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FAQ

by Lance Kammes
FAQ

In a home buying process, getting pre-approved for a mortgage is the first step.  It is mandatory for the home buyer to get a pre-approval letter from a lender as it demonstrates to your agent and the seller that you’re a serious buyer.

Buying a home involves a tedious process and is full of lengthy paperwork. Hence, it may take a time about 10 to 12 weeks from beginning (online searching) to the end (closing of deal). The average time taken to complete the escrow period on a home is around 30-40 days  after the acceptance of offer. Buying a home may take the longer time than normal if you’re making a deal on hot markets with a lots of sales activity.

Real estate investment is a great investment option because the real property never depreciates in value. But the location and community needs to be considered when choosing a home as it greatly effects the future value of home.

Both older and newer homes have distinct benefits. Generally, the  cost of older homes is less than new homes but in some cases, the cost of new home may cost less than the old ones. These are the older homes in which the landscaping is already completed.  

In a new house,  home designer focuses on lowering the future emery costs for the owner. That’s why they use new building materials, thicker insulation and other technology to achieve the same. Hence it only depends on your preference, what fits you and what you’re looking for in a home.

Closing costs as the name implies are the costs which are incurred by both the party (buyers and sellers) in transferring property ownership.

FSBO is the abbreviation for “For Sale by Owner.” FSBO is generally a property that is being sold by the owner without a real estate agent.

One Time Show listing is type of agreement signed between the homeowner and the real estate agent. In this listing, the homeowner signs a declaration that he will provide the agent with a commission for selling the property. As per this agreement, the homeowner will also have no right to negotiate with the buyer in future to avoid paying a commission.

Real estate brokers are the licensed agent who ensures all the real estate transactions get managed easily according to the letter of law.  They’re responsible for compliances, new agent training, paper approval and lead generation.

A contingency is a conditional purchase agreement between the buyer and the seller. It becomes a part of binding sales contact when both the parties’ signs the contract after reading each condition thoroughly.

Debt to income ratio is the ration of gross monthly income that goes towards paying off debts. It helps the loan lenders to determine how much amount you can afford to borrow if you’re applying for a home loan.

A multiple listing services is a list of homes available for sale in an area listed with a realtor. Both Realtors and agents have right to access the MLS and identify a house in a particular area or in a particular price range.

REALTOR is a trademark of the National Association of Realtors.  Realtor is a real estate agent or an agency that belongs to the local or state board of REALTORS. Realtors perform the job of sponsoring the MLS and manage transactions according to the guidelines of state license laws.

An escrow officer is the person who looks for the entire escrow process and conduct different activities. They witness the document signing, prepare the final paperwork, perform the title searches and looks for the proper execution of the transaction.

Title insurance is an insurance plan that tends to protect both the buyer and the lender against any losses incurred from disputes linked with the title of a property.

A Listing Agent is the one who lists a property for sale on the Multiple Listing Service. They usually deal with the sellers.

A Selling Agent is the one who sells the MLS listed home. They mostly deal with the homebuyers.

If you’re planning to buy a new home or an old home, hiring a real estate agent would be the best option in many ways. As an experience person in the real estate industry, he will provide you with the most current information about what is for sale or what has sold. If you need guidance on buying a property then your agent will make recommendations on what terms and prices to offer to close a deal.

It would be quite imprudent if you try to back out of the contract. The purchase offer which is being accepted by you is a legal contract and the other party may take legal action against you if the contract is broken.

No, it is not mandatory for a seller to accept the offer of a buyer with the highest offer. If you want to sell your home to a buyer with a lower-priced offer, you can accept that offer instead

Determining the home price is a critical task and is dependents on the prevailing state of the real estate market conditions. If the market is declining then it may affect your property value. Hence, it is always recommended to consult an experienced realtor who can determine the correct listing price for your home based on the comparable market analysis.

Predicting the right time to put your house for sale on the market is very tricky.  Economic factors like demand and supply, your selling price etc plays a vital role in making a wise deal.

However, according the real estate market trends, the market goes strong from February to June and tapers down during July and August.

Comparables are the recently sold property having similarity in location, size and other amenities to the home for sale.  Such comparison helps the seller to determine the actual market value of a property.

It is never advised to sell your home at a price higher than the appraised value if the demand of houses in your area is not high. Even if you want to sell your home on the high end then you may lose qualified buyers and market interest. Therefore, you should ask your real estate agent which price would be right for your home based on the local market conditions.

A counteroffer is an offer created by one party with the intent to make changes to the exiting or original offer of the other party.

‘Exclusive Right to Sell’ listing is an effective listing in which the real estate agent is provided with the power to sell your home with methods like advertising, network marketing (marketing to other agents) etc. This type of listing is more profitable than other selling methods and offers various financial benefits to both the seller and agent

An ‘Exclusive Agency Listing’ is a listing in which your agent can enter your home into the MLS. If your property is sold through an agency or any other agent, he will receive a commission but if you find a buyer on your own for your home then he will not receive any commission. Agents usually avoid this listing because commission is not guaranteed here for them.

Seller’s market is characterized by increasing demand for home that causes a sudden hike in prices of home.  Demand for homes usually rise when the local labor market heat up or when only fewer homes available on the market due to lack of new constructions.

Opposite to seller’s market, in buyer’s market reduction is demand for home negatively affects the home prices. Factors like economic disruptions, high interest rates, high inventory & natural disasters affect long term and short term buyer demand.

Stratified market is a market condition when the demand and supply characteristic differ by price point in the same city ( or same locality).

The Offer of any property contains various items, points and conditions. Some of them are given below

  • Buyer and Seller Name.
  • Purchase Price
  • Address of a property with its legal description
  • Fixtures and items to be included/excluded in the sale
  • Property condition disclosure
  • Deadline for acceptance
  • Proposed financing option

Sometimes the buyers not accept the first offer. In such cases, they propose a counter offer to include additional terms & conditions that they feel are mandatory.

The legal description is the property description based on the Government surveys and recorded maps. Such description is used to identify your property location on the most legal documents.

It is an informational form given to the buyer by the Seller of a home. This disclosure highlights any defects or defects in the physical condition of the property that may materially affect the value of your home. Problems like structural issues with the home, roof defects, mold issues, pest problems etc are not covered in this disclosure.

Price and condition of your property are the two most important factors. You should price your home correctly based on the local market conditions. Also, you should repair any cosmetic deter (if any) that could deter a buyer.

Your presence is not required for the inspection but if you want, you can follow the inspection and ask objective opinion about the home you are likely to purchase.

You can keep record of different properties by taking photographs of each house. Ou can also go back for a second look to make the most informed decision.

Everyone wants to live in a home that is in superior condition. Therefore, before inviting buyer, you should ensure to make repairs prior to selling. If your property is in top condition, you will be having an excellent chance to sell your home faster and at high price.

Apart from your minimum requirements, you should look after the factors like:

  • Is the house structurally sound,
  • How good is the floor plan?
  • Does it have enough storage space.
  • Is anything needs to be replaced or repaired
  • How the home will be in different weather conditions.

If you have queries, you should ask your real estate agent to point out the pros and cons of each home and help you in correct decision making.

In your final walkthrough have a clear view of everything. Check the ceilings and walls carefully. Also check what action has your seller taken in response to the inspection. Remember, it will be your last walkthrough prior to closing.

We at  lancekammes.com can help you at different stages of the property buying/selling process. We will find a property within your prices, organize finance, reports and searches and provide possible assistance relevant to your areas condition.

We conduct through move-in and move out inspection. You can view inspection report of your home and can analyze good or bad in your home. For details please contact us at 630-868-6300

Lance Kammes Team will help you to set your expense and suggest tips to afford a home.  Discuss your queries with us and we’ll develop a plan for you.

Buying a home is a hot deal from buyer’s perspective. Agents who represent buyers are provided with commission by the listing broker. When the deal is closed, the listing broker compensates the listing fee with the buyer’s agent. Hence there is very little fee you have to pay an agent for your property deal.

Borrowers with high credit scores are more likely to get loan from the lenders to buy a home. Alternatively, home shoppers with low credit score may need to pay extra money to qualify the lender’s risk criteria.

Ans44 It’s up to you! But you should visit each home personally to see how it looks and ask yourself will it offer the comfort you need in your dream home.

You will need to sell your current home if the build-up equity in your current home applied on your new home down payment. Alternatively, you don’t need to sell the same if you’re renting it out.

The seller might take 1-3 business days to accept your Offer. To get the quick response from seller, you should immediately inform him that you’ve sent him an offer.

If your initial offer get rejected by the seller, it is possible he can initiate a counteroffer. If you receive the same, you and your real estate agent should ensure that if the counteroffer is acceptable. If it is acceptable then approve it and close the deal immediately.