picture of a designer kitchen Are you interested in buying a home? Whether you're a first time home buyer or not there may be many questions you may have. Below you will find answers to some of the most common questions we hear from our customers. If you have any other questions that are not addressed here please give us a call and let us provide you with the answer.

What is a buyer’s market?
A buyer's market is when the inventory of homes for sale exceeds the number of buyers looking to purchase a home. The demand for homes decreases and, as a result, prices tend to drop. A buyer's market can be limited to specific geographic regions, neighborhoods and subdivisions or can be the result of an overall declining real estate market.

What does location, location, location mean?

Probably the most important aspect of a home purchase is the location. After all, that is the most obvious thing that cannot be changed once you move in, and is a huge factor in determining price. Things like kitchens, bathrooms, carpet, paint etc. can be changed and updated at a later date; but your location is constant. Given that fact, most of the value of a property is determined by the location. For example, you can have two identical homes built in different locations. One is built on a busy suburban road and the other is a lakefront property. Obviously the lakefront property value would be significantly higher than the other. Therefore it is important to determine the location you would like to live first, and then decide on the home.

My REALTOR told me not to use price per square foot to determine the value of a home I wanted to
purchase. Is that correct?
YES! Many buyers incorrectly believe that they can compare the list price per square foot to determine what to offer on a home. There is something called the “Economy of Scale” which can be defined simply as when buying in bulk things are cheaper. Think of when you purchase groceries at Costco, Sams, BJ’s or any other warehouse merchandisers. The cost per ounce is typically less. The same theory applies to buying a larger home in a subdivision. The cost to build that home is cheaper per square foot than a smaller home in the same community and land value is factored into the price. In real estate you have to consider whether or not the home has a pool, larger lot or golf/lake frontage. Each of these features will increase the overall price per square foot.   

Should I have a home inspection when purchasing new construction?

Absolutely! Just because a home is new does not mean it is without problems. We have seen new homes with missing/insufficient attic insulation, plumbing leaks, reversed hot/cold faucets, improper wiring and almost anything else you might find in a re-sale home. Although a reputable builder will probably correct these defects at a later date, it is always better to have it corrected or addressed before closing day.

Is it true that I can save money by calling the listing agent(s) directly to show me the homes I want to see?

Well, maybe.
A Brokers’ commission is always taken into account when an offer is presented to a seller. The seller wants to know exactly what they will net after all taxes and commissions are paid. Sometimes a listing agent will reduce their commission when representing both buyer and seller in a transaction. However more often than not, there is no reduction or benefit in dealing directly with the listing agent.
It is always best to interview different Realtors or get a referral from a friend. Look for the most qualified, hard working, experienced and honest one to work with. An experienced Realtor can be worth their weight in gold! They can negotiate the best price using data from recent property sales and their expansive knowledge of the community. They can also help you avoid many of the pitfalls that may arise during the finance approval process, inspection period and appraisal.

facebook logo youtube logo