The seller pays a pre-negotiated commission to the listing agent, who in turn pays the buyer’s agent through cooperation under the multiple listing service (Realtracs). The buyer’s responsibility is to hire the REALTOR® that provides the most value, expertise and trust.
Closing costs are expenses incidental to the sale, such as appraisal fees, loan fees, recording fees, etc. They are usually between 2-3% of the home’s price and can be negotiated in the contract.
Yes. In today’s hot market, if you are not paying cash for your home, we recommend getting pre-approved with a local lender. You need to be pre-approved and/or have a ‘proof of funds’ letter to be submitted with your offer. Many offers won’t be accepted without an accompanied pre-approval letter.
Yes, you really need a home inspection. While a home inspection can cost upwards of $500-$1000 depending on the size of the home you are purchasing, we want you to know what you are buying. It is an unbiased evaluation of the physical condition of the home provided by a professional who does not benefit financially from a successful closing.
Earnest money is a deposit the buyer gives when making an offer on a property. If the offer is accepted, the buyer has a certain amount of time (stipulated in the contract) to provide the earnest money via check or wire transfer.
Remember this acronym >> PITI. This stands for principal, interest, taxes and insurance – the sum components of a mortgage payment. PITI represents your total monthly mortgage payment, and helps both the buyer and the lender determine the affordability of an individual mortgage.