Choose A Realtor

Frequently Asked Questions:

When Choosing A Realtor:

Q: How long have you worked in Real Estate? Is real estate your full-time job?

A: I am a full time Realtor with over 15 years experience. As such, I have a very good working knowledge of the real estate market in Rochester Minnesota and surrounding area.

Q: What training, education, credentials do you have?

A: Real Estate is a fast moving business. As a Realtor, every year we take continuing education to stay current with what's happening in the profession. Take this link to see my qualifications. Then use the Back button to return to this page.

Q: How many homes to you sell in a year?

A: I average over 50 homes sold per year.

Q: What is a buyer's agent?

A: An agent that works solely for and represents the buyer.

Q: What is a seller's agent?

A: An agent that works solely for and represents the seller.

Q: What is dual agency?

A: One agent may represent both buyer and seller in a real estate transaction, but only if both parties consent. A dual agent may not disclose any confidential information that would place one party at an advantage over the other party, and may not advocate or negotiate on behalf of either of the two parties.

When Selling Your House:

Q: How do I know what my house is worth?

A: I can do a comparative market analysis which is an informal estimate of market value based on similar sales in your neighborhood and surrounding area. Or you can have an appraiser give you a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality.

Q: Why is proper pre sale preparation of my house so important?

A: Getting your house ready to put on the market takes time. Exposing your property to the market before it looks its best gives buyers and agents who tour the house a bad initial impression. It's nearly impossible to get them back for a second look after you correct the showing flaws.

Q: What is curb appeal?

A: Most buyers make snap judgments about your house, and buyers begin forming their opinion of your house long before they go inside. Curb appeal, the external attractiveness of your property when viewed from the street, is critically important. I can help you with suggestions on how to improve your curb appeal.

Q: What can I do to the interior of my home to help the sale?

A: Curb appeal draws buyers into your house. But appealing interiors make the sale. You don't have to spend tens of thousands of dollars on your house prior to putting up the For Sale sign. On the contrary, the little things you do generally give the biggest increase in value. Concentrate on the three Cs -- clean up, clear out, and cosmetic improvements.

Q: What is a listing contract?

A: A listing contract is a personal service contract between you and a licensed real estate professional. This contract authorizes that person to act as your agent by finding someone to buy your house. The listing contract contains two basic promises: The broker promises to do his or her best to find a buyer for your property, and you promise to pay the broker a commission.

Q: What type of information should I disclose about my home?

A: Generally speaking, the law requires that you disclose to prospective buyers any information you have that materially affects your property's value or desirability. This disclosure must cover facts that you, as an owner, are expected to know about your property and the neighborhood that wouldn't be apparent to the buyer.

Q: I'm not sure whether I should disclose something about my house or not?

A: If in doubt, disclose. Over disclosure is better than running the risk of being sued for damages or having the sale rescinded because you failed to reveal a fact that materially affects your property's desirability or value.

Q: What is a contingency?

A: Any offer you receive will probably contain some buyer escape clauses known as contingencies. A contingency gives buyers the right to pull out of the deal if some specific future event, such as getting a mortgage, fails to materialize.

Q: What is the final closing statement?

A: The final closing statement records all the money related to your home purchase.

Q: What repairs should the seller make?

A: If you want to get top dollar for your property, you probably need to make all minor repairs and selected major repairs before going on the market. Nearly all purchase contracts include an inspection clause, a buyer contingency that allows a buyer to back out if numerous defects are found or negotiate their repair. The trick is not to overspend on pre-sale repairs, especially if there are few houses on the market but many buyers willing to buy at almost any price. On the other hand, making such repairs may be the only way to sell your house in a down market.

Q: Do sellers have to disclose the terms of other offers?

A: Sellers are not legally obligated to disclose the terms of other offers to prospective buyers.

Q: What are the standard contingencies?

A: Most purchase offers include two standard contingencies: a financing contingency, which makes the sale dependent on the buyers' ability to obtain a loan commitment from a lender, and an inspection contingency, which allows buyers to have professionals inspect the property to their satisfaction. The purchase contract must include the seller's responsibilities, such things as passing clear title, maintaining the property in its present condition until closing and making any agreed-upon repairs to the property.

Q: Whose obligation is it to disclose pertinent information about a property?

A: In most states, it is the seller, but obligations to disclose information about a property vary. Under the strictest laws, you and your agent, if you have one, are required to disclose all facts materially affecting the value or desirability of the property that are known or accessible only to you. This might include: homeowners association dues; whether or not work done on the house meets local building codes and permits requirements; the presence of any neighborhood nuisances or noises which a prospective buyer might not notice, such as a dog that barks every night or poor TV reception; any death within three years on the property; and any restrictions on the use of the property, such as zoning ordinances or association rules. It is wise to check your state's disclosure rules prior to a home purchase.

Q: How does someone sell a slow mover?

A: Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home. If you are selling in a slow market, your first step would be to lower your price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired. Secondly, you need to make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good sign age, and listings on the local multiple listing service (MLS) and on the Internet. Another option is to pull your house off the market and wait for the market to improve. Finally, if you have no equity in the house, and are forced to sell because of a divorce or financial considerations, you could discuss a short sale or a deed-in-lieu-of-foreclosure with your lender. A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender. In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. The latter are radical options. Your simplest, and in many cases most effective, option is to lower the price.

Q: What are the two most important factors when selling a home?

A: Price and condition are the two most important factors in selling a home, even in a down market. The first step is to price your home correctly. Use comparative sales information from your agent, or pay for a professional appraiser (usually $200 to $300), to objectively evaluate your home's worth. Second, go through the house and repair any obvious cosmetic defects that could deter a buyer. In a down market, you may have to consider lowering your price and/or making a major repair, such as replacing the roof, in order to lure a buyer. Also, make sure that your home is getting the exposure it deserves through open houses, broker open houses, advertising, good sign age and a listing on the local multiple listing service or online listings provider. If this isn't happening, take it up with your agent or agent's broker. If you are still not satisfied you are getting the service you need, you may have to switch agents.

Q: Do I have to consider contingencies?

A: If you are a seller in a seller's market, in which there is more demand than supply, you probably won't have to entertain too many contingencies. But if you are selling in a buyer's market, when buyers are few, prepare to be very flexible. Granting contingencies also depends upon what kind of price you want to get and on the condition of your property, most experts agree. Remember, contingencies are written into the contract and are negotiable during the negotiation phase only.

Q: What is the best time to sell your house?

A: There is no "best" time to sell per se. Selling a house depends on supply, demand and other economic factors. But the time of year in which you choose to sell can make a difference both in the amount of time it takes to sell your home and in the ultimate selling price. Weather conditions are less of a consideration in more temperate climates, but most of the time, the real estate market picks up as early as February, with the strongest selling season usually lasting through May and June. With the onset of summer, the market slows. July is often the slowest month for real estate sales due to a strong spring market putting possible upward pressure on interest rates. Also, many prospective home buyers and their agents take vacations during mid-summer. Following the summer slowdown, real estate sales activity tends to pick up for a second, although less vigorous, fall market, which usually lasts into November when the market slows again as buyers and sellers turn their attention to the holidays. If this makes you wonder if you should take your home off the market for the holidays, consider the advice of veteran agents: You are always more likely to sell your house if it is available to show to prospective buyers continuously.

When Buying A House:

Q: How large a down payment should I make?

A: Ideally, you should purchase a home and have enough accumulated for a down payment so that your down payment represents 20 percent of the purchase price of the property. Twenty percent down is recommended because it's a big enough cushion to protect lenders from default.

Q: Why do I need homeowner's insurance?

A: Homeowner's insurance is mandatory. When you purchase a home, your mortgage lender won't allow you to close the purchase until you've demonstrated that you have proper homeowners insurance.

Q: What is loan pre qualification?

A: Pre qualification is an informal discussion between borrower and lender. The lender provides an opinion of the loan amount that you can borrow based solely on what you, the borrower, tell the lender. The lender doesn't verify anything and is not bound to make the loan when you're ready to buy.

Q: What is loan pre approval?

A: Pre approval is a much more rigorous process than pre qualification. Loan pre approval is based on documented and verified information regarding your income, your liabilities, and the cash you have available to close on a home purchase.

Q: Why should I get pre approved?

A: Going through the pre approval process is a sign of your seriousness to buy a house. A lender's pre approval letter is considerably stronger than a pre qualification letter.

Q: What are points?

A: Points are up front interest and cost you money. Lenders charge points as a way of being paid for the work and expense of processing and approving your mortgage. One point is equal to 1 percent of the amount that you're borrowing.

Q: Why should I pay to have a property inspected?

A: All properties should be inspected. Period. If you're spending a lot of money for a property, protect your investment by having it inspected.

Q: What is a counter offer?

A: It's highly unlikely that the sellers will accept your offer as it's originally written. Sellers use counter offers to fine-tune the price, terms, and conditions of offers they receive.