I want to buy a home, what’s the first step?

Talking with a knowledgeable real estate agent can help you but getting a pre-approval will guarantee you start your home-buying process off right.

How long does it take to buy a home?

From start (searching online) to finish (closing escrow), buying a home takes about 10 to 12 weeks. Once a home is selected and the offer is accepted, the average time to complete the escrow period on a home is 30 to 45 days (under normal market conditions). Though, well-prepared home buyers who pay cash have been known to purchase properties faster than that.

Do I need a certain credit score?

Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender’s risk.

What steps should I take to prepare my home for sale?

There are several things you need to know before listing your home for sale!  A frequently asked question from home sellers before listing is what steps should be taken before listing their home.  Not properly preparing a home for sale can put a home owner at a huge disadvantage.

The expression “You never get a second chance to make a first impression” is absolutely true when it comes to selling a home.  When selling a home you must be sure that your home presents itself in the best possible light.  Making sure clutter is at a minimum, freshly painting rooms, installing new carpeting, or ensuring odors are non-existent are just a handful of things that should be done before listing your home for sale.

How do you determine how much my home is worth?

There are a handful of methods that realtors use to determine the value of a home.  The most common method to determining the value of a home is by completing a comparative market analysis.  A comparative market analysis is an in-depth evaluation of recently sold “comparable” homes in the past 6-12 months.  A comparative market analysis, also known as a “CMA,” isn’t a crystal ball that determines what a home will sell for, however, if performed by a top Realtor, it should greatly narrow the sale price range.

A professionally completed “CMA” will take into account many features of not only a home but also the local area and neighborhood.  Considerations that a professionally completed “CMA” include, but is not limited to:

1. Square footage

2. Number of bedrooms

3. Number of bathrooms

4. Upgrades to kitchen

5. Window quality

6. Roof age

7. Lot features

8. Location; primary or neighborhood street?

9. Style of residence

10. Flooring type

How much commission do you charge?

Commission is negotiable, period.  Don’t let any Realtor tell you otherwise.  This being said, the saying “you get what you pay for,” often is true when it comes to real estate.  If a Realtor offers a lower commission, do you think they will negotiate aggressively on your behalf when it comes to the price?  Also, if you were working for a reduced hourly wage from your “normal,” would you work as hard as you normally would?  The answer is likely not.  Choosing a Realtor based solely on the fact they offer the lowest commission amount is a top mistake made by home sellers when choosing a Realtor to sell their home.