Buyer FAQ

Some of our listings are shown by the owner while others are shown by one of our Realtors. Either way, looking at a property is simply a phone call or email away.

None – The costs a buyer would have to purchase a home would be only with securing a mortgage such as application fees, appraisal fee, credit report, discount points, escrow fees, homeowners’ association fees, mortgage insurance, origination fees. If you purchase for cash there are no costs involved.

Bringing another agent will cost the seller more money (typically another 2.4% to pay the selling agent), consequently the seller may not have as much room to move on the price if any at all. The Homeowners Concept Realtor of any particular listing is an extremely experienced Realtor (we sell 4+ times as many homes than the average agent and have 19 years in business vs. 6 for the industry). He or she can answer any real estate questions and will prepare all necessary paperwork for you to purchase one of our listings.

This is the #1 question asked by buyers. There is no magic number. Most sellers aren’t necessarily certain of what they’re willing to accept until an offer is made. Based on averages, homes are sold for about 97% of asking price. There are too many variables for buyer and seller though to include here but lets just say that our vast real estate expertise is a tremendous asset during negotiations.

Appraisals are required by the lender. Their main focal point is to ensure that the home that’s being purchased is worth the purchase price based mainly on comparable sales. The bank will not allow the mortgage to take place if the buyer is overpaying for the house. In the event that the home is not worth what’s being offered, 1) The seller reduces their price to meet the value of the appraisal. 2) the buyer can walk away from the deal unharmed or come up with cash to cover the difference.

No, it’s not required to get a home inspection but it’s advised. Sometimes getting or not getting a home inspection can be used as a negotiating tool. Inspectors are licensed by the state of Wisconsin.

Land contracts are used in lieu of a mortgage. The land contract spells out the interest rate, the amount financed, the time the land contract will be in force, any balloon payment due and the amortized period (usually 30 years). Seller would hold the land contract and buyer would pay seller a monthly payment. Sellers can only hold land contracts if property is owned free and clear or unless the bank holding the mortgage signs off on it (extremely rare).

If you are “pre-qualified” you have determined, with a loan officer, what price you can afford based on the down payment, your debts and the amount the mortgage company will approve for your mortgage. Being “pre-qualified” is only a determination of your probable credit. If you are “pre-approved”, your credit, employment and funds have been approved by the lender.

When you make an offer, you will need to put up an earnest money deposit as a sign of good faith that you are seriously interested in buying a home. That deposit becomes a part of the purchase price and is held in a trust account by the broker until closing at which point the buyer receives a credit for it. Typically, earnest money is 2-3% of the offer amount.

Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.