Frequently Asked Real Estate Questions

What is a backup offer?

When an offer is accepted contingent on the fall through or voiding of an accepted first offer.

What is a bridge loan?

This short-term financing option can help you bridge the gap between buying a new home and selling your old one. It enables you to tap into your existing home equity before you’ve sold.

However, there are some issues to consider before you apply for a bridge loan:

👉 The interest rates and fees are usually higher than typical home loans.
👉 The equity from your current home will be used to secure the loan.
👉 The credit requirements are often greater for bridge loans than for standard financing.

If you think you may need to “bridge the gap” between buying a new home and selling your current one, give us a call. We can discuss your options and refer you to a lender who can help.

📲 865-364-0200
📩 Libby@guthriegrouphomes.com

Buyer’s agent: The agent who shows the buyer’s property, negotiates the contract, or offer, and works with the buyer to close the transaction.

Closing: The end of a transaction where documents are signed, and funds are dispersed.

What are Comparable Sales? 🤔

Known in real estate as “comps,” comparable sales are the sales prices of similar homes and are based on the following:

☑️ Lot size
☑️ Condition
☑️ Age & Construction
☑️ Square footage
☑️ Close proximity
☑️ Time frame of the sale

When it comes to buying or selling, both place high importance on comps to determine a home’s value.

Contact our team for a ✨ free consultation ✨ to learn more about what homes are selling for in your area.

In real estate, a contingent offer is an offer made on a property, which says that certain conditions must be met in order for the sale to be completed.

Conventional sale: When the property is owned outright and has no mortgage.

Conventional sales are often smoother transactions than those that require financing as there is no dependence on the buyer receiving a loan to purchase the property.

A counteroffer is a response to a buyer’s original offer on a house to make changes that better fit a seller’s goals.

A counteroffer is one step closer to an accepted offer!

A counteroffer shows that the seller is willing to work with the buyer, but on slightly different terms (usually a change in the price or contingencies).

Here’s how your real estate agent can help you navigate a counteroffer:

☑️ Buyers, we negotiate on your behalf and provide guidance on how to get your offer accepted.

☑️ Sellers, we help you stay clear of red flags and make sure you accept the right offer.

Negotiation is a BIG part of what we do as real estate pros! Connect with our team to learn more about how we provide 5-star representation for our clients.

Days on market (DOM) means the number of days a home has been listed on the market.

The number of days the property has been on the market may reflect the desirability and/or pricing of the home.

If the home has been on the market too long, the property may be stale.

What is a Disclosure Statement? 🤔

A legally binding document in which the seller reveals any potential flaws and issues the buyer needs to know about the property.

Also known as a “Seller’s Disclosure,” this is a legal document that outlines any known flaws that a home seller is aware of that could negatively impact the home’s value 🏡

💡 TIP: Buyers should scrutinize this document closely with their real estate agent to fully understand the condition of a home.

Our best advice? When it comes to buying a home, make sure you get an inspection to confirm what has been disclosed is accurate and discuss any potential deal breakers with your agent.

The three rules of this document are disclose, disclose, disclose.

The representation of opposing principals (buyers & sellers) at the same time.

That is, one real estate agent represents both the buyer and the seller in one transaction (sale of a home).

What is Earnest Money? 🤔

A deposit made to a seller that represents a buyer’s good faith to buy a home. It’s typically around 1% – 5% of the sale price.

Earnest money is a deposit from the buyer to the seller, made in good faith to show dedication to purchasing the property 🏡

IMPORTANT FACTS 👇

💰 The amount varies by market
💰 Goes towards the purchase of your home
💰 Protects the seller if a buyer backs out
💰 A buyer may get this money back – due to failed inspections or contingencies

💡 TIP: In a seller’s market, you may consider making your earnest money non-refundable.

Our best advice? When it comes to buying in a low inventory, competitive market, it’s essential to partner with a Buyer’s Agent who understands how to make your offer stand out to sellers 🥊

What is a Listimate™?

A Listimate™ is a home value estimate based on our proprietary system of determining a home’s value, or the dollar value of a home if listed for sale at the time of the estimate.

We created this system based on over 28 years of experience in retail residential real estate resale properties.

We consider Listimates™ as the true current market value of a specific property. If you decide to list your home with Guthrie Group Homes, your Listimate™ will be the price we recommend you use as the asking price for your home.

How is a Listimate™ different from Zillow’s Zestimate?

We suggest you read our article “Comparative Market Analysis vs. Zestimate“.

How Accurate Is It?

Our track record speaks for itself. 99% of our listings sell at or above the asking price, and they sell fast!

What is a Listing Agent?

The real estate agent who represents the home seller during a real estate transaction.

What is the market value of a home?

The highest price in terms of dollars that a property will bring in a competitive and open market.

In real estate, a contingent* offer is an offer made on a property, which says that certain conditions must be met in order for the sale to be completed.

These contingencies usually involve the home appraisal (the home value determined by an appraisal), home inspection, and receiving approval for your mortgage.

They may also include an offer contingent on the sale of the home the buyer (you) needs to sell before purchasing the new property.

Contingencies offer important protection for home buyers and are rarely waived.

Should I accept a contingent offer on my house?

If you are both buying and selling, should you take a contingent offer on the property you are selling? Typically, the answer is yes. But this is a decision you should discuss thoroughly with your Realtor®. Every situation is unique, so having an experienced agent is essential for determining if this is the right move for your situation.

* Contingent – occurring or existing only if (certain circumstances) are the case; dependent on.