Q.) What is the difference between a buyer’s and a seller’s market?
A.) These terms are based on supply and demand and basically define whether the buyer or seller has the advantage in the market at the time. During a buyer’s market, there are more homes on the market than there are people looking to buy. A seller’s market, conversely, occurs when there are more buyers than there are homes, making the search more competitive and forcing buyers to offer more for homes they like.
Q.) How long does a typical real estate transaction take?
A.) A closing is typically scheduled to take place 30-45 days after an offer is accepted. This allows time for inspections, surveys, loan approval, appraisal, and allows a little wiggle room for all parties involved on the off chance that there is a hiccup or roadblock of some kind.
Q.) What is earnest money?
A.) Earnest money is sort of a security deposit on a home. Earnest money is an expected, and therefore necessary, part of an offer and is typically between 0.5% and 1% of the total purchase price offered. It is not extra money added to the purchase price, think of it as a part of the down payment that you will pay at the start of the transaction instead of at closing.
Q.) Why should I use a Realtor?
A.) Realtors are essential for many reasons. To name a just a few, Realtors are expert negotiators and can help you with the difficult paperwork associated with a real estate transaction. The average person buys probably 2-3 homes in their life. Realtors deal with hundreds of home sales, so they are a valuable addition to your team.
Q.) How many properties should I look at before I submit an offer?
A.) In my opinion, you should make an offer on the first house you LOVE, whether that is the first property you see or the 50th. I’ve seen many people lose a house they truly love because they want to make sure there isn’t anything better on the market or because they think that by waiting they could get a better price.