What To Ask Your Home Inspector

If you have not bought a home recently, you may not familiar with todays's home-inspection process. Here are some important questions and answers to concider:

1. Why do I need a home inspections?
Home inspection allows you to determine through expert examination whether there are flaws or problems in a home you are about to purchase. A smart buyer will always consider a home inspection contingency in their home purchase offer.
2.When do I call a home inspection? As soon as you have a signed purchase offer on a home, call to schedule a professional home inspection. Your purchase agreement may specify an inspection deadline.
3. What does a home inspector check in a home?
The inspection will cover the conditiona of the home's teating system, Central Air Conditioning system, plumbing and elevtrical systems, roof, attic and visible insulation, walls, ceilings, floors, windows and doors, foundation, basement and structural components.
4. What issues will a home inspection not cover?
If yo have concerns about lead, radon, mold, asbestos or other issues, be prepared to hire a separate specialty-licensed inspector who inspects for these issues. Your general home inspector can recommend local professionals.
5. How do I find a qualified home inspector? consider and inspector that is member of ASHI -the American Society of Home Inspectors. Visit their website at www.TinyURL.com/FindAnInspector. Depending on local ordinances, your inspector may need to be licensed.
6.Will I be able to attend the inspection? It's a good idea to shadow your inspector and ask questions along the way to learn more about the home.
7. How long will a home inspection take?
A home inspection can run two to three hours, but varies depending on home size, complexity and characteristics.
8.What will the inspection cost? Home inspection costs vary widely, but be prepared to budget several hundred dollars for a thorough inspection.
9.What type of inspection report do inspectors provide and will I get a copy?
Prior to inspection, ask to see other inspection reports to get a feel for style, thoroughness and terminology. Many inspectors provide reports within 24 hours of inspection.
10. What if the inspector finds problems with the home that need to be fixed?
Your Real Estate agent should advise you whether the home seller should make the repairs before purchase or be asked for a monetary credit to fix repairs after you move in. the home inspection clause in your home purchase contract may allow you to cancel the purchase and find another home to buy if the home repairs are serious or expensive and you do not want to take on the responsibility of that home.

Which Insurance Do You Need?

Home buyers are sometimes surprised to find out there's more than one type of home-related insurance. Here are the more common types of insurance products a home buyer is likely to encounter:

► Homeowners Insurance: Also called "hazard insurance"; it covers the dwelling and its contents for damage or loss resulting from events such as fire, wind, hail and theft. In most cases, it also protects the owner against claims by anyone injured on the property. Most homeowners’ insurance policies specifically exclude flood damage and limit the amount of coverage for items such as jewelry, antiques and collectibles. Additional "rider" policies may be purchased for items that exceed the maximum values of standard policy.

► Private Mortgage Insurance (PMI): Typically required by lenders to protect against default on loans for which the down payment is less than 20%. Usually, the PMI premium is paid a year in advanced at the settlement/closing, then monthly to the mortgage paydown reaches the 22% threshold (Under certain conditions, homeowner can request PMI cancelation when their equity reaches 20%)

►Title Insurance: Often required by lenders at the buyer's expense, title insurance protects the lender's interests against losses arising from claims on the property due to a defect in the title. Some buyers purchase title policies to protect their own interests, as well, should a claim on the home arise.

► Credit Life Insurance: Also called "mortgage life", this insurance pays off the remaining mortgage loan balance in the event the borrower dies due to reasons specified in the policy.

►Flood Insurance: Usually required by the lender if the property located within an area subject to periodic flooding. Home buyers may be able to obtain flood insurance through the National Flood Insurance Program (NFIP).
For specific insurance questions, contact your local insurance agent or broker.....

Experts disagree on housing recovery

Foreclosures, jobs to impact prices into 2011
Dian Hymer Inman News™

The National Association of Realtors (NAR) predicted the housing market would improve by the end of 2010. In September 2010, Lawrence Yun, NAR's chief economist, said that he expected the housing recovery to be "slow and gradual because of lingering economic uncertainty."

The 2010 housing market has been characterized by lower sales volume than a year ago. However, the median price increased 0.08 percent in August from a year ago. The number of homes sold nationally in August increased 7.6 percent from July, 19 percent below the August 2009 level.

August closings reflect sales made in April when the homebuyer tax credit was still available. We could see lower sales volume and median sale prices moving forward. This will vary from one area to the next.

Real estate is a localized business. In California, home sales for 2010 are predicted to rise 2 percent from the 2009 level. The median sale price is expected to increase 11.5 percent from a year ago to $306,500 and another 2 percent in 2011, according to the California Association of Realtors. The state's median sale price was $522,700 in 2005.

Research by First American CoreLogic indicates that 24 percent, or more than 11.3 million homeowners, have negative equity. Negative equity occurs when the unpaid mortgage balance exceeds the market value of the property. According to CoreLogic, homeowners with negative equity are unlikely to reach positive equity until 2015 or early 2016.

Foreclosures are one of the factors putting brakes on a housing market recovery. According to NAR, distressed sales accounted for 34 percent of homes sold in August, up from 32 percent in July and 31 percent in August 2009. Foreclosures will continue to impact the housing market in 2011.

According to RealtyTrac Inc., a foreclosure data company, banks took back 816,000 homes during the first nine months of 2010. Complicating the picture is that many mortgage lenders recently put a freeze on foreclosures to review documentation to make sure they hadn't cut corners when they evicted homeowners.

Some experts think the stall in marketing and completing sales of foreclosed properties will have little impact on the housing market. Others think that if the freeze lasts for months, it will have a negative impact on home prices -- pushing sales scheduled to close in 2010 into next year and making it impossible for some properties to be ready for the spring 2011 market. Already, some lenders have resumed processing foreclosures.

HOUSE HUNTING TIP: A recent nationwide survey done by Fannie Mae revealed that most Americans think the housing market has hit bottom. Some 67 percent believe that housing is a safe investment. Most consumers think that it's still a buyer's market. However, they are taking a more cautious approach to homebuying.

Some analysts think home prices could decline another 15 to 20 percent before stabilizing. Bill Wheaton, an economist at the Massachusetts Institute of Technology's Center for Real Estate, disagrees. He thinks the housing market will make a strong comeback and demand will return to pre-recession levels in 2011.

During a housing recession, builders stop building new homes. The Census Bureau reported that the number of new-home starts fell from 1.7 million in 2006 to less than half that amount in 2009. Wheaton expects the unsold inventory will be sold or occupied by 2013, and that it will take a long time for construction to meet demand. This could put upward pressure on home prices. Construction will provide jobs, which will have a positive impact on the overall economy.

No one knows for sure when the housing market will turn around or how aggressive the recovery will be. It's impossible to time the market. If you need to sell, you may do better selling sooner rather than later, depending on your local market.

THE CLOSING: Buyers should buy for the long term and below their means.

Source