Closing day is the final step in the home buying process where all parties involved come together to complete the sale of a property. It can be an exciting and nerve-wracking experience for both buyers and sellers, as it marks the official transfer of ownership.  We will provide you with a detailed overview of what to expect on closing day and how to prepare for this important milestone in your home-buying journey.

What Happens on Closing Day?

On closing day, all parties involved in the transaction will meet at a designated location, usually at the office of either the buyer’s or seller’s attorney or at a title company. The purpose of this meeting is to review and sign all necessary documents related to the sale of the property.

The following are some key steps that typically take place on closing day:

1. Final Walk-Through: Before signing any paperwork, buyers have the right to do one last walk-through of the property. This is done to ensure that there are no major changes or damages since their last visit and that all agreed-upon repairs have been completed by the seller.

2. Reviewing Documents: Once everyone is satisfied with the condition of the property, it’s time to get down to business. Buyers will be presented with a stack of documents that they need to carefully review and sign. These may include loan documents from their lender, title insurance forms, deed transfer documents, and more.

3. Payment: Buyers are required to bring a cashier’s check or wire transfer for the remaining balance of the purchase price, as well as any closing costs and fees. These payments are typically made directly to the closing agent or attorney.

4. Transfer of Ownership: After all documents have been signed and payments have been made, the deed and other legal documents will be transferred from the seller to the buyer. This officially marks the change in ownership.

5. Distribution of Funds: Once all paperwork has been completed, funds will be distributed accordingly. This includes paying off any outstanding loans on the property and distributing any remaining funds to the seller.

6. Closing Costs: Buyers will also be responsible for paying closing costs which can include appraisal fees, attorney fees, title search fees, and more. These costs are typically outlined in detail on the closing statement provided by the lender.

7. Keys and Possession: Once all documents have been signed and funds have been distributed, buyers will receive the keys to their new home! They can then take possession of their new property.

Overall, closing day is a crucial step in the home-buying process that requires attention to detail and careful preparation. It’s important for both buyers and sellers to come prepared with all necessary documents and payments to ensure a smooth transaction.

Pre-Closing Checklist: What to Do Before the Big Day

As the big day of closing draws near, it is important to make sure that all necessary tasks are completed and everything is in order. This pre-closing checklist will help you stay on track and ensure a smooth closing process.

1. Review the Purchase Agreement
The purchase agreement is a legally binding contract between you and the seller. It outlines all the terms and conditions of the sale, including the agreed-upon price, contingencies, and closing date. Before closing day, review this document carefully to make sure everything is accurate and as agreed upon.

2. Schedule a Final Walk-Through
One of the most crucial steps before closing is scheduling a final walk-through of the property. This lets you inspect the property one last time before signing on the dotted line. Ensure that any repairs or changes requested during negotiations have been completed satisfactorily.

3. Prepare Your Funds
Before closing day, you will need to prepare your funds for payment. This may include cash for down payment, closing costs, taxes, insurance premiums, etc. Talk to your lender or escrow agent beforehand to determine how much money you will need and what forms of payment are acceptable.

4. Get Homeowners Insurance
Homeowners insurance protects your home against damage or loss due to unforeseen circumstances such as natural disasters or accidents. It is important to secure homeowners insurance before closing day so that your property can be fully protected from day one.

5. Notify Utility Companies
Make arrangements with utility companies such as electricity, gas, water, and internet to transfer services into your name on closing day. This will ensure that you have uninterrupted service after moving into your new home.

6. Get a Cashier’s Check
Ask your lender or escrow agent if a cashier’s check is required for closing. If so, make arrangements to obtain one prior to closing day in the correct amount.

7. Review Closing Disclosure
The Closing Disclosure is a document provided by your lender that outlines all of the final terms of your loan, including interest rate, monthly payments, and closing costs. Review this document carefully before closing day to ensure everything is accurate.

8. Bring Required Documents
On closing day, be sure to bring any required documents such as government-issued ID, proof of insurance, and any additional documents requested by your lender or escrow agent.

9. Attend the Closing Appointment
Closing appointments typically take place at the office of the title company or attorney handling the closing process. Be sure to attend the appointment and bring all necessary documents and funds with you.

10. Sign All Documents
During the closing appointment, you will be required to sign numerous documents related to the purchase of your home. Read each document carefully before signing and ask any questions you may have.

Things to Bring on Closing Day

Closing day is the final step in the home-buying process and marks the official transfer of ownership from the seller to the buyer. This can be an exciting and nerve-wracking time, as there are many important tasks to complete before you can officially call yourself a homeowner. One crucial aspect of closing day preparation is making sure that you have everything you need for a smooth and successful closing. To help you stay organized, here is a detailed list of things to bring on closing day.

1. Government-issued ID: It’s essential to bring a valid government-issued photo identification such as a driver’s license, passport, or state ID card on closing day. This will be needed for identity verification purposes during the signing of legal documents.

2. Proof of homeowners insurance: Before finalizing your mortgage loan, your lender will require proof of homeowners insurance coverage. Make sure to bring along this documentation to avoid any last-minute delays.

3. Certified or cashier’s check: Most likely, you will need to bring a certified or cashier’s check for the down payment and closing costs unless you’ve made other arrangements with your lender beforehand.

4. Your checkbook: While some fees may have been paid in advance or rolled into your loan amount, it’s always wise to have your checkbook handy for any unexpected expenses that may arise on closing day.

5. Purchase contract and addendums: You should also bring all copies of the purchase agreement and any addendums that were agreed upon between parties during the negotiation process.

6. Closing disclosure and loan estimate: These are two documents that your lender is required to provide you with at least three days before closing. Make sure to bring them with you for comparison purposes and to ensure there are no last-minute changes.

What to Expect on Closing Day

Closing day is the final step in the home-buying process and marks the moment when you officially become a homeowner. It is an exciting and nerve-wracking time, as it involves a lot of paperwork, signatures, and financial transactions. We will go over what to expect on closing day so that you can be well-prepared and make the most out of this momentous occasion.

1. Final Walk-Through:
Before heading to the closing table, you will have one last chance to do a final walk-through of the property. This is your opportunity to ensure that everything is in the same condition as when you first saw it and that any agreed-upon repairs or changes have been made. If there are any issues, make sure to address them before proceeding with the closing.

2. Closing Disclosure:
The Closing Disclosure (CD) is a document that outlines all of the final terms of your mortgage loan. It includes important details such as interest rates, monthly payments, closing costs, and any other fees associated with your loan. You should review this document carefully and compare it to your Loan Estimate (LE) to ensure there are no discrepancies.

3. Required Documents:
On closing day, you will need to bring certain documents with you such as a government-issued ID, proof of homeowner’s insurance, and any other documents requested by your lender or real estate agent. Make sure to have these documents readily available beforehand to avoid delays during the closing process.

Tips for a Smooth Closing Process

The closing process is the final step in purchasing a home and can often feel overwhelming for first-time buyers. However, with proper preparation and organization, it can be a smooth and stress-free experience. Here are some tips to help you navigate through the closing process with ease.

1. Review all documents beforehand: Before the closing day, your real estate agent or attorney will provide you with a stack of documents to review and sign. It’s important to carefully read through each document and ask any questions you may have. This will ensure that everything is accurate and in line with what was agreed upon during negotiations.

2. Get a pre-closing walkthrough: A pre-closing walkthrough allows you to inspect the property one last time before signing on the dotted line. Make sure to check that all repairs and agreed-upon changes have been made by the seller. This is also a good opportunity to test all appliances, lights, faucets, etc., to ensure they are in working condition.

3. Have all necessary funds ready: Closing costs can add up quickly, so make sure you have enough funds available for payment on closing day. These costs typically include lender fees, appraisal fees, title insurance fees, and homeowners insurance premiums, among others. Be sure to discuss these costs with your lender beforehand so there are no surprises on closing day.

Post-Closing Checklist: What to Do After the Closing is Complete

Once the closing is complete and all necessary documents have been signed, it may feel like a huge weight has been lifted off your shoulders. However, there are still a few important things to take care of before you can fully celebrate becoming a homeowner. This post-closing checklist will guide you through the steps you must take after the closing.

1. Review Your Closing Documents: It’s crucial to thoroughly review all of your closing documents, including the purchase agreement, settlement statement, and mortgage note. Make sure everything looks accurate and matches what you agreed upon during negotiations. If you notice any discrepancies or have questions, don’t hesitate to reach out to your real estate agent or attorney for clarification.

2. Get in Touch with Your Insurance Provider: Now that you officially own the property, it’s time to make sure it’s properly insured. Contact your insurance provider and update them on the new ownership status so they can adjust your coverage accordingly. You may also want to consider getting additional insurance such as flood or earthquake coverage if applicable.

3. Change Your Locks: For security reasons, it’s always recommended to change the locks on your new home after closing. You never know who may still have keys from previous owners or contractors who worked on the property before it was sold.

4. Set Up Utilities: Before moving into your new home, make sure all necessary utilities are set up in your name. This includes electricity, gas, water, internet/cable services, and any other essential utilities for your new home. You don’t want to be without heat or electricity on your first night in your new home.

5. Update Your Address: Don’t forget to update your address with the post office, bank, credit card companies, and any other important accounts. This will ensure that you receive all of your mail and bills at your new address.

6. Keep Track of Important Documents: Make sure to keep all of your closing documents in a safe place for future reference. These may include the purchase agreement, settlement statement, mortgage note, inspection reports, and title insurance policy.

Conclusion

Closing day can be an exciting but overwhelming experience for homebuyers. By following this checklist and preparing in advance, you can ensure a smooth and stress-free closing process. From organizing your documents to conducting a final walkthrough of the property, these steps will help you feel prepared and confident on closing day. Congratulations on becoming a homeowner, now go enjoy your new space!

Buying a home has lots of steps. Once a home buyer is “under contract” on a property, it’s common for them to hire a professional home inspector as the next step. This contingency allows the home buyer to determine whether anything is wrong with the property before purchasing it.

A home inspection typically takes 2 to 4 hours and can reveal plenty of problems with a home. This article covers the 18 most common issues found during a home inspection.

1. HVAC Needs Servicing

Your HVAC system uses almost half of the energy in your home. It works hard every year to keep your home climate-controlled. Therefore, it tends to need servicing quite often. Unfortunately, many people do not service their HVAC systems yearly, which results in issues during the home inspection.

The average home inspector will not do an in-depth job of inspecting the furnace and AC. If you purchase a home with an HVAC system over ten years old, hiring an HVAC specialist to perform a complete system check is wise. This step will help you determine the remaining life of the unit and project future repair costs.

Some common HVAC issues include:

• Dirty Filters (most common issue)
• Improper Flue Installation
• Dirty Coils
• Unlevel Pad
• Cracked Heat Exchanger
• Broken Condenser

2. Water Intrusion

Water damage can be tricky to identify. Thankfully, inspectors are fully trained to find this issue and recommend repairs.

Your roof will often be the first spot for water to leak and will travel downwards. Inspectors will usually start in the attic when looking for water damage from the top of the house. Some of the signs of water damage include the following:

• Cracks and holes– Cracks or holes on the exterior walls are prime spots for water to enter your home.
• Warped floors and damp carpets
• Stained walls and ceilings– Even if the stain results from an old leak that has been repaired, inspectors will still check for mold buildup.
• Peeling paint and wallpaper– This issue may indicate a leak behind the walls.
• Musty odors– This problem can indicate mold buildup, often caused by leaks.

Some water intrusion may result from small leaks, but your inspection report will include details on the breadth of the problem. In addition, it will explain the steps to take to remediate the situation if needed.

3. Roof Problems

Your roof will be one of the critical components an inspector will pay attention to during a home inspection, as it’s one of the essential parts of your home. If the roof leaks, there will be a list of other issues that will follow, which will cause some buyers to back out of a deal. It can be a costly fix on their part.

The condition of your roof will be affected by many factors, some of the main ones being the weather. If you live in an area with a harsh climate, your roof will require more attention than one in a mild climate.

Here are some of the everyday things an inspector will look for during a roof inspection:

• Sagging– This problem occurs when the joists of your home are weakened and cannot properly hold the roof in place. This issue can be exacerbated by large amounts of snow or poor drainage from your roof.
• Overall condition of the roof sheathing– Particularly in areas around chimneys or other roof penetrations and valleys of the roof.
• Soft spots that indicate leaks– These can be further identified by a deeper look in your home’s attic.

An inspector will assess your roof in two different ways. First, if the weather allows and the environment is safe, they will walk the roof to understand its condition.

Second, they will enter your attic. Working in the attic allows them to see areas where current or past leaks have occurred. They will also see signs of roof sagging, spreading, and twisting of the rafters.

4. Electrical Wiring Issues

Every year, it is estimated that 51,000 of the fires in homes are due to electrical wiring problems. So, the electrical system is another critical component of a home’s inspection. Most newly built homes will not have electrical issues. However, older homes with outdated wiring areas are susceptible to fires.

Some of the most common electrical issues an inspector will find are as follows:

• Exposed wiring and fraying
• Painted outlets– which can cause overheating. Common in properties once used as rentals.
• Reversed polarity– This means that the plugs’ hot, neutral, and ground slots have somehow been mixed up.
• Aluminum wiring– Aluminum was considered more cost-effective than copper wiring in the late ’60s and early ’70s, but it can contribute to the potential for a fire in your home.
• Improper modification of electrical panels– This issue can cause intermittent flickering of lights or your switches and outlets not working correctly.
• Missing knockouts– or rectangular shapes missing in a panel

An inspector will check the condition of your electrical panels and outlets, your light fixtures, and the type of wiring in the home. They will include this suggestion in your report if they feel a system needs to be updated. However, if they think a specific area is vital to be fixed upon move-in, they will flag it.

Some electrical fixes will be of relatively low cost. For example, if the entire home needs to be re-wired, it can cost up to $30,000+.

5. Poor Ventilation

While you likely will not run into issues with the ventilation in newer builds, older homes usually have ventilation problems. Poor ventilation will lead to moisture buildup, wood rot, termite infestations, mold development, and foundation issues. Home inspectors will trek into your attic to determine the state of your home’s ventilation.

Why is ventilation important? Poor ventilation can result in much more work for your HVAC system to keep your home cool and comfortable.

If there is not enough ventilation within your home, a large amount of heat will build up in your attic, raising the overall temperature of your home and sending your cooling system into overdrive. Proper ventilation equals more energy efficiency.

6. Poor Drainage and Grading

What is the importance of grading regarding your home’s foundation? Grading refers to the slope present in the area surrounding your home’s foundation. Ideally, you want the slope to face away from your house. Therefore, the water will flow away from the structure rather than towards it.

The insufficient slope will result in water pooling towards your home’s foundation. This problem can result in a flooded basement, damp crawl spaces, cracks in the foundation, and even shifting in your home’s foundation. Structural issues can be very costly.

In an ideal world, the grading surrounding your home is anywhere from three to five percent slope away from the property. In other words, for every two or three feet you step out from your property, the land should drop by two or three inches.

How can you tell if your home might have some issues with the grading on your lawn? Here are some signs to look for:

• Windows that are not square or that look off-kilter
• Interior doors with significant, uneven gaps at the top when closed
• Interior doors that visibly swing to one side or the other when left ajar
• Floors that visibly slope to one side or the other

Correcting grading around your home can be pretty costly. However, depending on who you hire to help with the issues, they may re-grade the land. This step will involve adding fill near your home’s foundation and tamping it down.

The inspector may also recommend installing a French Drain at a low point in your yard. Water is directed into the drain and out to a different part of your yard that can handle it.

Grading your yard is a tough job. Although it can be costly to fix, you will face an even heftier price tag if it is left unattended and damages your home’s foundation.

7. Plumbing Issues

Plumbing issues within a home can be pretty common and very costly. Unfortunately, homeowners may not even realize an issue until inspection, as most plumbing issues present as low water pressure or a slow drain.

The majority of the time, an inspector will pay attention to the following when inspecting your plumbing:

• Whether or not water flows from your taps effectively
• Whether or not your drains work properly
• And whether or not your toilets flush

A home inspector will not be as detailed in their plumbing inspection as a professional plumber; however, they can give you an overview of the issues that need to be addressed upon move-in, if any.

They will likely recommend a professional plumbing inspection if they think there may be a more significant issue outside their expertise. However, rest easy knowing that most plumbing issues found during a home inspection are minor.

8. Foundation Flaws

Foundation problems are perhaps one of the most problematic areas of a home inspection for most buyers. Your home’s foundation is one of the most critical components of its overall structure, so finding an issue here can be very stressful and costly to resolve.

The following factors can cause foundation issues:

• Drainage problems – If your yard is sloping or grading is off, water can settle near your home’s foundation, leading to damage.
• Missing or inadequate steel reinforcement in the foundation
• Intrusive tree roots
• Installation of a second story without reinforcing the original footings
• Natural occurrences like earthquakes, sinkholes, or landslides.

How can you tell if your home may have foundation issues? One of the most significant signs will be cracks in the interior or exterior walls of the house. Some minor signs include tile cracks, bowed walls, siding separation, or uneven floor.

In a perfect world, the seller will have done their best to uncover any foundation issues before listing their home, as not doing so could result in costly negotiations. However, some sellers will wait to see what the market will offer for their home and not worry about fixing an issue that could cost them thousands of dollars.

Therefore, thoroughly inspecting your foundation is a good idea when buying a house.

9. Blocked Gutters or Downspouts

Many people do not stop to consider the importance of gutter conditions. When inspecting your gutters, the inspector will look for the following:

• the guttering system is adequately sized for your home to protect against runoff,
• that the channels are free of rust, cracks, and holes that will cause leaking and
• that the downspouts divert water away from the home’s foundation

Why is it so important to look at your gutters during a home inspection? Because they play a massive role in keeping your home safe from water intrusion.

If your gutters are blocked, cracked, or not diverting the water far from your home, it will settle near your home’s foundation. Over time, erosion will occur, and you will likely develop cracks in your home’s foundation, the perfect environment for water to enter your home.

In addition to the toll it will take on your home’s foundation, water inside your home can find its way into wooden joists, etc. This problem will encourage the development of mold, wood rot, and termite infestation.

Although maintaining your gutters may be annoying, the payoff is excellent. But, of course, you’ll want to deal with any water issue up front before moving into the home.

10. Mold

This component of the home inspection is heavily tied to issues with your plumbing and ventilation systems. For example, if a leak is present, you live in a humidity-heavy climate, or the ventilation systems in your home are outdated, you will be at high risk for developing mold within your home.

Contrary to popular belief, mold will not always be visible to the naked eye. However, you can usually smell mildew in the air when it is present. Mold is prevalent around windows and doors, but it is also a frequent visitor in your bathroom and kitchen. When looking over your home, inspectors will be on the lookout for the following signs:

• A musty, mildew smell
• Signs of warping or cracking around materials such as tile, caulk, etc.
• Moisture buildup in areas with low light or visibility (prime spots for mold)
• Visible mold that will lighten upon application of bleach

Why is it essential to identify whether or not there is mold in your home?

The first obvious answer is that it can lead to health issues like trouble breathing, itchy eyes, sore throat, and coughing. But mold can also indicate a leak inside or outside your home, which you will want to find before it becomes a more significant issue.

If mold is found in the home, there are many ways in which you could try to remove it on your own. However, if the problem is too severe, hiring a professional for mold remediation in your home is always recommended.

11. Termite Damage

Termite inspections are one of the most recommended portions of a home inspection following a purchase. Why is this the case? Because you often cannot see their damage from the outside.

Termites are small insects that feed on the cellulose found in plants, wood, dead leaves, and soil. They often become more active in the spring, feeding on wood from the inside out.

Most of the time, once you notice termite damage with your naked eye, it is too late to resolve the problem just by tinting the home. In addition, replacing portions of the wood in your home’s walls, roof, or foundation will be a very costly.

What are some of the signs of termite damage your inspector will be looking for?

• Buckling floors
• Dry rot in wood floor joists
• Wood rot in door and window frames
• Soft/damp wood
• The presence of mud tubes bored into the soil near the foundation or directly into the home.
• Swarms around indoor or outdoor lights
• Small mounds of what looks like sawdust

Where will your inspector look for termite damage? One of the first areas they will look at will likely be in your crawlspace or basement. These areas are often the first to show signs of moisture, creating the perfect environment for these wood-destroying organisms. Other areas include the following:

• Wall cavities
• Firewood stacked against the side of a home
• Mulch or other landscaping materials near your home’s walls and foundation
• Siding
• Flooring
• Window Frames

A pest control contractor will likely be brought in for proper assessment and treatment if termite damage is noted during the inspection.

12. Wood Damage

This component of a home inspection is very closely tied to termite inspections. During this portion, exposed wood will be what inspectors will focus on the most.

In nature, wood rot is a vital part of the life cycle, but it is not something you want to have present in the house you plan on making your home. Wood rot can lead to the following problems:

• Deterioration of support posts and beams
• Rotted floors and ceiling joists
• Destroyed roofs
• Unstable porches and decks

What causes wood rot? The most common culprit is a combination of moisture and fungi coming together to make a tiny home within the wood. There are three types of wood rot that an inspector will be keeping an eye out for:

• Brown Rot– AKA “dry rot.” The surface of the wood will appear dry, but upon further inspection of its interior, you will find its cellulose has been targeted, breaking into small, cube-like bits.
• White Rot– Noted in wood that takes on a white color and spongy feel.
• Soft Rot– Noted by its honeycomb-like appearance after it breaks down cellulose in the wood. This rot is not commonly found in houses but can be.

If present, repairing wood rot can cost an individual upwards of $20,000.

13. Appliance Issues

Home inspectors examine the appliances within a home to make sure they are in good working order.

Here are some of the typical ones an inspector will look over:

• Your stove range and oven
• The cooktop
• Oven and cooktop vents
• Dishwashers
• Garbage disposals
• Built-in microwaves that convey with the sale of the home

Keep in mind that inspectors are not experts on these appliances. Therefore, they will be unable to fix them themselves if an issue is noted. However, it is their job to ensure that they are working correctly and do not pose any safety hazards to you and your family when you move in.

They often perform tests and checks on the appliances and note any issues in the report. Some of the most common problems include the following:

• Range controls or burners not turning on or heating properly
• Ovens not warming to the proper temperature. Temperature lights not working
• Range hoods not working or being vented into the attic
• Dishwashers not running through an adequate cycle
• Garbage disposal blades not working or not turning on at all.

14. Radon

A radon inspection is usually performed as part of a home inspection. However, sometimes, a buyer may have to request this portion of the inspection specifically.

Why is a radon test recommended? Radon is a colorless, odorless gas that occurs when uranium in soil breaks down. Radon gas is released as a byproduct of that breakdown and can cause many health problems, such as lung cancer.

Although radon is not dangerous in small amounts, it is potentially unsafe when it builds up in your home. In addition, symptoms can take years to present themselves, so it’s essential to consider a radon test during the inspection.

There are a few factors that will indicate a higher risk of radon exposure:

• Location– Areas such as the Appalachian Mountains and upper Midwest have higher amounts of radon present, as sheetrock and wood are frequently used building materials in these areas.
• Foundation Type– Homes built with dirt floors in basements or crawl spaces have nothing to protect against the rise of radon from the soil.
• Foundation Cracks– Cracks provide a perfect spot for the gas to seep into your home.
• Well Water– Groundwater can have radon present in it. Therefore, it is essential to have these levels checked regularly in wells.

What happens if radon is found to be present during the inspection? A professional radon mitigator will be recommended to you. This step can cost anywhere from $800-$1500 to resolve. It is costly, but the effect radon can have on your family’s health may be worse.

15. Building Code Violations

All homeowners would go through the proper channels when building additions onto their homes in a perfect world. Unfortunately, the reality is different.

Adding onto your home can exponentially increase the home’s value, which is why people do it. But, unfortunately, when they realize how much work is involved, they are also tempted to cut corners.

Building codes vary from place to place, but there are some put into place that is nationwide. So, what are some of the most common nationwide building code violations your inspector will be on the lookout for?

• Missing or defective GCFIs– GCFI stands for Ground-fault circuit interrupter. They are required for outlets in the kitchen, bathroom, garage, and all outdoor circuits. Simply put, they protect against electrical shocks.
• Handrails along staircases without returns– Handrails are supposed to be installed with a “return,” a small wooden piece that ends into the wall.
• Misplaced smoke alarms and carbon monoxide detectors– Codes require a smoke alarm on each level of the house and outside every bedroom.
• Deck flashings– Flashing needs to be installed between the deck ledger board and the house, and the ledger needs to be firmly attached. In a lot of DIY decks, ledgers will pull loose from the structure. As a result, these decks can collapse, especially when loaded with people.
• Basement bedrooms with no window for egress– Each bedroom in a home should have a window present to allow for escape if an emergency occurs.
• Bad electrical work– This electrical problem is often a telltale sign of a DIY project and can result in significant fire hazards.
• Bathroom vents leaking into the attic– These vents should always vent outside of the home

If any of these issues are present, it’s possible that a homeowner performed the work. While inspectors are not code experts, they can generally tell you when a room in your home will not pass major code laws.

16. Asbestos

You have probably heard the legal commercials for this one. “If you or a loved one has been exposed to asbestos, you could be at risk for developing lung cancer or mesothelioma.”

Asbestos is a mineral fiber found in rocks and soil found in building materials before 1981. It was a popular product due to its resistance to heat, chemicals, and electricity. Some items that include asbestos are the following:

• Vinyl Flooring
• Siding
• Shingles
• Blankets for hot water pipes

While it is not dangerous when exposed to it in small amounts, your inspector will look for areas that indicate the asbestos has been disturbed. It can crumble and become airborne. This issue may pose a threat to you and your family.

One of the most common fixes for asbestos is encapsulation, a process in which the material will be treated with a sealant that either binds the asbestos fibers together or coats them so they cannot be released.

17. Windows Not Sealing Correctly

Much like poor insulation, windows can lead to poor energy efficiency and high electric bills in your home. They can also cause security threats, as unsealed windows or ones that do not close properly will be a prime target for an unwanted person to enter your home.

Some things that an inspector will look for on your windows include the following:

• Condensation in the window
• White, powdery substance around the windows
• Shower-like scum buildup inside the windows

These are all prime signs that your windows are not sealing correctly. Therefore, it is recommended that you replace the seals in your windows every five years.

In addition to energy considerations and safety concerns, if window seals are not up to par and you are experiencing condensation buildup, this could lead to mold development.

18. Water Heater Issues

In addition to the HVAC, water heaters are one of the potential buyers’ most considerable areas of concern. So, what do home inspectors look for in regards to your water heater?

• Sediment buildup– Sediment buildup within your water heater will result in a smaller water volume than the tank can hold. Your water heater may have to work overtime to heat the water, driving up your energy bill. Most sediment issues can be resolved by draining and flushing the tank.
• Noise– Popping sounds in the tank can indicate sediment buildup and mean that your internal heating system is overheating.
• If there is hot water or not– Usually, this is a sign that the heating element is faulty. They’re relatively easy to replace
• Any water that accumulates underneath the heater– Sometimes, this can just be the result of condensation. Still, after your inspector rules that out, there may be a bigger problem to address.
• Tripped circuit breakers– If your water heater causes your breaker to trip, this is an indicator of a bad heating element or faulty wiring.

Your water heater is the most expensive portion of your entire plumbing system. So this portion of your home inspection will be significant.

Final Thoughts

A home inspection is a vital part of buying a home. Ask your real estate agent for a list of good inspectors in your area. When you have found one that you like, book them to get your inspection scheduled.

Your inspector will look at many different components during the home inspection process. Then, they will write a detailed report about what areas were flagged and which ones are in good condition. This blog post will help prepare you for the common things that fail a home inspection.

You may be able to enter into negotiations with the sellers to help fund some of the fixes found during the inspection before closing on the home. However, if you live in a hot market where homes are sold as-is, the likelihood of a seller putting any capital towards fixes is very slim.

Even if this is the case where you live, home inspections are still recommended. You will know what needs to be fixed upon moving into your home, and you can begin planning for the work that needs to be done. In addition, home inspections are a great way to ensure that you move into your next home with realistic expectations.

In recent years, homeowners associations (HOAs) have become increasingly popular among homebuyers. According to a study by the Community Associations Institute, approximately 26% of Americans now live in some form of community association, with HOAs being the most common type. So what exactly is an HOA and why are more people choosing to live in one?

What is a Homeowner’s Association? 

A Homeowner’s Association (HOA) is a governing body that manages and maintains a residential community or neighborhood. This organization is typically created when a developer builds a new housing development, such as a condominium complex or planned community. The purpose of an HOA is to ensure the smooth running and upkeep of the neighborhood for the benefit of all its residents.

The function of an HOA is to enforce rules and regulations, collect fees, and manage common areas within the community. These rules and regulations are outlined in the HOA’s governing documents, which include articles of incorporation, bylaws, and covenants, conditions, and restrictions (CC&Rs). These documents are legally binding for all homeowners within the association.

One of the main functions of an HOA is to maintain property values within the community. This is achieved by enforcing architectural guidelines that ensure consistency in design and appearance among homes in the neighborhood. By maintaining a certain standard of aesthetics, homeowners can feel confident that their property values will not be negatively affected by neighbors who do not properly maintain their homes.

Another important role of an HOA is to manage common areas within the community. These may include parks, playgrounds, clubhouses, swimming pools, or other shared amenities. The cost of maintaining these areas typically comes from fees collected from homeowners. This ensures that everyone in the community has access to well-maintained facilities and services without having to individually pay for them.

The Importance of Thoroughly Reviewing the HOA

Purchasing a home in a homeowner’s association (HOA) comes with a lot of responsibilities and commitments. One crucial aspect that prospective buyers need to carefully consider before making such a purchase is reviewing the HOA contract. This document outlines all the rules, regulations, and bylaws that govern life within the community and can have a significant impact on your homeownership experience.

In this section, we will discuss why it is essential to thoroughly review the HOA contract before purchasing a home in an HOA.

1. Know What You’re Getting Into

The primary reason for reviewing an HOA contract is to understand what you are getting into as a homeowner. The contract will provide you with information on what services and amenities are included in your fees, how much those fees will be, and how often they may increase. It also outlines any restrictions or limitations on using common areas or modifying your property.

By thoroughly reviewing the HOA contract, you can gain insight into what type of community you are joining and whether it aligns with your lifestyle preferences.

2. Understand Your Financial Obligations

As mentioned earlier, the HOA contract includes details about fees and their potential increase over time. As a prospective buyer, it is crucial to understand these financial obligations fully. In addition to regular monthly or annual dues, some associations may also charge special assessments for unexpected expenses or capital improvements.

Thoroughly reviewing these details will help you budget accordingly and avoid any surprises down the road.

3. Familiarize Yourself with Rules and Regulations

HOA contracts also include rules and regulations that dictate how homeowners should conduct themselves within the community. These rules can range from pet restrictions to parking guidelines to noise regulations. By thoroughly reviewing these rules, you can ensure that you are comfortable living within the community and are willing to comply with all regulations.

4. Identify Any Potential Issues

Reviewing an HOA contract may also help identify any potential issues or red flags within the community. For example, if there is a history of frequent fee increases or disputes between the HOA and homeowners, it may be a sign of poor management or financial instability.

Thoroughly reviewing the contract can help you make an informed decision about whether this is a community you want to be a part of.

5. Seek Legal Advice

In some cases, an HOA contract may contain complex legal language or provisions that are difficult for the average person to understand. In such situations, it may be wise to seek legal advice before signing off on the contract.

An experienced real estate attorney can review the document and explain any terms or clauses that may not be clear to you. This can help prevent any misunderstandings or legal issues in the future.

In conclusion, thoroughly reviewing an HOA contract is crucial for any prospective buyer considering purchasing a home in an HOA. It helps to ensure that you have a complete understanding of your financial obligations, community rules and regulations, and potential issues within the community. Seeking legal advice may also be beneficial in navigating complex contract language.

Benefits of Living in an HOA

There are several benefits to living in an HOA that make it an attractive option for many homebuyers. One major advantage is the added sense of security and safety that comes with living in a regulated community. Most HOAs have rules and regulations in place that help maintain the overall appearance and cleanliness of the neighborhood, creating a more desirable living environment for residents.

Another benefit is access to shared amenities that may not be available in non-HOA neighborhoods. These can include things like community centers, fitness facilities, playgrounds, or even private beach access. In addition to these amenities, many homeowners also appreciate the convenience of having someone else take care of maintenance tasks such as lawn care or snow removal.

Final Thought

An HOA is a legal entity formed by a real estate developer to manage and maintain a residential community. When purchasing a home within an HOA, residents are automatically members and are required to pay dues or fees towards the maintenance and upkeep of shared amenities such as parks, pools, or landscaping.