Most Common Questions about Home Selling and Buying

The first rule in getting your residential property ready to sell is to pack and store half of everything in your home, including all cupboards, closets, and rooms. Secondly, have your REALTOR®, real estate agent, or broker give you a checklist of specific steps to prepare your house for sale.

There are only two reasons a house does not sell: price and marketing. You are in charge of how much you want your home to sell for, and your REALTOR®, real estate agent, or broker is responsible for marketing it. That is why you should hire a REALTOR®, real estate agent, or broker with marketing expertise.

Work with a professional REALTOR®, real estate agent, or broker proficient in researching, prospecting, and negotiating.

Since the local community has had such an easy market for a decade, most industry professionals do not have any experience or training in the complexities of the current and upcoming market. Hiring a REALTOR®, real estate agent, or broker skilled in negotiating and marketing and with more than 10 years of experience is important to help you navigate the intricacies of property sale transactions.

Hire a great REALTOR®, real estate agent, or broker that provides guarantees in writing.

Hiring a REALTOR®, real estate agent, or broker based on commission means you get cut-rate service. These industry professionals can’t protect their fees, so how can you expect them to protect your price? Hire based on marketing and exposure since a great real estate sales representative will net you more in your pocket than a discount broker.

It is highly recommended that you request the following guarantees in writing from your real estate sales representative:

• Custom Marketing Plan for Your Home
• 24-Hour Notice to Terminate the Contract for Any Reason
• Reduced Commission If No Other Agent Is Paid
• Commission Rebate If You Are Not Completely Satisfied with the Final Sale

When preparing to sell your home, the first thing to do is make it presentable. This means giving the
entire house a thorough cleaning and making small repairs.

• If you’re not moving out before listing your home, it’s also recommended to depersonalize and declutter.
• Have MAGIC REALTY INC. walkthrough your house to create a checklist of specific steps to prepare your house for sale.

The exact time it takes to sell a home depends on a few things, including:

• Time of year you’re listing: Homes tend to sell faster in the spring and early fall.
• Conditions in your local housing market: Homes sell faster in a seller’s market, when there is low inventory and high demand.
• The condition of your home: Homes in great condition may sell faster than homes that need more work.
• How the buyer is financing: If a buyer needs to take out a mortgage, this may slow down the process. Financing deals usually take an average of 42 days to close, whereas cash deals take only one to two weeks.

There are two reasons a house sells: Price and Marketing!

• The first step in deciding your home’s list price is to get a comparative market analysis (CMA) here at Magic Realty Inc.
• To perform a CMA, we will find similar homes in your neighborhood that have the same square footage, number of bedrooms, and number of bathrooms.
• This will show us what these homes recently sold for or are listed for, and use this as a starting point for your own list price.
• As experts in local Denver neighborhoods, we will be able to market your home to sell without sacrificing your hard-earned equity. Contact us for a free home evaluation today!
• Contact us for free home evaluation today!

The best time of year to sell a home is typically late spring and early summer as this period usually sees the most active housing market with increased buyer interest due to better weather and longer
daylight hours for viewings. However, the optimal time can vary depending on your location and market conditions.

Whether or not you should buy a new home before selling your existing home is a personal choice.

• Having a new home lined up gives you peace of mind when selling, and you can move out on your own time.
• It also prevents you from lining up temporary housing (and having to move twice), which can be a pain.

You can definitely negotiate your realtor’s fees. They’re typically 5-6% with half of that going to the buyer’s agent and the other half going to your agent.

• As the seller, you’ll be responsible for paying your agent through your sale profits. You’ll also pay the commission of the buyer’s agent.
• A closing agent usually a title company, will handle the distribution of funds when you close. They’ll hold money from the buyer in escrow and use it to pay everyone, including your agent.

Sellers usually pay about 8–10% of the total sale price in closing costs. Of that, 5–6% is realtor
commission.

• The rest is a collection of various other costs, Title search, Title insurance, Escrow fee, Transfer tax, Prorated property tax.
• Concessions if necessary.

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price.

• That usually includes 5–6% in realtor commissions and 2–4% in taxes and fees.
•  If you still owe money on your old mortgage, you will get less.
• You’ll also get less if you agreed to pay for any of the buyer’s closing costs.

You may want to pay for your buyer’s closing costs if it allows them to make a better offer or helps the sale close faster.

• Usually, paying for these costs comes in the form of a credit the buyer uses during closing. A buyer might put this credit toward: (Loan origination fees, Mortgage application fees, Appraisal fees, Points on mortgage)
• Buyers may be able to put in a higher offer if there’s less money for them to pay upfront.
• Paying their closing costs can also reduce the amount they need to take out in a mortgage, making it more likely they’ll qualify for the loan and the sale will go through without a hitch.

• Whether you should offer seller concessions depends largely on the current market conditions: in a buyer’s market, offering concessions may be necessary to attract buyers and make your offer more competitive, while in a seller’s market, you may have less need to offer concessions as sellers have more leverage;.
• In some cases, offering concessions can be a way to reach an agreement on necessary repairs without lowering the purchase price.
• In a buyer’s market, offering concessions may be necessary to attract buyers and make your offer more competitive. While in a seller’s market, you may have less need to offer concessions as sellers have more leverage.

Before you can purchase a home, you’ll need to check your credit score. Potential buyers with high credit scores are likely to get approved for a loan. 620 – higher for some.

• High scores reflect consistent on-time payments, long-term borrowing experience, and a good mix of credit types (student loans, car loans, credit cards, etc.).
• Lenders look at these factors to determine if you qualify for certain kinds of mortgages, so be sure to review your credit history and correct any errors. This will give you a better chance at qualifying for loans with lower interest rates.
• Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range.
• Getting prequalified helps identify monthly costs associated with owning

Several factors can affect the buying process, including the property’s location, buyer demand, economic trends, and other variables. Before closing, you’ll also need to:

• Order a home inspection
• Get an appraisal
• Conduct a title search
• Finalize mortgage details
• Review closing documents

There are certain scenarios where breaking a purchase agreement is understandable. If you lose your job, can’t sell your current home, or can’t get approved for a mortgage, it’s best to wait until you reach financial stability before buying.

• Other issues with the home, such as a failed home inspection, unrepaired problems, or difficulty with transferring the title, are also acceptable reasons to back out of an agreement.

The costs associated with buying real estate include down payments, closing costs, property taxes, homeowners insurance, and more.

• Down payment: A mandatory fee that is usually a percentage of the purchase price. (1%)
• Closing costs: Fees associated with finalizing the purchase, including appraisal fees, title search fees, and attorney fees if necessary.
• Property taxes: Taxes levied by local governments to fund public services. The amount is based on the assessed value of the property and the mill rate.
• Homeowners insurance: Required by banks and mortgage companies before issuing a loan. Premiums are usually included in the mortgage payment.
• HOA fees: Additional fees paid on top of mortgage payments for homes in condo buildings or planned associations. These fees pay for the upkeep of common spaces.
• Agent commissions: A commission paid to the real estate agent from the seller’s side at closing.
• Title insurance: A policy that protects the lender and new owner in case of title-related issues. The cost is based on the purchase price.
• Appraisal fees: Paid to a third-party appraisal company to ensure the requested amount is sufficient to finance the home.

The answer is YES, you should get a home inspection before buying a home. A home inspection can help you identify problems that could lead to costly repairs or safety issues.

• A proper inspection may help uncover issues with the roof, foundation, windows, doors, and plumbing. As well as water and mold damage.

Consulting a real estate agent is your best bet if you want to make sure your offer won’t be rejected or ignored. This knowledge of the local market and buyer demand will help you and the seller negotiate a fairer price.

QUICK TIP! Wait until after the home inspection before you try to negotiate a lower price. If the inspector finds any issues, you can ask either for a reduced price or for the problems to be fixed prior to closing.

Down payment assistance (DPA) in Colorado is available in the form of loans, grants, and other programs. It is typically reserved for first-time homebuyers only, but repeat buyers may also qualify based on program requirements.

There are multiple options for Colorado homebuyers when it comes to DPA programs.

One of the most popular programs is:

Colorado Housing and Finance Authority (CHFA) Down Payment Assistance: This program provides qualified first-time homebuyers with grants equal to the lesser of $25,000 or 3% of the total loan
amount and second mortgage loans equal to the lesser of $25,000 or 4% of the total loan amount.

You generally qualify as a first-time homebuyer if you have never bought a primary residence.

• Even if you’ve previously owned a residential property, you may still be considered a first-time buyer if you’ve lived in a home for less than three years but had no ownership of the property during that time.

Whether you should wait for interest rates to go down before buying a house depends largely on your individual financial situation and the current market conditions, but generally, if you are financially
ready to buy and are comfortable with current rates, it might be better to purchase now rather than waiting for potentially uncertain future rate drops, as you could miss out on a good home or face higher prices due to market appreciation; if rates do drop significantly later, you can always refinance your mortgage to take advantage of the lower rate.

How does a concession benefit the buyer?

For buyers, the primary benefit of seller concessions is the reduced upfront expense of buying a home. This seller assistance can make homeownership more accessible, particularly for first-time buyers who may struggle to cover closing costs in addition to the down payment.

Before you can purchase a home, you’ll need to check your credit score. Potential buyers with high credit scores are likely to get approved for a loan. 620 – higher for some.

• High scores reflect consistent on-time payments, long-term borrowing experience, and a good mix of credit types (student loans, car loans, credit cards, etc.).
• Lenders look at these factors to determine if you qualify for certain kinds of mortgages, so be sure to review your credit history and correct any errors. This will give you a better chance at qualifying for loans with lower interest rates.
• Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range.
• Getting prequalified helps identify monthly costs associated with owning

Several factors can affect the buying process, including the property’s location, buyer demand, economic trends, and other variables. Before closing, you’ll also need to:

• Order a home inspection
• Get an appraisal
• Conduct a title search
• Finalize mortgage details
• Review closing documents

There are certain scenarios where breaking a purchase agreement is understandable. If you lose your job, can’t sell your current home, or can’t get approved for a mortgage, it’s best to wait until you reach financial stability before buying.

• Other issues with the home, such as a failed home inspection, unrepaired problems, or difficulty with transferring the title, are also acceptable reasons to back out of an agreement.

The costs associated with buying real estate include down payments, closing costs, property taxes, homeowners insurance, and more.

• Down payment: A mandatory fee that is usually a percentage of the purchase price. (1%)
• Closing costs: Fees associated with finalizing the purchase, including appraisal fees, title search fees, and attorney fees if necessary.
• Property taxes: Taxes levied by local governments to fund public services. The amount is based on the assessed value of the property and the mill rate.
• Homeowners insurance: Required by banks and mortgage companies before issuing a loan. Premiums are usually included in the mortgage payment.
• HOA fees: Additional fees paid on top of mortgage payments for homes in condo buildings or planned associations. These fees pay for the upkeep of common spaces.
• Agent commissions: A commission paid to the real estate agent from the seller’s side at closing.
• Title insurance: A policy that protects the lender and new owner in case of title-related issues. The cost is based on the purchase price.
• Appraisal fees: Paid to a third-party appraisal company to ensure the requested amount is sufficient to finance the home.

The answer is YES, you should get a home inspection before buying a home. A home inspection can help you identify problems that could lead to costly repairs or safety issues.

• A proper inspection may help uncover issues with the roof, foundation, windows, doors, and plumbing. As well as water and mold damage.

Consulting a real estate agent is your best bet if you want to make sure your offer won’t be rejected or ignored. This knowledge of the local market and buyer demand will help you and the seller negotiate a fairer price.

QUICK TIP! Wait until after the home inspection before you try to negotiate a lower price. If the inspector finds any issues, you can ask either for a reduced price or for the problems to be fixed prior to closing.

Down payment assistance (DPA) in Colorado is available in the form of loans, grants, and other programs. It is typically reserved for first-time homebuyers only, but repeat buyers may also qualify based on program requirements.

There are multiple options for Colorado homebuyers when it comes to DPA programs.

One of the most popular programs is:

Colorado Housing and Finance Authority (CHFA) Down Payment Assistance: This program provides qualified first-time homebuyers with grants equal to the lesser of $25,000 or 3% of the total loan amount and second mortgage loans equal to the lesser of $25,000 or 4% of the total loan amount.

You generally qualify as a first-time homebuyer if you have never bought a primary residence.

• Even if you’ve previously owned a residential property, you may still be considered a first-time buyer if you’ve lived in a home for less than three years but had no ownership of the property during that time.

Whether you should wait for interest rates to go down before buying a house depends largely on your individual financial situation and the current market conditions, but generally, if you are financially
ready to buy and are comfortable with current rates, it might be better to purchase now rather than waiting for potentially uncertain future rate drops, as you could miss out on a good home or face higher prices due to market appreciation; if rates do drop significantly later, you can always refinance your mortgage to take advantage of the lower rate.

For buyers, the primary benefit of seller concessions is the reduced upfront expense of buying a home. This seller assistance can make homeownership more accessible, particularly for first-time buyers who may struggle to cover closing costs in addition to the down payment