Here are some real estate questions I've received from viewers and my answers! Leave a comment or send me a message if you have any questions yourself.
In December 2022 I started a series on my Instagram page called Tuesday Trivia where every Tuesday I would answer a real estate question on my stories. It was very well received so I figured I would compile the questions and answers at the end of every month so that it can be referenced. Here are the questions from December 2022. I'd love to hear from you if you have any questions or just want to chat all things real estate!
Do I really need 20% down?
No, but you will need to pay monthly private mortgage insurance (PMI) if you put <20% down. Some loans will allow you to put as little as 3.5% down. Your monthly mortgage payment will be higher as well, so you need to weigh the options and figure out what's best for you and your financial situation.
When's the best time to buy?
I get variations of this question a lot. I say, don't wait! There is always the option to refinance if mortgage rates come down in the future. If you are renting you are not building any equity by spending your money on rent. So I think the best thing to do is buy so you can start building equity sooner. But, I think it really comes down to what's best for you and how comfortable you are financially. it's never too early to start talking to professionals. It's totally free to start a conversation with a mortgage broker to see what you can afford. Then you can get a better idea when the best time is for you. I'm also happy to chat with you about the market and your specific needs!
How do I know if a house is overpriced?
Real estate agents perform a comparative market analysis (CMA) to determine how much a house should be listed for or how much to offer on a house for sale. This is not the same as an appraisal which is usually done for tax purposes by an appraiser. A CMA is done by comparing the property to similar properties that have sold in that area in the last year. But, this also requires an understanding of the current market trends as they can fluctuate greatly in a year. Anyone can do it, but it's a good idea to use an agent when you go to buy or list your house because they study the trends in that specific market.
Did you find these questions helpful? Have a question I haven't answer? Leave it in the comments below!
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