Frequently Asked Questions
Questions about selling
You can, but you must be prepared to do the following:
- Research the market to discover its market value.
- Look at your home’s market value, not your perceived value, so that you do not try to sell your house for more than the market value and then end up having a difficult time obtaining full-price offers.
- Learn about the local Real Estate laws. Make sure that you do not violate any local housing and Real Estate laws in the process of selling your home.
- Market and Advertise. You will need to obtain good images of your home and learn which publications are the best to use to sell your home.
- Pay for Multiple Listing Service (MLS). For a flat fee you can often have your home listed in the real estate broker’s database for properties to sell.
- Screen buyers. It saves everyone time and energy if you can pre-screen buyers before the paperwork is started. You should ask them to show you a mortgage pre-approval letter.
- A reverse mortgage is a mortgage loan, usually secured by a residential property, which enables the borrower to access the unencumbered value of the property.
- These loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.
- It allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills. Thus, resulting in you having money you want to supplement your income, or pay for healthcare expenses.
Questions about Buying
“Good” or “Beneficial” debt is debt that helps you build your credit or earn equity. Therefore, buying a home is often considered good debt, since the home will gain equity and make money for you. Student loans and small business loans are also often considered good debt, if they are low-interest, and you have the means to pay them off.
- Lender fees – This include charges for loan processing, underwriting, preparation and establishing an escrow account.
- Third-party fees – This include charges for insurance, title search, and other inspections such as termites.
- Government fees – This is for deed recording and state & local mortgage taxes.
- Escrow and interest fees– include homeowner’s insurance, loan interest, real estate taxes, and occasionally private mortgage insurance.
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Questions about Renting
- It is a legal contract that sets out the rules landlords and tenants agree to follow during their rental relationship.
- It contains practical details and guidelines such as how long the tenant can occupy the property, the amount of rent due each month, how many person/s is agreed to move into the rental unit, the action that can be taken if the rent is not paid as agreed upon and how the landlord/Tenant is protected by the laws of the land.
- Deposit helps to show good faith to your landlord and that you will keep your new rental in good condition.
- This fee ensures that, should you cause any wear and tear to the home during your stay, it can be corrected.
- The deposit will be held for the duration of your tenancy by the landlord and most likely returned if the property was left in good shape.
- The landlord is mostly responsible for maintaining the house and ensuring it stays in proper working order.
- If you cause damage to the property, you may be responsible for the cost of the repairs.
Questions about Real Estate Investment
- Obtaining a license opens the door to a whole new networking channel, which is one of the best ways to find deals.
- Investing in real estate as a licensed agent gives you unlimited access to properties listed on the MLS.
- With a license, you also have the potential to take home a larger profit because you do not have to give away a percentage of your earnings to the agent you would’ve been working with.
- Also not having a license allows you to work with a variety of agents who might all specialize in different niches, giving you the opportunity to diversify your types of deals.
The tax benefits that come with investing in real estate are endless. Becoming a rental property owner, however, is arguably the easiest way to receive these benefits, but certainly not the only way. When you rent a property, you can deduct several expenses including, but not limited to, depreciation, repairs, interest, and taxes that relate to the common property.
- All Real Estate deals require transactions to be made, which inevitably requires funding.
- There is no way to avoid using money, but nobody ever said it had to be your own money.
- It is entirely possible to invest in real estate without using any of your own money.
- Prospective investors may borrow money from private money lenders to fund their deals.