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Buyers Most Frequently Asked Questions
Included here are questions you are often asked by prospective
home buyers along with the answers.
Finding the Right Home
What should I consider before purchasing
Even before starting to look at houses, find out what price house or
condominium you can afford. In general, you can afford to buy a home
equal in price to three times your gross annual income. More precisely,
the price you can afford to pay for a home will depend on six factors:
1. your income; 2. the amount of cash you have available for the down
payment, closing costs and cash reserves required by the lender;
3. your outstanding debts; 4. your credit history; 5. the type of
mortgage you select; and 6. current interest rates.
Pricing
What is the difference between prices?
A seller's advertised or list price should be treated as only a rough
estimate of what he or she would like to receive. Some deliberately
overprice, while others ask for close to what they hope to get, and
a few actually underprice their houses with hopes that potential buyers
will compete and overbid. The appraisal price is another estimate of
value. The appraised price is how much money a professional appraiser
estimates the home to be worth and usually is based on comps, or
sales of comparable homes in the same area. Purchase price and sales
price are the same thing. Both terms mean the amount of money the
successful buyer actually pays out to purchase the home.
Financing
Are there first time buyer discounts?
Numerous programs exist to help first time buyers purchase a home.
Andrus & Associates, Inc. can help buyers find the best possible program.
We have over 20 lenders that we use to match what the buyer is looking
to get, whether it be 100% financing (Zero Down) or a conservative 20%
down fantastic 30 year fixed program without and PMI (Private Mortgage
Insurance). To find out what best suits your needs, click here, and
we'll get started right now!
Home Inspections
How can I find a home inspector?
Contra Costa County
World Inspection Network
Dave Behiel
Direct 925-931-1506
Alameda, Contra Costa & Santa Clara Counties
Homeguard
Main Office
925-417-8120
510-713-1900
408-993-1900
Contra Costa, Alameda & Santa Clara Counties
Chimney Inspections
Mike Danskin
925-828-1881
(Call to Check Area Availability)
Closing Costs
Who pays closing costs?
Closing costs vary from one transaction to another and often total in
the thousands of dollars. They may be paid up front or added to the buyer's
loan balance. However, anxious sellers may offer to pay some or all of the
costs to induce a sale. Here are some basic rules of thumb concerning
closing costs: Historically, if one or more real estate agents are involved,
their commissions are traditionally based on the sales price and paid by
the seller at the time of closing. In recent years, buyers have paid for agent
services in a few different situations. One being a For Sale By Owner, where
the commission can be built into the price so the buyer doesn't have to
come up with all the money at closing, yet the seller doesn't have to have
anyone represent them and still saves money. Many buyers like this because
they don't feel comfortable trusting the seller to be forthright OR perhaps
the sellers/buyers don't have the legal knowledge to handle everything correctly.
Another more rare instance, is where the buyer pays the commission at the
close of escrow, but maintains that their agent will not have any possibilities
of dual agency (working for both parties) and thus lose or jeopardize the
fiduciary duty the agent has to their client.
Historically there have been legal problems becuase even though the buyer's
agent is acting as their agent, they are being paid by the seller, thus in
reality work for the seller. As you can see, this is no easy issue to explain
or resolve. If you are interested in fun details of the such, please contact
Paul Andrus, the Broker to further discuss agency. Andrus & Associates, Inc.
position is one of fair and honest dealing, while maintaining the fiduciary
duty and protecting the interests or clientele.
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