Q. Why use a REALTOR®?
A. For the same reasons you use other professionals. Would you perform your own root canal? Spay you own dog? Creating an alliance with a REALTOR® offers you a plethora of benefits, the biggest being knowledgeable specialized advice. Before making important decisions like an appropriate offer to make on your next property, make sure you are seeking the counsel of a seasoned expert. Few other transactions in your lifetime will have as significant of an impact on your family's financial health and future.
Q. When should I start looking at homes?
A. When you are ready to buy. The real estate market is constantly changing. The worst disservice you can do to yourself is to jump the gun. It must be a Murphy’s Law of real estate: the perfect house always seems to come around when you are not yet ready, then every house after that just doesn’t stack up. Get your finances in order and get yourself pre-approved for a loan. If you have to sell in order to buy, get your current home on the market with a REALTOR® , then consult with your agent when the time is appropriate to start looking.
Q. What questions should I ask about each home?
A. When you are looking with your REALTOR®, you should be looking at homes that you can afford, are in the area you desire, and have features or square footage that you need. Save the questions for the properties that you are seriously interested in buying. Ask the questions that affect your buying decision and the price you want to offer. For example; if you are shopping for a home built 70 years ago, and the house has central heat and air, ask how many of the other homes in the market feature the same upgrade.
Q. Can I save more money by purchasing a “For Sale By Owner” home?
A. Typically no. The typical “For Sale By Owner” prices their home based on their desired price, not based on market conditions. The REALTOR® can help you assess if the “For Sale By Owner” is the value that you are looking for.
Q. How can I find out what homes are selling for in a given neighborhood?
A. When you work with a REALTOR®, he / she can show you what the neighborhood values are, talk about recent sales, and the feel of the market for specific trends.
Q. Is an older home as good a value as a new home?
A. The value is determined between you and your REALTOR®. If your price range offers the chance to buy new or old, then discuss the safety and energy benefits you get with new. Have you priced trees lately? Many older homes have beautiful, mature trees that would be cost prohibitive to add to new construction. In some areas of town, the older homes have added value for their architectural significance and limited inventory.
Q. What inspections are required, and should I be present during the inspections?
A. None are required. There is no law that requires you to inspect, but….if you’re getting a loan, ask your lender if you need a WDI Report ( Wood Destroying Insect Report). Great, you have just learned that you can save some bucks. Think again. Hiring an independent inspector can save you more money than the report costs. There is not one “perfect” home out there, including new construction. If a seller refuses to let you inspect, then refuse to buy. It’s not worth the risk. By being present at your inspection, you are assured that the inspector truly looked at the items mentioned on the report. You are also there to see with your own eyes what is the condition of the property.
Q. What is an appraisal and when should I get one?
A. A USPAP Appraisal is an opinion of market value based on sales history and market trends. Your lender will require one. Typically you pay for this up front to your lender. If you want a copy, be sure and ask your lender.
Q. What is a mortgage?
A. It means to buy a property with your cash plus an investor’s. What are the benefits of different kinds of mortgages? Lenders offer numerous choices. Talk to your lender about your financial needs, short term and long term needs. For example, if you know you will be moving in 2 years, look at the 2 year Adjustable Rate Mortgage. If you don’t want to pay a mortgage insurance premium, ask your REALTOR® for advice about the 80/10/10 loan.