Real Estate Questions
1What is the difference between a real estate agent and a real estate broker?
Most states require real estate sales professionals to be licensed by the state, The person you normally deal with is a real estate agent or salesperson. The salesperson is licensed by the state, but must work for a broker. All listings are placed in the broker’s name, not the salesperson’s. A broker can deal directly with home buyers and sellers, or can have a staff of salespersons or agents working for him or her.
2Why Should I Use A Realtor
A real estate agent is more than just a “sales person.” They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home. Due to the fast changing market, the data on available listings is not 100% accurate. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.
3How can I find out how much my house is worth?
This may be a bad sign for you, especially if you think your house is worth more than other houses in your neighborhood. Homes maintain their value better if the neighboring properties are fairly similar. IN your situation, you may actually have to talk to several Realtors, get their opinions, and come up with some sort of consensus. Without knowing why there are no comparable properties in your area it is difficult to give another suggestion. If your lot or home is over-improved for the area, that means the value will most not likely be what you think it is. If your home is much larger, you might not get the same cost per square foot as other homes in the area’s I would talk to a bunch of Realtors and get their opinions. you could hire a appraiser, however, Appraisers are better at “justifying” a price than in determining market value. How Big Is An Acre?
4What is a lease option?
This basically means you are leasing or renting a property with an option to buy it at a future date. The future price of the property should be fixed at the time the lease-option is signed. Usually there is an up-front payment of some amount to purchase the option. The amount can vary. Sometimes the monthly payment is larger than normal and the excess is used to purchase the option. In some cases, the option money can be applied toward the down payment for the later purchase of the home. Lease-options are usually done during a slow real estate market. During a hot market, the seller can simply sell the home in the regular manner.
5What Is Equity?
Equity is the financial interest or cash value of your home, minus the current loan balance(s). If selling the home, this would also be minus any costs incurred in selling the home.
6How Big Is An Acre?
An acre is an area of land equal to 43,560 square feet.
7What Is Comprehensive Homeowners Insurance?
Comprehensive is the most expensive type of homeowners insurance; it covers the most potential damages such as fire damage, water damage not caused by flooding (which would fall under your Flood Insurance policy), your personal possessions, personal liability, theft and vandalism. It is usually required that you carry at least a basic hazard insurance policy. When concerning homeowners insurance, it’s important to shop around as soon as possible to avoid being caught in a jam in the event that your insurance company refuses to insure your home.
8How Much Can I Afford?
Find out what type of home is in your budget by entering a few numbers into our calculator. Our calculator is based on standard affordability ratios used to determine qualification for mortgage approvals. The housing payment ratio (or front ratio) compares your total mortgage payment to your monthly income and your total debt ratio (or back ratio) compares your total monthly obligations including your mortgage payment to your monthly income.
9What Is A Balloon Mortgage?
A type of mortgage in which the loan amount is amortized over the full length of the loan (usually 30 yrs), but the loan actually comes due after a few years (usually five or seven). The first payments go mostly towards interest. The balance of the loan is due in one final installment, called the Balloon Payment.
10What is a Title Company?
The title company will do an “abstract of title” which means searching the real estate records in the county where that particular piece of property is located. An abstract will (1) determine the legal owner of the property; (2) reveal any mortgages, liens, judgments, or unpaid taxes that will have to be satisfied before the property is conveyed; and (3) detail any existing easements, restrictions, or leases that affect the property.
11What is Property Management?
Property management—also known as real estate management—encompasses all aspects of running an income property, from finding and screening tenants to maintaining the property, collecting rent, and handling any issues that arise.