Q: What is the MLS?
A: The MLS is short for the Multiple Listing System. The MLS is a giant advertising engine, accessible to any Realtor in good standing with the Board of Realtors. Every home that is listed with a Realtor is advertised on the MLS, and each individual ad contains a wealth of data and information about that particular home.
Q. We are thinking about selling our home on our own. If a buyer comes in with a Realtor do we still have to pay their agent the 3% commission?
A. That depends on whether you choose to "cooperate" with agents or not. If you do not, agents will not bring buyers to your house. If you do cooperate, some agents will bring buyers, but if their client makes an offer and closes the deal, they will expect to earn a commission. A three percent commission is customary in Louisville, but you can attempt to negotiate, too.
Before an agent brings a client to your house, they will probably stop by and ask you to sign a "one time show" agreement. This prevents you and the buyer from negotiating directly in an attempt to not pay the agent’s commission.
Q. What does The Fairman Group do for For Sale by Owner (FSBO) Sellers in Louisville that other Louisville real estate teams do not?
A. The Fairman Group understands that times are tough! In an effort to help FSBO sellers in Louisville save a little extra money, The Fairman Group has developed a variety of marketing programs which have commission rates lower than 6%.
Additionally, The Fairman Group makes frequent visits to Louisville For Sale By Owner Properties, in an effort to familiarize ourselves with ALL properties available for sale in Louisville, Kentucky. This way, when The Fairman Group gets a new client seeking homes for sale in Louisville, we are able to show them all the properties available in Louisville, and not just those listed in the Multiple Listing System.
Q. Does The Fairman Group show For Sale by Owner properties in Louisville?
A. YES! As long as the seller of the FSBO property is willing to cooperate with a real estate agent, The Fairman Group is happy to show (and SELL!) FSBO properties in Louisville, Kentucky.
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Q. If I make an offer on a house, & the owner comes back with a counter offer which I accept, can the owner still change his mind and sell to someone else?
A. A seller is free to withdraw the counter-offer any time prior to your acceptance of it. The communication method for acceptance is usually described in the contract. If your acceptance was communicated to the seller in the method required by the contract (prior to the seller withdrawing the offer), the seller should honor the contract with you and not entertain other offers.
But people don't always do what they should.
Real estate agents in Louisville, Kentucky, and especially The Fairman Group are well-versed in these types of scenarios, and often can steer you through the home buying process so that such a situation does not have an opportunity to arise.
However, if such a problem should arise, The Fairman Group advises that you consult an attorney before making any decisions.
Many times, the most sensible thing to do in such a situation is to understand that the seller is unethical, and proceed on to the next home.
Q. Can I negotiate when purchasing a new home in Louisville, Kentucky?
A. While everything in real estate is negotiable, purchasing a new home in Louisville is not the same as purchasing an existing home. Most of the time the margin for profit is so small on new construction (per unit) that there is little room for negotiation on such properties.
Q. Can I negotiate price when purchasing a bank owned (foreclosure) property in Louisville, Kentucky?
A. Everything in real estate is negotiable. However, banks are more sophisticated about pricing than they were years ago. Lowball offers generally don't go very far, because the bank is already taking a loss on the property. Furthermore, with so many foreclosures available in Louisville, the financial loss to be absorbed by banks is astronomical. At the end of the day, banks are businesses which will do whatever they can to mitigate losses.
Q. Where can I find the “Code of Ethics” for Real Estate Agents in Louisville, Kentucky?
A. All real estate agents who are members of the National Association of Realtors are subject to a code of ethics. All members of The Fairman Group are members of the National Association of Realtors in good standing, and invite you to read the code of ethics at: http://www.realtor.org/realtororg.nsf/files/R_COE-Pledge-of-Performance.pdf/$FILE/R_COE-Pledge-of-Performance.pdf
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Q. What is Equity?
A. Equity is the financial interest or cash value of your home, minus the current loan balance(s). If selling the home, this would also be minus any costs incurred in selling the home.
If you're buying a home and don't have very much money for the down payment, you may want to find out if the seller would be interested in "sweat equity". This would allow you to perform the labor on any needed repairs and maintenence to the home, (such as outside repairs, painting or electrical work) in exchange for credit towards closing costs.
Q. Besides making my monthly mortgage payment, how can I build equity in my home?
A. When making your monthly mortgage payment, try to send a little extra. This “little bit extra” will go directly to the principal loan amount, rather than to the interest, thus building equity. Even an extra $50.00 a month can build equity in your home, and knock years off your loan!
Q. What are closing costs?
A. Closing costs are expenses incurred by the buyer and seller during the transfer of ownership of real property.
Some examples are: Closing attorney’s fees, Document Taxes, and Transfer Taxes
Q. What is a contingency?
A. A contingency is a provision included in a sales contract stating that certain events must occur or certain conditions must be met before the contract is valid.
The most common contingency is the sale of the buyer’s current home.
Q. What is earnest money?
A. Basically, earnest money is literally putting your money where your mouth is.
Buyers make earnest money deposits to the seller’s real estate firm upon contract acceptance. The money remains in an earnest money account held by the real estate firm responsible for representing the seller until closing. The money remains the buyer’s money throughout the process, unless the buyer defaults on the contract in some way.
Should the buyer become guilty of a breach of contract, the seller is entitled to the earnest money deposit as compensation for lost time.
Should the seller become guilty of a breach of contract, the buyer is entitled to a return of his or her earnest money deposit.
However, should all parties to the contract perform according to their contractual obligations; the money is used to help pay the buyer’s closing costs.
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