St Louis Metro Area Real Estate BlogRecently posted or modified blog posts by tag - Escrow: Now What?https://www.thechadwilsongroup.com/blog/Copyright TheChadWilsonGroup.com2023-04-27T12:51:59-07:00tag:thechadwilsongroup.com,2012-09-20:1542112 Steps to Take After Securing a Contract on a Home [INFOGRAPHIC]Your <a href="https://www.thechadwilsongroup.com/blog/tag/making-an-offer/" title="Making an offer" target="_blank">offer to purchase</a> the perfect home has been accepted by the seller and you are now officially under contract (yay!!). Many homebuyers now have the question: What do I do next? There are some crucial steps you need to take from the time you secure the contract to purchase to the time you sign the papers and walk through the door of your new home in the St. Louis area. If you are a client of our <a href="https://www.thechadwilsongroup.com/blog/sell-your-home-with-a-real-estate-team/" title="Why use a real estate team" target="_blank">full-service team</a>, you will enjoy the added convenience of working with a Transaction Coordinator, who will guide you through every step of this process. However, it is always important to know what to expect during this period so you can be prepared and help the process go as smoothly as possible. Let’s take a look!
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Infographics/12_Steps_to_Take_After_Securing_a_Contract_on_a_Home_INFOGRAPHIC_1.png" width="672" height="2880" alt="12 Steps to Take After Securing a Contract on a Home" title="12 Steps to Take After Securing a Contract on a Home" />
It is important that you stay on top of each of these steps to ensure that the purchasing process flows smoothly. Working with an experienced real estate agent or team as well as a trusted lender is the best way to ensure that you are kept in the loop and the contract-to-close period moves along as it should.
Buying a home may take a lot of time, energy, and sometimes patience, but the end result is gratifying. There’s few better feelings than being handed the key to your new home and seeing all of the effort and emotions pay off in the end!
The Chad Wilson Group makes the home buying experience in the St. Louis area as easy as possible, with our expert team of real estate specialists. Not only will you have a hard-working, super star Buyer Specialist in your corner, you will enjoy the added benefits of a dedicated Transaction Coordinator to help facilitate your contract-to-close period and keep things on track. Our systems and strategies have earned us one of the top spots in St. Louis area real estate. If you would like to hear more about how our team can assist you in finding your next home, contact us or fill out the form below for a FREE, no obligation buyer consultation with a member of our team. We look forward to showing you what our “Simply Exceptional Service” looks like!2022-12-26T09:44:00-07:002022-12-27T07:40:14-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:18587What to Expect During a Home InspectionAs a <a href="https://www.thechadwilsongroup.com/buyers/" title="Buy a Home With The Chad Wilson Group" target="_blank">home buyer</a> in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale in St Louis" target="_blank">Greater St. Louis area,</a> you will likely choose to get the home inspected once you are under contract. Although some buyers choose to waive this in their contracts for one reason or another, it is a good idea to hire an ASHI-certified home inspector to look the home over, even if you do not intend to ask the seller to make any repairs.
A home inspection gives you more detailed information about the overall condition of the home prior to purchase. In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home to:
Evaluate the physical condition: Structure, construction, and mechanical systems
Estimate the remaining useful life of the major systems, equipment structure, and finishes
Identify items that need to be repaired or replaced
You can think of it kind of like a yearly physical from a medical doctor. A home inspector, in this situation, will not necessarily pass or fail a home, but rather they will give you a better understanding of the home’s physical condition so that you can make a well-informed decision about your purchase.
Below is a helpful infographic and more detailed information on what inspectors typically look for to help you understand what to expect during a home inspection.
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What_to_Expect_During_a_Home_Inspection_Infographic_1.png" width="1000" height="2800" alt="What to expect during a home inspection" title="What to expect during a home inspection" />
Structure
Inspectors will look over the home's structural components such as the framing and foundation of the home to ensure it can stand up to weather and the earth surrounding it as it is expected to. They are looking for signs of foundation movement, weakness, an indication of moisture, cracks, and any structural concerns. They will typically check for the following:
Foundation walls
Foundation floor
Condition of the basement
Underfloor crawl space
Columns and beams
Floor structure
Wall structure
Ceiling and roof structure
Ventilation/Insulation
The inspector will check for adequate insulation and ventilation throughout the home, including the attic and any unfinished spaces. They will look for improper ventilation which can allow excess moisture which may lead to mold and water damage. They will typically review the following:
Insulation in unfinished spaces
Attic ventilation
Vent piping through the attic
Crawlspaces
Foundation areas
Exhaust systems
Roofing
The inspector will look over the roof's covering (shingles, etc), as well as the gutters and downspouts, vents, flashings, any penetrations, and the chimney and skylights, if applicable. They will be looking for problems such as missing, curling, or buckled shingles, nail pops, or any signs of water pooling or potential entry points of moisture into the home through the roof. They will typically review the following:
Roof covering (shingles, etc)
Flashings
Roof penetrations
Chimney(s), if applicable
Roof drainage system
Skylight(s), if applicable
Plumbing
The inspector will closely examine the home's plumbing, water supply, drainage systems, and water heating equipment as well as any drainage or sump pumps. Since water penetration in a home can cause significant damage, it is important the plumbing and water systems are in good working order without leaks. Things like poor water pressure, rust spots, or obvious corrosion can be signs of larger problems. The inspector will typically review the following:
Service piping into the house
Main water shut-off
Supply branch piping
Exterior hose bibs/spigots
Water flow & pressure
Faucets
Sinks
Traps & drains
Waste system
Drainage, wastewater & vent piping
Water heater(s) including vent piping
Fuel supply & distribution
Pump(s)
Electrical
The inspector will take a look at the electrical systems in the home including breakers and fuses, service panels, disconnects, wiring, and other electrical components. They should inform you of the condition of these items and check for any potential problems with any electrical components, which can pose significant safety concerns. They will typically review the following:
Service drop (where the electric company connects to your home)
Service entrance wires
Electrical service rating
Main service panel(s)
Main disconnect
Overcurrent protection
Distribution wiring
Lighting, fixtures, switches & outlets
GFCI - ground fault circuit interrupter
AFCI - arc fault circuit interrupter
Smoke/heat detectors
Heating & Air Conditioning
The inspector will review the home's heating and air conditioning components, taking note of their age and condition, and should be able to give you an idea of their life expectancy. They will typically review the following:
Thermostat(s)
Heating system
Energy source
Safety switch
Combustion air
Venting, flue(s), & chimney(s)
Cooling system
Fuse/circuit breaker protection
Condensate drain
Heating & cooling distribution
Filter
Gas fireplace(s)
Interior Components
The inspector will take a close look at the inside of the home to understand the condition of all of the interior components that are not covered by other categories and will share any potential concerns. It is important to note that the inspection does not include testing for radon, mold, or other hazardous materials unless specifically requested. They will typically review the following:
Doorbell
Walls & ceilings
Floor surfaces
Windows
Interior doors
Closets
Stairways & railings
Ceiling fans
Cabinets & vanities
Countertops
Exterior Components
Like the interior components, the inspector will also look at the exterior components of the home. They will typically review the following:
Driveway
Walkways
Stoop & steps
Porch, patio, & flatwork
Exterior doors
Exteriors cladding (siding, etc)
Eaves, soffits, fascia & trim
Window/door frames & trim
Exterior caulking
Deck and/or balcony
Railings
Fence condition
Grading & surface draining
Vegetation affecting structure
Retaining walls
Fireplace
If the home has a fireplace, malfunctioning or damaged components can be a huge safety risk. The inspector will look over the components of the fireplace for any potential issues. They will typically review the following:
Visible portions of the fireplace & chimney
Lintels (beams across the top)
Damper doors
Cleanout doors & frames
Appliances
The inspector will often look for proper functioning of the home’s built-in and freestanding appliances. However, keep in mind that whether or not certain appliances come with the home will be outlined in your sales contract and varies with each home sale and not all of these items may remain in the home when you move in. They will typically review the following:
Dishwasher
Garbage Disposal
Ranges, ovens, cooktops
Microwave
Refrigerator
Washer & dryer
Dryer vent
Reviewing the Inspection Report
It is important to understand when buying on the resale market that no home is going to be perfect. Just because an inspector identifies problems does not necessarily mean you shouldn’t buy the house. It is just a way to understand the overall condition and be aware of anything that may need attention. Your real estate agent will help you review the inspection report and decide if you should take any actions based on the findings.
Looking to purchase a home in the St. Louis area?
The Chad Wilson Group is a team of real estate professionals helping home buyers like you in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale St. Louis" target="_blank">Greater St. Louis Area</a> (<a href="http://thechadwilsongroup.com/st-charles-county/" title="Homes for sale St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Homes for sale St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Homes for sale Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Homes for sale Lincoln County" target="_blank">Lincoln</a> Counties). Whether you are a first-time or an experienced homebuyer, we will work on your behalf as experts in your corner throughout the entire process to help make everything easier and more manageable. We work closely with many reputable inspectors and can vett and recommend a trusted company to you for your home inspection, so you can be assured that you are getting a thorough and complete inspection. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions you may have or to get the process started!
2022-03-07T16:38:00-07:002023-04-27T12:49:38-07:00Beth Carrtag:thechadwilsongroup.com,2012-09-20:175458 Things You Should Know About the Appraisal Process<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Appraisal_Process.png" width="750" height="275" alt="8 Things You Should Know About the Appraisal Process" title="8 Things You Should Know About the Appraisal Process" />
Once you are under contract to purchase a home, a critical step in the home-buying process is the home appraisal. A milestone of obtaining a mortgage is ordering an appraisal to have an appraiser make an opinion of value analyzing if the purchase price is in line with the property’s value.
It is important to understand the appraisal process and what the appraisal really means to you as the homebuyer. Here are 8 things you should know about the appraisal process.
1. What is an appraisal?
As mentioned above, the appraisal process begins after you have signed a contract to purchase a home. To put it simply, an appraisal is an assessment of a property’s value by an unbiased third party. Appraisals are completed by state-licensed or certified professional appraisers whose job is to give an opinion of how much a house is worth at the given moment. They do not represent either the buyer or the seller, and are typically chosen by your lender. Since your lender is loaning money to purchase the home, they need assurance that the risk they are taking is appropriate and that the home is worth at least as much as they are lending to you to purchase it.
2. What does the appraiser use to determine a home’s value?
Appraisers will use several pieces of information to give their best value to a home at the given time. Below are some of the things appraisers will take into consideration to determine its value:
Age
Location
Size, style, and number of bedrooms and bathrooms
Condition
Updates, additions, or renovations
The current real estate market
Recent sales of comparable properties (frequently called “comps”)
<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/What%20determines%20appraised%20value.png" width="2250" height="400" alt="What determines appraised value" title="What determines appraised value" />
3. As a buyer, how can I prepare for the appraisal process?
The most important step you can take to prepare for an appraisal is to include an appraisal contingency in the contract offer so if the home you are purchasing does not appraise for the contract offered amount, you are financially protected and you can withdraw your offer on the home.
Another way you can prepare comes before putting an offer on a home. Research the area in which you are interested in purchasing and have your REALTOR® pull home values and comparisons of recent sales so that you can go into the purchase process educated about the price point for the area in which you are shopping. Doing this research can help eliminate difficulties with the appraisal, as the area and the home value should coincide with the offer you make.
4. How much does an appraisal cost?
Typically, an appraisal can cost between $350-$500 and is paid at closing. This can vary from one lender to another. This is a question that you should ask lenders when you are considering which lender to use.
5. What is an appraisal used for?
The appraised value of a home drives many important parts of the loan underwriting process. When a buyer finances more than 80% of the home’s total value, they will often be required to purchase private mortgage insurance (PMI). This means that a home’s appraised value will not only partly determine how much a lender will offer, it will also determine the terms of the loan.
Outside of purchasing a home, appraisals are used in other ways related to the home, such as determining insurance value, replacement value, and the assessed value for property taxes.
6. What happens if the appraisal value comes in lower than the contract amount and I still want the home?
If the appraised value is lower than the contracted purchase price, your REALTOR® will step in and try to renegotiate the selling price of the home with the listing agent and the sellers on your behalf.
In a sellers’ market, where there are more buyers looking for homes than homes available for sale, it is not uncommon for buyers to make offers that are above the listed price. If you are in this situation, make sure you understand that there is a possibility that the house will not appraise at a high enough value to cover your entire purchase price. It may be necessary to come to the closing table with additional down payment to cover the shortfall between the home’s appraised value and the contracted purchase price, if you still choose to purchase the home.
7. What happens if the appraisal comes in higher than the contract amount?
If the appraised value is higher than the contracted purchase price, you have instant equity. That means that the home you are purchasing is worth more than the offered amount, and that is always great news from an investment point of view.
When this happens, buyers can become concerned that a seller will want to renegotiate the contract to the higher appraised price. However, that cannot happen for several reasons. You are already under contract at this point for an agreed-upon purchase price, and the appraisal report is considered confidential, so it will not be shared with the seller or their listing agent.
<a href="https://www.thechadwilsongroup.com/blog/category/market-conditions/" title="Greater St. Louis Market Conditions" target="_blank"><img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Greater%20St.%20Louis%20Market%20Conditions.png" width="2250" height="400" alt="Greater St. Louis Market Conditions" title="Greater St. Louis Market Conditions" /></a>
8. Can a home’s appraised amount change?
The appraised value is a professional's opinion, based on data, of the value of a home at a point in time, but it is not an exact science. You should keep in mind that appraisals can differ depending on when they are completed and even who is completing them. Due to the nature of the real estate market, a home’s value will change over time. If you choose to refinance or take any loans out against your home, your lender will likely order a new appraisal to determine your home’s current value.
In Conclusion
The appraisal step can often be a nerve-wracking time frame and one of the biggest hurdles of the home buying process. In order to lessen some of the stress and unknown for yourself, it is imperative to keep in mind that all states require appraisers to be licensed or certified in order to provide an appraisal to a lender. An appraiser is a third-party participant in a real estate transaction and an appraiser's main goal is to assure the mortgage company that the amount they are lending you as the buyer does not exceed a home’s true value. With that assurance, they are also providing you the peace of mind and protection that you are not purchasing a home for more than the property is worth.
Looking to purchase a home in the St. Louis area?
The Chad Wilson Group is a team of real estate professionals helping home buyers like you in the <a href="https://www.thechadwilsongroup.com/communities/" style="font-size: 17px;" title="Homes for sale in Greater St. Louis" target="_blank">Greater St. Louis Area</a> (<a href="http://thechadwilsongroup.com/st-charles-county/" style="font-size: 17px;" title="Homes for Sale in St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/st-louis-county/" style="font-size: 17px;" title="Homes for Sale in St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" style="font-size: 17px;" title="Homes for Sale in Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" style="font-size: 17px;" title="Homes for Sale in Lincoln County" target="_blank">Lincoln</a> Counties). Whether you are a first-time or an experienced homebuyer, we will work on your behalf as experts in your corner throughout the entire process to help make everything easier and more manageable. We work closely with many reputable lenders and can vet and recommend a trusted company to you, so you can be assured that the appraisal process is completed thoroughly and smoothly. <a href="https://www.thechadwilsongroup.com/contact/" style="font-size: 17px;" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions you may have or to get the process started!2022-01-10T12:25:00-07:002023-04-27T12:51:59-07:00Laura Peytontag:thechadwilsongroup.com,2012-09-20:16687Questions to Ask Your Home Inspector in the St. Louis Area<img src="https://assets.site-static.com/userfiles/1688/image/Blog/Home_Buying_Blog_Images/Questions%20to%20Ask%20a%20Home%20Inspector.png" width="750" height="275" alt="Questions to ask a home inspector" title="Questions to ask a home inspector" />
Buying a home is one of the most important investments you will make in your lifetime and is also one of the most exciting times for you as a buyer, especially if you are a <a href="https://www.thechadwilsongroup.com/buyers/first-time-buyers/" title="First-Time Home Buyers" target="_blank">first-time homebuyer</a>! When your offer is accepted and the ball gets rolling, one of the first and most important steps is scheduling a building inspection with a reputable and experienced home inspector.
Having a home inspection not only protects you but also empowers you with a plethora of knowledge of efficiencies and sometimes deficiencies in a home you are considering for purchase. In order to gain this knowledge, you must be armed with the right questions to ask your licensed inspector.
When speaking to Chris Orf at <a href="https://www.orfhomeinspections.com/" title="Orf Home Inspections Website" target="_blank">Orf Home Inspections</a>, a reputable inspection company in the St. Louis area, he shared with us some of the questions home buyers should ask when choosing a home inspection company. Here are some of the things you should ask inspection companies before booking your inspection to help you choose the right one for you!
1. Do you guarantee your work and do you offer any warranty on certain inspections you perform?
2. What type of inspections do you offer? Meaning, can I get all the services I need from your company to eliminate having to use several different companies for one inspection?
3. How much do you charge for a home inspection?
4. How long have you been in business and do you have references you can offer?
5. How long will the inspection take?
6. Do you offer the ability to pay for my home inspection at closing or do you require payment day of service?
Note that the majority of ALL inspection companies will not release the report without payment on the day of service.
7. When will I receive my inspection report and what will our relationship look like after the inspection?
8. Will you be available to discuss any concerns or answer any questions I may have when negotiating the inspection notice?
It is typical for home buyers, and in many cases, their Buyer Specialist, to attend the inspection itself. When at the building inspection appointment of your new home it is very important to not distract the inspector, as they have to be focused on the features that need to be inspected. Therefore, be sure to consolidate all your questions for the inspector prior to the appointment. This will eliminate any distractions and the potential for the inspector to miss something important. Going into the inspection appointment with a clear understanding of what an inspector can and cannot do will ensure you walk away with a comfortable feeling.
Do note these important points while at your appointment:
Inspectors inspect from the roof to the foundation and all the guts in between.
Inspectors can ONLY inspect what they can see. They cannot cut into a drywalled basement to look for any structural defects or repaired areas of the foundation.
Home inspectors WILL go slowly through the entire home, checking everything on their list to look for defects or deficiencies. The inspector will point out things to you that look good or may need repair or further insight from the seller. When this back and forth is happening with the inspector, be sure to ask all questions that come to mind about the items they are going over with you. This is also the ideal time to find out where important items are located such as the water shut off, main power switches, location of GFCI controlling garage, and exterior outlets.
Feeling nervous during this process is normal; buying a home is an investment and probably the biggest purchase a person makes in their lifetime. It is important to not panic if the inspection shows a problem that needs addressing. That is what the inspection is for and a buyer should walk away with a list in their mind of what is of utmost importance for the seller to fix and what can be taken care of by the buyer after closing.
A building inspection appointment should be an informational meeting with a professional inspector and yourself. It’s important to remember that during this appointment you are also provided access to the home for a few hours which gives you ample time to take measurements, take pictures, and offers a distinct idea of how moving in will look and what changes you may want to make once closing occurs. This appointment is more often than not, the last time at the home prior to the walkthrough, so be sure to go into the appointment with the mindset of information gathering. House to house, depending on age and care, many have similar issues and A+ ratings are hard to achieve. Using the right home inspector is the first important step in order to garner all the information one needs when moving forward after the home inspection is complete.
Looking to purchase a home in the St. Louis area?
The Chad Wilson Group is a team of real estate professionals helping home buyers like you in the <a href="https://www.thechadwilsongroup.com/communities/" title="Homes for sale in the St. Louis area" target="_blank">Greater St. Louis Area</a> (<a href="http://thechadwilsongroup.com/st-charles-county/" title="Homes for sale St. Charles County" target="_blank">St. Charles</a>, <a href="https://www.thechadwilsongroup.com/st-louis-county/" title="Homes for sale St. Louis County" target="_blank">St. Louis</a>, <a href="https://www.thechadwilsongroup.com/warren-county/" title="Homes for sale Warren County" target="_blank">Warren</a>, and <a href="https://www.thechadwilsongroup.com/lincoln-county/" title="Homes for sale Lincoln County" target="_blank">Lincoln</a> Counties). Whether you are a first-time or an experienced homebuyer, we will work on your behalf as experts in your corner throughout the entire process to help make everything easier and more manageable. We work closely with many reputable inspectors and can vett and recommend a trusted company to you for your home inspection, so you can be assured that you are getting a thorough and complete inspection. <a href="https://www.thechadwilsongroup.com/contact/" title="Contact The Chad Wilson Group" target="_blank">Contact us</a> or fill out the form below with any questions you may have or to get the process started!2021-11-23T10:32:00-07:002022-11-28T11:54:18-07:00Laura Peyton