Buyer Representation FAQs
-
Answer: The amount you can afford for a mortgage is influenced by your income, debts, down payment, and interest rates. Typically, it's advised that your monthly mortgage payment should not exceed 30% of your gross monthly income.
-
Answer: The typical timeline for buying a home is 30 to 45 days from the accepted offer to closing. However, it can vary based on factors such as financing, inspection results, and the complexity of the transaction.
-
Answer: Earnest money is a deposit made to show the seller that you're serious about the purchase. It’s typically 1% of the purchase price and is applied to your down payment or closing costs.
-
Answer: In addition to the down payment, buyers should budget for closing costs (typically 2-5% of the purchase price), home inspection fees, appraisal fees, homeowners' insurance, property taxes, and possibly private mortgage insurance (PMI) if your down payment is less than 20%.
-
Seller Representation FAQ’s
-
Answer: To determine a competitive listing price, your agent will conduct a comparative market analysis (CMA) or COMPS is used to evaluate the prices of similar homes in your area.
-
Answer: It depends on the condition of your home and the local market. Small repairs (like fixing leaky faucets or patching holes) and cosmetic updates (like fresh paint or landscaping) can increase the appeal of your home without significant expense. Major renovations may not always provide a good return on investment, especially if the market is competitive.
-
Answer: Closing costs for sellers generally include agent commissions, repairs or concessions agreed upon in the contract, title insurance, transfer taxes, and other fees. These costs typically range from 6-10% of the sale price.
-
Answer: The timeline varies depending on the market, location, and the condition of your home. On average, homes sell within 30-60 days, but in hot markets, homes may sell more quickly, while in slower markets, it may take longer.
-
Answer: Yes, many sellers also buy a new home at the same time. However, the process can be complex, especially if you need the proceeds from the sale of your current home to fund the purchase of a new one. It may be helpful to have a contingency plan, such as a rent-back agreement or temporary housing, in place
-
Answer: Your real estate agent will guide you through the entire selling process, from pricing your home, marketing it, negotiating offers, handling paperwork, and working with other professionals (inspectors, title company, etc.) to ensure a smooth transaction.
-
Answer: As the seller, you can generally cancel the sale if certain contingencies haven’t been met or if the buyer breaches the contract. However, backing out without cause can lead to legal consequences, including the forfeiture of earnest money or legal action from the buyer.