Buyers
- Lake Oconee and NORTH ATLANTA REAL ESTATE BUYERS - YOUR QUESTIONS ANSWERED
There are many, many questions that you may have as a first or even second time home buyer. The fact of the matter is that this is a process that one doesn’t do every day, every week or even every year. So even if it’s not your first time, it’s natural that you may forget all that goes into the process.
Also, it can be a stressful roller coaster ride involving large sums of money! So it’s important to have a grasp on the facts and be familiar with some basics which can help you. You also want to make sure you have a realtor like Karen that you trust completely to walk you through the process and be in your corner one hundred percent.
- How Much Home Can I Afford?
This is an incredibly important first question that should not be skipped. Use Karen’s Mortgage Calculator to give you a reliable estimate on how much home you can afford. You can also go through the pre-approval process with a lender before you even start your search. Karen can also recommend some preferred lending experts to facilitate this. Think of it as a reality check and a vital step that could save you the heartbreak of “falling in love” with a house you can’t afford! It’s also a time saver; if you know your budget, you can hone in on your choices so much faster and use your time efficiently.
Here are general ratio formulas that can tell you how much you can afford for your home and mortgage.
Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income.
Your maximum debt load, including your mortgage payment, should not exceed 30 percent of your gross income.
Check out Karen’s recent blog post on how to find a lender for helpful ratings and tips.
- Can I Buy a Home and Sell My Current One at the Same Time?
The simultaneous Buy/Sell Equation is one of the most frequently asked questions, and one that is probably the most difficult to answer. Frankly no one, even the best agent (yes Karen Salter too!) has a crystal ball. The short answer is: of course you can. But it’s not for the faint of heart.
Scenario Number One
You fall in love with a home and buy it before you sell yours, and you could be overextended financially.
Scenario Number Two
The Pragmatic Choice. You decide to sell yours before you buy, which means moving twice, probably renting in the interim.
Scenario Number Three
The Simultaneous Move. The least stressful way is to Sell and Buy with a “sale contingency” in your contract. This means you only agree to buy a home if you can sell the one you’re in. This is a veritable timing puzzle that has to work well with EVERYONE. This can happen, and it’s really a matter of market activity and what the seller is willing to do to accommodate you.
- Should I Get Pre-Qualified?
Yes, you should!
- Pre-Qualified vs. Pre-Approved. What’s the Difference?
- How Many Homes Should I See Before Making an Offer?
This is completely an individual preference. However, if you have a time crunch or deadline… for instance, a rush to get the kiddos enrolled in their new school by fall, then obviously you are more limited. Also, there is such a thing as shortages of inventory in certain price points and certain markets. So you may not have as much to see. Some people see two or three and are ready to pull the trigger, others literally look at dozens of homes over the course of a year or more.
- What Do You Think the Seller Will Accept as a Fair Price?
This is a tricky one too. How long has the house been on the market? Is the seller highly motivated? Is it overpriced? However, a blatant low ball offer can be insulting and can backfire. Typically 5% OFF the list price is not considered bad form. You can also sweeten the pot with a quick close and other attractive offer elements.
- How Do I Know if the Property is a Good Deal?
Do your research. Agents like Karen will come prepared with comparables (comps) so you can see what has been happening over time with property values in the area.
- How Quickly Can I Close?
- Should I Get a Home Inspection?
Absolutely YES! The house may look great, but there is NO substitute for a trained professional to evaluate condition of the big ticket items that could be compromised. The roof, electricity, heating and air, plumbing are all on the home inspector’s list and can offer you peace of mind and an important bargaining chip.
- What If I Change My Mind?
You can always back out. However, as with most arrangements, there could be a cost associated with that. Earnest money is the cash a buyer (you) must put down to secure the offer. This amount is generally 1%-2% off your offer. So…if you walk away, you may be walking away from your earnest money too.
However, there are some ways to walk away with your earnest money. Contingencies are your friends; home inspections and appraisals are your what if’s. You can get your earnest money back if the home does not pass inspection. Also, if your offer contains the clause, “subject to appraisal.” Both are valid reasons and justify backing out, changing your mind, and taking your earnest money with you.
"Working with Karen was a great experience. Her knowledge of the local market proved invaluable to us in the search for a new home. We spent a year trying to navigate the area to find a "fixer-upper" and once we met with Karen we were confident that her advice would be helpful. She was willing to meet us at any time and made the whole experience easy."
