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A good real estate agent can help walk you through the appraisal process, but you can also go through it on your own if you plan to sell your home yourself. The cost of a typical home appraisal will depend on the state that you live in. In some areas, an appraisal is more expensive than in other areas. An appraisal is done by a licensed professional. While some homeowners do hire an appraiser at times other than when buying or selling a home, it’s typically only reserved for when a home goes on the market. However, there are times when the homeowner is looking to refinance the home to lower the mortgage or take out a loan against the equity - so then an appraisal has to be done. A home price set by a homeowner doesn’t always accurately reflect the true value. The kind of shape that a house is in can make the asking price correct if it’s been well cared for. A house that’s in need of repairs doesn’t always match the asking price and an appraiser can determine this. This professional takes into consideration where the home is located, what upgrades have been done and the kind of neighborhood and values of the surrounding homes. The purpose of this is because it prevents potential buyers from paying more for the home than its true value. An individual buyer doesn’t want to get upside down in a home price any more than a bank or mortgage company does. The appraiser knows the parameters for correctly determining your home’s values. He also knows what the state’s laws are concerning the process. He’ll come out to your house with documentation that he’ll have to fill out. He’ll be looking at how many bedrooms and bathrooms your home has. He’ll also measure the square footage of your home to make sure it’s accurately described. He’ll look at the outside of your home and check things like the exterior walls, the shape of the windows and the roof. He’ll look at porches and decks and see if there are any extras that add to the home’s value. Inside the home, he’ll check to make sure that everything’s in working order. He’ll run the faucets, flush the toilets and check under cabinets for leaks. He’ll mark anything that needs to fixed. He’ll check the appliances, the electricity, the heating and air unit and go up into the attic. He’ll check the garage as well. He’ll provide photographs of your home to back up his analysis of the appraised value. Getting an appraisal done can help make sure that both parties in a sale are aware of any potential issues. Some homeowners pay for an appraisal before they ever put the home on the market so they’ll know what needs to be taken care of first. Sometimes homeowners are upset when the report comes back more unfavorably than they anticipated. But the appraiser can help protect you from selling a home with potential hazards just as much as it can protect you from underselling.

A handful of shows on TV have featured house flipping as a way of life. They show the ups and downs of getting into the business. It looks like fun and you might be wondering if it’s something that you should get involved with. You can decide if that’s the case by taking inventory or your personality and what you have to put into it. Flipping houses is going to be a pretty serious time commitment. Though it looks quick on TV, reality is different. You have to be someone who has the amount of time that it’s going to take to dedicate to a project. If you’re stretched too thin right now, then you need to wait until you have the time. You also have to consider what’s involved that may be out of your skill level. Flipping a house can sometimes mean that you can’t handle everything that needs to be fixed or spruced up on your own. You’re going to have to hire someone to help you. Many people who get involved with house flipping have a team that they work with. They’ll have an electrician, a plumber and several other people who can professionally do whatever task is outside of their league. You have to look at the cost involved. You need to be able to know how to find a good home to invest in. A good flip home should be priced low enough so that after you repair what needs to be fixed, you have a tidy profit. That means you can’t pay market value for a home. One idea is to look for fixer uppers that don’t have serious issues in established or even high end neighborhoods if you can afford it, buy it, bring the condition up and then sell it. You do have to be able to buy that house, which means you have to have some sort of financing ready. This is a step that should be decided before you even look at homes to buy. To decide if house flipping is right for you, you want to examine your reasons for going into it. If it’s because you think it’s something that’ll make you rich fast, then that’s a wrong reason. You can make a lot of money flipping houses, but it’s not something that you can rush. It’s something that builds your income house flip after house flip. Your first flip or two is to get you started. There will always be risk involved in real estate properties just like in any other venture, but the rewards you stand to reap can be substantial. If you have some money already on hand that you can invest in buying a flip house, you’re a hard worker and you don’t give up easily when faced with challenges, then home flipping is probably right for you.

House flipping is something to get into that has the potential to create a lot of money for you. But there are some things that you have to know going into it. Anyone who’s successfully flipped houses will tell you that you are going to have to have the money to buy the property. This is something that makes most people pause and think that they don’t have the kind of money up front that it takes to buy a property. You don’t have to use your own money. You can get the money from lenders and these can be family members, friends, real estate investors and other money lending businesses. You can find some lenders through investment groups. Just watch the interest rate. If you have good credit and your debt ratio is low, you can take out a loan for the house from the bank. Some people get creative with their financing for a flip house. They use a little of theirs, some from family and some from a loan. Some people create a joint venture and split the financing costs. When it comes to deciding the financing amount, always plan on spending more than you think you might need because there are always glitches. You need to understand how real estate works. You can educate yourself about this by having a mentor in the real estate business or by taking classes in it. But you must know how buying and selling works, how to determine which location is good to buy a flip house in, and what the market is doing. You need a good figure on what the house will be worth on the market once everything’s said and done. Look for foreclosed homes, homes that look rough but are basically in good shape and homes in sought after locations. You also need to know how to work on a house. If you’re someone who can’t hammer a nail in straight, then you either need to learn more about construction or you have to hire everything out. It’s okay to hire those who know what they’re doing when it comes to working on a house, but you need to know what should be done and what a good job looks like on a repair or renovation. Because otherwise, you won’t understand what has to be done or if it’s being done correctly and up to code. You can have a contractor come out and look at the flip house to tell you what’s going to be involved in fixing it up. This will help give you a ballpark figure of what you’re going to spend to get the house ready. Just keep in mind that renovation estimates are just estimates. As the work progresses, problems are usually uncovered - so give yourself not only a financial buffer, but a time buffer for getting the project done as well. When the home is done, make sure it has market appeal by staging the home. There are certain people you’re going to need to be successful with house flipping. You need someone who’s knowledgeable about the market if you’re not. You need someone to handle the paperwork when you sell the house. You need someone to handle the financial side who can keep the project within budget and moving along. You need people who are skilled in all areas of home flipping. That includes people who can work on bringing the yard up to a condition that’s appealing to buyers. You need someone who can put in a floor or renovate a kitchen. You need electricians, plumbers, heating and air experts and any other skilled person to handle areas outside of your expertise. Understand that time and problems equal a demand for more money. The longer it takes to complete and the more problematic a flip, the more it eats into your profits.

Some people want to get into flipping houses because it looks like a fast and profitable way to build an income. It can be. But the biggest mistake that people who get into the business make is they underestimate how much time it’s going to take. They also underestimate how much it’s going to cost. You have to flip a home quickly if you’re going to make money, but the house doesn’t always cooperate with your timeline. When you start flipping a house, you may run into defects that are hidden beneath the surface. What looks good on the outside wall might be hiding a myriad of electrical wiring problems behind the drywall. Hidden problems like that are common in almost every house because people don’t often update things like wiring. It’s expensive to have a home professionally rewired. A problem like that can add thousands to your budget costs. The same thing can happen if there’s a problem with the plumbing. A slow draining toilet or tub is often dismissed as a possible clog but it’s actually a major plumbing problem such as the pipes in the yard are cracked or full of tree roots. Then you have to dig up the lawn, replace the pipes and then repair the damage to the lawn. Problems always slow down the renovation schedule as well as add to the cost. The best way to prepare to be thrown off schedule is to budget more time than you think each step of the renovation will take. This way, you build in a time buffer. A lack of knowledge on your part can slow you down. If you’re doing part of the renovation yourself, the lack of experience can make the job take longer. Or it can take longer because you messed up and now you have to find a professional who can come out and redo it. Having to depend on other people in a team to help you get the house ready to go on the market can add to the time and the cost as well. Not everyone shows up when they’re supposed to be on the job. They might arrive a few hours to a day late or not at all. This can throw you behind if you don’t take into account working with others can be a time buster. Plus, you might be given an estimate by someone in the team and then it turns out that it’s more work and material than he anticipated so now he has to tell you it’s going to cost several hundred dollars more. Weather delays should also be figured in to the house flip. If it needs a new roof or you have to put in a new driveway, you can’t do that in the rain. By budgeting in potential problems and overages, you’ll still be able to get done on time and within your budget.

To sell your flipped house, you’re going to need it to be inviting both inside and out. When a possible buyer looks at the house, he’s either drawn to it or he isn’t. You have to make sure that the exterior of the house makes potential buyers want to stop and have a look inside. The outside renovation is where you can easily go over budget. Making a home have in inviting exterior isn’t expensive. You need to make sure that it’s clean. If the front door is in bad shape, replace it. If it’s not, then you can clean or paint it. Take out any dated hardware on the door and replace it. Do the same with any porch fixtures like lights, doorbells or faded shutters. You can put in landscape lighting fairly cheaply and put in some flowers either in a bed or in pots. Put up a mailbox and new house numbers. These are all updates that can make a house look more welcoming. Inside the house, if the walls are in good shape, paint them. It can be tempting to put your own personal stamp in a home when it comes to choosing colors, but you have to think what a buyer would want. Buyers want colors that are neutral. They can imagine a clean slate to work with to put their own personal touches in the room. Stick to soft colors and choose the same if you have to put down new carpeting. New carpet is cheaper to put down than most other types of flooring when you’re renovating but keep in mind that carpet can be a turn off to some buyers. They want the clean look of laminate or hardwood floors. The areas that can make or break your renovation budget and ones that can help sell a house are the kitchen and the bathrooms. But that doesn’t mean that you have to completely gut the existing kitchen and start over. You can just update what needs to be spruced up by doing things like painting, putting in a new backsplash or flooring and new appliances. If the cabinets are solid but look worn, you can refinish them or repaint them and still end up with a great looking kitchen. Countertops do matter - so those need to look high end but not necessarily be high end. Update the bathrooms by putting in new faucets and replacing anything that needs to be replaced. New hardware can make older cabinets look new. Remember when you’re flipping a house not to fix it up like you’d like it to be. You don’t want to spend a lot more money by putting in top of the line appliances or upgrading things that don’t need to be upgraded. When it comes to décor, make the most of your homes features such as large windows, fireplaces and furniture. Group your furniture so that the room feels bigger in the living room. Make sure you use soft lighting. This casts a better glow in the room and makes it look warm and inviting. Go minimal when you stage the house. Have fresh flowers on the table and have it set for dinner with nice dishes. Remember to think of the buyer when decorating the home for staging rather than what your own preferences are.

One of the first things that you learn about flipping houses is that you need to buy cheap. You don’t always get that opportunity when a house is being sold on the market. But a foreclosure home is different. The bank or lending institution has taken back the property because the homeowner couldn’t or didn’t make the payments anymore. Home mortgage lenders are in the money business and they won’t want the hassle of having a foreclosed property on their hands so they try to unload the home as quickly as possible. The longer they hold the home, the more money they lose. That means you can get a property for a whole lot less than you’d normally pay for it. Some people are reluctant to get involved with buying foreclosures because they think that means the house is in terrible condition. While that can sometimes be the case, more often than not, it isn’t. You can find foreclosed homes through multiple sources. They can be listed in the newspaper or at online real estate sites or other sites. You can also find them at local auctions as well as listed on bank and mortgage lending sites. You can also check the U.S. Department of Housing and Urban Development for their list of foreclosures. You’ll want to look at the property before you buy it but keep in mind that foreclosure homes are sold “as is” which means that you don’t get any kind of guarantee. These homes could have minor issues such as needing to be cleaned and painted to major issues such as foundation problems. Keep in mind that not all foreclosed homes are open to an inside viewing. This can happen if the home carries a risk to health. But you can gauge if the home might be worth it by looking at the price of the home, and the neighborhood that it’s in. If you can’t get inside, always expect the worst possible scenario. For homes where you are able to check out the inside, it can be helpful to take a professional with you who can give you a rough estimate of the expenses that you’re looking at if you buy the property. Know the budget you have for flipping the house. It’s not a good deal if you’re just going to break even. You need to know what the repair costs are going to be and if you do go to an auction, don’t get caught up in the frenzy and go over your budgeted buying price. Just like with any other flip, you have to rehab it fast and get it back on the market to get the most out of your investment. When buying and selling a foreclosed home, you have to figure in the price you pay to buy it, closing costs or fees, the amount of money you spend on fixing it, the selling costs and any taxes paid. Then you subtract that from what you turn around and sell the house for. That’s your profit amount. If you divide that profit amount by the time it took you to get the house back on the market, that gives you a percentage figure for your ROI.

If you're interested in investing in real estate but don't want the hassle of buying and managing a property, real estate investment trusts (REITs) can be an attractive option. REITs allow you to invest in real estate without actually owning physical property, and they provide a way to diversify your portfolio. Here are some top tips for investing in REITs: Understand the types of REITs: There are several types of REITs, including equity REITs, mortgage REITs, and hybrid REITs. Equity REITs own and operate income-producing properties, while mortgage REITs invest in mortgages and mortgage-backed securities. Hybrid REITs invest in both properties and mortgages. Research the REIT's portfolio: Before investing in a REIT, it's important to understand what types of properties it owns and where they are located. Consider the performance of the properties and the potential for growth in the areas where they are located. Look at the REIT's financials: Review the REIT's financial statements, including its revenue, expenses, and profits. Look for trends in the financials over time to get a sense of the REIT's stability and growth potential. Consider the management team: The management team of a REIT plays a key role in its success. Look for a management team with a track record of success and experience in the real estate industry. Evaluate the dividend yield: One of the primary benefits of investing in a REIT is the dividend yield. Look for a REIT with a high dividend yield, but also consider the stability of the dividend and the REIT's ability to continue paying dividends over the long term. Diversify your investments: As with any investment, it's important to diversify your portfolio. Consider investing in multiple REITs to spread your risk and increase your potential for returns. Monitor your investments: Keep an eye on the performance of your REIT investments and make adjustments as necessary. Consider re-evaluating your investments periodically to ensure that they continue to meet your investment goals. Investing in REITs can be a great way to add real estate to your investment portfolio. By doing your due diligence and following these tips, you can increase your chances of success and minimize your risk.

When it comes to finding a place to live, one of the fundamental decisions you need to make is whether to rent or buy a home. Both options have their own advantages and disadvantages, and understanding the pros and cons of each can help you make an informed choice that aligns with your financial goals and lifestyle. In this blog post, we will explore the pros and cons of renting and buying a home, providing you with valuable insights to assist you in making the right decision. Renting a Home: Pros: Flexibility: Renting offers greater flexibility, as you can easily move at the end of your lease term without the hassle of selling a property. This flexibility is beneficial for those who anticipate frequent relocations due to work or personal circumstances. Lower upfront costs: Renting typically requires a smaller upfront cost compared to buying a home. You will typically need to pay a security deposit and possibly the first month's rent, whereas buying a home involves a down payment, closing costs, and potentially other expenses. Maintenance responsibility: When renting, the responsibility for major maintenance and repairs often falls on the landlord. This can save you money and effort, as you won't have to handle unexpected repair costs or the hassle of finding reliable contractors. Amenities and services: Many rental properties offer amenities such as swimming pools, gyms, and shared common areas. These amenities are usually maintained by the landlord or property management, providing convenience and added value. Cons: Lack of equity: Renting does not provide the opportunity to build equity in a property. The money you spend on rent goes towards the landlord's investment rather than your own. This can be seen as a missed opportunity for long-term wealth accumulation. Limited customization: Renters typically have limitations when it comes to customizing or renovating their living space. You may need permission from the landlord for even minor changes, limiting your ability to personalize your home. Rent increases: Rent prices are subject to change, and landlords may increase the rent at the end of each lease term. This lack of control over future rent increases can make it challenging to budget for the long term. Buying a Home: Pros: Equity and investment: One of the biggest advantages of homeownership is the opportunity to build equity. As you pay off your mortgage, you own a valuable asset that can appreciate over time and potentially provide financial stability and wealth accumulation. Customization and control: Owning a home allows you the freedom to customize and modify your living space to your liking. You can personalize the property, renovate, and make changes without seeking permission from a landlord. Stability and roots: Buying a home provides a sense of stability and roots in a community. You can establish long-term relationships with neighbors, become involved in local activities, and create a sense of belonging. Potential tax benefits: Homeownership can offer tax benefits, such as deductions for mortgage interest and property taxes. Consult with a tax professional to understand the specific tax advantages available in your situation. Cons: Financial commitment: Buying a home is a significant financial commitment. It requires a substantial down payment, closing costs, and ongoing expenses like mortgage payments, property taxes, insurance, and maintenance. It's important to ensure that you have a stable income and can comfortably afford these costs. Limited flexibility: Homeownership can limit your flexibility to move quickly. Selling a home can take time, and you may face market fluctuations that impact the value of your property. If you anticipate frequent relocations or uncertain future plans, buying a home may not be the best option. Maintenance and responsibility: As a homeowner, you are responsible for the maintenance and repairs of your property. These costs can add up over time, and you'll need to dedicate time and resources to keep your home in good condition. Deciding whether to rent or buy a home depends on various factors such as your financial situation, lifestyle, and long-term goals. Renting offers flexibility and lower upfront costs, while buying a home provides equity, customization, and stability. Consider your personal circumstances, weigh the pros and cons, and evaluate your financial capabilities before making a decision. Ultimately, the choice between renting and buying should align with your unique needs and aspirations.

In the course of looking for a dream home, prospective buyers will often hear the term "short sale." No, it does not mean you can move in right away. A short sale refers to the owner of the house being willing to sell the house for less than its market value. A short sale can potentially be a good deal, but there are a number of things to watch out for before getting too excited about the "bargain" in the perfect neighborhood you’ve been longing to move into. Why a Short Sale? A short sale is usually triggered for one of three reasons: 1) They don’t care about the money so much as getting rid of the property because they don’t want it any more. 2) They want to get rid of it quickly because they are paying two mortgages. 3) The house is in foreclosure due to them not paying their mortgage, and the bank wants their money. The third reason is the most common. But why would they take less than the house is worth when they clearly need the money? The Pressure Is On If the bank is moving to foreclose on the home, they might be willing to accept a smaller sum than the current valuation of the house to end that mortgage and get that bad debt off the books. But just because you offer the short sale price does not mean the mortgage lender will accept it, no matter how eager the seller might be. In some cases the lender might actually look for a short sale even if the sellers have been keeping up their mortgage. They may have a poor credit score and/or credit-to-debt ratio. They might also owe more on the mortgage than the house is worth, a so-called "underwater mortgage." The lender is therefore taking steps to bring the value of the house in line with what the market will bear for that size of house in that neighborhood. Do Your Research Fortunately, these days there are websites like Zillow and Trulia to help you research homes you might like in neighborhoods you wish to live in. Pay particular attention to the details about what homes have sold in the area recently, and what was paid for them. Once you have a good idea as to whether or not the short sale terms you have seen are a bargain, find out who is handling the sale and/or go to a local realtor who seems trustworthy. They should be a member of the National Association of REALTORS® and seem like a person you can get along well with, because the process of buying a house can be long and complicated, and can take from three months to a year depending on what you are looking for and how soon you need it. Your realtor will be able to dig a little deeper to find out who owns the title to the house, whether or not the house is being foreclosed upon, and how much is owing. They can also find out if there is a second mortgage, a refinance filed for, or any back taxes owing. A lender will not accept a short sale if there is no equity (money paid) in the home, because they will not be able to get any money back. Home Inspection Even if all the lights are green for go after your realtor does their research, and the lender appears willing to work with you, don’t be hasty. Ask your realtor to recommend a reliable home inspector and ask that they attend the inspection too in order to make sure nothing gets missed. Then they can negotiate on your behalf to ensure the deal really is as good as it seems.

Buying a foreclosed home is different in several important ways from buying a typical home. Being aware of these key differences can help you spot a bargain versus a property to pass up. The Pros The house will be vacant so once the deal is done, you would be able to move in right away. Sometimes the price will be competitive for the neighborhood you want to move into. The Cons and How to Get Around Them Only one real estate agent is involved You will often see the abbreviation REO (Real Estate Owned); that is, the owner is a bank or other mortgage lender. They will usually only deal with one realtor, so you might not have a lot of chances to negotiate. If you do find an REO you love, see who the agent is, and meet with them. If you are very serious about moving forward quickly, you might also ask to meet the lender. You need to be pre-approved The one real estate agent will not deal with you unless and until you either have cash in hand for the house, or have a pre-approval letter from your mortgage lender. The pre-approval process can take several weeks while your prospective lender looks into your employment, pay stubs, and credit history (and your partner's too). This means the house of your dreams could be bought by someone else by the time you get all your paperwork in order. The best deals will go quickly. The one agent might be very busy If there are a lot of foreclosed properties in your area, the one agent may be very rushed and not able to give you a lot of their time. Know what you want and ask to view only those properties that really match your needs and budget. One price fits all There is little room for negotiation on price, because the bank will want to recoup as much of their losses as possible on a foreclosed home in order to make up for the mortgage that has been defaulted upon. Check websites like Trulia and Zillow to see the typical prices houses have been recently sold for in that neighborhood, to be sure you really are getting a good deal. The home may not be in great repair Any issues found by the property inspection will need to be repaired by you, not the bank. It might be badly maintained/a mess People who lose their home will often leave it in a bad state of repair - or worse still, vandalize the property. They might also leave a lot of their things behind. The garden, guttering, plumbing and so on will not have been maintained. You might have trouble getting electricity, water and other utilities turned back on after the previous account holders defaulted. Every home you wish to buy should be thoroughly inspected, and a detailed list of issues provided. Ask the realtor for recommendations for reliable inspectors. Also ask for recommendations for contractors who could carry out the needed repairs and get quotes. You can research contractors online as well, or ask friends and family if they know anyone reliable. You can also assess how many of the jobs on the list you might be able to tackle yourself before you move in. In most cases, you should be able to handle cleaning and painting, but if you don’t have time, hire professionals to do the essentials. Sales are usually speedy The sales will usually go more quickly. However, if you feel too rushed or uncertain in any way, it is best to back off. Use these factors to help you decide whether a foreclosed property is right for you.

A realtor can offer a wide range of assistance to prospective home buyers. Choosing the right one can save you a great deal of money and secure you the home of your dreams. Is Every Real Estate Agent a Realtor? The quick answer is no. Therefore, you need to be sure you are working with a professional realtor. It is important to be clear about definitions. Real estate agent: Anyone who earns a real estate license can be called a real estate agent. They need to attend classes and pass their exams. Real estate broker: This is a real estate agent who has taken further classes and passed a broker’s license exam. Brokers can work alone or hire other agents to work for them. REALTOR®: A realtor is a real estate agent or broker who is a member of the National Association of REALTORS®, and must therefore uphold the standards of the association and abide by its code of ethics. https://www.nar.realtor/ Find a realtor first. Then determine if this is a person you will feel comfortable dealing with. A good realtor can soon start to seem like a member of the family. Showing You Homes Showing you possible homes will be a key part of their job, but they need to get to know you and your family as people so they can help find a home that will suit your tastes and needs. They also need to have a good idea of your price range and overall budget. Get You Pre-Approved A good realtor should have a reliable network of trusted lenders and professionals commonly involved in the many details related to you buying a home, and they will help the sale go through smoothly all the way to closing. The first step is to get a mortgage pre-approved so you can start shopping. Note that pre-approval means that the lender has gone through all of your financial paperwork, such as proof of employment and income, and assessed your credit report. Be sure to get a pre-approval letter if you have been shopping around on your own before working with your realtor. Give Advice about the Local Housing Market and Neighborhood Some neighborhoods have a certain character, and are more desirable than others. Not all four-bedrooms are created equal, therefore. Be sure to inform your realtor of any special requirements from the outset, such as being close to an elementary school or high school, near public transportation and shops because you don’t drive, and so on. They will also know what similar houses have sold for recently and might be able to connect you with a bargain house that needs to be sold quickly, or which has just reduced its asking price significantly. Negotiating Your Offer Leave this to the pros and they should be able to get the best price for you. It will be contingent on what the house inspection reveals. Connecting You with a Reliable House Inspector Your realtor will want you to be happy and not stuck with a "lemon". They will recommend reliable inspectors they trust. Based on what they find, the house valuation may be lower, in which case you can adjust your offer accordingly. They will also advise you on whether the price is in line with the neighborhood. The last thing you want is an "underwater mortgage" in which you will owe more than the house will ever be worth. Attending the Home Inspection A good realtor will be willing to attend the inspection and take part actively. Two pairs of eyes will always be better than one. They can then report back their honest opinion as to your next steps and negotiate as needed. As you can see, the right realtor can make a real difference to the house-buying process and will help you find your dream house.

A lot of first-time buyers wonder if it is all right to have a home inspected before they place an offer on a house they are interested in. The answer is yes, definitely, if you want to be certain it is the house for you quickly so you don’t waste time haggling. A home inspection is an essential part of any housing purchase, and should be at the top of your to-do list. The house does not have to be perfect, but you do need to know what you are letting yourself in for. In this way, you can negotiate with the person selling the house from a position of having all the facts, rather than just hoping things will work out. The Cons The only downside to a pre-offer home inspection is that they might sell the house to another person. However, home inspections usually only cost around $300 or $400, so it might be worth it to risk this money rather than place an offer on the house, give in your earnest money deposit, but then find out it is a lemon you really don’t want. The Pros A professional home inspection will reveal important things you need to know about the property before committing to it. You realtor should have several people he or she can recommend, and also be willing to attend the inspection. Two pairs of eyes are better than one. They will also be in a better position to negotiate for you if they have a complete picture. In addition, they can advise you on anything that might be a "deal breaker," so you don’t waste any more time and effort on a property you will regret buying. Some people believe that realtors will discourage pre-offer inspections because they don’t want to lose the deal, but this is not the case. It is far better for everyone to know the truth about the property before spending ages on the paperwork, only to have it fall through. If it passes, you have the green light to buy the house you want right away, and usually at the right price. If you decide you don’t want the house in the end based on what the inspection reveals, you won’t have to forfeit part of your earnest money deposit because the seller has taken the house off the market but you’ve changed your mind. Dealing with the Right to Cure Provision Many states have various regulations in reference to home inspections. These regulations are often boilerplate as part of the paperwork in relation to making a formal offer. The "right to cure" provision would give the chance for the seller to fix any issues within a reasonable amount of time, rather than simply having to give up the deal. This can cause problems if you really want to back out for whatever reason. In terms of the right to cure, you could then discuss the issues with the seller and be clear about what you want done, and to what standard. If you don’t have the confidence that they will solve the issue in the manner you wish, you could negotiate a lower price on the understanding that you will undertake the repairs. Finding the Right Home Inspector Ask your realtor for recommendations. Interview three of them. Also consider asking anyone in your area who has bought a house recently. They may be able to suggest someone reliable. Inspections should take place only during daylight hours. This means you may have to be patient getting hold of one. See if they have a website, and contact them via email with your questions in the first instance. Determine what Services They Offer Some will do a pre-offer walk-through, while others do a more thorough inspection. The older the home, the more thorough the inspection should be. As you can see, a pre-offer home inspection has many advantages. Follow these tips to help you find the home of your dreams.