Are You Familiar with These Two Important Real Estate Concepts?

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Today, we want to demystify two real estate processes that often confuse our clients: home inspections and appraisals. What are the benefits of each and how do they differ? We'll quickly cover the basics:

• Appraisal: This is mostly done for the bank. The buyer will pay for this as part of the closing costs. One purpose of an appraisal is to ensure the bank isn't loaning too much money on the property. It's highly regulated by federal guidelines for mortgage underwriting. In short, it determines a property's value and protects the bank from over-lending! It's unusual to have any problems with this part of the process.
• Inspection: This determines the condition of the property for the buyer to make sure they know exactly what it is they are buying. The inspection is typically done within five days following a purchase agreement and is paid for by the buyer. The inspector will come in and do a very thorough walkthrough of the property (3-4 hours) and submit a 10-25 page report. If there are things that need to be improved, the buyer and seller then negotiate how they pertain to the final terms or purchase price.

If you have any questions about these two important real estate processes, don't hesitate to reach out to us. We would love to ensure you are a knowledgeable buyer or seller, so you make nothing but the best real estate decisions! We look forward to hearing from you soon! 

How Can You Determine the Condition of a St. Cloud Home?

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If you're buying a home in St. Cloud you will probably want a way to determine whether or not it is a good home. There are multiple ways that this can be done.

One thing that we always do is have the seller fill out a disclosure detailing the condition of the property, and we can also use a home inspection for a more thorough run-through of the property.

A home inspection is done by a professional home inspector, and this person will go through a property to check on the roof, plumbing, air conditioning, water heater, and other vital systems in the home. This protects buyers from purchasing homes with major problems. If the inspector finds something, the buyer will be notified and the agents will have to come to an agreement on how to fix the problem.

In addition to the inspection, we will do a final walk-through prior to closing, just to make sure that the property is in the same condition as it was when the contract was drafted. You can also take out a home warranty plan that will last for one year and will cover mechanical issues and appliances within the home. This warranty can be extended after a year if you wish to continue using it. This is probably a good idea, as there are almost always things popping up here and there.

If you have any questions about any of these issues or if you would like any help buying or selling a home in St. Cloud, please don't hesitate to contact me!