Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

When inventory is tight and newly renovated homes are wooing prospective buyers, you need to take a step back and remember that the home you’re hunting for is a long-term investment. While futuristic appliances and gleaming hardwood floors may seduce you into making a quick offer, understand that there’s much more to a home than what lies on the surface.

Investors who renovate homes want to maximize their profit as quickly as possible. While many are upstanding folks, there are those out there who will cut corners in order to boost their return. Sometimes when a home is renovated, an investor will do a “lipstick flip.” Basically this means fixing up what’s cosmetic and leaving the rest as-is. Paint, flooring, appliances, fixtures… all may get a tune-up. But this doesn’t necessarily take into account foundation issues, leaks, plumbing problems, and work performed without permits.

Once buyers close on a home, they’re responsible for the home. This includes issues which may be costly to repair or remain simply unsafe for habitation. This is why it’s vitally important you take the necessary steps to protect yourself before signing off. Here are some tips to prevent the headache and heartache of a bad “lipstick flip” home:

• Do not waive the inspection. In addition to the usual areas, have inspections for exposed wiring in the attic and mold. Include a termite inspection.

• Ask for a complete list of all work done with receipts for the work.

• For all work done, make sure the seller used a licensed contractor.

• Ensure the work on the home passed inspection and is up to code. Request a copy of the certificate of occupancy.

• Ask the seller for a current disclosure statement, as required by law.

If the seller balks at these requests, it may be necessary to pass on the home. If issues come up during inspection, you may change your mind about the home, or you may negotiate for repairs or closing credits, depending on your agent’s advice.

Don’t worry, not all flipped homes are money pits. But as a trusted real estate advisors, We'd like to be certain our clients don’t get burned! Looking for a home? Connect with our experts today!

Realty Executives Midwest

1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

As boomers age, more and more people want to stay in their own homes or avoid large, institutional settings. A sweet spot between these two options is something called an RCFE, or Residential Care Facility for the Elderly.

Though they’re also known by other names, the concept is the same… elderly residents live together in a smaller, communal living situation which has been optimized for safety and state regulations regarding senior care.

Residential homes can be converted to RCFEs. Often three-bedroom-plus properties, these homes are frequently single-level ranch-style homes which adhere to codes regarding 24-hour medical care, fire safety, and accessibility. Sometimes two residents will share a bedroom, but the rooms must be large enough to accommodate individual beds, chairs, and dressers. Many are also modified to manage non-ambulatory or wheelchair-bound residents, meaning they have roll-in showers and doors wide enough to handle chairs (3-feet wider).

(Please note: These are only sample requirements, and the regulations vary by state. RCFEs must be licensed, and the licensing process is vital to the legal, safe operation of the home. There are educational and training programs available for those interested in a deep dive into the space.)

Demand for RCFEs is hot. Properties which are suitable for conversion draw a great deal of interest from investors and those looking to enter into the elderly care market. You may own or know someone who owns a home which is perfect for such a conversion.

If you think you have a floor plan which is suitable for conversion, this can be a real selling point. We are always on the lookout for properties which could become a pleasing, comfortable, safe home for seniors.

We all need to plan for the future! Get in touch:

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

If you’re buying a home, you probably know that it’s not uncommon to negotiate for credits at closing depending on a wide range of issues. But as a buyer, there are some things you should know before you begin this negotiation process. Here are some tips for buyers seeking closing credits:

1. Closing credits are commonly negotiated as a result of home inspection issues. Sellers don’t always know about problems in their home until an inspection turns up something amiss. If you’re buying a home and want to make sure you’re covered, do not waive your right to inspect the home! Additionally, consider specialized inspections for pools, septic systems, or specialized add-ons which regular inspections don’t necessarily cover.

2. Beware the seller who offers a pre-inspection report. Sometimes sellers will have an inspection before they list the home. This means they’re generally well-armed when it comes to closing credits, and they may be telling you they’re particularly firm about their pricing.

3. Don’t assume sellers will always offer you cash consideration at closing. Sellers may not offer you a discount— they might prefer to have the work done. If this is the case, you’re not going to get a reduced price. Instead, you’re going to be buying the house pending satisfactory completion of the repair. Asking for credits for work you weren’t planning to have done can be a risky gambit.

4. Know the market before you press on credits. In a highly competitive market where sellers are in the driver’s seat, don’t be surprised if a seller decides to ditch your agreement and seek another buyer. You have much more leverage in a buyer’s market, so keep this in mind.

5. Sellers often build in cushioning for credits, so don’t hesitate to ask if there’s a reasonable request to be made. Again, this goes back to the type of market you’re in, but almost every seller is prepared to hear about concessions which may need to be made in order to seal the deal.

Negotiations prior to closing are common, so don’t fear them. Simply be smart about how you proceed and you’re get through the big day just fine.

Need solid buyer representation? We're here to help. Let’s talk!

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com

Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com