You want answers? You deserve answers. We got answers.
“Questions that buyers
frequently ask us.”
Q. What is title insurance and do I need it?
A. Basically, title insurance helps ensure that you have
clear title to the home you’re purchasing and provides
insurance protection in the event anyone makes a claim
to your property. A title search is the primary
component of “due diligence,” a process that will be
started either by our attorney, if you are using one, or
by the title company you choose. The title search
determines whether the seller actually owns the property
and if there are any claims against it.
Q. What happens if the house I want to purchase
does not appraise at the amount expected?
A. If the house doesn’t appraise at the amount expected,
other alternatives are typically found. A second
appraisal may be sought, the buyer may be willing to put
more money down, the seller may adjust the price or
offer other concessions, or the two sides may negotiate
to split the difference between them.
Q. Is there anything I can do to increase my
chances of having an offer accepted?
A. In addition to making a strong offer and providing
that you are well qualified, it’s very helpful to make a
human connection. Most sellers, whether they realize it
or not, want to believe they are selling to someone who
really cares about their home. For that reason, it is
best to have your offer presented in person. Your real
estate agent can then make a case for you. You can also
send along a personal letter to the seller. By
describing your situation and expressing your feelings,
you can make your offer more compelling.
Q. How many homes should I plan to view and how
should I make the final decision?
A. Generally you should view a number of homes so you
can become familiar with what you can expect to get for
your money. When you find a home you really like, it’s a
good idea to go back and look at it at a different time
of day. This will give you greater insight into what it
will be like living in the home full time.
Q. How can I be sure it’s a good time to buy?
A. Since homes traditionally appreciate over time,
whenever you can afford a first home - or a home that
meets your needs better than the one you’re in – it’s a
good time for you to buy. Often, home prices rise when
interest rates decline and vice versa, so the best time
to be a buyer occurs when rates are at or near their
historical low at the same time that a large supply of
homes for sale is working to keep prices more
negotiable.
“Questions that sellers
frequently ask us.”
Q. Why shouldn’t I price my house a little high,
since I can always drop the price later?
A. That’s a strategy that sounds good – but, in fact, is
more likely to result in a lower price. Here’s why. The
first few weeks a house is on the market is when it will
have the most activity. If a house is overpriced, it has
to compete with houses at that higher price level, which
are almost certainly larger or have newer/more luxurious
features. So the overpriced home is unlikely to attract
an offer. Worse yet, those first weeks are when real
estate agents preview the house. If it’s overpriced,
they may not even bother to show it to their buyers.
Eventually, the seller will have to drop the price – and
may end up with an even lower price because buyers will
wonder why the house has been on the market so long and
may factor that into their offer.
Q. What is meant by the term “contingency” in a
sales contract?
A. Sales contracts typically contain several
“contingency” clauses, or stipulations that the sale is
subject to. For example, with a mortgage contingency, if
the buyer is unable to obtain financing within the
specified time frame, neither the buyer nor the seller
is required to complete the purchase. Among other common
provisions in the “subject to” section are termite and
other inspection issues and the purchaser’s need to sell
a current home first.
Q. What is an escape clause?
A. An escape clause, also known as a kickout or knockout
clause, is a provision that allows the party to void the
contract. For example, the seller may retain the right
to look for a more favorable offer, with the original
purchaser retaining the right, if challenged, either to
firm up the first sales contract (such as by waiving a
contingency) or to void the contract. As another
example, sellers might insist upon an escape clause in a
contract that hinges on the buyers’ selling their home.
Q. As a seller, what certifications am I
responsible for?
A. Your municipality will likely require certifications
that your home has working smoke detectors in
appropriate locations. Carbon monoxide detectors are
mandated in some areas. Many communities require a
Certificate of Occupancy before a new owner can move in.
Your WEICHERT, REALTORS® - Caton Properties Sales Associate can advise you.
Q. What if my house doesn’t sell in a reasonable
amount of time?
A. While it only takes one buyer to purchase your house,
it may require patience until that buyer comes along. If
relatively few potential buyers are being shown your
home, despite strong marketing efforts, it could be a
problem with pricing. Your WEICHERT, REALTORS® - Caton Properties Sales Associate will
update you on local home sales and price trends so you
can determine whether a price adjustment is necessary in
order to attract a larger pool of buyers.
Q. What should I do if my appraisal doesn’t go
through?
A. It may reassure you to know that your WEICHERT, REALTORS® - Caton Properties Sales
Associate will supply to the appraiser “market
comparables” that will help substantiate your home’s
selling price. Occasionally, however, the appraised
value may fall short. Should that happen, getting a
second appraisal is one possibility. Alternatively, in
many cases the buyer will be willing to make up the
shortfall, although you might have to make concessions,
such as leaving behind appliances or other items you
planned to take with you. Other possibilities are that
you and the buyer decide to split the difference, or you
might agree to adjust the price to the appraised level.
