Massachusetts & Rhode Island Real Estate FAQs
Sharon can answer all of your home questions
Foreclosed homes can present opportunity
Home inspections are vital when buying
Contact Sharon with any additional questions
Below are questions that Sharon frequently answers for Southcoast MA & Eastern RI home buyers and sellers.
- In today's economic climate, can I still get a home loan?
- Lenders are lending to qualified buyers. A high credit score and proof of employment will assist you in obtaining a mortgage.
- What is the HOME BUYER Tax Credit?
- The Federal Government has instituted a $6500 - $8,000 tax credit for "HOME BUYERS." Unlike the previous first-time homebuyer tax credit, this has been extended to "MOVE UP BUYERS" who qualify. For more details, click here: Homebuyer Tax Credit Extension, and speak to your accountant. This is a gift (free money), not a loan.
- What is the difference between list price, sales price and appraised value?
- The list price is a seller's advertised price, a figure that usually is only a rough estimate of what the seller wants to get. Sellers can price high, low or close to what they hope to get. To judge whether the list price is a fair one, be sure to consult comparable sales prices in the area. The sales price is the amount of money you as a buyer would pay for a property. The appraisal value is a certified appraiser's estimate of the worth of a property, and is based on comparable sales, the condition of the property and numerous other factors.
- What is the difference between market value and appraised value?
- The appraised value of a house is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300. Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker. Either an appraisal or a comparative market analysis is the most accurate way to determine what your home is worth.
- What types of foreclosure are there?
- Judicial foreclosure action is a proceeding in which a mortgagee, a trustee or another lienholder on property requests a court- supervised sale of the property to cover the unpaid balance of a delinquent debt. Nonjudicial foreclosure is the process of selling real property under a power of sale in a mortgage or deed of trust that is in default. In such a foreclosure, however, the lender is unable to obtain a deficiency judgment, which makes some title insurance companies reluctant to issue a policy.
- Do I need a home inspection?
- Yes. Buying a home "as is" is a risky proposition. Major repairs on homes can amount to thousands of dollars. Plumbing, electrical and roof problems represent significant and complex systems that are expensive to fix.
- What is the standard debt-to-income ratio?
- A standard ratio used by lenders limits the mortgage payment to 28 percent of the borrower's gross income and the mortgage payment, combined with all other debts, to 36 percent of the total. The fact that some loan applicants are accustomed to spending 40 percent of their monthly income on rent -- and still promptly make the payment each time -- has prompted some lenders to broaden their acceptable mortgage payment amount when considered as a percentage of the applicant's income. Other real estate experts tell borrowers facing rejection to compensate for negative factors by saving up a larger down payment. Mortgage loans requiring little or no outside documentation often can be obtained with down payments of 25 percent or more of the purchase price.
- What are the two most important factors when selling a home?
- Price and condition are the two most important factors in selling a home, even in a down market. The first step is to price your home correctly. Use comparative sales information from your agent, or pay for a professional appraiser (usually $200 to $300), to objectively evaluate your home's worth. Second, go through the house and repair any obvious cosmetic defects that could deter a buyer. In a down market, you may have to consider lowering your price and/or making a major repair, such as replacing the roof, in order to lure a buyer.