Common Real Estate questions you might be embarrassed to ask…
I know a young man was buying his first home at the age of 21 and had little clue about the process. While meeting with the mortgage broker the conversation about “concessions” came up. The response from the young man as he took a large gulp “The only concession I know is the concession stand, what are you talking about?”
Let’s talk about a few frequently asked questions so you can know the basics!
Where do I start?
Start by getting a home mortgage pre approval letter! This is a guarantee from a lender that you are qualified to buy a home with their money. You should know what your spending limit is and this will clarify it. I would suggest shopping around at a few banks and finding the right lender for you and your budget.
How should I pick my real estate agent?
Your agent will be a massive factor in finding the right home and at the right price. Online services have made it easy to find a home but they are not ahead of the market like a great agent will be.
Your agent should have the following skills.
A. A strong long term track record in your market.
B. The ability to negotiate and structure deals in your favor.
C. The ability to make you a priority.
How can I tell when a good time to buy is?
If you are entering a “sellers market” it might be a good idea to stay put and continue saving for a down payment. How can you tell if it is a sellers market?
Are home’s entering contracts…
A. Over the asking price
B. In under 2 weeks
C. Mortgage interest rates are falling.
If it is a buyers market you will see these trends
A. Local inventory is high
B. Local inventory is stagnant
C. Asking prices are consistently falling
D. Mortgage interest rates are rising
How long does the process take once my offer is accepted?
“Most federally related mortgage loans can close within 30 days. Special first-time home buyer programs, particularly those involving help with the buyer’s down payment, might take 35 to 45 days to close. These special loans typically require approval from two underwriting processes.” (https://www.thebalance.com/the-home-closing-process-1798319)
Should I get a home inspection?
Yes, and then for those in the back…YES! It is an extra investment but it can save you thousands to hundreds of thousands of dollars in the future! Your real estate agent should push you to order one and they should have a reference for a local inspector that you can trust!
What is a concession?
“A concession is a benefit or discount offered by the buyer or seller to help sell a home and close a deal. Concessions are usually specified during negotiations and included in closing costs. Examples include covering the costs of new appliances, moving expenses, or repairs to the home. Because concessions can impact the selling price of a home, appraisers may take concessions into consideration when evaluating comparables and appraising the value of the home.” (https://www.redfin.com/definition/concession)