Frequently Asked Questions

The list price is the price a seller is asking for his or her home. A seller can determine the price for the home – even if it is high. That’s why you should ask your real estate agent for prices of similar homes in the area that have recently sold. That will tell you whether or not the listing price is fair. The sales price is how much the home actually sells for (after you negotiate with the seller).

 

Closing costs are expenses that buyers incur outside of the price of the home. There are always costs involved when transferring ownership of a property. Closing costs typically include title insurance, loan points, escrow or closing day charges, property taxes, and document fees. Your mortgage lender will be able to give you an estimate of your closing costs so you can budget accordingly. Keep in mind that some buyers negotiate that the seller covers some (or all) of the closing costs. This varies from situation to situation.

That is entirely up to you. One thing to consider is that it can take a long time to save up for the perfect home. Currently mortgage interest rates are the lowest they’ve been in years. This makes buying a home more affordable. You may want to take advantage of low rates to get a starter home that you can renovate or add on to in order to increase its resale value.

You don’t have to, but it’s highly recommended. A home could have major issues you can’t even see. It’s important to get an expert opinion so you can be aware of any major plumbing or electrical issues that may cost thousands of dollars to repair. The money you’ll spend on a home inspector will save the money (and the headache) of repairing long-term damage or issues.

Any good real estate will ensure there is an inspection clause in your written offer. This clause allows you to walk away from the home if the inspector finds serious issues or negotiate on the purchase price if repairs are needed. You can also ask that the sellers fix any problems before settlement.

In most cases a standard insurance policy will be sufficient. This policy protects against several natural disasters and catastrophic events (not including earthquakes, floods, war or nuclear accidents). Your real estate agent can discuss your options with you in more detail.

Your real estate agent will help you determine the best offer. It’s a delicate balance – a low-ball offer can stop all negotiation in its tracks and an offer that is too high may result in the purchase of a home that is outside your budget. Your agent will research recently sold homes in the area and new listings before recommending a fair offer. Most of the time a seller will reject the offer and counter with another one. This is all part of the negotiation, so your first offer should be on the lower side.

Buying a home is emotional, but you need to leave all emotions out of the negotiation process. Most sellers aren’t out to get you – they just want to sell their home for the best price possible. Also remember that the listing price is not the price the seller will settle for. Just like your first offer will be on the lower side, sellers often price homes on the higher side so there is room for negotiation. Make sure you’re flexible and if you increase your offer, be sure the seller is also making a concession (for example, ask that repairs be covered by the seller).

Yes, many government programs offer a special federal income tax write-off for first-time buyers. These programs also make it easier for buyers to qualify for a mortgage loan. Your real estate agent will have more details about these programs and any guidelines or restrictions.

In most cases, closing costs are not tax deductible. However, there are ways to save on closing costs. Ask your real estate agent for more details.

Chances are you or someone you know has a relationship with a real estate agent. Start there. Be sure to interview at least three different agents and ask questions about their expertise, their style and who they’ve worked with. Also ask for testimonials from previous clients.

A good real estate agent will be knowledgeable, patient and compassionate. They will be thorough in their research and will take the time to show you a wide variety of properties. They won’t use pushy sales tactics and will be patient with you as you make a decision.  At the end of the day, trust your gut when hiring an agent – it will usually lead you to the right person.

In order to refinance your loan, you will have to have good equity, solid credit and a steady income. Remember – you will incur all closing costs just as you did when you purchased the home. Unless you get a mortgage rate two points below your current rate, refinancing may not be a good option.

Equity is the cash value of your property outside of your mortgage. Equity typically increases over the years and is a great source of income once the home is sold. You can always borrow against your home’s equity and use the money for any home improvements or repairs.

Yes. This is actually a good thing as disclosing information about your home can protect you from a potential lawsuit. When selling your home, you’ll need to fill out a disclosure form that includes details about your home’s condition, age, etc. You are required to disclose any problems with your home before it is sold.

Talk with your mortgage lender and arrange a repayment plan. You may be able to refinance your loan or work out a deal that will prevent your home from being foreclosed. A foreclosure should always be a last resort.

First, you’ll need to budget for any repairs. Next, you’ll need to pay your real estate agent a commission. There will also be attorney and closing costs, as well as costs for title insurance and excise tax. Ask your real estate agent to give you an estimate on the total closing costs you will be expected to pay.

The right time to sell your home is when you feel ready. Many people decide to sell when they have outgrown the space or want to downsize. Life transitions such as divorce or a new job also cause people to sell. The market plays a role too – if you want to get the best price for your home, you’ll want to wait until the market is in a seller’s favor. When you are ready to move forward, your real estate agent will advise you on the best time to sell.

Visit your local zoning office or city hall to get a copy of your local ordinance. Some towns also have their zoning maps and ordinances online and in local libraries.

Shop around and do your homework ahead of time. Ask family and friends for referrals. In some cases, you may be able to negotiate a better price directly with the contractor. Or, you can opt to do a portion of the project yourself to save on labor costs.

Allot one percent of the purchase price of your home every year toward maintenance and routine repairs. Older homes typically require more maintenance. Don’t put things off or the value of your home will decrease. Every year examine your home for potential problems, including the roof, foundation, plumbing, etc. Fix short-term issues before they become major ones down the road.