Buying or Selling a Home With Pest Issues Buying a Home With Pest Issues Purchasing a home with pest issues can be a major concern, as pests can cause damage to the structure of the home and create health problems for the occupants. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. Pest infestations can have serious consequences for the integrity of a home and the health of its occupants. Termites, for example, can cause significant damage to the structural wood of a home if left unchecked. Other pests, such as mice and rats, can damage wiring and insulation, posing a fire hazard. They can also carry diseases, which can be transmitted to humans through bites or contact with contaminated surfaces. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. A pest inspector will look for signs of infestations, such as droppings, nests, and damage to wood and other building materials. They will also look for potential entry points and conditions that may attract pests, such as excess moisture or standing water. If the inspection reveals the presence of pests, you should consider negotiating with the seller to have the pests treated or for a credit towards the cost of treatment. You may also want to consult with a real estate lawyer to determine your rights and options as a buyer. In addition, you should consider the long-term cost of pest control and make sure it is factored into your budget for maintaining the home. Pest control can be expensive, and it is important to have a plan in place to address any future pest issues. Selling a Home With Pest Issues If you are selling a home that has pest issues, it is important to be proactive in addressing the problem and transparent with potential buyers. Pest infestations can be a major concern for buyers, as pests can cause damage to the structure of the home and create health problems for the occupants. The first step in selling a home with pest issues is to have the pests professionally treated. A pest control company can figure out how bad the problem is and suggest a plan for treatment. Make sure to do what they tell you to do and give the treatment enough time to work. It is also a good idea to have the home re-inspected  to ensure that the pests have been effectively eliminated. Next, it is important to disclose the pest issue to potential buyers. Most states require sellers to tell buyers about any major problems, like pest infestations, that they are aware of. This can be done through a property disclosure statement, which should be provided to potential buyers as part of the home sale process. It’s important to be honest and clear in your disclosure, because not telling the truth about known major flaws can cause legal problems in the future. It is also a good idea to provide documentation of the pest treatment, such as receipts or a certificate of treatment. This will show that you have taken steps to deal with the pest problem, which can help buyers feel less worried. Lastly, you might want to think about giving the buyer a credit toward the cost of future pest control. This can help ease their concerns and make the home more attractive to potential buyers. If you can’t offer credit, you might have to lower the price of the home to make up for the cost of pest control. It is important to be flexible and open to negotiation in order to make the sale. Final Thoughts In the end, whether or not you buy a home with pest problems will depend on your personal situation and how willing you are to take risks. If you are okay with how much it will cost and how much work it will take to get rid of the pests and are sure that the problem can be solved, you might want to think about making the purchase. However, if the pest issue is significant or the cost of treatment is prohibitive, it may be best to look for a home without pest issues.
Can I Sell my House During Foreclosure Introduction For someone who is unable to keep up with mortgage payments or other liens on the home, the foreclosure process is frequently drawn out and difficult. For those who are currently going through this process, there may be ways to continue without losing everything. Because of this, the people who live in the house can stay there until the dispute is completely settled. The homeowner should stay in their home, talk to a real estate lawyer, and do research to avoid a situation in which debts may still be owed for different reasons. This might result in a better outcome. The house can still be sold for a profit while the foreclosure process is ongoing. The current owner may sell the property for more than what is owed in mortgage payments if the property has not yet been sold through an auction. This would then generate enough income to pay off the mortgage debt and leave money on the table to buy a new home or rent or lease an existing one. This has to be completed, though, before the property is sold at auction to fund the foreclosure process. This calls for prompt action and proper documentation Aspects to Consider with Foreclosure A bank agent who starts the foreclosure process may be contacted by someone who is unable to make the required mortgage or loan payments to keep the account open. The homeowner may have other options, though, as these processes can take months or even years, depending on a number of factors. In some circumstances, the financial lending company may look for an alternative to foreclosure. It’s possible that a payment extension will be given. It might be possible to refinance or make a new payment plan by adding to the original agreement. Before leaving the property to foreclosure, it is best to get in touch and talk with the company to discuss any potential alternate routes. Others look at the contract for the lending facility to see what might be possible based on the fine print. To make sure that the payments are made at a lower interest rate or payment amount, another company may be contacted, or there may be a grace period to get the needed funds. Before taking any other action, it is best to seek the advice of a real estate attorney if this is not possible. He or she might explain that the best course of action might be to sell the property. However, the homeowner might only have a limited amount of time to do so. This means that before continuing with a sale before an auction, he or she should make sure that all of that information is known. Hiring a Real Estate Lawyer or Agent While the home is going through the foreclosure process, a seasoned and knowledgeable real estate agent might be able to get in touch with the lending institution and try to negotiate so that the property has time to sell. This may be a good way for the agent in charge of the case to make sure the homeowner gets their money, even if the bank or another institution won’t work with them. Before the sale can happen, a realtor might need to conduct a market analysis on the property to determine its true value. Then, to bargain with the bank, third-party authorization forms are typically required. In general, it is preferable to sell the house for a profit as opposed to a short sale or auction, where the owner receives nothing after the house is bought by the buyer. Due to the foreclosure process costing the company money and not always recovering all of the money owed, lending institutions believe working with the sale is a better alternative than going through with the foreclosure. It might take 90 to 120 days to complete a short sale in which the owner receives no money. During this time, the homeowner may still be making mortgage payments. Depending on the state in which the house is located, the foreclosure process can take weeks or months to complete. The completion of all paperwork can occasionally take up to or even longer than a year. Depending on the state, the owner usually has up to 90 days to fix a late payment so that the problem can be fixed and business can go on as usual. A realtor or real estate agent should be hired to help sell the house if this is not possible. A real estate lawyer should be hired to handle these things from start to finish to make sure that everything is valid, legal, and done the right way.
Closing Costs – What to Expect When you sell your house, there are many hidden closing costs that can eat into your profits. This article highlights what those common closing costs are. From agent commissions to transfer taxes, it’s important to be aware of all the potential expenses. One of the biggest costs you can expect is the real estate commission. This is a fee paid to the agent who represents the buyer. The commission is typically a percentage of the sale price, so it can add up to a significant amount of money. Fortunately, many closing costs are tax-deductible, and they can be offset against the proceeds of the sale. However, it’s important to be aware of all the potential costs involved so you can budget accordingly. Below are some of the most common closing costs and how you can budget accordingly: Agent commissions: Realtor commissions are the fees real estate agents charge for their services. The fee is typically a percentage of the total sale price of the home, and it is paid at closing. While realtor commissions can vary depending on the agent and the market, they are typically around 5-6% of the sale price. For example, on a $200,000 home, the realtor commission would be $10,000-$12,000. Realtor commissions are negotiable, and some sellers may negotiate a lower rate. However, it is important to remember that the real estate agent is providing a valuable service and is entitled to fair compensation. It is important to understand realtor commissions so you can factor it into your budget. Appraisal fee:  A home appraisal is an important part of the closing process on your home purchase. The appraiser will visit the property and assess the value of the home, taking into account factors such as the location, condition of the property, and recent comparable sales in the area. This appraisal will be used to determine the amount of closing costs that the buyer will need to pay. In some cases, the appraised value of the home may be lower than the purchase price, in which case the buyer may need to negotiate with the seller to bring the price down to match the appraisal. In other cases, the appraised value may be higher than the asking price, giving the buyer some negotiating power when it comes to closing costs. Either way, it is important to have a clear understanding of your home’s value before heading into closing. Legal fees: You may need to hire a lawyer to handle the legal aspects of your sale, or if you are selling directly to a buyer.. Their fees will vary depending on the complexity of the transaction and the location of the property. In some cases, the seller is responsible for paying all the legal fees associated with the sale, this includes any fees associated with the transfer of ownership of the property. Title insurance: This is a type of insurance that protects the seller against any claims made on the title to your property. It is typically required by the lender if you have a mortgage. The exact amount you will pay as a seller will depend on the specifics of your title insurance policy. However, knowing the typical closing costs can help make sure you’re not caught off guard. Mortgage discharge fee: If you have a mortgage on the property, you will need to pay a fee to have it discharged. This fee is typically around $200-$300. These fees are a common closing cost associated with refinancing your home. Discharge fees are paid to the lender to cancel an existing mortgage and create a new one. The fee is typically a percentage of the total loan amount but can vary depending on the lender. Be sure to ask about the fee and get an estimate from your lender before making any decisions about refinancing. Property taxes: One often forgotten potential closing cost is property taxes. Depending on the location of the property and the value of the home, property taxes can be quite expensive. In some cases, they can even exceed the mortgage payments! As a result, it’s important to be aware of the property tax situation before you purchase a property because they must be paid in full before the sale can be completed. Credit report: One cost that is often overlooked is the cost of ordering a credit report. A credit report is necessary because lenders use credit report scores to determine if buyers qualify for a loan and what interest rate they receive. While the cost of ordering a credit report may seem insignificant, it can add up – especially if you’re closing on multiple properties. For example, if you’re closing on a home and an investment property, you’ll need to order two credit reports. The cost of ordering two credit reports can range from $30-$50, depending on the provider. Pest inspection: A pest inspection can help identify any potential problem areas like termites and dry rot from pests, which could lead to costly repairs down the road. This will help uncover any hidden issues and help you with negotiating repairs or treatment prior to closing. Recording fees: To finalize the sale, you will need to pay recording fees. This amount is charged by your local government for registering the deed to your new home. Utility bills: Any outstanding utility bills will need to be paid before the property changes hands. These are the fees associated with finalizing the purchase, and they can add up quickly. utility bills are one of the most common closing costs. If you’re buying a home that is already occupied, you’ll need to pay for the utilities that have been used, through the date of closing. This can include things like electricity, gas, water, and trash service. In some cases, you may also be responsible for paying the seller’s utility bills if they haven’t been paid up to date to ensure you can have services turned on in your name. As you can see, there are a number of different closing costs that can add up when selling your house. It’s important to be aware of all of them so that you can budget accordingly and avoid any nasty surprises at the end of the process.

The Truth? Your House is Now a Bad Investment


The idea that owning a home can be an investment stems from the fact that, historically, real estate values rise over time — and this is still true today.

According to Zillow, the average home value in the United States has increased by 20.6% in the last year.

That means that if you bought a home for $276,000 a year ago, it is now worth $331,650.

However, the prospect of an increase in value is insufficient to make a house a true investment. Here is why.

A house serves a more important primary function.

The primary purpose of a house is to provide you with a place to live, which is probably the single most important reason why it is not an investment. So, unlike a company stock or a mutual fund share, it’s not something you can live without.

As a result, you’ll have little control over its sale from an investment standpoint, as you’ll likely sell it when it no longer fits your lifestyle, rather than when it’s more convenient in terms of a return on investment.

This latter point was demonstrated during the 2008 financial crisis, when a lack of control over the timing of buying and selling properties had a significant negative impact on houses as investments.

Many people bought houses at exorbitant prices at the time because they needed a place to live for their families. Then, when the market crashed, some were forced to sell their homes, resulting in a negative return on investment because they bought high and sold low.

Although this occurred over a decade ago, it is not uncommon in the housing market, and it is one of the factors that largely disqualifies a house as an investment.

A house can only be considered an investment if you intend to sell it.

True, house values generally rise, but the only way to profit from that rise is to sell them. However, selling your home requires you to find another place to live.

As a result, you’ll have to use some, if not all, of the equity from your sale to fund that purchase.

If this is the case, your equity is “trapped,” which means you won’t make a profit unless you sell or move to a rental situation.

Thinking of your home as an investment can result in equity loss.

There is another way to get money out of your house, but it is far from risk-free.

You can borrow money from your home based on how much equity you have. This can be accomplished through a home equity line of credit (HELOC) or a cash-out refinance of your first mortgage.

However, when you do either of these things, you are borrowing money against the house. This may give you more money for things other than real estate, but it also gives you a liability. This liability not only reduces future cash flow through monthly payments, but it also puts your home at risk.

During the financial crisis, many people discovered this the hard way. As the value of their homes stayed the same or went down, homeowners realized that they had no equity in their homes. As a result, they couldn’t refinance to lower their monthly payments or sell to move to a less expensive place to live.

Although the widespread use of HELOCs and cash-out refinances made many people feel richer in the short term, it jeopardized their long-term financial security. Many homeowners, who thought of their homes as long-term investments, kept refinancing them, which led to them being “underwater” on their mortgages (owing more than the house was worth).

Thinking of your home as an investment becomes a dangerous assumption at this point.

Owning a home is not an investment because it costs too much to maintain.

When you buy an investment, you usually don’t have to put any more money into it for it to make money for you. However, the same cannot be said for houses.

Not only must you make monthly mortgage payments, but you must also pay real estate taxes, homeowners insurance, and, in some cases, private mortgage insurance.

Aside from that, houses require some TLC over time. Roof, siding, windows and doors, carpets and flooring, and driveway replacement are all possibilities. You can also do major remodeling, such as replacing kitchens and bathrooms.

Each of these expenses, known as the “carrying costs” of homeownership, can cost thousands of dollars.

True investments do not necessitate such an ongoing cash outlay. You can justify those costs by pointing out that the house is providing you with shelter. But, to return to the original premise, if your house serves as your shelter, it isn’t really an investment.

Carrying costs can work against you.

Assume you buy a house for $200,000 and then sell it for $300,000 ten years later. Doesn’t that sound like a good investment? That is, until you consider how much money you have invested in it over the years.

If you paid $1,000 per month for principal, interest, taxes, and insurance (PITI), plus $300 per month for utilities, you would have spent $15,600 per year, or $156,000 over the course of a decade.

You will spend an additional $30,000 if you spend an additional $3,000 per year on routine repairs and maintenance. And if you did some of the more major repairs, such as replacing the roof and flooring, as well as remodeling the kitchen and bathrooms, you could easily spend another $50,000 in that decade.

That’s a total of $236,000 over ten years for a $100,000 profit on the sale.

While it’s nice to walk away from a house worth $100,000 more than you paid for it, the math doesn’t support the notion of the house as a winning investment. We haven’t even factored in transaction costs (such as the 6% realtor commission), inflation, or the fact that the house’s value may not rise significantly over the next ten years.

Your house will not generate income.

The harsh reality is that as a homeowner, your home will not provide any form of cash flow. Unless, of course, you own an investment property and rent it out.

Whether you own a multi-family home and rent out a unit or two, rent out the entire house, or simply rent out a room, this is the only way to make a profit. Renting out a portion or all of your home can help you pay your mortgage, insurance, and other homeownership costs, so it’s worthwhile for many people. In the best-case scenario, this will generate cash flow for the owner.

Although buying and managing real estate investments can be lucrative, it requires a significant amount of work and money, as well as a significant amount of risk. If you’d rather make money from real estate than from stocks and bonds, you might want to look into real estate crowdfunding.

Crowdfunding platforms let you put a small amount of money into big real estate deals and split the profits. Keep in mind that, like all investments, real estate crowdfunding carries the risk of losing some or all of your money.

If you’re looking for a crowdfunding platform, Fundrise is a popular choice. You can invest in a variety of real estate opportunities using a mobile app for as little as $10 and a simple sign-up process.

Roofstock is the place to go if you want a more streamlined buying process when it comes to rental properties. They have a huge selection of properties, and most of them already have tenants, so you can start making money right away.

The magical ingredient is appreciation, but it is not guaranteed.

Finally, let’s go over why so many people consider their home to be an investment. The entire concept is based on the property’s future value. People frequently consider their homes to be investments when the value of their homes rises.

During the 2008 financial crisis, however, property values not only did not increase, but in many cases fell. Some people fell spectacularly. For those in that situation, their home became a major liability rather than an investment.

The possibility of a flat or declining housing market cannot be ignored any longer. If that happens, you’ll be forced to stay in your home for much longer than you expected, and you’ll most likely be unable to sell or borrow against the equity, which  doesn’t sound like much of an investment.


The main takeaway is this: Don’t buy a house thinking of it as an investment that will yield a large profit someday. Purchase it for what it is: a home. Everything else is just a bonus.

Greg Bilbro

Greg Bilbro

Greg Bilbro is the CEO and co-founder of Fair Property Buyers. After 20 years as a residential Realtor, Greg founded Fair Property Buyers, a nationwide group of real estate professionals committed to helping homeowners sell their problem properties quickly and easily. Fair Property Buyers helps people across the U.S. sell their homes for a fair cash price, without the hassles. Prior to starting Fair Property Buyers, Greg was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities, where he was named “Rookie of the Year,” and named the youngest Partner in the U.S. Greg is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity".

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