Good To Know - Buyers

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Septic systems are prevalent in Forsyth County. A safe and effective waste management approach, with proper maintenance and care they will last 20 to 30 years. This link will take you to a good educational document about Septic Systems. It is recommended that a family of four have the typical tank for a five bedroom home (1,500 gallons) serviced about once every four years. This service costs about $350 to $450 dollars.
 

 

 

 
 
 
You should be knowledgeable about these three classes of building materials. They may arise as inspection “defects” during the home buying/selling process.
Polybutylene Plumbing – Explanation and pictures about this plumbing.
Synthetic Stucco - Explanation about this exterior cladding.
Hardboard & OSB Siding Over 20 million single-family homes are clad with exterior hardboard and OSB siding products that are the subject of class-action lawsuits. Search for "hardboard" to find the information.
 
If the latest technology or entertainment options are important in your new home, add the following questions to your buyer’s checklist.
1. Are there enough jacks in every room for cable TV and high-speed Internet hookups?
2. Are there enough telephone extensions or jacks?
3. Is the home prewired for a home theater or multi-room audio and video?
4. Does the home have a local area network for linking computers?
5. Does the home already have wiring for DSL or other high-speed Internet connection?
6. Does the home have multizoning heating and cooling controls with programmable thermostats?
7. Does the home have multi-room lighting controls, window-covering controls, or other home automation features?
8. Is the home wired with multi-purpose in-wall wiring that allows for reconfigurations to update services as technology changes?
Visit the Consumer Electronics Association (www.ce.org/techhomerating) for a complete Tech Home ™ Rating Checklist.
 

 

 

 
 
 
No home is flawless, but certain physical problems can be expensive. Watch for:
1. Water leaks. Look for stains on ceilings and near the baseboards, especially in basements or attics.
2. Shifting foundations. Look for large cracks along the home’s foundation.
3. Drainage. Look for standing water, either around the foundation of the home of in the yard.
4. Termites. Look for weakened or grooved wood, especially near ground level.
5. Worn roofs. Look for broken or missing copings and buckled shingles as well as water spots on ceilings.
6. Inadequate wiring. Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.
7. Plumbing problems. Very low water pressure, banging in pipes.
 

 

 

 
 
 
1. What are your qualifications? Are you a member of the American Association of Home Inspectors?
2. Do you have a current license? Inspectors are not required to be licensed in every state.
3. How many inspections of properties such as this do you do each year?
4. Do you have a list of past clients I can contact?
5. Do you carry professional errors and omission insurance? May I have a copy of the policy?
6. Do you provide any guarantees of your work?
7. What specifically will the inspection cover?
8. What type of report will I receive after the inspection?
9. How long will the inspection take and how long will it take to receive the report?
10. How much will the inspection cost?
 
Portions adapted from Real Estate Checklists and Systems and used with permission.
 

 

 

 
 
  • Siding: Look for dents or buckling
  • Foundations: Look for cracks or water seepage
  • Exterior Brick: Look for cracked bricks or mortar pulling away from bricks
  • Insulation: Look for condition, adequate rating for climate
  • Doors and Windows: Look for loose or tight fits, condition of locks, condition of weatherstripping
  • Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts
  • Ceilings, walls, and moldings: Look for loose pieces, drywall that is pulling away
  • Porch/Deck: Loose railings or step, rot
  • Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room
  • Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks, sufficient insulation
  • Water Heater: Look for age, size adequate for house, speed of recovery, energy rating
  • Furnace/Air Conditioning: Look for age, energy rating; Furnaces are rated by annual fuel utilization efficiency; the higher the rating, the lower your fuel costs. However, other factors such as payback period and other operating costs, such as electricity to operate motors.
  • Garage: Look for exterior in good repair; condition of floor—cracks, stains, etc.; condition of door mechanism
  • Basement: Look for water leakage, musty smell
  • Attic: Look for adequate ventilation, water leaks from roof
  • Septic Tanks (if applicable): Adequate absorption field capacity for the percolation rate in your area and the size of your family
  • Driveways/Sidewalks: Look for cracks, heaving pavement, crumbling near edges, stains
 

 

 

 
 
 
Be sure that:
  • Repairs you’ve requested have been made. Obtain copies of paid bills and any related warranties.
  • All items that were included in the sale price—draperies, lighting fixtures—are still there.
  • Screens and storm windows are in place or stored.
  • All appliances are operating.
  • Intercom, doorbell, and alarm are operational.
  • Hot water heater is working.
  • HVAC is working.
  • No plants or shrubs have been removed from the yard.
  • Garage door opener and other remotes are available.
  • Instruction books and warranties on appliances and fixtures are there.
  • All personal items of the sellers and all debris have been removed.

 

 

 
 
 
Check your home warranty policy to see which of the following items are covered. Also check to see if the policy covers the full replacement cost of an item.
  • Plumbing
  • Electrical Systems
  • Water Heater
  • Furnace
  • Heating Ducts
  • Water Pump
  • Dishwasher
  • Stove/Cooktop/Ovens
  • Microwave
  • Refrigerator
  • Washer/Dryer
  • Swimming Pool (may be optional)
 

 

 

 
 
 
1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.
2. How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.
3. Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.
4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate?
5. Does the current tax bill reflect any special exemptions that you might not qualify for? For example, many tax districts offer reductions to those 65 or over.
 

 

 

 
 
 
Before you buy, contact the condo board with the following questions. In the process, you’ll learn how responsive—and organized—its members are.
1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have an attorney review property docs, including the master deed, for you.
3. How much does the association keep in reserve? How is that money being invested?
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs.To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn’t the assessment cover—common area maintenance, recreational facilities, trash collection, snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.
7. How much turnover occurs in the building?
8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks aren’t in good repair, they become your problem once you buy.
10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.
 

 

 

 
 
 
1. Look for exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverages must be bought separately.
 
2. Look for dollar limitations on claims. Even if you are covered for a risk, there may a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.
 
3. Understand replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.
 
4. Understand actual cash value. If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.
 
5. Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.
 

 

 

 
 10 Ways to Lower Your Homeowners Insurance
 
1. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.
 
2. Buy your homeowners and auto policies from the same company. You’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.
 
3. Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.
 
4. Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.
 
5. Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.
 
6. Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

7. Stay with the same insurer. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.
 
8. See if you belong to any groups—associations, alumni groups—that offer lower insurance rates.

9. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.
 
10. See if there’s a government-backed insurance plan. In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.
 

 

 

 
 
 
1. It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person’s name or an inaccurate description of the property.
2. It’s a one-time cost usually based on the price of the property.
3. It’s usually paid for by the sellers.
4. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.
5. Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

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  • The Real Estate Settlement Procedures Act (RESPA) statement. This form, sometimes called a HUD 1 statement, itemizes all the costs associated with the closing. You’ll need this for income tax purposes and when you sell the home.
     
  • The Truth in Lending Statement summarizes the terms of your mortgage loan.
     
  • The mortgage and the note (two pieces of paper) spell out the legal terms of your mortgage obligation and the agreed-upon repayment terms.
     
  • The deed transfers ownership of the property to you.
     
  • Affidavits swearing to various statements by either party. For example, the sellers will often sign an affidavit stating that they have not incurred any liens on the property.
     
  • Riders are amendments to the sales contract that affect your rights. For example, if you buy a condominium, you may have a rider outline the condo association’s rules and restrictions.
     
  • Insurance policies provide a record and proof of your coverage.

 

 

 
 
 
1. Develop a master “to do” list so you won’t forget something critical.
 
2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.
 
3. Don’t throw out everything. If your inclination is to just toss it, ask yourself how frequently you use an item and how you’d feel if you no longer had it.
 
4. Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils.

5. Decide what if anything you plan to move yourself. Precious items, such as family photos, valuable breakables, or must-haves during the move, should probably stay with you.
 
6. Use the right box for the item. Loose items encourage breakage.

7. Put heavy items in small boxes so they’re easier to lift. Keep weight under 50 lbs. if possible.

8. Don’t over-pack boxes and increase the chances they will break.
 
9. Wrap every fragile item separately and pad bottom and sides of boxes.
 
10. Label every box on all sides. You never know how they’ll be stacked and you don’t want to have to move other boxes aside to find out what’s there.
 
11. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.
 
12. Keep your moving documents together, including phone numbers, driver’s name, and van number. Also keep your address book handy.
 
13. Back up your computer files before moving your computer.
 
14. Inspect each box and all furniture for damage as soon as it arrives.
 
15. Remember, most movers won’t take plants.
 

 

 

 
 
 
Answer these questions to help you decide whether moving up makes sense.
1. How much equity do you have in your home? Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of paying a mortgage, but if you’ve owned your home for a number of years, you may have significant unrealized gains.
 
2. Has your income increased enough to cover the extra mortgage costs and the costs of moving?
 
3. Does your neighborhood still meet your needs? For example, if you’ve had children, the quality of the schools may be more of a concern now than when you first purchased.
 
4. Can you add on or remodel? If you have a large yard, there might be room to expand your home. If not, your options may be limited. Also, do you want to undertake the headaches of remodeling?
 
5. How is the home market? If it’s good, you may get top dollar for your home.
 
6. How are interest rates? A low rate not only helps you buy more home, but also makes it easier to find a buyer.
 

 

 

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