Questions about buying a home? Ask your Realtor

How is the real estate market right now? Rosendale noted that market conditions can differ between the Eastern Shore and western shore, even between one street to another. Working with a local Realtor who knows the area is important. One indicator of market conditions is how quickly homes are selling. Even with higher interest rates, there is still a shortage of available homes. For the Mid-Shore region, the days on market are less than two months.

Some important examples to consider when talking about the strength of the market is number of closed transactions year-over-year for a given season, average sale prices, and average list price to sale price ratios for homes in the area you are considering. You may see a home get asking price or above, but did the sellers kick back closing costs to the buyer? Did you see your neighbor’s house get listed at a crazy number and 60 days later accept a much lower offer?

Things may not always seem how they look, it’s important to have your Realtor know the area they are working and help you navigate the real statistics of a community.

How do you determine how much my home is worth? The most common way to determine the value of a home is with a comparative market analysis, or CMA. A CMA is an in-depth evaluation of sold “comparable” homes in your local area from the past 6-12 months. Rosendale has seen that many Eastern Shore properties have unique features making it harder to find duplicates for comparison. She said this process is not a crystal ball but does get the price in the ballpark.

CMA’s compare many aspects like location, the square footage, the number of bedrooms and bathrooms, any upgrades, age of the roof, the lot features, style of the residence, flooring type, and if the property has a pool or a dock. Something to keep in mind, replacements of items like a septic, roof, or any “regular functioning utility” for a house may increase the activity around your house or “salability” but not always in value. If you have a roof that needs to be replaced and it costs $30,000, it’s a great feature to market a new roof, but it doesn’t mean you can raise the price of your listing by $30,000.

What is the commission? When discussing compensation with your Realtor, it helps to understand that Realtors are 100% commission based and do not get paid until settlement. Most if not all services they provide to you are out of pocket, including professional pictures, drone shots, staging, and those vendors get paid whether the deal closes or not.

Learn upfront what your Realtor will do for you before you decide to accept a discount brokerage; there is an old saying “you get what you pay for.” Confirm your Realtor will market your property not just put it in the Multiple List Service. Be clear on how the Realtor will negotiate on your behalf, provide you with tips to get the home ready to sell and what to look for when buying.

Rosendale said that in today’s market having a knowledgeable, local, Realtor is essential.

How does the inspection phase work? Inspections are a common contingency that buyers make their purchase offers subject to. There are many distinct types of inspections and tests that a buyer has the right to perform, typically, at the expense of the buyer. Buyers have a specified number of days to complete the inspections and either remove the inspection contingencies or request the seller address some or all of the problems found from the inspections.

Eastern Shore inspections can include, not only the home, but also the septic system, well, pool, dock and boat lifts. Do not forget, there are certain earmarked items that may not be of importance to you to be fixed but may be of importance to an appraiser in the next step of your purchase. Make sure to consult with your Realtor if there is anything on the checklist that may get flagged during that process.

“These are a few of the questions I have been frequently asked,” Rosendale said. “Like the saying goes, there are no dumb questions, especially when it comes to the home buying and selling experience. The home buying and selling process is not something most of us do often; make sure all your questions are answered by your Realtor, it is what we’re here for!”

The Mid-Shore Board of Realtors has over 600 Realtors and Affiliates. The mission of the Mid-Shore Board of Realtors is to advocate for its members and the public to preserve the right to own, transfer and utilize real property. See www.midshoreboarofrealtors.com for more resources and information.