FAQ
Your Questions Answered
BUYING OR SELLING A HOME CAN SPARK ENDLESS QUESTIONS AND UNCERTAINTY
Here are some frequently asked questions we have put together. If you have any other questions, not listed below, please don’t hesitate to contact us!
FSBO
WHAT DOES FSBO MEAN?
> “FOR SALE BY OWNER” This is a property being sold without a real estate agent involved.
CLOSING COSTS
WHAT ARE CLOSING COSTS?
> Closing costs are incurred by buyers and sellers in transferring ownership of property. For example: prorated taxes, homeowners insurance, HOA dues or purchasing a title policy.
MARKET VARIATIONS
WHAT IS THE BEST TIME OF THE YEAR TO PUT MY HOME ON THE MARKET?
> The best time to sell your home is determined by supply and demand, however seasonal and economic factors also come into play. We typically see out of town relocation in January and May. End of February through June are our busiest months with July and August slower due to family vacations, and back to school. Fall can be a beautiful time of the year but does taper off as the holidays approach.
AGENT TYPES
WHAT IS THE DIFFERENCE BETWEEN A “LISTING AGENT” AND A “BUYERS AGENT” (ALSO CALLED SELLING AGENT)
> A listing agent represents the best interests of the seller. They have been hired to price and market the home accordingly.
> A buyers agent is working exclusively for a buyer. They have been hired to show properties, advise on pricing, and negotiate the best terms for their client.
CLOSING TIME
HOW LONG WITH IT TAKE ME TO CLOSE ON A HOME?
> If you are paying cash, you may close in a week to two weeks. As for a mortgage, most lenders advise 30-45 day closings.
> Closing costs are incurred by buyers and sellers in transferring ownership of property. For example: prorated taxes, homeowners insurance, HOA dues or purchasing a title policy.
PRICING
WHAT IF I WANT TO PRICE MY HOME HIGHER?
> Real estate markets are local and vary from state to state. Regardless of the market, pricing a property correctly is key to selling your home. When you choose to price your home higher, numerous issues arise:
Longer days on market create a negative impression and stigma on the property
You lose market interest and qualified buyers
Your home will help sell your competition
You could incur unnecessary extra expenses including mortgage payments, taxes, interest, maintenance and utilities.
A buyer may face appraisal and financing problems due to inflated price.
You may have to accept less money
COMPENSATION
WHO COMPENSATES THE REALTOR?
> Real estate compensation is typically paid by the seller. Compensation is often shared between listing and selling agents when the transaction has closed.
PRE-APPROVAL VS PRE-QUALIFICATION
WHAT IS THE DIFFERENCE BETWEEN A PRE-APPROVAL AND A PRE-QUALIFICATION LETTER?
> If you’re prequalified it means that you may get a loan; pending the information you have provided to the bank is accurate. A pre-qualification letter means the information has not been verified therefore not as strong as a pre-approval letter.
> A pre-approval letter means the purchaser has undergone a credit review along with tax returns, verification of employment and finances. Sellers prefer to work with buyers who are pre-approved to avoid future complications.
> Closing costs are incurred by buyers and sellers in transferring ownership of property. For example: prorated taxes, homeowners insurance, HOA dues or purchasing a title policy.
DEPRECIATION
CAN A PROPERTY DEPRECIATE IN VALUE?
> Generally speaking real property doesn’t depreciate over time which is why real estate is such a great investment. That said, you must consider location, community and future development as that will effect the value.
YOUR AGENT
WHY SHOULD I USE A REAL ESTATE AGENT?
> A real estate agent may act on your behalf, providing you advice and guidance when buying or selling a home. Due to the complexities of the ever-changing market, information is not always accurate. Every client and situation is unique, and a real estate agent can properly assist you in navigating a sale or purchase.
