FAQ's

(01.19.02) You should be comparing your current interest rate to the record low rates being offered right now! Interest rates have not been this low in several years. If there is more than a 1% difference in your current rate and the rates being offered today and if you expect to be in your home for a few more years, you should put a pencil to it! Most mortgage lenders will be able to calculate for you the advantages of refinancing. Look carefully at what loan costs are associated with refinancing and how long you intend to stay in your current home to evaluate whether you will recapture the cost of the loan in the savings you have gained. If you have a low rate already, but have not refinanced for several years, you may be able to put a new larger loan on your home and free up equity for other uses.

(01.26.02) A lot depends on how long you will be in your home. You need to consider not only the costs of buying a home, but also the cost of selling when you leave. The income tax laws make it advantageous to pay mortgage interest. You are allowed to deduct the amount of interest and property taxes you pay from your total income. This lowers your tax bill. (An advantage you don't get when you rent!) Homes in our area generally increase in value every year. This increase in value will offset the buying and selling costs over time. When you buy a home, you take care of the maintenance instead of the landlord. This makes condominiums attractive because the association takes care of the exterior of the home utilizing the monthly assessment. Thought should be given to how well homes resell in the area you wish to consider. A good rule of thumb is it generally takes a minimum of a three-year ownership to break even.

(02.02.02) Market Value is usually defined as the price at which a willing Seller will sell and a willing Buyer will buy. That means that the value of your home is not fixed, but rather, like stocks in the stock market, it can change depending upon a number of factors. Most REALTORS® will use a Competitive Market Analysis (or CMA) to assist you in choosing a price at which to market your home. The CMA includes a comparison of your home to similar properties that have sold recently, properties which were listed, but did not sell, and ones that are presently on the market. The sold properties give you evidence of what Buyers were recently willing to pay for homes similar to yours. The ones that did not sell will indicate prices that Buyers were not willing to pay, and a look at the competition will help to determine at what price you might want to begin to market your home.

(02.09.02) Ask your REALTOR®! Remodeling projects can involve money that will not be recaptured when you sell. It depends on a number of factors including the quality of materials and workmanship, the degree of integration between the old and new parts of the home, and the universality of the improvements made. The most common mistake people make is to improve a home beyond the values in the neighborhood. Remodeling projects that are unique or create dysfunction in the floor plan can also be expensive errors. In general, kitchens, baths, and family room additions or finishing basements are safe projects as long as the investment does not exceed the highest values in the neighborhood. Once you have established the cost of a planned project, you might want to call your REALTOR® and ask to see homes in the price range you would be in. It's a reality check that could save you money!

(02.16.02) Interviews are very acceptable. One of the ways to select a REALTOR® is to compare the Comparative Marketing Analysis they offer for your home. Does it show the most favorable features of your home? How do they plan to reach the most potential Buyers? Will you receive exposure and through what means? Do they communicate well? Do they listen to your concerns? Do they have a plan to keep you informed during the listing period?

The most common mistakes that are made in selecting a REALTOR® are:

Listing with the agent who offers the lowest commission or the highest price. The terms of the agreement should be considered separately from the selection of the best marketing plan. Select a REALTOR® first, then negotiate terms.