Buying & Selling Tips

Below are some Frequently Asked Questions (FAQ) on buying and selling your home.
We hope you find this information useful. Click on one of the links below to go
to the appropriate section.

Buying Tips

Selling Tips

Buying/Selling Resources

Buying a Home:

"What are my needs, for my new home?"

A good way to start is to write down the reasons that you have to buy a new or existing home. You might ask yourself, "Why am I buying a home, and what do I need to get out of the entire
process?"

Your agent will identify all of the variables within your individual goals, and apply his or her expert knowledge to set a realistic time frame for the process to proceed. The following are three steps to follow:

• First, you should write down why you are looking for a new home. For example, are you currently renting and would like to have a home where you can begin building equity? Maybe you recently married and have outgrown your current residence. Or, maybe you have just gotten a promotion, which requires you to move to a new city. These factors will all have a bearing on how you approach your home search.
• Second, establish a time frame that you would like to stay within for buying your home. Depending on your reasons for wanting a new home and the current state of the market in the area you are looking to buy, you should be able to come up with a rough guideline, which you can finalize at a later time.
• Last, you most likely have a mental picture of what you would like your house to look like and what features it should have. It's very important to write these ideas down to avoid any ambiguity later in your home search. You should make at least two lists: one should be a list describing your dream home and the other should list the features of the home that are an absolute must have in order to buy it. In a perfect world, your new home would fulfill both lists 100 percent. It is more likely that you will end up blending the two lists into a schedule of prioritized items as you progress through the buying process.

"What is the difference between being pre-qualified and pre-approved for a mortgage?"

You will need to know in what price range to look. There are two ways to go about this. You can get pre-qualified or pre-approved for a mortgage.
Either way, you will need to contact a mortgage company. There are some key differences between pre-qualification and pre-approval for a loan that you need to be aware of.

• Loan pre-qualification is a simple process. It takes into account very basic information regarding your financial status and gives you an amount for which you may qualify. This can be done strictly on a verbal level or electronically over the Internet. The pre-qualified amount is based solely on the information you provide. In most markets, pre-qualified buyers usually hold little clout compared to pre-approved buyers due to the fact that the information given during the prequalification process is not thoroughly investigated and therefore may be unreliable. Where a pre-approved buyer is actually approved for a loan of a certain amount, a pre-qualified buyer is only told that they might be approved for a certain amount.
• Pre-approval is a much more involved process. The lender will take all pertinent information regarding your finances and perform an extensive check on your current financial status. This will ultimately give you the exact amount that you will be eligible for (depending on what type of loan you decide to go with). Being pre-approved lets the seller know that you have gone through an extensive financial background check and there should be no unexpected obstacles to buying the home. You can see how being pre-approved would be more attractive to a seller than just being pre-qualified.

"How do I find my home?"

There are a few ways to go about this. At this point you will have a good idea of what you can afford and the type of area you will want to invest in. Taking that information into consideration, you are ready to embark on your property search. Possibly the most efficient way to find properties is to allow your real estate agent to keep you up-to-date on available properties that meet your criteria, and then allow your agent to screen these properties for you. When your agent presents you with a property that interests you, he or she can arrange for you to tour the property at your convenience.

You can also access local publications highlighting available real estate in the area; contact and visit the local Chamber of Commerce, look on the Internet; and even drive through areas that you feel would meet your needs. Driving around a particular area looking for properties for sale is good because you can actually see the property. However it can be very time consuming and it is a "hit or miss" process.

"How do I make an offer to buy?"

Your real estate agent will consult with you and advise you on how to create an offer that will have the best chance of being accepted. He or she will take into account the recent sales of homes in that neighborhood which are similar in size, quality, conveniences, and amenities, what are you willing to pay for the home.

Your agent will ensure that you have everything down in written form... no verbal agreements. After consulting with your agent to put your offer in a written contract that meets all the legal requirements according to local and national guidelines, your agent will present the seller with a written document detailing what needs to be done by both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature. Your agent will also ensure your financial position as the buyer by including any necessary contingencies, which would protect you if a particular requirement were not met. Once the seller accepts it, it may be too late to make any changes.

The contract, though not limited to this list, should include the following:

• A legal description of the property
• The offering price
• The down payment
• Financing arrangements
• A list of fees and who will pay them
• Amount of the deposit
• Inspection rights and possible repair allowances
• The method of conveying the title and who will handle the closing
• A list of appliances and furnishings which will stay with the home
• The settlement date
• Any relevant contingencies

Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away. After all, no one has ever said at their closing, "I wish I had asked fewer questions."

"How do I negotiate?"

Once your offer is made, you and your real estate agent may need to enter some negotiation in order to reach an agreement. Keep in mind that almost everything is negotiable when you are buying a house. This can give you a great deal of leverage in the buying process -- that is, if you have adequate information and you use it in an appropriate manner. Your agent will have the market knowledge and negotiating expertise necessary to make sure that your offer is accepted at the best price and terms possible for you.

Some of the items that you may have to negotiate are:

• The price
• Financing
• Closing costs
• Repairs that need to be done
• Appliances and fixtures
• Landscaping
• Painting
• Occupancy time frame

"What is the closing process on my home?"

PRE-CLOSE PREPARATION: As the closing date draws near, your real estate agent will contact the escrow company or closing attorney and your lender to make sure that all the necessary documents are being prepared, and that they are complete, accurate, and delivered in a timely manner. Your agent will also need to confirm that the documents will be delivered to the correct location so they can be reviewed and that they will be ready for the appropriate closing date.

At this point, you and your agent should find out what form of payment you will need to bring to the closing for any unpaid fees. Make sure that your payment is made out to the appropriate party.

Ensuring that each closing document is ready and available will enable you to have a quick, easy closing.

CLOSING ON A HOME: "Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. It is a formal meeting in which most parties involved in the buying/selling process will attend. Closing procedures are usually held at the title company's office or lawyer's office. Your closing officer coordinates the document signing and the collection and disbursement of funds. Your agent will be present at your closing to read the documents on your behalf, answer any questions, or help to resolve any last minute or unexpected details that may come up.

In order for the closing to go smoothly, each party involved should bring the necessary documentation and be prepared to pay any related fees (closing costs). There may be more than one form of acceptable payment for your closing costs, so ask the closing officer which form of payment will be required and to whom it should be made out. Closing costs will generally total an amount equal to 2 to 3 percent of the total loan value, not including down payment and the buyer's escrow account.

Sellers sometimes pay for a portion or all of the closing costs, depending on local market conditions, terms of the purchase contract, and the seller's cash and timing considerations. Any such concessions should be acknowledged in writing. Most lenders will allow a credit from the seller to the buyer for the non-recurring closing costs. However, they usually won't allow a credit that reduces the amount of the buyer's down payment or any of the buyer's recurring costs, such as expenses for fire insurance premiums, PMI, or property taxes.

POST-CLOSE ACTIVITY: Now that you have taken ownership of the property you will need to have your local services such as electricity, cable, and phone set up. Your real estate agent can help you coordinate the set-up of these local services. No doubt your agent already knows who the local vendors are for such services as water and electricity, as well as others, so he or she can help provide you with a list of contacts.
Also, you should already be aware of the expenses that are typically associated with owning a home. Neighborhood Association fees, landscaping costs, and annual taxes should be budgeted for throughout the year.

Selling Your Home:

"What are my needs?"

A good way to start is to write down the reasons that you have to sell your current home. You might ask yourself, "Why am I selling my home, and what do I need to get out of the entire process?"

Explore your short and long-term goals and decide how selling your house fits into those goals. Your agent will identify all of the variables within your individual goals, and apply his or her expert knowledge to set a realistic time frame for the process to proceed.

"How much should I sell my home for?"

Determining the price to sell your home can be a difficult task. Often, it can be hard for you, as a seller, to also maintain objectivity, so remember to be reasonable about the price you set. You will always be better off setting a fair market value price than setting your price high expecting that someone will come along and be willing to pay it. You should consult with your real estate agent to determine the best possible selling price of your home. You will need to take into account the state of the local market, the condition of your home, and sales of comparable homes in your neighborhood. Your agent will create a comparative market analysis by taking into consideration the type of market you are in and recent sales of comparable properties. He or she will then guide you to the best fair market price that will help sell your home.

"What do I need to do to get ready to sell my home?"

First impressions are very important and you only get to make one. How your home looks will have an immense impact on how quickly it sells and whether or not you get full market value for it. Your real estate agent, who is interacting in the marketplace every day, can assist you in approaching your home from the buyer's standpoint. What needs to be changed to make a good first impression? This may mean that all you do is prune the trees and shrubs. On the other hand, it may mean that you completely repaint the house, inside and out. Do a "curb to door" check.

Here are a few tips to help make a good impression on the buyer:

• Make your home look as spacious as possible.
• Organize your closets and kitchen cabinets, and if you have things stored in the attic or basement, make sure they are presentable.
• If you are showing during the day, pull back your curtains and drapes to show how bright and cheery your home is.
• If you are showing at night, turn on all of the lights to create a warm and welcoming environment for the prospective buyers.
• A home that is marked with your personality and style may be harder to sell. You might even consider such things as removing obvious clues to your political affiliation and tucking away any biased literature that may be visible. This will reduce distractions and help the buyers to visualize the home as their own.

The following link id a more deatiled list of things to do to your home to help it sell faster: How to prepare your house to sell

"What do I do when I receive an offer to buy?"

When a buyer decides to buy your home, an offer will be presented. Your real estate agent will advise you as to whether or not the prospective buyer is qualified to purchase your home. You and your real estate agent will then review the written document, taking care to note what is required of both parties to execute the transaction. The contract should protect the best interests of all parties involved and should be comprehensive in nature.

Once you accept the contract, it may be too late to make any changes. The contract, though not limited to this list, should include the following:

• A legal description of the property
• The offering price
• The down payment
• Financing arrangements
• A list of fees and who will pay them
• Amount of the deposit
• Inspection rights and possible repair allowances
• The method of conveying the title and who will handle the closing
• A list of appliances and furnishings which will stay with the home
• The settlement date

Any relevant contingencies
Remember that the legalities of this phase are very important. If you have any questions or concerns, be certain to address them with your real estate agent right away.

"How do I negotiate?"

Most offers to purchase your home will require some level of negotiation to come to a win-win agreement. Your real estate agent is well versed on the legalities of the real estate contract used in your area and will handle the responsibility of protecting your best interest throughout these negotiations. In addition, your agent has a thorough understanding of the contract itself, including what each contract clause means to you and your buyer, what you will net from the sale of your home, and what areas in the contract lend themselves easiest to negotiation. Your agent will review the written offer with you to make sure that you thoroughly understand what the buyers are offering and what they are asking in return.

Some of the items that you may have to negotiate are:

• The price
• Financing
• Closing costs
• Repairs that need to be done
• Appliances and fixtures
• Landscaping
• Painting
• Occupancy time frame

"What happens after I accept an offer on my home?"

Once you have accepted an offer to sell your home, your real estate agent will inform you of all the procedures involved in order to proceed successfully to closing, as well as the parties responsible for completing those procedures and estimates of completion. For instance, the property may need to be formally appraised, surveyed, inspected or repaired. Depending on the specifics reached during the negotiations, you may pay for all, some, or none of these items.
Your agent will then coordinate with all the parties and keep you informed as to the results of the various procedures. If each procedure returns acceptable results as defined by the contract, then the sale may continue. If there are problems with the property the terms set forth in the contract will dictate your next step. Depending on the contract, you or the buyer may decide to walk away, open a new round of negotiations, or close. Your agent will advise you throughout this process and will help you coordinate any actions you must take to keep the sale moving forward.
There are some sales that go smoothly and some that require a lot of work to get to the closing table. Until you get into it, you won't know which one you have on your hands. Either way, your agent will be there with you every step of the way.

"What is the closing process on my home?"

PRE-CLOSE PREPARATION: A few days before the closing, your real estate agent will contact the entity closing the transaction. He or she will make sure that all of the necessary forms and documents have been prepared and are going to be available for you to sign on the appropriate date. Your agent will also contact each party to the transaction to be certain that they have taken all actions necessary for closing, so the entire closing can proceed on the date and time planned.
Your agent will also prepare you in advance for the process of the closing, advising you of any documents you must bring to the closing, how much time to block off for the closing, and any other information that is pertinent to the closing meeting itself.

CLOSING ON A HOME: "Closing" refers to the meeting where ownership of the property is legally transferred to the buyer. Your real estate agent will be present during the closing to help explain the process and forms to you and make sure everything goes as planned. By being present during the closing, he or she can mediate any last minute issues that may arise.

As the seller, you will need to be prepared to give over any necessary documentation regarding the property and, depending on the arrangements made during negotiations, you may be required to have done something specific in order to close.

Be sure to read all the documents and ask any questions you may have. It is important that you understand every document you are signing.

POST-CLOSE ACTIVITY: Your real estate agent will help you create a checklist of all the things you will need to do to turn the property over to the new owners. You will need to make sure that all of the local services (i.e. electricity, gas, lawn care, cable, etc.) have been cancelled or, if the new owner is going to retain some of the services, the name for the account should be changed. The property and anything assigned to the buyer according to the contract should be prepared appropriately for the new owners. This will make the transition as smooth and effortless as possible.

Buying/Selling Resources:

At Evans Realty & Associates we want to make your home buying and/or selling experience as smooth as possible. The following are links to articles to help you in selling your home.

• Protecting Your Privacy While Selling
• The Worst Mistake a Seller Can Make
• How to Price Your House
• Who Pays the Real Estate Agent?
• Top 10 Ways to Make Home Buyers Hate Your House
• Showing Your Home
• How to Improve Curb Appeal