Below you will find the most frequently asked questions about real estate.
Click on the big + button to view the answer.
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.
A real estate contract is a legally binding agreement between two parties for the sale and purchase of a property.
It outlines the price, terms, and conditions of the sale.
An escalation clause is a clause in a real estate contract that allows the purchase price of a property to increase if a certain condition is met.
For example, if the buyer’s offer is accepted but the seller receives a higher offer, the buyer can choose to increase their offer by a specified amount.
What is a Final Walkthrough?
A final walkthrough in real estate is when a buyer goes through the property one last time before the closing.
The walk-through is one of the last steps in the homebuying process, but you shouldn’t rush it! Here are a few things to check during your final walk-through:
💡 Are all items included in the sale (e.g. light fixtures and appliances) in place and operational?
🚿 Are all major systems working properly?
⚒️ Have all requested repairs been completed?
🗑️ Has the seller removed all personal items and debris?
🚪 Was any significant damage done during the seller’s move out?
Want more expert guidance on the homebuying process? Reach out for a free consultation.
📲 865-364-0200
📧 libby@guthriegrouphomes.com
What is a Homeowners Association (HOA)?
A homeowners association (HOA) is an organization that makes and enforces rules and guidelines for a subdivision, planned community, or condominium building.
Like many relationships, it’s complicated.
A homeowners association (HOA) is a non-profit organization that takes care of the common areas in a planned community.
HOA fees pay for things like landscaping, snow removal, and repairs to common areas.
A Homeowners Association is an organization made up of homeowners who live in a specific neighborhood or development. The HOA is responsible for maintaining common areas and enforcing rules and regulations.
When you buy a home in a development that has an HOA, you agree to the terms and conditions (rules) of the HOA. CC&Rs.
A homeowners association (HOA) is a private organization that manages and governs a residential community, such as a planned neighborhood, condominium building, or townhouse complex. HOAs are responsible for:
Creating and enforcing rules
HOAs establish rules and guidelines to maintain uniformity and protect property values. These rules can include requirements for yard items, door colors, and car storage.
Collecting fees
HOAs collect monthly or annual dues from residents to pay for common area maintenance and services.
Providing amenities
HOAs can offer amenities like swimming pools, gyms, snow removal, and security.
Running the community
HOAs are typically run by a board of directors made up of elected volunteers.
HOAs can be beneficial because they help maintain the neighborhood and preserve property values. However, some people find the rules to be overly restrictive. HOAs can impose fines on homeowners who don’t comply with the rules, and in extreme cases, they can even force foreclosure.
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Cornell Law
Many HOAs have very particular guidelines like preventing any items being in the yard, requiring doors to be a specific color, requiring cars to always be in the garage, or even requiring flower beds to have specific flower colors. As such, it is very important that homeowners look at the CC&Rs for the property they potentially buy.
When homeowners break a restriction or do not pay fees, the HOA will have specific remedies set in the CC&Rs such as fines or even forcing the home to be foreclosed on in extreme circumstances, ranging widely among different HOAs. Some laws limit how HOAs can punish homeowners such as limiting foreclosure actions to when the homeowner acts unruly, but these laws vary greatly from state to state and city to city. Further, some federal and state laws may prevent the enforcement of restrictions by HOAs that become unconscionable or against public policy. For example, federal laws prohibit HOAs from banning homeowners from having a service animal. https://www.law.cornell.edu/wex/homeowners%27_associations_%28hoas%29#:~:text=Many%20HOAs%20have%20very%20particular,unconscionable%20or%20against%20public%20policy.
Investopedia
Bankrate
https://www.bankrate.com/real-estate/what-is-an-hoa/
Rocket Mortgage
What is a Natural Hazards Disclosure Report? 🤔
📃 A natural hazards disclosure report is a document that describes the risks associated with natural hazards for a particular property.
🔥It may include information about earthquake faults, flooding, fires, and other hazards that could affect the property.
📃 In some areas, including California, it is required by law to have a natural hazards disclosure report before a property can be sold.
📄 The report can be 43–60 pages long and covers a range of hazards, including:
Earthquakes, Floods, Landslides, Wildfires, Tornadoes, Hurricanes, Tsunamis, Radon gas, Airports, and Industrial hazards.
✋🏼Whoa! That looks overhwelming! Don’t worry, your Realtor will explain everthing to you. 🙆🏼♀️
🌊 And FYI, you probably don’t have to worry about Tsunamis in Knoxville. 😏
The written contract between the buyer and seller that outlines the terms of the sale.
What is a Settlement Statement (aka HUD-1)? 🤔
A settlement statement, also known as a HUD-1, is a document that lists all the costs associated with buying or selling a home.
Title, also known as a title deed, is a document that shows who owns a piece of property. When someone buys a house, they get a title deed that shows they are the owners.
