Home Inspections in Kitsap County

Whether you are buying a home or selling one, a home inspection is an essential part of the process. It may identify the need for major repairs or uncover builder oversights (in new construction) as well as highlight the importance of maintenance to keep the home in good shape.

The inspection typically will take place after the contract or purchase agreement has been signed. Before you sign the purchase contract, be sure there is an inspection clause in the contract making your final purchase obligation contingent on the findings of a professional home inspection. This clause should specify the terms and conditions to which the buyer and seller are obligated. In this market cycle, I recommend that sellers contract with an inspector and complete the inspection before listing their home for sale. As part of the process, the sellers then either make the necessary repairs or disclose those not corrected on the property disclosure form. In addition, a copy of full inspection should be displayed in the homebook. Your home needs to "stand out" from the competition and this will be one point of difference.

The American Society of Home Inspectors (www.ashi.org) publishes a Standards of Practice and Code of Ethics that outlines what you should expect to be included in your home inspection report. Generally it will cover the conditions of the following:

• heating system
• central air conditioning system (temperature permitting)
• interior plumbing and electrical systems
• installed appliances
• roof, attic and visible insulation
• walls, ceilings, floors, windows and doors
• foundation, basement and structural components
• insect infestation and damage

Fees for a home inspection vary geographically and depend on factors such as the size of the house, its age and optional services such as septic, well or radon testing.

When my daughter purchased her first home this past June, we contracted with Fair Home Inspections http://www.fairinspection.com/ to complete the inspection. I first met Chuck Fair through the Silverdale Chamber of Commerce in the mid-1990s. Chuck is also a licensed pest inspector in Washington State and he does a great job.

My House Still Hasn't Sold...What Can I Do?

If your move is a corporate relocation and your company will purchase the house (based on the average of three appraisals) then you should be OK.

But if that's not an option, then you need to take drastic action because there's a cost associated with an empty house. And there's no guarantee the rental market is a better option.

All real estate is local but many real estate markets have depreciated since 2006 and don't expect the situation to improve anytime soon. Here's the process:

• Get the absorption rate for your market (in either weeks or months)
• Determine your cost to maintain your house per week or month
• Take several weeks to visit the competition and see what the sellers are providing for the price
• Price your house ahead of the market and more competitively than your competition

Every house will sell if the price is "right." But if you don't price accordingly...

10 Tips for Success in a Short Sale

Short sales are coming back and here is some helpful information:

• Include wording in the NWMLS listing that indicates this is a short sale
• Include the above wording in the purchase and sale agreement
• Don't discount the commission at the time of listing
• Obtain paperwork from the seller's last loan (is there a prepayment penalty)
• Be attuned to the seller's financial and emotional conditions
• Obtain the preliminary title commitment as soon as possible (is there more than one lienholder)
• Advise the seller to consult with an accountant to determine if any forgiveness of debt is a taxable event
• Verify with the underlying lender that the debt is being forgiven or if this is just a release of their lien
• Advise the seller to request a workout package from the Loss Mitigation Department of the lender
• Ensure regular communications are maintained between the buyer, seller, selling agent, escrow and lender

How Safe is Your Transaction?

With the new challenges buyers (and sellers) are facing when dealing with a mortgage loan officer or broker, here are some questions to ask the loan officer:

• Is the letter a true pre-approval or just a pre-qualification
• Has the borrower's credit report been evaluated (is it a "tri-merge")
• Is this a full documentation loan, if not, then what type
• Has the borrower's income been verified (a.k.a. VOI)
• Have sufficient assets to close been verified (a.k.a. VOF)
• Has the file been seen by an underwriter, if so, are there any conditions other than an acceptable appraisal
• Are you the approving lender or are you brokering the transaction (who's funding the loan)
• How long is the approval valid
• Are there any alternative programs if the loan program goes away and/or the underwriting criteria change
• Can you guarantee that this transaction will close on time

As a potential buyer, there's no sense even looking at homes for sale if you can't qualify. And as a seller, what would you say if you found out that your buyer couldn't qualify for a loan after accepting the offer and taking your house off the market for four to six weeks?