Carolyn Russell's Answer to Real Estate Questions

Before you begin looking for a home, speak to a mortgage broker or someone at a financial institution and get to know them. You want to find someone who has your best interest at heart. Tell them, in advance, that you will be shopping for the best rate and the least closing costs and that you plan to speak with more than one person.

This will save you an enormous amount of time if you do it before you get started searching for your dream home. First, you will know, in advance, for what price range you qualify.  Don't disappoint yourself by looking at and falling in love with a house you are not qualified to buy. Second, when you get ready to make an offer, you will have a letter from your broker telling the seller that you are qualified to buy this house.

There are lots of houses out there for sale. Your Realtor can define  your search to your specifications and save you lots of time and disappointment. Your realtor can also give you a list of mortgage brokers or banks from which to choose.

Enjoy the process. It is one of the most exciting and rewarding searches you will ever make.

 
Dear Carolyn,
We are looking at houses and wonder how much less than full price we can offer?



Answer: There is no hard and set rule. But your Realtor can compose a list of recent sales in the neighborhood and tell you what percent of the asking price the houses sold for. This varies widely by neighborhod, by village or within a few blocks radius. Your first offer should show that you are serious about buying the property. Some homeowners have put their whole life into the home and if your offer is so low that they feel insulted, they may not be as willing to make a deal.  If you are buying a foreclosure, you are usually dealing with a bank or government entity. You don't have to worry about their feelings but remember that they have a Real Estate Agent looking out for them to protect their interest.