Why should a REALTOR® help me make my home purchase?
Buying a first home can be intimidating. A REALTOR® can help you make educated decisions regarding one of the biggest financial investments of your life. Contact a REALTOR® to determine your buying power, help you find the home of your dreams, help you negotiate the amount you’ll spend for the house, and walk you through the closing of your new home.
Why is this a good time for me to buy a home?
Real estate is always a good long-term investment. It’s a secure way to grow your personal wealth. According to the Federal Reserve and National Association of Realtors, the average homeowner’s net worth is 46 times that of a renter. Today’s market is full of choices. Your REALTOR® can help you determine if this is the right time for you to buy.
Why is owning a home an advantage over renting?
Aside from the pride of owning your own home, buying a house helps you to build equity, allows you to use the home as a tax write-off, gives you control over your monthly expenses, and lets you make upgrades to the property.
What is a down payment?
A down payment is an up-front payment made on a home.
What is earnest money?
Earnest money is a payment made to the agent when an offer is made on a property. This payment is applied toward the home if the offer is approved. If the offer is denied, it is returned to the buyer. Your REALTOR® can provide you with information about how much earnest money may be expected toward the home you’d like to purchase.
What is a purchase agreement?
A purchase agreement is a written, legally binding agreement between a buyer and seller that includes all of the terms and conditions of the sale of the home. Your REALTOR® can walk you through a purchase agreement and explain its intricacies.
What items remain in a home and what items move with the original owners?
Items that stay in a home are fixtures. These are generally items that are physically attached to the house such as kitchen appliances, some window treatments, etc. Your REALTOR® can help to determine which items will remain in the house you’d like to purchase. Any questionable items can be included in the purchase agreement.
With the real estate market in a state of free-fall, how can you still believe it is a good time to buy a home?
It has certainly been a rough market, but the fact is that today’s conditions are ideal for buyers. Prices have moderated, interest rates are approaching 40-year lows and there are more homes for sale than in the past 15 years. So today’s home buyers have a terrific opportunity to choose exactly the home they want at affordable lending terms. Owning a home is still the American Dream, and today’s market puts it well in reach for a great many people.
Isn’t there a good chance prices will continue to drop further?
Research shows that prices have stabilized and price declines are likely over. In fact, the National Association of Realtors is projecting modest price increases for 2008.
With prices down, why would a seller want to put their home on the market now?
If a homeowner wants to sell, the key is to consult with a professional to protect their investment and come up with a strategy to make their home as desirable to buyers as possible. A REALTOR® has the necessary knowledge of the community and of current conditions to ensure that sellers get the best value for their property. Statistics show that homes sold using a REALTOR® sell for 17% more than homes sold without.
The real estate industry’s predictions have been overly optimistic over the past year or so. What makes you so sure the worst is over?
Of course nobody has a crystal ball, but the industry has some of the best economic research out there, and the numbers are indicating that prices have stabilized and will likely start to rise modestly next year.
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What is the long-term forecast for the local market?
Homeownership has historically been an excellent long-term investment, providing both equity and tax benefits over time, and we see no change in that outlook. Given the leverage you get in purchasing a home, the average return on a 5% down payment over 10 years is usually three to five times greater than stock market returns.
Hasn’t the subprime mortgage mess made it hard for people to get loans now?
That’s a common misconception. Lenders are being more diligent about making sure the terms of a mortgage fit a buyer’s financial situation – and that’s a good thing for everyone – but they are still eager to finance home purchases. And with interest rates approaching 40-year lows, it’s a great time to buy.
How has the subprime mess impacted the local real estate market?
There have been increased foreclosures and vacancy rates nationwide as well as here in this market, but the research indicates the impact is mainly behind us. We believe we’ll see a return to normal conditions in 2008.
How should buyers choose a lender?
It is very important that we warn buyers against predatory, “toxic” loans that can trap unsuspecting borrowers into years of financial hardship. Buyers should deal with reputable lenders and seek professional help from agencies like the Better Business Bureau to identify lenders of good standing.
What type of loan is best for consumers?
Home buyers should shop for the mortgage that best suits their needs and their financial circumstances. A REALTOR® is uniquely positioned to inform and guide buyers through the maze of financing alternatives.
If you are looking to sell your home, what should you do to get it to place on the market?
The first thing you should do is consult with a REALTOR®. They will know how to price your home and how to make it appealing to buyers. Statistics show that homes sold using a REALTOR® sell for 17% more than homes sold without.
If you are looking to buy a home, what are some of the important factors you should consider?
Location, price and your own personal financial and family situation all play an important role when considering a purchase. Your REALTOR® can provide you with information about neighborhoods, school districts and realistic pricing because of their vast knowledge of the local community.
Aren’t REALTOR®s just acting as cheerleaders for the marketplace?
We want buyers and sellers to know the facts about the market today and over the long term. Inaccurate stories in the media have turned many consumers sour to the idea of buying a home, and that’s a shame because now is a great time to buy. Prices have moderated and are not likely to go lower, interest rates are approaching 40-year lows and inventory is abundant.
Why should a seller use a traditional REALTOR® as opposed to a discount broker or doing it themselves? Why pay all that commission?
Today’s sellers have more service options than ever, and that’s great. The majority continue to find that a REALTOR® adds a great deal of value, through their market savvy and by helping the seller navigate the myriad individual steps involved in selling a house. A REALTOR® also must adhere to a Code of Ethics.
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