Barb Szabo's Blog

Home warranties have been popular for many years here in Cleveland Ohio. For those who do not know what they are, they are insurance policies for a home buyer or seller. Sellers can sign up for one while their home is listed and a buyer can accept the one offered by the seller. If one is not offered, the buyers can negotiate it in the contract, and it can be paid by either party, but most often it is paid for by the seller. If the seller will not provide one, the buyers can buy it themselves.

Every home warranty plan differs, and that is the point of this post. Like any other business, there is competition so one company may offer something another company does not. In general, home warranties will cover, heating, cooling, plumbing, and appliance repairs. I have not heard of one that will cover a leaking roof nor a leaking basement. Some will cover the inside damage a leaking roof may cause, but there are limitations.

Each policy will carry a deductible for the buyer. I have seen them as little as $50 but the average is closer to $75. Many will have strict provisions in place. One of the most common ones I know about is that the buyer should always call the home warranty company FIRST, before arranging for repairs. The company will want to approve the repair company and some can even refuse the repair if the new homeowner does not follow protocol.

I know of one plan that covers all appliances except the washer and dryer. The extra cost for those items is around $80.

My point is that all these companies have different requirements and policies.

Most of the sellers I deal with will offer a home warranty plan. It's attractive to a home buyer and somewhat comforting to know that they have a little extra coverage during that first year of home ownership. However, since they vary so much, I think it's a good idea to review the home warranty before you agree to it.

It is a good idea for buyers to make the review of the home warranty a contingency of the contract, in the same way you would make an offer contingent upon review of HOA docs or condo declarations and by laws. It will help buyers know specifically what is covered and what is not.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Over the years I have listed and sold many homes where there has been an HOA, a Homeowners Association.  This article is specific to single family homes. HOAs are typically formed by the builder/developer to set forth the expectations for the neighborhood. I live in a neighborhood with an HOA and these are some of our restrictions:

no sheds
no RVs, boats, in the driveway overnight
permission is needed for exterior projects
no signs other than for sale signs

There are provisions in place if our HOA wants to make changes, If  for instance, there was an indication that many owners wanted to put up sheds, there would have to be an agreement from at least, I believe 70% of the homeowners. The HOA also has the right to place a lien on our home if we do not pay our annual dues.

Many HOAs can and will sue a homeowner that does not comply with the rules and regulations, therefore, it is VERY IMPORTANT that buyers make their offers contingent upon the review of the HOA documents ALONG with the current financial statement. Some buyers might ask why a financial statement is important  to review. It's important so that you can see what the balance is in the reserve fund and how the money has been spent.

Over the past few years, our HOA has been getting bids on cleaning out the retention basin in our development. It may seem like a small task, but it actually cost about $17,000. Our HOA has been well managed, therefore they planned for this financially and were ready to pay for this improvement.

So if you are buying a home with an HOA,  make sure you request and review any documents regarding the HOA and if you are a seller, please make sure you have the documents readily available for your prospective buyers.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Lately I have found myself showing quite a few condos.  Buying a condo is VASTLY different from buying a single family home and it requires an extensive amount of research. Frankly, I am amazed when I call listing agents for information that should be readily available, or at least in their listing folder, and my questions are answered with an "I don't know".

These are just a few of the questions I want answers to when a client is interested in buying a condo:

Is there a copy of the most current financial statement? This is a must have so that you can see how financially healthy the association is.

Is there a copy of the declarations and by laws with all current addenda? This another must have so that you know what you can and cannot do without approval from the board. This is especially important if changes have been made to items that the association will cover. For instance, many condos that were built  20 or 30 years ago covered the driveways. Over time they found it too be too expensive so the bylaws were amended to show that the association would no longer cover the driveways.

Have there been any notifications of assessments? This one is huge and the best example of this is when the complex starts needing new roofs. If the condo you want to buy was built in 1986 then there's a good chance it will need a new roof soon. Is there enough money in the reserve fund to cover the ongoing roof replacement? If there is not enough, each homeowner may be assessed to help pay for the roof. This could be $1000 or it could be $5000. Best to find this out before you buy a condo.

How many units total are there in a particular association? Contrary to popular belief, if there 300 condos in one complex, you cannot assume they all belong to the same association. There are several complexes that I know of that have different HOAs.

Lastly, if you cannot obtain these documents before you make an offer, then be sure to make your offer contingent upon the review AND approval of them.

A condo can be a wonderful place to live....you just need to get the facts before you buy!

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Do You Really Have to Attend The Home Inspection?

I'm sure you probably know that my answer to this is yes! Of course, I know that it's not always possible for out of town clients but if you are local and buying locally, I think it's must to attend your home inspection.

I attend all home inspections when I represent the buyer so that I can better understand a problem if one is found and so that I can communicate that to the seller's agent.

I am convinced that had I not attended some inspections in the past, the problems found may have been blown out of proportion. Many inspectors take pictures today, but even that is sometimes not enough to adequately describe an issue.

As a buyer, when you attend your home inspection, you see with your own eyes what the inspector is talking about. This is critical when it comes to reviewing the problems and deciding which ones you want remedied.

Ultimately, you need to rely on the inspector, however, what you see with your own eyes can be very helpful.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

A few years ago I was showing a home to a young man and his girlfriend. There was one home in particular that they really liked. They wanted to go back for a second look, but I could not accommodate their time so he said to me "Can you just give me the lock box code?"

The answer then, now, and forever will always be "NO".

The above situation was at a time when we didn't have nearly as many short sales and foreclosures as we do now, with not nearly as many vacant homes. I see a growing attitude by some buyers that it's o.k. to enter these homes without permission, or to try to get the code and go in at their leisure.

A home is a home is a home and every home has an owner, be it a a normal seller, bank, estate, or corporation and as such, deserves to be respected in every way possible. Below is a recent warning issued by the Ohio Real Estate Commission.

Ohio Real Estate Commission issues warning
Warning from the Ohio Real Estate Commission: Never Provide a Lock-Box Code to a Potential Buyer

The Ohio Real Estate Commission considers providing a potential buyer with a lock-box code and allowing them to view a property unattended a serious offense. In fact, the Commission recently ordered a licensee to serve a 10-day suspension, pay a $600 civil penalty, and complete three hours of education in ethics for providing a lock-box code to a client which resulted in the client's unsupervised entry into the property.
A licensed real estate agent should always be present at showings and should never provide a lock-box code to a potential buyer. If you are unable to attend a previously-scheduled showing, you should have another licensed agent attend on your behalf or simply explain the situation to your client and reschedule the showing.

So if you ask me for the code to a lockbox and I say no you will know I have good reason for my answer.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

How do you decide between 2 homes you like?  With so many homes available today, this can truly be a reality for many buyers. I am working with a couple now who have found 2 homes that they like. Which one to buy??

Most buyers will turn to their agent and say "What do you think?"

Of course, no one can decide for them but here are some suggestions/advice I usually give.

When you have some uninterrupted time, take pencil to paper (or fingers to the computer) and list the pros and cons of each home. Probably sounds old fashioned but it really can help. If it's a couple buying the home, they may be surprised to find out what the other person is thinking. What is important to one may not be as important to the other. So with this exercise, you may find out more about your priorities and the "right house" may be more obvious.

By the time you are ready to buy a home, most people have settled into a routine. If you have kids you may be spending the majority of your time in the kitchen and family room. Are these rooms really large enough to accommodate our family as it grows? Do we really have enough money to finish the basement?

Sometimes a buyer will be farther from work than they really want to be but because they love the home, they will buy it. That's fine, but again, you really want to be sure that the 40 minute drive to and from work every day is something you really won't mind.

Lastly, what are the maintenance items that you see in your future? Of course, there is the regular wear and tear, but will there be other major updates required down the line? roof? driveway? furnace? windows? These answers should definitely appear on your pro/con list.

Choosing between 2 homes is a good  problem to have even though it may not seem like it!

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Shortly after a contract is signed, title work on the property will begin. Soon after, both the buyer and the seller will receive a letter from the title company letting them know that Closing Protection Coverage is Available to them.

Sarah Minneman, a title rep from North Star Title was kind enough to forward the following explanation for Closing Protection Coverage. In my opinion it is a small price to pay for peace of mind until your transaction is closed.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Two Important Issues for Home Buyers

Below are 2 issues you should pay close attention to if you will be buying a home soon.

The re-inspection of repairs

The walk through just before closing.

Most buyers know the importance of having a home inspection.The buyers I represent usually have a general home inspection, pest inspection and a radon inspection. There are often problems found after a home inspection and the buyer will then remove the home inspection subject to the sellers making specified repairs. Sometimes the repairs are minor and sometimes not. When I write up such a removal I make sure to put in a deadline by which the repairs must be completed. When the repairs are completed, I make it clear that I will be coming back with the buyers to inspect the repairs to make sure they have been completed to the buyer's satisfaction.

The walk through is different than the re-inspection of repairs. The walk through is done 1-2 days before closing to inspect the home (and before the buyer deposits the remainder of their down payment) to make sure it is in the same condition as when it was purchased. It is not an opportunity to re-visit defects of which the buyers is already aware. If, however, the basement has sprung a leak, that is a problem and we will be re-negotiating.

In my opinion, and invoice for a repair is not enough. Even if it is a seemingly minor repair, it is best to go back and see with your own eyes that it has been done to your satisfaction.

A final walk through should always be made a part of the contract and carried out. Some homes are under contract for 45, 60 or more days, and are often vacant, so it just makes sense to see the house one more time before you close.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

You Bought A House, or Did You?

Although this market has and continues to have its challenges, we still occasionally see some "hot " properties. What's a hot property? A home in good condition in a nice location and well priced.

These homes will typically get a lot of showings and there will likely be multiple bids. Yes, even in this market! Many buyers and sellers are motivated by the tax credit and are putting their "best foot forward", viewing this as a great time to buy or sell.

So you find a great home and make a WRITTEN offer. Your agent then gets that offer to the listing agent. This could be by e-mail, fax, or even hand delivered.

Your agent receives an e-mail counteroffer from the listing agent. You are happy with the terms, tell your agent that you accept and instruct your agent to notify the listing agent that you accept. Your agent does so.

You are thrilled because you now believe you have purchased a home.

But have you??

Here's my answer. Maybe. Maybe not.

In order for an offer to be fully accepted, it must be signed by all parties with initials by any material change and delivered to all parties. Delivery can be through the agents for the buyer and the seller.  Until and unless this has been done, there may not be a contract.

It is entirely possible that even though you have a verbal or e-mail acceptance, another offer may come in. Unless the contract has been signed, initialed, and delivered to the seller, the listing agent has a duty to let the seller know that another contract has been submitted. You may then be in a multiple offer situation.

So when a buyer says to me "Barb, now that we have negotiated an offer, the seller can't sell it to anyone else can they?" My response is, until the contract is signed, initialed, dated, and returned to me, the seller may very well sell it to someone else.

This can and does happen, and buyers get very angry when it does. So if you see a home that you "just love", and you are ready, willing, and able, know that time may be of the essence. Make yourself available to meet with your agent to sign the necessary papers, and to initial any agreed upon changes in a timely manner.

Laws may vary from state to state so if you have questions about your contract and what is considered legally binding, consult a real estate attorney.

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.

Buyers: The Time To Search For a Home Inspector is Before You Buy a Home

Most buyers buy a home in this order:

Get pre approved for a loan
Find a great Realtor (me perhaps)
Look at homes that meet your needs
Find your dream home and make an offer, contingent on one or more inspections.
Offer is accepted

It is usually only AFTER all of the above that a buyer begins to think about which inspectors to choose. I would propose this:

Just as you talk to more than one lender, and more than one Realtor, you should talk to more than one inspector. And like the lender and Realtor you talk to BEFORE  you purchase your home, you should also talk to a few inspectors BEFORE  you buy your home. You are preparing with the right Realtor, the right lender, why not the right inspector? Don't wait until your contract is closed to start looking for a home inspector.

Choosing a home inspector is not something to be done lightly. You need to ask him or her some questions. Here is a list to get you started:

Are you a member of ASHI?

How long have you been a home inspector?

How many home inspections do you conduct per week, or month or year?

Are you certified for home, pest, and radon?

With respect to your radon monitors, when did you purchase the one you will use to test my home?

When was the machine last calibrated?

Do you carry errors and omissions insurance?

How long after you inspect my home can you be held liable if you missed something? (for some it is only a few months)

If you do miss something, what is the dollar amount for damages for which you can be held liable? (for some it is only the equivalent of the cost of the home inspection)

How long will it take for me to receive my inspection report? Can I receive it electronically?

Do you take pictures as you inspect the home? If not, why not?
If there is an issue, are you willing to come back to explain it to all the parties involved?

I'm sure that more questions can be added to this list but this is a good place to start. Another great resource is your Realtor! Your Realtor wants things to go smoothly but they do not want you to purchase a home with which you are not satisfied. I have seen many great inspectors in action over my 23 years and I will gladly give you at least 3 names to start you off.

It's all about being prepared!

 

 

If you would like to buy or sell a home in the southern communities of Cleveland Ohio, please call me at 440-263-7496, or you may want to visit my website for more specific information on the communities I service: Brecksville Ohio Real Estate, Broadview Heights Ohio Real Estate, North Royalton Ohio Real Estate Independence Ohio Real Estate, Seven Hills Ohio Real Estate, Parma Ohio Real Estate, Parma Heights Ohio Real Estate and Middleburg Heights Ohio Real Estate.  Information is obtained from Neohrex (Northeast Ohio Real Estate Exchange) and is deemed reliable but not guaranteed and should be independently verified. Properties subject to prior sale, rental, or other status changes. All properties that are advertised as being listed or sold by Barb Szabo are in conjuntion with ReMax Trinity.