Frequently Asked Questions
• Sellers Questions
• Buyers Questions
• Investment Property
Questions
Above are catagories of some our most
asked questions based on topic.
If you have any other questions you would like to ask, feel free to contact us
via email or call us toll free at (866) 940-0004
Sellers Questions
Q: How is a home's value determined?
A: You have several ways to determine the value of a home.
An appraisal is a professional estimate of a property's
market value, based on recent sales of comparable properties,
location, square footage and construction quality. This
service varies in cost depending on the price of the home.
On average, an appraisal costs about $300 to $400 for a
$500,000 home.
A comparative market analysis is an informal estimate of
market value performed by a real estate agent based on similar
sales and property attributes. Most agents offer free analyses
in the hopes of winning your business.
You also can get a comparable sales report for a fee from
private companies that specialize in real estate data. You
also can find comparable sales information available on various
real estate Internet sites.
Q: What is the best time to sell your house?
A: In addition to supply and demand, and other economic factors,
the time of year you choose to sell can make a difference
both in the amount of time it takes to sell your home and
in the ultimate selling price. Weather conditions are less
of a consideration in more temperate climates, but most
of the time, the real estate market picks up as early as
February, with the strongest selling season usually lasting
through May and June.
With the onset of summer, the market slows. July is often
the slowest month for real estate sales due to a strong spring
market putting possible upward pressure on interest rates.
Also, many prospective home buyers and their agents take
vacations during mid-summer.
Following the summer slowdown, real estate sales activity
tends to pick up for a second, although less vigorous, fall
market, which usually lasts into November when the market
slows again as buyers and sellers turn their attention to
the holidays.
Sellers often wonder whether or not they should take their
homes off the market for the holidays. Generally speaking,
you'll have the best results if your house is available to
show to prospective buyers continuously until it sells.
Q: Do I have to consider contingencies?
A: If you are a seller in a seller's market, in which there
is more demand than supply, you probably won't have to
entertain too many contingencies. But if you are selling
in a buyer's market, when buyers are few, prepare to be
very flexible. Granting contingencies also depends upon
what kind of price you want to get and on the condition
of your property, most experts agree. Remember, contingencies
are written into the contract and are negotiable during
the negotiation phase only.
(back
to top)
Buyers Questions
Q: What is the difference between market value and appraised
value?
A: Appraised value is a certified appraiser's opinion of the
worth of a home at a given point in time. Lenders require appraisals
as part of the loan application process; fees range from $200
to $300.
Market value is what price the house will bring at a given
point in time. A comparative market analysis is an informal
estimate of market value, based on sales of comparable properties,
performed by a real estate agent or broker.
Q: What is the difference between list price, sales price
and appraised value?
A: The list price is a seller's advertised price, a figure
that usually is only a rough estimate of what the seller wants
to get. Sellers can price high, low or close to what they hope
to get. To judge whether the list price is a fair one, be sure
to consult comparable sales prices in the area.
The sales price
is the amount of money you as a buyer would pay for a property.
The appraisal value is a certified appraiser's estimate of
the worth of a property, and is based on comparable sales,
the condition of the property and numerous other factors.
Q: What are some tips on negotiation?
A: The more you know about a seller's motivation, the stronger
a negotiating position you are in. For example, seller who
must move quickly due to a job transfer may be amenable to
a lower price with a speedy escrow. Other so-called "motivated
sellers" include people going through a divorce or who
have already purchased another home.
Remember, that the listing price is what the seller would like
to receive but is not necessarily what they will settle for.
Before making an offer, check the recent sales prices of comparable
homes in the neighborhood to see how the seller's asking price
stacks up.
Some experts discourage making deliberate low-ball
offers. While such an offer can be presented, it can also sour
the sale and discourage the seller from negotiating at all.
Q: Whose obligation is it to disclose pertinent information
about a property?
A: Obligations to disclose information about a property vary
from state to state.
Under the strictest laws, the seller and the seller?s broker,
if there is one, are required to disclose all facts materially
affecting the value or desirability of the property which are
known or accessible only to him.
Items sellers often disclose include: homeowners association
dues; whether or not work done on the house meets local building
codes and permits requirements; the presence of any neighborhood
nuisances or noises which a prospective buyer might not notice,
such as a dog that barks every night or poor TV reception;
any death within three years on the property and any restrictions
on the use of the property, such as zoning ordinances or association
rules.
It is wise to check your state's disclosure rules prior to
a home purchase.
(back to top)
Investment Property Questions
Q: What do you think of a vacation home as an investment?
A: You can buy a vacation home today for investment purposes
as well as enjoyment. And yes, there are tax benefits. Some
people buy a vacation home to use as a permanent retirement
home later, which allows them to get ahead on their payments.
Another benefit is that the interest and property taxes on
a vacation home are tax-deductible.
Some real estate experts predict that vacation homes will
appreciate in value due to rising demand from the aging Baby
Boom generation. You also can depreciate the property if you
live in the house less than 14 days a year.
You also need to consider whether you can afford to carry
two mortgages, pay for the extra utilities and maintenance
costs, and how this investment fits into your total personal
finance picture.
Q: How do I project rents on a rental?
A: If you are buying a rental income property and applying
for a loan to do so, the lender will require an area rent
survey by a certified appraiser. The amount a landlord can
expect to receive in monthly rent largely depends on what
the property has rented for in the past, the condition of
the building, its location and the current housing market.
Lenders also look at other cash-flow considerations. They want
to know if you have enough reserves on hand to cover predictable
and unforeseen expenses, such as property insurance, taxes,
regular maintenance and repairs.
Q: Where do I get information about being a landlord?
A: If you are a landlord and have questions, contact:
* National Multi-Housing Council, 1850 M Street, N.W., Washington,
DC 20036; call (202) 659-3381.
* National Apartment Association, 21 N. Union St., Suite 200,
Alexandria, VA 22314; (703) 518-6141.
Q: What kind of return is there on remodeling jobs?
A: Remodeling magazine produces an annual "Cost vs. Value
Report'' that answers just that question. The most important
point to remember is that remodeling a home not only improves
its livability for you but its curb appeal with a potential
buyer down the road.
Most recently, the highest remodeling paybacks have come from
updating kitchens and baths, home-office additions and extra
amenities in older homes. While home offices are a relatively
new remodeling trend, for example, you could expect to recoup
58 percent of the cost of adding a home office, according to
the survey.
Q: Where do I get information on homes with historic value?
A: For information about homes with historic value, contact
the National Trust for Historic Preservation, Washington,
D.C. at (202) 673-4000.
(back to top) |
