1. Market Value Is What a Buyer Will Pay Market value is the price your home would likely sell for in today’s market. It’s determined by: Location and neighborhood trends The condition and features of the home Comparable recent sales (comps) Appraisers, real estate agents, and buyers all use market value as the real-time price tag of your […]
1. An Easement Gives Someone Else the Right to Use Your Land An easement is a legal right that allows a third party—like a utility company, neighbor, or city—to use part of your property for a specific purpose. Common types include: Utility easements for power lines, water pipes, or cable access Shared driveways where access must be granted to a neighbor
1. Ask the Seller to Lower the Price If the home appraises for less than what you offered, your lender won’t finance the full purchase amount. One of the first steps is to negotiate with the seller to lower the price to match the appraised value. Sellers often agree—especially if they want to keep the deal alive
1. A Title Search Looks for Hidden Legal or Financial Problems A title search is a deep dive into the property’s history, going through public records to make sure there are no: Liens (unpaid debts attached to the property) Ownership disputes (like missing heirs or divorces) Easements or restrictions that could affect your use of the home It’s handled by a title company or
1. Property Disclosures List Known Issues and Past Problems Sellers are required to tell you about anything they know that might affect the home’s value, safety, or functionality. This can include: Roof leaks, foundation cracks, or water damage Termite infestations or mold issues Previous repairs or insurance claims History of flooding or fire It’s their legal obligation to
1. You Have a Steady Income and Stable Employment Before anything else, lenders want to know you can consistently make your mortgage payments. If you’ve been employed for at least two years in the same field and your income is predictable, that’s a green flag. Consistent paychecks = predictable monthly payments Stable job history = stronger mortgage
1. An ARM Starts With a Lower Interest Rate Than a Fixed Mortgage One of the biggest appeals of an ARM is the initial low interest rate, which is fixed for a set period—commonly 5, 7, or 10 years. Lower rate = lower monthly payment early on Can help you afford more home in the short term Ideal for buyers
First-Time Buyer Guide: How Appraisals Protect You (and Your Lender) Before you close on a home, your lender wants to know: is this place really worth the price?That’s where the appraisal comes in. It’s not just a box to check—it’s a critical step that protects your investment and helps ensure you’re making a smart financial move. 1.
1. What Is Dual Agency, Exactly? In a typical home sale, one agent represents the buyer, and another represents the seller. With dual agency, a single agent represents both sides. That means: The agent writes up your offer… …but also advises the seller on how to respond Legally, the agent must remain neutral—but practically, it can be hard
1. A Special Assessment Is a One-Time Fee for Unexpected HOA Expenses While monthly HOA dues cover regular expenses like landscaping or pool maintenance, a special assessment is an extra charge that covers major, unplanned costs. These might include: Emergency roof or plumbing repairs Big upgrades to shared spaces (like elevators, fences, or driveways) Legal fees or insurance shortfalls after storms
1. A Short Sale Happens When the Seller Owes More Than the Home Is Worth In a short sale, the homeowner is trying to avoid foreclosure by selling the home for less than what they owe on their mortgage. The lender must approve the sale (since they’re taking a loss) It can take weeks—or even months—for approval There’s usually