Blog Buyers - Rilio Realty

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Filled with mysterious acronyms and confusing terms – we created these resources to demystify the real estate business.

How do commissions work?

Let’s talk about how real estate commissions work. A commission is basically a percentage of the sales price that is divided between the listing agent and the buyer’s agent. Commissions are normally paid for by the seller – and cover all the things that help the house sell fast . . . Things like signage, photography, and virtual tours. It also places the home in what’s called the MLS – or Multiple Listing Service. The MLS exposes your hundreds, maybe thousands, of other realtors who all have people looking for homes. All these realtor-provided services help your house sell faster – saving you thousands of dollars in bills and mortgage payments. Plus, by using a realtor, you’re likely to sell you home for much more than if you tried to sell it by yourself. When you look at it like that, paying a commission ends up actually making you money. At Rilio, we’re committed to making the home selling and buying process as fast, simple and easy as possible.

What’s My Option?

Did you know that real estate laws differ from state to state? If you’re considering buying a home in Texas, there’s a unique option available to you, called, well . . . an option. When you make an offer on a home you can pay an “option fee,” usually in the amount of one to two hundred dollars. This “option fee” gives you an Option Period – a window of time that lets you terminate the contract for any reason. An Option Period gives you time to get a complete home inspection, do plumbing tests, and anything else to make sure the home is not only insurable . . . but exactly what you want. During the Option Period, you can terminate the contract for any reason or proceed with the purchase of the home. An Option Fee is just one of the things that can help make your home buying process as stress-free as possible.

O.K., so what does “earnest money,” “down payment,” and “closing costs” mean?

Fair question.

Earnest money is the money you put down on a home when you make an offer. It’s a way to show to the seller that you’re serious or “earnest” about wanting to buy their house.

The down payment is a percentage of the home cost you pay directly to the seller. The amount of a down payment can be anywhere between 3% and 20%. So, if you’re buying a $100,000 home, your down payment could be anywhere from $3,000 to $20,000.

Finally, closing costs refer to the costs associated with processing all of the documents related to your home loan, appraisals, etc. Closing costs run around 3% – 5% of the cost of the home and can paid by either the seller or the buyer. They’re paid at the time of “closing,” when you sign all the paperwork that seals the deal.

When I find the home I want, how much should I offer?

This is where your Rilio agent will say, “‘We got this’ is not just a slogan.” Knowing how much to offer on a home is just one of the many reasons you want a trusted real estate pro in your corner. Your realtor will help you develop a competitive offer based on things like:

  • Comparable home prices in the area
  • The overall condition of the home
  • How long the home’s been on the market
  • How much mortgage is required
  • How competitive is the current market

And, of course, how much you really want the home.

What if my offer is rejected?

Let’s face it. No one likes to be rejected. But when we’re talking real estate offers, rejections are often part of the process. Don’t be discouraged. Your Rilio agent has ninja-level negotiation skills. They may suggest you offer more money in exchange for closing costs, a carpet allowance or specific repairs. The point is, everything is up for negotiation and it’s your realtor’s job to flex their arbitration muscles on your behalf.

Can I buy a home and sell my current one at the same time?

Well, it all depends. The biggest challenge with doing this, of course, is potentially overextending yourself. For example, you don’t want to have an offer accepted on a house you want to buy, then not be able to sell your current home. In situations like this, buyers who need to sell their current home will often make a “contingency offer.” Such offers are, like their name implies, contingent upon the sale of their current home and only goes through when they sell their house.

How many houses should I see before making an offer?

Today, prospective home buyers can look at hundreds of homes online. And, it’s a great thing to do too. Looking at lots of home lets you decide what floor plans you really like and what neighborhood seems to be right for you. When it comes to actually checking out the house in person, however, most people visit around 10 homes before they fall in love. But, just like love itself, everyone’s timeline is a little different. For some, it’s love at first sight, for others “it’s complicated.” Whichever category you fall into, you won’t be going it alone. It’s your realtor’s job to help you wade through the options and know when you’re ready to say “I do.”

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