Home Buying FAQs
-
What is the Multiple Listing Service (MLS) and how does it work?
-
Why must I register using personal information prior to viewing MLS listings?
-
Why do I need a real estate agent and how do I go about choosing one?
-
What is the difference between the listing agent and the selling agent?
-
Can a Skyline Realty agent help me buy a property listed by another agent?
-
Where can I learn about mortgages and current interest rates?
What are the benefits of owning real estate?
Some major benefits include:
- an incredible return on investment,
- lowered taxation,
- equity preservation,
- security of owning your own piece of the world,
- the ability to pass along property to future generations.
For first-time buyers, buying a home means paying rent to yourself while preserving your initial investment. For investors, buying real estate is a form of retirement planning or a diversified investment plan. At Skyline Realty, we work to understand your needs and tailor a purchase strategy that meets your short or long-term goals.
What is mortgage pre-approval and why is it important?
Before you know how much you can afford to spend on a new home, you need to consult with a mortgage broker. The next critical step is meeting with your mortgage broker to discuss your income and debt amounts to help you determine an affordable price range and a monthly mortgage payment. We recommend that you determine how much you can manage to spend before you consider purchasing a new home. Pre-approved buyers are more appealing to sellers-it means you are ready to place an offer.
What is the typical process to buying real estate?
Below is the typical 5-step home buying process:
- After your mortgage loan pre-approval, you'll meet with your agent of choice to establish a relationship and assess your needs.
- Search and locate the right property.
- Make an offer. This is followed by the property inspection and other contingencies.
- Sign the Purchase and Sale agreement and review the documents.
- Final walk-through and closing.
Your Skyline Realty agent will support and guide you throughout the entire process. Your agent will also handle most of the paperwork and scheduling all of the appointments.
What is the Multiple Listing Service (MLS) and how does it work?
The Multiple Listing Service (MLS) is a database for thousands of listings throughout Greater Boston. You can choose to work with any agent who is a member of the MLS network regardless of what company he or she represents. We recommend that you only work with one agent per area since all offices through the MLS network access the same listings. All brokers and agents must abide by MLS regulations. Once you are working with an agent of your choice, you should let him or her complete the transaction for you regardless of whom the listing agent is. It is customary for listing and selling agents to work together to help you finalize your purchase.
What is MLS Property Finder technology and how does it work?
The MLS Property Finder technology is an advanced and sophisticated property search and notification system
built for the MLS platform, and works seamlessly with the MLS real estate listings. The system allows you to:
- Receive daily emails with new and updated real estate listings from any town in Massachusetts.
- Search the MLS for homes, condos, land, multi family and commercial properties.
- View full listing sheets showing amenities, taxes, lot sizes, beds, baths, rooms, siding, fireplaces, garages, room sizes and much more.
- Check schools and community profiles of your preferred towns.
- Save preferred listings in your own file to view anytime.
- Calculate approximate mortgage payments for specific properties.
- View new listings, price changes, and back on market properties right on your desktop as soon as they become available with the MLS Property Messenger and much more.
This service is free when you register with Skyline Realty. You may cancel your subscription at any time.
Why must I register using personal information prior to viewing active MLS listings?
The MLS requires us to obtain your name, address and contact information prior to giving you access to the MLS database. Registration is required to protect agents and MLS against fraudulent use of the service. Accounts with fake phone numbers or email addresses will be deleted. Skyline Realty uses the most advanced search technology available, so once you have registered you do not need to register elsewhere to see the same listings.
Why do I need a real estate agent and how do I go about choosing one?
It is estimated that 95% of listings sold in Greater Boston are sold via real estate brokers and offices. You should choose your real estate agent the same way you would choose your doctor, attorney or mechanic. You should base your decision on the agent's skill level, knowledge, reputation, ability to negotiate with the seller's agent, and his or her level of professionalism. We highly recommend that you work with only one agent at a time. With good planning, your agent can be a valuable guide through the maze of paperwork and challenges involved in home buying.
What is the difference between the listing agent and the selling agent?
Listing agents represent sellers, whereas buyer agents represent
buyers. A listing refers to his/her seller as a client; and a buyers
agent considers his/her buyer to be the client. Both play an equally
important part in any real estate transaction.
Can a Skyline Realty agent help me buy a property listed by another agent?
Yes. Skyline Realty is a member of the MLS network. In fact, Skyline Realty has one of the most sophisticated and advanced property search systems available. Once you have been assigned an agent, you can submit your offer through our office at any time and receive special incentives and rebates (ask your agent). It is important that you work with an agent that you feel is trustworthy and reliable regardless of his or her company affiliation. The MLS network has revolutionized the real estate industry because all agents and brokers have access to the same listings. Due to the flexibility and openness of the MLS system, you can now choose to work with any agent or broker you feel comfortable with.
What Are Property Tax Allowances?
Property Tax Allowances provide an opportunity for property owners to reduce their taxable income. There are a number of property tax allowances available to property owners, investors, and developers. We highly suggest you consult with a knowledgeable accountant who can better advise you in this matter.
What Are My Property Financing Options?
Over the past few years the mortgage industry has undergone enormous change. Banks are now more apt to lend to first-time buyers at lower percentages. There are many options to financing including fixed-term loans and adjustable rate loans. Discuss these options with your agent and your mortgage specialist. If you are putting down less the 20% for your initial down payment, most banks will charge you PMI (Primary Mortgage Insurance) since the lender's lending risk is considered higher. There are programs that allow you finance 3% of your down payment to avoid paying PMI. Again, consult with your agent or mortgage broker.
Should I consult an attorney?
Yes. The buying and selling of your home may be one of the most important transactions in your life. Factors other than the price of the property need to be considered. To ensure that no unexpected costs arise or problems appear in the transaction, it is best to seek the advice of your attorney before the Purchase and Sale Agreement is signed.
Who do real estate agents represent?
When choosing an agent, it is important to decide how to work together upon your first meeting. Below are some types of common agency representations:
- Seller Agency - Real estate agent represents seller on client basis and treats buyer as customer.
- Sub-agency - Where seller expressly or implicitly authorizes broker to use other agents to market property.
- Buyer Agency - Real estate agent represents buyer in real estate transaction.
- Exclusive Agency - Real estate agent represents client for a specified time period; i.e. Exclusive Buyer Agency: same as above and buyer may work directly with seller to the exclusion of buyer agent.
- Exclusive Right to Represent - Agreement between client and broker granting broker exclusive right to represent client. Agent is entitled to compensation regardless of who completes transaction during the period of agreement.
- Dual Agency - A real estate broker who represents both the seller and buyer in the transaction is a disclosed dual agent with written informed consent of both the buyer and the seller. Undisclosed dual agency is illegal.
What are the agent's obligations to his or her client?
A client may be either a buyer or a seller depending on the type of agency. Below are the agent's obligations to his or her client:
- Obedience - agent must carry out all lawful instructions of the client.
- Loyalty - agent must act in best interest of client.
- Disclosure - of all information that is relevant to client.
- Confidentiality - agent must keep the client's information or discussion private.
- Accountability - agent must account for all money, documents, or other personal property given to him or her by the client.
- Reasonable Care and Due Diligence - agent must be competent and capable of performing duties with scope of license requirements.
Where can I learn about mortgages and current interest rates?
Websites such as www.bankrate.com, offer you a good glimpse on mortgages and current interest rates. You can also check your local newspaper or call your local bank.
Where do I find information about first time home buying?
Before you start shopping for a new home, visit the U.S. Department of Housing and Urban Development
website, which contains valuable information for first time buyers.
