Lexington Park Office (301) 737-1133Frequently Asked Questions
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Q: All I hear is how difficult it is for
the average family to buy its first home. Is this true?
A: National statistics do not prove this out. Today, over two thirds of all American families own their own homes. Name another country where this exists! How do young families acquire their down payment for firs-home purchases? Despite the assumption that most get the money from relatives, a study showed that 71% got their down payments, not from borrowing, but from savings. Young people and first-time buyers are far from being driven out of the housing market. Forty four percent of today's home buyers are first-timers.
Q: What is the purpose of doing a legal
search of the title before buying property?
A: A home is a peculiar kind of purchase. You may be the only
purchaser involved, but others may also claim rights to the
property. For example, there may be an easement to restrict the use
of the land. There may be a tax lien against the property because
the owner did not pay taxes. A previously undisclosed heir of a
former owner may appear and claim a share of the value. These things
can and do occur. A title search of public records will check
for claims against the real estate. The best protection against
hidden problems is title insurance.
Q: How important is setting the correct selling price for a home that is listed for sale?
A: The selling price is by far the most important element in the whole sales process. You must be realistic when you put a price on your home. It can make the difference between a quick sale and weeks or even months of waiting. We have a saying in the real estate business: "A home priced right, is a home half sold." The key to fair market home pricing is to constantly monitor and analyze the market. We do this on a daily basis to make sure the price on your home will be the right one. The price that will SELL!
Q: What methods are used for appraisals?
A: There are three methods used in appraising: The comparison method determines the value according to recent sales of comparable properties. Location, size and improvements are used among other criteria. The cost approach concerns improvements and the cost of replacing and/or reproducing them. Depreiciation and land values are also taken into account. The Capitalization approach is used mainly for income property. The appraiser will capitalize present and future income. Appraisals are made for the purposes of loans, insurance, taxation, sales, estate, etc.
Q: How important is it to read a real estate contract before signing?
A: It is more important that you understand any contract before signing. For example, if the three words, "Restrictions of Record," appear, do some checking first. If you sign that contract, you have to take title subject to any restrictions, no matter how unusual they may be. You may find that you can be severely limited as to the kind of building you can construct. Know exactly what the restrictions are before putting your signature on that contract. As Realtors, we emphasize the prime importance of restrictions, especially regarding vacant land.
Q: I thought I had the cost of our next home figured out until I noticed that I forgot about closing costs. What are they?
A: Closing costs are costs involved in the sale of a home. They include such items as title search, insurance, land survey, mortgage and transaction tax, bank charges, deed, title and mortgage recording fees, legal fees, etc. It's important to keep closing costs in mind when figuring out the cost of a home. We (with the bank's help) always make a point of keeping our buyer clients informed of these costs right from the beginning. When it comes to financing, the one thing you don't need is a last minute surprise.
Q: Will I lose my privacy if my agent puts a For-Sale sign in my yard?
A: One of the oldest, yet most effective aids in selling a home is the For-Sale sign on your property. I refer to the sign done in a professional manner with your Realtor's name, address, and phone number on it. It aids those looking for a home in your neighborhood yet indicates that your property is being handled by a professional. The use of such a sign gives you and your agent a degree of control over your time and your privacy. A potential buyer will phone your agent who will arrange a personal inspection to suit your convenience.
Q: I have a sudden job opportunity overseas and am anxious to sell my home in the shortest amount of time possible. Do you have any suggestions?
A: There are some, but not many, who will drive by and see your sign. There are very few who will see your ad in the short time you have available. The best way to sell your home in a hurry is to call an office like ours. We have a ready pool of prospects, some of whom may be looking for a property just like yours. Many homes sell every week and do so because a Realtor knew precisely the needs of a buyer who has been looking for a long time.
Q: I have my eye on a home that's been on the market for several months. The price has been reduced a few times. It's just what I want and the price seems right. Should I avoid it on the premise that if it's been for sale this long, SOMETHING MUST BE WRONG!
A: The fact that the house has not sold for a long time may actually be to your advantage. If there are no structural defects and it meets your basic needs, there is a good possiblity that it is an excellent buy at this time. The home may have been overpriced at the outset and is now at or even below it true market value.
Q: I am trying to sell my home without a Realtor. I found a prospective buyer. There were meetings, discussins, forms and finally an agreement. Everything was fine except for the matter of getting the mortgage loan. This takes time. Time marched on. I kept checking with the buyer and got the same story. He can't seem to get the money. Days drag into months. Soon it became apparent that the buyer really didn't want to buy the home and is doing the money chase as an excuse. Where did I go wrong?
A: If you dealt with a Realtor, there would have been a contingency clause in the contract placing a time limit for obtaining the money.
Q: We want to obtain our next home. Don't know whether to buy or build a new one or buy an existing home. Any input?
A: A new house can be more or less custom made, at least with regard to decoration, personalized features, etc. However, with all new things there could be shake-down problems. There's also the matter of landscaping cost for lawns, trees, shrubs, etc. An older house often means lots of space. Rooms may be larger than in similarly priced new homes. Landscaping should be mature. But then there is the matter of repair and modernization costs. Come in and let's talk. We have choices in all categories.
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