Buying A Charlotte Home...Get A Home Warranty

When you purchase a home you are making the largest single purchase of your LIFE. the experience can be both exhilarating and frustrating at the same time. there are so many unknowns in buying a home. that is why people utilize local Realtors to help them with the purchase of a home. But there is one thing you can do to help protect your investment....Buy a Home Warranty. A home warranty is not like your insurance policy. this actually covers things that can and do break inside the house. The best analogy I always use is purchasing a car. You have insurance against accidents but a warranty against mechanical failure. A home warranty works in the same premise. I mentioned in an earlier post that sellers would be wise to offer a home warranty to buyers when they place their home on the market for sale. However; not all will do and not all can. For example, the bank will not give you a home warranty. they will give you a certain amount to your closing costs and if you have enough left after all the fees you can apply it to the home warranty. On a short sale the seller will not be able to offer a home warranty....They are walking away from the house for less than is owed on the house an the bank will generally not pay for the buyer to get a home warranty since they are already taking a loss on the house. But as a home buyer even if the bank, or seller will not pay for one...I advise everyone to get one. it is peace of mind. A home inspection will tell you what is wrong with the house. however; that is only valid on the day they looked at it. What happens if, say, 3 months after you move in something breaks? Now, you have just moved and closed on the house and probably bought some newer items and maybe paint...Do you have the money for the repair? Do you want to pay for the repair? A home warranty will cover you against those incidental things that can come up...With a small deductible (generally $50 or $60) you can have the peace of mind of knowing that it will be repaired. Considering they only cost around $400.00 a year it is a small investment for a large purchase. So, if you are buying a home and the bank will not give you a home warranty or the seller will not pay for one...purchase one. That minimal investment can save you thousands over the course of a year. Dave diCecco Realtor/Broker www.davedicecco.com

Should A Seller Offer A Home Warranty With Purchase Of The Home?

The question always comes up when I do a listing presentation on whether they should offer a home warranty with the house up front. My answer is always YES... i feel there are many benefits to offering a home warranty when you sell a home. Most buyers in this market are struggling to come up with the necessary down payment to purchase a house and cover part or all of the closing costs if they are not negotiated into the sale. A home warranty gives the buyer an extra value with the house and peace of mind. One thing everyone is always afraid of is that when you move into a house what if something breaks? how do I pay for it? I just spent my last of savings on my down payment on this house. That is where a home warranty acts a security blanket for prospective home buyers. it gives the home buyer the peace of mind knowing that if something does go wrong with the house they are covered for a minimal co pay (usually $50 to $60) per issue. I have had closings occur where the buyer's agent has told me the fact that we offered a home warranty up front gave their buyer's peace of mind when purchasing a home and made them want to look at the house more than some of the comparable in the area..... For a minimal cost the seller protects the buyer and enhances the value to their house at the same time. If I was looking for a house and found a few that were comparable and only one was offering a home warranty.... I probably would be more inclined to go view that house over the other ones. I want that security blanket. I correlate ti to buying a car. you look at a used car you are looking to see what is covered by the warranty and how long the warranty. The warranty on a car makes a large impact on whether you purchase that car or not most times.... Well the same can be said with a house. A buyer purchasing a house is making the largest purchase of their lifetime..... They are looking for that peace of mind as well...So, if you are selling a home consider offering a home warranty. it could make the difference between your home getting sold and not. Dave diCecco Realtor/Broker www.davedicecco.com

What Are Seller Concessions/Closing Costs?

recently had two of my listings sell within a week of one another....Both home owners had been in their homes for at least 20 plus years.... So this process of negotiating a sale price for them was new. As with almost all offers today; buyers are requesting closing costs(seller concessions) for closing. but what are seller concessions/closing costs? in a nut shell seller concessions or closing costs are the amount of money the buyer is requesting that the seller pay toward their closing fees.... The dollar amount can vary depending on the price of the home and the loan amount as well as type....Typically, the buyers ask for somewhere between 3% to 6% of the contract price. On a $100,000 priced home the seller could be looking at netting $3,000 to $6,000 less than expected because of the seller concessions. it is important that you know what the fee is and how much they are asking for....Because that is an amount of money that you will be required to pay at the closing out of your proceeds toward the buyer expenses... Another issue that arises with seller concessions/closing costs among sellers is that the dollar amount can go up...NO. if the buyer asks for $3500.00 in closing costs and they need $5000 in closing costs they are responsible for the difference. You are only responsible UP TO the dollar amount you agree to pay. in this economy and with he housing market the way it is; you can expect on just about any offer to have seller concessions or closing costs associated with the offer....so, when you receive that offer on your house look at ALL the numbers before making a determination as to whether to accept it or not.... Dave diCecco Realtor/Broker www.davedicecco.com