Check out Hibbing Curling Club for its 7th Annual Funspiel for the Angel Fund on Saturday Feb 10, 2018
Perrella Home Show
Save the Date- March 3, 2018
New Location- Hibbing Memorial Building
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Pre-Listing Inspections Put Sellers in Control
In the typical real estate transaction, the buyer is the one to order a home inspection. But sellers, too, can request a professional assessment of their home before putting it on the market. A pre-listing inspection provides sellers with upfront information about the condition of their property, which gives them more control over repairs and potentially strengthens their negotiating position.
Few sellers take advantage of this opportunity, according to Steve Wadlington, president of national home inspection services company WIN Home Inspection. “I don’t expect pre-listing inspections to become mainstream in my lifetime,” he says. Lack of awareness contributes to the underutilization, Wadlington adds, but he also acknowledges that sellers may be reluctant to spend the money for such services.
Additionally, sellers and their agents have a legal duty to disclose to buyers any property issues that are revealed in a pre-inspection report. REALTOR® Magazine spoke with Wadlington about how pre-listing inspections can boost home sales and help sellers defend their asking price.
Are there any differences between a pre-listing inspection and a buyer’s inspection?
The only differences are the customer for whom the inspection is being conducted—in this case it’s the seller, not the buyer—and the point when the inspection occurs. The scope of the inspection is the same. A pre-listing inspection focuses on proper functionality of all major systems and components of the house: heating and cooling; electrical; plumbing; roof and structure; siding; and doors and windows. It’s a full inspection for the seller to better understand the condition of their home prior to the buyer’s inspection. This gives the seller important information to consider so they’re not caught off-guard in the midst of a transaction.
How much does a typical pre-listing inspection cost?
The fee is usually the same as a buyer’s inspection, generally ranging from $350 to $500 for a qualified inspector who carries E&O insurance. Of course, the price varies based on location, square footage, age of the home, and any special conditions, such as whether the home is built on a steep incline.
Why should a seller do an inspection, particularly if the buyer is going to do one anyway?
The value to the seller is that a pre-listing inspection makes them aware of issues in advance of negotiating a purchase agreement, allowing them the chance to resolve the issues or have them accounted for upfront in the asking price. This gives the seller better control in marketing their home and helps minimize stress from heat-of-the-moment negotiations once a purchase agreement is tendered. Homes that have a pre-listing inspection generally sell faster and have fewer inspection-related issues to negotiate, enabling a smoother transaction.
What should a seller do if a pre-listing inspection uncovers significant problems in the home?
It’s always better for everyone to know about major inspection issues as soon as possible. Once they’re identified, they can be carefully assessed for proper resolution. Depending on the nature of the issue, a seller shouldn’t automatically assume that everything needs to be fixed before putting the home on the market. Their real estate professional should advise whether the repairs are necessary to the viability of the sale. Regardless of who owns the property, issues of concern to the buyer will need to be dealt with somehow, and the associated cost of the resolution is a consideration for both the buyer and seller.
If the seller doesn’t want to pay for repairs, what solace does a pre-listing inspection give to the buyer?
For many buyers, being provided forthcoming inspection information has both tangible and emotional value. They’re made aware of issues identified in the inspection report, which gives them more facts to work with, and then they’re provided subsequent clarity on which issues have been or will be resolved as part of the transaction. Sellers who proactively disclose pre-listing issues give buyers proper awareness to factor them into their offers.
Can pre-listing inspections help real estate professionals when marketing a home?
The more information agents can provide to give buyers peace of mind, the better it is for the sale. A pre-listing inspection can also reinforce the seller’s asking price. It enables agents to explain how the inspection report—plus any repairs that were made before listing—helped the sellers arrive at the home’s value. At WIN, we also provide a “Ready for Purchase” sign rider to identify the house as one that has pre-listing inspection information available. It’s similar to what the auto industry has done with marketing certified used cars.
What about sellers who don’t see the sense in paying for an inspection?
Actually, a pre-listing inspection can ultimately save money for sellers in two ways. First, by being aware of and disclosing known property issues upfront, the seller can make it known that consideration for those items has already been factored into the sales price. That effectively takes these issues off the negotiation table. Second, the seller can choose to repair the issues prior to listing, which gives them more control over repair costs.
Should a seller offer the entire pre-listing inspection report to a buyer or just a summary? How much detail is necessary?
I think this is a situational consideration, where sellers should consult with their real estate professional. The industry has evolved such that it is reasonable to view the inspection summary as containing all of the important need-to-know items found in the full report. Since the real goal here is to ensure transparency and awareness, the summary should be adequate to achieve that. Depending on the length and complexity of the full report, as well as the technical complexity of the issues presented in the summary, I can see where a good faith effort to offer more detail could actually cause undue alarm if the buyer can’t put the information in proper perspective. But bear in mind that much of the longer report will also confirm positive functionality of the major systems and components of the home, so it can offer added positive value as well.
Wouldn’t buyers still want to do their own inspection?
Yes, absolutely. If a seller claims to have resolved issues that were uncovered in a pre-listing inspection, the buyer will want a subsequent inspection to confirm those repairs. Whether the buyer uses the same inspector that the seller used is a matter of personal preference, and there are pros and cons either way. Using the same inspector can be beneficial because their prior experience and familiarity with the home allows them to better detect changes based on a point in time. But a properly trained and certified home inspector will inspect the home for the seller or the buyer in the same manner. This person’s view of the home is objective and won’t change based on who hired them.
Steve Wadlington, president of WIN Home Inspection, explains how sellers can avoid potential conflict with buyers and gain an edge in negotiations.
January 2018 | By Graham Wood
How Much Buyers Put Down on Their Home
The majority of buyers who obtained a mortgage last year made a down payment of less than 20 percent, according to the National Association of REALTORS®’ 2017 Profile of Home Buyers and Sellers. The median down payment in 2017 was 10 percent, according to the report.
The bulk of buyers’ down payments came from their personal savings, but a fraction also came from the sales proceeds of a previous residence or assistance from family or friends. Among first-time buyers, 61 percent made an average down payment of zero percent to 6 percent, according to the November 2017 REALTORS® Confidence Index Survey.
Buyers Made a Low Downpayment in November 2017,” National Association of REALTORS® Economists’ Outlook blog (Jan. 2, 2018)
Daily Real Estate News | Monday, January 08, 2018
Hibbing Real Estate – Listing ID 132059 – (Residential)
This home has more space than it appears on the outside. Main floor has a large living room with a fireplace, two main floor bedrooms and a full bath. Lower level has a huge rec room with a wet bar and fireplace, laundry, .7 bathroom, and the 3rd bedroom (but no egress window). Attached single stall garage plus a 2nd 24×32 garage as well. Central air conditioning, and the brick work is in very good condition.
Thinking about buying? Selling your home? Call Perrella and Associates. Range wide service!
5 Home Accents Interior Designers Loathe
Interior designers are trained to know what works and doesn’t work in a home. Some designers recently advised against purchasing certain home furnishings, whether you are staging a home or moving into one. Avoid these interior design eyesores for the sake of a home’s style:
“I get that lounge chairs are comfortable, but they’re truly the elephant in the room,” Karen Gray-Plaisted, a home staging and decor pro with Design Solutions KGP, told realtor.com®. Huge recliners can cram a space.
“Long, heavy drapes or inner coverings made of lace are done,” says Gray-Plaisted. Instead, she suggests opting for lighter, more modern designs. “Side panel curtains with beautiful hardware hung above the window allows in light and highlights the architectural detail of the windows.”
A matching sofa, chair, and ottoman can make a room appear dull, designers say. “It’s like walking into a sea of wood, which could have looked better with a mix of texture and color if the pieces had been chosen separately,” says Carole Marcotte, an interior designer with Form & Function in Raleigh, N.C. She recommends homeowners buy a few pieces from one furniture set and then mingle in other styles for more contrast. For example, Bee Heinemann, an interior designer with Vant Wall Panels, suggests removing the love seat and replacing it with two chairs from a different collection.
Inexpensive pieces that are poorly made or constructed—using materials such as particle board—will chip, fade, and fall apart. These end up costing homeowners more money in the long run. “Buying furniture you plan to replace every few years isn’t smart,” says Sara Chiarilli, owner of the design firm Artful Conceptions in Tampa, Fla. Instead, designers suggest purchasing high-quality, neutral pieces. Then, add pops of color with pillows or other accents.
“Clients often underestimate rug size and there’s nothing worse than having furniture surround a dinky one,” says Marcotte. “The pieces don’t need to sit completely on the rug—just aim for the front third or half of the chairs and couch to straddle it.”
Source: “7 Things Interior Designers Really Wish You Wouldn’t Buy (You’ve Got at Least One),” realtor.com® (Dec. 29, 2017)
Daily Real Estate News | Tuesday, January 02, 2018
Owners Rush to Prepay Property Taxes Before Losing Benefits
With tax reform signed into law, homeowners in areas with high property taxes are scrambling to prepay their 2018 tax bill in order to take advantage of deductions that will be severely curtailed once the legislation takes effect Jan. 1. The new tax law, which Congress passed and President Donald Trump signed last week, caps the amount of state, local, and property taxes that homeowners can deduct at $10,000.
Some counties already allow for prepayment of taxes, while others are rushing to provide residents the ability to do so after strong demand. For example, local officials in Montgomery County, Md., say they’re fielding requests to prepay taxes for the first time ever, which prompted them to hold a special meeting the day after Christmas to come up with a plan.
“It just never came up [before],” George Leventhal, a Montgomery County councilman, told CNNMoney. “No one was saying, ‘Please let me make early payment of a bill I don’t owe yet.’ Wise cash management suggests you should pay closer to the due date, not farther away. But because of this change, it seems it could be possible that people could derive some benefit and deduct their property taxes for next year in 2017.”
Nearly half of the county’s taxpayers have more than $10,000 in combined state and local taxes, Leventhal says.
Still, there’s no guarantee homeowners who prepay their 2018 property taxes will be able to deduct the payment. On Wednesday, the IRS posted to its website an advisory notice that said prepaying property taxes will work only under limited circumstances. To qualify for the deduction, property taxes will need to be paid in 2017—but they also must be assessed in 2017. That means homeowners who prepaid their taxes based on estimated assessments or who tried to pay several years’ worth of taxes at once will likely still face the new limited deductions, The New York Times reports.
Source: “Homeowners Scramble to Pre-Pay Property Taxes,” CNNMoney (Dec. 27, 2017) and “Prepaying Your Property Tax? IRS Cautions It Might Not Pay Off,” The New York Times (Dec. 27, 2017)
Daily Real Estate News | Thursday, December 28, 2017
HAPPY NEW YEAR EVERYONE, LET’S ALL HOPE FOR A GREAT 2018!!!
Please keep the Gillitzer family in our hearts and prayers.
Protect a Home’s Pipes From the Cold
Cold weather can put your home’s pipes at risk of exploding. Worst case scenario: Pipes can fill up with so much ice that eventually they burst and then flood a home.
But there’s plenty you can do to keep your pipes safe in the winter, as a homeowner or landlord. Precautions should be ideally taken in the fall, but if you forgot, better to take steps now than none at all.
HouseLogic offers the following tips for protecting your pipes from bursting, including:
Turn on your faucets.
When temperatures have dropped into freezing, turn on your faucets both indoors and out to keep the water moving through your system. HouseLogic recommends aiming for about five drips per minute.
Open cabinet doors.
Open any cabinet door covering the plumbing in the kitchen and bathroom. The home’s warm air can help prevent pipes from freezing.
Wrap the pipes.
If the pipes are already near freezing, wrap them in warm towels to help loosen the ice inside. Cover them with towels and then pour boiling water on top.
Shut off the water.
If your pipes are already frozen, turn off the main water line to the home immediately. Shut off any external water sources, such as garden hose hookups, HouseLogic recommends. This also helps after the ice inside your pipes thaws because you don’t want the water to flood your system.
Read more tips at HouseLogic.
Source: “5 Tricks to Keep Your Pipes From Exploding This Winter,” HouseLogic (December 2017)
Daily Real Estate News | Wednesday, December 27, 2017