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Displaying blog entries 1-4 of 4

Buyer Self-Representation

by The Jana Caudill Team

Can I represent myself when buying a Crown Point, Munster, or Chesterton home?  What most people who ask this question really mean to say is, “Won’t I save money (translated commission) by doing it myself instead of using a Realtor?”  The answer to the first question is, Yes.  You absolutely can, and you have every right to represent yourself when buying a home.  You can find homes for sale by owner in the newspaper, call to set up showing appointments for yourself, negotiate on your own behalf, etc.  You can hire the appraiser and an inspector.  If you’re going it alone you will probably at a minimum need to hire an attorney to draw up the contract to purchase, but beyond that you can do it all for yourself, drawing on your own life experience to help guide you through every decision until closing.

The answer to the second question, “Will I save money by doing it myself?” is NO.  As a homebuyer, doing it yourself, you will not save money by not using a Realtor, and you may in fact spend more.  There are many reasons for this, primarily including who pays commissions in a Real Estate transaction, and higher average sales prices for homes for sale by owner.

In a Real Estate transaction the seller generally pays all commissions, both to the listing agent representing the seller, and to the buyer agent representing the buyer.  If this is your first Real Estate purchase this may not make sense on the surface (click here for a lengthier discussion on agency).  However, all commissions are paid out at closing by the seller, NOT by the buyer.  The bottom line is the buyer does not pay commissions.  Just like at the car lot, the buyer does not come in and have to pay a commission to the sales person who sold them their brand new car.  That commission is paid by the dealer (seller).

In addition, homes listed for sale by owner tend to be advertised for a higher price than like homes listed with a Realtor.  This is because a Realtor will show sellers how much homes are going for in their market at that time by providing a CMA (Comparative Market Analysis), and will use that information to price their home competitively with other homes on the market.  And again, if you’re looking to purchase a home that is listed for sale through a Realtor you need to keep in mind two things.  First, the seller pays all Realtor commissions, and second, and just as importantly, that Realtor is professionally representing that seller only.  They will use all their skills to negotiate and secure the highest sales price possible for their sellers – treating the buyers fairly through the entire process – but representing the seller’s interests above all others.

So, the question, will you save money by representing yourself ?  No, you’ll probably end up paying more for the house you ultimately purchase, and since commissions are paid by the seller, AND the seller has professional representation with their Realtor shouldn’t you have professional representation too?

The Purchase Offer - Part 2

by The Jana Caudill Team

We talked about price, good faith or earnest money, down payment, and financing terms last time.  All of these issues are important in putting your best offer forward, but in order to make one that will be sound and attractive to the seller your offer to purchase must also address the issues of time of possession, contingencies, and inspections.

  1. Time of possession.  The contract for purchase must spell out a specific time when the home is turned over and available for occupation by the new owners.  Possession is often defined by an event such as “day of closing” or “two days after closing.”  That’s the time when the previous owners will be completely moved out and the home is ready for the new owners to move in.  Some offers may request early possession, meaning the home is turned over for occupancy prior to the closing date.  You will certainly want to consider a time of possession that is most convenient for all parties, however venturing too far from possession on the day of closing may warrant a rental agreement to bridge the gap on the calendar.
  2. Contingencies, such as appraisals, inspections and mortgage funding are common in offers to purchase, and protect the buyer in case of the unexpected.  An appraisal coming in under the expected valuation can affect the mortgage approval process as can inspection issues like a leaky roof, lead paint, or a faulty foundation.  Cover your bases by including appropriate language specifying what contingencies need to be met in order for you as the buyer to proceed to the closing table.
  3. Consult with your Realtor.  Chose a reputable Realtor with the experience to help you with your Crown Point, Valparaiso, or Chesterton home purchase.  They can help you gather information on recent home sales that is useful in determining an offer price.  They will also help you navigate the offer to purchase contract and take the time to consult you on the various contingencies, inspections, and other issues that can help spell out an offer no seller will refuse.

Troubleshooting the Hot Water Heater - Part 1

by The Jana Caudill Team

All of a sudden – or more likely the problem started small and got worse with time – you have an issue with your water heater.  There’s not enough hot water, or NO hot water.  Maybe your hot water smells a little funny or has a rust colored tinge to it.  Maybe you even have water on the floor of your Crown Point, Chesterton, or Dyer basement.

Ok, first things first.  BE SAFE.  This article is on troubleshooting water heater problems, and although I’ll suggest how to fix the issue, this is by no means a comprehensive step-by-step repair plan.  If at any point you become “a little iffy” around a troubled water heater call in a professional.  You may very well be an accomplished do-it-yourselfer, but accidents do happen, and more often than not they happen at home.  Now, if you’re one to dig a little deeper into the issue a little home safety review is in order.  If you have an electric water heater be sure to turn it off by cutting power at your circuit/fuse box.  For gas water heaters turn the burner setting to pilot.  Then, for all heaters turn off the water supply to the heater.  On to the diagnostics:

Rust colored water:  Either the sacrificial anode rod has deteriorated (by design) to the point of necessary replacement or there is corrosion inside the water tank.  Most often this can be fixed by replacing the old rod with a new magnesium anode rod.

Smell:  The rotten egg odor you have is a bacteria growing on the inside of the tank.  The bacteria is being kept alive by feeding off the hydrogen gas emitted by the corroding anode rod.  You’ll need to flush out the tank with hydrogen peroxide and probably also replace the old anode with a new magnesium anode.  If the problem persists you may have to replace the tank lining as well.

We’ll continue the diagnostic next blog with the issues of little and no hot water, and discuss leaking water collecting at the base of the heater.

Budget Bathroom Redo's

by The Jana Caudill Team

Getting the itch to do something about that dreadful main level guest powder room but you’ve never really pictured yourself as a do-it-yourselfer?  Maybe you’re ready to put a hole in the peach walls or smash the forest green tiles of your outdated master bath though you’ve never picked up a hammer before in your life.  Here are a handful of tips and some easy and inexpensive Crown Point, Chesterton, and Valparaiso bathroom redos for the budget conscious first time do-it-yourselfer:

  1. Evaluate the project before you spend any money.  What can you realistically do yourself and what do you need help with?  Are there any structural items that need to be addressed?  Are you already looking at holes in the drywall, leaking plumbing, rot, or questionable wiring?  If so, and this is your first rodeo, it might be time to call in the pros.  Get estimates specifically for that work only.  You don’t need a contractor to buy your paint.  That’s when things start to get pricey.  Are you being realistic with your budget?  Is it going to cost more than you originally thought to complete all the changes on your bathroom redo wish list?  Are you okay with spending more if it becomes necessary?
  2. Replace low cost items that require no or easy installation.  We’re talking about the little things that combined can completely change the feel of a room like a new decorative toilet seat, candles, towels, wall hangings, soap dishes.  Anything that contributes to the new feel you’re after in the bathroom.
  3. Paint.  There, I said it.  Yes, paint.  The most affordable anyone-can-do-it remodel item on a room’s to do list is fresh paint.  Remember those drab peach walls that looked great thirty years ago?  A gallon of paint with a warm hue will work wonders.
  4. Self-adhesive tiles.  They’re cheap, they’re easy to apply, and they’re available in a large variety of sizes, colors, and styles.
  5. Be frugal.  Only replace what you have to.  You can often replace a sink without having to replace the entire vanity.  Shop for sale, one-off, close-out, bargain lighting, tiles, towel holders, sconces, etc. that can add that perfect affordable and unique accent.

Displaying blog entries 1-4 of 4