Below you will find the most frequently asked questions about real estate by home sellers.
Click on the big + button to view the answer.
What is an Offer to Purchase in real estate? 🤔
When does it come into play? And what does it entail?
An Offer to Purchase – usually just referred to as an offer – is a written document submitted by a prospective buyer to a seller that outlines the terms of the sale.
You’ve probably heard someone say:
We just put in an offer to buy our first home.
The buyer’s agent will be the one to submit the offer to the seller’s agent. The seller’s agent will then bring the offer to the seller.
It can be submitted at any time during the negotiation process, but it usually occurs after the buyer has made an initial offer and the seller has accepted it.
The Offer to Purchase should include all of the terms of the sale, including the purchase price, the down payment, the closing date, and any contingencies.
Once the offer is accepted, you are “under contract” to purchase the home, pending any contingencies.
Below is an example of an Offer to Purchase Real Estate.
What are Property Taxes?
Property Taxes are a levy or tax imposed by a municipality (city, town, or county) on real estate and personal property. The amount of tax varies depending on the property value.
Property taxes are an annual tax that local municipalities collect each year, based on the assessed value of your property (not on the appraised value of your home). These funds help pay for services that benefit the community, such as schools, roads, maintenance, etc.
First-time homeowners often forget to factor property taxes into the overall cost of their new home, which can come as a nasty shock come tax season. So let this be a reminder to all homeowners to calculate property taxes into their annual budget!
💰 BONUS TIP: If you own a rental property, your property taxes may be tax-deductible 💰
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 📲
