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Can the seller pay my closing costs on any home? |
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Yes, the
seller can pay closing costs on any home.
However, keep in mind that the seller is looking
to net as much money as possible. If they
have agreed to paying the buyer's closing costs it
basically becomes a reduction in proceeds to them
at closing. Typically the closing costs are
negotiated along with the contract when the offer
is made. |
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What is a HUD Home? |
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A HUD
home is a Governement foreclosure. Any home
that was purchased using FHA financing that is
foreclosed on ultimately becomes a HUD home.
These sale of these properties is handled through
a third party Asset Management company called
MCBREO. New HUD listings are posted every
Friday on their website, MCBREO.com |
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Is it better to buy a For Sale by Owner or a listed
property? |
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For Sale
by Owner properties are homes that are being
marketed and sold direcetly by the seller.
Typically in an attempt to save money on Realtor
fees. Listed properties are homes where the
seller has contracted with a real estate brokerage
to help promote and sell the property. If a
buyer chooses to purchase a property that is being
sold directly from the owner, they do so
understanding that the seller has no professional
representation. The buyer however, can elect
to have a real estate agent help them throughout
this process. Some buyers feel that they can
get a better deal on the home if they buy directly
from the owner and in some situations this can be
the case. Unfortunately, many sellers will
cut out the Realtor fees and still advertise the
property at fair market value or above in hopes of
making the money they would otherwise be paying to
a real estate agent. If you are a first time
homebuyer, it is recommended that you get
representation when working with FSBO's. |
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How can I know what the value of a home is? |
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A home's
value is relative to the current market
conditions. The best way to determine what a
home is worth in today's market is to look at
recent comparable sales. Homes that are
similar to the one you are considering that have
sold in the last 90 to 120 days. Data for
these sales are accessible to Realtors throught
the Multiple Listing Service (MLS). Other
means of discovering what homes have sold for are
available through websites like zillow.com and
local county recorders websites. |
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What is the best way to determine an offer price? |
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The best
way to determine an offer price on a property that
you are interested in is by looking at what
similar homes in the area have sold for.
Several factors play a part in helping determine
what you should offer on a home such as market
conditions, seller's motivation, repairs and
upgrades required, and the overall condition of
the property. |
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Is it better to do a Home Inspection or buy a Home
Warranty? |
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Home
inspections and Home warranties are two completely
different options. A home inspection
involves having an experienced professional
thoroughly inspect many different aspects of a
home's current condition. A good inspector
will always find issues with any home, regardless
of age or appearance. The upside of getting
a home inspection is knowing what issues a home
has before you buy it. Often, buyer's will
re-negotiate with the seller after a home
inspection to either have the repairs fixed or
provide an escrow at closing. A home
warranty is basically an insurance policy which
covers items that a "hazard insurance" policy
wouldn't cover. Items such as a furnace, hot
water heater or a home's plumbing. Both are
good ideas and should be seriously considered
prior to the purchase of any home. |
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Does the seller have to make repairs that the
inspector finds? |
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A seller
is not required to make any repairs.
However, if after a home inspection, there are
items that the buyer wishes to have remedied prior
to closing, they may make a request to the seller
in writing that the repairs be completed and make
the sale contingent upon the seller complying.
At this point the repairs become a negotiation.
In most cases, sellers are willing to comply with
reasonable repairs, especially if they are items
that they feel will have to be repaired regardless
of who buys it. |
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What if the home doesn't appraise for what I
have agreed to pay? |
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The
standard state approved real estate purchase
contract addresses the issue of a home not
appraising for at least the purchase price.
If the purchase of the home is marked as
contingent on the home appraising for what the
buyer has agreed to pay, then the buyer is not
contractually obligated to purchase the home in
the event that the appraisal does not meet the
price. In this scenario, the buyer may
either cancel the contract without penalties or
re-negotiate the price with the seller. |
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