One of the reasons I love my job is that I get to be a part of people’s exciting new paths in life! Whatever past situation you are moving from, buying and selling a home is opening a door to a new chapter. Before you start opening random doors, here are some answers to questions I get asked every day.
BUYERS:
Should I Rent or Buy?
As you look at building your future, the benefits of owning a home are endless! With flexible, low-cost loans and programs out there you can easily turn your home ownership dreams into reality and fast track your savings for retirement. Here’s a breakdown of how you can quickly build equity over the next five years.
What do I need to get pre-qualified for a home?
Provide your Mortgage Loan Consultant with the following information and documentation so they can assess your debt-to-income ratio, projected monthly mortgage payments, and affordability.
For all borrowers: Driver’s license, 2014 & 2015 W2s, Pay stubs for last 30 days, two most recent monthly checking and savings statements, 401k/IRA/Pension/Stock. If you currently own real estate, are self-employed, have social security/disability income, or have pension/retirement income-you’ll likely need to provide additional documentation.
How long does the process take?
If you are financing your home, the loan process typically takes 30-45 days. With the recent TRID laws in place as of October 2015, properties are in escrow for about 45 days. If you have added contingencies, i.e. need to sell your home first, it is common to see 60-day closings. However, note that you can close in 30-45 days and the Seller and or Tenant may be open to renting the property back at a daily rate agreed to in the contract. Remember to build in time to get pre-qualified, find the right home, and put in an offer. Once both parties agree to terms, the clock starts ticking. If you’re paying with cash, you can close in as early as one week. Talk to your favorite Realtor and they can help you customize a plan to meet your short and long-term goals.
SELLERS:
How much is my home worth?
Many factors determine the market value of your home. Yes, market value. Ask your favorite Realtor to run a CMA (Comparative Market Analysis) that pulls data of active, pending, and sold homes dating back six to twelve months to gauge your competition, what price range is enticing Buyers to make offers on, and ultimately what your neighbors and/or other similar properties are selling for. Keep in mind your Realtor needs to physically view the property to assess the condition, neighborhood, etc. Also, remember that appraisals are likely a part of the process to ensure the property is being sold at fair value to both parties.
What improvements and repairs should I make to my home before listing?
The majority of today’s buyers want a turn-key home, with minimal effort required in major remodels or repairs. If it’s broke, then you should probably fix it. Clean it from the inside out. That means taking boxes and putting things you don’t use anymore. Purge and get rid of things you know you won’t be taking with you on your next chapter. Trust me, it will feel good! Then go through and clean the house, make sure it smells good and feels decluttered. Pretty flowers and a new door mat never hurts-surprisingly buyers spend more time at the front door than any other room in the home, so make sure your curb appeal is simple and nice. Your Realtor can give you additional tips on staging and prepping your house so that it’s ready to go on the first day it goes live on market.
Shanon Pewtress
Real Estate Broker, Licensed in the state of Oregon
Published Medford Sneak Preview Magazine - March 2015
Shanon holds an MBA in International Business, loves writing in her “At Home with Shanon” column that has been delivered to 47,000+ homes in Medford since 2014, has appeared on the Real Estate Radio Show, and was also featured on A&E TV network’s Real Estate Reality TV show.