Below you will find the most frequently asked questions about real estate.
Click on the big + button to view the answer.
Capitalization Rate aka Cap Rate
An equation to estimate the potential return on an investment in the real estate market. Calculated by dividing net annual income by property market value.
Interested in investing in real estate? 
You’ll need to understand cap rates.
A property’s cap rate (or capitalization rate) is an estimate of its rate of return. To find a property’s cap rate, divide the net annual income you expect it to generate by its current market value.
Cap rates are a great tool for comparing properties, but they don’t tell the whole story! You also need to account for financing costs, management expenses, and more.
Are you searching for an investment property that will pay off? We can help! Contact us today for a free consultation.
A condominium (condo) is a type of housing where several people own separate units in larger building or complex. Each unit is owned by an individual.
In real estate, a deed is a document that shows who owns a piece of property. When someone buys a house, they get a deed that shows they are the owners.
This is not the same as a Deed of Trust.
What is a Foreclosure?
When the lender takes ownership of a property due to failed payments by the buyer.
A foreclosure is when the lender takes ownership of a property due to failed payments by the buyer. It’s a legal process that can be complex and time-consuming. If you’re facing foreclosure, it’s important to understand your rights and options.
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 short sale?
The sale of a home sold for less than what’s owed on the mortgage to prevent foreclosure.
A “short sale” is a home sold at a discounted price. But why would someone want to sell their home for less than it’s worth? 🤔
Homeowners struggling to make payments on their mortgage are faced with the option to foreclose on their property, which can severely damage their credit.
But a short sale can leave less of a negative impact, and some sellers can qualify for other home loans once the short sale closes.
If you’d like to learn more about short sales in our area (how they work, if they’re in your best interest, or how to take advantage of them if you’re a buyer), send us a message 📲
