Frequently asked questions from buyers and sellers
When is the best time to sell?
Your particular market circumstances will determine when it is the best time to sell in that area. Your Realtor can provide you with a market analysis and advice on this. However, the best time to sell for you may be determined by your personal needs.
How do you determine what my home is worth?
Realtors use different tools to develop a comparative market analysis. They take information from comparable properties in the area that have sold. Realtors may refer to this as "running comps". These comps, along with your home's specific qualities, and the characteristics of the community will determine what your Realtor suggests you would be able to sell your home for.
Why is the assessed value of my home different from what you told me it is worth?
The market value of your home is what it's worth and the assessed value is what your tax rate is based on. They are done with different information and by different people, so they are rarely the same.
Can I determine how much my home is worth from an internet site?
No. Sites like Trulia and Zillow are wonderful tools, but are rarely exact in market value estimations. They simply do not have enough information on the specifics of YOUR home to be accurate. A Realtor can easily run a market analysis for you at no charge or obligation.
What are seller concessions?
Seller concessions can be thought of as a type of gift to entice a buyer. Sometimes they are in the form of providing certain costs towards closing, inspections, warranties, etc. Remember, everything is negotiable!
What is a contingency?
A contingency simply means the outcome is dependent on a certain factor. For example, some offers are contingent on a buyer being able to obtain financing.
How much will it cost to sell a home?
The two main costs to a seller are generally preparation costs and closing costs. Preparations needed to add desired value and appeal to your home are dependent on your specific home. A Realtor can help you understand what preparation you might need and weigh if it is worth the cost to you overall. Closing costs are the costs paid at closing. These include the selling and buying broker's commission and transfer taxes. They will also sometimes include title insurance and attorney's fees.
How do you plan on marketing my home?
A Realtor should use the best marketing tools they have to broadcast your home. This includes social media, the MLS and it's syndicates, and other Realtors. We live in an age of incredible technology and that is where buyers are looking for your home.
Why isn't anyone looking at my home?
This usually comes down to price. Did you listen to your Realtor about your listing price? Or did you become emotionally attached to the price Zillow said your home was worth? Lowering the listing price can be very difficult for a seller to do, but it can often get the buyer you need in a timely manner.
How do I prepare for showings?
Preparing for showings can feel stressful, but there are a few things to know ahead of time to make this easier for you. You want to make sure your home is very clean and tidy. No clutter! Clear off counters, clear out excess items from your closets and cabinets, and put your children's toys away. You will also want to put away any items that personalize the home. Your Realtor should be able to make the appropriate suggestions.
How do I know what I can afford?
Get pre-qualified. Then get pre-approved. What's the difference? A pre-qualification gives you a rough estimate of what houses you can look at, and your Realtor needs this at a minimum before showing you a home. A pre-approval is a more in-depth look at your credit, income, debt, assets, and situation. Pre-qualification is often seen as the first step in the buying process and pre-approval the second. Your Realtor can make a referral if you don't know where to start. They generally work with multiple mortgage brokers and loan originators.
Should I be pre-approved by a lender before looking at homes?
That is ideal. However, you can generally see homes once you are pre-qualified and working on pre-approval.
Should I buy or continue to rent?
I always say, you are either paying your own mortgage or someone else's. When you buy, you are paying your own and building financial security and equity. Of course, there may be some circumstance where you need to rent, but this should be short-term.
What about rent-to-own deals?
They exist, however, they are very rare and not considered the norm.
Should I buy a home before selling the one I am currently in?
There's no correct answer here. Sometimes buying a home before selling one grants you the needed security of knowing you have a place for you and your family to live. Talk to your Realtor about the pros and cons.
Do I need a Realtor to buy or sell a home?
No. You can buy and sell real estate without a Realtor. It's just in your best interest to use a one. They are legally bound to a fiduciary duty to their clients, meaning they must put the interests of their clients above their own. They are also experts in real estate, the market, negotiating, and attention to detail. They are the ones who walk buyers and sellers through each step of the process.
Who pays the Realtor fees?
Remember, everything is negotiable. However, it is usually the seller who pays the Realtor's commission.
What is a short sale?
A short sale happens when a seller sells a home for less than what they owe on their mortgage. Hence the word short. The proceeds are short of what they owe.
What is a foreclosure?
A foreclosure happens when a home owner defaults on the terms of their mortgage, i.e. isn't making their payments. The lender will then sell the home to recoup the defaulted mortgage.
What is earnest money?
Earnest money is money you put down as a good-faith measure to show you are serious about the purchase of the home.
What happens to the earnest money?
It is held in an escrow account. At closing it is credited towards the buyer's down payment.
What if a home inspection comes back with major repairs?
There are state specific laws on what repairs are required and sometimes there are lender required repairs. Your Realtor can fill you in on what these are, but in general terms the seller is usually responsible for needed repairs.
How long does it take to close?
This varies depending on the terms and contingencies of the contract. Most homes can close between 30 and 45 days, though.
Your particular market circumstances will determine when it is the best time to sell in that area. Your Realtor can provide you with a market analysis and advice on this. However, the best time to sell for you may be determined by your personal needs.
How do you determine what my home is worth?
Realtors use different tools to develop a comparative market analysis. They take information from comparable properties in the area that have sold. Realtors may refer to this as "running comps". These comps, along with your home's specific qualities, and the characteristics of the community will determine what your Realtor suggests you would be able to sell your home for.
Why is the assessed value of my home different from what you told me it is worth?
The market value of your home is what it's worth and the assessed value is what your tax rate is based on. They are done with different information and by different people, so they are rarely the same.
Can I determine how much my home is worth from an internet site?
No. Sites like Trulia and Zillow are wonderful tools, but are rarely exact in market value estimations. They simply do not have enough information on the specifics of YOUR home to be accurate. A Realtor can easily run a market analysis for you at no charge or obligation.
What are seller concessions?
Seller concessions can be thought of as a type of gift to entice a buyer. Sometimes they are in the form of providing certain costs towards closing, inspections, warranties, etc. Remember, everything is negotiable!
What is a contingency?
A contingency simply means the outcome is dependent on a certain factor. For example, some offers are contingent on a buyer being able to obtain financing.
How much will it cost to sell a home?
The two main costs to a seller are generally preparation costs and closing costs. Preparations needed to add desired value and appeal to your home are dependent on your specific home. A Realtor can help you understand what preparation you might need and weigh if it is worth the cost to you overall. Closing costs are the costs paid at closing. These include the selling and buying broker's commission and transfer taxes. They will also sometimes include title insurance and attorney's fees.
How do you plan on marketing my home?
A Realtor should use the best marketing tools they have to broadcast your home. This includes social media, the MLS and it's syndicates, and other Realtors. We live in an age of incredible technology and that is where buyers are looking for your home.
Why isn't anyone looking at my home?
This usually comes down to price. Did you listen to your Realtor about your listing price? Or did you become emotionally attached to the price Zillow said your home was worth? Lowering the listing price can be very difficult for a seller to do, but it can often get the buyer you need in a timely manner.
How do I prepare for showings?
Preparing for showings can feel stressful, but there are a few things to know ahead of time to make this easier for you. You want to make sure your home is very clean and tidy. No clutter! Clear off counters, clear out excess items from your closets and cabinets, and put your children's toys away. You will also want to put away any items that personalize the home. Your Realtor should be able to make the appropriate suggestions.
How do I know what I can afford?
Get pre-qualified. Then get pre-approved. What's the difference? A pre-qualification gives you a rough estimate of what houses you can look at, and your Realtor needs this at a minimum before showing you a home. A pre-approval is a more in-depth look at your credit, income, debt, assets, and situation. Pre-qualification is often seen as the first step in the buying process and pre-approval the second. Your Realtor can make a referral if you don't know where to start. They generally work with multiple mortgage brokers and loan originators.
Should I be pre-approved by a lender before looking at homes?
That is ideal. However, you can generally see homes once you are pre-qualified and working on pre-approval.
Should I buy or continue to rent?
I always say, you are either paying your own mortgage or someone else's. When you buy, you are paying your own and building financial security and equity. Of course, there may be some circumstance where you need to rent, but this should be short-term.
What about rent-to-own deals?
They exist, however, they are very rare and not considered the norm.
Should I buy a home before selling the one I am currently in?
There's no correct answer here. Sometimes buying a home before selling one grants you the needed security of knowing you have a place for you and your family to live. Talk to your Realtor about the pros and cons.
Do I need a Realtor to buy or sell a home?
No. You can buy and sell real estate without a Realtor. It's just in your best interest to use a one. They are legally bound to a fiduciary duty to their clients, meaning they must put the interests of their clients above their own. They are also experts in real estate, the market, negotiating, and attention to detail. They are the ones who walk buyers and sellers through each step of the process.
Who pays the Realtor fees?
Remember, everything is negotiable. However, it is usually the seller who pays the Realtor's commission.
What is a short sale?
A short sale happens when a seller sells a home for less than what they owe on their mortgage. Hence the word short. The proceeds are short of what they owe.
What is a foreclosure?
A foreclosure happens when a home owner defaults on the terms of their mortgage, i.e. isn't making their payments. The lender will then sell the home to recoup the defaulted mortgage.
What is earnest money?
Earnest money is money you put down as a good-faith measure to show you are serious about the purchase of the home.
What happens to the earnest money?
It is held in an escrow account. At closing it is credited towards the buyer's down payment.
What if a home inspection comes back with major repairs?
There are state specific laws on what repairs are required and sometimes there are lender required repairs. Your Realtor can fill you in on what these are, but in general terms the seller is usually responsible for needed repairs.
How long does it take to close?
This varies depending on the terms and contingencies of the contract. Most homes can close between 30 and 45 days, though.
Didn't get your question answered here? Contact me today and ask. You can text, call, or email. I am here to help and I love real estate questions!
Erin Brakke
469-560-5705
erin@exitrnl.com
469-560-5705
erin@exitrnl.com
