Buyers Questions:

Q - Why is it important I choose a Realtor to work as my buyers agent and represent me?
A - A Realtor that works with you as your buyer’s agent will look out for your best interest.  They will learn exactly what you are looking for, they will learn your likes and dislikes.  After learning your likes and dislikes they can reduce the amount of time and effort it takes to look for a home.  A good buyers agent has been in almost every house that is for sale and can tell you about the house to determine if its worth your time to look at.  Buying a home is an elimination process and then a choosing process.  First you eliminate everything that doesn’t work for you then you choose the home that is best for you in terms of price, location, size and quality.  A buyer’s agent makes this all happen smoothly.
   
Q - When do I purchase my home owners insurance?
A - Its good to get your insurance binder a week or so before closing.  You must pay for a full year in advance.
   
Q -

Why must I get pre-approved for a mortgage before I start looking at houses?
A -

Sellers expect their home to only be shown to qualified buyers.  Being qualified narrows down the range of homes you are looking at limiting wasted time, it shows you are a serious buyer, and lets you know where you stand.  If you are qualified up to $100,000 and after looking at your finances you realize you are only comfortable spending $85,000 you might search for homes in the $70,000- $95,000 range.  Getting qualified will allow you to figure out the type of loan that works best for you.  Qualifying will also give you a rough idea what money will be required from you.  Most importantly getting qualified will let you know if there is anything wrong with your credit that needs to be fixed, and the sooner you know the faster it can be resolved.
   
Q - What will are my closing costs?
A - Closing costs are your percentage down on the home, Lawyer fees, Recording costs, and Mortgage Tax. You should have already bought your homeowners insurance before closing. You will have a good faith estimate from your banker, however I suggest having an additional $1000 or more in reserves incase the numbers come in high. Your Lawyer will tell you the final numbers and what to bring to closing.
   

Sellers Questions:

Q - What will a Realtor do to sell my home?
A - A realtor has a large variety of tools to use to sell your home.  Including the Internet, Print and the MLS.  We market your home to the most possible buyers.  Most importantly we are already working with the buyers that will be purchasing your home.  We know their needs and wants and when that right home becomes available we make sure they know about it.  When you hire a Realtor you are actually hiring all of us.  You want your property to be available not only to all of my clients, but the clients of everyone in my office and all the other offices in the area.
   
Q - What will I need in order to sell my house?
A - It is a good idea to get out all of your paperwork associated with your home.  Find your Deed, Abstract, and Survey map.  Also have your last mortgage statement to know how much is owed on your home.
   
Q - What are my closing costs?
A - Lawyer, Survey, any Water or Septic tests, recording costs, transfer tax, mortgage discharge, updating the abstract, real estate commission.
   
Q - What can I do in order for my home to show as best that is possible?
A - There are several things you can do to prepare your house to make it more attractive to prospective buyers. Please refer to my Home Staging Tips for suggestions and ideas.
   

General Questions:

Q - Who Pays for the Survey?
A - Typically the Seller pays for the survey, however if the last survey is recent enough it may just have to be updated rather than a whole new survey.
   
Q - Why is the septic inspected?
A - The Septic is inspected to make sure the home passes health code regulations and is in good working order.  A bad Septic can cost a few thousand dollars all the way up to $40,000 depending on what needs to repaired or replaced or if a whole new system is needed.
   
Q - Who pays for the Septic inspection?
A - The seller pays to have the septic pumped and inspected.
   
Q - Who and how does the Realtor get paid?
A - The person selling their home pays the realtor, it is a percentage of the amount that the home sells for.  A buyer does not pay the Realtor.
   
Q - How much will a lawyer cost me?
A - Rates vary and increase with the price on the home. Lawyers rates vary but normally range from $500- $1500.  As a Buyer you can save money buy using the same lawyer your bank is using since they are already working on your file.
   
Q - What is an Appraisal for and how is it different than an Assessment?
A - An appraisal is done by a licensed appraiser and is to determine the fair market value of the home.  It is done to insure the bank that the home is worth what it is being sold for and what they are lending.  The assessment is what the taxman says your house is worth to figure out how much your property taxes will be.
   
Q - What are Sellers Concessions and how can they Help me?
A - Basically seller concessions are financing some of your closing costs.  If a seller is willing to accept $94,000 for his house and it’s worth $105,000.  A Buyer could offer the seller $100,000 with 6% Seller concessions.  The Buyer Finances the $100,000, the Seller keeps his $94,000 and gives back to the buyer $6000 for his closing costs.  This allows the buyer to purchase the property with less money out of pocket, if it was going to cost the buyer $8000 to get the home now it will only cost him $2000.  It helps the seller because he will still net the same amount and it makes his home easier to sell.