Final walkthroughs are not the same as home inspections – this is not the time for negotiations with the seller to do repairs or add contingencies. The purpose of a final walkthrough is to make sure the property you are purchasing is in the condition in which you agreed to buy it. It is a time to make sure any agreed-on repairs were made and that no issues have arisen with the home since you last looked at it. Because buyers are often on a time crunch as the closing date approaches, many are tempted to pass on the final walkthrough – but it is highly recommended that you do not skip it as once your sale is complete, there isn’t much you can do.

Vacant home concerns are one of the biggest reasons to do a final walkthrough. Since sellers often move out of their homes quite some time before closing, it’s even more imperative that you conduct a final walkthrough if the seller has already vacated the home. Issues tend to pop up when homes sit vacant for any period of time. For example, a dripping faucet that has been plugged during a termite inspection can turn into a flooded bathroom if the plug wasn’t uncovered. Even disconnecting refrigerators connected to the house water line or moving out washing machines can cause floods, and old plumbing that hasn’t been used for a while can spring leaks.

Why a Final Walkthrough Matters

Say you’re purchasing a home and the seller left shortly after putting the home on the market. Your home inspection went smoothly and the inspector didn’t note any items that required immediate attention. Your agent will likely advise you to turn on all the lights, run the water, and make sure the stove works when you conduct the final walkthrough, but there are some things you may not think of during the excitement of the last walkthrough before you officially own this home! Thankfully though, your agent attended the walkthrough with you. He decided to check off a few more items, like flushing the toilets. When he does so, a geyser of water almost simultaneously gushes from the ground in the backyard. That flushing action revealed that the sewer line had roots growing through it and you receive an estimate of $5,000 the next day to fix the issue. If this hadn’t occurred prior to the finalizing of your sale, you could be responsible for those repairs. If you don’t do a walkthrough, you’ll have to absorb the cost of any repairs if you don’t get the seller to reduce the home’s price as compensation.

What to Check During Your Final Walkthrough

Your final walkthrough is to check for any unresolved issues with the home. To ensure that is the case, follow these steps:
Turn on and off every light fixture.
Run water and check for leaks under sinks.
Test all appliances.
Check garage door openers.
Open and close all doors.
Flush toilets.
Inspect ceilings, walls, and floors.
Run the garbage disposal and exhaust fans.
Test the heating and air conditioning.
Open and close windows.
Make sure all debris is removed from the home.

Buying new construction is a different process than buying your typical pre-built home. What’s included, what’s not, and what’s hidden in that massive contract depends on the builder that you use. As with any situation where you’re moving or about to spend a lot of hard earned money, it’s important to go in prepared – and that means asking the right questions.

The first interaction you’ll have with the builder – and in fact, the first several, at least – will be with the builder’s sales representative. These early meetings are your chance to ask all of the questions you might have regarding costs, labor, and other essentials that you need to know about before jumping in. Write your questions down before you go in so that you can be sure not to forget anything important, and don’t be shy about getting the answers that you need. This is a major purchase, and you don’t want any surprises later.

Not sure exactly what you need to be asking about? These 10 questions to ask when buying a new construction home will help get you started.

Is the lot cost included?
When you’re exploring new construction options, you’ll see that each plan comes with a base cost. This is the cost of the structure itself, as well as base interior and exterior features (we’ll get into those in a little bit). What may not be included is the cost of the land, so be sure to ask if the lot cost is figured into the base.
If the lot cost is included, ask if there are premium costs for certain lots. It’s possible that the base cost does include the lot, but the remaining lots in the development all have added costs for certain features that you can’t opt out of, such as look-out windows in the basement or wider yards. If the lot cost is not included, ask what it is (and whether there are additional premium costs) and factor those into the base price for the house.

How long will building take?
It’s important to know what you’re getting into timing-wise with a new construction build, particularly if you have a house to sell first or you’re going to be renting. While the building process is prone to delays and you won’t be able to get a finite schedule for how long the build will take, you’ll be able to get a general idea of what you can expect. Be sure to also ask if the build time includes the time it takes to get the permits, since those will typically take about 30-45 days to obtain.

What warranties are provided with the house?
Just because a home is brand new doesn’t mean that no problems will arise. Fortunately, most new construction homes come with one or more warranties that protect you in the event of a mishap early on, including a short term whole-house warranty and a longer structural warranty. Ask what the warranties include and how long they last. While you can always buy your own home warranty, you should expect that the builder will cover you in some way for at least the first several years.

What are the standard finishes?
Does a base cost look too good to be true? That might be because the builder is expecting you to spend big when it comes to finishes like flooring and countertops. Ask what types of finishes are included, and better yet, go through the model unit with the sales representative and have them point out what’s standard and what is an upgrade. You likely won’t meet with the design center until after you’ve gone under contract, so it’s important to figure out early what sorts of finishes and appliances you can expect to be included in the home’s base price.

Are you allowed to purchase your own appliances or materials?
Had your heart set on butcher block countertops but the builder doesn’t offer them? It’s possible that you may be able to purchase them yourself and then have the builder install them. Alternately, some builders won’t let you purchase your own materials, but they will let you bring in your own appliances, even on items that are included in the sale, like sinks and toilets. Keep in mind that, in terms of appliances, you probably will have to make some purchases on your own, such as washers, dryers, and refrigerators.

If you can bring in your own materials or appliances, will you get credits?
Let’s say the base price of your new construction home includes a kitchen sink worth $200, but you’d like to upgrade and purchase a sink on your own that costs $400. Will you get $200 off the purchase price for not using the sink that’s included in the base? Some builders offer credits for any upgrades or self-purchased materials or appliances, while with others you’ll just have to eat the cost of the originally included item. Credits are a nice touch, but they’re not usually standard, so it’s best not to go in expecting that you’ll get money off the base cost for purchases like these. In general, builders don’t like to lower the base cost, but if they do offer credits, that’s a win for you.

Is landscaping included?
Depending on the size of your yard, landscaping, including sodding and putting in trees and plants, can set you back several thousand dollars or more. Is that a cost you’ll have to factor in on top of the home purchase? Some builders include your basic yard work, while others leave you with unfinished land that becomes your responsibility to landscape (and generally must be completed in a set amount of time, per the contract). Ask whether landscaping is included, and if so, what that entails and if there is any sort of warranty on the materials so that if your newly sodded grass dies right away or some other mishap occurs you’re not responsible for fixing it.

Does the contract include a cost escalation clause?
New builds are notorious for last minute surprises, but you don’t want to be on the hook financially if it happens. A cost escalation clause allows the builder to charge you for any unanticipated costs that arise as a result of necessary labor or materials. So if lumber prices go up before the builder has purchased the materials for your flooring, or an unexpected delay adds a few weeks onto the build, you’re on the line for those costs. If you’d rather not deal with the stress of unanticipated costs, find a builder that doesn’t include a cost escalation clause in the contract.

Are there any homeowners rules or regulations?
Even if there is no homeowners association for the development, the builder may still set some guidelines as far as what’s allowed and what’s not on your property. For example, you may not be able to use a particular type of fencing or install a shed in your backyard. It’s better to ask this question early and know what to expect than to move in and find out that you can’t bring into fruition certain plans you had for the space.

Are there any financial incentives for using the builder’s preferred lender?
Some builders offer discounts on closing costs if you obtain your mortgage through a company that they have a relationship with. Ask if these sorts of financial incentives are offered, but don’t make your final decision about where to get your mortgage based on the discounts alone – you may still be able to find a better deal through other lenders. It’s still good to know however if there are benefits to working with the builder’s preferred mortgage company.

If it’s your dream to build a new construction house, go in to the process with an open mind and a clear idea of what you can expect. The more questions you can ask in the beginning, the less surprises you’ll potentially face in the future.

And as with any home purchase, be sure to have an attorney read over your contract so that you can be sure everything is fair and equitable. Some buyers of new construction prefer to go in to sales meetings with a real estate agent as well, though in my own experience, I didn’t find that to be necessary. Be smart, ask the right questions, and at the end of the day (or fine, year) you’ll end up with a beautiful home built just for you.

In today’s market, it’s not uncommon to be in competition with several other buyers for your dream home. When you find that perfect house, with the chic chandelier and the doggy door for Fido, the last thing you want to do is lose it because your offer didn’t stand out to the seller, Taking the time to put forth a well-written offer can work wonders for a buyer. Each seller and agent may have different opinions on what makes the best offer, but here are some that we’ve found are the most consistent:

1. Include a pre-approval.
If you want to show the seller that you’re serious about buying a home, get pre-approved before you ever sign an offer. Not only does it show that you didn’t just waltz up, see the for sale sign and throw something out there, but it also alleviates some of the seller’s worries that you’ll back out when the bank finds out your credit isn’t actually as good as you thought it was. Be sure to include that pre-approval letter from the bank with the signed offer.

2. Make a decent earnest money deposit.
When you’re sure you can’t picture yourself without this house, be ready to boost your earnest money deposit. Earnest money shows the seller that you’re putting your money where your mouth is, and you’re prepared to give up that chunk of cash if you back of the contract for any reason other than those allowed under the contract terms. There is usually a typical amount offered for your area, so if you really want to look good, go above and beyond that amount.

3. Remove all the contingencies you can.
Having two mortgages while trying to sell the home you’re in now isn’t really a dream that anyone has, but if you have the cash to do it, it’s definitely going to make your offer more desirable. Anytime you can waive contingencies in the contract, like the sale of your current home, it gives the seller more confidence that the deal will go through without a hitch. Another option would be to shorten the typical time periods. If it’s customary for your inspection period to be 15 days, shorten it to 10 to let the seller know you’re looking to make this happen quickly.

4. Make it Your Best
When you’re up against multiple offers, don’t waste a lot of time expecting to negotiate. Base your offer on solid research of surrounding comparables and really offer what you’d be willing to pay. If you don’t, your offer may be tossed aside for others that did. This includes more than the price, too. Maybe pay out of pocket for some of those extras, like a home warranty or closing costs, instead of asking the seller to contribute.

5. Get Personal
It’s time to let the seller know why you’re dying to buy their house, and be honest. Is it because you want to raise your family in the neighborhood? Do you see Fido rolling around in the big, fenced backyard? Connecting with the seller and creating a sense of relatability can go a long way, but avoid sounding desperate. The idea is to keep it short, simple, and honest, and don’t forget to have your buyer’s agent proofread it. Don’t hesitate to go out of the box to make your offer standout to the seller. It may end up getting you your dream home.

If you ask a loan officer, “What kind of lender is best?” the answer will be whatever kind of company he works for and he will give you a list of reasons why. If you meet the same loan officer years later, and he works for a different kind of lender, he will give you a list of reasons why that type of lender is better.

Realtors will also have differing opinions, and those opinions have and will continue to change over time. In the past, it seemed like most would recommend portfolio lenders. Now, they usually recommend mortgage bankers and mortgage brokers. Most often they direct you to a specific loan officer who has demonstrated a track record of service and reliability. It is often more important to choose the correct loan officer, not the institution. The loan officer has many responsibilities, one of which is to act as your representative and advocate to the lender he works for or the institutions he brokers loans to. You want someone who has proven dependable and ethical in the past.

Regarding the institutions, the truth of the matter is that each type of lender has strengths and weaknesses. This does not even take into account the variety of other factors that influence whether a lender is good or bad. Quality can vary, depending on the loan officer, the support staff, which branch or office you are obtaining your loan from, and a variety of other factors.

PORTFOLIO LENDERS
Savings & Loans are quite often portfolio lenders, as are some banks. Portfolio lenders generally promote their own portfolio loans, which are usually adjustable rate loans. They will often pay more compensation to their loan officers for originating a portfolio product than for originating a fixed rate loan. You may also find that they are not as competitive as mortgage bankers and brokers in the fixed rate loan market.

However, it is often easier to qualify for a portfolio loan, so borrowers who may not qualify for a fixed rate loan may be able to obtain a loan from a portfolio lender. A borrower may be able to qualify for a larger loan from a portfolio lender than he could obtain from a fixed rate lender.

Portfolio lenders also can serve as niche lenders because certain things are more important to them than meeting the more standardized underwriting guidelines of a mortgage banker. An example would be a savings & loan, which is more concerned with an individual’s savings history than being able to fully document income and other things.

If you apply for a loan with a portfolio lender and you are declined, you usually have to start the process over with a new company.

MORTGAGE BANKERS
If we are talking about the larger mortgage bankers, you can count on them having several strengths. For the biggest ones, you will recognize the brand name.

Usually, they are much better at promoting special first time buyer programs offered by states and local governments, that have lower interest rates and costs than the current market rate. These programs are often available to buyers who have not owned a home in the last three years and fall within certain income guidelines.

Mortgage bankers may incur problems because they are just too big to manage, or they may operate like well-oiled machines.

If you are buying a home and you need a VA or FHA loan and the development you are buying in has not yet been approved, they will be better at getting it approved than other lenders.

If your home loan is declined for some reason, many mortgage bankers allow their loan officers to broker the loan to another institution. However, because your loan officer is so used to promoting the company’s product, he may not be familiar with which institution may be the best one to submit your loan to. Another reason is because wholesale lenders do not expect to get many loans from direct mortgage bankers, so they do not expend much marketing effort on them.

BANKS and SAVINGS & LOANS
Their major strength is that you will recognize their name. In addition, they will usually be operating as a mortgage banker, a portfolio lender, or both, and have the same weaknesses and strengths.

MORTGAGE BROKERS
The major strength of mortgage brokers is that they can shop the wholesale lenders for the best rate much easier than a borrower can. They also learn the “hot points” of certain wholesale lenders and can handpick the lender for a borrower that may be unique in some way. He will be able to advise you whether your loan should be submitted to a portfolio lender or a mortgage banker. Another advantage is that, if a loan gets declined for some reason, they can simply repackage the loan and submit it to another wholesale lender.

One additional advantage is that mortgage brokers tend to attract a high number of the most qualified loan officers. This is not universal because mortgage brokers also serve as the training ground for those just entering the business. If you have a new loan officer and there is something unique about you or the property you are buying, there could be a problem on the horizon that an experienced loan officer would have anticipated.

A disadvantage is that mortgage brokers sometimes attract the greediest loan officers, too. They may charge you more on your loan, which would then nullify the ability of the mortgage broker being able to shop for the lowest rate.

WHOLESALE LENDERS
Borrowers cannot get access to the wholesale divisions of mortgage bankers and portfolio lenders without going through a broker.

Agent-Recommended Lender
If your agent or builder makes a suggestion for a lender, be sure to talk to that lender. One reason agents and builders make suggestions is the fact that they have regular dealings with this lender and have come to expect a certain amount of reliability. Reliability is extremely important to all parties involved in a real estate transaction.

On the other hand, a recent trend in mortgage lending has been for real estate companies and builders to own their own mortgage companies or create “controlled business arrangements” (CBA’s) in order to increase their profitability. These mortgage brokers sometimes become used to having what is essentially a captured market and may not necessarily offer you the lowest rates or costs.

Some real estate companies also offer different types of incentives to their realtors in exchange for recommending their company-owned mortgage and escrow companies or lenders with whom they have CBA’s. Dealing with one of these lenders is not necessarily a bad thing, though. The builder or real estate company often feels they have more ability to expedite matters when they own the company or have a controlled business relationship. They cannot usually influence the underwriting decision, but they can sometimes cut through red tape to handle problems or speed up the process. Builders are especially forceful on having you use their lender. One reason is that there are certain intricacies in dealing with new homes. If you use a loan officer who usually deals with refinances or resale home loans, he may not even be aware of how different it is to close a mortgage on a new home and this can lead to problems or delays.

It is in your interest to know if there is any kind of ownership relationship or controlled business arrangement between the real estate or builder and the lender, so be sure to ask. Do not automatically disqualify such a lender, but be sure to be more vigilant on getting the best interest rate and the lowest costs.

Conclusion
Make sure to do a little shopping. By knowing the interest rates in your market and making sure your loan officer knows you are looking at rates from other institutions, you can use that as leverage to make sure you are obtaining the best combination of service and the lowest rates.

Winter has arrived and along with it, much colder temperatures. Maybe the heating system in your home has been in place since you moved in and you’re not sure if it is the best option for you, or you’ve recognized that heating your home is putting a hole in your pocket. Here are the different heating system options to help you find out if your current system is best for you, or if it is time for an upgrade so there will be no shivering indoors this season.

Boilers

Boilers heat the floor, walls, and air by circling heated water through a piping system loop. Electricity, propane, and natural gas can all power a boiler system and can distribute heat in a variety of ways. There are old-school steam radiators, hot water radiators, and hydronic radiant floor heating. Boiler systems are usually more expensive and costly to install, but are typically more quiet than forced air and can be more efficient than forced air systems.

Heat Pumps

Heat pumps heat or cool your home by taking advantage of existing outdoors, underwater or underground temperatures. Air-source heat pumps are the most common, followed by the split ductless system and the geothermal system. While heat pumps tend to be more expensive than forced air or central heating and can be noisy, they will save you money in the long run because of just how efficient they are.

Furnaces

Furnaces, commonly referred to as forced air, are the most common system because while inexpensive, they are quite reliable. You may have an older furnace that needs replaced, and based on the current efficiency rating, it may be worth your time and money to invest in a new maximum efficiency furnace. A key factor in saving money with a furnace is making sure it is the right size for your home so it doesn’t overwork itself, costing you more in the end.

While your team may not have made it to the final game, the Superbowl is the perfect excuse to bring together your family and friends for a day of fun. Whether the 49ers or the Chiefs win, you can throw a party that will be sure to win. Here are a few tips that will help you throw the best Superbowl party on the block.

Have great snacks

Having the best food is an easy way to guarantee your guests will have a great time. Consider making football-themed snacks or if you want to be a little more festive, try your hand at Latin food (maybe Cubanos!) to celebrate the game taking place in Miami, a place known for their love of Latin food!

Make themed drinks

While beer is definitely known as the drink of football, you can use this opportunity to create a themed beverage based on the team of your choice (or both!) that can be served both with and without alcohol, especially if kids will be around during the party.

Check your channels

Make sure before you begin any planning, you have the channel that will be playing the Superbowl this year!

Make your own games

Guests love to be engaged. Keep them involved by having everyone rate the commercials or take prop bets – like who will be MVP or if the halftime performer will get caught lip-synching!

Have fun!

Especially if you’re a fan of a team in the game, keep in mind that it is just a game! Enjoy the company of your loved ones and have fun!!