The Huffaker Group of Keller Williams Realty

It's not required, but it's a darn good idea! Final walk-throughs allow buyers to ensure nothing has changed since their first visit. Then, if repairs were requested as part of the offer, a follow-up visit ensures that everything is squared-away, as expected, per the terms of the contract.

Yes! Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected. In addition, home inspections bring peace of mind to one of the most significant lifetime investments.

Sellers can flat-out accept or reject an initial offer. But there is a third path that is quite common, sellers can initiate a counteroffer. Remember this: a deal isn't dead until it's dead. So, if the seller proffers a counteroffer, you're still in the game. You and your agent need to review it to determine whether the counteroffer is acceptable. If so, then approving it closes the deal immediately. Keep in mind that offers and counteroffers can go back and forth often; this is not unusual, and negotiations are a part of what Realtors do as a matter of routine. Each revision should bring both parties closer together on the terms of the deal.

Written offers should stipulate the timeframe in which the seller should respond. Giving them twenty-four hours should be sufficient.

When you make an offer on a home, your agent will ask for a check to accompany it (checks are the same as cash, and the deposit is typically 1% to 2% of the purchase price). Earnest money is made in good faith to demonstrate - to the seller - that the buyer's offer is genuine. Earnest money essentially takes the home off the market to anyone else and reserves it for you. The check (or sometimes cash) is deposited in a trust or escrow account for safekeeping. If a deal is struck, the earnest money is applied to the down payment and closing costs. If the deal falls through, the money is returned to the buyer. Important: if both parties agree upon the terms of a deal, but the buyer backs out, the earnest money may not be returned to the buyer. Ask your agent about the ways to protect your earnest money deposit and the ways to protect it – such as offering contingencies.

That's up to you! For sure, home shopping is easier today than ever before. The ability to search for homes online and see pictures, even before setting foot outside the comfort of your living room, has completely changed the home-buying game. As a result, convenience is at an all-time high. But nothing beats visiting a home to see how it looks and 'feels' in person.

If the built-up equity in your current home will be applied to the down payment on the new home, naturally, the former will need to be sold first. Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether a loan on a new home is feasible while retaining the title to the old home. Buyers often have a short time frame to sell their current home when relocating to a new city because of a job transfer.

The national average for down payments is 11%. That figure includes 1st time & repeat buyers. While the broad down payment average is 11%, 1st time home buyers usually put down 3 to 5% on a home. That's because several 1st time buyer programs don't require significant down payments. For example, FHA loan requires 3.5% down. Moreover, some programs allow down payment contributions from family members as gifts. Some programs require even less. VA & USDA loans can be made with $0 down. However, these programs are more restrictive. VA loans are only made to former or current military servicemembers. USDA loans are only available to low to-middle income buyers in eligible rural areas. For many years, conventional loans required a 20% down payment. These loans were typically taken out by repeat buyers who could use equity from their existing home as a source of down payment funds. However, some newer conventional loan programs are available with 3% down if the borrower carries PMI.

Most loan programs require a FICO score of 620 or better. Borrowers with higher credit scores represent less risk to the lender, often resulting in a lower down payment requirement and better interest rate. Conversely, home shoppers with lower credit scores may need to bring more money to the table (or accept a higher interest rate) to offset the lender's risk.

A stratified market happens where supply and demand characteristics differ by price point in the same area (typically by city). For example, home sales for properties above $1.5M may be brisk (seller's market), while homes under $750k may be sluggish (buyer's market). At the same time, home sales activity in mid-priced homes could be entirely different.

Declining home prices and reduced demand characterize a buyer's market. Several factors may affect long-term and short-term buyer demand, like Economic disruption - an employer shuts down operations, laying off their workforce. Interest rates trending higher – the amount of money people can borrow to buy a home is reduced because the cost of money is higher, thus reducing the total number of potential buyers in the market. Home prices drop to meet the level of demand, and buyers find better deals. Short-term interest rate drops can give borrowers a temporary edge with more purchasing power before home prices can react to the recent interest rate changes. High inventory – a new subdivision can create downward pressure on the prices of older homes nearby, particularly if they lack highly desirable features. Natural disasters - a recent earthquake or flooding can tank property values in the neighborhood where those disruptions occurred.

In sellers' markets, increasing demand for homes drives up prices. Here are some of the drivers of demand: Economic factors – the local labor market heats up, bringing an inflow of new residents and pushing up home prices before more inventory can be built. Interest rates trending downward – improves home affordability, creating more buyer interest, particularly for first-time home buyers who can afford bigger homes as the cost of money goes lower. A short-term spike in interest rates - may compel "on the fence" buyers to purchase if they believe the upward trend will continue. Buyers want to make a move before their purchasing power (the amount they can borrow) gets eroded. Low inventory - fewer homes on the market because of a lack of new construction. Prices for existing homes may go up because there are fewer units available.

From the start (searching online) to finish (closing escrow), buying a home takes about 10 to 12 weeks. Once a home is selected, and 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 significant factor in how fast homes are sold. Buying a home may take a little longer in hot markets with a lot of sales activity. That's because several parties involved in the transaction get behind when the 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. The entire process gets extended if each party involved in a d

Getting pre-approved for a mortgage is one of the first steps of the home-buying process. Getting a pre-approval letter from a lender gets the ball rolling in the right direction. Here's why: First, you need to know how much you can borrow. Knowing how much home you can afford narrows your search 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 money, liquidate other assets or seek mortgage gift funds from family. In any case, you will clearly understand 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.