If you’re shopping for a new home in the ABQ area, you probably have questions. That’s what Albuquerque Realtors® are here for! It’s important to ask questions, so you can stay informed during the search for a home and throughout the eventual buying process. In this article, we’re going to look at seven of the most common questions for Albuquerque Realtors®.
- What is preapproval and do I need it to buy a home in ABQ?
- What Albuquerque real estate market is the best right now?
- When should I put in an offer on a home?
- Should I match the seller’s asking price or go lower? Higher?
- Is it a buyer’s market or a seller’s market? What’s the difference?
- Are Realtor® fees included in closing costs?
- What is the difference between Realtor® and real estate agent?
These are only a handful of questions for Albuquerque Realtors®. Read on to get answers, but make sure you’re also asking any questions you have during the homebuying process. Knowledge is power—especially when it comes to making a major investment like buying a house! Asking your Albuquerque Realtor® the right questions and getting knowledgeable answers will make you a more informed, more confident buyer.
1. What is preapproval and do I need it to buy a home in ABQ?
Preapproval is an important first step before you start prospecting ABQ homes for sale. A letter of preapproval from a lender states that the bank is willing to underwrite a mortgage loan up to a certain amount, enabling you to buy a home. While a letter of preapproval isn’t required, any Albuquerque Realtor® will tell you it’s a must-have document if you’re serious about buying a home.
Preapprovals are important for several reasons. First and most important, they get the ball rolling with a lender. If you find a home you love and get an accepted offer, you already have authorization from a lender to keep the process moving. This is great for sellers, too—they know your offer is less likely to fall through if you’re preapproved by a lender. Above all, preapproval shows you’re a serious buyer.
2. What Albuquerque real estate market is the best right now?
This tops the list of questions for Albuquerque Realtors®. Everyone wants to know where the hot market is—but that depends on what your needs and expectations are. Want to buy an investment property in an up-and-coming neighborhood? Looking for markets with undervalued homes? Trying to settle down in an established neighborhood near ABQ proper?
The hot market is wherever your needs and expectations coincide with homes in your price range. A knowledgeable Realtor® will get to know your needs, wants, price range, expectations and more, so they can steer you to the best real estate market for you.
3. When should I put in an offer on a home?
The easy answer to this question is “when you’re sure you’ve found the right one.” If you walk into a home you love, don’t waste any time in learning all you can about it. Make a list of questions for Albuquerque Realtors® and get the information you need to make an offer with confidence.
If you try to play the market and wait for price reductions, you might lose a great house to someone willing to take the leap. That said, don’t be overeager just because your first impression was a good one. Do research. Ask questions. Be skeptical! Look at a home from all sides and make a confident offer if it’s right for you.
4. Should I match the seller’s asking price or go lower? Higher?
Putting in an offer is exciting and scary and uncertain, all rolled into one. If you’re putting in an offer, it’s likely because you love the home—so naturally, you want your offer to win over the seller. That said, you don’t want to spend more than you need to. It’s a delicate game that your Realtor® can help you play.
If the house has been on the market for a while, you might be able to lowball the seller to start negotiations. Homes fresh on the market may have several interested buyers, and you might offer above asking to seal the deal. If it’s a fair price, you might choose to match it. Think of the asking price as the first step in negotiations. In any case, prepare for some back-and-forth.
5. Is it a buyer’s market or a seller’s market? What’s the difference?
A buyer’s market means there are few buyers and more housing inventory. A buyer’s market forces sellers to be more competitive on price, since there are fewer buyers for more houses. As you might imagine, a buyer’s market is good for buyers—not so much for sellers.
A seller’s market is the opposite: lots of buyers competing for a few houses. More interested buyers means the potential for bidding wars and offers higher than asking price. This is one of the more important questions for Albuquerque Realtors® because it can influence your homebuying decision.
6. Are Realtor® fees included in closing costs?
There are some questions for Albuquerque Realtors® people have trouble asking—this is one of them. It can feel strange to work with a Realtor® for weeks to buy a home, without ever paying them anything! Don’t worry: your agent eventually gets paid. Closing costs include Realtor® fees, and they’re typically paid by the seller. Think of it this way: the seller pays the buyer’s agent for bringing in the buyers. Keep in mind, the buyer’s agent still works on behalf of the buyers, not the sellers.
7. What is the difference between Realtor® and real estate agent?
Believe it or not, there is a difference between a Realtor® and a real estate agent. A Realtor® is an active member of the National Association of Realtors (NAR) who not only maintains their real estate license, but also takes continuing education credits through NAR. Realtors® also abide by a strict ethical code. In simpler terms: Realtors® are the best of the best real estate agents who you can trust to advocate for you.
Have more Questions for Albuquerque Realtors®?
Again, these are a small handful of questions for Albuquerque Realtors®. As a homebuyer, you likely have many, many more. Make sure you’re working with a Realtor® you’re comfortable with, who will give you transparent, informative answers to any and all questions you have. After all, it’s not every day you buy a house in ABQ!
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