Frequently Asked Questions
Buyer Questions & Answers -
Buying a home in the Denver Metro area?
Click the links below
to find answers to some of the most common buyer questions:
Do you work with home buyers in the Denver metro
area?
How much does it cost for a buyer's agent to help
me find a home?
How can I check my credit score before I apply for a
mortgage?
How much does it cost to
buy a home in the Denver real estate market?
What is an Earnest Money Deposit & how much do I
need?
How many Denver homes or properties should I plan to view?
I would like to
preview a home or property for sale - who can I call?
Can you help me buy a new
home from a Colorado home builder?
Where can I
find more advice on buying a home in Denver CO?
What is title insurance and why do I need it?
How much home
can I afford in the Denver real estate market?
How much of a
down payment will I need to have?
What is
included in a monthly mortgage payment?
Do you
recommend hiring a home inspector?
Anthony Rael's
Preferred Mortgage Lenders to get pre-qualified
Seller Questions & Answers
Selling a home in the Denver Metro area?
Click the links below
to find answers to some of the most common seller questions:
Do you work with
sellers?
How much is my Denver area home
is worth?
How is the
listing or asking price determined?
Pricing strategies - starting high & reducing later?
How much do you
charge to sell a home in the Denver metro area?
What the heck is a
sales "co-op"?
Do you offer
"discounted" or "limited services"?
Are there any
up-front or hidden fees to sell my home?
Who will show
your home to prospective buyers?
Where can I
find more advice on selling my home in the Denver real estate market?
GENERAL INFO
How are real estate
agents compensated?
Is your real estate
agent a REALTOR®
Where can I get a
home mortgage loan?
If I call or
e-mail you, will I be pressured?
Who should I call
with questions?
Avoiding Foreclosure
Avoiding Foreclosure -
Colorado Foreclosure
Hotline & Foreclosure Resources
Do you work with buyers?
Answer: ABSOLUTELY!
As your "buyers agent", you will receive "Nordstrom-level" service from
your initial home search through moving day and long after your settled in. I'll be with you every step of
the way to ensure that nobody takes advantage of you. In addition to the
vast inventory of in-house listings by
REMAX Alliance,
I can assist buyers
in previewing homes for sale through the Denver & Boulder Colorado
Property Listings from
RE/MAX, Liv Sothebys, Kentwood, Porchlight, Compass, eXP, Coldwell Bankers, Keller Williams and many other independent real estate companies -
including new homes
offered by local builders.
How much does it cost to hire a buyer's agent to
help me find a home?
Answer: NOTHING!
When you hire me as a "buyers agent", I will work round-the-clock to find
homes based on your specific needs There are no gimmicks or hidden fees -
the sales commission is typically paid by
the listing agent to the selling brokerage firm for bringing you (the buyer) to them.
This is often referred to as "broker coop" or broker cooperation.
How can I check my credit (FICO) score before applying
for a mortgage?
Your credit rating is
based on a combined score generated from three credit bureaus who look at
your credit history, amount of credit available, and recent inquiries to
determine your "FICO" score. Any reputable mortgage lender can run a
credit report for you (free of charge) within a matter of minutes.
This credit check does not obligate you to anything, it's solely intended
to help determine whether your credit is solid enough to qualify for a
mortgage if/when the time comes. A higher FICO score = a better
interest rate.
How much does cost to buy a home?
Answer: IT DEPENDS.
If you haven't already been pre-qualified for a home loan, I can recommend
a mortgage lender who will help you. It only takes a few minutes and
can be done over the phone. Since there are so many variables (ie: down
payment options, interest rates, closing costs, taxes, insurance, HOA's, etc.) that go into buying
a home, it's best if we talk on the phone -
call 303-520-3179.
What is an Earnest Money Deposit & how much do I
need?
Earnest Money is a
deposit that a seller requires when submitting an offer to purchase their
home. It is simply a sum of money that is deposited into a trust
account which is held until the day of closing (in most case by the Title
Company) and credited back to you at the settlement table (ie: closing).
The amount can range from 1-3% of the list price, but 1% is very typical.
So on a $300,000 home, the earnest money deposit would be $3,000.
Earnest money is used to
show that the buyer (you) are serious about the purchase and forces you
to act in good faith during the transaction. If you do not do
things according to the written purchase contract, you could lose your
earnest money! As your agent, I am here to protect your interests
and make sure that you abide by the contract so you don't lose this
money. In some cases, a buyer may consider offering a larger
earnest money deposit to strengthen their offer by showing the seller
they are serious about purchasing their home.
How many
homes should I plan to view?
Answer: AS MANY AS IT
TAKES!
Searching for the perfect home takes time. I will show you as many
homes as it takes to find one that best meets your needs. Sometimes
you don't know what you really want until you visit a home that takes your
breath away. I will make you feel rushed to make a decision - just
read a few of my recent buyer reviews
and see that I always have your best interests in mind. If we have
to visit 9 homes or 90 homes, we'll find it!
I would like to preview a
home for sale, who can I call?
Answer: I'm available @
303-520-3179
If you are not already under contract with another real estate agent, I can show
you any home listed for sale in the Denver Metro area - including
new homes.
Regardless of where you find a (on the internet or driving by), you can
call me to find out all the details and schedule a preview.
Can you help me buy a new
home from a builder?
Answer: ABSOLUTELY!
Anyone considering the purchase of a new home should hire a
realtor that
can represent you in negotiations with a new home builder. In fact, many
new Colorado home builders welcome the assistance of a cooperating real estate agent.
Builder pays the cooperation or commission fee). For more info on
new homes and new home builders -
go here.
What is title insurance & why do I need it?
Title insurance assures that you have clear title to the home you're
purchasing. A title search is the primary component of due diligence
and is performed by the title company you choose. It's important to
note that the SELLER pays for the buyer's title policy. After all,
they are the ones transferring a clear title to you.
A typical Owner's Title
Policy covers Clear title to the property; Incorrect signatures on
documents; Forgery, fraud; Defective recordation; Restrictive covenants;
Encumbrances or judgments; Mechanic's liens and unrecorded liens;
Unrecorded easements and access rights; Defects and other unrecorded
documents. The Extended Owner's Coverage (OEC) covers:
Building permit violations from previous owners; Subdivision maps;
Covenant violations from previous owners; Living trusts; Structure damage
from mineral extractions; Variety of encroachments and forgeries after
title insurance is issued.
How much of a down payment will I need to have?
As you've heard by now, the credit markets are very tight right now and
100% mortgages (with no money down) are generally unavailable. If
you want to purchase a home in today's Denver real estate market using an
FHA-loan, you are generally going to need about 3.5% down plus another
2-4% of the purchase price to cover the closing costs.
Don't panic...there are several
Down
Payment Assistance Programs throughout the Denver metropolitan area
available. The rates and terms are excellent! In many cases,
all you'll really need is $1,000 out-of-pocket and the programs are not
limited to first-time homebuyers.
As far as closing costs are concerned, I will negotiate to get these paid
by the seller.
What is included in a monthly mortgage payment?
Your monthly
mortgage payment mainly pays off principal and interest. But most
lenders also include local real estate taxes, property insurance, and
mortgage insurance (if you have less than 20% equity). This is often
referred to as PITI (Principle, Interest, Taxes, Insurance). If you
purchase a home in an area that has an HOA (Homeowners Association), your
fees will be paid directly to the HOA to pay for things such as grounds
maintenance, swimming pools/hot tubs, club houses, tennis courts, exterior
building maintenance & even roofs in some cases.
Do you recommend hiring a home inspector?
Answer: ABSOLUTELY!
Without a doubt,
every home buyer should hire a qualified and experienced home
inspector. In fact, it would be irresponsible not to. Your
inspector checks the safety of your potential new house & focus especially
on the structure, construction, and mechanical systems of the house and
will make you aware of any problems and/or items that require repair.
Home Inspectors do not evaluate whether you're getting good value for your
money or not - that's what I'm here for. Generally, an inspector
checks the electrical system, plumbing and waste disposal, water heater,
insulation and ventilation, HVAC system, water source and quality,
potential presence of pests, the foundation, doors, windows, ceilings,
walls, floors, and roof.
Once the transaction is
closed, the house is purchased "as-is". Rest assured, we will always
write an inspection clause or make the purchase contingent upon a
satisfactory inspection. If the house has problems that you want
corrected or resolved, the seller will have an opportunity to either make
the repairs, reduce the price or you can simply walk away from the
property and get your earnest money deposit back. The cost is
typically $150-300. Click here for one of my
preferred vendors.
Do you work with
Sellers?
Answer: ABSOLUTELY!
I provide full service for sellers. I offer
more than just a sign in your
front yard. I can help you get top-dollar for your home! Call
303-520-3179.
How much
is my home is worth?
Answer: CALL ME!
I will prepare a
FREE
comprehensive Comparative Market Analysis (CMA) using the same technique
as appraisers. This analysis will assist you in determining the correct
price for your home based on current market conditions such as the
competition of similar homes in your community. I will also conduct a
thorough review of home sales for the past year or so to compare market
times and selling prices.
How is the
listing or asking price determined?
Answer: YOU DO!
Sellers (although they
may not realize it) are in total control of setting the listing
price. As your Realtor, it is my responsibility to survey the
"comps", evaluate the current local real estate market to determine
and suggest a fair asking price. If the seller doesn't agree, then
we'll usually map out a multi-phased price reduction timeline that
will eventually sell the home. It's important
to note that Real Estate Agents & Realtors do not determine the
price - buyers do.
Is it a good idea to start high knowing I can always
drop the price later?
With the high number of
properties saturating the Denver real
estate market, it's absolutely critical that your home is priced right
from the start. When homes are overpriced, they will generate less
interest and showings will be down. As your Realtor, I am committed
to getting top dollar for your house, but as I said before -
real estate agents & do not determine the
price - buyers do.
Don't waste time playing games and reducing the price every few weeks or
months because you will become frustrated and stressed out when it could
have been avoided. Let's work together to analyze the current market
trends to make sure your home is priced right and can sell quickly in this
ultra-competitive real estate market.
How much do you charge to sell a home?
Answer: 4-7%
Sales commission rates vary
from agent to agent and can range from 4.5-7% of the sales price. Sales
commission rates are not set in stone and are negotiable depending on the
specific level of marketing services an agent will provide. There
are some companies that advertise cut-rate commissions, so if you decide
to go down this road, please be sure you read the fine print and also make
sure you can terminate the contract at any time if you are not satisfied.
What the heck is a sales
"co-op"?
Answer: FEES PAID TO A REAL
ESTATE AGENT.
The term "co-op" means the fee or percentage of the sale of a home that is
offered as compensation to the cooperating real estate broker who helps
sell your house.
For example, the listing agent (the agent who is selling your house)
offers a % of sales commission (see above) to the cooperating agent who
can locate a buyer for your home.
Do you offer "discounted" or "limited services"?
Answer: NOT REALLY.
My personal belief is that everyone
deserves Nordstrom-level service...it's just the way I've always conducted
my business. While I firmly believe that everything is negotiable, my work
ethic is not. So even if we negotiate a "discounted" or "limited"
service, my work ethic and ability to market & sell your home is a high
standard that's impossible for me to deviate from. The best thing to
do is meet to evaluate your needs and come up with something we can
both be satisfied with!
Are there any
up-front or hidden fees to sell my home?
Answer: ABSOLUTELY NOT!
I can't speak for any other
agents or firms, but I can assure you that I will not be paid unless I sell
your home.
Who will
show your home to prospective buyers?
Answer:
I cooperate with all real
estate professionals. Agents from RE/MAX, , Coldwell Bankers,
Keller Williams and other offices frequently show and sell our listings.
REMAX Alliance and/or Centralized Showings will coordinate the showings and I will requesting
feedback from the buyer and their agents afterwards.
How are Real Estate Agents compensated?
Answer: BY THE LISTING AGENT /
SELLER.
In Colorado, the majority of residential real estate brokers are
compensated by the listing agent (the one who works on behalf of the
seller). Upon the successfully closing on the home, a certain
pre-negotiated fee or percentage of the sales price is paid to both agents
- typically 2.8% to the buyer's agent and the rest to the listing agent.
If you are the seller, you should be aware that our sales/listing
commissions are not set in stone and are negotiable - don't be led
to believe otherwise. Listing fees can range from 4-7% of the sales price
and is usually dependent on the property, location and overall marketing
plan.
Is your real estate agent a REALTOR®
Answer: MAYBE - MAYBE NOT....
All real estate licensees are not the same. Only real estate licensees who
are members of the NATIONAL ASSOCIATION OF REALTORS® are properly called
REALTORS®. They proudly display the REALTOR "®" logo on the business card
or other marketing and sales literature. REALTORS® are committed to treat
all parties to a transaction honestly. REALTORS® subscribe to a
strict
code of ethics and are expected to maintain a higher level of knowledge of
the process of buying and selling real estate. An independent survey
reports that 84% of home buyers would use the same REALTOR® again.
Is your real estate agent a
REALTOR®
or just telling that they are? Truth is, less tan 50% of all
licensees in Colorado are
REALTOR®.
Some agents are illegally using the
REALTOR® logo
on their business cards & print materials, but are not actually paid
members of these organizations.
See if your Colorado agent is listed here.
I am a member of the
Colorado Association of Realtors (CAR), Denver Metro Association
of Realtors (DMAR) and the National Association of Realtors (NAR).
Where can I get a home mortgage loan?
Answer: ANYWHERE.
Ask your friends, co-workers, family members (or me) because there are
some individuals and/or companies you want to avoid. Although most banks
& credit unions can provide home loans, they don't always offer the best
rates and terms. It's always best to
compare at least two mortgage lenders because their rates
can vary significantly and some unethical lenders prey on uneducated
buyers with "bait-and-switch" tactics. If you need a recommendation
for a reputable mortgage lender, I
will be glad to refer one of my
preferred mortgage
lenders who I personally trust.
Not sure how much you can
afford?
Use my mortgage calculator to get a
general idea or get "pre-qualified"
by a reputable lender (I can recommend one if needed). It only takes a few
minutes and you are not obligated to do anything. Knowing what you
can qualify for helps limit your search for homes you can actually afford.
Are you aware e of numerous
first-time homebuyer programs available in Colorado?
There are several low-interest grants and housing financial assistance
programs available to homebuyers in the Denver Colorado area. If you'd
like more information on getting FREE down payment assistance
and/or low interest loans from these organizations,
please call me at
303-520-3179.
If I call
or e-mail you, will I be pressured?
Answer: ABSOLUTELY NOT.
Like you, I despise high-pressure sales people and tactics. You have my
personal assurance that I will never pressure or obligate you to do
anything. I am here to provide real estate advice and hopefully earn your
business. I won't bull**it you and I won't won't promise something I can't
deliver. As a
Denver,
Colorado Real Estate Agent / Realtor,
I subscribe to a strict code of ethics.
Who should I
call with questions?
Answer: ME!
The fact is, when it comes to real estate (or life in general) there are
no stupid questions. Realtors are not here to judge anyone -
we're here to help people understand all the various aspects of a real
estate transaction and make them feel comfortable with the process. Since
buying & selling a home involves one of the biggest financial investments
you will ever make, it's absolutely essential that you feel comfortable
asking anything. If I don't know the answer, I can easily tap into
my team of 100+ agents at REMAX Alliance to get an answer quickly.
When you have questions or just want to
bounce ideas off someone, let's meet for coffee or you can
just call me at
303-520-3179.
Avoiding Foreclosure
Avoiding Foreclosure -
Colorado Foreclosure
Hotline & Foreclosure Resources
Search tens of thousands Denver area real estate listings
including single family homes, condos, townhomes, lofts, land, short-sale,
foreclosed, bank-owned, HUD and investment properties.
Locate properties by type, price range, subdivision, city, beds &
baths - without the hassle of registering & providing your personal
information. Gather property info, take virtual tours and schedule
showings for any home or property you
find online - regardless of which Denver Real Estate Broker or Agency the property is listed by.
If you would like to sit
down for coffee and discuss the Denver Real Estate market, just call me
anytime at 303-520-3179. Anthony Rael, RE/MAX Alliance offers professional & trustworthy real estate
services to buyers &
sellers throughout the
Denver metro area including
Arvada,
Brighton,
Broomfield,
Denver,
Golden,
Highland/Sloan's Lake,
Highlands Ranch,
Lakewood, Littleton,
Louisville,
Longmont,
Thornton,
Westminster,
Wheat Ridge, Adams
County,
Denver County &
Jefferson County.
Leverage my life-long
knowledge of the Denver Metro area - from homes, condos, lofts or
investment properties, new homes builders, schools & local amenities to
reliable & trustworthy business partners like mortgage brokers & home
contractors to
maximize
your investment, secure your future and realize the home of your dreams.
