Navy Fellas Realty Group

Real Estate, Residential sales and purchase

When to Ask for Repairs vs. Taking a Credit

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Buying a home is a significant investment, and ensuring the property is in good condition is crucial. There are times when asking the seller for repairs is the best course of action, but in other situations, requesting a credit may be more beneficial. Understanding when to choose each option can help you navigate the buying process more effectively.

The Impact of Loan Types on Repairs

Certain loan types, such as Federal Housing Administration (FHA) and Veterans Affairs (VA) loans, require the home to meet specific condition standards. If the house doesn’t meet these standards, the loan could be rejected. This means if the seller doesn’t address necessary repairs before closing, financing could fall through, and the home may need to be relisted. Prospective buyers might be wary if they see a home sale fall through, which could impact the seller negatively.

Many buyers don’t want to deal with repairs post-closing and prefer the seller to handle them. If it’s a repair that doesn’t require immediate attention, many buyers opt to take a credit to save money at closing.

An inspection report will not flag out-of-date styles or bad paint jobs, but if it identifies issues, and the buyer wants to make design decisions in the process, a credit can be a great solution.

Negotiating Credits for Renovations

For instance, one of Kenny’s clients recently negotiated a credit for replacing the kitchen flooring due to damage from a long-term water leak. The credit was the ideal solution because it was less of a hassle for the seller and allowed the buyer to choose their preferred flooring and design.

Credits are also advantageous if the repair timeline would delay the sale, the buyer has a DIY background or simply wants control over choosing contractors and overseeing the project. No one will put more care and attention into fixing a new home than the buyers themselves and for sellers, repairs are often just another task to complete before the sale

Negotiating Credits and Repairs Without Losing Your Dream Home

When negotiating repairs or credits, it’s essential to avoid falling out of contract over the repair issues. For example, during the purchase of an accessory dwelling unit (ADU), working closely with the seller’s Realtor helped ensure the deal didn’t fall through over the need for a new roof. Offering the full list price, agreeing to a fast close, and opting against a home sale contingency were also strategic moves.

To negotiate effectively without losing your dream home, prioritize repair requests and focus on major issues. Be willing to take on minor repairs yourself and remain flexible and open to compromises, such as splitting costs or combining credits. Also, consider the current market conditions and the seller’s motivation.

Understanding when to request repairs and when to take credit can save you time, money, and hassle, making the home-buying process smoother and more rewarding. 

What’s Ahead For Mortgage Rates This Week – July 15th, 2024

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With lofty expectations, the CPI delivered a lower-than-expected inflation increase, leading to a positive uptake across many lending partners and markets. However, the PPI was on the opposite end of that, with a higher-than-expected inflation rate increase, muting the positive response from the CPI data release.

The outlook for a rate cut this year has changed, making the potential for it highly likely. Even Jerome Powell, who usually has a more hawkish response regarding rate cuts, is now leaving some room for this possibility. With the outlooks in favor of a rate cut, we’re seeing the impact across many markets as the potential change for rates is reduced long term.

Consumer Price Index

The cost of consumer goods and services fell in June for the first time since the pandemic in 2020, affirming a recent slowdown in inflation that could impel the Federal Reserve to cut high U.S. interest rates in the next few months. The consumer price index fell 0.1% last month after no change in May, the government said Thursday. That’s the first drop since May 2020 at the height of the pandemic when the economy was mostly shut down.

Producer Price Index

Wholesale costs rose slightly faster than expected in June, but not enough to counter a recent string of reports showing inflation has slowed again. The Producer Price Index advanced 0.2% last month, the government said Friday. That was a touch faster than Wall Street’s 0.1% forecast.

Consumer Credit

Total consumer credit rose $11.3 billion in May, up from a $6.5 billion gain in the prior month, the Federal Reserve said Monday. Economists had been expecting a $8 billion gain, according to a Wall Street Journal survey. The rise in May translates into a 2.7% annual rate, stronger than the 1.5% rise in the prior month.

Primary Mortgage Market Survey Index

  • 15-Yr FRM rates are seeing a decrease by -0.08% with the current rate at 6.17%
  • 30-Yr FRM rates are seeing a decrease by -0.06% with the current rate at 6.89%

MND Rate Index

  • 30-Yr FHA rates are seeing a decrease by -0.25% for this week. Current rates at 6.25%
  • 30-Yr VA rates are seeing a decrease by -0.26% for this week. Current rates at 6.26%

Jobless Claims

Initial Claims were reported to be 222,000 compared to the expected claims of 236,000. The prior week landed at 239,000.

What’s Ahead

Proceeding reports after the inflation data releases are, as expected, having a very light release schedule. The only notable release are the retail sales reports which indicate how much consumers have leveraged their purchasing power in the last quarter.

What’s Ahead For Mortgage Rates This Week – July 15th, 2024

by

With lofty expectations, the CPI delivered a lower-than-expected inflation increase, leading to a positive uptake across many lending partners and markets. However, the PPI was on the opposite end of that, with a higher-than-expected inflation rate increase, muting the positive response from the CPI data release.

The outlook for a rate cut this year has changed, making the potential for it highly likely. Even Jerome Powell, who usually has a more hawkish response regarding rate cuts, is now leaving some room for this possibility. With the outlooks in favor of a rate cut, we’re seeing the impact across many markets as the potential change for rates is reduced long term.

Consumer Price Index

The cost of consumer goods and services fell in June for the first time since the pandemic in 2020, affirming a recent slowdown in inflation that could impel the Federal Reserve to cut high U.S. interest rates in the next few months. The consumer price index fell 0.1% last month after no change in May, the government said Thursday. That’s the first drop since May 2020 at the height of the pandemic when the economy was mostly shut down.

Producer Price Index

Wholesale costs rose slightly faster than expected in June, but not enough to counter a recent string of reports showing inflation has slowed again. The Producer Price Index advanced 0.2% last month, the government said Friday. That was a touch faster than Wall Street’s 0.1% forecast.

Consumer Credit

Total consumer credit rose $11.3 billion in May, up from a $6.5 billion gain in the prior month, the Federal Reserve said Monday. Economists had been expecting a $8 billion gain, according to a Wall Street Journal survey. The rise in May translates into a 2.7% annual rate, stronger than the 1.5% rise in the prior month.

Primary Mortgage Market Survey Index

  • 15-Yr FRM rates are seeing a decrease by -0.08% with the current rate at 6.17%
  • 30-Yr FRM rates are seeing a decrease by -0.06% with the current rate at 6.89%

MND Rate Index

  • 30-Yr FHA rates are seeing a decrease by -0.25% for this week. Current rates at 6.25%
  • 30-Yr VA rates are seeing a decrease by -0.26% for this week. Current rates at 6.26%

Jobless Claims

Initial Claims were reported to be 222,000 compared to the expected claims of 236,000. The prior week landed at 239,000.

What’s Ahead

Proceeding reports after the inflation data releases are, as expected, having a very light release schedule. The only notable release are the retail sales reports which indicate how much consumers have leveraged their purchasing power in the last quarter.

Understanding the Different Types of Deeds in Real Estate

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Buying or selling real estate involves a lot of paperwork, and one of the most critical documents in these transactions is the deed. A deed is a legal document that transfers ownership of property from one party to another. Understanding the different types of deeds is essential to ensure you make informed decisions in your real estate transactions.

1. General Warranty Deed

A General Warranty Deed offers the highest level of protection for the buyer. This type of deed guarantees that the seller holds a clear title to the property and has the right to sell it. It also assures that the property is free from any liens or encumbrances, except those noted in the deed. Furthermore, the seller promises to defend the title against any future claims.

Pros:

  • Provides maximum buyer protection
  • Seller guarantees clear title and right to sell

Cons:

  • Seller assumes significant liability

2. Special Warranty Deed

A Special Warranty Deed also offers some protection, but not as extensive as a General Warranty Deed. It guarantees that the seller has not encumbered the property during their period of ownership. However, it does not protect the buyer against any claims or issues that arose before the seller owned the property.

Pros:

  • Provides some protection to the buyer
  • Limits seller’s liability to their period of ownership

Cons:

  • Offers less protection than a General Warranty Deed
  • Buyer assumes some risk for previous claims

3. Quitclaim Deed

A Quitclaim Deed provides the least protection to the buyer. It transfers whatever interest the seller has in the property without any guarantees about the quality of the title. This type of deed is often used between family members, in divorce settlements, or to clear up title issues.

Pros:

  • Simple and quick to execute
  • Useful for transfers within families or to clear title issues

Cons:

  • Provides no guarantees or protections for the buyer
  • Buyer assumes all risks

4. Bargain and Sale Deed

A Bargain and Sale Deed implies that the seller holds title to the property, but it does not provide any warranties against liens or encumbrances. This type of deed is often used in foreclosure sales and tax sales, where the buyer is purchasing the property as-is.

Pros:

  • Implies ownership by the seller
  • Common in foreclosure and tax sales

Cons:

  • Offers no warranties against liens or encumbrances
  • Buyer assumes significant risk

5. Grant Deed

A Grant Deed provides some warranties to the buyer, similar to a Special Warranty Deed. The seller guarantees that they have not transferred the property to someone else and that the property is free from any encumbrances made during their ownership, except those disclosed in the deed.

Pros:

  • Offers some level of protection to the buyer
  • Seller guarantees they have the right to transfer the property

Cons:

  • Less comprehensive than a General Warranty Deed
  • Buyer must investigate any previous claims

Understanding the different types of deeds is crucial in any real estate transaction. While some deeds offer extensive protections, others transfer property with minimal guarantees. Always ensure you understand the type of deed you are dealing with and consult with a real estate professional or attorney if you have any doubts. Give us a call for questions about real estate transactions.

Roofing Options from Metal and Beyond

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When it comes to constructing your house or undertaking home improvement projects, the roof is a crucial component. It’s not just about aesthetics; the roof provides essential protection against the elements. Investing both money and time into selecting the right roofing material is vital, and a little extra research can go a long way.

The roofing market today offers a plethora of options, each with its own set of advantages, costs, and installation requirements. We will take a look at the benefits of metal roofing and other popular roofing options to help you make an informed decision.

Metal Roofing: Strength and Durability

Metal roofing has seen a significant rise in popularity over the past few years. Here’s why:

  1. Durability: Metal roofs are incredibly durable, withstanding extreme weather conditions such as heavy rain, hail, snow, and strong winds. They also offer excellent fire resistance, providing an added layer of safety.
  2. Longevity: While traditional roofs may need replacing every 15-20 years, metal roofs can last over 60 years, making them a long-term investment.
  3. Aesthetic Variety: Metal roofs come in a wide range of colors, allowing homeowners to achieve the desired look and feel for their homes. This variety can complement bold design concepts that traditional roofing materials might not support.

Other Roofing Options

While metal roofing offers impressive benefits, it’s essential to consider other options to find the best fit for your needs and budget.

Asphalt Shingles

Asphalt shingles are the most common roofing material in the U.S. They are popular for their affordability and ease of installation.

  • Cost-Effective: Asphalt shingles are one of the most affordable roofing materials available.
  • Versatile Designs: They come in various styles and colors, allowing homeowners to customize their roofs.
  • Ease of Repair: Damaged shingles can be easily replaced without overhauling the entire roof.

Slate Roofing

Slate roofs are known for their natural beauty and longevity.

  • Aesthetic Appeal: Slate offers a unique and elegant look that can enhance your home’s curb appeal.
  • Durability: Like metal roofs, slate roofs are highly durable and can last over a century with proper maintenance.
  • Fire and Water Resistance: Slate is naturally fire-resistant and does not absorb water, reducing the risk of mold and mildew.

Tile Roofing

Tile roofs, typically made from clay or concrete, are a popular choice in warmer climates.

  • Energy Efficiency: Tile roofs provide excellent insulation, helping to keep homes cool in hot weather.
  • Durability: They can withstand harsh weather conditions and are resistant to fire, rot, and insects.
  • Variety: Tiles come in various shapes, sizes, and colors, allowing for diverse architectural styles.

Wood Shingles and Shakes

Wood shingles and shakes offer a natural, rustic appearance.

  • Aesthetic Charm: Wood roofs blend well with natural surroundings and offer a unique, timeless look.
  • Insulation: Wood provides natural insulation, improving energy efficiency.
  • Sustainability: They are an eco-friendly option if sourced from sustainable forests.

Making Your Decision

Once you’ve explored the various roofing options and considered factors like durability, cost, aesthetic appeal, and environmental impact, it’s time to choose a contractor. Ensure they have experience with the type of roofing material you’ve selected and check their warranties and guarantees.

Researching your options thoroughly and seeking expert advice can help you make a well-informed decision that suits your budget and design preferences. Investing in the right roof can enhance your home’s value, safety, and curb appeal for decades to come.

The Hidden Benefits of Garden Grading

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What is Grading?

Grading involves creating a slope in your garden to ensure proper drainage. This process not only helps prevent water accumulation around your home but also contributes to the overall aesthetic and functionality of your outdoor space.

Why Grading is Essential

1. Prevents Water Damage

Proper grading directs water away from your home, reducing the risk of water damage to your foundation and basement. A well-graded garden ensures that water flows away from your property, keeping your basement dry and your foundation stable.

2. Enhances Aesthetic Appeal

A sloped garden can add visual interest and dimension to your landscape. It creates a natural flow that can be accentuated with terracing, pathways, and varied plantings, making your garden more visually appealing.

3. Improves Lawn and Garden Health

Good drainage facilitated by proper grading helps maintain the health of your plants. Excess water can lead to root rot and other issues, but a well-graded garden ensures that water is efficiently absorbed and distributed.

How to Grade Your Garden

1. Planning and Measuring

Begin by planning the desired contours of your garden. Use a piece of twine stretched between two stakes to measure the slope accurately. This helps in achieving the correct gradient.

2. Rough Grading

Start by stripping the topsoil and setting it aside. This top layer can be reused later. Grade the subsoil to create the desired slope, ensuring you leave enough space to reapply the topsoil. Maintain a slight slope away from your house for effective drainage.

3. Finishing Touches

After grading the subsoil, spread the topsoil evenly across the area. If you’re planning to install a terrace, tamp down the soil and add a layer of gravel or crushed rock to form a stable base. This will prevent water pooling and ensure a long-lasting terrace.

Benefits of Professional Help

While grading can be a DIY project, consulting with a landscaping professional can save time and ensure accuracy. Professionals have the tools and expertise to measure slopes precisely and create effective drainage solutions.

Grading is a fundamental step in creating a beautiful and functional garden. It enhances your home’s curb appeal, prevents water damage, and promotes the health of your lawn and plants. Whether you’re planning a lush garden, a serene lawn, or a stylish terrace, start with proper grading to enjoy a landscape that’s both attractive and easy to maintain.