The Empire State’s real estate market is a bit of a mixed bag. On the one hand, parts of New York City and the Hamptons are among the priciest housing markets in the entire country. But the rest of the state, which is quite large, is full of cities like Buffalo, Rochester and Syracuse, all of which have median home prices of just $200,000 or less (according to July Redfin data).
Whether you’re buying in Long Island or selling in Lake Placid, there’s one part of the real estate transaction that you can’t avoid: closing costs. Here’s what to expect when it comes to closing costs in New York.
How much are closing costs in New York?
Closing costs vary by state, and New York is on the high side with an average rate of 3.1 percent of a home’s sale price, according to CoreLogic’s ClosingCorp. By comparison, Connecticut’s rate is 2.1 percent and New Jersey’s is 1.7 percent.
Data from the New York State Association of Realtors shows that July 2023’s median sale price for the state was an even $400,000. Applying the rate of 3.1 percent, that means closing costs of $12,400.
That number will vary greatly depending on home prices in your local market, though, and prices tend to get higher the closer you get to New York City. According to Redfin, the July median in Westchester County, just north of the city, was $770,000, which would result in closing costs of $23,870. But in Potsdam, not far from the Canadian border, the median is just $175,000, meaning closing costs of $5,425.
Who pays closing costs in New York, buyers or sellers?
Whether you’re buying or selling in the New York housing market, You will be responsible for some amount of closing costs.
Closing costs for buyers
As a homebuyer, most of your closing costs will relate to your mortgage loan. Here are some of the most common closing costs for buyers:
Loan-related fees: Many lenders charge borrowers loan application and origination fees, as well as a fee to check your credit history. If you are paying points on your mortgage, which typically bumps down your interest rate by 0.25 percent for every 1 percent of your loan amount, that fee will be part of your closing costs as well.
Appraisal and inspection fees: Your lender will likely require a professional home appraisal to confirm the home’s value (and make sure it’s worth at least the amount you’re borrowing). It’s smart, but not required, to get a professional home inspection as well. This will alert you to any problems with the home and property before they become your problem. If a major problem is discovered, you may be able to use it as a negotiation point. Expect each to run a few hundred dollars.
Title-related fees: Similar to a background check, a title search is conducted to confirm ownership and make sure that there are no liens or claims on the property. Title insurance protects you (as the new owner) and the lender if any issues arise after the deed is transferred. In some states, the seller pays for title insurance, but in New York, it’s typically the buyer. The cost will depend on your loan amount.
Taxes: At closing, you’ll likely need to prepay a portion of the year’s property taxes as determined by your local jurisdiction. These funds will be held in escrow and distributed on your behalf. Sellers pay for the base transfer tax in New York, but if you’re buying a home for over $1,000,000, you’ll be on the hook for an additional fee in the form of the state’s mansion tax, which starts at 1 percent of the sale price and gets higher the more expensive a home gets.
Attorney fees: The state of New York requires both homebuyers and sellers to be represented by an attorney at closing, so add legal fees to the list.
Closing costs for sellers
Sellers aren’t off the hook just because they’re not taking out a mortgage. Here are some of the most common closing costs for sellers:
Agent commissions: Realtor fees will be your largest expense when selling your home. Commissions typically run between 5 and 6 percent of a home’s sale price, which means the amount can be steep. On a median-priced $400,000 home, 5 percent comes to $20,000.
Transfer taxes: As the seller, you’ll need to pay New York’s real estate transfer tax, which is $2 for every $500 in home value. On a median priced $400,000 home, that’s $1,600. In New York City, an additional city tax applies.
Attorney fees: The state of New York requires both homebuyers and sellers to be represented by an attorney at closing.
Seller concessions: If you made any concessions to the buyer, such as offering to pay for a repair, they’ll be settled at closing time and taken out of the sale price.
Wire transfer fee: If there’s a balance left on your mortgage, it will be taken out of your sale proceeds and wired to your lender. There may be a fee for this.
Lowering your closing costs in New York
You might be surprised to learn that many closing costs are negotiable (except for government-assessed fees like property and transfer taxes, of course).
For home sellers, your most expensive cost is also one of the most commonly negotiated: the Realtor commission. If your agent is willing to lower their commission by even a little, it could save you a lot. For example, a 5.5 percent commission on a median-priced $400,000 home, rather than the full 6 percent, will save you $2,000.
Buyers can explore down payment assistance programs, which help cover closing expenses for qualified buyers via low- or no-interest loans, grants and more. There are options specifically for first-time homebuyers in New York as well. And remember that different lenders may offer different rates, terms and fee structures, so be sure to shop around for the best deal. Don’t be afraid to ask the seller for concessions, either. They might not agree to pay for that plumbing repair (for example), but it doesn’t hurt to ask.
Find a local real estate agent
New York’s real estate market is unique and complex, and the best way to navigate it is with the help of an experienced local real estate agent. If you don’t have one, a great place to start is by asking for referrals from friends and family. Do some online research, too. Interview a few different candidates to find someone who’s a good fit — and if you can find someone who knows your specific area very well, or even your specific neighborhood, all the better.
FAQs
According to data from ClosingCorp, closing costs in New York average 3.1 percent of a home’s sale price (not including agent commissions). The median price in the state was $400,000 as of July, per the New York State Association of Realtors, so the closing costs on a median-priced home would come to $12,400.
Real estate agent commissions, typically paid by the seller, are the most expensive part of closing costs, typically totaling between 5 and 6 percent of a home’s sale price. For a median-priced $400,000 New York home, 5 percent comes to $20,000.
Buyers facing high mortgage rates are pulling out of their home-purchase agreements at the highest rate in nearly a year.
Nearly 60,000 home-purchase agreements were canceled nationwide in August, equal to 15.7% of homes that went under contract that month, according to a new report from Redfin.
That rate is up from 14.3% in August 2022 and marks the highest percentage since October 2022, when mortgage rates surpassed 7% for the first time in two decades.
The average interest rate on a 30-year-fixed mortgage was 7.07% in August. Rates last month surged to 7.23%—the highest since 2001 – sending the typical homebuyer’s monthly payment up significantly from last year.
“I’ve seen more homebuyers cancel deals in the last six months than I’ve seen at any point during my 24 years of working in real estate. They’re getting cold feet,” said Jaime Moore, a Redfin Premier real estate agent in Reno, Nevada.
“Buyers get sticker shock when they see their high rate on paper alongside extra expenses for maintenance, repairs and closing costs. Many of them would rather back out, even if it means losing their earnest money. A lot of sellers are also willing to let buyers slip away because they don’t want to concede to repair requests,” Morre said.
Home prices not expected to fall
Home prices are high due to competition among buyers for limited inventory in the market.
The median U.S. home sale price rose 3% year over year to $420,846 in August, the largest annual increase since October 2022.
This price was 2.8% below the May 2022 record of $432,780, and is expected to remain elevated for the foreseeable future.
“The Federal Reserve still has more work to do in its battle against inflation, which means mortgage rates are unlikely to come down anytime soon. As long as rates remain high, homeowners will be reluctant to sell,” Chen Zhao, Redfin economics research lead, said, noting that a lack of homes for sale will keep prices high because it means buyers are competing for limited home supply.
Buyer demand Is below pre-pandemic levels, but no longer in freefall
Pending sales declined 0.6% on a seasonally-adjusted basis to 381,192 in August from the previous month. Compared from a year earlier, pending sales dropped 18.1%.
This figure has been hovering below 400,000 since the end of 2022, compared with nearly 500,000 just before the pandemic.
Pending sales have stabilized as the initial shock of elevated mortgage rates moves further into the rearview mirror, but high housing costs are still keeping many buyers on the sidelines, according to Redfin.
New Listings Tick Up Slightly, But Overall Housing Supply Remains at Record Low
New listings rose 0.8% to 474,239 in August on a seasonally-adjusted basis from July.
It’s the second small uptick on a seasonally-adjusted basis following nearly a year’s worth of declines. Year-over-year new listings were down 14.4%. Most homeowners who feel handcuffed by high rates have already made the decision not to sell, said Zhao.
“New listings have likely bottomed out,” she said. “Many of today’s sellers are putting their homes on the market because they have to, in some cases due to divorce, family emergencies or return-to-office policies.”
Still, the total number of homes for sale hit a record low of 1.3 million in August, falling 1.1% month over month on a seasonally adjusted basis and 20.8% year over year, the largest annual decline since June 2021.
Housing supply is at an all-time low because homeowners feel locked into their low mortgage rates. For many, selling their home and buying a new one would mean taking on a much higher monthly payment, Redfin said.
Are you looking to learn how to find a free car? Cars are expensive. There’s no doubt about that. Is it possible to get free cars? Getting a free car may sound too good to be true, but it’s possible for people who meet certain requirements, which we will talk about below. In this article,…
Are you looking to learn how to find a free car?
Cars are expensive.
There’s no doubt about that.
Is it possible to get free cars?
Getting a free car may sound too good to be true, but it’s possible for people who meet certain requirements, which we will talk about below. In this article, I’ll show you how to get a free car through different ways, from charity donations to assistance programs, and more.
I understand that there are so many people who would benefit from a more affordable transportation option. After all, a car can be essential to landing a job, getting to work, helping you pick up and drop off your children at childcare (so that you can work!), getting groceries, and so much more.
Low-income families, single parents, individuals with disabilities, veterans and their families, and so many others may particularly benefit from getting free vehicles to improve their quality of life.
Whether it’s making it easier to get to work, taking the kids to school and childcare, or simply attending important appointments, acquiring a free car can have a significant impact on your daily life.
Related content:
Why do free cars exist?
Free cars exist to help people who need transportation.
There are many organizations whose sole purpose is to help you get a free car because they know how much it can change a person’s life.
Below are some organizations that may help you find a free car:
Nonprofit Organizations— Some nonprofit organizations give away cars for free to those who need one. They work with local partners and households and accept donations of old cars and used cars, which are then fixed up and given to those who need them. These organizations usually target specific groups of people, such as low-income families, working families, single parents, military families, or disabled individuals, who may find it hard to afford a car on their own.
Churches and Private Charities— Churches and private charities may offer car help in your community as well. They usually work on a smaller scale, providing help to local residents experiencing hardships and may just give out a free car here and there. These organizations often rely on donations from members of the community and local businesses, and they require applicants to demonstrate a genuine need for a vehicle. You may need to contact local churches and charities directly to learn more about how to get a car for free.
People donate their used cars all the time. Their reasons may be either because they have no use for the car, they want to avoid the hassle of selling a car, for tax breaks, or they want to help others.
Who can benefit from free cars?
There are many people who can benefit from a free car, such as:
Low-income families— If your family is struggling with money and you are finding it hard to afford your bills, you might be eligible to receive a free car if you can show your need to an organization.
Single mothers and single parents — Single moms and parents need transportation so that they can get to work and also be able to bring their children to childcare. Not having a car can make this much more difficult.
Domestic violence victims — Having reliable transportation can be important for the safety and well-being of domestic violence victims. Some organizations have experience providing a free car in this situation and understand the need for privacy.
Disabled individuals — If you have a disability, you might be eligible to receive a free car to help you get around and be more independent.
Veterans and military families — Veterans and military families can also benefit from free car programs. There are organizations dedicated to providing assistance to those with a military background, to repay them for their service and sacrifices.
Victims of natural disasters — If you have experienced loss from a natural disaster, then you may benefit from many charitable free car organizations.
Of course, there are many more people who could benefit from finding affordable transportation as well. This is not a full list of those who might need a free vehicle.
Now, you do want to be cautious with getting a free car. If you are receiving government assistance, such as housing assistance, welfare, or food stamps, then accepting a free car may be considered income and it can affect your benefits. This is something that you will definitely want to think about as you do not want to lose these benefits.
How To Get A Free Car
There are organizations that help you get a car when you need a free vehicle. And there are other ways to find a free car as well. Below are some of the options that you may want to look into:
1. 1-800-Charity Cars
1-800-Charity Cars (also known as Free Charity Cars) is a nonprofit organization that provides free vehicles to eligible people, including domestic violence victims, the medically needy, victims of natural disasters, veterans and military families, and families transitioning from public assistance to work. It was the first charity of its kind in the nation.
This is the original free charity cars organization and they have given away over $70,000,000 in cars (over 9,000 cars) nationwide since they started the organization in 1996.
To apply, you will need to meet their eligibility criteria and submit an application on their website. Some of their eligibility requirements include being over the age of 18, being a resident of the U.S., having a valid driver’s license, being at or below 200% of the Federal Poverty Level, and having a genuine need for a vehicle.
This is a good place to start if you need a free car and you’re wondering where can I get a donated car for free.
2. Vehicles for Change
Vehicles for Change was started in 1999 and has given out over 7,500 cars to low-income families for little to no cost.
This organization helps residents in the states of Maryland and Northern Virginia. Cars are repaired and restored by people seeking workforce training as auto mechanics.
Donated vehicles are provided to families in need who meet their eligibility requirements. Eligible applicants must have a verifiable job offer or be working at least 30 hours per week, have no DUIs, and have a valid driver’s license to begin the application process.
3. Good News Garage
Good News Garage is a car donation program to look into if you’re trying to find a free car. They provide refurbished free cars for low-income families that meet their eligibility requirements. They give out around 200 cars to families in need each year and have provided around 5,500 cars since starting in 1996.
This organization is available for those in need who live in the New England area of Massachusetts, Vermont, and New Hampshire.
Good News Garage also has a transportation program. If you need to get to a job or get your children to childcare, then their program Ready To Go may be able to help you with this as well.
4. Online Car Donation
OnlineCarDonation.org is another platform that donates refurbished vehicles to needy individuals and families.
Online Car Donation gives free cars to people such as those with physical challenges, families living in homeless shelters, military families, and more.
You can apply by filling out their application form on their website and providing the required documents to prove your eligibility.
After you submit your application for a free car, if you are chosen, you will be contacted within 30 days. If you do not hear back within that time frame, their website says you can apply again as applications are only valid for 30 days.
5. With Causes Charitable Network
The WithCauses.org Network helps individuals and families in need by providing resources and assistance, which includes help getting a free car. The eligibility requirements may vary, so visit their website to find out if you qualify and how to apply.
6. Salvation Army free car program
The Salvation Army offers a free car program for eligible candidates.
They mainly focus on helping domestic violence victims, families in dire financial situations, and the homeless. Visit your local Salvation Army branch to inquire about their car donation program and how to apply.
7. Cars 4 Heroes
Cars4Heroes donates free cars to first responders, military veterans, and their families who are in need of transportation.
Cars 4 Heroes was started in 1996, and the organization currently gives away over 300 cars a year in the Kansas City, Kansas, metro area.
You can fill out their application form on their website and provide the required documentation to be considered for a free car.
8. Local church
Your local churches or other religious institutions may have programs that provide free vehicles to families that need help getting a car.
You may want to contact your nearby churches to find out if they have any car donation programs and how to apply or if they have eligibility requirements. They may know someone that they can connect you with to help you get a free car.
9. Check Facebook Marketplace and Craigslist
Many people often give away their cars or sell them at low prices on platforms like Facebook Marketplace and Craigslist.
If I was wondering about free cars near me, then I’d browse through these websites regularly to find out if anything is available. The search can be customized by entering your budget and location to see if anything suitable turns up.
10. Find a job that gives you a free car
There are jobs that may give you a free car as well, in case none of the above options works for you.
Some job positions that may come with a company car include sales representatives, district managers, or regional directors who spend a lot of time traveling between different offices.
To start your search for jobs that give you a car to take home, you can look for job postings with phrases like “company car provided” or “full-time vehicle provided.” Job websites such as Indeed, LinkedIn, and Glassdoor make it simpler to find such job listings by using specific keywords, so you may try searching for those. I did a quick search and was able to pull up jobs easily by typing those phrases into the keyword search bar.
Some employers might offer a car allowance instead of providing a free car. In this case, you would receive a monthly stipend to use toward your vehicle expenses. This would offset some of your car expenses, such as monthly payments or maintenance.
Also, if you know someone who currently has a company car, you can try asking them for tips and advice. They might even refer you to open positions at their workplace, and this can help you get a job with a free car as well.
11. Look for a free dealer donation
Dealer donations are a little more difficult of an option, as car dealers are in the business of making money, not giving away all of their cars that make them that money.
But, it doesn’t hurt to try if you have the time to write a letter and reach out to a car dealership.
To obtain a car dealer donation of a free used car, you’ll want to start by seeing what local dealerships are in your area. You can research their involvement in charitable activities to see if they even give out free cars (maybe do a simple search of the dealership’s name plus the term “free car” or something like that), as this will show you that they are open to the idea of donating a vehicle to those in need of a free car.
Once you have a list of local dealers to reach out to, there are ways to get a free car from a dealership. You can write a letter talking about your situation and reasons for requesting a donated car. You should talk about your struggles and the positive impact the donation will have on your life (such as, what a donated car will help you do).
When writing your letter for a free dealer donation, here are some things to think about:
Write the letter to the dealership’s owner or general manager, as they will likely have the authority to approve a car donation or be able to talk to someone who does have that authority.
Explain your situation fully and provide the specific reasons why you need a car.
Talk about how a car donation would improve your life and allow you to overcome challenges or achieve goals.
Provide information on any relevant programs or resources, such as a community organization or nonprofit, that may support your request for a free car.
After you have written your letter, submit it to the dealership. You may do this by sending it to the physical mailing address of the person, their email address, or perhaps even handing your letter to them in person.
Here are answers to common questions you may have about finding a free car:
What are other transportation options if I can’t find a free car?
There may be a long waiting period if you are applying for a donated car. If you are not able to find a free vehicle, then you may need to look into other options to get around town. Here are some ideas on how to get around if you don’t have a car of your own:
Public Transportation— If you live in a place with public transportation, then this option is something to look into. One great thing about public transportation is that you won’t have to pay to maintain a vehicle or repair anything. Of course, public transportation sometimes takes longer and may not be widely available to you (unfortunately, there are many towns in the U.S. that do not have great public transportation options), and that is something to think about. Also, more and more cities offer public transportation at no charge. You may have to apply for a special card to get this free service, or it may be available to everyone. It’s worth asking around about because it can save you hundreds of dollars a month.
Carpooling — Carpooling is an option to think about if you are unable to find a free car, especially for people who live in areas with limited public transportation. Car owners may be looking for riders so that the expense of ownership is offset a bit. You’ll need to share the cost of expenses, such as gas, tolls, parking, and wear and tear. You may be able to share rides with coworkers, friends, or neighbors. To save money, you could offer to trade babysitting, gardening, or home repairs for the ride. Also, check out carpooling apps that apply to your local area.
Rideshare Services — Now, rideshare most likely won’t be the most affordable option, but sometimes you don’t have a choice. Rideshare services, such as Uber and Lyft, may be able to get you to where you need to go if you don’t have any other options. To save money, use an app that compares rideshare companies and finds you the cheapest price. And, as far as your work commute, it’s good to know that some companies offer rideshare services as a benefit to their employees and will pay for the full cost or part of it.
How can I find free cars given away near me?
Yes, you can find free cars given away near you. There are many local organizations that may be able to help you out. You can research the various charity programs in your area and see if you meet their eligibility requirements for a free car.
Many charities, such as Charity Cars, provide free vehicles to people in need. These organizations often target specific groups of people, like veterans or victims of domestic violence.
Next, reach out to local branches of organizations like the Salvation Army or Goodwill Industries. These organizations may also auction off donated cars at affordable prices. Reach out to your nearest branch to learn more about available vehicles and to find out if they hold any auctions.
Another option is Online Car Donation, which aims to provide free cars to as many people in need as possible. Fill out their application to see if a reliable used car is available for you. They also offer trucks, vans, and sometimes even modified vehicles for individuals with disabilities.
Remember to be patient but also to keep trying, as it can sometimes take time to find the right opportunity for a free car. And, many times your application is only good for 30 days, so keep in mind that you may have to submit it over and over again.
Is Free Charity Cars legit?
Yes, Free Charity Cars is a legitimate organization that connects eligible people with free vehicles. They have high ratings and many endorsements.
How to get a car if you can’t get a free one?
If you’re not able to get a free car, you do have some other options, such as learning how to get a cheap car and learning the best way to get a car loan with a low interest rate.
Here are my tips for finding a cheap car:
Shop around for cars that are affordable to you: Many organizations offering a free car may also give you the option of purchasing a refurbished vehicle from them at a much lower cost than elsewhere. Otherwise, check out your local dealerships, online car-selling platforms, and even Craigslist to find the best deals on reliable cars in your area. Don’t limit yourself to just one site; shop around and be patient until you find a car that fits your budget.
Buy a used car: Buying a used car rather than a brand new one can save you money. Pre-owned vehicles tend to be more affordable and can still offer reliable transportation.
Negotiate for the best price: Don’t be afraid to negotiate the price of the car with the car seller or dealership. They may be able to lower the price, especially if you can show them that similar cars are around for cheaper prices elsewhere.
Check your credit score: Before applying for a car loan, make sure that you know your credit score. A better credit score increases your chances of getting a lower interest rate on your car loan. If you can, I recommend you take the steps to improve your credit score (even while searching for a free car) in case you need to apply for a car loan.
You can learn more about building up your credit score at Everything You Need To Know About How To Build Credit.
Shop around for car loans: Just as you should shop around for the best car deal, you should do the same for car loans. Different lenders may offer different interest rates and loan terms.
Choose a shorter loan term: While a shorter car loan term means higher monthly payments, you’ll pay less in interest overall, making the car less expensive over the years.
There are plenty of options for finding cars that may not be entirely free but are still affordable to you.
Related content: Save Money With These Top Tips For Buying A Car
How To Get A Free Car — Summary
I hope you enjoyed today’s article on how to get a free car.
If you need a car but cannot afford one, there are several ways to possibly get a free car. Many programs and organizations exist to help people get a free car, especially if you belong to certain categories, such as low-income families, veterans, domestic violence victims, or those transitioning from public assistance.
Remember, you do want to be cautious with getting a free car as well. If you are receiving government assistance, such as housing assistance, welfare, or food stamps, then accepting a free car may be considered income, and it can affect your benefits.
To find free cars near you, it’s important to explore local nonprofit organizations, as well as community centers, churches, or social services agencies that may have information about free car programs or resources in your area. Some jobs come with a company car that you can take home.
Here are some potential resources to assist you in getting a free car:
Local nonprofit organizations
Online car donation websites
Community centers and churches
Social services agencies
Remember that just because you meet the eligibility requirements for a free car and apply for one, it does not mean that you will succeed. There are many people who would like to receive a free vehicle as well. However, you can increase your chances of getting a free car if you can show that you have a need and you have a story to share (since people personally review the applications to see who needs the car the most).
The home-selling process can be challenging at times. This is especially true if home sellers are trying to move quickly or are hoping to avoid costly renovations. That’s why homeowners sometimes choose to sell and advertise their houses as is.
Selling a House As Is
Selling a house as-is means the homeowner will not make repairs or renovations before selling it to a buyer, even if the home has structural concerns or is in poor condition. If you’re considering selling a home as is, you can expect a couple of nice perks, yet there could be a few limitations you’ll want to be aware of.
The following article will break down the pros and cons of selling your house in its current condition and provide other helpful insights for an as-is home sale or purchase.
The Benefits of Selling a House As Is
First, let’s go over some reasons why you might opt to sell your house as is.
Sell fast
If you want to get more equity from your home without putting in a ton of effort, it’s possible to just sell it as is. Home-buying companies may be eager to take a home off your hands. Other cash buyers, like investors, may also be ready to buy your house quickly. Especially in a seller’s market, you will likely be able to sell successfully.
Save money on home improvements
When you sell your house more traditionally, you want to get the most money from your sale by fixing up your home. You may also be required to make repairs to meet certain state standards in order to sell your home. Buyers will have an inspection done and the cost of some repairs or updates, especially those regarding safety, often falls to the seller. Selling as is means you can usually avoid those possibly expensive repairs.
Attract home rehabbers and house flippers
A lot of buyers want to make renovations and changes based on their own preferences and may actually prefer paying a bit less for an as-is home.
Less hassle and negotiating
A home inspection that uncovers a lot of issues can cost a decent amount of money upfront. While the seller isn’t necessarily required to make all renovations or repairs, the buyer and seller must negotiate who will pay for what in a typical sale. If you don’t want to spend the time and money tackling those projects, it may be harder to sell your house at your previous purchase price. By selling the home as is, you won’t have to do as much negotiating with a buyer or agent, at least in terms of home upgrades and repairs.
The Cons of Selling an As-Is Home
Selling a home as is can be a great option for some people, but selling your home like this also has its challenges.
Make less money off the sale
Usually, you will make less money selling your home as is than listing it traditionally.
Since as-is homes often need repairs the owner wants to avoid paying for, these home listings are more likely to attract buyers looking for a deal. Unfortunately, even if your home is in excellent condition, people will expect you to sell an as-is home at a lower price.
Fewer buyers available
Marketing an as-is home can be more challenging, plus many lenders require the home to meet certain living conditions.
If a home needs a lot of work and the seller isn’t going to contribute to the cost of fixing it up, fewer buyers will be able to afford a mortgage for such a house. Not to mention, a less-than-ideal home may look worn, which can make buyers uninterested.
Buyers don’t want the hassle of hiring contractors
Buyers may not want to hire contractors to assess the home and estimate a fair purchase price.
Buyers may already be hesitant about taking on a project and feel the cost of hiring contractors isn’t worth it. That being said, sellers are still legally and ethically obligated to disclose major issues to buyers, which can lower the home’s value.
Alternatives to Selling a House As Is
If selling your house as is isn’t right for you, there are a few viable alternatives to consider:
Update and repair. Invest some money and time to fix and update your home. With a few repairs and renovations, you may be able to command a higher price than selling as is.
Rent your home out. If you don’t need to sell your home for a down payment on your next home, you may be able to rent it out. This may be an especially practical option if you live in a tourist area, college town, business district or other strong rental market location.
Tips for Selling a House As Is
If you’re ready to sell your house as is, here are some tips to help with the process.
Know the Type of Buyer You Want To Attract
There will be a big difference between your average buyer seeking a home to live in and an investor looking to flip your house. Investors specifically go after as-is homes and have the upfront cash needed to buy your home, so your house doesn’t need to meet too many conditions to be competitive.
Conversely, someone in the market for a home to live in will have much different expectations. While they won’t expect you to fix your home, they will expect to pay less for your home than it would typically go for. Keep in mind that even if a buyer is seeking an as-is home, they will still likely hesitate to make an offer on homes that have too many major issues.
Consider the Condition of Your Home
Like with a more traditional sale, your home will still have an appraisal and an inspection, affecting the purchase price.
If your home is in moderately good condition and still livable, your house could be an optimal option for more typical homebuyers. If your house will be a big reno project, you should target investors to get the most money off the sale.
Sell in the Right Market
A seller’s market — when there’s more home demand than supply — is the best time to sell your home as is. You can sell your home for a more competitive rate because, despite the extra cost, buyers may be more willing to fix up a home than not move into a new home at all. The market conditions will always affect how much you lose by selling a house as is.
Emphasize Other Property Selling Points
For most buyers, money is a significant factor in selecting a home — and a home with lots of repairs and renovations means lots of extra expenses. However, some as-is homes may have other desirable traits that make the purchase worthwhile. For example, location is of primary importance for a lot of people. If you have a home in a highly sought-after neighborhood, there’s a better chance that you’ll be able to sell your house as is.
The Bottom Line: How Much Money Can You Lose Selling a House As Is?
You usually won’t make the same kind of money selling your home as is as you would selling it the traditional way. While there’s no one answer to this question, most sellers can expect to get between 75% and 95% of their home value.
Tips If You Are Looking To Buy a House As Is
If you are considering buying an as-is home, here are some tips to keep in mind.
Plan for a Home Inspection
You should always get a home inspection if you’re seriously considering buying. This is especially essential for as-is homes.
Sellers shouldn’t hide issues with their homes, but they may not always be forthcoming or even be aware of certain problems. A home inspection lets you know what you’re working with so you don’t invest all of your time and resources into a never-ending money pit.
Know the Required Home Inspection Standards for Lenders
If you’re like most people, you don’t have hundreds of thousands of dollars in cash to splurge on a house, which means you’ll need a mortgage loan to purchase a home, even a fixer-upper. Make sure you can afford the necessary repairs to your prospective home; otherwise, the home may not qualify for a mortgage loan.
Rely on Experts
A good real estate agent will help you navigate and negotiate buying a home as is. Sellers have every right to sell their home exactly as it is, but they are also legally required to disclose details about their home, including the challenges. As a local expert, your agent should know the market conditions and can help you determine whether or not you should commit to an as-is home.
Also note that if a lender won’t loan you a certain amount of money for a home, that indicates the property isn’t suitable for living in and may not be worth your efforts and time unless fixed.
What Does Market Condition Mean?
Market conditions are the factors that influence the value of your home depending on the area. This includes the cost of living, mortgage rates, supply and demand, demographics and the overall economic status of the housing market.
For example, let’s say employment levels are high and a larger percentage of the population has steady employment and income. If this is the case, it’s also likelier that people are in the market to buy a home because they can afford it. This means the price of housing will usually go up. The opposite is generally true, too — if unemployment is high and people aren’t buying homes, the cost of homes will go down.
Depending on the market condition of your area, you may or may not be able to easily sell your home. If housing is competitive and favors the seller, then the market conditions will favor an as-is home sale. If the cost of homes is low, then buyers would benefit from purchasing a turn-key home if they can afford it rather than taking on an as-is home with projects.
What To Know About the “As-Is Condition” Clause
Sellers of as-is homes are responsible for revealing known problems with the property. An “As-Is Condition” clause is part of the real estate contract that protects the seller from liability should the buyer discover unknown or other defects with the home after purchasing it.
The as-is clause explains that the buyer is willing to accept the home in its current condition and agrees to forego requesting the seller to make repairs or a price reduction based on property problems. However, the as-is clause does not relieve a seller from liability should it be found that the seller intentionally misrepresented a defect or did not disclose a known problem.
Curious How Much Your Home Is Worth?
Visit the Pennymac home value estimator and see an instant estimate of your home’s current value and view recent home sales in your area.
Are laundromats profitable? Or, are laundromats a dying business? Learn how much laundromats make and if laundromats are a good investment.
Are laundromats profitable? Is buying a laundromat a good investment?
Ever wondered if owning a laundromat is as profitable as people say?
I’ve been seeing a lot of videos on social media lately talking about how much money laundromats make (seems like it’s a popular small business idea right now!). So, I wanted to do my own research and learn as much as I could on the topic of laundromat businesses to see why it’s trending so much.
Whether you are looking to make extra income or if you plan on opening several laundromat businesses, there are some things to think about before you get started.
In today’s article, we’re going to talk about:
How profitable a laundromat can be
The pros and cons of owning a laundromat
Why a laundromat may be a smart investment
Tips on how to find a laundromat to buy
And more.
Quick summary: Yes, laundromats can be a way to make money (and even passive income!) due to people needing to wash their clothes and low costs to run. However, the amount of money that you can make is based on factors such as location and maintenance costs (new machines can be expensive!). High-quality laundromats with lots of amenities are in, and the old days of dirty and hot laundromats are not.
Are Laundromats Profitable?
Is owning a laundromat a good investment? Is owning a laundromat a good way to make money?
According to the Coin Laundry Association, there are around 35,000 laundromat businesses in the United States and nearly 95% of laundromats succeed.
That is a pretty good success rate.
It’s important to understand that, like with any other business, laundromats require an investment of money—both initial and ongoing. You’ve got your rent, machines (you will need more expensive commercial laundry equipment), utilities, and insurance.
The good news is, your income would hopefully be higher than these costs, making you a profit at the end of the month. Some people are able to run a laundromat as their full-time income, and for others it may simply be one of their side hustles.
The amount of money that you can make from a laundromat depends on your management skills, the location of your business (the average laundromat user lives within 1 mile of the laundromat that they use, so you want to be close to your customers!), and more.
Related content:
Is a Laundromat A Smart Investment? Do Laundromats Make Money?
This is a hard question to answer, as everyone is different!
For some people, a laundromat can be a smart investment, for others it may not be. The good thing, though, is that you are reading this article so that you can figure out if owning a laundromat is for you or not.
Yes, many laundromats make money. On average, a laundromat can earn a profit of around 20% to 30%.
Note: Before making a decision, I highly recommend reaching out to a financial advisor before making any decisions.
Factors Impacting A Laundromat’s Net Income
There are numerous things that can impact how much money a laundromat can make such as:
Location– The location of a laundromat is important in how much money you can make. This is because a laundromat located in a populated area often makes more money than one in a less populated area. The reason is, that when there are more people, there are more people likely to use laundromats.
Competition– If there are other laundromat businesses nearby, this could impact your profit because you now have competition. This is because too much competition may mean that there are less customers coming to your business.
Demographics– The demographics of people living around the area of your laundromat are important. For example, laundromats tend to do better in areas with a lot of renters, college students, or households without a washing machine or dryer (of course).
We recently stopped to use a laundromat while we were traveling in our RV. One thing we noticed was that this laundromat had a ton of amenities. Now that I’m thinking about it, this laundromat business owner was smart. They knew what their potential customer needed. They opened a laundromat right next to a popular cross-country trail, and added great amenities such as snacks and even a pay-to-use shower. These factors helped this laundromat stand apart from its competition and probably led to more people using it because it was a one-stop shop.
Some laundromats can earn profits as high as 35% or more! These are usually high-volume operations in urban areas with lots of people living nearby and they tend to offer a wider range of services such as wash-and-fold or dry-cleaning.
Owning a laundromat can be a smart investment for some people because they can possibly have a stable flow of income.
However, you will want to keep in mind that success in this type of business still depends on careful planning, an understanding of your local market, and more. Not everyone will succeed, of course.
How To Find Laundromats For Sale
Jumping into the laundromat business begins with finding a laundromat business that is for sale, or starting your own business from the ground up.
If you are looking for a laundromat business that already exists and is for sale, here are some tips and strategies for locating a laundromat for sale.
Online platforms– Many websites list laundromat businesses for sale. Examples include BizBuySell and LoopNet. These platforms can be your first stop so that you can easily look at laundromat listings. I was able to find many laundromats for sale, ranging from around $100,000 to over $1,000,000. These sites will give you a lot of information too, such as the revenue, monthly rent that the laundromat pays, the year it was started, and some background on the business.
Broker assistance– There are commercial real estate brokers with experience in the industry that can be invaluable resources. These individuals often have connections and insights that you may not have as an individual buyer. You may want to search for commercial real estate brokers in your local area and see who can help you find a laundromat business for sale.
Local advertisements– Sometimes laundromats are listed for sale in your local newspaper. You can see if there is a business for sale section in your local paper to get started.
Important Things To Think About When Purchasing A Laundromat
When you come across a potential laundromat to buy, here are some things to think about:
Location– As mentioned in the earlier sections, the location of a laundromat plays a very important role in if the laundromat will be successful or not.
Condition of equipment– Commercial laundry machines are expensive. These are not the washer and dryers that you have in the home you live in. These are meant to take a lot of loads and be running nearly all the time. Due to this, you will want to inspect the machines thoroughly and, if possible, have a professional technician check them. This is because broken or old machines could result in costly repair or replacement costs.
Business finances– If you find a laundromat that you are interested in, then you should ask to see their financial records and carefully review them.
Lease agreement– Many laundromats do not own the building that they are doing business from. Due to this, you will want to look at the terms of the lease. A laundromat with a long-term lease allows for longer operations without the risk of eviction or a sudden rent increase.
Demographics and competition– As you read in an earlier section, knowing more about the demographics of the local area, as well as about your laundromat competition, is important too.
Remember to approach this process with patience. Investing in a profitable laundromat is a journey that requires careful planning, research, and due diligence.
Owning A Laundromat
Operating a laundromat is more than just collecting coins from machines. There are maintenance needs, customer concerns, and potential unexpected issues that you may come across.
Below, I take you through the typical day-to-day operations of a laundromat.
Day-to-Day Operations Of A Laundromat
Opening up– Regular, reliable hours are important in the laundromat industry. Therefore, opening up the store in the early morning is always a good idea as many people like to get their laundry done first thing. Plus, many of your customers will be repeat clients, so making sure that you open up at the same time each day is required.
Machine maintenance and cleanliness– When running a laundromat, you will need to check on the washers and dryers, perform required maintenance, and make sure that your business is clean. You will also want to make sure you are well-stocked with detergents and fabric softener.
Customer service– While the average laundromat only has 2 employees or less, you will want to have good customer service. After all, a happy customer is far more likely to return and recommend your services to others.
Financial management– Collecting payments and record-keeping is something that is done every single day.
Tips on Managing a Profitable Laundromat
Sell extra services– Successful laundromats tend to sell many more services other than just self-service laundry. Due to this, you may want to also try diversifying your income streams so that you can make more money from your laundromat. You can sell other services such as wash-and-fold services, dry-cleaning, dog washing stations, showers, or even have vending machines.
Maintain your machines– Regularly maintaining your washer and dryer machines minimizes downtime and expensive repair costs, so that your laundromat can run smoothly.
Promote your business– Word of mouth is so important in this type of business, but don’t shy away from using social media or local advertising to draw in potential customers.
Running a money-making laundromat is much more than keeping the machines running. It involves good customer service, finding more services to sell, and marketing your laundromat business.
Frequently Asked Questions About Laundromats
Here are common questions about owning a laundromat.
How much profit can you make from a laundromat? How much do laundromat business owners make?
The profits from laundromats vary depending on location, operation expenses, size of the laundromat, the amenities you sell, and more. The average laundromat business sees a profit margin of around 20% and 30%.
The national average income for self-serve laundromats ranges between $15,000 to $200,000 per year. As you can see, that is a wide range and that is because it just depends on so many different things.
What are the pros and cons of owning a laundromat?
Like with any business, there are positives and negatives. Owning a laundromat isn’t for everyone.
Owning a self-service laundromat can earn you money and can be a stable, low-risk investment with low operating costs. It can be a fairly passive income stream as well, as you don’t need many employees (the average laundromat has 2 or fewer employees). However, running a laundromat isn’t all easy, there are challenges such as high start-up costs, machines braking, and more.
The challenges of running a laundromat include that high-quality commercial laundry machines can be quite expensive and purchasing or leasing a location with enough space for machines and customers can be a significant portion of startup costs. Also, wear and tear is going to happen in a laundromat as machines get constant use, and the cost of repairing or replacing machines can add up.
Is owning a laundromat a smart investment? Is owning a laundromat worth it?
Owning a laundromat can be a smart investment, and it can be worth it for some people. But, it will cost you money.
It costs around $100,000 to $300,000 to start a laundromat. Starting or buying a laundromat can be high, but it can also earn you a steady income. But, that doesn’t mean that it’s a smart investment for everyone. There are many factors that go into running a successful laundromat.
How to find laundromats for sale?
You can find laundromats for sale through websites, commercial real estate agents, or business brokers. You can also network with existing laundromat owners or associations who can provide insights into potential sale opportunities.
Are laundromats a dying business?
The laundromat business has changed over the years, but they are still very much needed. People use laundry facilities all the time, including myself such as when I am traveling in my RV or boat. Everyone needs to wash their clothes.
There are ways to keep your business up to date, such as having a laundromat that accepts different methods (such as credit card and cash), having a drop-off service, and making your facility comfortable (such as with WI-FI, TV, beverages, etc.).
What are the key success factors for running a laundromat?
Successfully running a laundromat depends on many factors like the location, maintaining clean and well-functioning machines, providing good customer service, having amenities (such as air conditioning or head depending on the temperature, TVs, etc.), and more.
Are Laundromats Profitable? – Summary
I hope you enjoyed this article on whether buying a laundromat is a good investment or not.
Here’s a quick summary of what we learned above about this business venture:
Running a laundromat can be a way to make money, but it depends on many different factors.
Laundry businesses typically have low labor costs (they are fairly passive businesses with a lot amount of workers needed) and can be recession-proof.
Owning a laundromat does have cons and challenges, such as the fact that commercial laundry machines can be quite expensive if they need to be repaired or replaced.
There are many laundromats for sale and you can start your search online.
Running a successful laundromat business in today’s world will likely mean running a higher-quality business and selling amenities for additional fees.
In all, the profitability of owning a laundromat may make the challenges worth tackling. The average laundromat is changing and improving, and there can be room to make money with this small business.
So, what do you think? Are laundromats profitable? Are you interested in owning one?
Residential sale-leaseback platform EasyKnock continues to gobble up proptech startups. Home maintenance company Onder is EasyKnock’s latest acquisition, according to GeekWire, which first reported the story.
The terms of the acquisition were not disclosed.
Founded in 2021, Onder sells a subscription-based home maintenance service that deploys technicians to help with both interior and exterior property maintenance. Customers can request help for HVAC cleaning, plumbing, painting, power washing, gutter cleaning, and roof repair, and it covers more than 100 homes.
Onder raised an undisclosed amount of venture capital including a pre-seed round led by Rackhouse Ventures in 2021, but in late 2022, as the housing market slowed and economic uncertainty rose, the flow of venture capital funds slowed.
“The venture capital environment continued to be a headwind and we had been operating with very little margin for error,” David Krieger, the CEO and co-founder of Onder, told GeekWire in an email. “[S]o when we evaluated the landscape with our advisors, it just made sense to include mergers and acquisitions as an attractive path forward.”
Krieger said customers will not experience an interruption in their service due to the acquisition.
Through the acquisition, Onder’s services will be offered to EasyKnock’s customers. In a statement, EasyKnock said the acquisition is part of its larger goal of creating the “first nationwide property maintenance platform for homeowners.”
Kreiger and Onder’s employees (numbering fewer than 10) will join EasyKnock, and Kreiger will serve as EasyKnock’s chief product strategy officer.
EasyKnock received $57 million in venture capital last year. Investors included Blumberg Capital, Gaingels, Moderne Ventures, QED Investors, Viola FinTech, and Zillow founder, Spencer Rascoff’s venture firm 75 & Sunny.
In May, EasyKnock acquired struggling power buyer firm Ribbon for an undisclosed amount.
This may come as a surprise, but I don’t really care what the real estate industry thinks about iBuyers — companies that make quick, all-cash offers on homes and close the transactions in days. Here’s what I do care about: What do consumers think?
For the last couple of years, the traditional real estate industry has been aggressively debating the viability and sustainability of iBuying. During that time, tens of millions of dollars in venture capital has flooded into backing this new business model. Opendoor alone has raised over $1 billion in six rounds of funding. The national expansion by an increasing number of companies is being discussed by real estate agents coast to coast. The big brokerage firms didn’t sit idly for long, either: Industry giants have announced iBuyer programs, too.
But the bottom line is this: The only voice that counts is the consumer’s.
In a real estate transaction, the fiduciary duty of a real estate agent is to represent the interest of the client — in this case, the seller. If an iBuyer has the best deal for a seller, that’s great. That’s the offer the seller should take.
The problem is that the iBuyer process is a heck of a lot more complicated than it sounds. More than ever, sellers need the help of a professional real estate agent, especially when there is an iBuyer offer on the table. But no one is telling them that. The implication is that they can either go it alone with an iBuyer or use a professional. The way I see it, there is no either/or here. Consumers need professional help to make the right decision.
That’s because not all iBuyer companies are the same. Not all iBuyer offers are the same. Not all iBuyer processes are the same, and not all iBuyer pricing methodologies are the same. Every iBuyer has a different set of standards for the homes it will consider buying (a.k.a. their Buy Box), and depending on the condition of the home, its potential popularity among local buyers, the seller’s equity and a number of other factors, the seller could end up leaving money on the table by working with an iBuyer instead of an agent — even taking an agent’s commission into consideration. Yet, the speed, surety, and ease of selling to an iBuyer may still make this the BEST option for the home seller. This is precisely why having an agent’s hand to hold is so valuable. They can help weigh all options to sell.
We’re still in the early innings of the iBuyer game, and sellers need to know they have a bit of a built-in advantage because companies are going to be more likely to pay more now than they are later on. History has taught us that about new business models.
That does not mean an iBuyer offer is even a viable option for alll home sellers. Industry analysts have estimated that 90% of all instant offers are rejected and referred to a real estate agent, becoming a regular real estate listing and sale. That’s nine out of every 10 deals, indicating that iBuying is currently a very limited segment of the market.
But without a real estate expert on your side, someone who knows your market inside and out and who sells homes every day for a living, how can you be sure if you are in the 10% category or the 90%?
That’s why I still believe traditional real estate agents have a stronghold in a presumed iBuyer world. This is also another opportunity for finding an innovative way to engage traditional real estate agents with technology they may have resisted. There’s a business opportunity for every agent in the iBuyer world with these direct offers.
For example, when a seller gets an iBuyer offer, an agent can help them understand the true cost of the offer by preparing the seller for repair fees. Sellers may not need to complete the repairs themselves, but many will pay for them regardless. Repair fees are not calculated until after the (very thorough) home inspection, so the instant offer price can change throughout the process, significantly decreasing the seller’s net proceeds. And agents are experts at managing the home inspection.
Sellers should also understand that an iBuyer offer typically can be canceled by either party at any time — and sometimes the iBuyer walks. With a professional agent at their side, sellers have access to an expert who can negotiate some of the repair costs and help the seller find their next home. Agents can set the right expectations, provide steady counsel and advocate for sellers through the iBuyer process.
Whether the iBuyer market share is 10% or 30% of all transactions, it is the local agent who knows which homes are selling — and which ones are not. A local agent can bring more value than expected to the iBuyer decision making process for the consumer.
I urge the real estate community to stop talking about iBuyers among ourselves and start talking to our clients. Let’s remind them how important it is for them to come to their local agent if they are considering any offer, including one from an iBuyer. Let’s tell them the truth: iBuying is not as instant as it sounds. It can be complicated, and the guidance of a local real estate pro can help make sure sellers are making educated decisions.
Arizona’s vast landscapes and diverse architectural styles present a unique backdrop for the real estate market. Whether you’re buying a Spanish-inspired villa in Scottsdale or selling a contemporary home in Phoenix, home inspection is a critical stage that can’t be overlooked. For buyers, this process unveils the home’s hidden stories, ensuring a sound investment. For sellers, it’s an affirmation of the property’s worth and a chance to address possible concerns proactively.
This Redfin article will shed light on the nuances and best practices of inspections in the Grand Canyon State while also featuring expert insights from Arizona home inspectors themselves. Given Arizona’s unique climate and housing trends, understanding the home inspection process in the local context is vital. Let’s get started.
Why should you get a home inspection in Arizona?
Securing a home inspection in Arizona is not merely a procedural step; it’s a strategic move, given the state’s distinct environmental and architectural dynamics. Arizona’s unique climate, marked by intense heat, monsoon seasons, and occasional dust storms, can impose specific wear and tear on properties. These factors might lead to issues like foundational cracks, roof damage, or HVAC inefficiencies that aren’t immediately evident to the untrained eye. Furthermore, with the diverse range of architectural styles and ages of homes in the state, potential hidden complications can vary widely. A thorough home inspection offers buyers peace of mind, ensuring they are making a sound investment, and gives sellers an edge by addressing concerns proactively, promoting a smoother transaction process.
Are there any specialized inspections that Arizona buyers should consider?
Arizona buyers should consider several specialized inspections when purchasing a property. Given Arizona’s unique climate and geographical features, some of the key inspections to consider include a thorough termite inspection due to the prevalence of termites in the state, a comprehensive pool inspection if the property has a pool, a radon gas test, and a geological inspection in areas prone to soil instability or geological hazards.
Kyle Pritchett of Pritchett Home Inspection says that regardless of which specialized inspection you opt for, your inspector should have all the necessary tools and equipment.
“There are a lot of different types of inspections out there today for both sellers and buyers to choose from,” says Pritchett. “So, if you are going to choose one of those, why not choose one that is going to give the inspector an upgrade on what he is able to see? When you select a thermal home inspection, the inspector should be utilizing a top-of-the-linermal camera, which will enable them to detect missing insulation, air leakage, bad window seals, electrical issues, water intrusion, moisture issues, and even pest intrusions they are not able to detect with the naked eye. When making one of the biggest investments of your life, make sure your inspector has the tools to see everything you need to know about the home you’re purchasing.”
Hailey Rodriguez from WIN Home Inspections adds, “In addition to their home inspection, home buyers in Arizona should consider getting an infrared scan to identify abnormalities within the home such as moisture, insulation gaps, energy loss, and electrical hazards that are hidden within the walls, floors, and ceilings of the home.”
Are home inspections required in Arizona?
Home inspections are not legally required in Arizona, but they are highly recommended. They safeguard buyers from unexpected problems and provide an opportunity to negotiate repairs or pricing based on inspection findings.
“Even though a home inspection may not be required for your purchase, it is a great way for a home buyer to prepare for the home they are considering purchasing,” says Dylan Bucknavich of ProInspect. “They reveal a lot about a home and can even include services such as Sewer Scopes, Pool Inspections, and Indoor Air Quality. When purchasing a resale or new home, we highly recommend the buyer speak to few inspectors to get a sense or their experience and level of service.”
How much does a home inspection cost in Arizona?
The cost of a home inspection in Arizona varies based on factors like the property’s size, location, and additional services requested. According to House and Home Inspection Services, home inspections usually cost between $350 and $450 for standard sized houses, though this figure can vary depending on square footage and other factors.
David Dion of Whole Home Inspections recommends prioritizing experience over price when choosing a home inspector. “Home inspection prices in Arizona are generally based on size, age and any additional services requested. It’s important to hire an experienced home inspector who has a trained eye to see what other inspectors may not. Therefore, we don’t recommend using price as your determining factor when trying to find the right inspection company for your needs. However, if a company is a few hundred dollars above or below many others, you may consider asking why.”
Can you sell a house in Arizona without an inspection?
You can sell a house in Arizona without an inspection. However, it’s advisable for sellers to get pre-listing home inspections to attract more confident buyers and streamline the negotiation process.
Expert advice for buyers getting a home inspection in Arizona
“Be present at the inspection, so you can meet the inspector and let them go over the findings with you personally at the end,” says Tim Sponsler of 1st Priority Inspections. “This helps immensely with understanding the property you are purchasing.”
“With inflation and rising costs, life got expensive, really quick,” says Matthew Willer of Truss Home Inspections. “Get a home inspection and get the full picture before making the leap. Repair costs can add up more now than ever before.”
“The average new build home buyer is convinced they do not need a home inspection for a new build, says Cy Porter of CyFy Home Inspections. “The State of Arizona holds builders to a higher standard than most parts of the country. All new build homes in Arizona come with a 2 year state required warranty which includes cosmetic defects. If the buyer wants to have all of their warranted items addressed by the builder, the buyer must identify the defects and present them to the builder. If the builder refuses to address any defects then a complaint can be filed against the builder with the Arizona Registrar of Contractors (ROC). The Arizona ROC will then send out an investigator to verify the defects and then require the builder to address them.” A home inspector can identify warranted defects and hold builders accountable.
“Be sure to hire a licensed, experienced, inspector by asking how long they’ve been performing inspections and how many inspections they’ve performed,” according to DoubleTree Home Inspection Services. “Ask if the inspector provides a review at the end of the inspection to go over the findings so you can see the items for yourself. For items needing repair, it may be preferable to negotiate a discount or credit for repairs, rather than relying on the sellers to make satisfactory corrections.”
“A home inspector may not perform any repairs on a home that they’ve inspected,” says Connor Barickman of Purple Cactus Inspection. “This restriction allows the inspector to remain impartial. The sword cuts both ways because when a home inspector identifies a problem with the home, the inspector is not in a position to provide a quote to remedy the problem. The inspector is not licensed to perform the work and it would be a violation of the code of ethics to do so. Once a problem has been identified, it is time to bring in a licensed contractor. An excellent contractor will be familiar with the most up-to-date standards on how to correct the issues identified on a home inspection report. Furthermore, they can provide accurate written quotes which can be used to make a request of the seller which could be a price reduction, or a request to have the issue repaired before the transaction closes.”
Getting an Arizona home inspection: the bottom line
Getting a home inspection in Arizona is a smart investment. It empowers buyers with information, aids in identifying specialized issues, and facilitates smoother transactions. While not mandatory, an inspection is a practical step towards ensuring a safe and secure real estate investment in the Grand Canyon State.
An $18.4 million mortgage-subsidy fund resulting from the 2022 Trident Mortgage redlining settlement is now open to eligible borrowers in three Eastern states.
After a combined state and federal investigation last year found Trident — one of the largest mortgage lenders in the Philadelphia area before it ceased originations in 2020 — had regularly engaged in practices to discourage minority borrowing, the now-defunct company agreed to establish the fund under conditions of the settlement. The fund will support Black borrowers and majority-minority neighborhoods in a region that includes parts of Pennsylvania, New Jersey and Delaware.
“This subsidy program will make a difference to many hundreds, possibly thousands, of families impacted by historic redlining practices in Philadelphia,” said Pennsylvania Attorney General Michelle Henry in a press release.
The fund, called Pathway to Prosperity, includes two different programs — HomeAssist and HomeAccess — which will provide as much as $10,000 in financial assistance per qualifying mortgage. The rollout comes after Trident conducted a study to determine the needs of majority-minority communities in the Philadelphia area. Trident is contracting with nonbank lender Prosperity Home Mortgage to administer the fund.
HomeAssist will provide funding for the purchase or refinance of a primary residence located in a qualifying census tract. HomeAccess, meanwhile, is aimed at assisting current residents living in eligible neighborhoods to purchase a primary residence located in any state Prosperity is licensed.
“For too long, companies have avoided offering mortgages in neighborhoods that are home to predominantly people of color, denying them equal access to mortgage credit. This is one small step toward correcting that injustice,” Henry said.
Per the settlement, Trident will also provide consumer financial education and engage in community development partnerships within affected communities. Prosperity will open offices in some minority neighborhoods as well.
Although no longer conducting business as a home lender, Trident had agreed to continue operations to implement terms of the settlement. Both Trident and Prosperity are mortgage subsidiaries of Berkshire Hathaway-owned HomeServices of America, a consortium of companies serving real estate interests.
Following a four-year investigation, Trident was fined a total of $24.4 million, which included a penalty of $4 million owed to the Consumer Financial Protection Bureau for various violations. Among the investigation’s findings were derogatory language, including racial slurs, used in emails between Trident staff, and marketing campaigns that excluded minority consumers. More than half the population of Philadelphia is Black or Hispanic.
Attorneys general of the three affected states participated in the investigation, along with the CFPB and the U.S. Justice Department. All voiced approval of Trident’s program.
“The launch of this important loan subsidy fund marks a critical step in our efforts to redress Trident Mortgage Co.’s mortgage redlining practices, and to begin the process of making whole the communities that have been harmed by generations of systemic housing discrimination,” said New Jersey Attorney General Matthew J. Platkin.
“It will take generations to truly repair that harm — but this subsidy program will make a real, tangible difference for hundreds of redlining’s victims,” added Delaware Attorney General Kathy Jennings.
Redlining, defined as a systematic practice of underserving or discriminating against predominantly Black, Hispanic or other ethnic neighborhoods, has been prohibited since the 1960s with the enactment of the Fair Housing Act. But violations continue decades later, with multiple financial institutions this year involved in redlining lawsuits.
This past spring, Pennsylvania-based Essa Bank and Trust was also fined $3 million for purported infractions in the Philadelphia area. And in January, City National Bank of Los Angeles resolved allegations against it by agreeing to pay more than $31 million, the largest redlining settlement in history. Allegations have similarly hit the likes of KeyBank and HSBC in 2023.
Your home is likely your biggest investment — and all it takes is one disaster to cause serious financial trouble. Although home insurance isn’t required by law, it can still be a smart move, even if you own your home outright.
Is homeowners insurance required by law?
No, home insurance isn’t legally required. However, it’s highly recommended. Unexpected events like fires, theft and natural disasters can happen at any time. Without insurance, you’d be left to pay for losses yourself.
Do mortgage lenders require home insurance?
Lenders typically require you to have home insurance when you take out a mortgage. So even though you’re not legally required to have home insurance, you may still have to buy it.
When you take out a mortgage, your house is used as collateral for the loan. This means that if you can’t pay your loan back, the lender can recover its money by taking possession of your house. Home insurance protects the lender’s investment by ensuring your home can be repaired or rebuilt if it’s damaged as a result of events covered by the policy. If you don’t have home insurance and your home is destroyed, the lender may not be able to recover the money it lent you.
Depending on your location, your lender may require you to purchase extra coverage beyond a standard home insurance policy. For example, you may need flood insurance if you live in a special flood hazard area (SFHA). You can check FEMA’s Flood Map Service Center to see if you live in an SFHA.
If you don’t get home insurance before your loan closes — or you don’t get enough coverage — your lender may buy it for you and add the cost to your mortgage payment. This is known as “force-placed insurance,” and it’s usually more expensive and offers less coverage than insurance you buy on your own.
How much homeowners insurance will a lender require?
Generally, your lender will require you to have enough insurance to cover the full cost of rebuilding your home if it’s destroyed. This is known as the replacement cost. So if it costs $300,000 to rebuild your home, your lender will likely require you to have at least $300,000 in dwelling coverage.
🤓Nerdy Tip
When you take out a mortgage, your minimum home insurance requirements will typically be listed in your mortgage contract. Be aware that you might need more than the minimum if you have valuables like art, fine jewelry and electronics.
Mortgage insurance vs. homeowners insurance
Mortgage insurance and homeowners insurance are both types of insurance related to homeownership, but they serve two different purposes.
Mortgage insurance protects your lender if you stop making payments and default on your mortgage. There are two types of mortgage insurance:
Home insurance covers unexpected events like fires, theft or natural disasters. It can help you rebuild your home and other structures, replace your belongings, pay for legal and medical bills if someone is injured on your property and cover additional living expenses if you need to temporarily relocate while your home is being repaired.
🤓Nerdy Tip
Mortgage insurance is usually required if your down payment is less than 20%. Home insurance is recommended for all homeowners, regardless of how much you put down on your home.
What happens if you don’t have home insurance and your home is damaged?
Not having home insurance can be risky, as disasters can take place at any time without warning. Having home insurance means you may not have to pay as much to repair the damage on your own should one happen.
If your home is damaged and you don’t have home insurance, you’ll be responsible for paying for repairs out of your own pocket. This can be a huge financial burden, especially if the damage is extensive. In that case, you may need to take out loans or drain your savings to cover repair costs.
Without home insurance, you’ll also have to pay to replace personal stuff like furniture, appliances, electronics, clothes and much more.