The Importance of a Home Inspection.

(As printed in the Allen News 1/31)

It's always a good idea to inspect a house you intend to buy whether it's pre-owned or new construction. The TREC approved contracts provide for an option period that allows for due diligence including home inspections. Your Realtor can advise you as to how to negotiate the process with your builder. Even with residential service contracts and builder's warranties, it can still be frustrating to get blind-sided with necessary and possibly costly repairs once you've closed.

Even the untrained eye can spot many symptoms of larger problems but a professional can provide a detailed report and further explanation of familiar issues such as:

Water stains on ceilings and blistered or peeling paint on any surfaces, which may indicate a moisture problem or leaky roof.

Cracks in walls or brick veneer, uneven floors, or baseboards pulled away from walls, may indicate foundation problems.

Noisy water pipes, dripping faucets, leaky pipes and running toilets, may indicate plumbing problems. The water heater should also be checked.

Inadequate electrical panels could be a fire hazard if it cannot service all the appliances, heating and air, and other electrical needs.

Damaged or missing roof shingles.

Dampness and/or mildewy odors.

Rotten wood on eaves, fascia boards, posts, etc., could indicate moisture or water problems or possible termite damage.

Malfunctioning appliances and heating and air system.

Pooling water around the house that could indicate a drainage problem.

A professional inspector will spend several hours examining the house from roof to foundation and conducts the inspection in a detailed and thorough manner. Most inspectors will either perform or coordinate inspections of the swimming pool, monitored alarm system as well as any pest inspections required. The cost is usually paid by the buyer and is always money well spent, especially if a serious problem is found.

While your Realtor is not able to recommend a particular company, you can ask for them for the names of companies that previous Clients have successfully used.

Smile! It's a Buyer's Market!

(This article was published in the Allen News 1/12/2008)

I get so tired of hearing all the bad housing news. Doom and gloom everyday. The reason it gets me so is that we live in North Texas and we're right in the middle of an awesome buyer's market. You see, from my perspective, it's either a buyers market or a seller's market. Either way there are bargains to be had. Seller's may be groaning but if you're staying in this area then good news, you're going to get a terrific deal on your new house!

North Texas Real Estate Information System tells us that here in Allen there is a 4.6 month inventory. They show 84 pending sales and 116 new listings as of December 2007 too. While the inventory is up slightly versus a year ago, the fourth quarter is traditionally soft. The actual date varies among Realtors but typically the third week in February is when the spring market starts up. If we have a warm, sunny February it can actually start the first or second week.

My advice is this: take advantage of our current buyer's market. If you have good credit and money to put down, jump in, there are some amazing deals on houses and financing. If you have a house to sell, make sure you're priced for this market and get it sold! The stress of the actual move is nothing compared to having your house "show ready" every day.

Whether buying or selling, seek the advice of your favorite and trusted Realtor. They're educated, they do this every day and what other educated professional can you get to work for free until you get exactly what you want!

Remember "Contract Pending Signs?

Years ago the real estate contracts for pre-owned homes were described as caveat emptor or buyer beware. They have been revised by the Texas Real Estate Commission's Broker/Lawyer committee over the years to offer quite a bit more protection for the home buyer. One of the biggest caveats is in paragraph 23, the Termination Option. Also, known as the "option period" this paragraph when executed properly allows the buyer the unrestricted right to terminate the contract with a full refund of their earnest money. To take advantage of this option, the buyer must pay some "nominal fee" (usually $50 or $100) to the seller within two days of the effective date of the contract and specify the length of time (usually 5 to 10 days) they wish to have for due diligence. I say due diligence because it's during this time that a buyer will perform inspections on the property, visit with neighbors and/or schools, negotiate repairs etc. In actuality, no specific performance is required on the buyer's part for the right to terminate. The only cost to the buyer is the option fee itself and any cost they've incurred performing due diligence. The buyer can proceed with the purchase by ending the option period early through an amendment or just letting it expire. Upon expiration the property status is changed to "contract pending" and the next phases of the closing process begin.

Because of the option period and a number of other buyer protection clauses including financing, survey approval, HOA Subdivision information and seller's disclosure, the contract pending rider has become almost extinct. With a typical 30 day close, by the time the buyer protection clauses are all expired, the house has closed and funded.

You can read the contract itself and more at trec.state.tx.us or ask your Realtor for more information.