COMMON QUESTIONS

Everything You Need to Know

HOW DO I PREPARE MY HOME BEFORE I SELL IT?

When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs. Mop the floors, scrub the bathrooms, and get rid of all the grime in the kitchen. Little things like patching holes in the wall, changing burned-out lightbulbs, and repairing broken appliances can make your place stand out in a crowded market.

One of the first things most buyers will do after purchasing your home is Paint, but for marketing sake, returning the walls to a neutral color can help your house sell quicker. White, creams, and grays can make rooms seem bigger and help potential buyers see themselves living there.

HOW LONG WILL IT TAKE TO SELL MY HOME?

On average, a house takes between 55 and 70 days to sell. That includes 25 days on the market and 30 to 45 days for closing. The exact time it takes to sell a home depends on a few things including...

1. The time of year your listing

2. The competition of likely houses on the market

3. Conditions in your local housing market

4. The condition of your home

5. Prospective buyers lender of choice.

Thats why having a knowledgeable Real Estate Agent is so important, we will do all the homework for you.

HOW MUCH OF THE SALES PRICE WILL I GET?

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price. That usually includes 6% in realtor commissions and 2–4% in taxes and fees. (Ask our team how you can save on commission fees) If you still owe money on your old mortgage, you will get less. You’ll also get less if you agreed to pay for any of the buyer’s closing costs (this will range depending on what the buyer asks for).

On closing day, your escrow agent will distribute the funds to all the necessary parties. They’ll pay out your profits via a check or wire transfer.

Ask our Team how you can save money on your Realtor commission fees. We offer a discount to all sellers that reference our website.

WHAT IS THE FIRST STEP FOR BUYING A HOME?

Before you can purchase a home, you’ll need to talk to a Lender and get a Pre-Approval letter.

A prequalification or preapproval letter is a document from a lender stating that the lender is tentatively willing to lend to you, up to a certain loan amount. This document is based on your credit score, your debt to income ratio, how much of a down payment you have for the prospective home and more factors go into it. But, it lets the seller know that you are likely to be able to get financing. Sellers require a preapproval letter before accepting an offer on a house to ensure you can afford it before moving forward.

Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range and loan type.

HOW CAN A REAL ESTATE AGENT HELP ME BUY A HOME?

Our Team can help you find homes within your budget, schedule visits to houses you like, and negotiate with sellers to get you the best possible price. We have in-depth knowledge about the Oregon Coast and can save you time and money by narrowing down your best possible options. Real estate agents also have access to the multiple listing service (MLS) database, which can help you find homes in popular locations before other buyers. Since realtors are plugged into the local market, they might even hear about potential properties before they’re officially listed!

WHAT SHOULD MY DOWN PAYMENT BE ON A HOUSE?

It depends on your Loan type! For a Conventional loan making a down payment of 20% is ideal because you can avoid paying private mortgage insurance (PMI), but lenders usually require at least 3% for the sale to go through. Depending on where you live and what kind of mortgage you’re eligible for, some lenders may require a minimum of 5%.

If you’re a first-time buyer, veteran, or rural resident, there are special programs available to help you afford a home.

First time home buyer (FHA) loans requires 3.5% as a down payment.

Veteran (VA) loans require 0% down

Rural residents (USDA) loans require 0% down

WHAT IS EARNEST MONEY?

Earnest money is often described as a “good-faith deposit” from an interested buyer. The amount is usually 1–3% of the home’s purchase price, and it shows the seller that the buyer is serious about closing the deal.

As the sale is pending, the earnest money is placed in escrow (an account held by a third party until the sale is finalized). At closing, the funds can go towards the buyers closing costs or a down payment on the home. If the buyer has to back out of purchasing the home due to a contingency in the escrow agreement, they will get their earnest money back. However, if the buyer chooses to back out of the deal for any other reason, the money will go to the seller instead.