Home Inspection 101

BY JULIE WYSS · DEADLINENEWS.COM © DECEMBER 16, 2012
BUY | SELL · TAGGED: HOME BUYER, HOME INSPECTION, HOME SELLER · NO COMMENTS

You’ve found the home of your dreams and your agent prepares the purchase offer with the standard contingency – “upon Inspection.”

You gave the house the once over, but did you look in the attic space? The crawl space? Did you check to see if the appliances work properly? Did you check to see if the sprinkler system works.

Chances are the answer is “no” to all those questions.

This is a job for a home inspector.

Home inspector is the expert

A home inspection is an independent, unbiased review and report on a home’s primary systems, components and conditions. The inspector’s job is to discover and document visible problems that may have been overlooked by a real estate agent, the buyer or the seller.

An inspector does not appraise the property, make buying recommendations, recommend approaches to building code compliance, guarantee the structural viability of the property or find hidden defects.

What will the inspector inspect?

A complete inspection includes a visual examination of the building from top to bottom. Only items that are visible and accessible by normal means are are examined and included in the final report.

The inspector evaluates and reports the condition of the structure, roof, foundation, drainage, plumbing, heating system, central air-conditioning system, visible insulation, walls, windows, and doors.

The information is detailed in a written inspection report.

What about inspection report problems ?

If the inspector finds problems, that does not necessarily mean you shouldn’t buy it, only that you will know in advance what type of repairs or upgrades to anticipate.

The inspection report is a tool to help you make an informed decision about buying the property – or not.

The choice is yours.

A seller may be willing to repair significant problems the inspector discovers or even upgrade or improve aspects of the property to more contemporary conditions in order to make the home more saleable.

The buyer can negotiate for a lower price or other concessions, if there are problems that need correcting and the seller doesn’t want to take time or make the effort to get the work done.

If your budget is tight, or if you do not wish to become involved in repair work, you can choose not to buy the property.

If you do negotiate repairs, always set deadlines and put everything in writing with the appropriate terms, signatures and dates.

Finding a home inspector

Talk to your real estate agent, friends, family or others you trust who recently purchased a home and used an inspector they are willing to recommend.

Also check with professional associations including the California Real Estate Inspection Association (CREIA) and the (ASHI) American Society of Home Inspectors.

Sellers can choose to hire their own inspector to learn the condition of the home, but the buyer can choose his or her own inspector.

Interview several candidates. Verify their license, when applicable, and ask about their experience, education, and any professional certifications.

Be sure the inspector you hire can meet all contractual deadlines included in your sales contract.

The contract typically specifies a certain period within which the inspection must be complete, as well as a period for you to review and approve the inspection.

Click here for a virtual home inspection.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

Julie@JulieWyss.com  |  www.JulieWyss.com   |  408.687.2026

Is it a buyer’s market, seller’s market or neutral?

by Julie Wyss, Broker Associate

Originally published at DeadlineNews.com on August 1, 2012.

If you are considering buying or selling a home in Silicon Valley, you are likely trying to take the pulse of the housing market to determine if this is the right time to make a move.

Even the most savvy investor can find the timing aspect of buying or selling daunting and timing can be a stressful ordeal after watching so many friends and family members stuck with mortgages that are larger than their homes are worth.

Here’s a quick formula to help you zero on the right time to buy, sell or stay put.

The calculations can be used in any sized market, by ZIP Code, by city or by county.

Calculating market conditions

• Buyer’s Market – There is more than a six-month supply of homes for sale. The market is loose. This puts the buyer in a better negotiating position, making it a great time to buy.

• Seller’s Market – There is less than a three-month supply of homes for sale. The market is tight. This puts the seller in a better negotiating position, making it a great time to sell.

• Neutral Market – There is a three- to six-month supply of homes for sale. This puts the buyer and seller on a relatively equal negotiating footing. The seller has an edge as supplies move nearer to three-month supply. The buyer calls more of the shots when supplies tip toward the six-month supply level.

In your area, calculate the supply of homes for sale by dividing the number of homes for sale by the number of homes sold in a given month.

Additional factors also can tip the scales one way or the other, including economic distress or growth, levels of appreciation, falling or rising prices and an imbalance between buyers and sellers.

Sellers rule

• It’s a solid seller’s market. Absolutely. All-cash buyers have snatched up a large chunk of lower priced properties. Distressed properties are down. And many equity-poor homeowners are waiting, 

hoping that prices will come up more so they can squeeze another $50,000 or so out before they list.

• It’s not a buyer’s market. Record low interest rates along isn’t enough to give them an edge in terms of a stronger negotiating edge. Inventories are also near record lows so buyers face stiff competition from multiple offers as they struggle to find the right property.

• Affordability is being offset by low inventories and that’s keeping the market out of neutral territory.

Still a good time to buy

As is often the case, Silicon Valley’s market experienced a swift transition from the buyer’s market of last year to the current seller’s market. That’s because home buyers and sellers typically move in unison – on or off the market – as soon as they see the market moving in and against their favor. That makes the neutral market the most fleeting of the three.

In a seller’s market as tough as this one, even well-trained professionals are left scratching their heads trying to get an offer accepted.

Prices are rising, record-low interest rates are sending buyers to market. It’s a great time to sell compared to a year ago.

With prices still affordable, it’s also an amazing time for existing homeowners to buy up and move to a bigger and better home.

If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.

Julie@JulieWyss.com  |  www.JulieWyss.com  |  408.687.2026

Is it time to move up in Silicon Valley?

BY JULIE WYSS  Originally published in the DEADLINENEWS.COM © JUNE 5, 2012 

 Those who have money to buy have been sitting tight for the past half decade.

Suddenly, everyone wants to buy real estate – first-time home buyers, investors, move-up, even move-down buyers.

What happened?

In the past four months inventories have fallen hard and prices have increased by $20,000 to as much as $100,000 on select properties. The bottom may have come and gone. It feels like recovery.

Silicon Valley bidding wars have erupted on everything from the worst distressed properties that attract all cash buyers because lenders won’t finance their sale, to $2 million homes in Cupertino, Los Gatos, Palo Alto and affluent areas with a tech worker-based populace.

Many local markets have become much more seller friendly.

Asked one buyer from Germany, “Why did the market move so quickly?”

Interest rates are at record lows. Prices have stopped falling. The Euro Zone troubles are prompting investors from abroad to buy U.S. There is no one specific answer.

I’m exposed to all of the global and local information available to real estate professionals and the best answer I have heard is “The herd has moved.”

Herd moving uphill

One of the fastest growing trends is move-up buys.

Home owners have been “sucking it up” and staying put, even through they have great jobs, tenure and steady pay increases. Now with this market surge, they are getting off the fence, selling mid-range homes, valued at $600,000 to $800,000 and buying up in the higher price range of $1 million to $1.5 million.

They are moving into long sought-after neighborhoods including, Los Gatos, Cupertino, Saratoga, Los Altos and Palo Alto.

They are married couples in their late 40′s and realize that life is too short to wait much longer and they really can afford their dream home.

I recently sold a Cambrian, San Jose neighborhood home that had appraised at about $700,000 a year ago. Concerned about over-pricing that could have killed a deal last year, we conservatively priced it at $760,000. It sold for more than $800,000.

The sellers, in turn, acted fast and found a great home in Las Gatos for less than $1.5 million – an entry level property for this affluent city.

Move-up financing

What kind of financing is attractive and available? It depends on the buyer. Do they hold shares of one of the hot fledgling tech companies and anticipate bonuses? Or are they on a fixed income?

One strategy is to get a conforming loan of $625,500 at a low, fixed interest rate under 4 percent and a second loan (Yes, they are back.) for $500,000 with an interest rate of 4.25 percent. For the down payment you’ll have to have to use the equity in the old home you just sold.

There are also amazing jumbo loans for a full $1 million available for low interest rates and 5- 7- and 10-year hybrid adjustable rate mortgages are back.

This is a fantastic time to move up.

Life is short.

Read this article on Deadline News by clicking here. 

408.687.2026   |   julie@juliewyss.com   |   www.juliewyss.com   

Silicon Valley Home Buyers: ‘Bigger ain’t necessarily better, baby’

by Julie Wyss, Broker Associate Article originally published in DeadlineNews.com Mar. 2, 2012 From young, qualified first-time home buyers to 50-and-olders, moving, up, over or down, a new breed of buyer is descending upon the Silicon Valley housing market. They’ve worked hard to save, they have solid jobs and they are qualified to buy big. But offer them what they can really afford and they’ll give you the thumbs down. They are the new financial conservatives. They’d rather not be house poor. They can afford much more, but they want less — less square footage, a smaller energy bill, fewer cleaning and maintenance headaches, but most importantly, less to pay out on the monthly mortgage. They want a simpler, smaller American Dream. It’s all about the “more” that comes with the “less.” A smaller, less expensive home means more financial freedom in terms of more cash to save, more discretionary income to spend on nights out or travels away. A smaller home also means a smaller maintenance noose around your neck. “Since new home prices peaked in 2007, new single-family sales of homes costing more than $500,000 have been more than cut in half, dropping from 13 percent to just 6 percent of all new home transactions,” said Rick Palacios Jr., senior research analysis of John Burns Real Estate Consulting. “During this time, sales of home for under $200,000 have risen from 33 percent to 42 percent of transactions (nationwide). In fact, sales of homes priced under $300,000 now account for roughly 75 percent of all new single-family transactions. Of course, price declines and a shift to smaller homes played a role in this change, but consumer attitudes have shifted too. Our surveys and our consulting work show that today’s buyer is frequently very focused on affordability, and this broad macro theme will continue to play itself out in the new home space during 2012,” Palacios added. A young couple in Silicon Valley with a combined income of $150,000 and top-notch credit can qualify for a mortgage with an debt-to-income ratio of up to 50 percent and their friends may be impressed, but the deal comes with a massive forever-property-tax-bill, uber cleaning and maintenance costs and yard upkeep from hell, not to mention massive energy bills. Home buyers are wisely saying “no thanks” to that. “We don’t want house poor. We’d rather have extra money to enjoy life, travel, eat out and save a few bucks.” That’s a decided change from boom times when buyers wanted the biggest, baddest, most expensive home money could buy. It’s a lot like the change from the old fitness regimen of bulk and brawn to one of a more svelte approach for endurance. Today’s economy demands a meaner, leaner bucks and brains for long-term homeownership.   If you have a need for a real estate professional, please contact me. I would also appreciate your vote of confidence by passing my name to anyone you may know who would benefit from my services.   Julie Wyss, Broker Associate Top Producing Individual Agent, Intero Los Gatos Top 1% Santa Clara County Realtors 408.687.2026 |  Julie@JulieWyss.com | www.JulieWyss.com