If the built-up equity in your current home will be applied to the down payment on the new home, naturally the former will need to be sold first.

Some home buyers decide to turn their current home into an investment property, renting it out. In that case, the current home will not need to be sold. However, your loan advisor will still need to evaluate your risk profile and credit history to determine whether making a loan on a new home is feasible while retaining title to the old home.

Buyers often have a short time frame to sell their current home when relocating to a new city because of a job transfer. If you are moving but taking a position with the same employer, check to see if they offer relocation assistance to help offset some of the costs.

In sellers’ markets, increasing demand for homes drives up prices. Here are some of the drivers of demand:

• Economic factors – the local labor market heats up, bringing an inflow of new residents and pushing up home prices before more inventory can be built.
• Interest rates trending downward – improves home affordability, creating more buyer interest, particularly for first time home buyers who can afford bigger homes as the cost of money goes lower.
• A short-term spike in interest rates – may compel “on the fence” buyers to make a purchase if they believe the upward trend will continue. Buyers want to make a move before their purchasing power (the amount they can borrow) gets eroded.
• Low inventory – fewer homes on the market because of a lack of new construction. Prices for existing homes may go up because there are fewer units available.

Another popular question to ask a Realtor is when should I put my home on the market. This is one of my favorite questions from home sellers. Why? I will answer honestly, while most agents will always say “right now.” It is still easy to spot an agent that gives advice based on what’s best for them.

Of course, you want to sell when you are likely to get the best possible results. But when is that? The answer is complicated. Generally speaking, the best time to sell is when you are ready. There are advantages to selling in every season, despite what some agents may try to tell you.

Spring is undoubtedly considered the most ideal in many circles, but that does not mean you can’t get great results in summer, winter, and fall. You just need an agent who knows how to sell year-round. They are out there, so if you want and need to sell in a season that isn’t’ spring, know that you can do so and be happy with the results.

You can learn the tips for selling a house in each of the seasons of the year. Whether you are selling in the spring, summer, fall, or winter, you’ll get some excellent advice for each of the time frames you might choose to sell your property.

If time is of no consequence, then sure, Spring is probably the best time of year to sell. If I was selling my own home and had no time constraints, that’s when I would do it.

An excellent question for any seller to ask a Realtor is, “what should I do to get my house ready for the market?” There is a lot of work to be done before you list your home.

Everything must be done behind the scenes before allowing buyers to look at your home and start asking questions.

That way, when you finally open the doors, you are prepared to make a sale then and there—and don’t need to do a bunch of stuff that you overlooked.

Your agent is the best-qualified person to help you identify what needs to be done before you sell. Keep in mind that every home is different, so the advice you get for your home might be different than the information another seller would get.

That being said, there are some things that almost every seller needs to do. These include:

• Clean things up. No one wants to buy a dirty house. Or, in reality, only bargain seekers are going to be highly interested in a cluttered, messy home because they assume they can get a great deal from an as-is seller. If you want reasonable offers, you need to remove clutter and clean it thoroughly.
• Declutter and rent storage if necessary. When selling a home, first impressions and appearance can make or break how much you’ll put in your pocket. It’s wise to declutter your home as much as possible. A few great ways to do that are having a donation pick-up or renting a storage pod or storage unit.
• Make needed repairs. Broken door handles, missing tiles, stained carpets—there are probably several little jobs that need to be done around your house before you list it. The more of these small, cheap fixes you make, the more desirable your home will be. Proper home maintenance shows you care for your property. There may also be big jobs that need to be done. Wait to talk to your agent before you invest in any major repairs to be sure that doing so will benefit your sale as you expect. Doing your part before the home is listed for sale is also a side benefit for being ready for the house inspection.
• Take great pictures. The photos on your listing are the first thing that most buyers are going to see. You want them to be good, and it takes talent and practice to produce those kinds of pictures. Your agent should either be skilled at taking real estate pictures or know someone who is. That way, your listing looks as good as possible and shows the best side of your home. See some great tips for shooting your real estate photos.

If you have never sold a house before, this is a great question to ask a real estate agent.

What real estate agents do and what home appraisers do are a bit different. The result, however, is getting to what a buyer will most likely pay for a property.

Both appraisers and real estate agents use comparable sales or “comps” to determine fair market value. Real Estate agents will perform what’s called a comparative market analysis.

More than likely, the report generated will include the following:

1. Closest homes in similarity that have sold close to the property.
2. Similar homes are currently under contract but haven’t closed yet.
3. Competing properties that are currently for sale in the general price point.

The most important data is what has sold. The least important is what is currently for sale. The price for these homes can change at a moment’s notice. You never want to hang your hat on what someone thinks their home is worth.

The analysis that your real estate agent performs will compare your house to other properties that have sold. The evaluation will include the following points of interest.

• The size of the home, or more commonly what’s referred to as the square footage. While size is a crucial variable, unskilled agents will use this as the end all be all in comping properties. Using square footage to value properties is a sure-fire recipe for disaster.
• The style of the home – for example, is it a colonial, contemporary, or a raised ranch.
• The number of bedrooms.
• The number of bathrooms.
• The condition of the property.
• The amenities such as central air, central vac, alarm system, sprinkler system, and a whole host of others that affect value.
• The age of the house.
• Ages of mechanical and structural components such as roof, heating, and cooling systems.
• The desirability of the lot.
• The appeal of the neighborhood or school district.

The list price is the price you list the home for sale. It is the reasonable goal you set for your sale, one you hope to get close to as you make the transaction. The sale price is the price that you actually sell the home for after negotiations. A terrific agent should be able to help you set a price that will be close to the sale price.

A word of caution – many less desirable real estate agents will present their market analysis to sellers without giving a seller a list and sale price. Your real estate agent should be setting proper expectations from day one.

The best agents will suggest you list at X with a probable sale price of Y. One of the essential skills of a real estate agent is accurate pricing. Agents who are worth their salt will be on the money with the price.

Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.  The current interest rates are incredible.  A 30-year FHA mortgage can be locked in at a rate of around 3.5%.  Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent.

There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home, if you were to purchase.  If the answer is only a few years, it’s likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional “responsibilities” of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that?

Buying a home is a great option in many cases, but not always.

Can you find a needle in a haystack?  Of course you can, but the probability isn’t very high.  The same can be said about a rent-to-own property.  A common question from home buyers is whether rent-to-owns exist or whether an owner would consider that option.  They are out there, but there are somethings that you need to know before agreeing to a rent-to-own.

When an owner is offering “rent-to-own” as a possible financing option, they are taking on a high risk since in most cases, a rent-to-own buyer has a credit score that is not impeccable.  Since an owner is taking a higher risk the terms for a rent-to-own must be considerably favorable for the owner.  This often leads to less than favorable terms for a buyer.  When looking at a rent-to-own as an option you can expect to provide a considerable amount of money down and a higher interest rate than what a lender is currently offering.

If you’re able to purchase a home by financing through a bank or lender, you will be better off because the terms will be more favorable.

One month of rent, the security deposit, pet deposit if applicable, and any short term lease fees (if applicable) will all need to be paid in certified or cleared funds prior to you receiving keys for your new home.

Landlords are allowed to raise the rent once the lease has expired. If you decide to stay in the same apartment next year, you should read your new lease carefully and make sure the rates haven’t gone up. If they have, see if you can negotiate with your landlord. If you are renting a month-to-month apartment, then rent increases are more likely to occur. In this case, landlords can raise the rent every month if they wish. But it’s important to note that many states require a 30 day notice before the rent is officially raised. This will give you time to find a new place if you cannot afford the new rent price.

The security deposit is a set amount of money that the landlord takes from you as collateral for the structural integrity and cleanliness of the house. In other words, this money is set aside by the landlord to inspire tenants to take good care of their rental property, and if you don’t, it gives them the opportunity to recoup those losses.

It is very important to know the difference between these two terms, as they will determine how long you’ll stay at a place and sometimes even the rent price. A fixed-term lease is an agreement that states the tenant will remain in the apartment or home for a pre-determined amount of time — usually a year. Month-to-month leases also tend to have higher rent prices because the landlord is not guaranteed income for the next month. Unless you are in a precarious or time-sensitive situation, it’s often a better financial call to go with the fixed-term lease.

When you make an offer on a home, your agent will ask for a check to accompany it (checks are the same as cash, and the deposit is typically 1% to 2% of the purchase price). Earnest money is made in good faith to demonstrate – to the seller – that the buyer’s offer is genuine. Earnest money essentially takes the home off the market to anyone else and reserves it for you.

The check (or sometimes cash) is deposited in a trust or escrow account for safekeeping. If a deal is struck, the earnest money is applied to the down payment and closing costs. If the deal falls through, the money is returned to the buyer.

Important: if the terms of a deal are agreed upon by both parties, but then the buyer backs out, the earnest money may not be returned to the buyer. Ask your agent about the ways to protect your earnest money deposit and the ways to protect it – such as offer contingencies.

Closing costs are expenses incurred by buyers and sellers when the ownership of the property is transferred. These are usually negotiable items as to who will be responsible for their payment. Examples of closing costs include recording fees, documentary fees, real estate commission, taxes prorations, settlement fees, and title insurance.

You can build equity in three ways. First (and easiest) is from market appreciation. Second, when making your monthly mortgage payment, try to send a little bit more. This will go directly to the principal of the loan, rather than the interest. Be sure your lender knows to put the extra toward principal, and not the next month’s payment. Even an extra $50 per month can quickly build equity, as well as knock years off of your loan. The third way to build equity into your house is to make improvements. There are a variety of ways to remodel and make positive changes to the interior and exterior of your home. One of the best ways is to add square footage/living space.

Title Insurance insures a buyer that he or she is getting clear title to the property without any liens or encumbrances. A title insurance company researches the county records to see what has been recorded on the property. The title commitment will show what loans need to be paid off and what restrictions, if any, are on the property. The cost is determined by the sale price and varies with insurers. Typically, the seller pays for the policy, and any endorsements required by the buyer’s lender are usually a buyer’s responsibility.

Recently sold properties that are similar in size, location, and amenities to the home for sale are considered “comps”. You may hear this word when an appraiser or Realtor is helping to determine the fair market value of a property.

MLS stands for Multiple Listing Service. It’s a network of real estate listings in an area, where buyers can (through a Realtor or the Internet) view what is available in their price range, and with the features they are looking for. It is a system usually run and supported by the local Real Estate Board that has details of almost every home, land, and business listed for sale with a real estate agent.

Yes! Home inspections are required if you plan on financing your home with an FHA or VA loan. For other mortgage programs, inspections are not required. However, home inspections are highly recommended because they can reveal defects in the home that are not easily detected. Home inspections bring peace of mind to one of the biggest investments of a lifetime.

Contingencies are “what ifs” in a real estate purchase and sale contract. They allow a buyer or seller to void the contract if certain items aren’t met. Examples of real estate contingencies are appraisal, inspection, house sale, and loan approval contingencies.

A loan commitment letter is given by the lender to the borrower stating the terms under which the lender has agreed to the loan. This is often considered “loan approval” which will allow the buyer to proceed with consummation of the real estate purchase.

An appraisal is an estimate of the value of a piece of property by a licensed, trained, and experienced individual called an appraiser. They are usually required by a lender to determine how much the property is worth in ascertaining how much they will loan on the property.

Making home improvements that add value to your home are a smart investment. But over improving real estate can be like pouring money down the drain. Too often homeowners make improvements that fit them specifically, which narrows down the market for resale. While it’s important to enjoy the amenities of the home in which you live, it’s still essential to think about potential resale of the property. When you improve your home, you get value in two ways—the economic value that comes when you sell the home, and the enjoyment value you get now. You may enjoy a $20,000 walk-through garden, but a new owner may see high maintenance and less time to enjoy boating at the lake. Some improvements never pay off such as hot tubs, swimming pools, trendy paint colors, elaborate gardens, or high-end fixtures. The more the home is customized for you, the less likely it will be acceptable to a potential buyer. To maximize the salability of your home, stay neutral. Replacing carpet and painting interior and exterior surfaces provide some of the best increases in selling price per dollar invested. Other less expensive projects that provide a good return are cleaning and uncluttering a home, and making sure that the home is light and bright through both natural and artificial light.