|
|
|
|
Buyers
FAQ’s –Frequently Asked Questions
1.
Q. Why Choose Neil Metal ?
A. As a member of Team Klemm, I have the luxury of having a support staff of 19. This enables me to focus on the needs of my clients as opposed to being stretched in 20 different directions as with a solo agent. In addition Team Klemm is the number #1 team in home sales in Northern California. We live where we work and are familiar with the city, schools and attractions.
2.
Q. Is it best to go through the listing agent of the property?
A. There is a lot of debate concerning this question, as many buyers feel that if they are to go through the listing agent, they will be able to receive a break on the price of the home. This notion is completely false and should not be used as a negotiating tool. The agent you choose should be based on experience, character and their ability to get the job done for you, regardless of their relation to the seller of the property.
3.
Q. What is buyer agency?
A. This occurs when a buyer and Real Estate agent sign an agreement stating the agent will have a fiduciary duty to look out for the buyers best interests in the purchase of a property.
4.
Q. Why should I use an agent, I can get a better deal approaching the seller direct?
A. This question is not posed as often as the others, as the majority of buyers and sellers realize the importance of having representation by a real estate agent. This is not only important for negotiations, but also from a legal standpoint. To attempt a home search and subsequent purchase on your own as a buyer will severely limit your options. Essentially, you will be limited to FSBO’s as any home that is listed with an agency has a binding contract and homeowners that realize the importance of hiring a professional.
5.
Q. Why can’t I wait to get pre-approved until after I view some homes?
A. You can look first and speak with a lender second, but you are definitely placing the cart before the horse. Purchasing a home is the single largest investment that most of us will make in our lifetimes and should be viewed as a process, NOT an event. As a pre-approved buyer, you will know what price range you should be looking in and the amount of your monthly payments. In addition, you will bring much more to the table when submitting an offer to a seller. A buyer who has not yet been pre-approved will not be taken seriously.
6.
Q. What is FICO scoring and how does it affect me?
A. A buyers FICO score is generally determined by taking the average score from three separate credit reports. This score will determine a buyers borrowing ability and has a profound effect on interest rates and the ability to qualify for Zero Down programs. A score above 720 is considered excellent and below 600 may prohibit you from being able to obtain a mortgage. Some factors that affect FICO scores are a buyers amount of revolving credit, balances in proportion to maximum limits, payment history and collections history. To find out your FICO score it is best to consult a mortgage broker who can obtain this while pre-qualifying you for a home loan.
7.
Q. How much under the asking price should I offer for a property?
A. This is the point at which you must rely on the honesty and abilities of your real estate agent. The best way to approach this will be to find a property that you are interested and then ask your agent to run comparable sales in that immediate area. After review of the “comps.” you can then best determine the market value of the home. Other factors to take into consideration are the type of market you are in. Ask your agent if it is a “buyers” or “sellers” market. Also you will want to determine if there are any additional offers in on the home that you will be competing with.
8.
Q. What is a “buyers” market?
A. A “buyers” market occurs when the supply of homes exceeds the demand by buyers. In this type of market, the amount of inventory swells and prices begin to fall. The key is to catch the homes at the bottom of the price drop, before prices begin to rise again.
9.
Q. What is a “sellers” market?
A. A “sellers” market is the complete opposite of a “buyers” market. This occurs when the supply of homes cannot keep up with the demand. Inventory is down and the prices begin to swell. You will see many homes in multiple offer situations, as there may be only 5-6 homes in a particular price range for 10-20 buyers.
10.
Q. My Mortgage Broker says that if we find the property, he will write the contract for us. Why not use him?
A. This answer is very simple, you should use a specialist in each field when purchasing a home. Just as I would not try to get you approved and process your loan, a mortgage broker should not be attempting to negotiate on your behalf in a market most know very little about. Whatever the incentive they are offering it will almost always end up costing you more due to missed opportunities. To put it plainly, the mortgage broker is only looking to further line their pockets at your expense.
11.
Q. How much will it cost me to purchase a home?
A. Nothing. All real estate commissions are paid by the seller of the property. The only fees that buyers need to consider are the closing costs of their loan, which often times can be offset by building them into the purchase price for the home.
Have a question that you do not see addressed here?
Type in your request and click “SUBMIT” and answer will be sent to you via e-mail promptly.
Or you may call direct at (209) 830-0000 and I will be more than happy to assist you.
|
|
|
|
 |
