Many of the things discussed here are the direct result of attending inspections of sold homes. Since these inspections have become an integral part of almost any sale, it seems appropriate to review how to select a house inspector. Before you select an inspector review what the objective is you are trying to accomplish. If trying to determine if there are problems in a home you do not know about, an inspector should find them. If you know of some problems or have questions, like how long before I have to replace the roof, an inspector should help. If hoping to find things wrong so you can negotiate the price further, I suggest you are not ready to buy and can assure you the inspector will resent being used. House Inspectors may be builders, or contractors looking for something to do since they retired. Some may be members of a national society, others may not. I can assure you there willbe a wide range of charges for the service. To select an inspector check with people you know to see if they have a recommendation. Listen to what they say. Just because they liked the inspector does not mean you should select him or her. Most people like their inspector until they find out something did not get pointed out. Ask questions of the person giving the referral. How did they check the roof, wiring, plumbing, furnace and other major components of the house? How long did the inspection take? Do you get a written report upon the conclusion of the inspection or are you going to have to wait several days for it to get mailed? When you talk to the inspector, ask questions that you feel will give you some idea of how long the individual has been doing inspections and how frequently they are taking classes to keep up to date with the changes that are taking place in the housing industry almost daily. You do not want them learning on your time. What they are inspecting is expensive but it could be even more expensive to fix something that went undiscovered. If you have any questions send me a note via E-mail.

How do you survive the inspection? The first thing you must do is attempt to understand the buyer's position. Is this an attempt to extend the negotiating, are these minor problems, was the problem visible at the time the offer was made or did the buyer make a good faith offer and have an unexpected problem occur? If the buyer is simply looking to extend the negotiating process and used the offer to close out any other buyers you want to make sure any other agents who had buyers know there are potential problems. This way if the buyer becomes too unreasonable you may have other options. When a buyer requests work be done, it should be in "either-or" terminology. Either you fix the problem or I do not buy the house. If the issues are minor or were visible I generally have little sympathy for the buyer's concerns although it may be more the selling agent's fault than anything else. If all the buyer saw when he or she came through was the wonderful decor or the beautiful view they may have missed a bad seal on a window, galvanized plumbing or a roof in need of repair. The key to working this out may rest more with your listing agent than anything else. Good listing agents can usually work with the other agent or sometimes directly with the buyer to find ways to resolve these issues inexpensively. So, as long as you keep your pride out of the way the deal can go thorough. Should the problem be a major one and will not go away, the next inspector will find it. The next buyer will be equally insistent that it be repaired or a credit given. Hopefully, your listing agent will be able to work cooperatively with theother agent and the buyer to minimize the damage to you. If you have any questions send me a note via E-mail.

In almost all cases, when you sell a home, the seller is required to provide to the purchaser a policy of title insurance. The cost is not cheap. It is $500.00 on a home sold for $100,000.00. Title insurance is designed to provide a buyer protection against many legal problems that surface regarding the ownership of real property. It insures the policy holder (the buyer) that in the event a claim is made against the property it will be carefully reviewed and in many cases disposed of at no charge to the buyer. There are several types of title insurance but most can be divided into policies with standard exceptions and those without. The "Standard" exceptions are: The rights and claims of parties not shown on the public record, encroachments or other matters that would be disclosed by an accurate survey, mechanic's liens, building and use restric tions, taxes or assessments not shown on the public record, the marital rights of a spouse and any mineral right agreements that are not recorded. A policy without standard exception can remove these concerns if proper additional documentation is obtained from a seller. These documents may be as simple as a mortgage survey and sworn waivers or statements about work done on a house before closing. On occasion, problems are a little more difficult to resolve despite the type of policy required. There may be Federal or State tax liens, mortgages showing up that were paid off years ago, (in one case the bank had gone out of business so there was no one to call for a payoff) or litigation against a homeowner's association to which a property owner belonged and was an officer. There have been instances where the amount owed by a seller exceeded the sale price of the house, or a lien for attorney fees were filed on the wrong home. All these things and many more are what title insurance is designed to discover before a closing and take care of after. When you buy, always insist on a policy. If you sell, be prepared to pay for one. They are a good value considering what they cover. If you have any questions send me a note via E-mail.

A specific problem title insurance is designed to cover if not disclosed on a survey is called an encroachment. In a recent sale this problem was disclosed before closing on a survey and became a problem. It seems that when a homeowner built their garage, part of the concrete was on the next door neighbor's property. Encroachments are not uncommon. They can be from fences, buildings and driveways. The problem is that the person encroaching on the other may be able to claim ownership of the portion of the property they are using that they do not own. This is through a procedure called adverse possession. Under this legal procedure, the person taking the land can do so claiming their use has been open and constant for an extended period. Since the real owner never contested the right of use by the neighbor the courts are able to award ownership to the person who did use it. To avoid adverse possession claims, owners must prove that they were aware of the encroachment and that it occurred with permission. This is best done with a written agreement between the parties. In doing so the person encroaching can continue to use the property without having to tear up a drive or moving a building and the rightful owner eliminates any possible claim that could cost him or her the land. Since there is mutual benefit to both sides there seldom is a problem. In one instance I know of, a party who refused to sign such an instrument was forced to tear up part of a drive that was encroaching on his neighbor's property. My experience occurred when a copy of an old survey was provided to a perspective purchaser and his legal counsel advise him of the possible consequences if it was not addressed. We were fortunate in this instance because standard practice is to give the buyer a copy of the survey at the time of closing, certainly not soon enough to avoid a problem if this is going to be an issue for the purchaser. To avoid such a problem, I suggest you ask for a copy of an old mortgage survey if one is available. With Seller's Disclosure now the law of the land such a survey will help you to properly complete the question about encroachments and head off a possible problem. Since this is a legal matter, always seek the advice of legal counsel if you suspect a problem. If you have any questions send me a note via E-mail.

Frequently sellers get to a closing and find an extra amount of money being deducted from their proceeds they were not aware of called a special assessment. This is a lien against real estate usually used to pay for a major expenditure by a municipality to improve the property. They can be for sidewalks, roads, water and sewer installation or replacement of any number of other things paid for by the city that are over and above normal maintenance. Special assessments are liens against the property creating what is called a "Cloud on Title." Whether you as a homeowner have ever used the improvement, "Specials" are attached to the property at the time they are assessed, not when the work is completed. This means if you list a home for sale on Jan. 1, sell it on Jan. 15 and set it to close Jan. 30, if the "Special" is assessed on Jan. 29, it will usually have to be paid off by the seller. On any sale where there is a mortgage, the mortgage company will want it paid off or subordinated so they have a "First Lien" on the home. A "Special" prevents this because it is assessed before the mortgage is issued. The municipality does not care who writes the check. Subordination is where the municipality agrees to put the "Special" in a second position to the mortgage allowing the assessment to be assumed. I have yet to run into a municipality that will subordinate a lien. To avoid any unpleasant surprises, make sure you are aware of any assessments placed against your property. Encourage your REALTOR to run a title check as quickly as possible to check. If you have any questions send me a note via E-mail.

Ever since a house slid down a hillside in California several years ago and it was determined that the house was built on fill, the issue of liability has been hotly debated. Michigan sellers have an important legal obligation to disclose pertinent facts and defects to a buyer thorough a state mandated Seller Disclosure Form. What kinds of defects are we talking about? Leaking plumbing, inoperative appliances, electrical circuits, furnaces, humidifiers, and leaking basements are just some items that a buyer has a right to know about says the Michigan Judicial System. Any hazardous chemicals such as asbestos, Urea Formaldehyde Foam Insulation, lead water pipes and Radon Gas are things a buyer is expected to be told about. The importance of disclosure to a prospective purchaser is not to be taken lightly. In the case of the house in California, the settlement to the buyer was greater than the purchase price of the house. For concerns about this issue send me a note via E-mail. Remember however, I am not an attorney, legal questions require the opinion of qualified legal counsel.
When selling a home, you need to consider that there may be a mortgage appraisal on the property. Unless you sell your house for cash, land contract or on an assumption the lender giving the new mortgage will want to make sure the collateral(house) supports the debt(mortgage). In most cases this means it must appraise for the sale price. When a buyer goes to a bank or other mortgage lender, an appraisal is ordered on the house. The appraisal must support the loan to value ratio the buyer is applying for. If putting 10% down the loan to value ratio must be 90% or less, if 20% down the ratio has to be 80% or less. If the home appraises for more than the sale price there will be no problem. Should the home appraise for less, the purchase price the sale could be in jeopardy. To avoid problems with a mortgage appraisal there are several things that can be done. First, price your home intelligently. Secondly, make sure your agent understands how to work with an appraiser before the appraisal is turned in. Once the results of an appraisal are known, not only will you have trouble with the appraiser trying to get anincrease, but you will also raise doubts in the mind of the buyer on the wisdom of his or her decision to buy. The agent listing the house must be in contact with the lender and the appraiser at the time the mortgage application is taken. Some lenders have their own "In-house" appraisers, others use "Fee" appraisers or independents. Both use the same information, usually reports of sales from the local multiple listing service, the same facts that real estate agents have. You are not better off to order an appraisal first. Until a buyer is obtained, you do not know which lender they are going to use and cannot require them to use the one where you got the appraisal. Appraisals for mortgage purposes cost from $200.00 and can vary based on the type of loan the buyer is applying for. Also, I have found that appraisers want to make the deal so if there is a buyer they may be more generous than if there is not. Most mortgages are not held by the lender. Instead they are sold off in the "secondary" market to investors in blocks totaling millions. As a result, the lenders and the appraisers they use, must usually conform to guidelines established by the investors. It is not true that appraisers are conservative with their figures but they must be able to prove why a property is worth a certain amount. The S & L scandal resulted from lenders and appraisers being too liberal. The guidelines used cover a variety of areas. It is my understanding that some of them are: area, style, bedrooms, basic features, and date of sale. Common sense would suggest that homes in the same city must be used, but in an area like Birmingham they must sometimes use houses in the same subdivision. Sales are not to be more than six months old and must be closed. Ranches should not be compared to colonials, and homes with basements should not be compared to those without. It is even preferred to compare homes with similar numbers of bedrooms because homes with four bedrooms will attract a different buyer than a two or three bedroom home would. Guidelines change, too. Appraisers have been asked to start providing information on current listings so reviewers can see if values are increasing or declining. Starting in 1991 most real estate transactions require appraisers who have special training or certification instead of simply a real estate license which is currently all that is required in Michigan. Because an appraisal can have a direct impact on the sale of a home, always make sure your home is well priced when you put it on the market and that you have an agent who understands the appraisal process. Working with a lender and the appraiser are two critical functions of an agent. Select a seasoned professional. If you have any questions please send me a note via E-mail.

Whenever you think of selling your home the question of market value arises. Unfortunately this can be a very subjective figure. There are actually six different values that can be placed on a home and none of them need be the same. They are: Remember however, a house is only worth what a buyer is willing to pay for it. If you have any questions please send me a note via E-mail.

If you lived in the south you would automatically be concerned about the presence of termites in your home. In some states an inspection is actually required and repairs mandated before a property can be sold. Michigan has termites, too. There are known infestations of termites in Southeastern Michigan and the results of purchasers finding such problems have resulted in significant awards from sellers who knew they were there. Termites are known for their affinity for wood. Unlike many insects, termites attack wood that is not already damaged by dry rot or dampness. The most tell tail sign of a termite investigation is mud tubes. Termites use these tubes to travel across areas that they cannot burrow through. To inspect for termites, go around the perimeter of your house both on the inside and the outside. If you see a mud tube going across the brick or cement, or you see tubes on the inside traversing a steel beam you may have a problem. It is unwise for a homeowner to try to rid a home of termites. The destruction of the tube will not eliminate the problem. The termites will simply repair the break. You need to find the nest and destroy the ability of the queen to keep reproducing. You also need to determine how much damage has been done to the home. Remember, the tube is only one small portion of where the termites have been. Once inside they may have traveled to every room. While visually you may not see any damage, you may have a serious problem because of a termite investigation. Only a qualified exterminator should be called upon to rid a home of termites. This will not only ensure you that the pest is removed, it will also protect your neighbors. If you should determine that you have had such an infestation you should consult with a qualified builder to determine how the damage should be repaired or send me a note via E-mail.

We are seeing an increase in the requests for a "Pest Inspection" in sold homes. The infestation of a home can pose a significant threat to the occupants or structure of a home. The pests may be bugs or animals and should be eliminated. Remember, in the case of most pests, the least-toxic treatment should be the method of last resort to eradicate. In many cases the use of chemical treatments is more dangerous than the presence of the pest. If you have any questions send me a note via E-mail.

Market conditions are complex. As a result pricing strategy is more complex than ever. In a balanced market, homes that are well priced and in good condition sell quickly. The market is, however, very unforgiving for the home that is not introduced to the market at the right price and in good condition. Homes that are five to ten years old do not seem to grab the imagination of those looking for a home. For those homes in the last category, there is little you can do. While your home may not be out of date it is in competition with new construction that is offering the latest in appliances, etc. Price it well, make sure the home is in good condition and be prepared to either lower the price or hang in there. Buying a home is more an emotional decision than a practical one(the decision to look is practical, not the decision to buy). Experience showing us that regardless of whether the home is properly priced or if it has been on the market for longer than two and a half months, buyers are very cautious about making an offer. This means that starting high and then reducing the price after 60 days can be ineffective. Buyers do not want to buy a house that other buyers are not interested in. There is always the concern that they would have the same problem should they need to sell. With other homes to select from this causes the now well priced home to continue to sit. If you have any questions send me a note via E-mail.

Selling a house in the winter requires a different marketing approach. Here are some ideas.

When leaves fall it is not uncommon for gutters to get clogged. As late in the year as you possibly can, clean them out. Full gutters will increase your risk of ice dams forming, causing water to get under your shingles. Once this occurs it will either rot the roofing materials, come into the home and ruin plaster or both. Once ice damming occurs there is little you can do until next spring. When trying to sell your house the cost of waiting or the cost of correcting the problem will be high, so do it now.

It is wise to have your windows washed in the late fall. This includes storms. When buyers look through streaked windows out over a white lawn of snow, the appearance can be very unappealing and even distracting. Even if you are not going to sell your home, you will appreciate the view. Do not presume that prospects will be looking in the evenings or that closed window treatments will hide the problem. Make sure the sills and frames are in good repair. Little things like this can be a plus or minus to the critical eye.

Listen to your furnace. With the need to heat the house comes the constant running of the heating system. Listen for squeaks, or other obvious noises. Noise from a furnace or boiler may not indicate a serious problem but remember they were not designed to make noise when they were built so load sounds will be an indication that something is not quite right. A concerned buyer will always assume the worst.

Winter is when you test the storage capabilities of a home. Do not allow the garage to become cluttered with yard items. Everyone's needs will be different but you want to offer as many possibilities as you can. Limited space to move around in a garage reduces those options. Do not clutter up the basement as you look for a place to store bikes, etc. Parents frequently look at a basement as an alternate play area. If it is full with stuff it can give the impression that the house does not offer this possibility.

When selling your home, it is the impression you create that impacts the buyer. You may not get a second chance to explain why things are the way they are. If you have a front storm door take out the screen and put in the storm. If you are expecting people or your REALTOR is meeting someone at the home, an open door to a lighted interior is very inviting. You want to make sure that all the lights work. They do not all have to be on but it is not going to help if thebulbs are burned out. Have one light on in each room. After dark it is difficult to see into a room to find a switch. Do not presume that the agent will be able to find them or that they will be the first person to enter. In work areas like basements the brighter the better. In areas like bedrooms, etc. table or floor lamps cast a softer light than overhead lights. If you have outside lights make sure they are working. The prospect may not go outside to see the yard but they will look.

If the house has been closed up for a while having a light scent of flowers is nice. Do not make it too strong or musky. You want prospects to remember the house because it was attractive and suited their needs, not because their clothes smell.

Be conscious of the condition of your walk and front porch. You do not want people tracking in snow nor do you want them to ruin a pair of shoes trying to get to your house. A small area rug inside the front door to wipe feet is a good idea. If you want people to take off their shoes, make sure the interior of the homes shows that it is warranted and provide them with a place to put them once they are inside.

Since it is harder to take a walk when someone shows the house you might find yourself home for showings. If so, stay out of the way. They are there to see the house not to see you. If they like the house they will be back to see all the extras. Selling your house is "Show Biz." Let those in the "biz" do the showing. That should be one of the reasons you hired them. If

With Summer comes golf and vacations and time away from home doing things with the family. However, do not forget the house. Sometimes the little things can make a big difference when your trying to sell. Here are a couple hints.

Keeping the grass mowed is an obvious task but there are other things you can do that are important. When we have our summer storms, get out the next day and check the shingles on the roof. Even if you do not find any on the ground, some may have been lifted up and could be the source of a leak during the next storm, or cause for concern during an inspection.

Gutters and gardens are also areas requiring constant attention during the summer. Cottonwood trees and maples frequently clog down spouts causing them to overflow, damaging eves and perhaps allowing water to get into a basement. Weeding, an unpopular but necessary activity, can keep the exterior looking sharp, creating a great first impression as people come up your front walk.

One additional idea. When you drive by another house for sale, look at the exterior of the house. Pick out what you like and do not like, then take a serious look at your house. Change what you do not like, accent what you do. If you have any questions send me a note via E-mail.

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©1996 Bob Taylor