What's In Store For The Market in 2017?

What if A Home Inspection Fails?

Home Inspection: What to Do if a House Doesn’t Make the Grade

You’ve found a home that seems perfect, and your offer was accepted. Then you get the bad news: The home inspector found a lot of issues with the property. What should you do when a house doesn’t pass inspection?

AMY FREEMANYESTERDAY

A home inspection is an essential part of the process of buying a home. While you don’t technically need to hire someone to inspect the house you’ve made an offer on, having a professional come in and assess the state of the home can save you a considerable amount of stress and money in the long run. A home inspector can find issues that the average person wouldn’t notice in a home and will outline the process involved in fixing those issues.

So what happens if the home inspection unveils a surprising number of problems with the house, from pest damage to structural concerns? You have a few options if your potential dream home doesn’t put its best foot forward during the inspection.

1. Go forward with the sale and pay for repairs yourself. Even if the inspection turns up a variety of problems with the home, you might be so enamored of the property or might be getting a good enough price on it that you decide to continue with the purchase and will cover the cost of repairs out of your own pocket. Before you decide to take care of any problems with the home on your own, it’s helpful to actually read through the inspection report to get a sense of what needs to be done. Contact several licensed contractors in Philly, and ask them to provide price quotes on the type of repairs that you need. Use that information to determine if going ahead with the sale makes sense for your budget and your peace of mind.

2. Work with the seller. It’s fairly common for buyers and sellers to work together and to negotiate who will pay for what when a home inspection turns up a lot of problems. If there are structural problems with the home, if the furnace or air conditioning are broken, or if the home isn’t up to code, it is usually in your best interest to get the seller to cover at least some costs for repairs. Be careful about expecting a seller to pay for minor problems or cosmetic issues, as most won’t. A seller might cover costs in a variety of ways, such as doing the actual repairs him or herself, issuing you a credit for closing costs, or reducing the price of the home to make up for the cost of repairs.

3. Walk away from the home. Provided that your contract with a seller had an inspection contingency clause, you have the option of going nuclear — abandoning the home and the deal — should the inspection reveal more problems than you want to deal with. Look at the anticipated cost of making repairs to the home versus the value of the home. If the cost of those repairs is more than 2 percent of the home’s value, it’s usually not worth going ahead with the sale.

When it comes to having a home inspection, the value of your inspection is only as good as the person who performs it. Your Real Estate Agent should be able to provide a list of reputable home inspectors.

Real Estate Trends for Buying or Selling

Surprising Real Estate Trends that Will Shape the Way You Buy and Sell a Home

When buying or selling a house, one of the first questions that come to mind is either “What do I want in a house?” or “What do buyers want in my house?” The answer to either question may have a surprising link to generational real estate trends.

MELINA GILLIESYESTERDAY

When buying or selling a house, one of the first questions that come to mind is either “What do I want in a house?” or “What do buyers want in my house?” Though it can be hard to differentiate between wants and needs in real estate, the answer to either question may have a surprising link to generational real estate trends.

The Data

According to data on home buyer and seller generational trends released by the National Association of Realtors, Millennials (those born between 1982 and 2000) continue to comprise the largest contingent of homebuyers, holding 35 percent of the market. Although Millennials are the largest contingent of homebuyers, they spend less time saving for a down payment and have the largest level of educational debt than their home-buying counterparts. The next largest contingent, at 26 percent of the market, is made up of Generation X (those born between 1965 and 1981). These buyers have had a bit more time to pay down student debt, save for a down payment, or gain some equity in their current home — which can provide clues about home buying trends based on age.

Millennials

Millennials are more likely to look for a bargain, with affordability trumping almost every other housing need, and it is one of the major reasons Millennials are flocking to the suburbs, as opposed to urban areas. When selling, that means appealing to the Millennial set that will be looking for walkability, transport links, and neutral spaces to put their stamp on. If buying, especially for the first time, Millennials are more likely to compromise on the size and age of a home before they compromise on price, which provides ample opportunity to build equity through a renovation before moving on to a larger home in the future.

Generation X

Gen Xers, on the other hand, are more likely to move to obtain a larger home for their growing families. When selling, this means playing up livable space in a home and demonstrating how it can support a growing family. Items to focus on are the main living spaces such as the kitchen, living areas, and bathrooms. Proximity to good schools and transportation routes are also good qualities to play up. Gen Xers are also more likely to stay in their homes for a longer period than the Millennial set — meaning Xers are more likely to compromise on price to get the right neighborhood or location.

Baby Boomers

If you’re wondering where the Baby Boomers fit in, it may surprise you to know that the Millennials have recently surpassed Baby Boomers as America’s largest generation, and this demographic shift is reflected in their share of the real estate market. With many Boomers still in the workforce, the real estate trends for this group have been split in two: younger Boomers (born between 1956 and 1964) and older Boomers (born between 1946 and 1955). They have a market share of 16 percent and 15 percent of the market respectively. What makes this generation unique is that they are the ones most likely to move the furthest, obtaining a smaller home and relocating closer to family and friends, and they are willing to pay for the location they want.

The Bottom Line

Across all buying groups, environmentally friendly features ranked as incredibly important, and nearly all generational groups from 30 to 90 began their real estate search online — something potential home sellers should be aware of when preparing their home for sale. No matter who your target market is when selling your home, presenting a neutral space, playing up the local amenities, and including lots of pictures in an online listing will remain critical in a successful sale.