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FAQ (Frequently Asked Questions
| Arthur Real Estate Services, LLC 423-314-7954 |
1) I've heard people say that many real estate agents always try to get a buyer to see a loan
officer first. Why is that?
Answer: Unless you are intending to purchase a property with cash, it is very important to see what
you can qualify to buy. Many people are delightfully surprised that they qualify for a higher loan
amount than what they thought originally . Therefore, they can shop for a higher price home if they
elect. In this way, they have more options as to location, style, and amenities. On the other hand, a
prospective buyer may not qualify for as high of a loan amount as what they originally thought. Even
though this can be disappointing, at least they have an idea of what type of home they need to search
for. Also, if a buyer makes an offer to purchase, lenders will usually supply them with a
pre-qualification letter to present the seller with the offer. This often communicates to the seller that
this buyer can indeed purchase the property.
officer first. Why is that?
Answer: Unless you are intending to purchase a property with cash, it is very important to see what
you can qualify to buy. Many people are delightfully surprised that they qualify for a higher loan
amount than what they thought originally . Therefore, they can shop for a higher price home if they
elect. In this way, they have more options as to location, style, and amenities. On the other hand, a
prospective buyer may not qualify for as high of a loan amount as what they originally thought. Even
though this can be disappointing, at least they have an idea of what type of home they need to search
for. Also, if a buyer makes an offer to purchase, lenders will usually supply them with a
pre-qualification letter to present the seller with the offer. This often communicates to the seller that
this buyer can indeed purchase the property.
2) How do real estate agents get paid?
Answer: Even though this can vary with the agreement that a real estate agent has with his/her
broker, typically an agent only gets paid when he/she sells a property (The property has to close).
After the closing, the check is made out to the real estate brokerage firm, and many agents
traditionally receive a portion of that amount, while the rest goes to the real estate firm. The portion
the real estate firm receives typically goes towards paying for various items such as signs,
administrative staff, leases, and etc. Much of the income generated by an agent goes towards
license fees, local board/mls fees, education, and advertising cost. Some agents work with
companies that give an agent a higher percentage than traditional (Sometimes 100% of the
commission). However in addition to the traditional cost, there is usually an office rent that is charged
to that agent on a monthly basis.
Answer: Even though this can vary with the agreement that a real estate agent has with his/her
broker, typically an agent only gets paid when he/she sells a property (The property has to close).
After the closing, the check is made out to the real estate brokerage firm, and many agents
traditionally receive a portion of that amount, while the rest goes to the real estate firm. The portion
the real estate firm receives typically goes towards paying for various items such as signs,
administrative staff, leases, and etc. Much of the income generated by an agent goes towards
license fees, local board/mls fees, education, and advertising cost. Some agents work with
companies that give an agent a higher percentage than traditional (Sometimes 100% of the
commission). However in addition to the traditional cost, there is usually an office rent that is charged
to that agent on a monthly basis.
3) Why should I only use one real estate agent to view houses?
Answer: It is always a good idea to explore your options in an agent before you begin your home
search. However, it is also a good idea to find an agent that you feel you can develop a good rapport
with. Most agents belong to a MLS (Multiple Listing Service) that allows various brokerages to share
the listings that they acquire. In this way, agents that belong to such a service have the same pool of
listings as the companies that shared them. By using one agent, he/she can get to know your
needs, provide you with several options based on your search criteria, and update you as to when
new listings come on the market (In most cases well before they reach the buyer magazines).
Typically, swapping agents multiple times does not provide you with any more homes to choose
from.
Answer: It is always a good idea to explore your options in an agent before you begin your home
search. However, it is also a good idea to find an agent that you feel you can develop a good rapport
with. Most agents belong to a MLS (Multiple Listing Service) that allows various brokerages to share
the listings that they acquire. In this way, agents that belong to such a service have the same pool of
listings as the companies that shared them. By using one agent, he/she can get to know your
needs, provide you with several options based on your search criteria, and update you as to when
new listings come on the market (In most cases well before they reach the buyer magazines).
Typically, swapping agents multiple times does not provide you with any more homes to choose
from.
4) What is the difference between a down payment and closing cost? I always thought they
were the same thing.
Answer: Many people do (Especially first time buyers). However, there is a difference. The cost and
the amount down differ between lenders and the types of loans offered. The cost can get quite
complicated and intensive to explain, as well as encompass things such as Private Mortgage
Insurance (PMI). However, here is a scaled down answer: Many loans available to buyers have
down payments that are required (Not all, but many). For example, many lenders require at least
5% down on a conventional loan. In addition to this payment, there are cost associated with the
loan such as appraisals, surveys, and tax escrows. These are known as closing cost, and are paid
in addition to a down payment on most loans (Regardless of type).
Sometimes, buyers negotiate for a seller to pay these closing cost or a portion of them (Different
loans can limit the amount allowable for a seller to pay). However, this can be less attractive to a
seller because it is coming off of their bottom line (What is left after they pay there portion of the
closing, tax pro rations, as well as their mortgage off {Required with most mortgages upon the sale
of a home}). Closing cost paid by the seller can also result in a higher price for the home
(Sometimes even going above the list price). In regards with loans, a good rule of thumb to
remember this: The less money you have down when you obtain a loan, typically the result will be a
higher interest rate.
were the same thing.
Answer: Many people do (Especially first time buyers). However, there is a difference. The cost and
the amount down differ between lenders and the types of loans offered. The cost can get quite
complicated and intensive to explain, as well as encompass things such as Private Mortgage
Insurance (PMI). However, here is a scaled down answer: Many loans available to buyers have
down payments that are required (Not all, but many). For example, many lenders require at least
5% down on a conventional loan. In addition to this payment, there are cost associated with the
loan such as appraisals, surveys, and tax escrows. These are known as closing cost, and are paid
in addition to a down payment on most loans (Regardless of type).
Sometimes, buyers negotiate for a seller to pay these closing cost or a portion of them (Different
loans can limit the amount allowable for a seller to pay). However, this can be less attractive to a
seller because it is coming off of their bottom line (What is left after they pay there portion of the
closing, tax pro rations, as well as their mortgage off {Required with most mortgages upon the sale
of a home}). Closing cost paid by the seller can also result in a higher price for the home
(Sometimes even going above the list price). In regards with loans, a good rule of thumb to
remember this: The less money you have down when you obtain a loan, typically the result will be a
higher interest rate.
5) Is renting throwing money away?
Answer: It all depends on a person's financial situation, and the way they look at things. Many
people may only be able to afford a home in a low price range. These homes can often have many
repair issues which can be very costly to correct. The buyer may not be able to afford both the home
and the repair issues any time soon. Renting can often include services such as provided lawn
care, repairs (e.g., If a water heater quits working; The landlord/apartment manager may repair at
their cost), and etc. In cases such as these, a person can plan and save for a home while enjoying
a higher living standard than they would be able to afford with a purchase. However, renting often
does not provide the feeling of accomplishment of owning, potential equity growth (Difference
between what is owed and what the home is currently valued - This typically increases over the
years, leaving the owner(s) with a good investment ), as well as in most cases (Fixed interest rates)
providing a fixed monthly payment (i.e., Rent usually increases over the years).
Answer: It all depends on a person's financial situation, and the way they look at things. Many
people may only be able to afford a home in a low price range. These homes can often have many
repair issues which can be very costly to correct. The buyer may not be able to afford both the home
and the repair issues any time soon. Renting can often include services such as provided lawn
care, repairs (e.g., If a water heater quits working; The landlord/apartment manager may repair at
their cost), and etc. In cases such as these, a person can plan and save for a home while enjoying
a higher living standard than they would be able to afford with a purchase. However, renting often
does not provide the feeling of accomplishment of owning, potential equity growth (Difference
between what is owed and what the home is currently valued - This typically increases over the
years, leaving the owner(s) with a good investment ), as well as in most cases (Fixed interest rates)
providing a fixed monthly payment (i.e., Rent usually increases over the years).
6) Can you recommend a good loan company, home inspector, and etc.
Answer: In seeking one of these services, it advisable that you look at the various options available
to you in your locale. Typically, directories have numerous options available to a buyer/seller. What
best suits our needs may not be best for your needs. I've seen several people be disappointed by a
reference to use a person or company. For this reason, our company abstains from making such
recommendations.
Answer: In seeking one of these services, it advisable that you look at the various options available
to you in your locale. Typically, directories have numerous options available to a buyer/seller. What
best suits our needs may not be best for your needs. I've seen several people be disappointed by a
reference to use a person or company. For this reason, our company abstains from making such
recommendations.
*The answers provided are not intended to or advised as a substitute for legal
counsel, investment advisors, or tax professionals.
counsel, investment advisors, or tax professionals.
7) In your opinion what usually ends up causing a house to sell?
Answer: Price, location, and condition. Sounds like a line, but it's usually the case. Even though
many think and often refer to real estate agents as salespersons, I've always considered them
marketers. A good listing agent/company has the ability to market a home because of experience
and tools available to him/her. If the location is not suitable for a prospective buyer, if the price is
considered to be too high, or if the home's condition is not reflected by the price then it will have
trouble selling. Sometimes it may not sell at all (Called an expired listing). If these are right in the
opinion of the buyer, the home will sell. So in a sense, the home does sell itself. If these are not
right, most agents cannot and will not try to change the buyer's mind. Overpriced homes usually sell
other homes. Many times once a buyer has seen the overpriced home, other fair price homes in a
similar location seem to appear as being a bargain.
Answer: Price, location, and condition. Sounds like a line, but it's usually the case. Even though
many think and often refer to real estate agents as salespersons, I've always considered them
marketers. A good listing agent/company has the ability to market a home because of experience
and tools available to him/her. If the location is not suitable for a prospective buyer, if the price is
considered to be too high, or if the home's condition is not reflected by the price then it will have
trouble selling. Sometimes it may not sell at all (Called an expired listing). If these are right in the
opinion of the buyer, the home will sell. So in a sense, the home does sell itself. If these are not
right, most agents cannot and will not try to change the buyer's mind. Overpriced homes usually sell
other homes. Many times once a buyer has seen the overpriced home, other fair price homes in a
similar location seem to appear as being a bargain.
8) I was thinking of putting my home on the market for a higher price than what was
recommended by a real estate agent. I can always come down later, and who knows I might
just get it.
Answer: It's true you might just get the higher price. However, odds are you won't. Real estate
agents usually perform a CMA (Comparative Marketing Analysis) for a prospective client. A
thorough one will provide trends and price ranges that buyers and sellers have agreed upon with
homes similar to yours in the area you live. While they are not appraisals, they can be good
indicators as to what a seller can expect from his/her market, as well as providing an insight as to
what the average time it takes to sell. Often times sellers make the mistake of pricing a home
higher than what the market indicates, and this can result in a slow sell as well as receiving a lower
than average sales price for the home. Why? Normally prospective buyers will have their agent
inform them of new properties when they appear on the MLS (Multiple Listing Service). These
buyers have often seen a variety of homes, and have an idea of what they can expect from a home in
the price range. When they see one that is priced higher than average, they usually do not see the
value of the higher than normal priced one. They will also at times use this home to compare it with
other ones they have seen, and see them as better values (Often justifying the sell of another
home). A home typically will see more attention the first 30 or so days it is on the market. After that,
many of the buyers for a home in that area/price range have seen it. They have already developed a
negative opinion of your home, and even with a reduction, such a buyer may not see it as a fair deal.
Homes will generally receive a higher sales price to list price ratio (A ratio that shows what is offered
for a home and what is the asking price is; Ideally 100% {i.e., Full List Price}) when they are sold in
average marketing time.
recommended by a real estate agent. I can always come down later, and who knows I might
just get it.
Answer: It's true you might just get the higher price. However, odds are you won't. Real estate
agents usually perform a CMA (Comparative Marketing Analysis) for a prospective client. A
thorough one will provide trends and price ranges that buyers and sellers have agreed upon with
homes similar to yours in the area you live. While they are not appraisals, they can be good
indicators as to what a seller can expect from his/her market, as well as providing an insight as to
what the average time it takes to sell. Often times sellers make the mistake of pricing a home
higher than what the market indicates, and this can result in a slow sell as well as receiving a lower
than average sales price for the home. Why? Normally prospective buyers will have their agent
inform them of new properties when they appear on the MLS (Multiple Listing Service). These
buyers have often seen a variety of homes, and have an idea of what they can expect from a home in
the price range. When they see one that is priced higher than average, they usually do not see the
value of the higher than normal priced one. They will also at times use this home to compare it with
other ones they have seen, and see them as better values (Often justifying the sell of another
home). A home typically will see more attention the first 30 or so days it is on the market. After that,
many of the buyers for a home in that area/price range have seen it. They have already developed a
negative opinion of your home, and even with a reduction, such a buyer may not see it as a fair deal.
Homes will generally receive a higher sales price to list price ratio (A ratio that shows what is offered
for a home and what is the asking price is; Ideally 100% {i.e., Full List Price}) when they are sold in
average marketing time.
9) I'm going to save the commission and sale my home "For Sale By Owner."
Answer: This is a common, and there is no harm in trying. Who knows, you might sell your home.
However, you may have trouble. That's where real estate agents/companies help. We provide the
experience, tools, and availability (We're there when many times you can't be) that most owners do
not have. In addition, many of the same people marketing their own homes will call upon an agent
to look for a home (Even when they are trying to sell their own home). For this same reason, this is
why real estate agents have a better success rate in selling homes than owners do. Buyers
usually will contact a real estate company because they have a pool of properties available to them.
Buyers usually like to see more than one home, and real estate companies provide selection. In
addition to this, many For Sale By Owner properties have contacted a real estate agent to perform a
CMA (Comparative Marketing Analysis). When deciding to market the home themselves, they use
the price from the CMA which is based on homes with commissions in the price. A prospective
buyer may fail to see the value of such a home, since the home is priced as high as the ones on
the market with real estate companies. Also, many times if an offer is made, the negotiations will
break down due to direct bargaining between a prospective buyer and owner. Real estate
companies have success in this aspect because the buyer and sellers usually do not negotiate
with each other directly, but through their agents.
Answer: This is a common, and there is no harm in trying. Who knows, you might sell your home.
However, you may have trouble. That's where real estate agents/companies help. We provide the
experience, tools, and availability (We're there when many times you can't be) that most owners do
not have. In addition, many of the same people marketing their own homes will call upon an agent
to look for a home (Even when they are trying to sell their own home). For this same reason, this is
why real estate agents have a better success rate in selling homes than owners do. Buyers
usually will contact a real estate company because they have a pool of properties available to them.
Buyers usually like to see more than one home, and real estate companies provide selection. In
addition to this, many For Sale By Owner properties have contacted a real estate agent to perform a
CMA (Comparative Marketing Analysis). When deciding to market the home themselves, they use
the price from the CMA which is based on homes with commissions in the price. A prospective
buyer may fail to see the value of such a home, since the home is priced as high as the ones on
the market with real estate companies. Also, many times if an offer is made, the negotiations will
break down due to direct bargaining between a prospective buyer and owner. Real estate
companies have success in this aspect because the buyer and sellers usually do not negotiate
with each other directly, but through their agents.
12) How many licks does it take to get to the center of a Tootsie Roll Pop?
Answer: This is very difficult to answer, and is very perplexing. My best guess is it would differ
greatly between people because of the amounts and levels of saliva acidity. I suppose it would
also make a difference if a person was more inclined to lick this treat while holding it in their hand
versus a person that held it within their mouth until it is gone. The constant warm environment
provided by the latter user would most likely cause the disintegration of this product at a quicker
rate. However, can this action truly be considered licking? For this reason, any answer I could
provide would only be speculative, and I concur with the old commercial by saying "truly the world
may never know."
Answer: This is very difficult to answer, and is very perplexing. My best guess is it would differ
greatly between people because of the amounts and levels of saliva acidity. I suppose it would
also make a difference if a person was more inclined to lick this treat while holding it in their hand
versus a person that held it within their mouth until it is gone. The constant warm environment
provided by the latter user would most likely cause the disintegration of this product at a quicker
rate. However, can this action truly be considered licking? For this reason, any answer I could
provide would only be speculative, and I concur with the old commercial by saying "truly the world
may never know."
11) Who are the people in the various pics?
Answer: Rene (Shannon's wife) is seen in a few pics, while Shannon's Dad is the icon for the FAQ
section. Occasionally you may see events we've attended, vacation photos, family and friends, or
just something unusual we spotted. Please check back with us periodically, as are intention are
updating various sections of the website. You'll never know who you may see in the "Fun and Pics"
section.
Answer: Rene (Shannon's wife) is seen in a few pics, while Shannon's Dad is the icon for the FAQ
section. Occasionally you may see events we've attended, vacation photos, family and friends, or
just something unusual we spotted. Please check back with us periodically, as are intention are
updating various sections of the website. You'll never know who you may see in the "Fun and Pics"
section.
10) I've never seen a real estate website quiet like this one (Humorous). Are you serious about
your business?
Answer: Absolutely. Though the business is taken very seriously, I try to have fun with whatever I
do. The aim of this website was to be both fun and informative, and for that reason I tried to avoid
the traditional corporate style of web design. By making things informative and entertaining, I then
get to say "Made you look."
your business?
Answer: Absolutely. Though the business is taken very seriously, I try to have fun with whatever I
do. The aim of this website was to be both fun and informative, and for that reason I tried to avoid
the traditional corporate style of web design. By making things informative and entertaining, I then
get to say "Made you look."
We'll shoot straight with
you
you
