FREQUENTLY ASKED QUESTIONS:

Q: Do sellers have to disclose the terms of other offers?  What must a seller disclose?

A: According to our legal counsel, sellers do not have to disclose other offers to buyers or their agents.  Sellers and their agents are free to act in their best interests and sellers generally seek the highest price for the home and the best terms, including closing dates that fit their schedule, short financing application and approval times and earnest money deposits. If multiple offers are received, a seller has discretion to:
 

• Notify all agents representing buyers to submit their highest and best offer by a certain time;
• Work with one offer to reach terms of a contract; or
• Inform one party that the seller is working with another offer and advise them to keep their offer “on the table” for a few days.  This strategy allows a seller to work with a buyer while leaving open the possibility that a back-up offer is available for consideration.

Sellers may not withhold information concerning known defects, needed repairs or code violations and agents who become of such defects are obligated to inform all parties of the transaction, regardless of which party they represent.

Q:  Should I consider an Auction of My Property?

A: Realty Corporation of America is pleased to offer auction services with Wayne Luoma.  We are an innovative auction firm, locally owned and operated, with in-depth knowledge of the Ohio marketplace.  We utilize targeted marketing campaigns, and have created sophisticated mechanisms to disseminate detailed property information to promote properties for sale. 

Auctions of real estate offer many distinct advantages to both buyers and sellers over conventional real estate marketing.  Benefits include the following:

 

• A date certain for a property sale creates both buyer urgency and eliminates lengthy marketing campaigns
• Buyers gain confidence that the price paid for a property is derived through a fair, open bidding process
• A competitive environment assures the seller that the property’s true market value is achieved.
• Customized and targeted marketing campaigns that highlight the unique attributes of each property

  To learn more about how auctions may be of value to you, or to discuss the merits of including any of your real estate holdings in upcoming auctions, kindly contact Tony Viola at 215-522-0020 or tony@realtycorpofamerica.com or visit Realty Corp Auctions web site

Q: Should I add on or buy a bigger home?

A: Consider these questions before making a choice between adding on to an existing home or moving up in the market to a bigger house:
 

• How much money is available, either from cash reserves or through a home improvement loan, to remodel the current house?
• How much additional space is required? Would the foundation support a second floor or does the lot have room to expand on the ground level?
• What do local zoning and building ordinances permit?
• How much equity already exists in the property?
• Are there affordable properties for sale that would satisfy housing needs?
• Would the addition add enough value to the existing home to be worth the time and effort that a major remodeling project entails.

Ultimately, the decision should be based on individual needs, the extent of work involved and what will add the most value.  If you would like to learn more about the costs of a home equity loan, or securing an equity line of credit to add onto your home, kindly contact Mr. John Caputo at TLG Cleveland at (440) 823-5049.

Q: What do all of those real estate acronyms in the ads mean?

A: If you find yourself stumbling over unfamiliar acronyms in a real estate listing, you are in good company!  Realty Corporation of America gets many inquiries about this subject and is pleased to clearly explain the following terms
 

• assum. fin. -- assumable financing
• dk – deck
• gar -- garage (garden is usually abbreviated "gard")
• FDR -- formal dining room (not the distinguished former president)
• FHA – Federal Housing Administration, a government loan guarantee program that encourages home ownership by allowing buyers with less that perfect credit buy a home.
• frplc, fplc, FP -- fireplace
• FSBO – For Sale By Owner
• grmet kit -- gourmet kitchen
• HDW, HWF, Hdwd -- hardwood floors 
• In-law potential -- potential for a separate apartment. Sometimes, local zoning codes restrict rentals of such units so be sure the conversion is legal first.
• lsd pkg. -- leased parking area, may come with an additional cost
• pvt -- private
• pwdr rm -- powder room, or half-bath .
• SARO – Submit All Reasonable Offers
• VA – Veterans Administration, generally referring to a Loan Program for eligible Veterans of the United States Military who received an Honorable Discharge from duty.

Q: Is a low offer a good idea?  How should Sellers respond to a Low Offer?

A: While your low offer in a normal market might be rejected immediately, in a buyer's market a motivated seller will either accept or make a counteroffer.  Realty Corporation of America suggests that any substantially below market offer should be accompanied by a strong letter of pre-approval from a reputable financial institution, an “AS IS” purchase agreement, a fast closing date and earnest money.  Therefore, a seller wishing to sell quickly realizes that, while the offer is very low, the other terms are attractive.

Sellers are often too quick to dismiss a low offer.  The savvy seller, and seller agent, realizes that no offer means no chance of reaching an agreement but that a low offer can give us some chance to make things work.  Sellers may instruct the agent to provide an oral guidance to the other agent … “Well your first offer was very low but if you submitted a revised written offer of X dollars, I think I can get a counter back to you."  It is very important to keep the lines of communication open between agents.  A buyer who submitted a low offer may later realize – after seeing other properties and considering other options – that it’s worthwhile to increase the initial offer. Keep lines of communication open and maintain a positive approach!  Realty Corporation of America has closed dozens of successful transactions that started with a very low initial offer!

Q: What is the difference between market value and appraised value?

A: Appraised value is a certified appraiser's opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the loan application process; fees range from $200 to $300.  Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.

Q: What are Realty Corporation of America’s suggestions concerning a “tough to sell” property?

A: Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home.  The first step is to lower the price. Also, carefully analyze the property to see if there are cosmetic defects that need to be addressed or repairs that should be made. In addition, sellers should consider making the home attractive to the widest array of potential buyers by offering to pay closing costs or participate in a downpayment gift program so buyers with limited resources can purchase the home.

Finally, it is important that the seller and Realty Corporation of America are in agreement with the sales and marketing strategies being provided.  For example, direct mail campaigns, additional open houses, special financing offers or a bonus to the selling broker can be employed to increase interest in the home.


Q: What is the difference between list and sales prices?

A: The list price is the price tag put on a house in a real estate listing; it usually is only an estimate of what the seller would like to get for the property. The sales price is the amount a property actually sells for. It may be the same as the listing price, or higher or lower, depending on how accurately the property was originally priced and on market conditions.

Q: What is the best time to buy?

A: Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school year begins.

The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period.