Art's Real Estate Blog

There are certain standard costs associated with closing the sale of a house. These fees are split between the buyer and the seller, as spelled out in the sales contract.

Good Faith Estimate

Buyers will receive a "Good Faith Estimate" of closing costs at the time the loan application is submitted to the lender. The estimate is based on the loan officer's past experience and may not include all the closing costs.

Standard Closing Costs

Loan-Related Costs

· Loan Origination Fee

· Points (optional)

· Appraisal Fee

· Credit Report

· Interest Payment

· Escrow Account

Taxes

· Property Taxes

· Transfer Taxes and Recording Fees

Insurance

· Homeowners Insurance

· Flood or Quake Insurance

· Private Mortgage Insurance (PMI)

· Title Insurance

Email Art@JBres.com to receive more information on these costs.

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County Real Estate

Home buyers are typically concerned about the structural and mechanical condition of the home (i.e. roof, heater and air conditioner, plumbing, electrical, etc). However there is more to consider that could require expensive repairs or affect the value of the property.

Additional questions buyers should be asking:

¯ Who has access to your property and for what purpose? Government or a private entity may have an easement to enter your property. You could wake up one morning to find a fishing club crossing you property to fish in what you believed was your own private swimming hole.

¯ Who are your future neighbors? What is the zoning for neighboring properties? Could those wonderful trees be removed and a noisy commercial mall replaces them? Email me at Art@JBres.com to find out how to talk to a zoning official about neighboring properties.

¯ Is there room for a septic system and if not is sewer available? Most properties in the Alpine and the East County  require a septic system. Is there enough room for the leach field and a reserve? Additionally, a perk test will be required. There are some sewers in San Diego’s East County, if the property is not already connected to the sewer system, how much will it cost to hook up.

¯ How about the utilities? Is the house really attached to that cable line? If not, it can be expensive to run them that extra few feet.

¯ Are you in a flood zone? Has the house ever experience flooding? It only takes high water pouring into your home once to destroy a life time of wonderful memories.

¯ Are there any fuel tanks underground that have been abandoned? Any leakage can be costly to remediate or remove. It could possible be mandatory to clean up these areas in the future, as environmentally requirement change.

¯ Have there been any chemical spills? What happened half a century ago can be an environmental catastrophe today. A free resource for information is the Department of Environmental Conservation and Federal Superfund site Web sites.

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County Real Estate

Also referred to as a listing agreement, the listing contract gives a licensed real estate professional authorization to act on your behalf in the sale of your home. Listing contracts come in all shapes and sizes, but there are characteristics which are common to all.  Among the elements of any valid listing contract are:

Writing - All real estate contracts must be in writing.

Employment - The listing contract is a personal services contract between you and the broker.  It contains all of the terms and conditions of employing the broker and authorizing the broker to represent you in marketing and selling your home.

Compensation - For any contract to be valid, there has to be compensation.  The listing contract will specify the amount and timing of payment to your broker.  Typically, payment is an agreed upon percentage of the sales price, payable at closing.  It is important to note that your obligation to pay your broker may not absolutely depend on a finalized sales transaction.  For example, if the broker finds a bona-fide buyer who is willing to pay your asking price and agree to the terms you have offered, but you get cold feet at the last moment and decide not to sell, the broker has done his job and is entitled to be paid under the terms of the listing contract.

Title - All listing contracts will ask who has title to the property.  Property can't be sold unless everyone that holds title interest in the property are part of the sale.

Termination date - You shouldn't sign any listing contract without a specific termination date.  The most common duration is 180 days.  If the contract has an indefinite duration such as until sold, or no duration specified at all, dont sign it.  The listing contract is a legally binding document and you don't want to get locked into one with no clearly defined termination date.  If the contract expires before your home sells and you still want to keep using the same broker, you can simply sign a new contract.

There can be and often are other elements to a listing contract.  As with any legal document, you should read the listing contract very carefully and be sure you understand exactly what you are agreeing to before signing.  If you have any questions about your listing contract it would be wise to consult a lawyer for clarification.

Outlying areas of Alpine and the East San Diego County are mostly serviced by wells.                                        

A house that relies on well water can be a turnoff to some buyers. But before buyers shun these homes completely, here are some things that real estate professionals can help them investigate:

• Is it drinkable? Most mortgage lenders require a water potability test before closing a loan on a property. Beyond that, the buyer should consider a professional inspection and possibly more testing for potential contaminates.

• Do some official research. It's a good idea to look at the "well log" or "drilling report" from the county health department or environmental services office. These logs include information like construction date, contractor's name, drilling method and materials used, depth of the well, geological formations encountered, gallons per minute drawn, and distances from structures or septic fields when the well was built. These logs will also include any servicing or repair work done.

• Visual inspection. Inspect the well visually. Ideally, the well should be higher than surrounding ground. Look for pooled surface water around the well, which can indicate drainage problems.

• Look around. Are there potential sources of contamination — barnyards, septic systems, or ponds uphill from the well? Nearby underground gas tanks also can be a problem.

Source: The Washington Post, Ann Cameron Siegal (08/25/07)

Arthur A. Armagost
Art@JBres.com
JB Real Estate Service
Specializing in Alpine and East San Diego County Real Estate