Category: Home Buying
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Five common neighborhood characteristics
Reader Question: We are looking for a home. We are seeking information about the term “neighborhood” as we have heard several different descriptions. What is a neighborhood? Monty’s Answer: The word neighborhood is a word that means different things to different people. To some degree, opinions about what constitutes a neighborhood are related to a…
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Four advantages of a pre-offer inspection
Reader Question: We are looking at a 60-year-old home. It seems to have good bones, but I see several red flags. Is there any advantage to having a pre-offer inspection completed before we make an offer? Jerry and Judi T. Monty’s Answer: A home inspection is a necessary component in the purchase of any home.…
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Six essential qualities of a real estate agent
Reader Question: We will be looking for our first home in the next year. We are novices and want to know the essential qualities of a real estate agent to look for and also how to identify agents with these qualities. Can you help us? Monty’s Answer: When seeking real estate agents, experts agree…
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Six essential prescriptions for a healthy real estate transaction
Reader Question: We are first-time homebuyers. We are excited about buying a home. In gathering information about what we should (and should not) do, contradictory information abounds from people we know, what we read, and real estate agents. This discovery is causing us concern. We don’t want to make any mistakes. We want a healthy…
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Five important home condition disclosure points
Reader Question: I am concerned some important issues may be missed in inspections. In one condo development, for example, the ground in the heavy clay soil was not graded properly, and the internal construction had some major flaws. The selling agent at the condo explicitly stated he did not want to know about the issues.…
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What makes a condo warrantable vs. non-warrantable?
Reader Question: I am trying to learn what makes a condo warrantable vs. non-warrantable. Can you help me? Jonathan D. Monty’s Answer: The answer is that condominium, co-op and planned unit development (PUD) projects with particular attributes can be riskier than other types of development projects. The United States Department of Housing and Urban…
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Appraisers evaluate appraisal management companies
Reader Question: Your recent article about why consumers cannot pick their appraiser was excellent, but only reviewed the process from the lender point of view. Residential appraisers hold a more educated viewpoint on appraisal management companies (AMC’s) than the lender as we do the work. My question is why didn’t you interview real estate appraisers?…
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Why can’t I pick my home appraiser?
Reader Question: A lender is telling me I cannot pick my home appraiser I know to be a solid appraiser, and that the lending rules have changed. We have not purchased a home for fifteen years. Is this true? And if it is true, why did the rules change? Jerry G. Monty’s Answer: The simple answer…
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Seven tips for buying in overheated market
Reader Question: We live in an overheated market. Home sellers are receiving multiple offers very quickly after listing and sell for more than the list price. We want to buy a home here, but we are reluctant to jump in and end up overpaying. What, if anything, can we do to avoid this situation? John…
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Ten facts mortgage shoppers should know
Reader Question: How can I compare the cost of financing from different lenders? Monty’s Answer: Comparing the cost of mortgage loans is a challenge for most mortgage shoppers. Even when you think you have the answer, new information appears, and you are back to square one. Here are ten facts to help you lock-in the…
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Bully real estate agent and RESPA
Reader Question: My offer was accepted, and I was thrilled. Before making the offer, my agent had instructed me to obtain a pre-approval letter and recommended I use a particular loan officer. I went ahead and did so after confirming with the loan officer that doing so wouldn’t lock me into using his services. I…
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Low appraisal not disclosed to homebuyer
Reader Question: I had a low appraisal. I recently closed on a home for $180,000. I just learned the appraiser along with the agent and lender adjusted the appraisal from $176,000 to $179,000. They never informed me of the original price. Had I been informed, I could have negotiated for the $4,000. What can I do…
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Can an agent legally work for both parties and earn both commissions?
Reader Question: Is it legal for a real estate agent to work with the seller and the buyer and if it is, then get both commissions? Jonie P. Monty’s Answer: It is legal for a real estate agent to work with both a buyer and a seller. Real estate law in every state says that…
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Eight tips for rent-to-own homebuyers
Reader Question: My mother-in-law would like to do a rent-to-own agreement on a house she currently owns with my husband and me. The house is free and clear, and she wants to help us out. We would like to buy the house in about two years. What are both parties’ legal obligations in a…
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Five tips to vet a shared driveway
Reader Question: We are interested in a home that has a shared driveway. I cannot think of any pro, except maybe the shared cost to maintain. What are the cons to worry about with a shared driveway? Thanks! Chris Z. Monty’s Answer: Shared driveways are fairly common. Most often, there are written rules that…