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Home > Buyers
> FAQS
FAQS
A Citylife sales agent can show you every property on the market. You can expect our agents to know about all the properties, make the showing appointments for you, and help you find the perfect home every step of the way. Below are some questions we often here from buyers.
How do I get started?
What is a Buyer Agency?
What is the difference between being pre-qualified and pre-approved?
What is the difference between the sales price and the assessed value?
Can I make a verbal offer on a property?
How much money will I need when I make the offer?
What is a Purchase and Sale Agreement?
What happens at the closing?
How do I get started?
Once you’ve started thinking about all the things you would like in your new home, you’ve already started the buying process. You’ll want to get pre-approved with a lender to know exactly how much you can afford before you begin looking seriously. Your Citylife agent can then discuss all of your options with you in your price range. Click here to learn about entire buying process (hyperlink to home buying 101 section)
What is a Buyer Agency?
In the past few years, Buyer’s Agents have become increasingly popular. In this type of relationship, the real estate agent represents the buyer throughout the real estate transaction. You should expect the following things from a Buyer's Agent:
- The agent should promote your best interests and provide you with all available facts that could influence your decision about making an offer for a home.
- Agent will offer research materials that help you make a realistic offer.
- Agent's duty is to get the best possible price and terms for the buyers.
- Agent must disclose all material facts about property (bad roof, plumbing problems, etc.)
- Agent should disclose personal facts that indicate sellers will accept a reduced price (such as impending divorce, foreclosure, etc.)
- Agent should give you the "what if" scenarios about the clauses in a contract. The agent may recommend additional contract contingencies to protect your interests.
- Agent should track and handle many of the day-to-day needs required to get to closing (such as inspections, helping you find a lender, tracking the progress of the loan, working with the closing attorney or agent).
What is the difference between being pre-qualified and pre-approved?
A pre-qualification is an estimate of how much house you can afford. This estimate is based on the information a buyer provides to the lender, such as income and estimated expenses. Pre-qualification is not a guarantee that you will be able to obtain that level of financing, it is solely an estimation of what you could afford. You will receive a pre-qualification letter from the lender with your pre-qualification amount. Although not as strong as a pre-approval, pre-qualification is very quick, and does give buyers a good guideline to begin looking for their new home.
A pre-approval means your income, assets and credit have been reviewed by a lender, and your mortgage is already approved. You will receive a pre-approval letter from the lender with your pre-approved financing details. Being pre-approved gives you an advantage when making an offer on a property, and in many cases, the seller will require a pre-approval letter before accepting an offer.
What is the difference between the sales price and the assessed value?
The selling price of a home is the value placed on it based upon other home sales in the area, condition of the property, location and other factors.
The assessed value of a home is an estimation used by the city to determine your property taxes. Assessed value has no bearing on the market value or sales price of a property.
Can I make a verbal offer on a property?
Verbal offers are not accepted in Massachusetts. All offers must be made in writing. Your real estate agent can prepare and submit your written offer for you.
How much money will I need when I make the offer?
At the time of the offer, you will need to submit an earnest money deposit to show your offer is being made in good faith. This deposit is typically $1000. At the time of the Purchase and Sale, which is usually signed 10 days after the offer is accepted, you will need to put approximately 5% of the purchase price in an escrow account. The remaining money will be paid at the closing.
What is a Purchase and Sale Agreement?
Usually signed about 10 days after the offer is accepted, the Purchase & Sale Agreement (commonly referred to as P&S) expands the Offer to Purchase in detail. Typically, you will work with a lawyer to finalize the details in the P&S, such as mortgage contingency, condition of the property, deadlines for loan commitment and closing date, and any other agreements between the buyer and the seller.
What happens at the closing?
Your closing will occur typically 30-90 days after your offer was accepted. During this time, you will have your home inspection done, worked with your attorney and your mortgage broker or bank to finalize your financing and get all the paperwork done that’s necessary to take possession of your new home. On the day of the closing, you will take final walk-through of the property to ensure it meets the conditions set in the P&S. At the closing you will sign all the closing and title papers, and then the deed will be recorded, which finalizes the sale.
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