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Category: Home Buying

  • Who invests in commercial real estate in America?

    Reader Question: I am researching commercial real estate. Who invests in commercial real estate in the US? Monty’s Answer: The definition of commercial real estate is buildings owned by an investor or investors to generate income from rent. According to the National Association of Real Estate Investment Trusts (NAREIT), the total size of the commercial…

  • Are real estate appraisals flawed?

      Reader Question: ​Why do​ appraisals use comparative analysis as a means for valuing a home? This approach is flawed as most of the time they do not take into consideration the upgrades one has made in their home, plus the layout of the yard and landscaping that enhances one’s home. Why don’t they use…

  • Nine high-odd flashpoints for home condition issues

    Reader Question: We are planning on buying a home soon. Many of our friends and co-workers have purchased homes in the past few years. Between stories we hear from them and the stories on real estate websites, home inspections are one of the most common trouble spots in the process. Are there certain circumstances where…

  • Homebuyer finds foundation problem after closing

    Reader Question: We bought a one-hundred plus year-old home. Tenants occupied it at the time of purchase, and we couldn’t move in for three months. It is our first house. It has a stone wall foundation and wooden beams supported by screw jacks. An addition has a concrete block foundation. The home inspection called for…

  • Five critical components for investing in real estate

      Reader Question: I am considering investing in real estate. Can you explain how people avoid taxes just by owning property? Monty’s Answer: Real estate investors do not invest in real estate to avoid taxes. They invest in real estate to build wealth. Appreciation, income, and depreciation create wealth in real estate. Depreciation is also…

  • Is real estate agency law working?

    today’s reliance on agency over caveat emptor does not appear to have had much of an effect. It feels like industry leaders are painting the ceiling when the roof leaks.

  • Ten flashpoints in real estate contracts

    The ten flashpoints in real estate contracts are contract subjects to make certain you understand.

  • Are real estate agents allowed to share our offer with other buyers?

    Reader Question: Our agent is suggesting that we write an offer on a home we like to include a contingency that we are willing to pay more for the house if another buyer makes an offer at the same time. They would word the contingency so the seller shares a better offer with us and…

  • Two appraisals miles apart; What should I do?

    Reader Question: I ​am purchasing a home. Lender appraisal (A) value came back $48,000 lower than the contract price. Sellers disagreed and argued it was a bad appraisal. I agreed to get a second opinion. Appraisal (B) came back $5,000 over contract price. The two appraisals are miles apart. I was shocked because I was…

  • In real estate, what is procuring cause?

      Reader Question: One of the agents we are interviewing to help us find a home mentioned something called “procuring cause” which is a term unfamiliar to us. Apparently, we have to be careful about talking with other real estate agents because other agents can get the commission if they mention a potential match that…

  • Flip or hold real estate? A comparison

    Reader Question: I am interested in starting a career as a real estate investor. Both remodeling to flip or hold homes for the long-term interest me. I do not have any construction experience, nor have I any actual real estate experience. I am quick to pick up on training, and I’m people orientated so I…

  • Buy an existing new home vs. build from scratch?

    Reader Question: We bought a lot several years ago to build a home, and we are now ready to go forward. I have gathered some general information, but I’d like to have more of a general idea before we decide between buy new existing home or build from scratch? . Where can I find information…

  • Six tips when buying a home warranty

    Reader Question: We are buying a home, and the agent suggested a home warranty to replace or repair things that wear out. The warranty covers such items for a year, after which time we can renew the contract or let it lapse. The cost of the coverage is over four hundred dollars. We have asked…

  • Should I buy a home with a standing water problem? 



      Reader Question: The house I am buying has a sump pump because of a standing water problem. ​I have looked at the home three times and each time I saw standing water in the next door neighbor’s yard. They had dug a long trench which runs along the side of their house facing my…

  • Neighborhood Due Diligence Checklist

    Reader Question: We found a home we are very interested in buying. We hear a lot of different opinions about how to check out the neighborhood. Do you have a neighborhood due diligence checklist? Monty’s Answer: Consider a conversation over a checklist. The reason you hear so many opinions is that people’s circumstances and life…