What is the first step in the home buying process?
Getting pre-approved through a mortgage lender. Why? You need to know how much you can borrow, in order to know the price point of a home you can afford.
I'm a home buyer. How much do I have to pay you to help me buy a home?
Approximately $0. Traditionally, the Seller pays for my commission as the Buyer's Agent, as well as their Listing Agent's commission. All of my Buyer Agency agreements are structured such that you are never on the hook for paying me.
How will you find potential buyers/renters for my property?
According to the National Association of Realtors, 87% of home purchasers used an agent. As a result, my primary focus is marketing directly to Realtors, as there is an 87% chance that the buyer of your property will have found your property via their agent. I do so through a variety of tactics, including but not limited to, social media, the MLS, attending Realtor only meetings, email blasts, etc.
You’ve Got Questions, I’ve Got Answers..
How long does it take to buy a home?
If you're paying with cash, the whole search and under contract to close period could take less than 2 weeks. If you're getting a loan, the time varies! The pre-qualification and search period typically lasts 30-60 days, while the under contract to close period is typically 30 days or less. Altogether, the average is about 9-18 weeks (60-120 days). Given the situational differences, it is best to consult with your Realtor on your particular timing needs and goals sooner rather than later.
What is a Seller's market?
A Seller's market is when a Real Estate market's conditions favor Sellers. Indicators of a Seller's market include:
Less than 5 months of housing inventory (means demand is high
and supply is low!)
Increasing home values
Low number of days on market
Interest rates moving downward (cheaper borrowing of money increases Buyer demand/competition)
What is a Buyer's market?
A Buyer's market is when a Real Estate market's conditions favor Buyers.
Indicators of a Buyer's market include:
More than 5 months of housing inventory (means supply is high
and demand is low!)
Decreasing or steady home values
High number of days on market
Interest rates increasing
What is an ADU?
ADU stands for Accessory Dwelling Unit. An accessory dwelling unit is a secondary living space on a lot zoned for a single-family residence. For example, an ADU may take the form of a finished basement with a private entrance, a mother-in-law suite above a garage, etc.
When is the best time to buy?
There are a few sweet spots throughout the year where conditions become slightly more favorable for Buyers. However, there are many factors that come into play for your unique situation, such as an existing lease terms, present and future interest rates, what's going on in the market, etc. In short, it is largely based off of your circumstances and goals!
When is the best time to sell?
There are a few sweet spots throughout the year where conditions become slightly more favorable for Sellers. However, there are many factors that come into play for your unique situation, such as your timing needs, your moving situation, etc. In short, it is largely based off of your circumstances and goals! However, Denver is currently in a strong Sellers' market, meaning that right NOW is a great time to sell.
What is earnest money?
Earnest money is similar to a deposit when renting a place. It is made in good faith to demonstrate to the seller that the buyer’s offer is legitimate. As a real estate agent, you should ask your client for the earnest money as a deposit in the form of a check or cash. The amount is usually 1-2% of the selling price and essentially takes the property off the market. The money also gives the buyer extra time to conduct a title search, get an inspection and property appraisal, and financing.
Should I do a home inspection?
Yes! Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected. Home inspections bring peace of mind to one of the biggest investments of a lifetime.
How much do you need for a down payment?
The national average for down payments is 11%. But that figure includes first time and repeat buyers. Let’s take a closer look.
While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. What’s more, some programs allow down payment contributions from family members in the form of a gift.