Why shouldn't I price my house a little high, since I can always drop the price later?
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 price level, which are almost certainly larger or have newer/more luxurious features. So the overpriced home is unlikely to attract an offer. Worst yet, those first weeks are when real estate agents preview the home. 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.
What happens if the home inspections reveal a serious problem?
Generally, if the home inspections reveal a serious problem, the buyer who has a properly drafted contract can get out of the contract. What usually happens, however, is that the cost of remedying the problem becomes an issue of negotiation. This is where the negotiating skills of the seller's sales associate can be critical in resolving the issue and keeping the home sale moving.
What should I do if my appraisal doesn't go through?
It may reassure you to know that your Weichert 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, the buyer and seller can negotiate the difference.
As a Buyer, how can I check my credit rating to see what I could qualify for?
Your credit rating is based on a combined score generated from three credit bureaus who look at your credit history, amount of credit available, and recent inquiries to determine what's called your FICO score. A smart way to go is to have your Weichert Gold Services Manager check your rating for you and, if appropriate, suggest ways for you to improve your credit score. For a small fee, you can get your score or review your credit report by going online to www.myfico.com or contacting the credit bureaus directly at: www.equifax.com, www.experian.com, www.transunion.com.
You may also contact our Premier Lender, Ludy Callaway with National City Mortgage, at Ludy.Callaway@ncmc.com.
Buyers often choose to pay a one-time charge called mortgage "points" in exchange for a lower interest rate. Usually paid at closing, each "point" costs 1% of the loan amount. The lower rate reduces the monthly mortgage payment, and points paid at closing on a purchase are usually tax deductable (speak with your tax advisor). Monthly savings will often exceed what was paid in points in just a few years' time.
Basically, title insurance helps assure that you have clear title to the home you are 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 by either by your attorney or the title company. Title insurance is not the same as your homeowner's insurance, which protects your home against damage.
Who is responsible for paying for home inspections?
Typically, all home inspections are at the buyer's expense. This includes a general home inspection, structural inspection, roof inspection, HVAC inspection, chimney inspection etc. The termite inspection is negotiable on who pays for the actual inspection itself. This is to be discussed with your Weichert real estate representative.
