Answer:
You have several ways to determine the value of a home.
An appraisal is a professional estimate of a property's market value,
based on recent sales of comparable properties, location, square footage
and construction quality. This service varies in cost depending on the
price of the home. On average, an appraisal costs about $300.
A comparative market analysis is an informal estimate of market value
performed by a real estate agent based on similar sales and property
attributes. Most agents offer free analyses in the hopes of winning
your business.
Question: How do I get the real scoop on homes I am looking at?
Answer:
Home inspections, seller disclosure requirements and the agent's experience
will help. Disclosure laws vary by state, but in North Carolina the law
requires the seller to complete a Residential Property Disclosure Statement.
Click here to see this form in PDF!
Here is a summary of the things you could expect to see in a disclosure form:
* In the kitchen -- a range, oven, microwave, dishwasher, garbage disposal,
trash compactor.
* Safety features such as burglar and fire alarms, smoke detectors, sprinklers,
security gate, window screens and intercom.
* The presence of a TV antenna or satellite dish, carport or garage, automatic
garage door opener, rain gutters, sump pump.
* Amenities such as a pool or spa, patio or deck, built-in barbeque and fireplaces.
* Type of heating, condition of electrical wiring, gas supply and presence of any
external power source, such as solar panels.
* The type of water heater, water supply, sewer system or septic tank also should
be disclosed.
Sellers also are required to indicate any significant defects or malfunctions
existing in the home's major systems. A checklist specifies interior and
exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks,
floors, doors, foundation, as well as the electrical and plumbing systems.
The form also asks sellers to note the presence of environmental hazards, walls
or fences shared with adjoining landowners, any encroachments or easements, room
additions or repairs made without the necessary permits or not in compliance with
building codes, zoning violations, citations against the property and lawsuits
against the seller affecting the property.
Also look for, or ask about, settling, sliding or soil problems, flooding or
drainage problems and any major damage resulting from earthquakes, floods or
landslides.
People buying a condominium must be told about covenants, codes and restrictions
or other deed restrictions.
It's important to note that the simple idea of disclosing defects has broadened
significantly in recent years. Also, the home inspection and home warranty
industries have grown significantly to accommodate increased demand from cautious
buyers. Be sure to ask questions about anything that remains unclear or does not
seem to be properly addressed by the forms provided to you.
Question: How do you find a good agent?
Answer:
Getting a recommendation from a friend or work colleague is an excellent way to find a good agent, whether you are a buyer or a seller. Be sure to ask if they would use the agent again.
You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood.
If you are a buyer, you don't usually pay for your agent's services (in the form of a commission, or percentage of the sales price of the home). All agents in a transaction usually are paid by the seller from the sales proceeds.
If you are a seller, you should interview at least three agents, all of whom should make a sales presentation including a comparative market analysis of local home prices in your area. The best choice isn't always the agent with the highest asking price for your home. Be sure to evaluate all aspects of the agent's marketing plan and how well you think you can work with the individual.
Question: How do I prepare the house for sale?
Answer:
First and foremost, put it in the best condition possible, especially if you are in a market with few buyers and lots of homes for sale. That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it. Next, work on your home's curb appeal. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door. Other quick fixes that don't cost a lot of money but can help you get top dollar for your home:
Clean the windows and make sure the paint is not chipped or flaking.
Be sure that the doorbell works.
Clean and freshen up rooms, furnishings, floors, walls and ceilings.
Make sure that bathrooms and kitchens are spotless.
Organize closets.
Make sure the basic appliances and fixtures work. Replace leaky faucets and frayed cords.
Eliminate the source of any bad smells, such as the kitty box. Use air freshener or bake a batch of cookies before your open house to ensure that the house smells inviting.
Invest in a couple of vases of fresh flowers to place around the house and next to any information about the house you have prepared for buyers.
Question: Why should I use a real estate agent?
Answer:
A real estate agent is more than just a "sales person." They act on your behalf as your agent, providing you with advice and guidance and doing a job - helping you buy or sell a home. Due to the fast changing market, the data on available listings is not 100% accurate. There are times when you need the most current information about what has sold or is for sale, and the only way to get that is with an agent.
There are two types of agents, "Buyer's Agents" and "Seller's Agents". It used to be common for all parties involved to work for the seller, hence the term "Seller's Agent". Nowadays, you will most often find a different type of agent, the "Buyer's Agent". If you are in the market to buy, it would be advisable to use a Buyer's Agent. They can make recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind. If you happen to be working with a Seller's Agent, never disclose to them the top dollar you are willing to pay for any property. Keep it narrowed down only to things that you would tell the seller directly.
