FAQ

QUESTIONS ABOUT INTERNET INFORMATION
Q: Why do most real estate sites require that I fill out forms with my name, phone number and email address before I can get any information?
A: There are usually 2 reasons. (1) Because they are "marketers" who just put up a site to make money by charging agents for each "lead" that is passed on. Most of these type of sites claim their agents are "prescreened" or "top producers", but that just means that the agent has a valid credit card on file to pay a fee for each lead sent to them. There are no other requirements for their agents. If a site isn't owned by a licensed real estate agency and clearly disclosed as such, you can assume your information is being collected for the purpose being sold to some one else. (2) It's a site created just to generate "leads" like any other form of advertisement. They want to be able to contact you so they can "sell" you on using their services.
Q: The Lenders online have lower rates - why?
A: Most likely, they are misleading you. The truth is, interest rates vary only slightly from one lender to the next. If an advertised rate is significantly lower then there will be additional costs, such as points, origination fee, processing fees, etc. These are marketing schemes and used primarily by Lenders who should not be trusted with your business.
QUESTIONS ABOUT BUYING
Q: Do I really have to pay the listed price for a home? Won't the seller really take a lot less?
A: This is a good example of why you need an experienced agent working for you. How much negotiability there is in the price depends on what's going on in any particular market. In a strong sellers' market offering less than the listed price will probably ruin any chance of getting the house. There may be other buyers making full price or better offers at the same time. However, in a buyers' market it can be possible to make offers and purchase properties below market average. Your agent can provide you recent sales and tax information so that you will be able to determine what an appropriate offer will be for the current market conditions.
Q: How do I know if my credit is good enough to buy a home?
A: The only way to know for sure is to talk with a reliable lender who can pre-qualify you within a few hours of getting your credit report and reviewing your general credit history. If you have had steady employment for 2 or more years, pay your current bills properly, have some "open" credit and haven't had a recent foreclosure or bankruptcy you probably will qualify. These days there are even loans for people with less than perfect credit, but a higher interest rate or more fees may be required. And if you can't qualify now your lender can tell you what to do to improve your credit to qualify in the future.
Q: Why is the assessed value in the home's tax record so much lower than the listed price?
A: The tax assessment is the value of the home established by the local Tax Collector for tax purposes only. In Florida, any homestead exempt property is limited by law to no more than a 3% increase per year. With current appreciation at 6% to 12% the assessed values for homesteaded properties will be much lower than true market values.
Q: Why do I need a home inspection when I'm getting a home warranty?
A: There are several reasons. A whole house inspection covers more than most warranties do - like the roof and structural components. Deficiencies found during the inspection may be covered by the repair allowance and therefore fixed prior to closing. You are encouraged to attend the inspection and will learn not only the current condition, but future anticipated maintenance. Occasionally, the inspection uncovers a problem so severe that you decide not to purchase the home.
QUESTIONS ABOUT SELLING
Q: Why can't I sell my house myself? Won't I save a lot of money?
A: The statistics show just the opposite. About 10% of home owners who try are able to sell on their own, but the average price is about 11% below the average price for homes sold through agents. Total cost of commissions usually ranges from 5% to 7%, so chances are you will end up with less money than if you had hired a professional.
Q: How do I get top dollar for my home?
A: There are two "musts" for getting top dollar in an average market. (1) Make sure your home is in top condition, especially cosmetically. "Curb Appeal" is more important than anything else to a buyer. (2) Hire an experienced, full service agent who is focused on selling your home in the shortest possible time.
QUESTIONS ABOUT AGENTS
Q: Why do I need an agent if I can find a home by myself on the Internet?
A: While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. Remember the saying, "a little knowledge is a dangerous thing". Never was that more true than in buying or selling a home. You cannot replace the depth of experience a full time professional brings to the process with a few hours of online searching. Buying a home involves not just finding the home, but financing it and coordinating dozens of details required to purchase real property.
Q: Can I use an agent to purchase a newly built home?
A: Yes. In fact, virtually all builders in Northeast Florida offer agents the same commission as is offered for listed resale properties. Many even offer additional bonuses of cash or gifts to agents to entice the agents to bring them more buyers. The commission is built into the base price of the home as an "advertising "cost so you pay for it whether or not you have an agent representing you. The builder's site agent does not have to be licensed and exclusively represents the builder and is acting in the builder's best interests to sell as many home as possible. Your agent can show you all homes and all communities by all builders and help you determine which best meets your needs. Builders normally require an agent to be present on your first visit to the site. This is a sensible procedure that allows the agent to be paid a commission should you decide to buy. Otherwise, if you find a development on your own, make a first visit without the agent, and later make a purchase, the builder will probably refuse to pay the commission or allow the agent to become involved in helping you through the process. Remember, you are not "shopping" for a car, but finding a home and your biggest personal investment. It should not be done on impulse or because of a fast-talking salesperson.