Fire And Hazard Insurance
At settlement, most lenders will require you to provide a one-year paid receipt
for a fire and hazard insurance policy, often called homeowner’s insurance. These
policies are available from several leading insurance companies through Long & Foster's
Insurance Agency, Inc., or the insurance company of your choice.
Home Warranty
Eventually, you will have a problem with your home. One out of 200 new homes will
experience a structural failure that will cost an average of $30,000. A home warranty
from one of our three providers will give your home the protection it needs. Depending
on the plan you select, coverage will include mechanical breakdowns in major systems
such as plumbing, electrical, heating, and air conditioning, as well as major household
appliances such as the oven, refrigerator, washer, and dryer.
American Home Shield
HMS Home Warranty
HomeTrust Warranty
Home Inspection
While you can see for yourself many flaws in a house, the practiced eye of a professional
inspector can spot more, especially in areas not easily accessible to you. The inspector,
who should be a member of the American Society of Home Inspectors, will examine
the structural and mechanical condition of the home, and then deliver a written
report on the findings.
Specific information could reduce the price of the house if the seller will agree
the price has not already been discounted for found defects. Many states now require
that sellers provide buyers with either a residential property disclosure or disclaimer
statement.
If no serious problems are found, inspection can pay off indirectly in assurance
that you are making a sound investment.
Title Insurance
Title insurance provides protection in the event any number of past actions threaten
the title to your property. Most lenders will require title insurance to protect
their interests. Be sure to ask about an owner’s policy as well, to protect your
title. You may save money if you buy owner’s title insurance at the same time as
mortgage title insurance, rather than buying it separately later.
As a home buyer, you may be able to save money with a “re-issue rate” for title
insurance, if the property changed hands within the last several years. The title
insurance may allow a lower re-issue rate premium because the recent title search
is still valid. Consult your title attorney and insurance company for details.
Walk-Through Inspection
The time for you to inspect and note defects for correction by the seller is during
the contract negotiation and prior to signing the sales agreement. The purpose of
the walk-through inspection prior to settlement is to determine if conditions in
the contract are satisfied.
It is up to you to perform the final walk-through inspection. The seller may or
may not be present. You should be accompanied by the selling broker or the listing
broker.
During the inspection, you should
- Try all lights and switches.
- Turn all faucets on and off.
- Run showers and flush toilets.
- Turn on the furnace and central air conditioning. In the off-season, the buyer may
hire a professional to certify proper functionality.
- Test all stove burners.
- Turn on the oven at bake and broil.
- Run some ice cubes through disposal to test the blades.
- Run the dishwasher, washer, and dryer through complete cycles.
- Open and close all windows and doors.
In short, try everything, including the keys and the fireplace flue.
All deficiencies will be noted. The selling broker will coordinate with the listing
broker and seller to make repairs before settlement. If the seller does not correct
problems prior to settlement, the attorney may withhold funds from the seller.