Questions
What is a REALTOR®?
The term REALTOR® is a specific designation given to members of real estate firms affiliated with the National Association of REALTORs® (NAR) who are trained and licensed to assist clients in buying and selling real estate.
What is the Code of Ethics and what does it mean to the REALTOR®?
REALTORs® must subscribe to the Code of Ethics of the National Association of REALTORs®. This living document provides guidance for responsible and ethical behavior of REALTORs®. Under the code, REALTORs® such as Stacy Eder continuously work hard to be informed about issues affecting real estate. As a knowledgeable professional, she willingly shares the fruit of their experience and study with others. The term REALTOR® has come to connote competency, fairness, and high integrity.
How do REALTORs® make their money?
REALTORs® such as Stacy work on commission. The commission is generally a percentage of the sale price of the listed property. This percentage is established when the property is listed and most often is paid when the sale is completed. If the property fails to sell, the REALTOR® does not get paid and absorbs the marketing costs. The costs of advertising, support staff, franchise fees, office space, automobile expenses, insurance, equipment (the list goes on and on) are all a part of the necessary expenses supporting the sales effort.
How can I evaluate what my home is worth?
Market Value is usually defined as the price at which a willing seller will sell and a willing buyer will buy. That means that the value of your home is not fixed. It can change depending upon a number of factors. Stacy Eder will provide you with a Competitive Market Analysis, or CMA, without cost or obligation as part of her service when you list your home for sale. The CMA includes a comparison of your home to similar properties that have sold recently. It also includes properties which were listed, but did not sell, and ones that are currently on the market. The sold properties give you evidence of what buyers were recently willing to pay for homes similar to yours. The ones that did not sell will indicate prices that buyers were not willing to pay. A look at the competition will help to determine the price at which you might want to begin to market your home.
Stacy will also take into consideration the current market conditions, like interest rates for mortgages, economic trends both local and national, and time of year in which you are selling. The condition of your home will also affect the value. Today's buyers are busy people who may not have much time for fix-up. So generally, the better the condition, the quicker the sale, and sometimes the higher the value!
What should I do to get my home ready to sell?
Make obvious repairs and make it shine! You probably don’t want to spend a lot of money on a home you’re about to sell, but some elbow grease and just a small investment in “fix-up materials” can go a long way toward making the home attractive to potential buyers. Stacy’s Getting Your Home Ready section of this web site has lots of tips. You can also request her special “How to Prepare Your Home For Sale” booklet.
Generally, what are the steps in buying a home?
First, plan ahead. Check credit agencies and make sure your credit rating is strong. Then start thinking about where you want to live, what type home you need how large it needs to be. For example, do you like condo living or would you prefer an elegant home on a golf course? Are schools a consideration? Do you want to be close to your work? Then contact Stacy and begin your search. If you’ll be applying for a mortgage, you’ll want to pre-qualify for it. Stacy’s What You Can Expect page has the details, but in a nutshell: When you’ve found the property that’s right for you, you’ll make an offer, probably negotiate a bit, and make an up-front deposit. Once your offer is accepted, the property will be appraised and inspected. You’ll also need to purchase homeowners insurance. At closing, you’ll take ownership of your new home! If that sounds like a lot of details, don’t worry! Stacy’s an expert in the process, and she will make it almost stress free.
What are some tips or general rules to prepare for first-time home buying?
Save, prepare and research. Bidding wars for homes are becoming more common as demand for houses continues to grow. According to a report in Ladies’ Home Journal, gone are the days of offering 20 percent under the asking price. In today’s market, it pays to go in with your highest offer – which requires some careful financial planning.
Some tips:
- Have enough savings. First-time buyers make an average down payment of 12.5 percent.
- Check your credit report for possible errors.
- Apply for a pre-approved mortgage so you know your spending limit. Generally, you can afford a home that costs about 1.5 times your annual income.
- Research recent real estate transactions to find out how much buyers have paid for comparable homes in the area.
What is the difference between being 'pre-qualified' and 'pre-approved' for a loan?
Pre-qualification is a process normally conducted by your REALTOR®. It involves some "number-crunching" based on information you provide to determine how large a loan you will qualify to receive from a lender. It should be considered a rough guide and should be known before you shop for a home.
Pre-approval is a process normally conducted by a lending institution. It involves the "number-crunching" mentioned above and is followed by verification of information from credit bureaus, employers and references, etc.
It is a good idea to get pre-approved before you shop for a home. The lender will give you a pre-approval letter that can accompany your offer to buy. This will strengthen your position in the eyes of a seller and reduce the time necessary to obtain final loan approval.
Is it harder for people who work on commission to qualify for a home loan? If so, what will the lender expect?
One of the key numbers in qualifying for a home is the amount of income you earn. For people who receive a straight salary, it’s pretty easy for the lender to determine that number from a current pay stub. If you work on commission, because your income can fluctuate, the amount you earn isn’t as easy to determine.
The lender will most likely average the past several years’ commissions to arrive at a predictable amount of income. If your commissions have been steadily increasing, the lender could agree to put weight on your current income from commissions. You will need to provide the lender with information on why this income is likely to continue, including documenting a stable client base, and providing commission agreements and 1099s.
Who pays the typical fees attached to the home buying process and who pays them?
The BUYER pays for:
Appraisal
Credit Report
Discount Points
Escrow Payments
Homeowner’s Association Fees
Insurance Impounds
Interest Adjustment
Mortgage Insurance Impounds
One-time MIP (FHA only)
Origination Fees
Prepaid Insurance
Recording Fees
Tax Impounds
Title Policy
VA Funding Fee (VA only)
The Seller pays for:
Discount Points
Escrow Fee
Home Warranty Program
Interest Adjustment
Title Policy
Pest Inspection
Real Estate Commission
Tax Service
