Your home’s assessed value (the value assigned to a property for tax purposes by a municipality) is different from its market value (the price at which a property would sell in a competitive market). While professional appraisers calculate the assessed value, buyers and sellers impact the market value. In a buyer’s market, for example, buyers might make a lower offer than the home's assessed value. But if it’s a seller’s market, there’s a chance a seller’s home’s market value will be more than its assessed value because if there’s low inventory, buyers will sometimes pay more for what the home is actually worth.

The majority of loan programs typically require a FICO score of 620 or higher. Individuals with higher credit scores pose a lower risk to the lender,
leading to benefits like a reduced down payment and more favorable interest rates. On the contrary, those with lower credit scores may be required to contribute a larger upfront amount (or contend with a higher interest rate) to mitigate the lender’s perceived risk.

Earnest money, often referred to as a good faith deposit, is a sum of money provided by a buyer to demonstrate their serious intent to purchase a property. It is typically 1-2% of the home’s final selling price that’s held in an escrow account and is usually submitted along with an offer. If the offer is accepted, the earnest money is applied towards the down payment or closing costs. However, if the deal falls through due to the buyer’s failure to fulfill contingencies outlined in the agreement, the earnest money may be forfeited to the seller.

You may have heard that it’s conventional to pay a 20% down payment but the national average for a down payment on a house is actually 14.4%. In fact, according to the National Association of Realtors, first-time homebuyers typically put down 8%, while repeat buyers put down closer to 18%. In some cases, such as FHA loans which are government-backed, buyers may only be required to put down as little as 3.5%. And some programs, like VA loans for eligible military veterans, may offer zero down-payment options.

Closing costs for homebuyers typically range from 2% to 5% of the home’s purchase price. These costs cover various fees and expenses associated with finalizing the real estate transaction. Common components of closing costs include lender fees, title and escrow fees, home inspection and appraisal fees, attorney fees, property taxes and homeowners’ insurance, and HOA fees if applicable.

No. A private home inspection is not required for any loan or cash transaction; however, We do recommend them. Depending on the size of the home, most home inspections can cost $400-500. You typically have 15 days to complete this particular inspection, however the timeline is negotiable.

No. Programs such as DocUSign and ESignature have made the process of going under contract to buy or sell a home from afar a breeze. In addition, a Title Company can do an overnight mail out for all final documents requiring a wet signature and a notary.

First and foremost, you need to decide on the type of financing that may be beneficial to your portfolio. If cash, you’ll need to be able to provide those proof of funds. If financed, you’ll need to have several tax documents available and other items a loan officer may require. Once you know your budget, you can then decide if your investment needs to be a long term (more than 4 years) or short term (1-3 years) hold and if during that length of time the property should be used for long- or short-term income production based on your financial situation mentioned above or perhaps a primary or secondary residence.

We provide a full-service experience, taking care of everything along the way from the initial MLS listing, comparative market analysis, staging, professional photography, marketing, open houses, negotiation, financing, title services, property management and more…