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How
do I find out how much my house is worth? |
|
Answer: |
A market analysis
and appraisal are usually the standard methods for determining the value
of a house. Your real estate agent can provide a comparative market analysis which is an informal estimate of value based on comparable real estate sales in the local area neighborhood. The process includes getting a price listing of current houses on the market and those that have already sold. You can check this for yourself through recent sales in public records that can be found in your county offices. Properties must be similar in size, construction and location. This information is can be gathered at your local recorder or assessor’s office but also you can use private companies or search on the Internet. An certified appraisal range from $200 - $300 and must be done by a certified appraiser. [TOP] |
| What is the difference between the list price, selling price, and appraised value? | |
Answer: |
The list price is the seller's advertised price. A seller’s price depends on what the seller wants to sell their house for based on what the seller has invested or owes on the house. The sales price is the amount of money a buyer would pay for a house or property. The appraisal value is a certified appraiser's estimation of the worth of a property which is based on comparable sales of other houses in the area. [TOP] |
| What is the difference between market value and appraised value? | |
Answer: |
The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth. [TOP] |
| What are closing costs? | |
Answer: |
Closing costs are fees for services, taxes, or special interest charges that are included in the selling price of a house. The factors that are included in closing costs are loan points, title insurance, escrow or closing day charges, document fees, prepaid interest and property taxes. Unless, the charges are included in the loan amount, they must be paid when the deal is complete. [TOP] |
| Where do I get information about closing costs? | |
Answer: |
The "Consumer’s Guide to Mortgage Settlement Costs," Federal Citizen Information Center, Pueblo, CO 81009; (888) 878-3256; pueblo.gsa.gov is one option to learn more about closing costs. [TOP] |
| Who pays the closing costs? | |
Answer: |
They are paid by the seller or the buyer. It depends on local ordinances and negotiates between the seller and the buyer. [TOP] |
| How do you choose between buying and renting? | |
Answer: |
Owning a house can offer tax benefits in addition to the freedom to make decisions about your own house. The advantage of renting is means the renter does not have to worry about maintenance and other obligations when owning a house or property. [TOP] |
| What's a certified home inspection? | |
Answer: |
Certified inspections are performed by certified inspectors. This procedure is recommended to assist the buyer in checking for problems that might cause more expenses on home improvement to the buyer as the months or years progress. [TOP] |
| What are standard contingencies? | |
Answer: |
Purchasing offers can include two types of standard contingencies. A financial contingency makes the sale dependent on the buyers' ability to obtain a loan commitment from a financial lender. An inspection contingency allows the buyer to have a certified inspection of the property that meets their satisfaction. A buyer could forfeit the deposit under certain circumstances, like backing out of an intended purchase for a reason not clearly stated in the contract. The contract must include the seller’s responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any repairs to the property prior to closing. [TOP] |
| What contingencies should be put in an offer? | |
Answer: |
Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers' ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. A buyer could forfeit his or her deposit under certain circumstances, such as backing out of the deal for a reason not stipulated in the contract. The purchase contract must include the seller’s responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property. [TOP] |
| What is the difference between list and sales prices? | |
Answer: |
The list price is how much a house is advertised for and is what a seller would like to get for the property. The sales price is the amount a property actually sells for. [TOP] |
| Whose obligation is it to disclose pertinent information about a property? | |
| Answer: |
In most states, it is the
seller, but obligations to disclose information about a property vary. Under the strictest laws, you are required to disclose all facts materially affecting the value or desirability of the property which are known only to you. For example: Homeowners Association Dues; Whether work performed on the house meets local building codes requirements; If there are any neighborhood nuisances or noises which a buyer might not notice, such as poor TV reception or trains that run every night; A death within three years on the property; Or any restrictions on the use of the property which would include zoning ordinances. Check your state's disclosure rules prior to buying a house or property. [TOP] |
| Are interest rates negotiable? | |
Answer: |
Some financial lenders are willing to negotiate on both the loan rate and the number of points but this isn't typical among established lenders. It pays to shop around for loan rates. Know and understand the market before discussing your finances with a lender. Always check the interest rate and points to get the best possible financial arrangement. When checking for interest rates look in your local newspapers or check an Internet site that publishes financial information. [TOP] |
| What is the best time to buy? | |
Answer: |
The spring or summer is the best time. Sometimes as early as the month of February, buyers will start to look at houses. Families with children have a tendency to plan their purchase of a new house during summer vacations and before school starts again. [TOP] |
| What is the first step to buying a home? | |
Answer: |
Finding out what you can afford is one of the fist steps. This can be done by pre-qualifying for a house loan. This will narrow the search for a neighborhood and certain houses that might be out of your financial budget. Primarily your income is the main component when pre-qualifying. Usually buyers don’t make offers on houses or property until they have been pre-qualified. [TOP] |