Blog – The Korwels Team

All about home inspection

The Importance of a Home Inspection

Buying a home is a significant investment, and a home inspection is a crucial step in the process. It provides valuable insights into the property’s condition and potential issues, helping you make informed decisions about your purchase.

Why a Home Inspection Matters

Identifying Structural and Safety Concerns: A home inspector will thoroughly examine the property’s foundation, framing, roof, electrical system, plumbing, and heating/cooling systems. They can identify potential structural weaknesses, safety hazards, and code violations that may not be visible to the untrained eye.
Assessing the Overall Condition: The inspector will evaluate the general condition of the property, including the interior and exterior finishes, appliances, and overall maintenance. This information helps you understand the property’s age, wear and tear, and any necessary repairs.
Budgeting for Repairs and Maintenance: Knowing the property’s condition allows you to budget for potential repairs and maintenance costs. This helps you avoid unexpected expenses after closing.
Negotiating Power: If the inspection reveals significant issues, you can use this information to negotiate a lower purchase price or ask the seller to make repairs before closing.
Peace of Mind: A thorough home inspection can provide you with peace of mind knowing that you’re making an informed decision about your investment.

What Does a Home Inspection Typically Cover?

A standard home inspection typically covers the following areas:

Foundation: Checks for cracks, water damage, and other structural issues.
Roof: Assesses the roof’s condition, including any leaks, missing shingles, or other damage.
Plumbing: Evaluates the plumbing system for leaks, water pressure issues, and the condition of pipes and fixtures.
Electrical System: Tests the electrical system, including outlets, switches, and wiring.
Heating and Cooling System: Checks the condition of the HVAC system, including the furnace, air conditioner, and duct work.
Attic and Crawl Space: Inspects the attic and crawl space for insulation, ventilation, and signs of pests or water damage.
Interior: Assesses the condition of walls, floors, ceilings, and cabinets.

How Much Does a Home Inspection Cost?

The cost of a home inspection varies depending on several factors, including:

Size of the Home: Larger homes typically require more time to inspect, which can increase the cost.
Age of the Home: Older homes may have more potential issues, which can also increase the cost.
Location: Home inspection costs can vary by region.
Inspector’s Experience: More experienced inspectors may charge higher rates.
Specific Services Included: Some inspectors offer additional services, such as radon testing or mold inspection, which can add to the cost.

Typically, you can expect to pay between $300 and $500 for a home inspection. However, some inspections may cost more, especially for larger or more complex properties.

Who Pays for the Home Inspection?

Traditionally, the buyer is responsible for paying for a professional home inspection. However, there are some exceptions and nuances to consider.

Buyer Pays: In most cases, the buyer assumes the cost of the home inspection to ensure the property’s condition before purchasing.
Seller Pays: Sometimes, sellers may offer to pay for a home inspection as an incentive to attract buyers, especially if the home has been on the market for a while or has known issues.
Negotiation: The cost of the home inspection can sometimes become a negotiation point during the offer process. Buyers may include the cost of the inspection as part of their offer, and sellers may agree to pay for it or negotiate a lower price.

How to Schedule a Home Inspection

Once you’ve found a home you’re interested in, you can schedule a home inspection with a certified inspector. Be sure to choose an inspector who is licensed and insured.

When scheduling the inspection, you’ll need to provide the inspector with the following information:

Property Address: The inspector will need to know the address of the property to be inspected.
Access to the Property: The inspector will need access to all areas of the property, including the attic, crawl space, and basement.
Any Known Issues: If you’re aware of any existing problems with the property, be sure to let the inspector know.

What to Do After the Inspection

After the inspection, you’ll receive a detailed report outlining the inspector’s findings. The report will include any potential issues and recommendations for repairs.

If the inspection reveals significant problems, you may want to negotiate a lower purchase price or ask the seller to make repairs before closing. You may also want to get quotes from contractors to determine the cost of repairs.

Conclusion

A home inspection is an essential part of the home buying process. By investing in a home inspection, you can protect yourself from costly repairs and ensure that you’re making a sound investment.

Additional Tips for Home Buyers

Do Your Research: Before you start looking at homes, do your research and learn about the different types of home inspections available.
Get Multiple Quotes: Get quotes from several different inspectors to compare prices and services.
Be Present During the Inspection: If possible, be present during the inspection (and ask your agent to accompany you) so you can ask questions and learn more about the condition of the home.
Don’t Be Afraid to Ask Questions: If you have any questions about the inspection process or the inspector’s findings, don’t be afraid to ask.

By following these tips, you can ensure that you’re making an informed decision about your home purchase.

Buyer

Navigating Wisconsin’s New Real Estate Landscape

Real estate market has recently undergone significant changes, impacting the home-buying process. Here’s a breakdown of the key updates as they relate to Wisconsin real estate transactions that you need to be aware of.

Mandatory Written Documents

Before viewing a property, buyers in Wisconsin are now required to sign one of three written documents:

Agency Agreement: This agreement establishes a formal relationship between the buyer and their real estate agent, outlining the agent’s fees as well as their duties and responsibilities.
Disclosure to Customers: This document provides information about the agent’s limited duties with no agency agreement. Agent does not represent buyer in the transaction, they only fill out contract per buyers instruction and cannot provide any advise.
Pre-Agency Showing Agreement: This agreement is used when a buyer is considering working with an agent but hasn’t yet made a final decision. Agent cannot provide advise or fill out contract until buyer decides if he wants to work with agent.

Buyer Responsibility for Agent Commission

It’s important to understand that buyers are responsible for paying their real estate agent’s commission. However, buyers can request sellers to provide a credit towards the cost of their agent commission. This is known as a seller concession and can be negotiated during the offer process, along with purchase price and other terms.

Conclusion

Navigating the Wisconsin real estate market can be exciting but also challenging. With the recent changes to the home-buying process, it’s more important than ever to have a knowledgeable and experienced real estate team by your side.

The Korwels Team is here to help you every step of the way. Our team of dedicated professionals can provide expert guidance, negotiate on your behalf, and ensure a smooth home-buying experience.

Ready to get started?

Contact The Korwels Team today to schedule a consultation and learn how we can help you find your dream home in Wisconsin.

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Pre-qualified or pre-approved?

Which one when?

When embarking on the journey of purchasing a home, understanding the distinctions between pre-qualification and pre-approval is crucial. These two terms often get used interchangeably, but they represent different stages in the homebuying process – and different levels of scrutiny. Let’s delve into the details to help you make informed decisions.

Pre-Qualification: The Initial Step

Pre-qualification is a preliminary assessment that provides a rough estimate of the loan amount you might be eligible for. It’s a relatively informal process that typically involves a brief conversation with a lender or completing an online questionnaire. Lenders will generally ask about your income, debt, and credit history to get a sense of your financial situation.

Key Points About Pre-Qualification:

Informal assessment: Doesn’t involve a thorough credit check.
Estimate: Provides a general idea of your borrowing capacity.
Early stage: Often a starting point in the homebuying process.
No commitment: Doesn’t guarantee loan approval.

Benefits of Pre-Qualification:

Helps set a budget: Gives you a better understanding of your price range.
Streamlines the process: Can expedite the homebuying journey.
Enhances your negotiating position: Shows sellers you’re a serious buyer.

Pre-Approval: A More Formal Commitment

Pre-approval is a more rigorous process that involves a comprehensive review of your financial information, including a credit check. It’s a stronger indication of your creditworthiness and ability to secure a loan. Lenders will typically require documentation such as tax returns, pay stubs, and bank statements.

Key Points About Pre-Approval:

Formal process: Involves a thorough credit check.
Conditional approval: Subject to the property appraisal and verification of income.
Stronger commitment: Shows sellers you’re a serious buyer with financing in place.
Rate lock option: May allow you to lock in an interest rate for a specific period.

Benefits of Pre-Approval:

Increases your chances of success: Demonstrates to sellers that you’re a qualified buyer.
Streamlines the closing process: Can expedite the transaction.
May offer better interest rates: Lenders may provide more favorable terms to pre-approved buyers.

When to Get Pre-Qualified and Pre-Approved

Pre-Qualification:

Early in the homebuying process: If you’re just starting to explore your options.
To get a sense of your budget: Before starting your home search.

Pre-Approval:

When you’re ready to make an offer: To demonstrate your financial capability to sellers.
To lock in an interest rate: If you’re concerned about rising interest rates.

Factors Affecting Pre-Qualification and Pre-Approval

Several factors can influence your pre-qualification and pre-approval status, including:

Credit score: A higher credit score generally leads to better terms.
Debt-to-income ratio: A lower debt-to-income ratio improves your chances of approval.
Income: Higher income can increase your borrowing capacity.
Employment stability: A steady job history is beneficial.
Down payment: A larger down payment can reduce your loan amount and improve your chances of approval.

Choosing the Right Lender

Selecting the right lender is crucial to the pre-qualification and pre-approval process. Consider the following factors when making your decision:

Reputation: Choose a reputable lender with a track record of customer satisfaction.
Rates and fees: Compare interest rates and closing costs from different lenders.
Terms and conditions: Understand the loan terms and any associated fees.
Customer service: Look for a lender that provides excellent customer support.

Additional Tips

Start early: Begin the pre-qualification or pre-approval process well before you start your home search.
Get organized: Gather all necessary documentation, such as tax returns, pay stubs, and bank statements.
Shop around: Compare offers from multiple lenders to find the best terms.
Be transparent: Provide accurate information to your lender to avoid delays.
Consider a pre-approval lock: If you’re concerned about rising interest rates, consider locking in your rate.

By understanding the differences between pre-qualification and pre-approval, you can make informed decisions and increase your chances of successfully purchasing a home. Remember, these are essential steps in the homebuying process, so take the time to research and choose the best options for your specific needs.

Contact us today if you have additional questions – we can also suggest some local lenders we work with and trust to guide you through the process.

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Home Sweet Tax Breaks

Advantages of home ownership explained

Homeownership offers a multitude of tax advantages that can significantly impact your bottom line.

One of the most well-known benefits is the mortgage interest deduction. If you itemize deductions, you can typically subtract the interest paid on your home loan from your taxable income. Similarly, property taxes, which are often substantial, can also be deducted.

Another key factor is capital gains, which is the profit realized from selling an asset—in this case, your home. While capital gains can be subject to taxation, homeowners can strategically reduce their tax liability by understanding capital improvements. Those permanent additions or alterations to your home increase its value or prolong its life. Examples include adding a new room, upgrading the kitchen, or replacing the roof. These expenditures increase your home’s tax basis—the original purchase price plus the cost of improvements. A higher tax basis means a lower capital gain when you sell. Just by carefully documenting capital improvements and maximizing your home’s tax basis, you can potentially shield a significant portion of your sale proceeds from capital gains taxes.

For homeowners who use a portion of their residence exclusively and regularly for business purposes, the home office deduction can provide valuable tax relief. This deduction covers a percentage of your home’s expenses, including utilities, insurance, and depreciation, based on the square footage allocated to your home office.

Furthermore, making your home more energy-efficient can not only save you money on utility bills but also potentially qualify you for energy tax credits. These credits are offered to encourage homeowners to adopt environmentally friendly practices and reduce their carbon footprint.

By understanding and maximizing all of these tax advantages, homeowners can transform their property into a valuable financial asset.

Disclaimer: Tax laws are subject to change, and the deductibility of these items can vary based on individual circumstances. It’s essential to consult with a tax professional for personalized advice.

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Tips for Unmarried Couples Buying a House

For unmarried couples, the excitement of buying a home can be tinged with a bit of uncertainty. Fear not! With some careful planning and knowledge , you can navigate the process smoothly and build a secure nest together.

Understanding Title Ownership: You Say Yours, I Say Ours

One of the key differences unmarried couples face compared to married couples is the lack of automatic legal protections. This is especially true when it comes to ownership of the property. Here, you’ll need to decide how you want to hold the title, essentially determining how you own the house:

Joint Tenancy with Right of Survivorship: This is the simplest option. Both partners own the property equally, and if one partner passes away, the other automatically inherits their share. This avoids probate, a lengthy and costly legal process that determines how assets are distributed after death. Sounds perfect, right? Well, it’s important to understand that both partners have equal rights to the property, meaning either can sell their share without the other’s consent.
Tenancy in Common: This option offers more flexibility. Each partner can own a different percentage of the property, based on their down payment contribution, for example. You can also designate who inherits your share upon death through a will. This might be useful if one partner contributes significantly more financially. However, tenancy in common does not include the right of survivorship. If one partner dies without a will, their share may go to their legal heirs, which could potentially be someone other than your partner.

Choosing the Right Title:

Deciding how to hold title depends on your specific circumstances and long-term goals. Here are some factors to consider:

Financial Contribution: Did one partner contribute a larger down payment? Tenancy in Common allows you to reflect that contribution in ownership percentages.
Future Plans: Do you plan to have children or get married in the future? Joint tenancy with right of survivorship might be simpler, but discuss how future life changes could impact your decision.

Remember, this is a crucial decision. Consulting with a local real estate attorney is highly recommended. They can explain the legal implications of each option within the context of your state’s laws and help you choose the title structure that best suits your needs.

The Mortgage Maze: Two Hearts, One (or Two) Mortgages?

Getting pre-approved for a mortgage is an essential first step in the home-buying journey. However, as an unmarried couple, there are some additional things to keep in mind:

Joint Mortgage Eligibility: Both your credit scores, income, and debt-to-income ratios will be considered to determine your borrowing power.
- Credit Scores: The lower of your two credit scores will often affect the loan terms you qualify for, including the interest rate. Discussing credit improvement strategies and working towards a healthier credit score together can be beneficial.
- Income Verification: Combined income determines the maximum loan amount you can qualify for.
- Debt-to-Income Ratio: This ratio shows the lender how much debt you carry compared to your income. A lower ratio (typically below 36%) indicates a better ability to manage mortgage payments.
Applying for a Mortgage as Unmarried Partners: Be transparent with the lender about your relationship status. This could affect the loan agreement. Have all necessary documents ready, such as proof of income, employment verification, and identification for both partners.

Beyond the Bricks and Mortar: Protecting Your Nest Egg

While love is the foundation of any relationship, legal agreements can provide much-needed peace of mind. Consider these two options:

Cohabitation Agreement: This outlines who owns what assets and how finances will be handled if the relationship ends. It can address things like furniture, appliances, and even shared bank accounts.
Property Agreement: Similar to a prenuptial agreement, this specifies each partner’s financial contribution to the property and how it should be divided upon separation or death. This can be particularly important if one partner contributes significantly more financially towards the down payment or renovations.

These agreements can prevent disagreements and potential legal battles down the road. Remember, a real estate attorney can help draft these documents properly to ensure they are legally binding.

This post has explored the key considerations for unmarried couples buying a house, from understanding title ownership and navigating the mortgage process to implementing legal protections like cohabitation agreements and property agreements. Remember, seeking guidance from a real estate attorney is invaluable throughout the journey.

So, are you ready to turn your dream of homeownership into a reality? Contact us today! We can help you navigate the process from start to finish, ensuring a smooth and stress-free experience. Let’s build your dream home together, on a foundation of love, planning, and legal security.

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Trunk & Treat 2023

Join us and some of our favorite clients and friends for this unique Halloween event, held on Sunday before 👻 Halloween 💀.

When: Sunday, October 29, 2023 from 1 to 3pm

Where: Parking at Keller Williams Madison West, 555 Zor Shrine Pl #100, Madison, WI 53719

What: Food 🌮 & ice cream 🍦 truck + lemonade stand 🍋

Bounce 🛝 houses & games 🎯

Children’s jewelry 💍 and clothing 🧢 vendors

And of course, plenty of Trick or Tricking candy 🍬!

No RSVP needed, just stop by!

Bring along family and friends!

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Let’s bake cookies

Double Chocolate Peppermint Cookies

Instructions

Preheat oven to 350 degrees F.
In a bowl, mix the butter and sugar together for about 2 minutes.
Add egg, peppermint extract and beat well, until light and fluffy.
Sift flour, salt, cocoa powder, baking soda and powder gradually over the wet ingredients, mixing as you go, until well combined.
Add chocolate chips and lightly stir in with a mixing spoon.
Chill the dough in the freezer for 10 minutes while the oven finishes heating.
Form the dough into small balls (heaping 1 Tbsp) and place 1.5 inches apart on an un-greased or parchment-lined baking sheet. Press the tops down and then top with a few more chocolate chips for more flavor.
Bake for about 10 minutes. The edges should start to dry but the tops should still be slightly soft looking.
Set on the cookie sheet for a few minutes more but sprinkle crushed candy cane on right away.
Transfer to a cooling rack to rest until completely cooled.
Store in an airtight container to keep fresh for up to a few days or freeze for several weeks.

Ingredient list

1/2 cup unsalted butter
3/4 cup sugar
1 large egg
1/4 tsp natural peppermint extract
1 1/4 cup unbleached all-purpose flour
1/3 cup cocoa powder
1/4 tsp salt
1/2 tsp baking soda
1/4 tsp baking powder
1 candy cane, finely crushed
1/3 cup dark, bittersweet or semisweet chocolate chips

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Spring Home

First warm days of season are upon us, and with this, it feels good just going outside after long months of cabin fever.

Take a walk around your house, backyard, and garden, and check on everything after the winter season. This is the perfect time to make take care of small maintenance tasks and catch problems before they affect value of your home and turn into expensive fixes.

Check full list of small and easy tasks below!

Buyer

4 tips to moving with pets

I mentioned before we moved several times in a short period of time. Our two cats moved with us. It was never easy on us, but it was even harder on them – cats are creatures of habits. Dogs also do not take well to long trip and commotion of the move. Here are four tips we tested over the years, hopefully they will help you – and your pet.

Pack and clean one room in old home first, for example spare bedroom. Keep you pets, in their crates, with favorite toy, in this room. This way they will be in relative quiet. Other options, for more anxious pets, is to have them stay with a friend or even board your pet for a packing day.
Pack a set of basic pet supplies: pet food, favorite bowl, water bowl or fountain, litter box and litter for cats, leash for dogs, couple of favorite toys. Keep it handy with you in your car, make it easy to reach the stash when you arrive on site so you can unpack and set up spot for your pet in your new home.
It goes without saying, but have your pets travel with you in the car. I strongly recommend having any pet in crate, to avoid distractions while driving. Additionally, have the crate facing you and so your pet is able to listen conversation or just be aware of your presence during the trip. Some pets might prefer to have crate covered with blanket. Remember about securing the crate with seat belts.
When in new location, set your pet up in one quiet room while you unpack. Keep it there for a day or two, and get accustomed to a new place. I suggest setting up your bedroom, if your pet is allowed to sleep with you, then your presence at night will also help ease them.

Do you have any of you tested any tips or tricks to make it easier for your pets to get through move? Share them in comments below.

Seller

4 Reasons you need your CMA (not one is…

CMA or Comparative Market Analysis shows you what is the current value of your home, or how much money would a potential buyer pay to buy it in the current real estate market.

The value of your home changes with time, and is dependent on many factors. It is influenced by all the maintenance you do to inside or outside – or you do not do. Any upgrades, like kitchen remodel or new floors/carpets will influence house value. The value also depends on popularity of your neighborhood and how good are the schools in this area.

This is why it is so important to check your Comparative Market Analysis or your home value at least once a year, just like you would your Credit Score.

You might not be thinking about selling your house just now. There are several other reasons to stay current on ever changing value of your home. Here are just a few:

To refinance to take advantage of low rates or just decrease your monthly payment
To take advantage of your Home Equity Loan and do this maintenance project you have been postponing
Update your home insurance policy to make sure it covers whole value of your house
Dispute your property taxes in rare instances your home value decreased below the assessment

Would you like to receive your own, complimentary CMA? Contact us today.