FREQUENTLY ASKED QUESTIONS
So how does the process of buying or selling work?
We work 100% on commission and it’s generally based on a percentage of the overall sales price. We don’t get paid until you close! Our fee typically comes out of the seller’s proceeds while buyer’s generally pay nothing to the agent who represents them.
Honestly, most folks never put much thought into how real estate agents make money – neither the commission percentages nor from which side of the deal the fees come. Obviously, one must assume compensation comes from somewhere, or no one would be in business. Office furniture, copy machines, and yard signs don’t pay for themselves. Usually, about the time people start thinking about buying a home, they start to wonder how real estate agents get paid.
Most buyers are surprised to learn that real estate commissions come from the “sell side” of a deal. Meaning, the fees get worked out between a seller and their listing agent when a house is put up for sale. Then when the home is sold, the seller’s agent splits the listing fee with the buyer’s agent. Thus, buyers aren’t on the hook for any costs, just the sellers. While there are a few agents who will represent buyers for a flat fee or work on an hourly basis, those business models are not widely used. By far, the most common practice is to follow the age-old commission split between the listing broker and the buyer’s representative.
Can you trust Zillow’s Zestimate?
No! Anyone who has bought a home, sold a home, or just looked at homes, has heard of websites such as Zillow and Trulia. These third-party real estate websites are not local to every real estate market and are automatically computed daily based on millions of public and user-submitted data points. Even their own website (Zillow.com) states their values are merely a starting point in determine what your home is “worth”. It’s critical that when selling your home, the value is determined by an educated and experienced Realtor in your local area, not an internet website!
What does an accepted offer mean?
An accepted offer simply means the seller has already contractually agreed to sell their home to a primary buyer. In most cases, the seller will not allow showings while under contract, but some will entertain additional showings and potential secondary offers. Secondary offers, however, remain in secondary position all the way to closing unless the primary offer falls apart.
What are some common bank required repairs?
If a home buyer is obtaining financing from a bank, the bank will complete an appraisal. When performing an appraisal, the appraiser is looking for potential safety hazards or concerns. Some common bank required repairs include missing handrails, broken windows, peeling paint, missing electrical covers, and roofs that are in very poor condition.
What happens if the appraised value comes in too low?
In addition to ensuring there are no safety hazards at a home, the bank appraiser is also making sure that the home value is at least what a buyer and seller agree too. This isn’t always possible though. If an appraiser determines the value of the subject property is lower than the agreed purchase amount, there are a couple different scenarios.
Seller Makes Concession
This is the most common result when an appraisal comes in too low. The seller must agree to sell the home for what the appraiser determines as the acceptable value.
Buyer Comes Up With The Difference
The buyer must bridge the difference between the purchase price and the appraised value. This scenario is fairly uncommon as many buyer’s find it hard to pay more for a home than their bank appraisal indicates it’s worth.
The Transaction is Cancelled
Unfortunately for both the seller and buyer, this is a common result from a property under appraising. If the buyer does not want to bridge the difference and the seller does not want to make the concession and adjust the sale price, the transaction is cancelled.
Challenging an appraisal is not an easy task. It is something that must be done with much care and consideration, otherwise the chances of an appraised value being changed, is slim.
How much is my home worth?
Most home owners want to know how much their home is worth. This frequently asked question is another one that cannot be answered with a generalized answer. One of the best perks to owning a home is the ability to make it your own and improve it how you’d like. Finding out how much your home is worth is not something that should be done without asking a local Realtor.
Why is the assessed value different than what you say my home is worth?
Assessed value is not the same as market value or appraised value. There are many homes that could be sold for significantly more than an assessed value and others that maybe sold for significantly less. The assessed value of a home is used for the purpose of taxes in your local municipality. The assessed value of a home is multiplied by the local tax rate to determine what your yearly taxes are. The assessed value has no impact on how much your home is worth to a potential buyer in the marketplace.
What steps should I take to prepare my home for sale?
There are several things you need to know before listing your home for sale! A frequently asked question from home sellers before listing is what steps should be taken before listing their home. Not properly preparing a home for sale can put a home owner at a huge disadvantage.
The expression “You never get a second chance to make a first impression” is absolutely true when it comes to selling a home. When selling a home you must be sure that your home presents itself in the best possible light. Making sure clutter is at a minimum, freshly painting rooms, installing new carpeting, or ensuring odors are non-existent are just a handful of things that should be done before listing your home for sale.
Why isn’t anyone looking at my home?
This frequently asked question can be a fairly complex answer. In most cases however, the reason your home is not being looked at by potential buyer’s is due to the price. Buyers who feel a home is priced too high will choose to look at other homes before yours, likely finding one before they reach yours. Other possible reasons your home is not being looked at could include poor curb appeal or a poor location.
Can I find a rent-to-own property?
Can you find a needle in a haystack? Of course you can, but the probability isn’t very high. The same can be said about a rent-to-own property. A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option. While they do exist, the probability of finding one is highly unlikely due to the competitive nature of our market.
The above frequently asked questions from home sellers are all great questions. There are no “dumb questions” when it comes to selling a home. The reality is that selling a home is not something that is frequently done, therefore, questions are a great way to be prepared and well educated on the process.