FAQ SELLERS

How do I price my house?

In a single word it would be realistically.  Today’s residential real estate market is no place to look for easy profit.    That’s not to say you can’t get what your house is worth.  You just have to be realistic about its value and price it accordingly.  A good place to start is by determining the fair market value.

What is “fair market value” and how do I determine mine?

The fair market value of a house is the highest price an informed buyer will pay, assuming there is no unusual pressure to complete the purchase.  It is usually not the asking price.  To get an estimate of fair market value, call a local real estate broker for a Competitive Market Analysis (CMA) of your house.  Most brokers will provide this service free of any charge, without obligation.  The analysis will give you a realistic figure based on the most salient points of the local real estate market.  It should provide information about recent sale of similar houses in size and condition, including how much they sold for and how long it took to get that price.  The broker’s price opinion is very helpful in determining the right asking price.

What is the difference between fair market value and asking price?

Generally speaking the owner’s asking price – the advertised price of a house when it goes on the market – is set slightly higher than fair market value.  You can assume that some negotiation will be necessary to reach an agreement with a buyer.  In most case, the agent who represents you with the results of your CMA will be willing to help you establish a competitive pricing strategy.

Who can help me determine the right asking price?

Real estate professionals suggest asking prices based on a wide array of information you may not have at your disposal, including recent listing and selling prices of houses in your neighborhood.  If you’re not completely confident in their suggestions, you may want to order an appraisal. 

Next, establish clear priorities.  If you had to choose, are you more concerned with selling quickly, or getting the most money possible?  Someone else – a neighbor, friend or relative- may point out advantages or disadvantages about your house that you hadn’t thought about.  Third party views will help you start to think of your house as a commodity, with positive and negative selling points.  Then you should decide on a price that you feel is competitive and consistent with what other houses in your area have sold for.

Should I fix my house up before it goes on the market?

Unless your home is new, chances are you’ll want to do some work to get it ready for the market.  The type and amount of work depends largely on the price you’re asking, the time you have to sell, and of course, the present condition of the house.  If you’re in a hurry to sell, do the “little things” that make your house look better from the outside and show better inside.

FAQ BUYERS

What are the advantages of using a real estate agent to help me buy a home?

Buying a home is certainly one of the most rewarding experiences most of us ever have; it’s also one of the most challenging.  If you’re buying for the first time, the process can be over whelming.  And even if you’ve been through it several times, every move is different, and presents new challenges.  So one cleat advantage of enlisting the help of an agent is simply that you don’t have to “go it alone”.  A good agent has the training, the know-how and the experience to help you through each step of the process of finding, buying, and moving into your new home as smooth, quick, and enjoyable as it can be.  Another advantage is that an agent represents a valuable source of information about market trends, communities and neighborhoods, and especially, home for sale throughout the area.  Remember, not every home seller runs an ad in the local paper or puts a sign in the yard.  In fact, many home sell before there is ever a need to advertise them.  An agent offers you market expertise augmented by access to complete, regularly updated information about every home listed by area agents through the Multiple Listing Service (MLS).

Where do I begin the process of looking for a home?

The first thing you should do is to begin focusing on what you’re looking for in a home.  You can start by establishing priorities in the following three areas:

PERSONAL TASTES:  How large a home do you need?  What style of architecture do you prefer?  What kind of lot?  Depending on where you live, you may have a choice of homes in dozens of styles, sizes and settings.

BUDGET:  How much home is it wise for you to own?  As you consider these areas, do a little research of your own.  Look through magazines for ideas about home style and features.  Drive through neighborhoods that appeal to you to see what’s available.  Read the real estate listings in the newspaper to learn about current prices in the areas you’re considering.  Talk to friends about the features that you’d really like to have in your home.  The more knowledgeable you become, the better your final decision is likely to be.  Then sit down and consider carefully all the things you’re looking for in a home. 

LOCATION:  Are you relocating to a new town because of a job, or to be closer to your current job?  How will the location of schools, shops, and transportation affect your choice of neighborhoods?

How do I know for sure how much I can afford?

We’ve found that affordability is probably the single biggest concern of today’s first-time homebuyers.   Don’t sell yourself short.  Talk with your real estate agent.  A good agent is committed to honestly and responsibly working with you to determine your affordable price range.  There are many financing options available today, and some include low down payments.  Your agent will help find an option that fits your budget, and you may be surprised at just how much home you can afford. 

How does buying compare to renting?

Renting offers a lifestyle that’s nearly maintenance-free.  That may appeal to you, but consider that renting offers you no equity, no tax benefit, and most likely no protection against regular rent increases.  If your rent has averaged $700 a month for the last ten years, you’ve spent $84,000 with nothing to show for it.  Isn’t it time you invested in yourself instead of your landlord? 

Several financing options hold special advantages for first-time home buyers or families with limited cash reserves.  FHA-insured and VA-guaranteed mortgages can minimize or even eliminated your down payment.  You may also consider a lease-purchase agreement, or borrow cash for a down payment from life insurance, profit sharing or retirement account.  In addition to tax deductions you’ll likely receive that can partially offset the cost of real estate taxes, insurance and home maintenance, your home may appreciate in value.  And thanks to recent changes to the tax code, but subject to certain restrictions up to $250K/500K if married filing jointly, the profit you make when you sell the house is tax-free as long as you own the property for a minimum of 24 months.

Is an older home as good a value as a new home?

It’s matter of personal preference.  Both new and older homes offer distinct advantages, depending upon your unique taste and lifestyle. 
New homes generally have more space in the rooms where today’s families do their living, like a family room or activity area.  They’re usually easier to maintain, too.

However, many homes built years ago offer more total space for the money, as well as larger yards.  Taxes on some older homes may also be lower.  Some people are charmed by the elegance of an older home but shy away because they’re concerned about potential maintenance costs.  Consider a home warranty to get the peace of mind you deserve.  This will protection you against unexpected repairs on many home systems and appliances for a full year or more after you move in.

How many homes should I look at before I buy?

There is no set number of homes you should look at before you decide to make an offer on one.  That’s why providing the agent with as many details as possible up front is so helpful.  The perfect home may be waiting for you on your first visit.  Even if it isn’t, the house-hunting process will help you get a feeling for the homes in the community and narrow your choice to a few homes that are worth a second look.

I hope this has been helpful to you but if you have a question that was not answered on this page please contact me I'm here to help you.