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Real Estate
Norwottuck Realty Company is a full service real estate company dedicated to excellence. Norwottuck Realty Company is owned by Kenneth Lieberman, an attorney and Massachusetts licensed real estate broker. Buyers and sellers represented by Norwottuck Realty Company will receive FREE LEGAL SERVICES associated with the closing of the property as part of the commission.
Frequently Asked Questions
Q: Why do I need an agent if I can find a home myself on the Internet?
A: While more buyers now use the Internet to gain access to listings, or available properties for sale, it is still a good idea to use an agent. The agent brings value to the entire process: he or she is available to analyze data, answer questions, share their professional expertise, and handle all the paperwork and legwork that is involved in the real estate transaction.
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Q: What is an “Offer to Purchase Real Estate”?
A: The offer to purchase real estate is a general agreement that offers to purchase a property at a certain price. It usually states that the rights of the parties will be set forth in a subsequent contract called a "Purchase & Sale Agreement." An offer is an important document and has been recently held in one Massachusetts case to constitute a contract that is binding on the parties.
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Q: What is a “Purchase and Sale Agreement”?
A: I can draft a Purchase & Sale Agreement that will protect you throughout the process. This is generally the contract that sets forth the full rights and duties between Buyer & Seller and sets the time for performance. There are many issues that are crucial in this contract. For example, is there a "Mortgage Contingency Clause" that allows the Buyer to cancel the contract if he or she can't get a mortgage? What happens to the deposit if one party fails to honor the contract? These issues should be carefully considered by your attorney and not left to a Broker to determine by using a standard form. Home inspection rights, for example, can lead to negotiations that can reduce the purchase price. In this area, it is not wise to represent yourself.
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Q: What are some issues related to mortgage financing?
A: Not all lenders or mortgages are the same. Rates and terms vary. Some require "Points', while others do not. "Points" are loan fees that the lender charges you, usually in exchange for a lower interest rate. Good Faith Estimates of loan costs as well as the "APR" (annual percentage rate) are terms that you need to understand to evaluate the true cost of a loan.
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Q: What is a “title examination”?
A: After the purchase and sale agreement has been signed and financing arranged, a full examination of the title must be undertaken. Title examination requires interpretation of all the deeds, mortgages, court decrees and all other documents affecting the title, considering the time sequence of transactions and events affecting the title, and applying the law and court decisions to the various situations arising in the title examination. Since the cost of correcting title defects is the seller's obligation, it is important that the title examination be completed and that title defects be corrected by the seller's attorney, before the buyer takes title and possession of the house.
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Q: What is “title insurance”?
A: The vast majority of lenders require that a lender's title insurance policy be procured at the closing. This policy is part of the costs paid by the buyer at the closing. At the same time the buyer may elect to purchase for an additional one-time premium an owners title insurance policy which will protect your equity interest against any claims that might arise during the period of time you own your home.
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Q: What is a “Closing”?
A: The Closing is the final stage of the purchase transaction where a Buyer receives the legal Title (by deed) and possession of the property in exchange for a payment by the Buyer. Usually the purchase money is obtained by the Buyer from a Lender who then secures the loan with a mortgage and note. The financial aspects of the closing are summarized on a HUD Form that discloses any charge and cost involved in the loan.
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Q: How do you prepare a house to sell?
A: Doing whatever you can to put your house's best face forward is very important if you want to get close to your asking price or sell as quickly as possible. Short of spending a lot of money, here are several ideas for making your home show better:
- Sweep the sidewalk, mow the law, prune the bushes, weed the garden and clean debris from the yard.
- Clean the windows (both inside and out) and make sure the paint is not chipped or flaking. And speaking of paint, if your home was built before 1978, new federal law gives a buyer the right to request a lead inspection. If you think you might have some problems, do the inspection yourself beforehand and make any fixes you can.
- Be sure that the doorbell works.
- Clean and spruce up all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
- Organize closets.
- Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
- Make sure the house smells good: from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the cat litter.
- Put vases of fresh flowers throughout the house.
- Pay special attention to pets, particularly dogs. They can be intimidating. Put them on a leash and in the backyard. Better yet, when possible, take them with you. And be keen to pet odors. They can turn buyers away.
- Having pleasant background music playing in the background also will help set your stage.
- Once your home is being shown strive to keep it in tip-top shape.
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Q: How is a home’s value determined?
A: You have several ways to determine the value of a home.
An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300.00 for a $250,000 house.
A comparative market analysis is an informal estimate of market value performed by a real estate agent based on similar sales and property attributes. Most agents offer free analyses in the hopes of winning your business.
You also can get a comparable sales report for a fee from private companies that specialize in real estate data or find comparable sales information available on various real estate Internet sites.
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Q: What is the MLS and how does it work for you?
A: The MLS is a service that real estate agents subscribe to in order to share information about their listings. All real estate agents with MLS membership can access information and photos of every property listed in the MLS. The statewide MLS (MLSPIN) covers the Hampshire/Franklin County of Western Massachusetts.
With the increasing use of the web as a real estate search tool, you may think you can simply post your home on the Internet and buyers will find you. They might, or they might not. But having your property listed in the MLS guarantees it will receive the widest possible exposure, since agents from member firms can show all of the properties placed in the MLS, regardless of who the listing agent is. An advantage the MLS has over listing information on the Internet is accuracy. The MLS is updated continuously, but Internet information may be weeks old.
Some discount brokerages are also not members of the MLS, which means their listings are not available for other agents to see or show. If you hire one of these firms, remember that it reduces the exposure your property will get.
The MLS is a great tool for exposing your home to the largest pool of potential buyers. If you'd like more information about the benefits of the MLS or how it can work for you, contact me.
The Multiple Listing Service is a cooperative marketing system set up by Realtors to facilitate real estate transactions. Under this arrangement, Realtors register all of their listings in a central index. With this index, any Realtor, regardless of their agency affiliation, is able to sell any house listed by any agency.
Let's assume you are a prospective homebuyer and you have been working with a Realtor. This is "your Realtor." You like them and you feel they have been working hard to find you a property. They understand your situation and they know what you want. Your Realtor should always be the one you call for information on any house you see, regardless of whose "For Sale" sign is in front.
Occasionally, a buyer who is working with a Realtor they like will call the telephone number on the sign of a house that they have driven by and are curious about. Their intention is to "not bother" their Realtor until they first see if they like the house. They plan to put their offer in through "their" Realtor after seeing the house with another Realtor.
Your Realtor will probably not be permitted to enter the transaction at that time. According to the rules governing Realtor activity, it is very important which Realtor first actually takes the buyer into a house. Therefore, if you are working with a Realtor and you would like them to be involved in the transaction, the best way to find out about any house is to call your Realtor with your questions and have your Realtor be the one to show you the property.
You might wonder if you could pay a little less for a house by calling the listing agency, rather than involving your Realtor. The answer is no, you cannot get it for less. The brokerage fee is agreed upon between the seller and the listing agency when the property is initially listed, and will not be reduced even if the property is sold through the listing agency. The sellers pay the same commission, whether your Realtor is involved or not. So when you drive by a house or see an advertisement for a property that interests you, it is always best to contact your Realtor and let them make the arrangements to show you the property.
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