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Here is a collection of frequently asked questions that I have put together to help you in buying or selling a home. If you have any other questions, not listed here, feel free to call or send an e-mail. By clicking on any of the questions below, you may view the answer.
Buyers
How do I know how much to offer for a home? I do not want to overpay!
This is where a skilled agent who is good with negotiations becomes valuable. There are many factors which can assist in determining an offer price. We research the following areas:
- Seller's Motivation
- Neighborhood Sales Activity
- Day's on Market
- Competition
- Seller's Loan Amount
and MUCH MORE! We have several unique ways to determine the right price to offer. Make sure you are working with a Skilled and experienced agent.
How much do you charge when I buy a home from you?
The buyer pay's NOTHING - $0!!! The seller pays 100% of our fee.
What is mortgage insurance?
Mortgage Insurance, often referred to as PMI, is extra insurance that mortgage lenders require from homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, buyers with less than a 20 percent down payment are normally required to pay PMI.
What is the difference between a "Short Sale" and a "Bank Owned" home?
A short sale is a home in which the potential seller owes more than the home is worth. The home's lender will have to agree to forgive some of the home loan for the home to close escrow.
A Bank Owned home is a property which has been foreclosed upon by the bank. The seller is no longer involved in the property and all negotiations are directly with the bank.
What is the minimum down payment allowed?
Even in this market, you can still buy a home for $0 down.
VA = $0 Down
FHA = 3.5% Down
Conventional = Min 5% Down
If you are interested in obtaining a home loan, I would be more than happy to put you in touch with one of San Diego's top lenders.
What is the typical escrow length?
90% of the escrows we deal with are between 30 and 60 days. Although it is not uncommon to see a 90 - 120+ day escrow on some of the more complex transactions.
General
What is a "Notice of Default"?
A "Notice of Default" (N.O.D.) is the first step in the foreclosure process. An N.O.D. is given to borrowers who have failed to make their payments by a predetermined deadline set by the lender. The N.O.D. states that if the money owed is not paid by a certain date, that the lender can pursue foreclosure proceedings.
Sellers
How long should I expect my home to be on the market?
In even the worst markets, homes that are priced right will sell in 30 days or less. The average market time is between 60-80 days during most normal markets.
How much does it cost to sell a home?
Commissions are not set by law and are different on every transaction. There are many factors that come into play when determining a commission rate. The average commission for residential real estate is 5-6%. Keep in mind, you will also have escrow, title, and other misc. fees. We provide our clients with a detailed estimate of all the fees down to the exact cent.
Once I receive an offer on my home, how long do I have to respond?
The standard response time is 3 days unless otherwise requested.
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