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Brick Street Realty - Personal. Professional. Preferred.

As the seller’s market continues to thrive across the country, sellers are
wondering how to choose the right offer. The frantic pace of the real estate
market has resulted in multiple offers on desirable properties. While this
may seem like a great problem for sellers to face, how do they know that
the buyer they choose can close on the home? Many times, sellers make
quick decisions and hope for the best, even as home prices continue to
climb.
This is where a kick-out clause can help.
A kick-out clause allows a seller to continue to market the home for sale
after accepting a buyer’s offer with contingencies. It also outlines the
conditions under which a seller can cancel, or kick-out, the contract if they
get a better offer.
Most real estate contracts include contingencies. Most common include
loan approval, appraisal, and home inspection. Often buyers will also
include a contingency to sell their current home. A kick-out clause protects
the seller from an escrow that drags on past the agreed-upon time frames.
For example, if a buyer is unable to sell their home or home inspection
negotiations continue past the time frames agreed to in the contract, a
seller can use the kick-out clause to force the buyer to remove the
contingency or cancel the contract.
Once escrow is opened, typically both parties must agree to close the
process. This can cause delays that cost the seller both time and money. A
kick-out clause is one way to ensure the escrow closes on time, and that
there are back-up offers ready to go if it doesn’t.

One of the most important financial considerations of buying a new home is
the interest rate paid on the mortgage. Over time, a higher interest rate can
add thousands of dollars to the true cost of buying the home. When interest
rates are low or steady buyers have greater confidence that they will get a
favorable rate when they go to secure the loan, but in our current
environment of rising interest rates, many lenders are suggesting a rate
lock at the time of pre-approval.
What is a Mortgage Rate Lock?
A rate lock freezes the interest rate on a mortgage for a period of time
before the close of the loan. Typically lasting for 30-60 days, the lender
guarantees the rate will not change during this period for a fee that is paid
when you agree to the loan terms.
A mortgage lock protects the borrower from rising interest rates while the
loan is processed and approved.
When should you lock in a Mortgage Rate?
Lenders will offer to lock in the rate at the time of loan approval. With
escrow periods of 30-60 days, the lock assures the buyer that their rate will
not increase during the time it takes to complete the loan process.
In a period of rising interest rates, as we see today, locking the rate may be
a smart idea. The borrower will pay a higher fee for the lock, as the lender
is also taking a risk, but it could be worth thousands of saved dollars over
the life of the loan. Even a small increase in the interest rate can have a
huge financial impact.

Couples dream of buying a home together, leisurely enjoying a latte while
dropping by open houses to look at remodeled kitchens and manicured
backyards. Today’s market is quite different. Desirable homes are snapped up the
moment they hit the market, often with multiple offers. Homebuyers in this
climate must move quickly. This may require jumping on an opportunity without
both partners adding their input.
Adding more complexity to a heated real estate market is job mobility. The US is
experiencing an unprecedented job market. More employees than ever before
are offering remote work environments. This business climate not only offers
flexibility in living location but also the opportunity to make a career move.
Making a change in location, regardless of the reason, often means one partner
can travel for house hunting.
So, how can you trust your partner to find the right house?
Before starting the home search, it’s important to work together to identify what
features are essential to the new home:
• Size
• Yard
• Bedrooms/bathrooms
• Schools
• Commute
• Community amenities
• Local services; shopping, restaurants, entertainment, gyms, parks, etc.
All these and more should be discussed and expectations set. Fortunately, we also
have extensive virtual tools to use in the home search. Not only virtual tours,
video, and drones, but a simple cell phone can easily take the absent partner on
the house tour in real-time.
Can you trust your partner to choose the right house? With some honest
conversation, careful planning, and technology – yes, you can!

Home Inspection Red Flags

Most homebuyers realize that they can’t expect a perfect home inspection report
when buying a resale home. Cosmetic flaws and minor repairs are easily managed
and shouldn’t be dealbreakers. That said, there are some issues that are more
serious and should give the buyer pause if not addressed adequately.
10 Home Inspection Red Flags

  1. Leaky and Rundown Roofing – watch for signs of current or past water
    damage.
  2. Poor Drainage – drainage issues can cause serious damage to the home
    foundation, siding, and basements.
  3. Foundation Issues – signs of foundation problems can include cracks
    around doors and windows or uneven floors. Foundation problems can cost
    thousands of dollars to correct.
  4. Plumbing Problems – major plumbing issues should be considered carefully
    and further explored.
  5. Pest Infestations – termites and other wood-eating pests can cause
    extensive damage that can be hard to find and costly to repair.
  6. Mold – that “musty” smell could be due to hidden mold and further
    investigation should be taken as mold can be dangerous to the health of
    the family. Depending on the type of mold, it can be very difficult to
    remove entirely.
  7. Faulty Heating System – a malfunctioning furnace can be a fire hazard.
  8. Electrical Wiring – faulty wiring can cost thousands of dollars to repair.
  9. Structural Damage – sagging joists, rafters, and door jambs can be evidence
    of larger issues.
    10.Deferred Maintenance – a home in poor condition could be hiding more
    serious issues due to chronic neglect.
    Homebuyers should be alert to these issues and know the costs to repair before
    concluding the sale. Home sellers should address these issues before putting the
    home up for sale to ensure they get the best possible sales price.
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