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Buying FAQ’s Q: Why use a real estate agent? A: A true real estate professional can provide tremendous value. You should expect an agent to provide: 1) guidance through a complex process, 2) insight about homes and communities, 3) vigilance for market dynamics, 4) advice on critical issues, 5) support through emotional decisions and 6) legwork to help complete the transaction. Q: What is Buyer Agency or Exclusive Buyer Representation? A: An Exclusive Buyer Representative works in your best interest to find the home that is right for you. This service is not automatic; in some market areas, agents may assist buyers in a capacity other than as an Exclusive Buyer Representative. While agents are always ethically bound to treat you fairly and honestly, an agent may be inhibited from working solely in your best interest if not acting as your Exclusive Buyer Representative. We strongly recommend that you explore the ways in which an agent may assist buyers in your market area, and always ask for Exclusive Buyer Representation. Q: How can I find out the level of mortgage I can afford? A: The best way is to speak with a mortgage specialist early in the home buying process. Q: What is the difference between being pre-qualified and pre-approved? A: Pre-qualification is an estimate of your borrowing power, based solely on the information you provide and is not subject to verification by the lender. Pre-approval is an actual loan commitment issued by a lender before you find a property, subject to a satisfactory appraisal of the property to be purchased. When you have been pre-approved, your income, assets, and credit have been reviewed to the satisfaction of the lender. Q: Do I need a lawyer? A: We recommend that you have a lawyer to review the contracts and other documents involved in your real estate transaction. You also are likely to require a lawyer to prepare a deed transferring your property to the buyer. Q: Do I need a home inspection? A: A home inspection - performed by a qualified home inspector - can help you determine the true (not just the apparent) condition of the house. The buyer may choose to make the transaction contingent upon a successful inspection (at their expense). This contingency helps protect the buyer against the discovery of major structural and/or mechanical problems that may exist. Buyers are not required to have a home inspection, although it is highly recommended. Q: What about lead paint and lead hazards? A: Beginning in 1978, federal law mandated the removal of lead as an additive in residential paints, and prohibited the use of lead paint in the construction of homes built after that date. As a result, properties built after 1978 should be free from lead-based paint, although a risk assessment and/or inspection is still recommended. Properties built before 1978 may present exposure to lead from lead-based paint which may place young children at risk of poisoning. The federal law is particularly concerned with protecting children, under six years of age and pregnant women. Some states' laws are even more stringent than the federal law, and directed at lead hazards other than those associated only with lead-based paint. Buyers should familiarize themselves with relevant laws in their states. A risk assessment or inspection for possible lead-based hazards is recommended prior to the purchase of any home. Q: How do I get town and school information? A: Many sources exist for town and school information, although you may find that they have incomplete or inaccurate information. Here are a few sources you may consider: Q: How do I prepare for closing? A: Real estate closings are complex, involving numerous documents. We recommend that you engage a lawyer to review the contracts before you sign them. Only legal counsel can interpret the ramifications of laws and contracts on you. Once you have decided upon a lender, their lawyer or Settlement Agent will conduct a title search and handle the closing. As a buyer, if the closing is being handled by an attorney assigned by the lender, it is important to keep in mind that the attorney is working in the interest of the lender. You may decide to have a separate lawyer representing your interests. Selling FAQ’s Q: How do I set the sale price? A: Your real estate agent will help you determine home values based on comparable transactions, current market conditions, and your home's maximum value; the sale price is then determined by you. Q: Do I need a home inspection before I place my home on the market? A: No, the buyer will pay for any inspections that they require. However, you may consider conducting a home inspection prior to marketing your home, to identify any surprises that might arise after you have accepted an offer. You will be responsible for any certifications required by your state before you can close on your home. Q: Should I counter-offer? A: This is your decision to make when presented with any offer. When you counter-offer, you have effectively rejected the buyer's offer and offered to sell to them at another price and/or on other terms. The buyer may, or may not, agree to your counter-offer. When evaluating offers, you should discuss all the possibilities with your agent in order to be comfortable with the decisions you make. Q: Why hasn't my home sold yet? A: This can be a common concern for a seller, but the market may fluctuate from day to day, so it is necessary to be flexible enough to respond to that market in a timely fashion. Sometimes, the price needs to be adjusted; sometimes the condition of the home needs attention. In other words, it may be one thing or a combination of things that affect the time your home is on the market. Your agent can advise you on what needs to be done to increase interest. |
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