Frequently Asked Questions
Questions about selling
Quite simply, land appreciates because it’s in limited supply. After all, no one is producing any more earth. Consequently, as the population increases, so does the demand for land, driving its price up over time. Therefore, investors should consider how land appreciation can offset the depreciation of a home, which requires capital infusion for maintenance, as it ages.
Sellers usually pay about 8–10% of the total sale price in closing costs. Of that, 5–6% is realtor commission. The rest is a collection of various other costs.
If you decide to pay part of your buyer’s closing costs, you may end up paying a bit more. They can range anywhere from 2–5% of the sale price.
A real estate agent has an in-depth knowledge of the area and how your home compares to others on the market.
They’ll have a good idea of how much you can get for your home and ways you can improve its value.
When it’s time to list, they’ll make sure your home’s priced just right, helping to maximize your offers and sell your home faster. They’ll also take care of all the paperwork, market your home, and coordinate open houses.
In 2019, it took buyers an average of five months to choose a home and make an offer. The buying process itself, which begins when an offer is accepted, takes about 2 months to finalize.
However, several factors can affect the buying process, including the property’s location, buyer demand, economic trends, and other variables.
Yes! You just need a good understanding of the current market and the seller’s needs and motivations.
When the real estate market is a seller’s marker for instance, homes are in high demand and will likely receive multiple offers. Lowballing an offer in this case might cause you to lose your chance at your dream home.
Questions about renting
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.
If you keep the house in good condition and don’t inflict any damages on the property, then you will get your security deposit back at the end of your lease. To ensure that there are no misunderstandings between you and the landlord, be sure to take inventory of any wear-and-tear you see when you move in, preferably via photo. This way no pre-existing damages can be mistakenly blamed on you and you can get your security deposit returned fair and square. Generally, landlords are required to return the security deposit 30 days after the lease ends.
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.
Making simple aesthetic changes, like swapping furniture, is not a problem (unless you rented a furnished unit). But if you want to make changes to the apartment itself — like painting or mounting some shelves on the wall — you will need to check the terms of your lease. Many landlords have a clause in the lease requiring written permission, so even if you receive verbal permission from your landlord, be sure to cover your butt and get a written document specifically telling you what you can and cannot do.
Foregoing landlord permission can leave you with a financial mess at the end of the lease term if you aren’t able to reverse all of the changes. It’s much easier to be straightforward with your landlord and simply ask what kind of changes you’re allowed to make.
Always be sure to communicate with your landlord. Telling them that your rent is coming late might be a bit embarrassing, but it’s much better than sending a check that will bounce or just not paying the rent at all. Keep in mind that if you don’t pay rent on time continuously, the landlord has the right to issue an eviction notice.