Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png Home Buying Contingencies To Consider Including In Your Purchase Offer – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 17 Nov 2015 12:30:39 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 Common Real Estate Contract Contingencies You Should Consider Including In Your Purchase Offer [caption id="attachment_3386" align="aligncenter" width="450"]Home Buying Contingencies You Should Consider Including In Your Purchase Offer Home Buying Contingencies You Should Consider Including In Your Purchase Offer[/caption] Throughout the home buying process there are many decisions that have to be made.  Determining how much to offer for a home, whether or not you'd like to ask for seller concessions, and when you'd like to ideally close on your new home are just a handful of the most common decisions that you'll have to make. Another decision you will need to make during the home buying process is deciding what home buying contingencies you will include in your purchase offer.  There are many common real estate contract contingencies to choose from and need to protect your interests. Once you find a home that you feel is the perfect fit, it's extremely important you know which home buying contingencies you can include in your purchase offer. Below are some home buying contingencies that you should consider including in the purchase offer when buying a home.  Read on to find out why these home buying contingencies are important to consider including in your offer. Attorney Approval Contingency One of the first things that will happen once a buyer and seller agree to terms of a purchase offer, in most cases, is both the buyers and sellers attorney will review the contract.  One home buying contract contingency that you will have to decide whether to include or not is whether you're offer will be contingent on an attorney's approval. Since buying a home is such a huge investment and can be quite complex, purchasing a home without having an attorney's representation is never suggested.  When buying a home, your attorney is responsible for protecting your best interests and to make sure you're not making bad decisions or a poor investment. It's highly recommended when buying a home you select an attorney who practices real estate.  Hiring an attorney who does not practice real estate can create a ton of issues.  Real estate attorneys are well versed in protecting their clients interest and know how to solve issues that may arise during a real estate transaction. Inspection Contingencies There are lots of reasons to have a home inspection when buying a home.  Many home buyers believe that a home inspection is the only contingency that they can have included in their purchase offer.  There are actually many inspection contingencies that can be included in a purchase offer. Below are some of the most popular inspection contingencies that buyers can select from when submitting a purchase offer. [caption id="attachment_3388" align="aligncenter" width="450"]Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside! Popular Inspection Contingencies In Real Estate - See What The Most Common Inspection Contingencies Are Inside![/caption] Home Inspection The most common inspection contingency in real estate is the home inspection contingency.  A buyer has the option to make their purchase offer contingent on an inspection of the home. Generally, a home inspection will cost a buyer between $350.00 - $500.00, depending on the square footage of the home.  There are very few circumstances in which a buyer would want to consider not making their purchase offer contingent on a home inspection. The primary reason why a buyer should make their offer contingent on a home inspection is to ensure the home does not have any major deficiencies.  It's almost a guarantee that a home inspector will find issues with every home.  Some of the issues resulting from a home inspection are minor and others can be major, such as structural issues. Radon Test Radon can easily be described as a cancer-causing gas that can be present in a home.  Another inspection contingency that buyers have the option to include in their purchase offer is a radon test contingency. A radon test will normally cost a buyer between $100.00 - $200.00.  In order for radon to be considered a threat in a home, there needs to be a level of 4.0 pCi/L or greater.  If there are levels of 4.0 pCi/L or greater, a radon mitigation system should be installed to reduce the threat of the cancer causing gas.  A radon mitigation system, if professionally installed, should cost between $1,000.00 - $2,000.00. Pest Inspection Another inspection a buyer has the option to make their offer contingent on is a pest inspection.  Depending on your location, pests and insects can create major problems in a home.  The most common culprits are termites, carpenter ants, and boring bees. A pest inspection will generally cost between $75.00 - $200.00, again, depending on the square footage of a home. Septic Inspection If you're buying a home that is not connected to public sewers and has a septic system, another contingency you will have the option to add to your purchase offer is a septic inspection.  It's suggested that if the home has a septic system, you not only have the septic system inspected but also pumped, prior to the closing, unless it has been done in the past six months or so. Depending on the size and type of the septic system, an inspection and pumping will generally range between $200.00 - $300.00.  Issues with a septic can be very costly to fix, or even worse, replace with a new septic system. Well Water Test If a home is not connected to public water and water is provided from a well, another inspection contingency that can be added to a purchase offer is a well water test.  A homes well water is tested to ensure the levels of coliform, nitrate, bacteria, e. coli, radon, and lead are within safe and recommended levels. A well water test will typically cost between $150.00 - $250.00 depending on how detailed the test is.  An example of a common issue resulting from well water tests are high radon levels.  Removing radon from well water can be done but can be fairly expensive, which is another great reason to consider making a purchase offer contingent on a well water test. Chimney Inspection Another common inspection contingency for homes with fireplaces is a chimney inspection.  It's recommended that not only a buyer has a homes chimney inspected but also cleaned, sometimes referred to as a chimney sweep. The cost of a chimney sweep and inspection generally ranges between $75.00 - $150.00.  A good chimney inspector will ensure that the chimney is in good, safe, and in working order.  The cost to repair a chimney can be quite costly depending on the extent of the work that is required. Some of the most common repairs that are required with chimneys include, but are not limited to, cracked liners and deteriorated or cracked chimney crowns. Foundation & Structural Inspection Structural and foundation issues with a home can be extremely costly to correct.  The reality is that structural and foundation issues are something that can scare away potential buyers from a home.  A buyer has the opportunity to make their offer subject to a foundation and structural inspection. The cost of a foundation and structural inspection will normally vary between $100.00 - $250.00.  These inspections are normally conducted by professional engineers, sometimes referred to as a "PE."  Some home inspectors are professional engineers and can perform an inspection of the homes foundation and structure while completing the home inspection. Mold Inspection Buying (or selling) a home with mold is extremely tricky and can be down right scary.  Buyers have the option to make a purchase offer contingent on a mold test.  This is another common inspection contingency in purchase offers. Mold inspections normally cost between $75.00 - $150.00, depending again on the square footage of a home.  A quality mold inspector will make sure they inspect the "hard to reach" areas of a home, including crawl spaces.  If there is mold present in a home, there are methods of remediation that can be used.  It's suggested that if mold is found during a mold inspection that it is professionally re-mediated. A quality home inspector should be able to identify potential mold issues and will recommend the mold is further evaluated by a certified mold specialist. Mortgage Contingency [caption id="attachment_3389" align="aligncenter" width="450"]Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency Real Estate Contingencies To Consider Including In Your Purchase Offer - Don't Skip The Mortgage Approval Contingency[/caption] If a buyer is purchasing a home with the assistance of a mortgage, a mortgage contingency is a must.  A mortgage contingency is one of the most important home buying contingencies to include in a purchase offer for several reasons. First and foremost, having a mortgage contingency in a purchase offer protects a buyer, should there be an issue with getting mortgage approval.  A mortgage contingency should state that if a buyer cannot obtain financing that they will be given their earnest money deposit back.  It is possible a buyer can be denied a mortgage even after a pre-approval has been issued and this contingency protects the buyer, should something unexpected happen. Another important reason to include a mortgage contingency in a purchase offer is because it spells out what type of mortgage a buyer is obtaining, what the loan-to-value percentage will be, and also creates deadlines in which the mortgage approval will be issued. Earnest Money Deposit Contingency An earnest money deposit, sometimes referred to as a good faith deposit, is a deposit that is made by a potential buyer that shows a homeowner they are serious about purchasing their home.  A buyer has the opportunity to elect how much of a earnest money deposit they would like to give a seller.  It's suggested that you ask the advice of a top real estate agent who will be able to give some insight into how much of a deposit you should give to a seller. The earnest money deposit contingency states that a buyer will submit the deposit within a specific amount of days or has already submitted the deposit.  It's important to understand when buying a home the amount of the earnest money deposit a buyer offers can make a difference as to whether or not a buyers offer is accepted or not. A great way for a buyer to help win in a multiple offer situation is to submit their earnest money deposit when their offer is submitted to a seller and also make sure the deposit is a substantial amount of money.  If able, a buyer who can provide a very strong earnest money deposit, which is at least 5% of the purchase price will give themselves an advantage over other potential buyers. Permits / Certificates of Compliance Contingencies Another home buying contingency that buyers have to decide to include in their purchase offer or not relates to permits and certificates of compliance.  A buyer has the option to ask for permits for improvements made to a property, which can include;
  • Fences
  • Pools
  • Decks
  • Sheds
  • Building Additions
  • Basement Living Areas
  • Free Standing Fireplaces
It's possible that a buyer will not ask for a permit for a fence that was built 50 years ago, however, it's suggested that for large additions or improvements that a buyer asks a seller to provide the permits.  It's extremely important when making additions and major improvements to a home to get permits for this reason. By not asking a seller for a permit a buyer opens themselves up to potential liability in the future.  For example, if the local municipality finds out about an improvement, such as a deck that isn't permitted, it's possible they will inspect the deck and find it's not to local code.  This can lead to a buyer having to remove the deck from their new home. Home Sale & Transfer Of Title Contingency [caption id="attachment_3390" align="aligncenter" width="450"]The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously The Home Sale & Transfer Of Title Contingency Is Common When Buying & Selling A Home Simultaneously[/caption] Buying and selling a home at the same time can be very tricky.  Another home buying contingency to include in your purchase offer is a home sale and/or transfer of title contingency, if you have a home to sell. The home sale contingency informs a seller that the buyer needs to, and hasn't, sold their existing home.  The home sale contingency allows a buyer to indicate if they've received and accepted an offer on their home and requires they inform a seller if the offer they've received is still contingent on the buyers inspections, mortgage approval, or attorney approvals. The transfer of title contingency states that the home a buyer is purchasing is subject to their current residence transferring to the new buyers of the home.  This contingency commonly sticks throughout the entire transaction, since the closing date normally occurs on the same date for both the sale of a buyers existing home and also what they are purchasing.  This contingency can be removed if a buyer is able to purchase a home without having to sell their existing home which eliminates the need for a transfer of title contingency. Homeowner Association Rules & Regulations Review Contingency This home buying contingency only will apply for buyers who are buying a piece of property that is part of a homeowners association, which is also referred to as an HOA.  Buying a home that is part of an HOA, such as buying a condo, should always be contingent on the review and approval of the HOA rules and regulations. Since being a part of a homeowner association has benefits as well as drawbacks, it's important that a buyer knows exactly what they are signing up for.  Every HOA is different and will have their own set of rules and regulations. For example, recently while selling a waterfront condo in Irondequoit, NY, the homeowner association only allowed small pets, under 10 pounds.  This eliminated potential buyers who had pets larger than 10 pounds and was something that was clearly stated in the HOA rules and regulations.  This is why it's important a buyer makes their offer contingent on the review of the HOA rules and regulations. Final Thoughts It's important when buying a home, you're protected by many of the above home buying contingencies.  Without these contingencies in your purchase offer, you open yourself up to additional risk that could be avoided.  The above home buying contingencies are some of the most suggested to include in a purchase offer, however, not all are required. Other Home Buying Resources Are you thinking of buying a home in Rochester, NY?  If so, it's critical to protect yourself during your Rochester, NY home buying experience.  If you don't have a buyers agent to represent you in your purchase, contact me and I'd love to share my expertise and knowledge with you about the local real estate market.
Subscribe To Our Blog (it's FREE) & You'll Receive All The Top Real Estate Tips, Trends, News, and More in your e-mail inbox!:Delivered by FeedBurner
About the authors:  The above article "Home Buying Contingencies To Consider Including In Your Purchase Offer" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>