Selling Real Estate
Buying Real Estate
Misc. Questions
Why Should I use a Real Estate Agent?
Agents act as more than "sales persons" for your property, but as guides and advisors for both you and prospective buyers. In many cases they bring a wealth of knowledge about the current market situation, as well as how to avoid the mishaps that can occur in real-estate transactions.
With so much information now available to both buyers and sellers, the expertise and communication with your agent is much more important than before. Agents provide an established line of communication between real estate buyers and sellers, combined with the complex knowledge of real estate sales processes.
While it is true that agents are paid for the communication and services they provide, their professional experience allows them a streamlined approach from listing to closing, providing buyers and sellers with the peace of mind that in a frustrating mess of paperwork and process.
How do I decide on a price?
Price is one of the obvious factors that help to sell your property. While appraisals give a concrete justification to a maximum number, appraisals sometimes fail to compensate for the entire market valuen of a property.
A good first step in determining the overally value of your home is to have a discussion with several Real-Estate Agents to develope a general consensus on the market value. Because opinions can vary between different agents, it is important consider highly important to compare these analyses and pull any shared characteristics from them. These can then be weighed against an appraisal, and a final value can be determined.
How do I help improve buyer perceptions of my property?
While each buyer will carry different preconceptions about real estate to your property, there are some commonly accepted notions which tend to either attract or drive customers away. These can be summarized in a list of "Do's and Dont's" when preparing your property to be listed on the market. Instead of your house being known as "The house that smells" or "The house with the barking dog," fix these problems before listing your property on the market. Many of these low cost fixes will go a long way in helping you get top dollar.
Odors
While you may not notice Fluffy's aroma after fifteen years, many others will upon entering your home. Those houses which smell of cigarette, mildew, or pet odors tend to dispel customers quickly. To combat this, have someone who does not live in your home arrive and give you an honest opinion (and don't get mad at them if they tell you the truth). Lastly, eradicate the odors which plague your home. This will provide prospective buyers with a crisp, fresh atmosphere-not a house that's masked by perfumes.
Pets that meet buyers in the driveway
Try and make reservations for Rover to be elsewhere during a showing. He may be friendly when you are around, but his barking at random buyers will create an unwelcome atmosphere.
Dirty Bathrooms
Grime and dirt in your bathrooms are an instant turnoff. Scrub, paint, and replace shower curtains, rugs and towels until they shine. Bathrooms are the number one representation of the interior condition of the house to buyers, and if they see a dirty bathroom, "dirty" is the impression they will be left with. Dimly Lit Rooms
Dark rooms and homes are turnoffs to most buyers. Potential fixes include:
- Replace dim light fixtures
- Install additional fixtures
- Install (quality) skylights
- Remove or replace heavy drapes
- Repaint dark rooms in brighter colors
- Trim trees and bushes that shadow the house
Homes with Busy walls
Houses with lots of busy wallpaper with turn off most buyers, and even those who do enjoy the use of wallpaper will likely not appreciate your specific tastes. Such a matter of taste will be considered personal, and they'll want to do it themselves. Don't limit the number of prospective buyers by leaving things in your home that reflect a speficic taste they may not like. Cream paint may be bland, but it allows for a level of customization that most buyers will appreciate.
Damp Basements
Regardless of the condition of the foudation of your home, a damp basement implies that it leaks, even when it truly doesn't. If you have leaks, then fix them. If not, look for drainage issues around the exterior of your home. If water is pooling near the foundation, look to see where downspouts or underground drains might be clogged. A trip outside your home the next time it rains will tell you.
Bugs
Spiders, Roaches, or any kind of insect don't belong in the house. Insects are a concrete turnoff for which there is one solution: Get rid of them.
Curb Appeal
Start looking at your house as a buyer would during a drive-by. Many buyers will refuse to see a house with an unkempt yard, sagging doors and peeling paint. If your house doens't look good from the street, chances are buyers won't take the time to take a look at the inside.
Gutters and Roofs with Plants Growing on Them
Some home-owners simply never clean them out, and it makes buyers wonder what other
kinds of maintenance have been avoided for far too long.
Sellers Who Won't Leave for Showings
Leave the house during a showing. Prospective buyers will feel awkward about opening your closets and bathrooms. Even if you are selling by owner, give them some space and let them linger for as long as they want, don't hover.
How long will it take for my property to sell?
There are three main variables which impact on how long your home remains on the market
- Price of the House
- Condition of the House
- Current Market Conditions
Sellers can impact upon the first two of these variables. A well-maintained home with a
realistically determined price will sell much more quickly, even in a slow market. Your Real
Estate Agent will be able to tell you more about the current market condtions in relation to
these other variables.
What are the essential steps in getting my property ready for the market?
As a seller, you have a responsibility to maintain steady communication with your agent to resolve any issues that arise with your properties. Appraisals, inspections and surveys all must be done according to a schedule to guarantee that numerous delays do not result at closing time.
Sellers should also speak to a loan officer or mortgage broker early in the listing process to determine that sufficient finances will be available to purchase their next property. A call to your current lender to determine your mortgage payoff will be needed to determine your proceeds after the sale of your home. Any other costs dealing specifically with the sale of your home can be detailed by contacting your Real Estate Agent. They deal with these costs on a regular basis and will be able to give you a very close estimate of your costs as a seller.
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As a buyer, where do I start?
If you are completely unfamiliar with the purchasing of real estate, a conversation with one or several Real Estate Agents would be wise. This discussion should not be concerning whether they should represent you, but should give you an overview of the process, as well as the current market situation in your area. Any information you give them can be helpful in determining what they can provide you versus what you are looking for, but it is up to you how much you provide them with.
How do Bank Loan Officers and Mortgage Brokers differ?
Bank Loan Officers are representative of one lender, and work to provide you with a product that suits your individual needs. Should your application and personal credit be approved, the lender moves to the property purchase transaction.
Mortgage brokers are considered more as freelance agents, as the provide links between dozens, sometimes hundreds of lenders and an invidual. They are paid a fee to bring these two parties together. They analyze a person's credit to determine which lender is best for that individual.
Sometimes there are few differences from the individual perspectives when considering local lenders. Some mortgage brokers choose out of town lenders who may not fully comprehend local situations and market conditions, and therefore may cause delays in loan processing and closing. Local bank officers, on the other hand, will likely have a better understanding of local situations, and may process the transaction faster than an out of town lender.
Many times, the decision between these two is made solely on the better monetary deal, but a time frame for the transaction should also be taken under consideration. For poor credit situations, mortgage brokers will often be able to find lenders who will approve a loan previously denied by a local banking lender. Also for unique or commercial properties, a more applicable product might be found by a mortgage broker.
In summary, an individual's situation should be the key variable in determining which lender to pursue, but you should be no means limit your search and which lenders you speak to at the start.
How do Pre-Qualification, Pre-Approval and Loan Commitment differ?
Any individual can be pre-qualified by a lender, by a Real Estate Agent, or by themselves. This simply means that someone has taken a quick look at your finances and plugged them into a debt-to-income ratio formula. This type of qualification gives a very general and dirty look at what an individual can afford. It can give an interest rate and help to determine monthly payments.
Pre-approval designates when a lender has taken a look at both your credit report and your income. They then tell you the maximum loan they will give you, and what programs you will qualify for. An interest rate might be locked in at this point. After pre-approval, an individual can have confidence about their buying power, but the credit report will have to be checked again before closing, and the home itself must also be approved.
Loan commitment follows when the lender approves both the house and the individual's credit. Loan commitment is given when the bank is sure that it will lend to an individual.
Where do I get the scoop on real estate in my area?
With the introduction of the inteternet to the real estate market, buyers and sellers now have a much more extensive line of information available to them. With this expansion, Real Estate Agents have also exponentially expanded the information systems available to them in order to keep track of market happenings. Using what is commonly known as a Multiple Listing Service, agents can provide a glimpse of your local marketplace with great efficiency.
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What are all these acronymns on real estate ads?
In order to avoid sometimes high advertising costs, sellers and agents use a form of shorthand, of whose madness there is a method. Here is a key that can help you decipher the listings:
- assum. fin. -- Assumable financing.
- dk -- Deck.
- gar -- Garage (garden is usually abbreviated "gard").
- expansion pot'l -- May be extra space on the lot, or possibly vertical potential for a top floor or room addition. Verify actual potential by checking local zoning restrictions prior to purchase.
- fab pentrm -- Fabulous pentroom, a room on top, underneath the roof, that sometimes has views.
- FDR -- Formal dining room.
- frplc, fplc, FP -- Fireplace.
- grmet kit -- Gourmet kitchen.
- HDW, HWF, Hdwd -- Hardwood floors.
- hi ceils -- High ceilings.
- In-law potential -- Potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units. So be sure the conversation begins on a legal level.
- large E-2 plan -- This is one of several floor plans available in a specific building.
- lsd pkg. -- Leased parking area, may come with an additional cost.
- lo dues -- Find out just how low these homeowner's dues are, and in comparison to what?
- nr bst schls -- Near the best schools.
- pvt -- Private.
- pwdr rm -- Powder room, or half-bath.
- upr- Upper floor.
- vw, vu, vws, vus -- View(s).
How do I avoid elongated closings and delays?
Any real estate transaction can become frustrating if the parties involved fall behind in the necessary tasks on the road to selling/buying a property. A close contact with both your lending institution and Real Estate Agent are essential in meeting the final closing date. Refer to your lender to ask if they provide online or faxed loan updates. If not, maintain a constant contact to be sure that both you and your lender are continually progressing towards your closing date.
As a seller, you should maintain a high level of involvement in the sale of your property. Attend all the inspections of your property, and keep in contact with your agent to determine what processes have yet to be completed in the following areas:
- Title Searches (and other legal work).
- Utilities Transfers/Stoppage
- Appraisals, Inspections and Needed Repairs
Who does the Real Estate Agent Represent?
Real Esate Agents are found in different roles as the represent buyers and sellers respectively. These varying situations are as follows:
Seller's Agents provide services as a listing broker for an individual. They owe to the seller an undivided attention and loyalty, following the seller's instruction in helping them to obtain the best price and terms for the said client, the seller. The Seller's Agent may provide marketing services for the seller's property.
Buyer's Agents work similarly for those individuals seeking to buy a property, seeking out the best price and terms for their said client, the buyer. The Buyer's Agent may also assist the buyer in locating property based on a specific want or need.
Limited Agents (also called Disclosed Dual-Agents) may work for both buyer and seller on the same property as long as the agent discloses his dual representation (Undisclosed dual agency is illegal). The agent then has a responsiblity to mediate a deal between the individuals in an honest fashion.
Can I act as my own agent?
While it is a legal possibilty to do a sale by owner in the real estate market, many individuals do not have the necessary knowledge or networking capabilities to transition a real estate transaction smoothly. The experience granted a Real Estate Agent gives them an edge over any individual who attempts to sell their home "For Sale By Owner."
Also, such sellers are limited by the buyers' fears that a FSBO arrangement does not protect them fully in the event of a legal mishap, which is sometimes a legitimate concern. Even in such a case, many buyers will be represented by a Buyer's Agent, who will expect some form of a comission for having brought the buyer's attention to an individual seller's property. Given such a situation, combined with less exposure, it would be to the great advantage of an inexperienced seller to allow a Real Estate Agent to represent them.
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