 | Below are some common questions frequently asked by customers and clients. |
What is the average price of a home on St. Simons Island? Currently, as of the first quarter of 2005, average home prices on St. Simons Island in about $500,000. Average condo prices run about $325,000. What is Buyer's Representation? It's when a Buyer hires a real estate professional to assist them in finding a home. Much like a homeowner hiring someone to sell their home. A client-agent relationship is created in which the Buyer receives a higher level of services including but not limited to full-disclosure, undivided loyalty and confidentiality. For more, check out my section explaining more in my Buyer's page! If I sign a Buyer's Brokerage Engagement, am I responsible for paying the agent? It all depends on what you and your agent agree upon. In most cases, your agent will be paid by the Listing Agent -- our MLS provides for cooperation between agents by allowing the listing agent to split his commission with the Buyer's agent. This only works, however, when the Buyer allows the agent to make first contact and take care of business. If you, call on a property on your own or pop into an Open House, without identifying to that other agent that you are working with a agent, that Listing Agent can deny payment to your agent. Depending on your contract's provisions, you may me responsible for paying the agent directly if this happens. Learn more in my section on Client Services. Can you help me buy a FSBO? Of course we can. As I mention in my Buyer's FSBO page, I would always recommend that you have a representative on your side when dealing with other agents but especially when you're dealing with a FSBO. As your agent, I can help steer the transaction in the right direction, ensure that the Seller is aware of the legal disclosures that must be made under the law, act in your best interest and guarantee that everything is executed appropriately. My goal is to help you purchase the right home and that means showing you every home that meets your criteria in our market, not just the ones listed in our MLS. I comb the papers and watch for signs in the community on a regular basis to find the right home for you. Most FSBO's will agree to pay a fee if an agent brings them a buyer for their home. If they won't pay a fee, don't worry... as I said, my goal is to help you find the right home -- and if a FSBO is the right home for you, I will still work with you through the transaction. What's my angle for potentially working without pay in a FSBO deal? The angle is this: In real estate, our business is about building relationships and cultivating future business through those relationships via referrals and word of mouth. I believe that if I do by right by you in a situation like this, the rewards will come later through that relationship we build together. How much money should I put down for earnest money? There is no set amount. In fact, earnest money is not required in order to make an offer. Of course, earnest money shows the Seller that you are 'earnest' in your offer - hence the name. A good rule of thumb can be as simple as 1% of the offer price so for a $200,000 home, perhaps a $2,000 binder may be appropriate. It's whatever you are comfortable with putting up. Some builders of new construction homes may require earnest money -- some may even require higher amounts of earnest money, especially if you are making changes or adding upgrades not normally common for that particular builder. What are the closing costs associated with selling a house? As the seller, the closing costs are essentially minimal. You are responsible for the property tax on your home through the date of closing, overnight fees and whatever else you may have arranged to have paid out at closing such as repairs etc. You are also responsible for the transfer tax which is .10 per $100 increment on the sales price so for a $250,000 home, you would divide $250,000 by 100 and then multiply it by .10 for $250 in transfer tax. What are the closing costs associated with buying a home? Essentially, the bulk of closing costs for a Buyer tends to be those associated with your loan such as origination fee, processing fees, credit search fees, escrow for insurance and taxes etc. Other costs include intangible tax, which is a tax on the loan amount - essentially, $1.50 per $500 increment in loan amount. Other fees include attorney's fees, title search fees, title insurance, appraisal, termite letter, home inspection, surveys etc. (if you've arranged to pay such items at closing). In Glynn County, you will be credited with the portion of the property tax owed by the Seller so that when the tax bill comes due at the end of the year, you are responsible for the entire year. What is a good faith estimate? A good faith estimate is what a lender can provide you on all the costs associated with their loan and the amount needed to close. This provides you a ball park figure of what you would need to bring to the closing table in addition to your down payment. These forms are regulated by the Feds in line item detail allowing you to comparison shop lenders for the best loan. Interest rates are not always the only thing to look at as you shop a loan -- compare and shop around for lower origination fees, points, etc. What is a HUD Settlement Statement? Required by the Dept. of Housing and Urban Development (HUD) - this is the final settlement statement that is drawn up by the closing attorney and signed by all parties at closing. It states clearly where all the comes from and where all the money is going on both sides of the transaction. By law, it should be made available for review by the parties 1 day prior to closing - although sometimes, if the loan package arrives late or there are last minute changes, it's not always possible. Do I have to disclose my income or other financial matters to my REALTOR®? No. Financial matters can remain strictly between you and your lender. You can give the lender permission to disclose certain limited information to your agent such as the fact that you have been approved and the amount for which you have been approved. Outside of that, your agent technically does not need any further information to assist you in the transaction. When you make an offer, all you need to disclose on the contract is how much you are financing as a percentage and what type of loan and what rate of interest you plan to get. No sensitive personal financial issues need be disclosed to your agent or any outside parties. In many markets, including ours, if you are viewing higher priced homes upwards in the million dollar and up range, the listing agent may ask for qualifications so that they are not showing high-end properties to just any curious on-lookers. This is common -- but if you are serious, all you need is a letter of qualification from your lender stating that you are pre-approved for a certain amount. It is always best to be pre-qualified by a reputable lender PRIOR to starting your home search!
If you have additional questions not addressed here, please feel free to contact me! I will be adding to this page periodically based on additional questions raised by my customers & clients! 
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