Frequently asked questions
If you still have questions, please do not hesitate to call our office 24/7. We are here to answer any and all of your questions free of charge.
Questions for Buyers:
- Get Pre-Approved: This is the first step to knowing how much home you can afford. It also shows sellers that you're serious.
- Find a Realtor: Having an expert by your side is essential! Call the Erica Diaz Team at (407) 904-2702 to get matched with a local expert who will guide you every step of the way.
- Sign the Buyer Broker Agreement - With the recent NAR settlement, the process of buying a home now requires that buyers sign a Buyer Broker Agreement (BBA) before they can tour a property with a realtor. This rule change, effective in August 2024, ensures transparency regarding the realtor’s compensation and their role in the transaction. By signing the BBA, the buyer does not commit to any long-term obligation with the realtor but gains clarity and protection in the process. This agreement outlines the services provided and allows the buyer to understand exactly how the agent is being compensated. Importantly, the BBA helps to ease buyers’ minds, knowing that the terms are clear, but they are not locked into any exclusivity unless they choose to be.
- Search for Homes: With our in-depth knowledge of Central Florida, we’ll help you find the perfect home in the right neighborhood.
- Make an Offer: We’ll negotiate on your behalf to get you the best deal.
- Home Inspection & Appraisal: These ensure the home is in great condition and fairly priced. We help you navigate this process with ease.
- Close on the Home: This is the exciting part—sign the papers and get your keys!
With the recent NAR settlement, the process of buying a home now requires that buyers sign a Buyer Broker Agreement (BBA) before they can tour a property with a realtor. This rule change, effective in August 2024, ensures transparency regarding the realtor’s compensation and their role in the transaction. By signing the BBA, the buyer does not commit to any long-term obligation with the realtor but gains clarity and protection in the process. This agreement outlines the services provided and allows the buyer to understand exactly how the agent is being compensated. Importantly, the BBA helps to ease buyers’ minds, knowing that the terms are clear, but they are not locked into any exclusivity unless they choose to be.
Shows Seriousness and Credibility: Pre-approval demonstrates to sellers that the buyer is serious about purchasing a home and has the financial capability to do so. It indicates that the buyer has already started the financing process and that a lender has reviewed their financial information.
Helps Determine Budget: Pre-approval provides buyers with a clear understanding of how much they can afford to borrow. This helps them focus their home search within a realistic price range and prevents wasting time on homes that are out of their budget.
Strengthens Negotiating Position: In competitive markets, a pre-approved buyer often has a stronger negotiating position. Sellers are more likely to accept an offer from a pre-approved buyer because it reduces the risk of the deal falling through due to financing issues.
Speeds Up the Home Buying Process: Being pre-approved can expedite the home-buying process. Since the lender has already reviewed the buyer's finances, the final approval for the loan can happen more quickly once an offer is accepted. This can make the closing process smoother and faster.
Required by Some Sellers: Some sellers, especially in competitive markets, may only accept offers from buyers who are pre-approved. This ensures that buyers are financially capable and reduces the chance of complications later in the transaction.
Prepares for Possible Financial Issues: During the pre-approval process, any financial issues (such as credit problems or insufficient income) may come to light. This gives buyers the chance to address these issues before they start making offers on homes.
Overall, pre-approval provides clarity, security, and a competitive edge to the buyer in the home-buying process.
There’s no upper age limit, and as long as you're legally able to sign a contract (typically 18 or older), you can buy a home! Ready to start? Call us at (407) 904-2702—we’ll guide you through the process, whether it’s your first home or your dream retirement property.
The market changes constantly, but right now could be a fantastic time to buy, especially in Central Florida, where home values continue to rise. Curious if now’s the right time for you? Let’s talk! Call the Erica Diaz Team at (407) 904-2702 for a no-obligation market analysis.
It depends! Buying new may save you time and effort, while remodeling allows you to customize but can add unforeseen costs. Not sure which route is best for you? Let’s chat! Call us at (407) 904-2702, and we’ll help you figure out the right option based on your budget and goals.
Typically, it takes about 30-60 days from making an offer to closing.
Building allows for customization, but buying an existing home is often quicker and more affordable upfront. Need help deciding? Give us a call at (407) 904-2702, and we’ll walk you through the pros and cons based on your goals.
- Evaluate Your Finances: Lenders typically require higher credit scores and a larger down payment for second homes.
- Get Pre-Approved: Pre-approval is essential to know how much you can afford.
- Work with a Realtor: Call the Erica Diaz Team at (407) 904-2702 for expert advice on second-home purchases, especially in vacation hotspots like Central Florida!
Yes! If you have a self-directed IRA, you can invest in real estate. However, there are rules you’ll need to follow. Let’s discuss your options.
Yes, programs like USDA and VA loans allow for no down payment. Consider one of our preferred lenders for competitive rates.
Debt consolidation could temporarily affect your credit score, which may impact your loan approval. If you’re considering consolidating debt before buying a home, Consider one of our preferred lenders for competitive rates.
You’ll need:
- Good Credit - A credit score of at least 620
- Proof of Income
- Down Payment
- Pre-Approval Need help gathering these? We’re here for you. Visit our preferred lenders page for more details.
In general, you’ll need a down payment (3-20% of the home’s price) and closing costs (2-5%). We can break this down based on your unique situation— Visit our preferred lenders page for more details.
- Location, location, location!
- Condition of the home (inspections matter!).
- Potential for resale value. Want an expert to help with your home search? Call the Erica Diaz Team at (407) 904-2702—we’ll help you find the perfect match.
- Get Pre-Approved. (Consider one of our preferred lenders for competitive rates.)
- Work with a Realtor. Call the Erica Diaz Team at (407) 904-2702 to get started today!
- Search for homes that match your budget and lifestyle.
- Make an Offer and Close the Deal!
Most lenders require a credit score of 620 or higher, but some programs are available for lower scores. Call us at (407) 904-2702, and we’ll connect you with trusted lenders who can help. Consider one of our preferred lenders for competitive rates.
If you're financially stable and plan to stay in one place for a while, homeownership can be a smart move. Let’s discuss your options—call us at (407) 904-2702 for expert advice.
It depends on your financial situation and long-term goals. Let’s explore your options together—give us a call at (407) 904-2702 for personalized guidance.
This depends on your income, credit score, and current debt. We can help you figure out what you can comfortably afford—call one of our preferred lenders for competitive rates.
Aside from the purchase price, buyers should budget for closing costs (typically 2-5% of the home’s price), home inspections, appraisal fees, and possibly private mortgage insurance (PMI) if you're putting down less than 20%.
It depends on factors like the local market, how long the home has been on the market, and comparable sales in the area. I will analyze all of these to help you make a competitive, yet reasonable offer.
Common contingencies include a home inspection, appraisal, and financing approval. These protect you in case any issues arise during the process.
I’ll provide a comparative market analysis (CMA) that looks at similar homes recently sold in the area, the neighborhood’s long-term potential, and factors like schools and future developments.
To get pre-approved for a home loan:
- Check Your Credit: Ensure your score is in good shape.
- Gather Documents: You'll need proof of income, assets, employment, and ID.
- Choose a Lender: Consider one of our preferred lenders for competitive rates.
- Submit an Application: Complete the lender's application and provide the necessary documents.
- Credit Check: The lender will run a credit check.
- Receive Pre-Approval: If eligible, you’ll get a pre-approval letter stating your loan amount.
Pre-approval strengthens your buying power and helps set your budget.
Questions for Sellers:
Agents must disclose any known material defects about the property, as well as their relationship to the buyer or seller if applicable.
Real estate agents typically earn 3-6% of the sale price of a home, which is usually split between the buyer’s and seller’s agents.
Typically, the seller pays the real estate agent’s commission, which is split between the buyer’s and seller’s agents.
Real estate taxes in Florida vary by county and are based on the assessed value of your property. The average tax rate is around 0.83%.
Pricing your home correctly is key to attracting potential buyers. You should work with a real estate agent to conduct a comparative market analysis (CMA) that looks at recent sales of similar homes in your area. Consider factors such as the condition of your home, the local real estate market, and any upgrades or renovations you’ve made. Request a free comparative market analysis.
The time it takes to sell a home depends on various factors like the market conditions, price, and the condition of your home. In a seller's market, homes tend to sell faster, while in a buyer's market, it may take longer. On average, homes in a balanced market can take anywhere from 30 to 60 days to sell.
Preparing your home for sale involves decluttering, cleaning, making necessary repairs, and staging to make the home more appealing to buyers. Consider fresh paint, landscaping, and minor upgrades like updating light fixtures. A professional real estate agent can also advise on what improvements yield the best return on investment.
The ideal time to sell a home depends on your location. Generally, spring and summer are the best times to sell because the weather is favorable and families prefer to move before the school year starts. However, homes can be sold year-round, and the best time for you may depend on the local market and your personal situation.
Making necessary repairs before listing can help you sell your home faster and for a higher price. However, it’s essential to prioritize repairs that will provide a good return on investment. Minor fixes like patching walls, replacing broken tiles, or fixing leaky faucets can make a big difference, while more extensive repairs should be carefully considered based on your budget and timeline.
In a competitive market, you may receive multiple offers. When this happens, work with your real estate agent to evaluate the offers based on price, buyer’s financing, contingencies, and closing timeline. Sometimes, the highest offer may not be the best offer if it comes with difficult contingencies. You may also consider counter-offers or asking for “best and final” offers from all buyers.
Yes, in most places, sellers are legally required to disclose any known defects or issues with the property. This includes things like structural problems, water damage, mold, or pest infestations. Failing to disclose issues can lead to legal problems down the road.
Closing costs for sellers typically include real estate agent commissions (usually 5-6% of the sale price), title insurance, escrow fees, and prorated property taxes. Sellers can expect to pay around 8-10% of the sale price in total closing costs, depending on the state and the specifics of the transaction. Your real estate agent or title company can provide a detailed estimate of these costs before closing.
Real Estate Terms:
A contingent status means an offer has been made on a property, but certain conditions (contingencies) must be met before the sale can proceed. Common contingencies include financing, home inspections, or appraisals. Need help navigating a contingent sale?
Pending means that all contingencies have been met, and the sale is progressing toward closing. The home is essentially off the market while final steps are completed.
A real estate broker is a licensed professional who can run their own real estate firm and hire agents to work under them. They oversee transactions, contracts, and ensure compliance with laws. Want to know more about working with a broker?
A short sale occurs when a homeowner sells their property for less than what they owe on the mortgage. It requires lender approval but can be an alternative to foreclosure.
A real estate agent is a licensed professional who helps people buy, sell, or rent properties. They represent their clients’ interests throughout the transaction.
A buyer's agent is a real estate professional who represents the buyer's interests in a property purchase. They help buyers find homes, negotiate prices, handle paperwork, and guide them through the buying process. Unlike a seller’s agent, who works for the seller, a buyer’s agent advocates solely for the buyer. They are typically paid through a commission, which is usually covered by the seller, meaning the buyer doesn’t directly pay for their services. Working with a buyer’s agent ensures buyers get expert help and representation during the home-buying process.
A seller's agent, also known as a listing agent, is a real estate professional who represents the interests of the seller in a property transaction. Their role is to help the seller price, market, and sell the property for the best possible price. They manage tasks like listing the property, conducting showings, negotiating with buyers, and handling the paperwork. The seller’s agent works to get the best terms for the seller and is typically paid a commission, which is a percentage of the home’s sale price.
Pending means that all contingencies have been met, and the sale is progressing toward closing. The home is essentially off the market while final steps are completed.
When a home is under contract, it means the seller has accepted an offer, but the sale hasn’t been finalized. It’s in the process of meeting all contingencies and preparing for closing.
Pre-approval means a lender has reviewed your financials and conditionally agreed to lend you a certain amount for a home purchase. Need help getting pre-approved? Call one of our trusted lenders for competitive rates.
Yes, real estate is often considered a stable, long-term investment that typically appreciates in value over time. Want to explore investment opportunities? Call us at (407) 904-2702 for a free consultation.
REITs are companies that own or finance income-producing real estate. They offer investors a way to earn profits from real estate without directly owning property.
MLS stands for Multiple Listing Service, a database real estate professionals use to share information about properties for sale. Want your home listed on the MLS?
Preliminary status usually refers to a property that has just been listed and is in the early stages of marketing. It may not be fully available yet.
Real estate agents assist clients with buying, selling, and renting properties. They handle negotiations, marketing, paperwork, and guide you through the entire transaction.
Earnest money is a deposit made by a buyer to show they are serious about purchasing a property. It’s typically held in escrow until the sale is complete.
Due diligence is the period when buyers investigate the property and ensure everything is in order before finalizing the purchase. This can include inspections, appraisals, and reviewing documents.
Yes, real estate taxes and property taxes refer to the same thing—taxes paid on the value of land and buildings.
LTV stands for Loan-to-Value ratio, which measures the loan amount compared to the value of the property. A lower LTV ratio usually means better loan terms.
TD refers to Trust Deed, a legal document that secures a real estate transaction by transferring legal title to a trustee until the loan is repaid.
Underwriting is the process where a lender evaluates a borrower’s financials to determine whether they qualify for a mortgage.
