Point of Sale Inspections, Certificates of Occupancy and Home Inspections

Quite often I get phone calls from potential home sellers asking for advice. One common question is ‘should I get a home inspection prior to selling?‘ There is no right or wrong way to answer this. The person who buys your home will most likely get a home inspection. It’s always recommended by me, as a part of a buyer’s due diligence process. Once in a while they say no inspection but 95% DO get them. This would be done once you and the buyer have agreed upon other details and the contract between you both is fully accepted. Inspections, depending on a few things including how large is your home, can run between $300-$450 on average. It might give you peace of mind, it might allow you to get the inspection, do any needed repairs, and allow you to adjust your listing price more to your satisfaction. Just know that a buyer’s inspection could show items your own inspector did not mention. Meaning, you still may have to negotiate through inspection results to move forward on the sale. The buyers pay for their own inspections but these are all things to consider when deciding if you should get one. If you’ve lived in a home for 20 years without having done a lot of regular maintenance, painting or repairs, it might be a good idea. Or not! ☺ Nothing is etched in stone here.

There is an area where I make an exception: you may live in a community that requires a point of sale inspection or certificate of occupancy if your house has been rented out. I lived in Lakewood, owned a two family, people before me had utilized the entire house for decades. I did the same. No renters. So no point of sale/cert of occupancy required. If you do not occupy your Lakewood home and renters do, then you need an inspection. Besides Lakewood (and off the top of my head) there are other communities with inspection requirements upon sale of your home: City of Cleveland (if rented, not owned), Cleveland Heights, Berea, Shaker Heights and the City of Brooklyn. There are more, these are the ones I can rattle off. Why am I not looking all of the communities up and posting them here? Because you need to call your municipality’s building department.

Laws and practices can change every year. My suggestion is, as soon as you begin thinking about selling your home within a year, give City Hall a call and ask for the building department. They can tell you how much it costs, approximately how long it takes for them to schedule an inspection once you make the call to schedule one, how long you have to make repairs once one is completed, can the repairs be transferred to a buyer,etc. It’s important, really, that you know this as you start preparing to sell.

By the way, some places call these inspections certificate of occupancy not point of sale.

To sum up: a regular home inspection is not mandatory, you can decide to get one or not. Or we can decide together if you invite me to come for a consult. However, a point of sale inspection should be completed and available for a prospective buyer to view prior to us posting your listing on line. You can be working on the repairs, but they need to know the information as part of a disclosure process. That’s my two cents on the subject!

 

 

Jefferson West Park Recent Real Estate Stats

I’m going with the most recent information for the most part, and for a reason. For about 5 years Jefferson’s ‘selling’ season seemed to end around June 30th. But 2017 activity and sales in the Jefferson area of West Park are showing me that the ‘selling season’ has not stopped. In fact it’s still going pretty strong this 2nd week of August.

For those not familiar with it: Jefferson is an area with parks. Jefferson Park, which is on Lorain avenue between W. 132nd and W. 133rd. It’s about the size (and shape) of Lincoln Park in Tremont. A little over 3 acres. There are also tennis courts, a play ground and basketball courts.

Mohican Park is north of Lorain Avenue.  It borders Triskett between W. 140th and Berea Road. It’s larger, suitable for running, biking or walking on the outer trail which is just around 3/4 of a mile. The whole park has a bit over 7 acres of land.  Playground, ball fields and soccer games, both scheduled and extemporaneous. It’s fun to see kids walking to the park to enjoy it.  Life for a kid was meant to be that way!

So when you find yourself at either of these parks you will be in Jefferson!

Housing info for Jefferson…

There are 12 homes waiting for inspections to be done or loans to be approved, so they are ‘contingent’ and under contract.  There are 17 homes ‘pending sale’ so farther along in the process but still not filed at the court house. For both of the above stats, we don’t know sale prices until they file/transfer ownership. So 29 homes, within the last two weeks mind you, have gone under contract or changed contract status. That is how we can determine the most recent activity.

The best news? In the last three months, 56 homes have already sold. Examples: 3451 W. 136th sold for $99,500 (it was listed at $109,000). 3788 W. 139th sold for $95,000 and that was it’s list price.

The average minimum square feet for a sold home among these 56 houses was 888 sq. feet; the maximum square footage for a sold home was 2,485 sq. ft.  The average square footage (not all that surprising for the area unless you’ve added on or finished an attic or basement) was 1,312 sq. ft of living space.

The highest sale price was for a home on Warren Road. It sold  for $192,000. There was also a home sold on W. 140th for $162,500.

And yes, we still have foreclosures so the lowest sale price was $20,000.  What’s nice though: appraisers have adjusted over the years (!) so market value homes, not foreclosures, are more normally used to determine the appraised value for a loan.

The average sale price for the 56 homes sold in the last three months was $81,960.

One other interesting fact: The number of days on the market, on average, for all these homes prior to their going under contract and waiting to transfer ownership? 62 days.