Buyers
What
is the first step to buying a home?
What is the difference between appraised value and market value?
What does homeowners' insurance cover?
Should I hire a home inspector?
What
are closing costs?
Why
do I need an REALTOR® if I can find a home by myself on the Internet?
Sellers
Do
I really need a REALTOR®?
Are
there standard ways to determine how much a home is worth?
What
is the difference between list price and sales price?
Financing
How
do I find out what my credit report says?
What kind of financing do I qualify for?
Buyers Properties
What
is the first step to buying a home?
Make sure you are ready - psychologically and financially. Unless you are planning to pay cash, it is best to be pre-approved by a lender before you start looking. This is important because it will help you establish what price range you can afford, and when you are ready to make an offer it will show sellers you are a serious buyer. Most lenders qualify you based on your income and debts, so it is a good idea to have all this information ready when you meet with a loan officer. Items you will probably need include: copies of one month's pay stubs, list of long term debts with minimum monthly payment amounts and two month's of bank statements.
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What
is the difference between appraised value and market value?
A certified appraiser who is trained to provide the estimated
value of a home determines its appraised value. The appraised
value is based on comparable sales, the condition of the property,
and several other factors. Market value is the price the house
will bring at a given point in time, once the buyer and seller
establish a "meeting of the minds" on price. If you are obtaining financing, your Lender will order an appraisal to establish that the negotiated Sales Price accurately reflects the home’s value. Ask your Lender what the guidelines are for the type of financing you are getting.
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What
does homeowners' insurance cover?
It protects against disasters - whether natural, manmade or
mechanical. A standard policy insures the home, as well as
your possessions. Because this insurance is packaged, it covers
liability for any harm, loss, and property damage that you
or your family members cause others. Also it can include additional
living expenses in case you are temporarily displaced because
of damage from a fire or other insured disaster. While you
are not legally required to have homeowners' insurance, mortgage
lenders stipulate that you do. It protects their investment
in the home in case of a natural disaster or catastrophic
event. If your mortgage is paid up - or you never had one
- it is still a good idea to have homeowners' insurance to
protect your home and your belongings. Keep in mind that all insurance policies are different. Contact an insurance agent to compare coverages.
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Should
I hire a home inspector?
By all means. Buying a home without getting expert advice
is risky. Once a home inspection is complete the inspector will give you a copy of the report. You shuld go over it carefully and decide if there are any repairs to be made. By having a home inspection done during your “Option Period,” you may be able to negotiate necessary repairs with the Seller or negotiate to adjust the sales price so that you can afford to make the repairs yourself, or you can decide to terminate your purchase. This protects you and keeps youo knowledgeable about the property you are looking to purchase.
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What
are closing costs?
Closing, or settlement, costs are expenses over and above
the price of the property. Both the buyer and seller incur
some of these expenses when transferring ownership of a property.
Who actually pays, however, often depends on local custom
and what the buyer and seller negotiate. Closing costs normally
include title insurance, loan points, escrow or closing day
charges, property taxes, home service contracts, and document fees. The lender provides
an estimate of closing costs for prospective homebuyers.
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Why
do I need an REALTOR® if I can find a home by myself on the Internet?
While more buyers now use the Internet to gain access to listings,
or available properties for sale, it is still a good idea
to use REALTOR®. The REALTOR® brings value to the entire process:
he or she is available to analyze data, answer questions,
share their professional expertise, and handle all the paperwork
and legwork that is involved in the real estate transaction.
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Sellers
Do
I really need a REALTOR®?
According to the National Association of REALTORS®, 97% of homeowners that try to sell their homes end up listing with a REALTOR®, and homes sold using a REALTOR® brought a higher sales price. REALTORS® are educated on the laws and forms governing the sale of real estate and maintain their licenses by keeping their education up-to-date. A REALTOR® guides you through the entire home-selling process, and gives you the freedom to continue with your daily life while your REALTOR markets your property, answers emails and calls from other REALTORS® and from clients, and presents your property to prospective buyers. A REALTOR® is also able to place your property in the Multiple Listing Service (MLS), where REALTORS® from all other area companies will be able to find you listing to present to their clients. Contact a REALTOR® for more details about how he or she can help you sell your home.
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Are
there standard ways to determine how much a home is worth?
Yes. A comparative market analysis and an appraisal are the
two most common and reliable ways to determine a home's value.
Your real estate professtional can provide a comparative market analysis,
an informal estimate of value based on the recent selling
price of similar neighborhood properties. Reviewing comparable
homes that have sold within the past six months along with the listing,
or asking, price on current homes for sale should prevent
you from overpricing your home or underestimating its value.
A certified appraiser can provide an appraisal of a home.
After visiting the home to check such things as the number
of rooms, improvements, size and square footage, construction
quality, and the condition of the neighborhood, the appraiser
then reviews recent comparable sales to determine the estimated
value of the home. You also can check recent sales in public
records, through private firms, and on the Internet to help
you determine a home's potential worth. Ultimately a property is worth what a buyer is willing to pay for it.
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What
is the difference between list price and sales price?
The list price is your advertised price, or asking price,
for a property. It is a rough estimate of what you want to complete
the sale. The sales price is the
actual amount the property sells for.
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Financing
How
do I find out what my credit report says?
Finding out your credit score is an important first step in
the home buying process. You can obtain a copy of your credit
report by calling one of the three national credit reporting
agencies: Equifax: 800-685-1111 Experian: 800-311-4769 Trans
Union: 800-916-8800. If you are thnking about purchasing a property, your Lender will run a credit report and you can request a copy.
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What kind of financing do I qualify for?
Your Lender will discuss with you the financing options you qualify for based on your credit report and other information such as your income, debt, and savings. There are numerous types of financing and your Lender will be able to best determine the right type for your situation.
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