From sellers …

~ What kind of repairs or updates should I do to my home to get it ready to sell?

Some updates will increase your home’s value (usually ones done in the bathrooms, kitchen, or on the exterior). If plumbing, electrical, or mechanical repairs are needed, do those before putting your home on the market. A buyer will have a home inspection if one is not provided by the seller, so repairs will eventually need to be made. It’s wise to have your own home inspection prior to marketing your home to eliminate future costly repairs.

~ Do I have to disclose everything about the property?

Yes. A seller must disclose any and all physical defects.

~ What contingencies are usually attached to an offer?

There are usually two:

1. An inspection contingency that guarantees the buyers the right to have the home inspected to their satisfaction.

2. A financing contingency that voids the contract if the buyer cannot secure a loan commitment from a lender.

~ What if the appraisal comes in too low?

You may:

- Point out valuable parts of your home that the appraiser may have missed and see if he/she would amend their original report.

- Get a second opinion from another appraiser & fax a copy to the lender.

- Work out an arrangement with the buyer to balance out the difference.

~ What happens if the buyer’s loan is not approved by the contract deadline?

Either the buyer & seller can sign an extension or withdraw from the purchase.

From buyers …

~What is the difference between a buyer’s market and a seller’s market?

In a buyer’s market there are more homes for sale than there are buyers to buy them. The buyer has the advantage because the seller will not have many competing offers.

In a seller’s market there are more buyers than sellers. The sellers will have the advantage because there may be many buyers interested in their home.

~What contingencies are usually attached to an offer?

There are usually two. First, an inspection contingency that allows the buyers to have a professional inspect the property. And second, a financing contingency, which makes the contract contingent on the buyer securing a loan commitment from a lender.

~What is the difference between pre-qualification and pre-approval?

Pre-qualification means the buyer has spoken with a lender regarding the possibility of a loan. Pre-approval means the lender has run a credit check on the buyer and determined an amount the buyer could secure a loan for.

~What is an “earnest money” deposit?

A buyer puts down an earnest money deposit to show that they are serious about the home. The check is put down to show good faith.

~When should I submit a loan application to the bank?

You will have a competitive edge over other buyers if you get pre-approved before even looking at homes. At the very latest you should submit a full application no later than the date specified on the Purchase and Sale Agreement.

~How do I find out how much my closing costs will be?

Once you’ve applied for a mortgage, your lender will give you an estimate of your closing costs. This will break down exactly what the fees are for you.

About Agency …

~What is a Disclosed Dual Agent?

A broker can work for both the buyer and seller on a property as long as he/she has obtained written permission from both sides. The Broker then has a responsibility to be honest and fair with both sides, but neither side can expect the Broker’s undivided loyalty. It is illegal for a Broker to work for both sides without getting consent from both sides. See “Buyer Agency”.

Contact Sandy Gard, Keller Williams - The Real Estate Center of Illinois, LLC.