Frequently Asked Questions on Property Transactions
Questions about selling
First impressions matter in business, but especially in real estate. Anyone walking through a house or touring it virtually will be looking for ways to pass or negotiate down on the price. You must help clients make sure that the HVAC, plumbing, and electrical system all work properly. Each room should look clean and decluttered with no overt damage insight.
Getting a pre-sale home inspected is never a bad idea, especially to get your client the best price for their home. Some homebuyers will feel uncomfortable purchasing a house without seeing a home inspection. Many will often hire their own inspector. It’s better to be safe than sorry.
Once the house is on the market, it may take anywhere from four to six weeks to sell. However, if the market is fairly hot, a seller could see their house off the market within a week. On the flip side, if there is a lull in the market or issues arise such as negotiation, lack of exposure, or house conditions then the property can sit on the market for months.
The selling price of a house fluctuates depending on multiple factors. The most common ones are the neighborhood and what similar-sized houses are currently selling for. Also, look at the age and condition. Do major repairs need to be done? If so, that might lower the property. And again, the market matters. Like everything else, home prices vary depending on supply and demand. Your job as a realtor is to best inform your clients about these different factors and accurately list their house.
A public tax assessor gives the assessed value for a property. This assessment typically occurs yearly for taxation purposes. The fair market value is an agreed-upon price between a willing buyer and seller. There is usually a difference between the assessed value and market value. For homeowners, the assessed value is a double-edged sword. Because, if their annual assessed value increased then their yearly taxes will also be raised. On the flip side, when selling a house it can help boost its market value.
In a real estate transaction, the agent is usually paid by the seller via commission as opposed to a flat free. Typically, a real estate commission fee is 5–6% of the home’s final sale price. In many cases, both the buyer’s agent and the seller’s agent split the commission fee 50/50. Both receiving 2.5–3%. As a broker or agent, you can use this easy to use real estate commission calculator to determine your commission fee. Also, know that some real estate agencies will work at a discounted rate of around 3% or for a flat service fee. The discounted rate and flat fee can be cheaper, but can also result in a lower quality of service.
Yes, almost everything in real estate is negotiable. Typically, there is a difference between a home’s list price and how much it actually sells for. The current market’s saturation will determine how much wiggle room there is for negotiation. If you’re on the buyer’s side, expect the house to be able to be purchased for less if there is a lower demand than supply in the market. Vice versa, if you’re on the seller’s side expect it to usually sell for less. That being said, you never know who else is house hunting. Sometimes people will swoop in and offer the exact asking price.
Questions about renting
The first thing you should do before searching for rental homes is decide on an ideal budget. Consider how much of your income goes towards bills and what you have left over at the end of each month. Also, remember that when first moving in, you will need to account for at least a deposit and first month’s rent.
In case you haven’t already, go view the properties you are interested in. Your landlord should be more than willing to set up a time for you to walk through the house. Make sure you fill out all the proper paperwork and understand the terms of your renter’s application before signing anything.
Any prospective landlord will want to ensure that their tenant will not bring problems to their rent house. They want to make sure that you pay your rent on time, and that you will care for and maintain their property.
This process is not something that should worry you. As a potential tenant, you will first be required to give details on your income and employer. You should also provide any previous addresses and expect your landlord to contact utility companies to verify your payment history is in good standing. This is simply a way for the landlord to ensure that you can commit to the responsibility of monthly rental payments.
Your prospective landlord will want to ensure that you are who you say you are, so you will need proof of identification. They will likely require proof of residency in the form of a utility bill from within the last three months. As proof of identification, be prepared to show your driver’s license or passport.
Putting down a deposit helps show good faith to your landlord that you will keep your new rent house in good condition. This fee also ensures that, should you cause any wear and tear to the home during your stay, it can be corrected. The deposit will be held for the duration of your tenancy by the landlord and most likely returned if the property was left in good shape.
When it comes to repairs, your landlord is mostly responsible for maintaining the house and ensuring it stays in proper working order. To be safe, make sure you know who you should call in the event something breaks before and after you move in. You may need to contact the landlord directly, or they could have a maintenance man or team available to call. However, if you cause damage to the property, you may be responsible for the cost of the repairs.
Changes like painting or installing new windows to your rent house will generally require direct approval from your landlord. If this is something you want to do, make sure you get permission in writing. Most landlords have no issue with you hanging things on the wall or using your own furniture to decorate. Be careful when using things like large paintings or curtain rods, however, as these can cause more damage to walls than typical decorations.
This subject is highly dependent upon the individual landlord and property. Some houses are pet friendly and some simply are not, while others may enforce breed restrictions or not allow certain species. If the property does allow pets, you will likely be required to pay an additional pet deposit to cover any damages your pet may cause. Look for pet friendly rentals before others to ensure there will be no issues with your pets.