD — a five-page form that states your final loan terms and closing costs.

Once the sales contract is signed, the parties can change the settlement date if they both sign an addendum specifying the new day.

#9 Write a Fan Letter to the Seller

Want to make a truly compelling offer? Pull on the seller’s heartstrings by attaching a personal letter to the bid documents. Tell a compelling story about your family and your connection to the area. Get deep about your roots.

Also, sincere flattery can go a long way. Compliment the seller on how their kitchen renovation looks Apartment Therapy–worthy, for instance, or how the succulents in their landscaping remind you of a resort in Palm Springs.

Your agent can help you gather background on the sellers (e.g., are they crazy about their labradoodle, like you are about yours? Did they run a small business from the home, like you dream of doing?). And you should — of course — refer to information you gleaned during the open house or private showing. Use this intel to write a message that really speaks to the seller, and it may very well seal the deal.

#10 Brace Yourself for a Counteroffer

If you’re making a lowball bid or going up against multiple offers, the seller may decide to make you a counteroffer — a purchase agreement with new terms, such as a higher sales price or fewer contingencies.

At that point, it’s up to you to accept the new contract, make your own counteroffer to the sellers, or walk away.

Don’t panic.. Next week we’ll walk you through the counteroffer process and offer strategies to give you more negotiating power!

Hey, Buyers: These Home Appraisal Tips Are for You

Most people have deeply personal reasons for wanting to buy a home. Maybe it’s the bathroom that feels like a dreamy, modern spa. Or that two-tiered deck just made for parties.

Your lender doesn’t care about the freestanding tub. Or the built-in outdoor fire pit. Their only concern is that the house you buy is worth as much as the value of your mortgage.

To them, a house isn’t a home. It’s collateral. (Harsh, but true.) If someday, for some reason, you can’t make your mortgage payments, the lender can foreclose on the home and sell it to recoup all or some of its costs. (Even harsher, but also true.)

For that reason, a home must be valued at, or above, the agreed-upon purchase price, and this has to happen before you can close on a house. That’s where a home appraiser comes in. 

A Home Appraiser Is Neutral (Like Switzerland)

After you sign a home purchase agreement (the contract between you and the seller about the terms of the pending sale), and before your lender approves your loan, the home you’re buying must pass an appraisal — an assessment of the property’s value by an unbiased third party: the appraiser.

An appraiser is a state-licensed or -certified professional. Their job is to assess an opinion of value — how much a house is worth. The appraiser is on no one’s side. They don’t represent you or the seller; instead, this person is a contractor chosen by your lender through an appraisal management company (AMC), a separate, neutral entity that maintains a roster of appraisers.

Appraisers survey a house in person, using five main criteria to determine the value of a home:

  • Location
  • Age
  • Condition
  • Additions or renovations
  • Recent sales of comparable homes

Be Prepared to Pay for the Appraisal — or to Negotiate

Generally speaking, the home buyer is responsible for paying for the appraisal — and the fee is typically wrapped into your closing costs. However, who pays for appraisal is negotiable. It never hurts to see if the seller is willing to cover it.

How much money are we talking about? The average professional home appraisal will run between $287 and $373, according to estimates by the home-professionals resource HomeAdvisor.com. Costs can vary depending on the square footage and quirks of the house, with higher appraisal prices for larger or more unique homes.

Appraisals Take a While, So Be Patient

Typically, a purchase agreement has a “home appraisal contingency” requiring that the appraisal be completed within 14 days of the sales contract being signed. Because it takes appraisers some time to visit your house and write a report — up to a week, or longer in a busy housing market — your lender will order the appraisal immediately after you sign the purchase agreement.

So, You Have a Valuation. Here’s What It Means — and What to Do Next

When the appraisal is finished, the appraiser issues a written report with his or her opinion of the value of the home. To produce the report, they use their analysis of the property and data from comparable homes, as well as review the purchase offer. The report will outline their methodology and also include photographs that they’ve taken of the property, inside and out.

You and your lender will both receive a copy of the report. Three things could happen next: 

  1. If the appraiser’s valuation matches the price you and the seller agreed to for the home: Your lender will proceed to underwrite your loan. Great news: This is the final step in your loan-getting process!
  2. If the appraiser’s valuation is higher than what you’re paying for the home:Congratulations! You’ve gained immediate equity. How, you ask? Let’s say, for example, you’re paying $200,000 for the house. If the appraiser says it’s worth $250,000 — jackpot. That’s an instant $50,000 in equity. (Keep in mind, this is very rare.)
  3. If the appraisal is lower than what you’ve agreed to pay for the home: Your lender won’t give you a loan for more than the appraised value. If you and the seller agreed on $200,000, for example, but the appraisal is $190,000, that creates a $10,000 shortfall. So what happens next?

Don’t despair — not yet. If you’re faced with a low appraisal, there are several ways the deal can still go through.

If an Appraisal Is Low, You Can Still Make It Work

Before we talk strategy, some reasons why appraisals come in lower than expected:

  • The seller overvalued the price of the home. 
  • The appraiser isn’t familiar with the neighborhood.
  • The appraiser overlooked pending sales data.
  • The appraiser had trouble finding comparable homes, or missed comparable homes, so they compared your home with properties outside the neighborhood.
  • Home prices in the area are changing so fast that the listing agent’s price no longer reflects the market.
  • The appraiser rushed the job.

If the appraisal comes in low, your agent will offer recommendations about how to proceed. In general, your best strategy is to persuade the seller to lower the sales price, or to split the difference between the home’s appraised value and the price with you. This is when you can rely on your agent — and their negotiating skills — to go to bat for you.

You can also appeal the appraisal assessment. You’ll work with your agent to research comparable homes that support the sales price you agreed upon with the seller and present this information to your lender, who will forward it to the appraiser for a re-evaluation of the home’s value. Ultimately, though, it’s up to the appraiser to decide whether to revise their valuation of the property.

Alternately, you can ask your lender for a second appraisal, though there are caveats:

  • You’ll have to pay for it out of pocket (or persuade the seller to foot the bill).
  • You’re more likely able to challenge an appraisal for a conventional loan than a government loan. And you’d need solid facts to back it up in either case.
  • There’s no guarantee that it will be higher and meet the sales price.

The last option: You can come up with the cash yourself to cover the difference between the home’s price and the appraised value. 

If you don’t want to take that route (and who could blame you?), a purchase agreement’s home appraisal contingency gives you the ability to walk away from the deal scot-free, and with your earnest money deposit in hand.

Let’s assume it all works out. With the appraisal behind you, you’ll be one step closer to closing on that house.

What to Expect During a Home Inspection

You’ll go through many emotions while having a home inspection conducted. Excitement for hopefully buying/selling your home, nervous that something will be wrong, or feeling your patience thinning out as you wonder how long this process will take. However, a home inspection is an important part of the home buying/selling process, so we’re going to go through it with you.

A Home Inspector Is Your Protector

An inspector helps you make sure a house isn’t hiding anything before you commit for the long haul. (Think about it this way: You wouldn’t even get coffee with a stranger without checking out their history.)

A home inspector identifies any reasonably discoverable problems with the house (a leaky roof, faulty plumbing, etc.). Hiring an inspector is you doing your due diligence. To find a good one (more on how to do that soon), it helps to have an understanding of what the typical home inspection entails. 

An inspection is all about lists. 

Before an inspection, the home inspector will review the seller’s property disclosure statement. (Each state has its own requirements for what sellers must disclose on these forms; some have stronger requirements than others.) The statement lists any flaws the seller is aware of that could negatively affect the home’s value. 

The disclosure comes in the form of an outline, covering such things as:

  • Mold 
  • Pest infestation
  • Roof leaks
  • Foundation damage
  • Other problems, depending on what your state mandates.

During the inspection, an inspector has three tasks — to:

  1. Identify problems with the house that he or she can see
  2. Suggest fixes
  3. Prepare a written report, usually with photos, noting observed defects

This report is critical to you and your agent — it’s what you’ll use to request repairs from the seller. (We’ll get into how you’ll do that in a minute, too.)

The Inspector Won’t Check Everything

Generally, inspectors only examine houses for problems that can be seen with the naked eye. They won’t be tearing down walls or using magical X-ray vision, to find hidden faults.

Inspectors also won’t put themselves in danger. If a roof is too high or steep, for example, they won’t climb up to check for missing or damaged shingles. They’ll use binoculars to examine it instead.

They can’t predict the future, either. While an inspector can give you a rough idea of how many more years that roof will hold up, he or she can’t tell you exactly when it will need to be replaced.

Finally, home inspectors are often generalists. A basic inspection doesn’t routinely include a thorough evaluation of:

  • Swimming pools
  • Wells
  • Septic systems
  • Structural engineering work
  • The ground beneath a home
  • Fireplaces and chimneys

It’s Your Job to Check the Inspector

Now you’re ready to connect with someone who’s a pro at doing all of the above. Here’s where — once again — your real estate agent has your back. He or she can recommend reputable home inspectors to you.

In addition to getting recommendations (friends and relatives are handy for those, too), you can look for professional inspectors at their trade association websites. The American Society of Home Inspectors’ (ASHI) Find a Home Inspector tool lets you search by address, metro area, or neighborhood. You can also search for inspectors by state at InterNACHI.

You’ll want to interview at least three inspectors before deciding whom to hire. During each chat, ask questions such as:

  • Are you licensed or certified? Inspector certifications vary, based on where you live. Not every state requires home inspectors to be licensed, and licenses can indicate different degrees of expertise. ASHI lists each state’s requirements here. 
  • How long have you been in the business? Look for someone with at least five years of experience — it indicates more homes inspected.
  • How much do you charge? Home inspection costs range from $260 to $399. The costs vary according to your location and the size of your house.
  • What do you check, exactly? Know what you’re getting for your money.
  • What don’t you check, specifically? Some home inspectors are more thorough than others.
  • How soon after the inspection will I receive my report? Home inspection contingencies require you to complete the inspection within a certain period of time after the offer is accepted — normally five to seven days — so you’re on a set timetable. A good home inspector will provide you with the report within 24 hours after the inspection.
  • May I see a sample report? This will help you gauge how detailed the inspector is and how he or she explains problems.

Sometimes you can find online reviews of inspectors on sites like Angie’s List and Yelp, too, if past clients’ feedback is helpful in making your decision.

Show Up for Inspection (and Bring Your Agent)

It’s inspection day, and the honor of your — and your agent’s — presence is not required, but highly recommended. Even though you’ll receive a report summarizing the findings later on, being there gives you a chance to ask questions, and to learn the inner workings of the home.

Block out two to three hours for the inspection. The inspector will survey the property from top to bottom. This includes checking water pressure; leaks in the attic, plumbing, etc.; if door and window frames are straight (if not, it could be a sign of a structural issue); if electrical wiring is up to code; if smoke and carbon monoxide detectors are working; if appliances work properly. Outside, he or she will look at things like siding, fencing, and drainage.

The inspector might also be able to check for termites, asbestos, lead paint, or radon. Because these tests involve more legwork and can require special certification, they come at an additional charge.

Get Ready to Negotiate

Once you receive the inspector’s report, review it with your agent.

Legally, sellers are required to make certain repairs. These can vary depending on location. Most sales contracts require the seller to fix: 

  • Structural defects
  • Building code violations
  • Safety issues

Most home repairs, however, are negotiable. Be prepared to pick your battles: Minor issues, like a cracked switchplate or loose kitchen faucet, are easy and cheap to fix on your own. You don’t want to start nickel-and-diming the seller. 

If there are major issues with the house, your agent can submit a formal request for repairs that includes a copy of the inspection report. Repair requests should be as specific as possible. For instance: Instead of saying “repair broken windows,” a request should say “replace broken window glass in master bathroom.”

  • If the seller agrees to make all of your repair requests: He or she must provide you with invoices from a licensed contractor stating that the repairs were made. Then it’s full steam ahead toward the sale.
  • If the seller responds to your repair requests with a counteroffer: He or she will state which repairs (or credits at closing) he or she is willing to make. The ball is in your court to either agree, counter the seller’s counteroffer, or void the transaction.

At the end of the day, remember to check in with yourself to see how you’re feeling about all of this. You need to be realistic about how much repair work you’d be taking on. At this point in the sale, there’s a lot of pressure from all parties to move into the close. But if you don’t feel comfortable, speak up.

The most important things to remember during the home inspection? Trust your inspector, trust your gut, and lean on your agent — they likely have a lot of experience to support your decision-making.

That’s something to feel good about.