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Frequently
Asked Questions
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Q: Why buy instead of
renting? |
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A:
There is the personal satisfaction of owning a
home - your piece of the rock. When you own you
are in control not the landlord. If you want
to knock a wall down go ahead. Then there are
the enormous financial benefits that come with
owning your own home. The belief that owning a
home is more expensive than renting is
generally not the case. There the tax benefits -
You can deduct the cost of your mortgage from
your taxes and you can deduct the property taxes
you pay as a homeowner. And you gain
equity as your home increases in value. When
renting you write a check with no financial
returns. |
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Q: Are condominium or homeowner
association assessments tax deductible? |
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A: No. Your interest and taxes are
deductible just as in a freestanding
single-family residence, but not your
monthly assessments. |
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Q: When do my mortgage payments
start? |
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A: Your first mortgage payment
is usually due 30 days after
closing - the date will be
included in your closing
documents |
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Q: What's included in my
monthly house payments? |
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A: Your monthly payment
covers principal and
interest on the loan,
and may also include
your mortgage insurance,
property taxes and
hazard insurance,
depending on the terms
of your loan. |
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Q: What
is a
contingency? |
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A:
Conditions
- or
"safety
valves"
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written
into
real
estate
offers
and
contracts
to
protect
the
buyer. |
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| Q: Can you help me with service providers? |
| A: Yes, I can supply recommendations of reliable and skilled service providers in your area. Your Dream Town consultant is in no way compensated for making referrals. |
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Q: What are
assessments? |
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A: Fees paid by
a condominium
owner to the
condominium
association to
cover protection
and maintenance
of common areas,
or by a
homeowner in a
townhome or
gated community
to the
homeowner's
association.
Also the
statistic used
by local
governing
agencies to
determine your
property tax.
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Q: Do I need a real
estate agent? |
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A: There is
so much information at a prospective buyers
fingertips on the internet, today. The internet
is a great place to start and get ideas of
what's available, where and at what price.
You can also find answers to many financing
questions on the net. Still, using an agent
is a good idea. So many details go into buying a
home and a experienced real estate agent can
guide you through the entire process and save
you time and money. |
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Q: What should I do
first? |
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A: The first
step for a potential buyer is to get your credit
reports. Do this step at least six months in
advance so you will have time to remove any
discrepancies. Get pre-approved (not
pre-qualified) Meaning a lender has committed to
loaning you money depending on the house you
choose to buy. Pre-approved buyers are
much more attractive to sellers alleviating
their worries of financial difficulties
complicating the process. If a seller need to
sell the property quickly your loan is ready.
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Q: What is earnest money? |
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A: The deposit the buyer makes
along with an offer to the
seller, held by the seller's
Realtor in escrow until closing
and applied to the down payment
at closing. |
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Q: How low can my offer be without being
insulting? |
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A: Don't worry about insulting the
seller - this is business. The seller
can always come back with a counter
offer or refuse the offer altogether. |
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Q: How much should I
offer? |
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A: An
experienced real estate agents help can be vital
here. There are a few things to consider: Is the
asking price in line with the CMA? The
houses condition - will you need to spend
additional money to make it the way you want it?
How long has the home been on the market? Can
you afford what you offer? Is this the home you
really want? A knowledgeable real estate
agent can help you answer each of these and any
other offer questions that might arise.
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Q: If I’m interested in a home for sale
by owner, do I still need a Buyer’s
Realtor®? |
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A: Yes. Having a Realtor® represent your
interests is just as vital in purchasing
an unlisted property as in a more
typical transaction. Most
"do-it-yourself" Sellers welcome Buyers'
Realtors® and are willing to pay their
commissions in order to make the complex
transaction easier. |
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Q: What is Agency
Disclosure? |
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A:
Agency Disclosure is a state requirement that
discloses to you the principal (the buyer in
this case) who the agent or agents represent in
the real estate transaction. |
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Q: What does an
agreement for buyer representation include? |
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A: It is a
contract with a beginning and an ending dates. In
it you recognizes your willingness to be
represented by the company and it agents. It
included what compensation, if any you will pay
for real estate related services. The agreement
states whether you'll work with one
company or several. |
