Q & A with Dottie Herman

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Q1 - My house has been on the market for 15 months. At first I admit I did price the home too high and finally reduced my price by $100,000 but I still haven't received any offers. Does this mean the price is still too high?

A - In all likelihood the answer is yes.  Talk with your agent and make sure your home is being marketed aggressively.  Find out what action steps your agent has taken and is currently taking to bring attention to your home.  Assuming your agent is doing everything possible, then yes, it is time to lower the price.  If your agent is just sitting on the listing and not working hard on your behalf, you may want to consider a change of agent as well as a price reduction.

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Q2 - My roommate and I are looking to move to NYC after college. We want to start to look for a rental, but we are unsure as to how to begin.

A - Every May thousands of college graduates come to find their first apartment.  Most of them do not have the foresight to start thinking about this 6 months in advance of graduation.  By starting now, you are on the right track.  Landlords will look for renters with jobs and confirmed salary commitments.  If you or your roommate don't have this you will need a co-signer or guarantor such as a parent.  Many times college students arrive from different cities and experience sticker shock when they see rental prices in NYC.  By beginning your search now, you will learn what your dollar will get you.  If you like, we can recommend an agent for you to work with.  We can send you listings as well as information on the requirements of the owner.  If you'd like to search on your own at first, our website has great tools for you to custom-tailor your search.

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Q3 - My husband and I are looking to buy our first home. We have decent credit but don't have a lot of money in our savings account. We keep hearing about FHA loans where we don't need to put a large amount of money down. Is that true? What are the guidelines? The house we are looking to purchase is 440,000.

A - FHA allows borrowers who are qualified to purchase a home with as little as 3.5% down payment. On a $440,000.00 home, as long as your income and credit qualify, your minimum down payment would be $15,400.00. You must have credit scores of 620 or better and have debt to income ratios that don't exceed 45% of you gross monthly salary.

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Q4 - My brother and his wife went to contract but the deal fell through recently because he wasn't pre-approved but rather pre-qualified? What is the difference and will he get his deposit back that he gave at contract?

A - While the laws vary from state to state, it is generally a rule of thumb that until a contract is signed a deal is not consummated.  The seller's agent has an obligation to represent the interests of the seller.  That means if another offer comes in that is superior to your offer, that agent has a fiduciary responsibility with presenting the information to the seller.  Having an accepted offer is a step towards a deal, but it is by no means yet a done deal.   

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Q5 - Are there any steps a person can take to avoid foreclosure? Can I speak with my lender?

A - Yes pay your mortgage on time consistently.  If you are falling behind with your payments speak to your lender for assistance on a loan modification to help reduce your payment and help make your mortgage more manageable.

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If you have a real estate question for Dottie, please send it to; Dottie@RealEstateChannel.com.
 
NOTE: Due to high volume of questions, not everyone can be answered, but she'll do her best.

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