Frequently Asked Questions from Buyers
(Responses are general in nature and do not address all possible options available. The buyer is urged to discuss all concerns with their agent or an attorney prior to making a decision)
How do I make sure that I get all the features I want?
-The simplest answer is to list your “must haves”, “wants” and “nice but not a deal breaker”
-Review your list and isolate those items that are not negotiable
- Take notes on each property separately. Positive and negative
- Also take pictures as a reminder of that property and tie them to your notes
- There is never a perfect fit. You may also change your priorities during the process
-Choose that home that gives you the “aaaahhhh” factor
How do I know that my property is worth what I paid for it?
-Prior to listing a home, your agent will prepare a comparative market analysis. This provides an estimate of what the seller may be willing to accept and what a buyer would be willing to pay. The market value is also reinforced by responses in the marketplace.
-Prior to extending a mortgage, the lender will also review the appraiser’s estimate of market value. The lender does this to insure that the loan does not exceed the value of your home.
Notably, the estimated taxable value (assessed taxable value) is seldom reflective of market value. They should be utilized only for the purpose of estimating tax liability.
What happens if an inspection of the home uncovers issues that did not appear on the Seller’s Disclosure?
-There are several options that you and your agent can discuss. This should not preclude the purchase of the home you love. You also have the option of withdrawing your offer within a specified amount of time. It is important that you review the inspections and discuss any issues with your agent immediately,
Why should I have to prequalify for a loan if I haven’t even looked at any properties yet?
-Loan pre qualification gives you and your agent important information. It helps your agent focus their search. Often, people are surprised by the size of their prequalifying mortgage amount). It allows them (for example: buy “more house”. The size of down payment will also effect these calculations) to realistically view homes that are within their price point.
I heard that a lender can withdraw from the loan anytime even after I prequalify. Is that true?
-Yes, the lender can decline to fund the mortgage during the underwriting process up to the point of time that they fund the transaction. For example, buyers should avoid making large purchases.
Please feel free to contact me should you have specific questions or concerns! To find out more about buying your next home, click here