7 Tips for a Successful Final Walkthrough

Congratulations on the impending purchase of your new home! Your final walkthrough is the last step before closing to make sure all aspects of the home are within your expectations and what has been agreed upon between you and the seller.  Knowing the purpose of a walkthrough, how to check the home, and what aspects to prioritize will make your final task one that is easy and organized.

These 7 tips will help you prepare for your final walkthrough:

1. Properly schedule the walkthrough.  Your walkthrough should take place in the 24 hours before closing and typically last about 30 minutes.  If possible, you should allow a complete hour to be thorough.
2. Understand the walkthrough process.  The walkthrough is not an inspection. A thorough inspection should have already been done by a qualified home inspector. The walkthrough is the last chance for you to view the home and check that the sellers left it in the agreed-upon condition.
3. Take your contract and inspection to the walkthrough.  Don’t rely on your memory as to what the seller agreed to do to the property or what is to be left behind.
4. Make a checklist for your property walkthrough.  Be sure to include the following:
   • Check the exterior of the home for wind or rain damage since your last visit
   • Check all light fixtures, the heating and air conditioning systems, water faucets, toilets, appliances, garage door openers, garbage disposal and exhaust fans to make sure they work properly
   • Check the property and grounds to make sure the seller has not removed any chandeliers or other fixtures, appliances, plants or outdoor accessories that specified to be left with the property.
   • Check for leaks under sinks, around toilets and outdoors around hoses and faucets
   • Open and close all windows and doors including screens and storm windows. If storm windows are in storage, locate them and make sure they’re in usable condition.
   • Check all ceilings, walls and floors, checking for water damage or stains.
   • Check storage areas for trash and unwanted items such as old paint or hazardous materials like solvents or chemicals.
5. Check that all repairs have been made as agreed upon.  If the seller agreed to repairs after the inspection, be sure to check that a satisfactory repair was made to those items.  Once you close on the home, the seller is not required to make the repairs afterwards.
6. Consider bringing a home inspector to your walkthrough.  Having an inspector with you can help you make sure that repairs have been made and identify any serious problems.
7. Know how to handle a problem.  In most walkthroughs, minor issues take place and can be easily resolved.   However, it is possible that you will find that some sellers have not kept their end of the contract.  You may also discover a new issue or repair is needing to be addressed. The best way to deal with a problem is to first think about the severity of the issue and its impact on your purchase.  If the cost is under $1,000 or is an easy fix for you as the new owner, it may not be worth addressing with the seller.  Yet if a major issue needs to be addressed with the seller, let your real estate agent and the seller’s agent can help negotiate with the seller.

Having a successful final walkthrough is easy when you are prepared.  Follow these tips and you will be well on your way to enjoying being  a new homeowner!

Commercial Market Trends

The commercial real estate in the Phoenix-Scottsdale area has been trending slowly returning to pre-recession rates. Phoenix’s population is estimated to grow about 2.6% over the coming years, with the population between ages 20-34 estimated to be about 11% of that growth. PwC and the Urban Land Institute, publishers of the highly regarded ““Emerging Trends in Real Estate” report has moved the Phoenix area to 25th from last year’s 33rd place among the best places for investors to put their money.

Office Buildings

Office buildings in the Phoenix area are becoming less available with the advantage that rents have been rising 2% to 4% in the last year. Two companies have invested large amounts in the Phoenix area in the last year. Lowe Enterprises just purchased two office buildings in the area for a total of $51 million dollars. In the Tempe area, the Marina Heights development is a $600 million office/retail development expected to be anchored by a large State Farm Insurance work force.

Price per Square Feet of Office Buildings in Phoenix:  January 2013 -$103; January 2014-$110; August 2014-$116.

Industrial Properties

The demand for industrial real estate in the Phoenix area has pushed the vacancy rated down to 12.9%. It is stated that investors are looking at the area and these investors expect to buy a total of 7 million square feet of space at the end. Sears, Hensley and Marathon Equipment have signed recent deals for large amounts of industrial space in the Phoenix area. In addition, 5 million square feet of new facilities are under construction in the valley. Industrial real estate in the Phoenix area should continue to rise since it is lower than the county-wide average by 1.7%.

Dollars per Square Feet in the Phoenix Industrial Area:  January 2013-$76; January 2014-$81; August 2014-$83.

 

Retail Real Estate

Retail real estate in the Phoenix area has risen about 2% in the last year. Vacancy rates are also down to 10%, which is up from 15% last year. Some shopping centers have been sold for improving amounts, including the recent sale of Vestar’s Canyon Trails Towne Center in Goodyear which sold for 24.5 million dollars last year. Larger stores are entering the area, including Ross and Burlington Coat Factory.

Dollars per Square Feet in the Phoenix Retail Area:  January 2013-$113; January 2014-$115; August 2014-$117.

Multifamily Properties

Residential buildings with militants have done well in the Phoenix area. Prices have increased about 10.7% over last year. Current rates are $52,318, one of the highest rates in the county. This trend is expected to increase in the next several years as younger workers move into the valley.

Cost of Multifamily Properties in the Phoenix Area per Unit:  January 2013-$40,000; January 2014- $45,000; August 2014-$52,318.

 

So, Phoenix is experiencing the best of both worlds. It seems to be a good time invest in the area, but also a good time to hold on to your properties if seeking higher property values.

Making Your Home Energy Efficient

Fidelity Title Phoenix knows that buying or selling a home is a major undertaking, especially financially. We also know that with the rising cost of energy, homeowners are always looking for ways to save money on utilities.

The best way to improve your home’s energy efficiency is to think of your home as a series of systems that work together to create a comfortable living environment. If one system is lacking in efficiency, it can affect the all of the other systems. These simple tips will save you money on energy costs as well as reduce your carbon footprint.

System: The Building Shell

Air leaks in your home’s shell (doors, windows, walls, floors and ceilings) allow outdoor air to infiltrate into your home while conditioned air escapes.  What should you do to avoid this?

• Seal around doors and windows with weather-stripping and caulk.
• Seal large gaps around baseboards, light fixtures, vents and pipes with expandable caulk.
• Install pre-cut foam insulators behind outlets and light switch plates on exterior walls.
• Shore up the attic insulation to at least 15 inches of R-30 insulation.

System: Heating and Cooling

Heating and cooling your home accounts for about half of your annual energy costs. How can you cut costs?

• Schedule preventive maintenance for the cooling system in the spring and the heating system in the fall. The annual tune-up improves efficiency, reduces emissions, and extends the lifespan of the operating life of the system thus preventing breakdowns.
• Inspect your HVAC air filter every month and replace the filter regularly.  A dirty filter restricts airflow and allows dust to build up inside the system, reducing efficiency and damaging essential components.
• Seal loose duct joints and insulate the ducts throughout the system. The typical home loses between 20-40% of air in the ducts through leaks (ACDoctor, 2014).
• Install a programmable thermostat to regulate temperature.  This simple task can save homeowners up to $180 a year on heating and cooling costs (Stuart Pro Air Services, 2014).

System: Water Heating

Heating water makes up about 18% of your annual utility bill (Bluejay, 2014).  How do you conserve hot water?

• Flush the water heater tank annually to remove sediment which acts as an insulator between the heating element and the water.
• Insulate the water heater tank and water pipes to keep and set the thermostat to 120 degrees to save energy.
• Install low-flow fixtures in your sinks and tubs to reduce hot water consumption.
• Wash your clothes in cold water and use the shortest cycle on your dishwasher.

System: Lighting

The type of lighting you use can cost you big bucks throughout the year.  How can you light your home properly while saving money?

• Replace incandescent bulbs with CFLs, which use 75% less electricity and last up to six times longer than incandescent bulbs(Star, 2014).
• Utilize three way bulbs to give you options on how much light you need.
• Install dimmer switches controlling the light level of a room.
• For outdoor lighting, use solar lights that will charge throughout the day and illuminate your landscape efficiently and for no cost to you.

Improving the energy efficiency of your home and the systems from within will payoff for years to come, both in your utilities savings and in added value should you sell your home.

The Importance of Staging

Why should agents stage a property instead of leaving it empty?  Homes staged prior to listing spend an average of 72% less time on the market than homes that were not staged.*  In addition, these staged homes sell for more money and can have fewer concessions requested of the seller.** Staging showcases the appeal of the space while making it feel warm and livable.  Just a few accents can be the difference between quickly selling a house and seeing potential buyers leave uninterested.  With these simple but effective ideas in mind, you can create an immediate impact on your potential buyers.

Keep Staging Lively
While some may assume that staging makes a house seem artificial, just the opposite can be seen.  Consider giving a personality to certain rooms. For example, a basement rec room could include pops of color with vibrant furniture to complement a pool or game table; whereas a kitchen with a breakfast nook might take on a gentler and cleaner look using cream-colored furniture and white dishware.  Include plants or other naturally-inspired accents that can make a space appear homey. Using re-purposed or recycled items can also give a green and sustainable vibe to a staged house.

Use Color Trends in Staging
Taking advantage of color trends in staging a house can bring a sense of coherence to the living space, while also making the interior design unforgettable for potential buyers. Metallic hues have been in demand, so take advantage of these for a sleek, modern look.  If the look of the house is more traditional, opt instead for pops of color throughout the living spaces.  Utilizing the charm of local décor can also add some accents of color and decorating that appeal to potential buyers.  Arizona is full of vibrant, beautiful accents to use in your listings.

Organize with Style & Purpose

While having a coherent theme can almost guarantee a successful staging, the huge impact of staging can lie in the smaller details.  Consider grouping furniture in ways that show off a room’s natural traffic patterns and efficiency of space.  In addition, keep counter-tops full without being cluttered (think groups of three items) which can make a space seem both cleanly designed and livable.  And last but not least, don’t forget to think about the lighting of a room that can enhance your freshly decorated spaces.

Staging doesn’t have to be a painfully expensive endeavor, so real estate agents should use their best judgment and feel free to err on the side of understatement if a space can speak for itself.  By putting in the effort to stage a house before it is listed, agents can create an appeal to buyers from the minute they step foot in the door.

 

*RESA 2013 Study listed in The Consumer’s Guide to Real Estate Staging http://www.RealEstateStagingAssociation.com.

**LA Daily News-Home & Garden article August 2013 http://ow.ly/A2SCi.