Q:  What does REO mean?

A: REO is an acronym for "Real Estate Owned."

Q:  Why should I buy a home, instead of renting?

A: Number 1, you will have a sense of personal satisfaction owning
your own home. You will be able to create your own private space
that is unique to you. When you own, you can do it all your way!
Another benefit of owing is that you can deduct the cost of your
mortgage loan interest from your federal income taxes. In the
beginning, interest will compose nearly all of your monthly
payment, for over half the number of years you will be paying
your mortgage. This can add up to BIG savings at the end of each
year. You are also allowed to deduct the property taxes you pay
as a homeowner. Another financial plus in owning a home is the
possibility of the home increasing in value over time. If you rent,
you write your monthly check and it is gone forever. At the end
of your lease, you have nothing and face the possibility of increasing
rental rates.

Q:  I want to sell. What should I do?

A: First thing to do: Create the best curb appeal possible. You want buyers to walk inside your home. A homebuyer's first impression is based upon their view of the house from their car. Take a walk across the street and take a good look at your house. Look at nearby houses, too, and see how yours compares.
The most cost effective methods are to clean up any unnecessary clutter, plant colorful flowers, manicure the lawn and trees. Get a new plush door mat, too. Painting will always bring more buyers inside. Removing and replacing old or unkempt window coverings will help. If you have an area for flowers, buy mature colorful flowers and plant them.
On the inside try to remove clutter and keep pathways clear. When people enter keep windows open to let as much light in as possible. Often people store extra things in the garage to clear their home.
Remember, that many buyers have a difficult time imagining what a house will look like after they've moved in. So the more desirable look you provide, the better the offers. Also, keep your property safe from obstacles and hazards (cords, holes, slippery surfaces, etc.)
Prior to listing your property please gather and provide your agent any and all paperwork pertaining to the home (construction paperwork, permits, inspections, notices, etc.).

Q:  Who decides what insurance to get: the mortgage company or me?

A: You do. The mortgage company collects a set amount from you each month in order to protect their investment. This money is put in escrow and covers your insurance and taxes when they fall due. However, the policy is still yours and you may select the insurance you feel offers the best coverage at the best rates. In fact, if you allow the mortgage company to choose, you might well end up paying more for your homeowners insurance.

Q:  What is a mortgage?

A: Generally speaking, a mortgage is a loan obtained to purchase real estate. The "mortgage" itself is a lien (a legal claim) on the home or property that secures the promise to pay the debt. All mortgages have two features in common: principal and interest.

Q:  Why would one purchase REO properties?

A: Banks most often list their properties "as is." This makes them a great opportunity for individuals to buy and fix up, either as their principle residence or as investment property. Sometimes our clients sell the property in move-in condition. These properties are marketed the same as any residential sale.

Q:  Why should I use a Realtor?

A: Using a realtor is always very good idea. We can assist you with the details involved in home buying, particularly the financial ones. We can guide you through the entire home buying process and make the experience much easier and convenient for you.

Q:  How much is my property worth?

A: Your agent will provide you with recent sales and listings in your area and will give you a price range of what your property should sell for. By pricing your home too high you will discourage buyers from even looking, and the property may not even come to their attention. Believe it or not, overpriced properties tend to take an unusually long time to sell, and they usually end up being sold at a lower price. By pricing it too low you will likely get many offers immediately and a few all-cash offers. This can be corrected by waiting a week to counter or accept and offer.

Q:  What exactly does a homeowners policy cover?

A: "Exact" coverage is tricky to define because there are different policies and about 1000 insurance companies writing most of the property/casualty business in the United States. However, 80% percent of homeowners policies are based on a standard form. All homeowners policies cover two important areas: property and liability.

These cover your structures and possessions - property insurance - and protect against personal liability. Personal liability, as its name implies, means you are legally obligated to pay money to another person for actions caused by you, your family, or your property. That liability extends to medical payments to others for injuries caused by you or your family.

Q:  Can you apply for a loan before you've found a property?

A: 

Q:  How is purchasing REO properties different than "regular" real estate purchases?

A: REO properties are owned by corporations rather than individuals. This leads to significant differences in all aspects of the purchase.

Q:  What is the first step in the home-buying process?

A: A good first step is to obtain counseling from a REALTOR® or lender. Most real estate agents and lenders recommend that homebuyers get pre-qualified with a lender before selecting a home to purchase. With pre-qualification, you can determine which loan program best fits your need and which programs you qualify for. You will know exactly how much you are qualified for and your monthly payment will be set. This will allow you to budget your money before making this large investment. It shows you what the down payment and closing costs will be. If you are a first-time buyer, you may be able to qualify for a special first-time buyer program, which may allow you to afford more home for your money.

Q:  What kind of repairs are recommended and add value?

A: Kitchens and bathrooms greatly help to sell a house because they are the most expensive and most important rooms of a home for the typical buyer. Any monies spent on these 2 items almost always yield much more in increased value, more than any other repair. Even minor upgrades will increase the value of your home, as long as they are done professionally and in good taste.
Termite issues. All homes in Los Angeles County have termite issues. The buyer of your home will likely have a lender that requires a termite report and clearance. Termite clearance means the structure is clear of infestations and usually is guaranteed for 1 year. Before listing your home have it inspected and have all repairs done. Having termite clearance will increase value and limit the buyer's negotiating options. If you are in a city that requires a City Inspection (Pasadena, San Marino, etc.) get it done now and correct any violations. Again, if you have clearance you will increase the value and limit the buyer's negotiating options.

Q:  Are floods, earthquakes, and other natural disasters covered?

A: Most catastrophes are covered; flood and earthquake damage, however, are not covered by a standard policy and both are more common than many people realize.. Check with your agent about special catastrophic policies for normally excluded conditions like floods and earthquakes.

Q:  What types of loans are available?

A: Fixed Rate Mortgages: Payments remain the same for the life of the loan

Types:

• 15-year
• 30-year

Types:

• Balloon Mortgage: Offers very low rates for an initial period of time (usually 5, 7, or 10 years); when time has elapsed, the balance is due or refinanced (though not automatically)
• Two-Step Mortgage: Interest rate adjusts only once and remains the same for the life of the loan
• ARMS linked to a specific index or margin

Q:  What does it mean for the seller to "hold a second"?

A: Sometimes when a buyer does not have all the funds available needed for the purchase of a property, the seller will assist the buyer by crediting the buyer at the time of the sale for the amount needed and the buyer will sign a note promising to repay the seller. As with any note, terms between buyer and seller are negotiable; however, most often the buyer agrees to make monthly payments thus has two house payments due each month. The first note recorded when property is sold is the principle mortgage. The note between the buyer and seller is recorded second...and is commonly referred to as the "The Second ."

Q:  How much money will I have to come up with to buy a home?

A: The amount of money required to purchase a home depends on a number of factors, including the cost of the house and the type of mortgage you get. In general, you need to come up with enough money to cover three costs: earnest money, down payment and closing costs. When you make an offer on a home, your real estate broker will put your earnest money into an escrow account. If the offer is accepted, your earnest money will be applied to the down payment or closing costs. If your offer is not accepted, your money will be returned to you.

Q:  How long will it take for my property to sell?

A: There are three main variables that affect the length of time a property is on the market: the price of the home; the condition of the home; and the current market conditions. The seller can affect the first two of these variables—an appropriately priced home in great condition, with fresh paint and all details in order, will have appeal to many potential buyers and is more likely to sell more quickly—even in a slower market. For more information on what to expect when you’re selling visit the Sellers section of the site or talk with your NestQuest agent.

Q:  How do I see properties that are For Sale?

A: At Nest Quest we require you to first be pre-approved with a reputable lender or in our mortgage department before searching for property. This will help you understand how much you can afford, and also if you write an offer the seller will probably require that your offer be accompanied by a pre-approval letter. Next step is to decide what type of property you need. At NestQuest.com we are committed to helping you find your dream home. We give you a number of options FREE and with no OBLIGATION: we can provide you with current listings for you to drive by with or without an agent, New listings can be emailed to you daily, or you can search the entire MLS service by your self through this website's. When you find an interesting property we can make an appointment to view it.

Q:  What do I need to disclose?

A: By law anything that can materially affect the desirability of a home must be disclosed. Please discuss this at length with your agent. The number one problem in transactions is intentional and unintentional non-disclosure of important items. Think about problems your home has (foundation, electrical, leaks, plumbing, noise, unpermitted work, soil and drainage problems, deed restrictions, etc.). NestQuest.com can help you with this.

Q:  I saw a house for sale with another company. Can you show it to me?

A: Absolutely! We are members of the 2 local Multiple Listing Service (MLS) and we have access to virtually every property for sale in this market. To save you time, hassles and duplicated effort, call us for information on any properties you see, including:

- All homes marketed on our nestquest.com website
- All properties listed by other brokers through the Multiple Listing Service (MLS)
- Properties not necessarily on the open market yet
- Many properties offered "For Sale By Owner"
- Properties that are advertised in news papers, real estate Magazins on the Internet, open houses or any property displaying a "for sale" sign

Some buyers like to work with four or five salespeople with the idea that a "committee" can accomplish more than one person. Often times, because buyer is not committed to one salesperson, no one is spending extra effort on the buyer's behalf.

The best approach is to shop for a sales associate that you feel will get the results you want and then stick with him or her exclusively. In this way you will have a dedicated agent who will take on the personal responsibility of handling all the details of your upcoming home purchase. If you give your loyalty to one person, you will be rewarded with results.

Let Nest Quest be your single source for property information in the Big Horn Basin.

Q:  Should I provide a home warranty?

A: Home warranties are more and more popular, even with homes in excellent condition. The typical warranty is $375 and covers most plumbing, electric, garbage disposal, vent fans, the water heater, etc. The buyer calls the warranty company and they send a licensed contractor to remedy the problem, as long as it is a covered item. It is an excellent selling feature for the seller, it shows good faith, and helps cover the seller from liability.

Q:  What does the term "As-is" mean?

A: The term "as is" means the seller is not going to make any repairs to the property. This, however, does NOT mean that the seller is exempt from disclosing known problems with the property. The seller must disclose all known defects to the buyer. Not disclosing known defects is fraud, a very serious crime. Homes sold "as is" often bring a lower sales price, as the buyer will make price adjustments for known, necessary repairs. It is wise, and recommended, that the buyer have a professional home inspection done on the property.

Q:  How does my property get shown?

A: There are many ways to have buyers view your home. Your agent will coordinate appointments at times that are convenient to you. The easier it is to show your home the greater likelihood that you receive the most and higher offers. Computer coded lock boxes (Supra) can also be used for access so you don't need to be home. Discuss this with your agent because it is vitally important to have the property available, but at the same time to work with your schedule and privacy.

Q:  Tell me about the inspection

A: The contract will almost always allow you to perform inspections of the property (electrical, plumbing, roof, foundation, etc.), all within a specific time periods. Your agent will not perform the inspection for you, many people hire a professional inspector. Regardless of what you do, you must understand that it is your choice. Inspections have time limits and specific ways of being handled. Be sure to discuss this with your Agent.

Q:  What should I do while someone is viewing my home?

A: Buyers don't want to feel pressured. Kindly step outside with any pets and turn off all radios and TV's. Keep the sinks clean, the shower clean, and turn on most of the lights so they don't see dark rooms. Take care of all valuables and breakables and insist that the buyer is accompanied by their real estate agent. Make sure you get the real estate agent's business card. Limit talking about your properties shortcomings; you don't want the buyer to think they can negotiate you down on price.

Q:  Is a termite inspection required?

A: For conventional loans, the investor or lender will require a termite inspection if there are visual signs of infestation. All government loans require a pest inspection on any structure that is ground level or of total wood construction (including condos). It is always wise and highly recommended to have any home inspected for termites regularly.

Q:  Should I answer a buyer's direct questions?

A: You are paying your real estate agent to negotiate, market and communicate for you. Limit your direct conversations with agents and their buyers and ask them to ask your agent the questions. You are under no obligation to talk to anyone if you choose not to. Most buyers and their agents understand that it is usually inappropriate to talk to the seller directly.

Q:  What if my offer is rejected?

A: Your original offer is often rejected for one reason or another. But do
not let that stop you. Now you begin negotiating. I will help you. You
may have to offer more money, but you may ask the seller to cover some
or all of your closing costs or to make repairs that would not normally
be expected. Often, negotiations on a price go back and forth several
times before a deal is made. Just remember, do not get so caught up in
negotiations that you lose sight of what you really want and can
afford! I can help you keep on track.

Q:  What appraisal mean?

A: Appraisals compare your home to other homes in your area that have recently sold. An appraisal is necessary for the lender to justify the loan amount being requested, as required by secondary investors. You should not rely on the appraisal for assurance about the condition of your home.

Q:  what happen at closing?

A: At the closing, you will most likely sit at a table with me, your attorney, the broker for the seller, probably the seller, the seller attorney and a closing agent. The closing agent will have a stack of papers for you and the seller to sign. While your attorney give you a basic explanation of each paper, you may want to take the time to read each one and consult with your attorney to make sure you know exactly what you are signing. After all, this is a large amount of money you are committing to pay for a lot of years! Before you go to closing, your lender is required to give you a booklet explaining the closing costs, a "good faith estimate" of how much cash you'll have to supply at closing, and a list of documents you will need at closing. If you do not get those items, be sure to call your lender BEFORE you go to closing. Don't hesitate to ask questions.

Q:  Where do you go to close on a property?

A: You will go to a local title company or attorney office who will perform the closing. All your mortgage documents will be waiting for you at closing as well as any other documents requiring your signature.

Q:  What are closing costs?

A: Closing costs are the costs associated with processing the paperwork to buy a house. Closing costs which you will pay at settlement average 3-4% of the price of your home. These costs cover various fees your lender charges and other processing expenses. When you apply for your loan, your lender will give you an estimate of the closing costs, so you won't be caught by surprise.

Q:  What is an escrow account?

A: An escrow account is an account that is established by your lender to pay your real estate taxes, homeowner's insurance and mortgage insurance on your behalf.

Q:  What type of insurance do I need to buy a home?

A: Homeowner's insurance is your first priority. In fact, lenders won't let you buy a home without it. It insures your property and its contents against fire, theft and other losses, depending upon coverage.

If you live within a flood zone, the lender requires proof of National Flood Insurance Program coverage. If you're near a fault zone-not atypical in California as well as some Northeast and Midwest regions-you should consider earthquake coverage.

If the down payment on your mortgage is less than 20%, the lender will tack on private mortgage insurance (PMI) coverage, which protects the lender should you default on your mortgage. You must also obtain title insurance to protect the home purchase transaction.

Q:  How much title insurance do you need?

A: The amount of title insurance needed is based on the value of your home and the amount of your mortgage. Title insurance guarantees the lender and/or the owner against the possibility that there may be an unknown lien or discrepancies in ownership on the property they are purchasing. Lenders need to be covered for the full value of the mortgage; this policy is required and will vary from state to state. There is a one-time fee for the policy that is paid at closing.

Q:  Can I bring a personal check to a property closing?

A: No, you will need a cashier's check or certified check for closing. This is to insure that the funds are equivalent to cash.