Q: Should I get a home inspection?

A: Whether you are selling your home or in the process of buying a new home, a home inspection is highly recommended. A licensed and trained real estate inspector can spot any issue that wouldn’t be seen by the normal untrained eye. As a seller, the seller is able to hire an inspector and do any necessary repairs before putting the house up for sale. As a buyer, the buyer gets further information about the home’s condition and they are able to negotiate any necessary repairs that could’ve come up on the inspection report. Negotiating with the seller to either make the fixes, provide a seller’s credit to the buyer, or reducing the purchase price prior to settlement occurring.

Q: What is the first step in buying a house?

A: The absolute first step in the home buying process is getting pre-approval from a certified mortgage lender. A pre-approval is a lender’s initial approval for a mortgage based on one’s income, and debt ratio, along with an acceptable credit score. Once a pre-approval is received, the buyer is now aware of their maximum purchase price for a home. From there, they can partner with an agent and look for the right home.

Q: What is earnest money and how does it work?

A: Earnest money (also known as escrow deposit) is similar to a deposit when renting a place or buying a car. The reasoning behind an escrow is to act as a good-faith gesture to demonstrate to the seller that the buyer’s offer is legitimate. Typically, an earnest money amount is between 1.5-3% of the purchase price of the home. The funds are held in a secured escrow account by the listing agent’s company. These funds go towards a buyer’s overall closing costs. If a buyer puts $5k in escrow and needs $25k for closing costs, the buyer will only need to bring $20k to the settlement table.

Q: Why is the home’s assessed value less than the market value?

A: An assessed value of a home is based on a public tax assessor, typically a county assessment department. The assessed value is done to determine the amount of property taxes that are needed to be paid yearly to the school, state, and city. Depending on the county a home is located in, will determine how the tax-assessed value is calculated. The market value is an agreed-upon price between a buyer and seller, constantly changing. There is usually a difference between the assessed value and the market value. The difference can be to the homeowner’s benefit or it can be a detriment. A homeowner could be paying an excessive amount of taxes each year because the assessed value is over the market value for the home. If you believe your property taxes are too high contact me below.

Q: How Long Does It Take To Buy A Home?

A: The answer depends on the starting point for the buyer. How long does it take from getting a pre-approval or how long does it take after an offer is signed between buyer and seller?
– Starting from the very beginning, if there are no issues, it can take someone less than a week to be able to get pre-approved and find an agent. Finding the right home may take a few days, a few weeks, or a few months. The first offer written by a buyer may not be accepted by the seller. The process from start to finish could last 2 months to a year or more. Especially if one is looking for the absolute perfect home. Hard to quantify the total time because it is different for everyone.
– Calculating the time it takes once a buyer’s offer is accepted is much easier to quantify. Typically, the average settlement date is 40-60 days after the seller signs the agreement of sale. During that time is when the buyer needs to submit a mortgage application, hire an inspector, hire an appraiser, and negotiate any discrepancies after both inspector and appraiser reports are reviewed.

If you have further questions, ask me in the contact form below.