What you don’t know can hurt you in a real estate transaction. For those of you out buying a home, make sure you follow the general guidelines of your real estate agent, your home insurance provider and your closing attorney.
Some of their guidelines will cost you money, but they will be presented as optional things you should do.
For instance, with a real estate agent, they will tell you that you will need to get a structural, mechanical and termite inspection done on your house. If the house has synthetic stucco on it, they may suggest that as an inspection done on it as well.
As stated at Homes By Cross, Inc. an old roof, a questionable looking HVAC system, a less than hot water heater, may all come back up on your home inspection report suggesting you go to one more level of expertise for further evaluation. The reason this happens, is that the home inspector is like the medical doctor that performs your general check up. If something looks amiss, he will send you someone that is an expert in the field. Yes, this will cost you more, but you will get your results before you buy the house, not afterwards when you are stuck with a big repair or replacement bill.
Another item a buyer’s agent may recommend to you is a Home Warranty offered by any one of a number of home warranty companies. The seller may already have one in place. They cover most things for the buyer and a lot of things for the seller. If you have purchased one, that’s the first place you should call when you have any mechanical systems go amiss once you become owner. There is a small service fee, but it can repair or replace items that are listed under their coverage policy.
Your home insurance agent is another person who will be there both protecting you and driving your expenditures up. All for good reason, but more money will be spent here.
Home insurance is what you pay to make sure your home is protected in case of fires and things that destroy your property. Flood insurance is required when you are in a flood zone, but not necessarily all the time. If the flood line is 25 feet below your property, your home insurance provider may tell you that it is not necessary. Other types of insurance may be needed if you have a private septic tank rather than the city sewer lines. Again, lean on the advice of the professionals that you have hired to take care of your new home.
Granted, there is no need to over insure your property, but there is a very good reason to purchase title insurance on your property. This is completely different than home insurance, and what it does is protect you from any previous owners of the property coming back and suing you. They can do this, when you buy a property that does not have a clear title. The person advising you to purchase title insurance will be your closing attorney. They will also suggest that you get a brand new survey on the lot as to protect you from an encroachment issues with regards to fences, driveways, sheds and the like.
If you are buying a house, the professionals that you hire throughout the transaction are there to protect you from making big foolish mistakes on protecting your investment. Don’ t go cheap on the protective clauses, as those that are in the business know the true cost of skimping on the items noted in this article.