The purpose of this page is to answer some frequently asked questions about real estate, which are of interest at the current time. This page will continue to update. If you have a specific question, David Craven will be happy to answer and if it is of general interest it will be published here. Just use the contact button above his picture. Your identity will not be used.Question: What is currently going on in the real estate market? Answer: Real estate activity as a rule has always been local and while some areas are booming others may not be and vice versa. The general rule is that there is a buyers market going on at this time. Most areas have an abundance of houses, defined as more than five to six month supply. Buyers have had a larger inventory to choose from and are getting some great values as compared to a few years ago. Many markets around the country are seeing increased sales this year. Interest rates are at historically low and the government is working on areas to stimulate this industry. Question: What is the government doing to stimulate real estate? Answer: The first thing is to stabilize unemployment and that is where the stimulus package is suppose to focus. The second area of focus is to stabilize the lending industry so that there are funds available to ready, willing, and able buyers. Question: Can someone still get a "nothing down" or "low down" financing? Answer: Yes. Some of the loan products have changed and some are no longer available. My experience is to work with someone who has a broad experience and offers a variety of products. A good place to start is your bank or ask your realtor where they believe are three good places to go to get a loan. Haywood County NC home buyers may be eligible for the USDA Guaranteed Rural Housing Program for nothing down financing. The current income limit effective April 20, 2009 is $73,600 for up to four in a family to $97,150 for up to eight in a family. Question: Where does a home buyer start? Answer: If you plan on getting a loan, then the lender is the first person to talk to. This will keep you from looking through the real estate search sites such as this one offers and wanting things in a property that are not within your reach at this time. Then choose the real estate agent that you believe will have your best interest. Difference states have different agency laws so ask the agent that you plan to work with to make this clear to you from the beginning. Use a site that has advanced capabilities such as this one (Western North Carolina) to get a broad view of what is available in your price range and then give the specifics (or property choice) of your needs to your agent. Question:Is a mortgage banker and mortgage broker the same thing? Answer: No, A mortgage banker will fund their own loans and the mortgage broker will look to find the money from different sources. Question: What does (MLS,DOM,HOA) mean? Answer: Multiple Listing Service, Days on Market, Home Owners Associates. Please understand that DOM will not always be accurate. A change in the listings in some markets will start this count (DOM) all over. So it may not be accurate. Question: Can I eliminate this "Title Insurance" if I am Buying from my relative and using an attorney? Answer: There may be some that disagree with me, however, I reassure you that I would always get title insurance and never take this risk on. Never. Question: Do sellers have to disclose every problem? Answer: Not always. This depends on the location of the property and the kind of property you are referring to. This is a great question to ask your realtor to clarify for you based on your circumstance. Do not assume here. There are still "Buyer Beware" states and certain types of property such as commercial which do not have disclosure. Question: How do you determine how much Home Owners Insurance to get? Answer:This is a great question to understand the reason for your choices and should be more fully asked of your insurance agent. The choices will include market value or replacement cost. Market value of a property being purchased includes the land which is not insured. Replacement cost should be the focus for most buyers and it is recommended to be 100%. When buying a new home always get the replacement value estimate. Most people will want to be able to fully replace a property if it were destroyed. |