Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com Rochester Real Estate | LOCAL Homes For Sale | Homes for sale in Rochester, NY, LOCAL Rochester real estate listings, market data, REALTOR® info, and high quality content updated every 15 minutes! Wed, 25 Jun 2025 11:50:30 +0000 hourly 1 https://wordpress.org/?v=6.7.2 https://www.rochesterrealestateblog.com/wp-content/uploads/2016/11/cropped-SITE-LOGO-512-x-512-1-32x32.png Top Frequently Asked Questions From Home Buyers – Rochester Real Estate | LOCAL Homes For Sale https://www.rochesterrealestateblog.com 32 32 June Home Maintenance Checklist: 40+ Must-Do Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/june-home-maintenance-checklist-summer-prep/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20501 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May Home Maintenance Checklist: 30 Essential Tasks to Prepare Your Home for Summer https://www.rochesterrealestateblog.com/may-home-maintenance-checklist/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20484 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> April Home Maintenance Checklist: How To Prepare Your Rochester NY Home For Spring https://www.rochesterrealestateblog.com/april-home-maintenance-checklist/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20364 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> March Home Maintenance Checklist: Get Your New York Home Ready for Spring https://www.rochesterrealestateblog.com/march-home-maintenance-checklist/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=20338 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Buy a House in New York https://www.rochesterrealestateblog.com/buy-a-house-in-new-york/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19906 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Sell a House in New York https://www.rochesterrealestateblog.com/sell-a-house-in-new-york/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19905 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Risks of Buying a Non-Warrantable Condo In New York: What You Need to Know https://www.rochesterrealestateblog.com/non-warrantable-condo/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19796 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Builders Should Know About Spec Construction Loans In New York https://www.rochesterrealestateblog.com/builders-spec-construction-loans/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19795 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving To The Finger Lakes Region Of New York | Guide To Relocating To The Finger Lakes https://www.rochesterrealestateblog.com/moving-to-the-finger-lakes-region/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19875 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Navigating the Numbers: The Pros and Cons of Using Online Home Value Estimators For New York Real Estate https://www.rochesterrealestateblog.com/pros-cons-online-home-value-estimators/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19794 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Role of Location in Home Valuation In New York https://www.rochesterrealestateblog.com/role-of-location-home-valuation/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19768 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Lowe’s vs U-Haul: A Review of Truck Rental Companies https://www.rochesterrealestateblog.com/lowes-vs-uhaul/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19758 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Understanding the Importance of a Seller’s Property Condition Disclosure https://www.rochesterrealestateblog.com/property-condition-disclosure-statement/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19632 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What are Delayed Showings and Negotiations in Real Estate In New York? https://www.rochesterrealestateblog.com/delayed-showings-negotiations/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19547 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 8 Viable Tactics to Selling Your Home and Moving Out of State https://www.rochesterrealestateblog.com/selling-home-moving-out-of-state/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19542 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Unconventional Methods for Selling a House: Thinking Outside the Box https://www.rochesterrealestateblog.com/unconventional-methods-for-selling-a-house/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19519 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Sell My House Off Market: Pros and Cons Explained https://www.rochesterrealestateblog.com/sell-house-off-market/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19503 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What is PITI and How Does It Affect Your Mortgage https://www.rochesterrealestateblog.com/what-is-piti/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19498 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Set A Home Renovation Budget https://www.rochesterrealestateblog.com/home-renovation-budget/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19490 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Co-Borrowers Credit Scores Affect A Home Purchase? https://www.rochesterrealestateblog.com/co-borrower-credit-score/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19474 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> New Construction Final Walk-Through Checklist: Ensuring a Seamless Home Inspection https://www.rochesterrealestateblog.com/new-construction-final-walk-through/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19458 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Essential Tips for Pumping a Septic Tank: What You Need to Know https://www.rochesterrealestateblog.com/pumping-a-septic-tank/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19450 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can You Submit Multiple Offers On Homes At Once – A Legal And Ethical Analysis https://www.rochesterrealestateblog.com/multiple-offers-on-homes-at-once/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19414 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Get Your Home Photo Ready for Real Estate Listings https://www.rochesterrealestateblog.com/real-estate-photo-ready/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19409 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Home Builder’s Warranty Cover? https://www.rochesterrealestateblog.com/home-builders-warranty/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19394 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> July 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/july-2023-rochester-ny-real-estate-market-update/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19403 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Who Pays Real Estate Commission When You Buy or Sell a Home https://www.rochesterrealestateblog.com/real-estate-commission/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19366 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Quitclaim Deeds: What You Need to Know https://www.rochesterrealestateblog.com/quitclaim-deeds/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19358 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Selling a Home As Is for Cash https://www.rochesterrealestateblog.com/selling-home-as-is-cash/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19347 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Know if My House Has Paranormal Activity https://www.rochesterrealestateblog.com/is-my-house-haunted/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19342 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Why Find The History of a House https://www.rochesterrealestateblog.com/find-history-house/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19316 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> June 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/june-2023-rochester-ny-area-real-estate-market-update/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19313 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does a Real Estate Lawyer Do? https://www.rochesterrealestateblog.com/real-estate-lawyer/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19181 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> May 2023 Greater Rochester NY Area Real Estate Market Update https://www.rochesterrealestateblog.com/may-2023-rochester-ny-area-real-estate-market-update/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19162 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Know About Buying a Home For The First Time https://www.rochesterrealestateblog.com/buying-home-first-time/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=19058 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>What Should a Buyer Look For at a Home Inspection?</strong> https://www.rochesterrealestateblog.com/what-look-for-home-inspection/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18983 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Companies That Buy Houses For Cash Reviewed https://www.rochesterrealestateblog.com/companies-buy-houses-for-cash/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18889 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Does Home Staging Work and What is The Cost? https://www.rochesterrealestateblog.com/does-home-staging-work/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18814 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What to Avoid When Getting a Mortgage https://www.rochesterrealestateblog.com/avoid-when-getting-mortgage/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18797 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> <strong>5 Options For Replacing a Roof Reviewed</strong> https://www.rochesterrealestateblog.com/replacing-roof/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18771 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are Restrictive Covenants in Real Estate? https://www.rochesterrealestateblog.com/restrictive-covenants/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18714 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Can The Court Force The Sale of Your House in Divorce? https://www.rochesterrealestateblog.com/court-force-sale-divorce/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18693 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Real Estate Agent vs. Broker: What&#8217;s The Difference? https://www.rochesterrealestateblog.com/real-estate-agent-vs-broker/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18650 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Determine Square Feet In Your House For More Accurate Property Estimates https://www.rochesterrealestateblog.com/determine-square-feet/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18167 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 3 Things That Often Results in a Real Estate Agent Getting Sued https://www.rochesterrealestateblog.com/real-estate-agent-sued/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18133 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Top 5 Types Of Home Inspections Buyers Should Consider https://www.rochesterrealestateblog.com/5-types-home-inspections/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18119 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Pros And Cons Of Rent To Own Homes: What You Need To Know https://www.rochesterrealestateblog.com/pros-cons-rent-own-homes/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18104 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Smart Things To Do Before Moving That Will Help Ease Your Transition https://www.rochesterrealestateblog.com/things-before-moving/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18084 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Become a Real Estate Agent https://www.rochesterrealestateblog.com/become-real-estate-agent/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=18071 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Renting A House Or An Apartment: Which Is The Better Option https://www.rochesterrealestateblog.com/renting-house-apartment/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17871 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The 5 Most Important Factors To Consider When Buying A House https://www.rochesterrealestateblog.com/5-factors-buying-house/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17851 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Buyers And Sellers Need To Know About An Appraisal Gap https://www.rochesterrealestateblog.com/appraisal-gap/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17827 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Pros And Cons Of Renting With Roommates – What You Need To Know https://www.rochesterrealestateblog.com/renting-with-roommates/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17794 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 6 Things You Should Know About Buying Land https://www.rochesterrealestateblog.com/things-know-buying-land/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17773 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Long Should Home Sellers Wait To Respond To An Offer On Their Home? https://www.rochesterrealestateblog.com/home-sellers-wait-respond-offer/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=17745 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Buy A House With A Low Credit Score https://www.rochesterrealestateblog.com/how-to-buy-a-house-with-a-low-credit-score/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16819 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Things To Consider When Shipping A Car https://www.rochesterrealestateblog.com/things-to-consider-when-shipping-a-car/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16248 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Home Depot Truck Rentals: What to Know Including Pricing https://www.rochesterrealestateblog.com/home-depot-truck-rentals-what-to-know-including-pricing/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16156 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 16 Things To Do Before Listing Your Home For Sale https://www.rochesterrealestateblog.com/16-things-to-do-before-listing-your-home-for-sale/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16138 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Home Inspection Mistakes to Avoid https://www.rochesterrealestateblog.com/biggest-home-inspection-mistakes-to-avoid/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16112 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Your Credit Score Impacts Your Ability To Buy A House https://www.rochesterrealestateblog.com/how-credit-score-impacts-buying-house/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16086 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Selling Mistakes | 7 Errors Made While Selling A House During The Winter https://www.rochesterrealestateblog.com/top-winter-home-selling-mistakes/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16051 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Winter Home Buying Mistakes | 11 Errors Made While Buying A House During The Winter https://www.rochesterrealestateblog.com/winter-home-buying-mistakes/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=16013 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Address Change Form Should I Use At The Post Office? https://www.rochesterrealestateblog.com/address-change-form-post-office/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15981 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Does Contingent Status Mean in Real Estate? https://www.rochesterrealestateblog.com/what-does-contingent-status-mean-real-estate/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15956 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> DIY Renovation Ideas For Your Backyard https://www.rochesterrealestateblog.com/diy-renovation-ideas-backyard/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15937 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Rent Your First Apartment Guide https://www.rochesterrealestateblog.com/how-to-rent-an-apartment/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15931 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Tips For Selling A Home Virtually https://www.rochesterrealestateblog.com/tips-selling-a-home-virtually/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15907 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Complete Winter Storage Checklist For Your Belongings https://www.rochesterrealestateblog.com/winter-storage-checklist/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15885 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Waive My Home Inspection When Buying A House? https://www.rochesterrealestateblog.com/should-i-waive-my-home-inspection/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15870 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Biggest Self Storage Companies Reviewed https://www.rochesterrealestateblog.com/biggest-self-storage-companies/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15836 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Earnest Money and House Deposits Explained https://www.rochesterrealestateblog.com/earnest-money-house-deposits-explained/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15760 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Moving Mistakes To Avoid https://www.rochesterrealestateblog.com/moving-mistakes-to-avoid/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15568 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Mortgage Myths | Demystifying Common Home Loan Misconceptions https://www.rochesterrealestateblog.com/top-mortgage-myths/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=15102 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First-Time Home Buyer Mistakes to Avoid https://www.rochesterrealestateblog.com/first-time-home-buyer-mistakes/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14815 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 10 Tips For Adding Appeal To Your Home This Summer https://www.rochesterrealestateblog.com/10-tips-adding-appeal-to-home-this-summer/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=14237 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Exploring The Merits of Smart Home Technology When Selling a Home https://www.rochesterrealestateblog.com/smart-home-technology-selling-a-home/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13782 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top Frequently Asked Questions From Home Sellers https://www.rochesterrealestateblog.com/top-frequently-asked-questions-home-sellers/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2424 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> First Time Home Buyer Programs In Rochester NY &#8211; Updated January 2025 https://www.rochesterrealestateblog.com/first-time-home-buyer-programs/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock http://rochesterrealestateblog.com/?p=580 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How New Doors &#038; Windows Can Boost Your Home Value https://www.rochesterrealestateblog.com/how-new-doors-windows-boost-your-home-value/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13643 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 5 Things To Know When Flipping Your First House https://www.rochesterrealestateblog.com/5-things-to-know-when-flipping-your-first-house/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13574 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The Best Mortgage Options for Self Employed Borrowers? https://www.rochesterrealestateblog.com/mortgage-options-for-self-employed-borrowers/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13450 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Top 10 Best Places To See Christmas Lights In Rochester NY https://www.rochesterrealestateblog.com/top-10-best-places-see-christmas-lights-rochester-ny/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=10236 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Are The PROs And CONs Of Multifamily Homes? https://www.rochesterrealestateblog.com/what-are-the-pros-and-cons-of-multifamily-homes/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13219 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> What Low-Cost Home Improvements Should You Make Before Selling Your Home? https://www.rochesterrealestateblog.com/low-cost-home-improvements-you-should-make-before-selling-your-home/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13114 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 15 Things Millennial Home Buyers Look At While Buying A House https://www.rochesterrealestateblog.com/15-things-millennial-home-buyers-look-at-while-buying-a-house/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=13028 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How Does A Fence Increase The Value Of Your Home https://www.rochesterrealestateblog.com/how-does-a-fence-increase-the-value-of-your-home/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12995 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Simple &#038; Low Cost Fixes To Make Your Home More Appealing To Buyers https://www.rochesterrealestateblog.com/5-simple-and-low-cost-fixes-to-make-your-home-more-appealing-to-buyers/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12779 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How To Improve A Homes Curb Appeal In Rochester NY https://www.rochesterrealestateblog.com/how-to-improve-a-homes-curb-appeal-rochester-ny/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12665 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 7 Ways to Create an Energy-Efficient Home While Conserving Your Budget https://www.rochesterrealestateblog.com/7-ways-create-an-energy-efficient-home/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12633 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Hiring Movers Vs. Moving Yourself | The PROs &#038; CONs Of Each https://www.rochesterrealestateblog.com/hiring-movers-vs-moving-yourself/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12592 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should You Pay Off Student Loans Before Purchasing a Home? https://www.rochesterrealestateblog.com/pay-off-student-loans-before-purchasing-a-home/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12531 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Should I Build A New Home Or Buy An Existing Home? https://www.rochesterrealestateblog.com/should-i-build-a-new-home-or-buy-an-existing-home/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=2497 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> Buying A Condo Vs. Renting A Condo | What Are The PROs &#038; CONs? https://www.rochesterrealestateblog.com/buying-a-condo-vs-renting-a-condo/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12402 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 9 Money Saving Moving Tips | How To Cut Costs When Moving https://www.rochesterrealestateblog.com/9-money-saving-moving-tips/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12341 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> How to Create a Proper Home Maintenance Checklist https://www.rochesterrealestateblog.com/how-to-create-a-proper-home-maintenance-checklist/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12300 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> 5 Tips For Tenant Screening | How To Weed Out Bad Tenant Applicants https://www.rochesterrealestateblog.com/tips-for-tenant-screening/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12291 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Social Media Blogs For Real Estate From 2017 https://www.rochesterrealestateblog.com/best-social-media-blogs-2017/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12045 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Home Improvement Blogs From 2017 | Advice For Home Remodeling https://www.rochesterrealestateblog.com/best-home-improvement-blogs-2017/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12044 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]> The Best Mortgage Blogs From 2017 | Advice For Home Financing https://www.rochesterrealestateblog.com/best-mortgage-blogs-2017/ Tue, 03 Feb 2015 12:00:01 +0000 Kyle Hiscock https://www.rochesterrealestateblog.com/?p=12043 Top Frequently Asked Questions from Home Buyers[/caption] Whether a buyer is purchasing their first home or their fifth home, the home buying process can create many emotions and feelings.  One of the best ways to ensure the process is not overwhelming for a buyer is to be well educated and properly prepared for the process. There are normally many questions that home buyers will have throughout the process.  Even an experienced home buyer can forget exactly how the process works and what the proper steps are to ensure the process is relatively smooth. When buying a home, one of the most important things to understand is that "no question is a dumb question."  If you're unsure of something when buying a home, ask! There are many questions that home buyers seem to ask quite often.  Some questions are before starting the home buying process, during a house hunt, while writing a contract, or after an offer is accepted.  Here are the top frequently asked questions from home buyers. Questions Asked Before Starting The Home Buying Process
  • Should I talk with a bank before looking at homes?
The answer to the question is YES!  There are tons of reasons why you should talk with a bank and get pre-approved before looking at homes.  First and foremost, talking with a bank before looking at homes can help you understand exactly how much you can afford.  There is no reason to look at homes that are listed for $250,000 if you can only afford up to $200,000. If you're a first time home buyer, talking with a bank before looking at homes is strongly suggested, as there are many first time home buyer programs available.  These programs can vary from state to state and county to county, so knowing exactly what's available to you, is critical. Another important reason to talk with a bank before looking at homes is so you understand exactly what costs are associated with buying a home.  There are many home buyers who don't understand the difference between a down payment, pre-paid items, and escrows, which can be thoroughly explained by a mortgage professional.  A mortgage professional can give you advice on the type of financing you should be looking to obtain and also whether or not you should request the seller to contribute towards your closing costs, also known as a seller's concession.
  • Should I buy or continue to rent?
Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent. There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it's likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional "responsibilities" of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that? Buying a home is a great option in many cases, but not always.
  • Can I find a rent-to-own property?
Can you find a needle in a haystack?  Of course you can, but the probability isn't very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own. When an owner is offering "rent-to-own" as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering. If you're able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.
  • I own a home, should I buy another before selling my current home?
There is truly no concrete "correct" answer to this question.  There are pro's and con's to buying a home before selling your current home and the same can be said about selling your current home before buying another. Buying a home before selling your current home The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you're purchase offer is going to be contingent upon sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting "bumped" by a non-contingent buyer and you losing out on the home you're looking to purchase, which can be devastating. Selling your current home before buying a new home The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you're purchasing due to the fact you are purchasing without the sale contingency of your current home. One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sellers before buying another though.  A "rent-back" can sometimes be negotiated with the buyer of your current home.  A "rent-back" would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyers mortgage.  A "rent-back" allows for additional time to find a new home.
  • [caption id="attachment_2393" align="aligncenter" width="450"]When Buying a Home Hire a Realtor When Buying a Home Hire a Realtor®[/caption] Do I really need a Realtor when buying a home?
When buying a home, it's strongly recommended you have a Realtor.  There are many reasons why you should have a Realtor represent your best interests when buying a home.  Keep in mind, all Realtors are not the same!  When choosing a buyers agent, make sure you know how to properly interview prospective Realtors when buying a home. Attempting to buy a home without a Realtor can really make the home buying process more difficult.  Having a Realtor is always recommended when buying a home.  One thing not to do when buying a home is calling the listing agent because you don't want to "bother" your Realtor.  This is one thing that real estate agents hate.
  • Who pays the Realtor fees when buying a home?
One reasons why buyers ask the question about the need of having a Realtor when buying a home is because they don't understand who pays the Realtor fees when buying a home.  There are no guarantees, however, in most cases the seller pays the Realtor fees. Questions Asked While "House Hunting"
  • What is a short sale?
Before getting involved with a short-sale, it's important you understand exactly what it is and what to expect from a short sale.  The easiest way to understand a short sale is the sale of a home in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Before purchasing a short sale, you should consider things such as the time it can take for a short sale response, the fact that a foreclosure is still possible, and that many short sale properties are in disarray.  Short sales are not impossible to buy but you must be patient and be in no immediate rush to move.
  • What is a foreclosure?
Believe it or not, foreclosures can actually be a smoother transaction than a short sale.  A foreclosure, sometimes referred to as a REO, is a property that is owned by a lender.  If you're considering the purchase of a foreclosure, it's important to understand that most are sold "as-is."  Foreclosures, if not purchased by an owner occupant, are often purchased by investors, fixed up, "flipped," and sold to a owner occupant.
  • How is the neighborhood/area?
When buying a home, a common question home buyers have is regarding the neighborhood/area.  As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods.  This doesn't mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home.  Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities.  If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.
  • How are the schools?
This is another question that Realtors should tread very lightly with.  There is no doubt that schools impact property values.  Just like tips for selecting a neighborhoods, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.
  • What are the average utility bills?
When buying a home, it's important to know what additional costs will be in addition to the monthly mortgage payment.  Utility bills are just one of the additional costs to consider when buying a home.  Utility bills can be obtained from the home owner and in some cases, from the local utility company, who can provide averages over the past 12 months.  Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.
  • [caption id="attachment_2394" align="aligncenter" width="450"]How many homes should you look at before buying one How many homes should you look at before buying one?[/caption] What's the age of the _?
When looking at homes, many buyers want to know the ages of specific items in a home.  The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable).  An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers.  The roof age is often known by the home owner.  If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.
  • How many homes should I look at before putting in a purchase offer?
This question is often asked and is a simple answer.  The answer is, there is no specific number of homes you should look at before buying a home.  Don't feel that if you were to purchase the first home you look at that you're making a mistake.  Same can be said if it takes you looking at 25 homes. Questions Asked While Placing A Purchase Offer
  • How much should I offer the sellers?
When buying a home, you are the only one who can determine how much you should offer a seller.  Certainly it's suggested you ask for your Realtors advice and thoughts, but ultimately you are the only person who can determine how much you should offer.
  • What is an earnest money deposit?
An earnest money deposit is also frequently referred to as a good faith deposit.  When a buyer purchases a home, they provide the seller's real estate company a deposit to hold in their escrow account.  The primary purpose of this deposit is to show a seller you are serious about purchasing their home.  The amount that is deposited is subtracted from the final figure that a buyer pays at the closing table.  In most cases, the larger the deposit, the stronger a purchase offer looks to a seller.
  • How long does the seller have to respond to my offer?
There is not a standard answer to this question.  A purchase offer will have a "life."  The "life of the offer" can vary from 12 hours to 3 or 4 days.  There are many circumstances that can effect the length of the "life of the offer."  Your Realtor should know how long of a "life" to give to your offer.  If you're looking to purchase a home that is newly listed and the possibility of multiple offers exists, a shorter life is recommended.  If the home you're looking to purchase has been on the market for 3 months and the seller is located out of town, a 2 day "life" maybe necessary and/or recommended.
  • What if my offer is rejected?
When a purchase offer is submitted to the seller there are generally four possible responses.  The first is an accepted offer, the second is a counter offer, the third is a rejected offer, and the final is an offer that is not responded to.  If your offer is rejected, meaning the seller says no and doesn't counter, you have the right to place another offer.  It's not very common an offer is rejected or not responded to, unless a seller is offended by a low-ball offer.
  • Do I have the option to have any inspections?
When buying a home, you have the option to perform several types of inspections.  The purchase offer you write can be contingent upon a satisfactory home inspection, pest inspection, chimney inspection, radon test, and many other inspections.  In most cases, it's recommended that when buying a home, you at the bare minimum have a home inspection.  There are home inspection findings that are more common than others, however, no two homes are the same so it's a great idea to get the home inspected. Questions Asked After A Purchase Offer Is Accepted
  • [caption id="attachment_2395" align="aligncenter" width="450"]Home Buying FAQ - When is the closing date Home Buying FAQ - When is the closing date?[/caption] What's the next step?
Congratulations!  Your offer was accepted, now what?  Between contract acceptance and the closing date, there are many things that need to be completed.  In a nutshell, after an offer is accepted, generally any inspections will be completed.  After the inspections, you complete a formal mortgage application and last but not least, the title, abstract, survey, and any miscellaneous paperwork is completed.  When buying a home, finding the perfect home is only one part of actually becoming a homeowner.  Throughout the mortgage process, you should expect the bank to require documentation, letters, and other items from you to satisfy the bank conditions, so don't be upset or surprised when this happens.
  • Do I need to do a final walk-through?
As a buyer, you have the option to perform a final walk-through.  Is a final walk through a requirement?   NO.  Is a final walk through necessary?  YES.  Generally when buying a home several weeks go by between when you last walked through your home.  Lots of things can change during that time.  When doing a final walk through a few things you should check is that furnace is working, the toilets are flushing properly, and there is hot water.
  • When is the closing date?
When buying a home, the excitement level is extremely high.  It's important to understand that the closing date in the purchase offer is a target and not a guarantee.  Before you hire the movers and take time off from work, know that the closing date in the contract isn't necessarily the date you will own your new home.  Many buyers will ask their Realtor this question, however, it isn't up to the Realtors when a closing will be.  The attorney's are the ones who have to set the closing date and time. Final Thoughts  When buying a home, being prepared and well educated can really make a huge difference.  Again, "no question is a dumb question" and if you are unsure of something, ask!  The home buying process begins before you ever look at one home and the process continues all the way up to the final walk-through.  When buying a home, it's critical you're on your game, stay organized, and remain focused throughout the entire process.  After reading these frequently asked questions, you should now have a stronger understanding of what to expect throughout the process. Other Top Home Buying Resources Are you purchasing a home in Rochester, NY?  Are you a first-time home buyer in Rochester, NY?  If so, the above frequently asked questions should help you be more prepared for the process.  If you're unsure where to begin your Rochester, NY home search, contact me and I can help guide you through the process.  I have assisted hundreds of buyers move in and around the area as one of the top Rochester, NY Realtors.
About the authors:  The above article "Top Frequently Asked Questions From Home Buyers" was provided by the Keith Hiscock Sold Team (Keith & Kyle Hiscock).  With over 30 years combined experience, if you’re thinking of selling or buying, we’d love to share our knowledge and expertise. We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY. Visit our website at www.HiscockHomes.com.]]>