Sales are very brisk but we are not seeing as many multiple

GOOD FAITH ESTIMATE One of the most common misunderstood terms is the good faith estimate that is given to a buyer or a seller for their closing costs on a home . These costs are ESTIMATES that are based on the date the escrow will close and an estimated sales price along with title fees and lender fees where applicable . These can change if home warranty , termite work , needed repairs , closing date changes , or any added negotiation changes happen after the contract is signed . Be aware and prepared to have some extra cash to be sure you can close escrow . Estimates are given as a guideline and though they are close in accuracy they most of the time are not exact .

PRE-APPROVAL A lender offers a pre-approval letter to the borrower with the amount that the bank will lend based on the facts that are provided . If any of the information changes in any way while the borrower is getting the loan this can dramatically change the approval . Buying any large item on a credit card or payment plan can actually change the buyer ’ s ability to qualify for the home . It is best to not make any purchases during escrow . Buy the furniture and appliances or lend your child money after the escrow closes , not just after the bank verifies your statements . The lenders often check bank accounts and credit just before close to be sure things have not changed . Be aware that a job change can also affect your loan . The key is to be conservative and patient until you are in your new home .

THE “ COMP ” The term comp refers to the comparable sale or listing that is a close match to the home you are selling or purchasing . It is not an exact science so your agent ’ s knowledge of pricing a home for sale or negotiating the best price for a purchase is paramount . Homes have different locations , upgrades , and schools that can change a price dramatically . Be sure to ask how your agent arrived at the price range for your home . When you are getting a complete market analysis , agents take care in studying all the factors similar to an appraiser to come up with a price range . It is not just one home that sold but a variety of neighborhood homes and conditions . Internet “ comps ” do not know the variances of neighborhood or upgrades that can change a price immensely . Be sure to ask a great agent for a true determination of price and do not determine your price for buying or selling from internet information alone .

MLS Multiple Listing Services provides current and past listings and sales for everyone to access . This shows homes that are open and gives buyers and sellers a vehicle to see what is available and an estimated price range ; where they may see their home selling . It is the agent , however , that has access to the most information on the home and can give you a true evaluation .

Local Trends Single Family Residential in Morgan Hill

Teri Nelson , Realtor Intero Real Estate Services

408.425.5200

BRE # 00858151