Congratulations on Your New Home!

CONGRATULATIONS ON YOUR NEW PURCHASE!  BUT…….Before the closing, there is one essential step that must be taken with your REALTOR®: The Final WalkThrough.

A few days before closing, your agent will call to schedule the date and time of the final walk-through. This is an important event because it is the last chance to examine the condition of the property before settlement.

The sales contract that you signed requires the seller to warrant that the central air conditioning, heating, plumbing and wiring systems on the property are in working order on the date of closing. It also guarantees you the buyer the right to a “walk-through” review of the property prior to closing.

It is imperative that every buyer do a final walk-through on the property they intend to purchase as close to the closing as possible. Many times the walk-through  occurs an hour or two before the closing. You will meet your agent at your new home to review the condition of the property and then go directly to the closing. If any problems are noted, your agent will contact the seller’s agent so he/she will have time to discuss the situation with the seller and determine alternatives to address the issues.

The walk-through just prior to closing doesn’t eliminate every surprise that a new buyer might face. But it significantly reduces the chance of closing on an unknown disaster. Here is a quick guide of some of the areas to consider during a final walk through:

Final Walk-Through Guide

BRING YOUR INSPECTION REPORT AND THE AGREEMENT BETWEEN THE BUYER AND SELLER ON ANY REPAIRS TO BE PERFORMED – THEN REFER TO IT!

Double Check the Paperwork
You are entitled to receipts for the work which has been done. Are all work orders complete? Are you satisfied with the results?

Exterior Review
**Check for any changes to exterior since property went under contract.  Are all the plants still there?

Plumbing Review
**Flush all toilets.
**Check all faucets for water pressure and temperature.
**Check operation of all appliances

Interior Rooms Review
**Check for any changes to interior since the contract.  Is the property broom clean per the contract?  Is the garage empty?

Electrical Review
**Check all lights, outlets, bathroom fans and kitchen fans.

Furnace and Air Conditioning Review
**Check operation of all systems.

Attic and Basement Review
**Check for changes in any stained, damp or wet areas.

The final walkthrough should be done with a complete checklist and organized plan. After a review of the home inside and out with a checklist will get you back to exciting part of that final walk-through.. Imagining yourself in your new home!

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Get a ruler to measure the square footage!

A very recent change to our MLS Listings in the DC metro area: Square Footage is now displayed as a matter of course. This is a big change for many agents who were reluctant to put square footage into the MLS for fear of making a mistake and having to “give” a few extra feet as a house warming gift if the square footage was overstated.  Who wants to run that risk?  

Unfortunately, since it is in fact impossible to “give” a few extra feet at settlement, buyers have sued either the seller or the realtors because the listing agent overstated the square footage. 

With the new change, the MLS “pulls” the square footage data directly from the tax records and displays it in the MLS listing.  Unfortunately the square footage reported in the tax records is not guaranteed to be accurate either.  Frequently, that new addition is not included in the reported square footage. How do you know if the finished basement is included. What about the garage?  The tax record may be wrong too.

Since there is no guarantee that the tax record will be correct, if you are thinking of selling – you should make sure the tax record has the correct size.  Now that the tax record square footage is included in all multiple listings, it may become a filter item that buyers use to search for properties.  A buyer could eliminate your property if the tax record is wrong and the reported size is not what they are looking for.

Buyers and their agents sometimes calculate price per square foot when comparing homes as a method to estimate their value. It seems to be an easy number to calculate and certainly is an easy concept to grasp. But how reliable is the number when valuing a single, unique property? Since the space in the home included in the square footage reported by the tax record may be wildly different from one house to the other, it is not a perfect method of analysis.  You need to question the accuracy of the data being presented, account for the uniqueness in each piece of real estate, and be sure that you are comparing very similar properties in the process. Looking at an average price per square foot for a neighborhood and then multiplying for the home you are looking at is likely NOT a reliable way to figure its true market value.

If you are thinking of buying or selling a home in this market, you definately want an experienced agent who will guide you through changes like this one. Please give Lise Howe a call if you have any real estate questions.

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