Real Estate FAQs     

What is the FIRST thing I should do if I want to buy a home?

Our answer to this question is always the same:  Find out how much you can afford!  There are many calculators out there (including the one on our web site) that can assist you in this. HOWEVER, the best way to get a complete understanding of how much you can qualify to borrow is to talk to a loan officer. A good one will consult with you AT NO COST to you. Nothing is more heartbreaking than to fall in love with a home only to find out that you can not qualify to buy it! Also, having a pre-approval letter accompany your purchase offer to buy a home strengthens your negotiating power as the sellers are reassured that you are ready, willing, and able to buy. Feel free to contact us for a personal recommendation based on your specific financial situation and needs, or you may check out our recommended lenders by clicking on the navigation button labeled “Recommended Lenders/Professionals. Let them know we sent you!

If I am buying or selling a home, why do I need a real estate agent?

Selling your home is probably the most important financial transaction that you will ever be involved in.  Price is the one of the most important factors in determining time on the market. Realtors® possess the knowledge, experience, and tools to determine the right price for your home by researching comparable recent sales located near your home and by taking a first hand look at your home, its condition, and any improvements that you have made.  They will then create a Comparative Market Analysis (CMA) for you that will help you in determining the right list price for your home.  Also, we will compute a “Net to Seller” document that will show you all the expenses that you will incur in the sale of your home, and what you will net at closing at various prices. The good news is that we will provide this service to you absolutely FREE!  Please contact us if you are interested in having a CMA done on your home today!  If you decide to list your home with us, we will guide you through the entire process including marketing your home, negotiating a sale price, and taking care of every detail necessary to get to the closing table.

Buying a home is an equally important financial transaction as selling one! One of the most common misconceptions among buyers is that they think that having a Realtor® represent them means having to pay the Realtor’s® commission.  On the contrary, in almost every case, the buyer is NOT responsible for their agent’s commission; the agent is typically paid a commission from the seller’s proceeds so using a Realtor® costs you nothing! By the way, new builds are no exception!  Reputable builders in the Central Ohio area will not alter the price because you are being represented by an agent, so it makes sense to have an expert negotiating on your behalf.  We offer our services as Buyer’s Agents and reassure you that we will be with you every step of the way: from researching the market and finding a home, negotiating a purchase contract, directing you to reputable lenders, home inspectors, and other professionals, and any other issues that arise in the process of closing and obtaining the keys to your new home!

Why do I need a home inspection when buying a home?  Doesn’t the bank do an appraisal?

A home appraisal is NOT synonymous with a home inspection! An appraisal is a written professional analysis of the estimated market value of your home. The appraiser might note a major defect in the home during the process of doing the appraisal, but his purpose in entering your home is NOT to do a detailed inspection of the structure and mechanicals, nor is he properly trained to perform an inspection.  He is there to protect the interest of the lender with whom you are doing the mortgage.  A well-trained/certified home inspector, on the other hand, will examine the structure as well as mechanicals in the home and provide to you an organized written report of his findings.  Because we submit your offer to purchase a home contingent upon the home inspection, you would gain the protection and peace of mind in knowing exactly what you are buying.  Often, remedies required of the seller prior to closing are negotiated based upon the findings of the home inspection!

What is the difference between a real estate agent and a real estate broker?

Most states require real estate professionals to be licensed by the state, so that the state can control education and experience requirements and have a central authority to resolve consumer problems. Ohio requires for licensure as a real estate agent that one completes the required hours of specific real estate courses, then successfully completes the licensing exam with a real estate broker as his/her sponsor.  A real state agent cannot practice independently, but must operate under a real estate broker. All listings are technically placed in the broker’s name, not the agent’s.  A real estate broker, on the other hand, can deal directly with the home buyers and sellers, or can have a staff of salespersons or agents working for him or her.  A real estate broker not only has to obtain a real estate salesperson’s license first, but must complete several required courses designated by the Ohio Real Estate Commission and  have the required number of real estate transactions completed prior to being eligible to take the broker’s licensing exam.  Successful completion of the Ohio Broker’s Licensing Exam is required before one can practice as a real estate broker.  As you can see, a broker has extensive training, knowledge, and experience in the practice of real estate by simple definition!  Ray and Jeannie are BOTH licensed Brokers in the State of Ohio and offer the expertise as Associate Brokers of RE/MAX Achievers necessary to represent sellers and buyers with the caliber of professional service they deserve!

What is “earnest money?”

By definition, “earnest money” is a sum of money given to bind an agreement, such as the sale of real estate, the advance of a loan, or some other transaction requiring a deposit.  Earnest money is forfeited by the donor if he or she fails to carryout the terms of the contract or agreement.  In other words, earnest money is applied up front from a buyer to show a seller that the buyer is serious about the purchase.  The money is deposited in an escrow account, usually held buy the buyer’s brokerage. Earnest money is then released back to the buyer at closing, or to the seller if the buyer defaults on the contract after it is accepted.  Because the purchase offer is usually contingent upon the findings of the home inspection as well as the buyer obtaining acceptable financing, failure to buy the home because of an unacceptable home inspection or inability to secure financing does not cause the buyers to lose their earnest money deposit.  What is an appropriate amount of earnest money to offer?  There is no “standard amount” for earnest money.  In fact, earnest money is not required at all!  The bottom line is that the amount “required” is whatever it takes to convince the seller that you’re serious about making the purchase. As your agents, we will advise you on this topic based on the price and specific details related to the property and transaction.

Do you have specific questions that you would like answered?  We welcome your questions, and encourage you to contact us by phone or email:

Jeannie Andrews
614-668-4400
jandrews@columbus.rr.com