There’s an old adage that what you don’t know won’t hurt you, but when it comes to buying real estate, that’s not the case. After all, wouldn’t you want to know if the dream house you’re buying had flooding problems in the past or has a defective roof?
That’s why full disclosure – a seller’s obligation to disclose facts about properties for sale (such as conditions like occurrence of past floods or structural problems) – is critical when it comes to buying or selling a home. If you’re selling, buyers need to know material facts about your home – that is, anything that could materially affect the sale price or influence a buyer's decision to buy it. And, if you’re buying, as a concerned consumer with a big financial commitment at stake, you want to make an informed decision about what you’re buying.
The National Association of Realtors reports that the major causes of post-sale disputes and lawsuits center around defects and disclosure. But most disputes can be avoided if proper disclosures are made. That’s why most states, including Texas, require some type of formal seller disclosure.
What’s on a disclosure form?
A disclosure form is a notice certain sellers are required to give potential buyers on or before the effective date of a real estate contract for sale, covering in reasonable detail the seller’s awareness of any defects in the property before the sale.
For example, if you’ve had a termite problem in the past, that’s something that prospective buyers should know. Or, if the roof has a leak, buyers need to know that, too.
Attention sellers …
Intentionally withholding information about a property when you sell can have serious legal consequences. Talk to your Realtor and attorney and make sure you understand your disclosure responsibilities. You don’t want to inadvertently leave something out and have to deal with expense, hassles and possible legal consequences later. Also, if you’ve had previous inspections done in the last few years, make that information available to the buyer.
Disclosure also applies to federal laws. For example, those selling homes built before 1978 must disclose any known lead-based paint problems.
Don't be afraid to disclose information about your property. Disclosure laws were created to protect buyers, but they also protect sellers. If all the information about a property is revealed up front, you're less likely to be involved in disputes after the sale.
Attention buyers…
If you’re a buyer looking for a home, look closely at the disclosure notice provided by the seller. If any items concern you, ask questions and investigate. But there are other steps you can take to protect yourself and your financial interests, too. For starters, make sure you hire an inspector. For a few hundred dollars, you get a professional to look into all the systems and components and report to you where deficiencies or potential problems exist … clearly a worthwhile investment.
When you have specific concerns, or when the inspector suggests it, you may also want to hire specialists to look at certain things, such as a structural engineer to examine a potential foundation problem. Yes, you will have to pay for these professionals, but you’ll want to know if there are expensive repairs in a property’s future before it becomes your property. To find a reputable inspector, ask for recommendations from friends, family, co-workers or your Realtor, and make sure your inspector is properly licensed.
For everyone’s protection
Disclosure is a necessary facet of the real estate transaction, helping to protect both buyers and sellers and ensuring lots of smiles on closing day. If you have questions about disclosure, ask your Realtor for advice. Realtors are a wealth of information on this subject.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 12July09 edition of the Galveston County Daily News
Governor Rick Perry signs two very important pieces of legislation into law on Thursday, July 9 at 9:30 a.m. in HAR’s Training Room. State Senator Tommy Williams and State Representative John Otto, are the authors of the bills that where signed into law.
House Bill 8 and House Bill 3613 where signed into law by Governor Rick Perry. Realtors® were instrumental in helping pass these appraisal reform measures. Consumers can expect to see updated appraisal methods and better oversight of appraisal districts, more enforcement authority over appraisal districts to ensure that uniform standard appraisal practices are being used. Consumers will also find alternatives to lawsuits when appealing a ruling by an appraisal review board. Also, a residence homestead to be appraised as a residence will be done so accordingly and not on the basis of the “highest and best use” appraisal standard.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
All homeowners have one thing in common – home improvement and maintenance projects. Whether something breaks, becomes outdated, or you’re ready for a change, certain projects are just a part of owning a house.
Should I stay or should I go?
So what makes for a successful home-improvement project? The answer depends on your intentions. Are you making a change because you plan on living in the house for a while? Are you upgrading so you can sell soon? Your plans should affect your priorities and make certain improvements more appealing.
Where to start?
Whether you’re staying for a while or selling soon, structural and mechanical improvements should come first. Plumbing and electrical systems should be sound before you go for a hot tub and modern appliances. What good are new wood floors if your roof is leaking? Get the point? Is it necessarily interesting or rewarding work? Not really. Frustrating? Maybe. Trust me, though, it’s the right move.
When you’ve gotten the infrastructure up to snuff, you can start on more exciting and gratifying improvements.
Home sweet home
If you’re planning to stay in your home for the foreseeable future, the nature of your improvements is not so much about recovering money as it is about a higher quality of life. Want to get rid of a small bedroom and create a big master suite with two walk-in closets and a hot tub? Go for it!
Even if you’re not planning on selling anytime soon, though, keep in mind that the longer you stay in your home after a project is complete, the less likely you are to recoup a high percentage of the project’s cost.
Make buyers want your home
If you’re improving the house with a goal of a short-term resale, some improvements are more appealing to buyers and, as such, offer a higher return on your investment.
It’s also worth noting that while you may not get a dollar-for-dollar return on the sales price, a quicker sale can save you thousands of dollars.
Now, there are no guarantees on recuperating costs when you sell, so I strongly suggest doing lots of research. Use the Internet to see what other homeowners are doing and what their experience has been. Go to open houses in your neighborhood. Consult your Realtor. The more information you have, the better off you’ll be. In general, I find that most buyers value kitchen upgrades, bathroom upgrades and increases in livable space. It’s not only my years of experience that lead me to believe this. Data from various sources show that people want these areas to be comfortable, functional, attractive and durable.
How much you'll recover in costs depends on several other factors, as well. These include the big-picture condition of the housing market, the value of the homes in your immediate area, when you plan on selling and the type of projects you undertake.
How much is too much?
For a short-term sale, make sure you don’t overdo your improvements. If you put in top-of-the-line appliances or light fixtures, you’re most likely going to recover a lesser percentage than the seller who went with brand new mid-range appliances or fixtures.
Guidelines for remodeling
Curb appeal is important, and easy fixes like fresh paint and exterior improvements like landscaping are simple ways to instantly improve the appearance of any house. First impressions stir potential buyers’ emotions as they evaluate homes. Curb appeal also encourages prospective buyers to come inside to see your new wood floors, updated kitchen and remodeled master bathroom.
Who, me?
After you decide what kind of improvements you’re going to do, the next step is deciding who’s going to do it. Some people are adept at home improvement, some are not. You probably know which category you’re in.
Safety is a factor as well. If you’re going to tackle the project yourself, exercise caution – working on a ladder or dealing with electricity are not jobs to be taken lightly. If you lack confidence, find an insured and bonded professional.
Just do it
Whether you want to increase your living space, avoid the expense of moving to a pricier neighborhood, make a needed or wanted upgrade, prolong your home's life or achieve a good return on investment, there’s no time like the present. Start your research today.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 28June09 edition of the Galveston County Daily News
Personal and home security is a concern whether you're old or young, single or married a parent or not. Protection of self and property is a fundamental component of feeling safe, and this is especially true in our homes. So, if you're in the market to buy a home, be mindful of security during your search.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 21June09 edition of the Galveston County Daily News
There's no question about it: nationwide foreclosures are up, particularly in Nevada, California, Arizona, Michigan, Florida and Colorado. Although we can be grateful that the Lone Star State is not currently near the top of this list, there are Texans facing foreclosure.
Second, it's vitally important that you have a solid grasp on the details of your loan. Some people get into trouble because they don't fully understand their obligations regarding their home loan. There are many types of loans where the payments for the first year or first few years are much lower than the amount you will pay in the following years. When you're shopping for the loan, ask the lender about how various loans work, and make sure you understand the payment structure of each and how it may change.
Could it happen to you?
Unfortunately, bad things sometimes happen to good, hard-working people. Injuries or illness, accidents, unforeseen economic circumstances, unemployment and other factors can hinder the ability of a homeowner to pay his or her lender. Many people do not have sufficient savings accounts and cannot afford to miss even one paycheck without facing considerable struggle.
What to do
If you face the prospect of missing a monthly payment on your house, do not be embarrassed. Instead, contact your lender as soon as you're aware your payment will be late. Also, if your lender attempts to get in touch with you, never ignore those phone calls or letters. If you're elusive, unresponsive or seem disinterested, your lender will be less willing to work with you.
A HUD-approved counseling agency can work with you and your lender and may be able to negotiate a repayment plan. You can call (800) 569-4287 or go online at HUD.gov (search the term HUD approved counseling) for the counseling agency nearest you.
Beware of sharks
In addition to legitimate companies and agencies that can help you, there are scam artists out there. They may tell you that they can stop the foreclosure by signing a document that authorizes them to act on your behalf. Make sure you read and understand any document presented to you - you may be signing over your title to the house, and before you know it, you are a renter in the home you formerly owned! Stay away from companies that promise you swift, effortless results by paying them a large fee - this is usually evidence of a scam.
Get back on track
Facing the possibility of foreclosure is stressful. However, if you understand this risk, you can take steps to avoid it before you even buy a home. Should you ever find yourself behind on your payments, though, there are resources to help you get back on track. As a real estate professional, your Realtor understands the entire homebuying process and can discuss options available to you.
Whether you're interested in buying your first home, your next home, or just want to know more about home-ownership in general, I encourage you to check out a couple of great online resources: http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. All of these sites offer tons of useful, real estate-related information geared specifically for Texans.
Danny Frank is a local Pearland TX Real Estate expert! You can see my entire blog at http://www.pearlandrealtyblog.com
My column was also published in the 14June09 edition of the Galveston County Daily News
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"All I can strive to be is the absolute best possible version of myself." I am the Pearland Area Real Estate Expert - A Friend in the business. I am here to help and serve you - THE CUSTOMER
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