Home Buyer FAQs
It is still a great idea to consider a Realtor even if searching the internet for a home is easy?
A lot of agents bring value to the whole process of searching. They can analyze all the data, answer any
question, share their professional knowledge, handle all the paperwork and do all the errands needed in any real estate transaction.
Is saving for the final dream home better than starting with a cheaper starter home?
Saving for the unique dream home may take a long time. On the other hand, a lot of ideal mortgage interest
rates have been swarming the market. Having a low rate makes the home more affordable and moves most buyers to decide to get a home.
Price appreciation has also been strong, creating solid gains in communities across the country. Buying a starting home today can
potentially build equity that can help purchase a bigger, more ideal home in the future.
How much can I afford?
When buying a home, a common rule to follow is that multiplying your annual salary by two and a half times
gives you how much home you can afford. We suggest using an online calculator that can help in figuring out how much can be borrowed
or by Contacting one of our Mortgage Professionals.
What is the first thing to do when buying a home?
Being psychologically ready and financially ready are the first things to do when buying a home. Make sure
to ask these questions first:
- Is my income stable enough?
- Do I owe less than what I make?
- Can I afford to pay the down payment and closing costs?
- Am I on the right track to improve the bad credit that I already have?
Homes need regular care and attention. Make sure to also be prepared for any extra costs like repairs and upkeep. When the truthful
answer “yes” comes to mind, then being a couple of steps ahead will be a breeze to owning a home.
What is it that my agent shouldn’t know?
You shouldn’t share the most money you can pay for a home. Telling a Realtor your top dollar will give a
lesser chance of trying to negotiate the least price available. While the real estate agent spends time showing the home and sharing
information, the agent will still be working for the seller who pays each and every agent that participates in getting the purchasing
transaction finished. Commission and percentage of homes are the Seller’s way of paying the agent. One way of circumventing this is by
hiring a Buyer’s agent or a Buyer’s broker.
What does a buyer’s agent do?
The buyer’s agent’s job is to solely represent the buyer. The agent works to look after the Buyer’s interests in
the transaction and handles negotiations with the Seller's agent.
How do you know how much a home is worth?
The quick answer is a home is worth whatever amount is paid for it. Other factors only provide additional estimates
of its value. Fair market value is only achieved when both buyer and seller agree on a proposed price. For example, in a seller’s market when
the supply of homes for sale is low but the demand for housing is high, homes can typically sell for much more than the asking price as bidding
between buyers ensue.
Are there standard ways to find out how much a property is worth?
The two most common ways are through a comparative market analysis and an appraisal.
By reviewing similar homes that have sold near the neighborhood along with current listed homes for sale, a Realtor can give a comparative market
analysis which informally estimates the value of a home based on the sales prices of those properties.
What’s the difference between sales price and list price?
The list price is the asking price that a Seller estimates their home's are worth. Sellers can either use higher or lower
amounts than similarly sized homes in the neighborhood. Comparing homes recently sold in the area is a good way to determine if the asking price is
fair or too low, or too high. The sales price is the amount the home actually sells for.
What’s the difference between market value and appraised value?
Market value is the price that a buyer and seller will agree on after ascertaining a “meeting of minds.” This could vary
depending on any given point in time. Appraised value is the estimation determined by a trained and certified appraiser through the comparison
of recent sales of similar homes, the condition of the property plus several more factors.
Is it alright to use a Realtor to buy a newly constructed home?
Yes, in fact, a couple of builders use agents to search for potential buyers. Using a buyer’s agent can assist in
negotiating the cost and the improvements of new home. Agents are especially valuable when directing the progress of a newly constructed
homes that match the needs and necessities. Realtors also search for trustworthy builders who are financially sound and who respond quickly
to the buyer’s concerns. Builders typically require the agent to be at the site for the buyer’s first visit to a model home. This is a
reasonable procedure that allows the agent to get paid should the buyer decides to purchase. On the other hand, if the buyer finds a new
home, visits it and purchases without an agent, the builder has the right to refuse the commission pay even if the agent unexpectedly became
involved in the process.
What is the best method when searching for a Realtor?
To start off, Contact any acquaintances or any associates. Family, friends, co-workers or even neighbors who bought a
home recently will be
able to give tips and advice on their agent. From time to time, Realtors that are Contacted can refer the buyer to a different agent who is
more familiar with the buyers and sellers in the community. When three names are referred, have a meeting with each agent and consult them.
Ask their knowledge of the neighborhood, their professional experience and commitment. Remember also that some agents do not work full time
for other work either during nights or on the weekends.
What can be expected of a professional Realtor?
Capability, efficiency and good moral values can be expected of licensed Realtors. In accordance to the All America’s
Real Estate book, competent agents give the extra time and effort to qualify the buyers and show them a home within their price range. They
strategically plan the route and they pre-inspect the properties. Also, the agents have detailed knowledge on any financing options, the latest
updated on home trends, and they share potential buyer’s information on any local housing market or house transaction. Reputable agents strictly
follow the code of ethics where they avoid any high pressured tactics, any home that does not fit the needs and they also inform any problems
regarding the property. Realtors should always show respect to other agents and real estate firms, and never speak bad of them.
Are home buyers guarded against any home buying/renting discrimination?
According to the Law, Realtors cannot discriminate based on race, color, religion, gender, disability, family status
or national origin. They are also not allowed to imply any directives from the seller to discriminate. If there is any suspicion of
discrimination, a complaint can be filed the nearest Local Department of Housing and Urban Development (HUD) office. Complaints can also
be filed by calling the HUD’s toll-free number, 1-800-669-9777 or can be filed by visiting www.hud.gov/complaints/housediscrim.cfm.
What are the benefits of possessing a home?
There are a lot of advantages to owning a home. The most alluring advantage is that you own the home which gives you
total control of the living space as compared to having a landlord with rules to follow. Other benefits result from tax savings and capital
accumulation as the property appreciates in price over time. Equity can also be used to help children go to college, to buy a second home,
or to make home enhancements. Any mortgage interest that was paid on a California home loan is tax deductible, as is the local property tax.
If the fixed-rate home mortgage loan is available, this will help you calculate the mortgage monthly payment and can give you a chance to
invest more on other things.
How do I know if I should add space to my home or just buy a new house?
A couple of things to consider when buying in a home are the costs, the needs of each person, and what features can
add value in the future. Another important thing to consider here is the emotional attachment to the current home.