Q: What is the process of buying a home?
A: The process is as follows:
Q: What happens if I find my dream home & it just happens to be a FSBO?
A: First, ask yourself if you are prepared to make this deal without the help of someone who is experienced in dealing with contracts, disclosures, & other legalities. Even if the owners are experienced in the selling process, is there any question where their loyalties lie? It is wise to secure a professional to help you through the buying process. And who better to hire than a Realtor ? If you are already working with one, have them contact the seller.
Q: What is Title Insurance?
A: A policy that protects against any defects in the title that may have been overlooked during the title search. For example, a contractor who worked on the house may not have been paid for his work & then places a lien on the house.
Q: What is an adjustable-rate mortgage?
A: Unlike fixed-rate loans, adjustable-rate mortgages(ARM’s) are mortgages that have interest rates that change during the life of the loan. In most cases, ARM’s offer a starting low interest rate that can be 3 or more percentage points lower than a fixed rate. Professionals often refer to the ARM’s beginning low interest rate as a “teaser” rate, offering a clue to homebuyers that the interest rates are destined to go up. Variations of ARM’s are available.
Q: How do I prepare my home for showings?
A: Start with a thorough cleaning. Clean carpets (professional, if necessary) if it’s been awhile since the last cleaning. Make repairs, especially ones that are likely to be found in an inspection anyway. Repaint, inside & out, especially if colors date the home. Unclutter the home, in other words, remove personal items, such as collectibles, floral arrangements, antiques, most of the books & family photos, etc. The object is to “depersonalize” the home. Other examples of this include, taking everything off of the refrigerator & stripping the kids’ rooms of posters & baseball trophies. Clear high traffic areas of excess furnishings. Highlight the key features in every room—such as fireplaces or French doors—by making sure they’re not obscured by plants or furnishings. Partially clear off built-in shelves, cabinets & countertops. Removing clutter is also a good way to get a head start on packing.
Q: What is the MLS?
A: The letters MLS stand for Multiple Listing Service. It can be defined as a big property database or “warehouse”. When a property becomes available for sale, information about it, goes into the MLS. When it’s sold, the information, along with details of the sale(selling price, etc.) is saved for future use. For example, determining the fair market value of properties that become available for sale, in the future.
Q: Why should I hire a professional to sell my home?
A: First & foremost, determining the value of your home. A Realtor can complete a Market Analysis (a report based on information found on the MLS). Next, a Realtor can help you understand & complete the complex paperwork involved in the sale. Documents such as, the listing, the offer to purchase, the appraisal, the home inspection, and so on. The Realtor becomes the intermediary, the first point of contact for the seller to walk them through the paperwork. Again, because the Realtor has access to the MLS, it gives the seller’s property tremendous exposure locally, statewide & nationally. A Realtor can also give sellers advice, or tips on home repairs and ideas that would make their home more attractive for showings.
Q: What are closing costs?
A: Closing costs are the fees for services, taxes or special interest charges that surround the purchase of a home. They include upfront loan points, title insurance, escrow or closing day charges, document fees, prepaid interest, & property taxes. Unless these charges are rolled into the loan, they must be paid when the home is closed.