Mid Missouri Real Estate BlogRecently posted or modified blog posts by tag - Escrow: Now What?https://www.heartlandnetwork-midmo.com/blog/Copyright HeartlandNetwork-MidMo.com2023-04-27T12:40:01-07:00tag:heartlandnetwork-midmo.com,2012-09-20:2269012 Steps to Take After Securing a Contract on a Home [INFOGRAPHIC]After your efforts <a href="https://www.heartlandnetwork-midmo.com/buyers/" title="Home-Buyer resources" target="_blank">preparing to buy a home</a>, interviewing REALTORS®, perusing homes online, touring homes in person, <a href="https://www.heartlandnetwork-midmo.com/blog/tag/making-an-offer/" title="More blogs on Making an Offer" target="_blank">writing an offer</a> (or two) on homes, your offer to purchase the home that is just right for you has been accepted by the seller and you are now officially under contract. Oftentimes, homebuyers are faced with the question of: <a href="https://www.heartlandnetwork-midmo.com/buyers/escrow-now-what/" title="Escrow: Now What?" target="_blank">What do I do next?</a>
There are some important steps you need to take from the time you secure the contract to purchase to the time you sign the closing statements and are handed the key to your new home in the Mid Missouri area. When working with our full-service team, you will be guided through every step of the process by both your Buyer Specialist and your dedicated Transaction Coordinator. Even with this guidance, it is always helpful to know what to expect during the contract-to-close period so you can be prepared for what may be expected of you. Let’s take a look!
<img src="https://assets.site-static.com/userfiles/4283/image/Blog/Infographics/12_Steps_to_Take_After_Securing_a_Contract_on_a_Home_INFOGRAPHIC.png" width="672" height="2880" alt="12 Steps to Take After Securing a Contract" title="12 Steps to Take After Securing a Contract" />
Staying on top of each of these steps will help to ensure that the purchasing process flows smoothly. Also, working with an experienced real estate agent or team as well as a trusted, local lender is the best way to ensure that the contract-to-close period moves along without unnecessary hiccups.
Buying a home can involve many hurdles, but the end result is a place that you can call your own. We have celebrated with many home buyers as they accomplished their dream of home ownership, navigating the obstacles together.
Heartland Network-Mid Mo makes the home-buying experience in the Mid Missouri area as easy as possible, with our expert team of real estate specialists. Not only will you have a dedicated, experienced Buyer Specialist in your corner, you will enjoy the added benefits of a committed Transaction Coordinator to help facilitate your contract-to-close period and keep things on track. Contact us today to see how our team can assist you in finding your next home! Simply fill out the form below for a FREE, no obligation buyer consultation with a member of our team. Come see what our “Simply Exceptional Service” looks like!2022-12-28T13:45:00-07:002023-04-27T12:40:01-07:00Jen Smithtag:heartlandnetwork-midmo.com,2012-09-20:229688 Things You Should Know About the Appraisal Process<img src="https://assets.site-static.com/userfiles/4283/image/Blog/Buyer_Blogs/Appraisal_Process.png" width="750" height="275" alt="8 Things You Should Know About the Appraisal Process" title="8 Things You Should Know About the Appraisal Process" />
Once you find the perfect property and <a href="https://www.heartlandnetwork-midmo.com/buyers/escrow-now-what/" title="Under Contract Resources" target="_blank">enter into a contract to purchase it</a>, a crucial step is obtaining a home appraisal. This is a significant milestone when trying to get a mortgage. Ordering the appraisal is necessary for an appraiser to provide an opinion about whether the purchase price aligns appropriately with the property's value.
It is crucial that you have a clear understanding of how the appraisal process works and why it's so important for the homebuyer. Today, we'll discuss 8 things you should know about the appraisal process.
#1 What is an appraisal?
As we mentioned, the appraisal process starts after you sign a contract to purchase a property. Put simply, an appraisal is used to assess a home's value and is conducted by an unbiased third party. These assessments are completed by certified professional or state-licensed appraisers whose job it is to provide opinions on how much a property is worth at a given moment in time.
Appraisers do not represent the seller or the buyer and are usually chosen by the lender. Since the lender loans you the money to purchase the house, they need to know that the risk they are taking is reasonable and that the house is worth at least as much money as they are loaning you to buy it.
#2 How does the appraiser determine a property's value?
Appraisers gather information from several different places to provide their best opinion as to the value of the home at that moment. Here are some of the top factors that home appraisers take into consideration to determine a property's value:
Location
Age
Style, size, and number of bathrooms and bedrooms
Condition
Additions, improvements, or renovations
Current real estate market
Recent sales of comps or comparable properties
<img src="https://assets.site-static.com/userfiles/4283/image/Blog/Repeating_Thin_Banners/Determine_Home_Value.png" width="2250" height="400" alt="What an appraiser uses to determine home value" title="What an appraiser uses to determine home value" />
#3 How can a buyer prepare for the appraisal process?
The first step you should take to prepare for an appraisal is to include an appraisal contingency in your contract offer. This is crucial because if the house you want to purchase does not appraise for your offer amount, this contingency protects you financially and allows you recourse and protections.
Another great way to prepare before ever placing an offer is to research your desired area. Knowing what homes are going for and having a REALTOR® pull home values and conduct comparisons of recent sales help you go into the home-buying process educated about the area's price point. This research is also useful to prevent difficulties with an appraisal, as the home value and area should coincide with the offer you place on the property.
#4 How much is a home appraisal?
In general, a home appraisal costs between $350 and $400 and is something you pay at closing. However, this can vary between lenders, so this is something you should always ask a lender before choosing the right one for your needs.
#5 What is the purpose of the appraisal?
The appraised value of a property impacts many important factors of the loan underwriting process. When buyers finance over 80 percent of the property's total value, they are often required to carry private mortgage insurance (PMI). Hence, a home's appraised value is not only crucial for how much the lender will offer but also determines the loan's terms.
Aside from buying a house, appraisals are also used for the home in other ways. For example, when determining replacement value, insurance value, and the assessment value for property taxes.
#6 What happens when the appraised value is lower than the contract amount, but I still want the home?
If a home's appraisal value is lower than the contracted purchase price, then your REALTOR® will need to step in and try to negotiate the home's selling price with the sellers and listing agent on your behalf.
When in a seller's market, there are more buyers searching for homes than there are homes for sale, so it's not uncommon for sellers to receive offers that are over the listing price. If you find that this is happening, then you should understand there's a possibility that the home will not appraise at a high enough value to cover the required purchase price. This means if you still want to purchase the home, you may have to arrive at the closing table with more cash for a downpayment to cover the gap between the contracted purchase price and the property's appraised value.
#7 What happens when the appraised value is higher than the contracted amount?
Congratulations! If the appraisal comes in a higher value than the contracted price, you've just earned instant equity. In other words, the house you are buying is worth more than what you are going to pay, and this is always great from an investment perspective.
In this situation, many buyers become concerned that the seller will ask to negotiate the contract to depict the higher appraisal value. However, this cannot occur for several reasons, mainly because you are already under contract at an agreed-upon price at this point. Moreover, the report is confidential and will not be shared with the listing agent or seller.
#8 Can a property's appraisal value change?
Just keep in mind that the appraisal amount is a professional's opinion of what a home is worth based on data, but it's not an exact science. You should remember that appraisals can differ depending on factors such as who is doing the appraisal and even when they are completed. The real estate market changes over time, and so does the value of your home. For this reason, if you decide to refinance or borrow money against your home, the lender will usually order a new appraisal to determine the property's current value.
Closing Thoughts
The appraisal process can be stressful and is a huge hurdle in the home-buying process. To lessen the anxiety and worry that comes with not knowing, it's vital to remember that all states require appraisers to be certified or licensed to provide appraisals to lenders. The appraiser is a third-party participant in the transaction, and the person's main goal is to assure the lender that the amount they are loaning you does not exceed a property's actual worth. This assurance is also beneficial for you, as it can protect you from paying more for a home than it's worth.
Are You Looking to Buy a Home in Mid-Missouri?
The Heartland Network in Mid Missouri is a team of real estate professionals who help home buyers and sellers in <a href="https://www.heartlandnetwork-midmo.com/boone-county/" title="Search for properties in Boone County" target="_blank">Boone</a>, <a href="https://www.heartlandnetwork-midmo.com/callaway-county/" title="Search for properties in Callaway County" target="_blank">Callaway</a>, and <a href="https://www.heartlandnetwork-midmo.com/cole-county/" title="Search for Properties in Cole County" target="_blank">Cole</a> Counties. Whether you are an experienced home buyer or this is your <a href="https://www.heartlandnetwork-midmo.com/buyers/first-time-buyers/" title="First-Time Home Buyer Resources" target="_blank">first time</a>, we will join your team as experts who help guide you through the entire <a href="https://www.heartlandnetwork-midmo.com/buyers/" title="Home-Buyer Resources" target="_blank">home-buying process</a> from start to close. We work side-by-side with many reputable lenders and will vet and recommend a trusted company. You can rest assured knowing the appraisal process will go smoothly and comprehensively. Contact us now or complete the form below with any questions or to start the home-buying process!2022-12-01T11:47:00-07:002022-11-28T13:13:57-07:00Jen Smithtag:heartlandnetwork-midmo.com,2012-09-20:22900Questions to Ask Your Home Inspector in the Mid Missouri Area<img src="https://assets.site-static.com/userfiles/4283/image/Blog/Buyer_Blogs/Questions_to_Ask_Your_Home_Inspector.png" width="750" height="275" alt="Questions to Ask Your Home Inspector" title="Questions to Ask Your Home Inspector" />
<a href="https://www.heartlandnetwork-midmo.com/buyers/" title="Buyer Resources" target="_blank">Purchasing a home</a> is one of life's most important and exciting milestones, especially for <a href="https://www.heartlandnetwork-midmo.com/buyers/first-time-buyers/" title="First-Time Home Buyer Resources" target="_blank">first-time home buyers</a>. When your offer is accepted, and the closing process starts, it's crucial to hire an experienced and reputable home inspector to complete a building inspection.
Completing a home inspection will not just protect you but also empower you with information on the efficiencies and often deficiencies in a house you are hoping to buy. However, to gain the necessary knowledge, you must be sure to ask your licensed inspector the right questions.
In our experience, helping buyers purchase hundreds of homes over the years, we have learned what questions a home buyer should ask when picking their home inspection company to choose the right one for their individual needs. Read on!
Questions to Ask a Home Inspector
Do you offer a work guarantee or warranties on specific inspections you perform?
What home inspection services do you offer? In other words, can I schedule every service I need from your company to prevent having to use several companies for certain inspections?
What's the cost of your home inspection services?
How long has your company been in business, and do you have references you can provide?
How long do your typical inspections take?
Do you offer the opportunity to pay for the home inspection at closing, or do you need the payment at the time of service? Please note that most home inspectors typically do not release the completed report without payment on the day of service.
How long will it take to receive the inspection report, and what will our partnership look like after the inspection is completed?
Are you available to talk about concerns or answer questions I have when reviewing the inspection report?
It's common for home buyers, and in some instances, their Buyer Specialist, to be present for the actual inspection. When you are at this appointment, it's vital that you don't distract the home inspector. This person must remain focused on the features that they are supposed to be inspecting. Hence, it's best to compile a list of questions for the inspector before the appointment. This is a great way to eliminate distractions and possibly bring up a concern that the inspector might miss. Attending the home inspection appointment with a good understanding of what the inspection can and cannot do ensures that you walk away with peace of mind.
What to Know About the Home Inspection
Here are some important notes you should be aware of at your appointment:
Home inspectors look at everything from the foundation to the roof and everything in between.
Home inspections are non-invasive. So, the inspector only looks at structures and systems that are visible and accessible. For example, they are not permitted to cut into drywall to look for repaired areas of foundation or other structural defects.
Home inspectors DO go very slowly through the entire building and check everything on their list for deficiencies or defects. You can expect the person to point out areas that are in good shape and those that may need further insight or future repairs. When you are going back and forth with the inspector, be sure to ask any questions you may have about the item they are discussing with you. This is also usually the best time to find out the location of important aspects such as the GFCI locations, water shut off, exterior outlets, and main power switches.
It's completely normal to feel nervous during the inspection process. After all, buying a home is a significant investment and often one of the biggest purchases of a person's lifetime. It's essential that you don't panic when an inspection locates problems that need to be addressed. This is the purpose of the inspection, as it should allow the buyer to walk away with a list of important features that they need to ask the seller to fix or take care of themselves in the future.
A home inspection appointment should be an informational meeting between yourself and the professional inspector. It's crucial to remember that this appointment provides you access to the house for several hours. This time gives you a perfect chance to take photos and measurements while giving you a great idea of what it will be like moving into the house before you close and any changes you want to make after the closing occurs.
More often than not, this appointment is the last time you will see the home before the walk-through. So, go to this appointment with the mindset to gather information. Depending on the age of the house and the care it has received, many properties have similar problems, and A+ ratings are nearly impossible to find. Hiring the right home inspectors is the most crucial step toward gathering all the information needed to proceed in the right direction after the inspection is over.
Are You Looking to Buy a Home in the Mid-Missouri Region?
The Heartland Network in Mid-Missouri is a team of real estate professionals helping buyers just like you in <a href="https://www.heartlandnetwork-midmo.com/communities/" title="Search for a home in Mid-Missouri" target="_blank">Mid-Missouri </a>(<a href="https://www.heartlandnetwork-midmo.com/boone-county/" title="Search for a home in Boone County" target="_blank">Boone</a>, <a href="https://www.heartlandnetwork-midmo.com/callaway-county/" title="Search for a home in Callaway County" target="_blank">Callaway</a>, and <a href="https://www.heartlandnetwork-midmo.com/cole-county/" title="Search for a home in Cole County" target="_blank">Cole</a> Counties). Whether you are a first-time home buyer or you've bought before, we will work on your behalf as knowledgeable advocates in your corner throughout the entire process. From your pre-approval to closing, we will be by your side to help make the process more manageable and easier.
We work closely with many experienced and reputable home inspectors. We can vet and recommend a trusted provider for your home inspection, so you can rest easy knowing you're getting an unbiased and comprehensive inspection. Call us or fill out the short form below with any questions you have or to get the ball rolling!2022-11-28T11:43:00-07:002022-11-28T11:52:24-07:00Jen Smith