Someone Else Probably Did Too!

What is a short sale?

As you and your matched agent begin searching for your perfect home, you may come across listings for short sale homes. A home becomes a short sale property when the selling price is less than the amount of money outstanding on the mortgage. This generally occurs when the home’s value decreases more than 20%. Short sale homes can be great, as they offer homebuyers a fantastic deal on a house they may not have been able to afford otherwise.

How much money should I have saved for a down payment on a home?

Ideally, you’ll want to have 20% of the home’s price saved for a down payment. With 20% down, you’ll have lower up-front fees, a lower monthly payment, and you’ll acquire instant equity. If that’s not an option, don’t fret! Many homebuyers pay as little as 3% of their new home’s price for the down payment. A lower down payment does come with extra fees and you’ll be paying more for your home over time, but it tends to be a more realistic financial option for many homebuyers.

What A REALTOR® Does & Why You Need One?

When you begin the process of searching for a house, it’s common to think that the best place to start is to start with a scan of Zillow and a quick phone call or email to the realtor on the house you’re interested in. However, that’s not always the best way to begin.

The first thing you want to do when you decide you want to buy a house is find and hire your own REALTOR®. It is important to have your own representation, because the listing realtor on the home is hired by the sellers, and has their best interest in mind. When you find your own realtor — which you can do by asking friends, scanning the Internet, or hey, even taking a suggestion or two from local publications like us — you can begin the process of scheduling a home tour, and getting connected to a broker to get approved for your mortgage.

If you’re selling your home, a realtor is usually essential to not only navigating all of the legal and financial logistics, but making sure you’re getting as much money as you can for your property.

Here’s what a REALTOR® does:

— If you’re buying, a REALTOR® will help you find your home, and set up showings. With the internet, many buyers find their own homes, and then their realtor

— If you’re selling, a REALTOR® will help you price your home, provide advice for how to get your home ready to sell, hire a photographer to take pictures for the listing, and start marketing your home, and putting the “for sale” sign in the front.

— If you’re buying, the REALTOR® will set up and take you on showings to different properties. In most cases, you need a REALTOR® to see a property.

— If you’re selling, a REALTOR® will manage all of the showings coming through your home, accommodating your family’s needs.

— When an offer is received, a REALTOR® will negotiate that offer on your behalf.

— When an offer is accepted, a REALTOR® will act as your guide to get to settlement, which includes hitting deadlines, negotiating inspections, securing your mortgage, and so on.

When you’re buying a house, you don’t pay the REALTOR®. Those costs are covered by the seller. Therefore, it’s a no-brainer to have someone to help you through the whole process.

And when you’re selling a house, paying for representation is often the wisest financial decision. Ultimately, a REALTOR® is someone who will run comps, and give you an accurate market price for your property. They’ll also market the property the best, and help you navigate all the legal and financial logistics, as well as negotiate offers.

On average, when you list your home with a realtor, it sells for a significantly higher dollar amount — you end up more in the green. Either way, you can only stand to benefit.

What is PMI and how does it work?

PMI is short for “private mortgage insurance,” which you may have to pay if you opt for a conventional loan and make a down payment of less than 20% of the home’s price. Essentially, it protects the lender if you stop making payments on your home loan, and the cost is usually tacked onto your monthly mortgage payment. Don’t want to pay PMI every month? You may be able to pay it off in full at the closing of your new home or pay some of it at closing and some of it every month for a shorter amount of time.

What's the difference between a buyer's and seller's market?

In a seller’s market, there’s too much demand for too few properties and buyers compete with each other to purchase homes. The high demand and competition drive home prices up, which ultimately benefits sellers when their homes are sold. In a buyer’s market, there’s not enough demand for property and there are more sellers than buyers. When this occurs, sellers tend to reduce their home’s sale price, giving buyers the benefit of steep discounts.

Do I need to sell my current home before buying a new one?

Nope! There are a couple options when it comes to selling your old home and buying a new one. You can either sell before you buy, buy before you sell, or buy and sell at the same time. Selling your old home before you buy your new one allows you to see exactly how much money you have to spend ahead of time. Buying a new home before you sell your old home provides a way for you to seamlessly transition into your new home without the hassle of renting. Buying a new home and selling your old home at the same time can be a little tricky, but it usually allows you to get everything done in a short amount of time.