Potential Red Flags When Buying a New Home

buying, Wheaton real estate lawyersBuying a new home can be a very exciting undertaking. However, there are also many potential pitfalls, and it is important to not take the process lightly. If you are in the market for a new home, it is a good idea to take your time and make sure that you are making the best possible decision for your situation. You should also enlist the help of a qualified residential real estate lawyer to assist you along the way. As you begin your home search, be on the lookout for red flags that might be indicators that the house you are thinking about buying would be a big mistake.

Difficulties With Inspections

A home inspection is an essential part of the home-buying process. The point of the inspection is to make sure that a prospective buyer is fully aware of any problems that exist with the home. Roof issues, water damage, outdated electrical wiring, plumbing concerns, and a variety of other problems are not always immediately noticeable without an inspection by a fully qualified inspector.

Unfortunately, not all homeowners are cooperative with the inspection process. An owner might try to influence the inspector or dissuade you from using your own inspector. If the current owner of the home you are considering is standing in the way of a comprehensive inspection, it could be a sign that the owner is attempting to conceal serious problems.

Missing Work Permits

If the home you are considering has had major work done on it—including additions or renovations—you and your lawyer should request a copy of the Report of Residential Building Record. Also called the 3R report, this report includes all of the municipally-issued permits for work done on the home since it was first built. If there was substantial work done without the appropriate permits, it could be an indicator that the work was not completed to code by a professional. As a result, the work may have been done poorly, leading to possible safety concerns.

Sounds and Smells

When you walked through the home for the first time, did it smell clean and fresh, or were there overpowering scents being created by potpourri or candles? If it was the latter, the owner or the listing agent could be trying to cover up permanent bad odors. Such odors could be caused by mold, pets, or a number of other sources.

Likewise, if there louder-than-expected music or any type of white noise, the seller could be trying to conceal noise—either from the neighborhood or the home itself. Before you make a decision to buy, ask the seller to turn off fans, air conditioners, and music so that you can hear what the home and neighborhood actually sounds like.

Contact a DuPage County Real Estate Lawyer

A new home will probably be one of the biggest investments you will ever make. Therefore, you need to take the process of buying a home very seriously. For guidance, contact an experienced Wheaton residential real estate attorney at Stock, Carlson & Duff LLC. Call 630-665-2500 for a confidential consultation today.

 

Sources:

https://www.forbes.com/sites/forbesrealestatecouncil/2018/03/26/11-red-flags-to-avoid-when-buying-your-home/

https://www.bhgre.com/bhgrelife/buyer-beware-15-house-hunting-red-flags/

Planning to Purchase a New Home? Watch Out for These Common Mistakes

buying, Wheaton Real Estate LawyersThere are so many things to consider when you are thinking about a new home purchase. What neighborhood should you move to? What types of amenities are most important to you? Are there certain features in a home that you cannot live without? What size home should you buy? Fantasizing about the perfect new house, apartment, or condominium can be one of the most enjoyable parts about the home-buying process. However, those looking to buy a home should also be aware of the many pitfalls that can spell disaster. The home-buying process can involve complicated financial challenges and legalese-filled documents that are impossible to understand. This is one reason it is so important to work with an experienced real estate attorney when buying a new home.

Buying a Home that Exceeds Your Budget

Making a realistic budget can be extremely difficult. The majority of people grossly underestimate their actual expenses and forget about the small expenses that add up every month. If you overestimate the amount of money you can reasonably contribute to your mortgage every month, you may find yourself unable to make these payments on time. You could even end up at risk of foreclosure. When determining how much you can spend on a new home, make sure to consider the added costs which you do not necessarily experience as a renter. You will need to account for property taxes, utility bills, and the costs of maintaining your home.

Sticking to your budget can take a great deal of self-control. Many people struggle with this part of the home-buying process. Make sure you work with your real estate agent and lawyer to find a budget that will not leave you with more house than you can afford. Seeking pre-approval for your mortgage loan is one way to help ensure that you do not miscalculate your budget and overcommit.

Moving Before You Are Ready

Moving to a new home can be thrilling, however, home buyers should be wary of moving before they are truly ready. Most mortgage lenders calculate your average income using your income from the past two years. If you have not had your job long enough, you may want to wait a year or two before buying a new home. The same is true if you have not established a good credit score or saved enough for a decent down payment. Ultimately, it is better to know for sure that you are ready to buy a home than to find out you were not ready after it is too late.

Contact a DuPage Real Estate Lawyer

Buying a home is potentially the largest purchase you will ever make. To get the legal guidance you need when purchasing a new home, contact Stock, Carlson & Duff LLC. Call us today at 630-665-2500 for a personal consultation with an experienced Wheaton real estate attorney.

 

Sources:

https://www.lendingtree.com/home/mortgage/home-buying-mistakes/

https://www.forbes.com/sites/trulia/2016/08/31/7-warning-signs-youre-not-ready-to-buy-a-home/

Are You Considering an REO Property?

REO, Wheaton real estate attorneysIf you have shared with friends and family members that you are in the market for a new home, there is a good chance that someone has at least suggested that you look into buying a foreclosure property. In this context, a foreclosure property is a home that is being sold at auction by a bank because the owner of the property could not keep up with his or her mortgage payments. At a foreclosure auction, there is the possibility of getting a fantastic deal, but not all foreclosure auctions are successful. When foreclosure auction does not result in the sale of the foreclosure property, the property remains under the ownership of the lender and becomes a real-estate owned property or REO.

Understanding a Foreclosure Auction

When a home is seized by the lender during foreclosure, the home is typically put up for sale in public auction. As such, the property will be sold to the highest bidder. However, in many foreclosure auctions, the bidders are not given the chance to walk through or inspect the home before making their bids. In most cases, the highest bidder will also be expected to pay cash for the property immediately following the auction. The combination of these factors makes buying a foreclosure property at auction a rather risky proposition. It is also why some foreclosure auctions do not result in the sale of the property.

An unsuccessful foreclosure auction leaves the lender with a home that has already caused the lender to lose money due to the defaulted mortgage loan. Now that the property is considered REO, however, there may be benefits for you as the potential buyer.

REO Sale Basics

While a foreclosure sale is typically a singular event that takes the form of an auction, an REO sale is very much like any other residential real estate deal. The lender will usually list the property and get real estate brokers involved to facilitate the sale. Prospective buyers will also get the chance to inspect the home and arrange private financing without the pressure of bidding in an auction.

You should remember, however, that most REO properties will be sold “as-is.” This means that while inspections can and certainly should be done, the lender is not likely to cover the cost of any repairs. Your broker and your lawyer could try to negotiate with the lender regarding the price of the property if substantial repairs are required, but there is no guarantee that that lender will move on the listed price. With this in mind, you will almost certainly want to include a contingency provision in your offer that allows you to back out if the property needs more work or repairs that you are willing to pay for or do yourself.

It is also important to ensure that a title search is conducted on any REO property that you are considering buying. The home could have liens or other encumbrances on it that might become your problem once the transaction is finalized.

Contact a DuPage County Real Estate Lawyer

If you are thinking about buying a real-estate owned property or a foreclosure property, you could get a good deal, but there are many potential pitfalls. Contact an experienced Wheaton residential real estate attorney to ensure that your best interests are protected at every stage of the home-buying process. Call 630-665-2500 for a confidential consultation at Stock, Carlson & Duff LLC today.

Sources:

https://www.thebalance.com/buying-post-foreclosures-reos-1798183

https://www.realtor.com/advice/buy/guide-reo-properties/