The WentCoastal Team - Christian Panin

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The national average for down payments is 11%. But that figure includes first time and repeat buyers. Let’s take a closer look. While the broad down payment average is 11%, first time homebuyers usually only put down 3 to 5% on a home. That’s because several first-time home buyer programs don’t require big down payments. A longtime favorite, the FHA loan, requires 3.5% down. What’s more, some programs allow down payment contributions from family members in the form of a gift. Some programs require even less. VA loans and USDA loans can be made with zero down. However, these programs are more restrictive. VA loans are only made to former or current military service members. USDA loans are only available to low to-middle income buyers in USDA-eligible rural areas. For many years, conventional loans required a 20% down payment. These types of loans were typically taken out by repeat buyers who could use equity from their existing home as a source of down payment funds.

One of the things that can happen when you have multiple offers is your home sells for too much. The appraiser is unable to justify the price based on comparable sales data. Of course, there are times when an appraiser comes in low, and it isn’t justified. In cases like these, you’ll need to know how to contest the appraisal. There are usually a couple of scenarios the rectify a low appraisal, including the following: You challenge the evaluation, and it’s adjusted. The buyer makes up the difference by coming up with additional deposit funds. The worst-case – you lower your price. A compromise – you lower the price some, and the buyer comes up with a larger down payment satisfying the lender.

Yes, almost everything in real estate is negotiable. Typically, there is a difference between a home’s list price and how much it actually sells for. The current market’s saturation will determine how much wiggle room there is for negotiation. If you’re on the buyer’s side, expect the house to be able to be purchased for less if there is a lower demand than supply in the market. Vice versa, if you’re on the seller’s side expect it to usually sell for less. That being said, you never know who else is house hunting. Sometimes people will swoop in and offer the exact asking price.

Once the house is on the market, it may take anywhere from four to six weeks to sell. However, if the market is fairly hot, a seller could see their house off the market within a week. On the flip side, if there is a lull in the market or issues arise such as negotiation, lack of exposure, or house conditions then the property can sit on the market for months.

From start (searching online) to finish (closing escrow), buying a home takes about 10 to 12 weeks. Once a home is selected an the offer is accepted, the average time to complete the escrow period on a home is 30 to 45 days (under normal market conditions). Though, well-prepared home buyers who pay cash have been known to purchase properties faster than that. Market conditions are a major factor in how fast homes are sold. In hot markets with a lot of sales activity, buying a home may take a little longer than normal. That’s because several parties involved in the transaction get behind when business suddenly picks up. For example, a spike in home sales increases the demand for property appraisals and home inspections, yet there will be no increase in the number of appraisers and inspectors available to do the work. Lender turn-around times for loan underwriting can also slow down. If each party involved in a deal takes longer to get their work done, the process gets extended.

The list price is the price you list the home for sale. It is the reasonable goal you set for your sale, one you hope to get close to as you make the transaction. The sale price is the price that you actually sell the home for after negotiations. A terrific agent should be able to help you set a price that will be close to the sale price. A word of caution – many less desirable real estate agents will present their market analysis to sellers without giving a seller a list and sale price. Your real estate agent should be setting proper expectations from day one. The best agents will suggest you list at X with a probable sale price of Y. One of the essential skills of a real estate agent is accurate pricing. Agents who are worth their salt will be on the money with the price.

A buyer’s market is characterized by declining home prices and reduced demand. Several factors may affect long-term and short-term buyer demand, like: Economic disruption - a big employer shuts down operations, laying off their workforce, interest rates trending higher, short-term drop in interest rates, high inventory, natural disasters. In sellers’ markets, increasing demand for homes drives up prices. Here are some of the drivers of demand: economic factors, a short-term spike in interest rates, and low inventory.

Clean things up. No one wants to buy a dirty house. If you want reasonable offers, you need to remove clutter and clean it thoroughly. Declutter and rent storage if necessary. When selling a home, first impressions and appearance can make or break you. It’s wise to declutter your home as much as possible. A few great ways to do that are having a donation pick-up or renting a storage pod or storage unit. Make needed repairs. Broken door handles, missing tiles, stained carpets—The more of these small, cheap fixes you make, the more desirable your home will be. There may also be big jobs that need to be done. Wait to talk to your agent you invest in any major repairs to be sure that doing so will benefit your sale as you expect. Take great pictures. The photos on your listing are the first thing that most buyers are going to see. You want them to be good, and it takes talent and practice. Your agent should either be skilled at taking real estate pictures or know someone who is.

Getting pre-approved for a mortgage is the first step of the home buying process. Here’s why: First, you need to know how much you can borrow. Knowing how much home you can afford narrows down online home searching to suitable properties, thus no time is wasted considering homes that are not within your budget. (Pre-approvals also help prevent disappointment caused by falling in love with unaffordable homes.) Second, the loan estimate from your lender will show how much money is required for the down payment and closing costs. You may need more time to save up money, liquidate other assets or seek mortgage gift funds from family. In any case, you will have a clear picture of what is financially required. Finally, being pre-approved for a mortgage demonstrates that you are a serious buyer to both your real estate agent and the person selling their home.