21 Things I Wish I Was Told When I Started Real Estate

Your suggestions wanted!

What would you like more information on?  Email me or comment  below! I'd love to be as helpful as possible!

 

Homeowners Insurance

Homeowner's insurance exists because a home is a huge investment, often one of the largest purchases many people make in their lifetimes. Naturally, people want to protect the value of their precious property. Homeowners insurance is a contract between a homeowner and an insurance company. As long as the owner pays the required premiums and meets the other policy requirements, the insurance company guarantees to reimburse the owner for any losses incurred due to natural disasters or human-caused damage.

What Does It Cover?
A basic homeowner’s insurance policy protects the owner against any property damage that results from things like fire, lightning, wind or hail storms. It will also provide for motel and food costs if you are forced to leave your home while such damages are repaired.
A typical policy, however, does not cover flood or earthquake damage. Because these issues are usually specific to certain regions of the country and can cause extreme damage, these can be purchased as separate policies. If you live in a flood zone or near an earthquake fault line you may be required by your mortgage company to carry these protections.
A basic policy will also cover homeowners against loss from theft or vandalism as well as reimbursement for personal property destroyed in natural disasters. It will also provide for something that many people may not normally associate with home protection – liability coverage for lawsuits brought against the owner by people who were injured on the property. This includes the cost of legal defense up to the allowed policy limit. Additionally, most policies will have a provision that will cover the basic medical expenses for the parties.

Is It Required?
Homeowners insurance is almost universally required by mortgage companies with the purchase of a home. This is because the investment is almost as big for them as it is for you. They want to make sure the property is protected from major damages so that if you are ever unable to keep up with your payments, the lender can then reclaim ownership and be able to sell it fairly easily. And even if you own your home outright, a good insurance policy is still the best way to protect the value of your home in the face of the unexpected.

Is homeowner's insurance required?, What does homeowner's insurance cover?, What is Homeowner's insurance?

Home Inspections: Pass or Fail?

Get a Home Inspection

Nearly all real estate Purchase Agreements (contracts) for homes sold today include a home inspection contingency clause. This provision allows the buyers to choose and hire a professional home inspector, usually at their own expense, to thoroughly evaluate the home for any major problems. A home inspector will not pass or fail a house, but rather describe its physical condition and indicate what components and systems may need major repair or replacement. 

Once the purchase agreement has been signed, inspections usually happen quickly, most often within 5 days.  After an appointment is made with the seller, the home inspector arrives and goes through the entire house.  Typically, a home inspection will take two to three hours and include a check of the home’s structural and mechanical condition.  But besides the structural and mechanical inspection, home inspectors may also do tests for radon gas, look for mold, check for wood destroying insects, or perform other services requested by the buyer.  Most buyers will meet the inspector at the house to review the inspector's findings.

Since 1976, home inspections have been standardized by the nation’s leading home inspector association, the American Society of Home Inspectors, Inc. (ASHI). The Society’s “Standards of Practice” dictate what must be inspected and how far home inspectors need to go to report those findings.

Minnesota does not currently have regulations in place for home inspectors but according to ASHI, a basic home inspection includes an evaluation of 10 different areas of the home: structure, exterior, roofing system, plumbing system, electrical system, heating system, air conditioning system, interior, insulation and ventilation, and fireplaces.

Within these areas, ASHI’s Standards of Practice details what inspectors must look at, as well as what may be excluded, from the inspection. For example, when inspecting the roofing system, inspectors must evaluate the roof shingles, gutters, flashing, skylights, chimneys and other penetrations like plumbing vents.  However, an inspector is not required to inspect a satellite dish, or to look inside chimneys that are not easily accessible.

When the home inspection is complete, the inspector will issue a report to the home buyer detailing what was found.  Inspectors will report on problems needing immediate attention, as well as conditions that can lead to more serious defects down the road.


No house is perfect. If the inspector identifies problems, it does not mean you should or shouldn’t buy the house, only that you will know what to expect. If your budget is tight, or if you don’t want to become involved in future repair work, this information will be important to you. If major problems are found, a seller may agree to make repairs or you may cancel the purchase agreement if this is within your contingency terms.

Only inspectors that are ASHI members are required to follow these strict guidelines.  However, some states also require licensing to become a home inspector, which carries with it it’s own set of requirements of what to inspect.  Even so, many states have adopted ASHI’s standards and its Code of Ethics as the benchmarks of professional performance.

Please interview your inspector about their education, experience and insurance prior to hiring them and ask if they have passed the National Home Inspector Examination. Also, be sure to know the time constraints within your purchase agreement contingency.

Need inspector referrals?  Call me!

How can I keep track of the homes I have seen?

Book-A-Showing!

What is Book-A-Showing and how do I use it as a buyer?

If you agent is a member of Book-A-Shoing, they can create a BookAShowing.com login account for you which allows you to see all of your showing activity (past and present), generate detailed maps to each showing appointment, and more. Whether you have looked at 1 house or 50, your and your agent will always have a reference of what you have viewed and when, and your showing feedback about the property.

When you request a showing on a home, you will receive e-mail notifications of confirmed showing appointments.  This eliminates the need for your real estate agent to call/text you multiple times with updates. You'll be more informed - faster!

Call me to get set up today!