Purchasing real estate is a big move for most people. Most buyers are slammed fast with all the to do’s by Realtors, Title Companies, and Lenders. The process is works best when spread out over the first 15 to 20 days to reach that closing time frame of under 30 days.
Can the process be completed in under 15 days and closed? There is that possibility and in fact it does happen more than you would think, especially when everyone is on top of their game including the buyer.
Most home purchases include these following standard inspections:
• Standard home inspection
• Pest or termite inspection
• Title search including municipal
Other extended or specific inspection may include but not limited to:
• 4-point home inspection
• Wind Mitigation Report
• Flood Elevation
• Engineering Certification
• Lead Base Paint
• Radon Gas
• Well inspection and water testing, including lead, bacteria, and nitrates
• Pool and Pool Equipment
• Hazard and Environment (general when in close proximity of an industrial park or commercial property or cemetery)
With all these inspections to consider or to do, it may be hard to truly figure what is actually required or which ones you should do. If you were to do all of the above, the cost could easily exceed $5,000. The fact is none of them are required. Yes, I said that! Here is the skinny on all of this. If you pay cash for the property you are not required to do any of the above.
However, here is where the problems start, do you really know what you are buying? Spending a few hundred thousand of your hard-earned money on a home with major title issues or one that is infested with termites could be devastating to your investment.
Many times, over the past years I have had people who have come to me for guidance and help, but only after the fact. People who thought they were getting a good deal and felt they had to act fast and pay cash for a home before someone else grabbed it, only to find out after closing on the property it had major hidden defects.
One home as bought from a foreign national, who told the buyer that he was not going to be returning to the USA and that he had paid cash for the home. It turned out the home had three private mortgages on it totaling over $90,000.
I had one retired real estate broker acting like a big shot stating he sold so many homes over the years that he could take just one look at a home and knew everything about it. After closing on a home upon which he never did a home inspection on, he found out the hard way that the seller had just painted over the mold on the walls. The mold was caused from a broken water pipe that was still broken and still pumping water into the master bedroom and living rooms. This cost him over $20,000 in repairs.
Many times, buyers spend hundreds of dollars on inspections that sometimes kills the deal. Buyers get so upset thinking about the hundreds of dollars which they feel they have just wasted and all that time spent on that one home that they didn’t buy.
What they often don’t realize without doing their proper due diligence with the right inspections they could actually lose tens of thousands of dollars on a bad purchase.
Lenders want appraisals completed on homes. The appraisal not only gives a good opinion of value and condition for the lender to gage their risk, it also helps the buyer ensure they are not over paying for the property.
Real Estate Attorneys or Title Companies wanted to ensure you’re getting a clean title to the home as well as protecting their interest and risk with the title insurance policy they will issue to you and the lender.
Take your time, don’t force or rush your purchase, ask questions, get your facts and we will see you at a happy closing table.