Tag: Definitions

Word of the Week: Bilateral Contract

What is a Bilateral Contract in Real Estate?

There are a number of reasons why you should hire a Real Estate Agent to represent you. The paperwork alone is enough to make you dizzy. One piece of paperwork is key to the whole process – the contract. Typically, Real Estate sales contracts are “bilateral”, meaning it’s a two-way agreement. To put it simply, the Seller agrees to sell their home, and the Buyer agrees to purchase it.jsrealty4u Real Estate concepts home bilateral

Navigating through the sea of documents, addendums, and contracts is not an easy task. The Expert Realtors at the JS Realty Team take pride in providing you with a positive and rewarding Real Estate experience. Our Team has negotiated over $500 million in Real Estate transactions. We can lead you to the best Real Estate solutions for you and  your family. If you’re thinking about buying, selling, or investing in a property, contact us today. We offer a FREE, no obligation consultation and Home Analysis and we’d love to speak to you.

Loudoun Brambleton JSRealty4U Appreciation
The JS Realty Team @ Samson Properties

Word of the Week: Appreciation

Understanding What “Appreciation” Means in the Real Estate Industry

Appreciation is the increase in the worth or value of property. Investors generally buy property for two reasons – income production and appreciation potential.

jsrealty4u appreciationThe purchase of a home usually is the single greatest investment most people make in their lives. It’s important to look at one’s home as an investment, and understand what drives the value of the property in order to find opportunities that maximize wealth. Given the unpredictable nature of the real estate market, what should you know about home appreciation before you buy?

Location, Location, Location

jsrealty4u appreciation mark twain real estate land

As the population steadily increases, the demand for land grows as well. The supply of land on this planet is limited, and its price increases as the population does. Home buyers should focus more on how purchasing a property in a specific location will appreciate over time, versus the physical attributes of the home itself. This is a difficult task for buyers who are expecting to spend a significant amount of time in the home. However, almost all homes can be improved as time goes by and can provide a significant return on the investment – if they’re located in an area of high demand.

Current & Future Amenities

Local amenities are great, and definitely a key factor when choosing a property to purchase. But what about the future prospects for commercial and/or governmental development in the area? Future schools, hospitals, traffic patterns and other public infrastructure will have a big influence on land values, as well as current and future development of commercial amenities in a particular location.

jsrealty4u real estate construction appreciation

Unfortunately, whether your home will appreciate over time is mostly out of your control. The residential real estate market has a natural ebb and flow between being a buyers’ markets and a sellers’ markets.

With so much information and advice out there, it’s hard to know for sure where your property fits into the mix. The JS Realty Team is a great resource when it comes to buying and selling residential real estate. If you’re curious about the appreciation of your current home, contact our Expert Realtors today! They proudly offer FREE Home Analysis and Consultations for Buyers, Sellers, and Investors.

Loudoun Brambleton JSRealty4U Appreciation
The JS Realty Team @ Samson Properties

Word of the Week: Assumption

This Week We Define Assumption and How it Works

So what exactly is Assumption? It’s the act of transferring a loan from one borrower to another. So assuming a loan means taking over the seller’s mortgage and continuing to make the payments on it. An assumption generally requires the lender’s approval consistent with the agreement (assumption clause). JS Realty lender man mortgage assumption

For example, some lenders may agree to transfer the seller’s old loan to the buyer, which could benefit the buyer where the existing mortgage has an interest rate below current interest rates. When a buyer assumes a mortgage, they assume personal liability for full payment of the debt. And if the loan is not paid and a foreclosure sale does not satisfy the debt, the new buyer who assumed the loan could be personally liable to pay the outstanding balance. Such payments are court-ordered through a deficiency judgment. In most cases, however, the lender will hold the seller and the buyer jointly and severally liable. That means that the lender may pursue either or both parties to repay the debt. In effect, the buyer becomes a co-guarantor with the original note maker.jsrealty4u assumption handshake

In today’s market we don’t see a lot of loans assumed because rates are at historic lows. Loans tend to be assumed when rates rise dramatically and the current owners rates are more attractive than what is being currently offered. Another key point is that most loans can’t be assumed. Typically they are only available as an option on FHA and VA loans.

If you have additional questions on assumption, different types of loans, or Real Estate questions in general, feel free to contact us!

Word of the Week: Commission

Breaking down Real Estate commission, and how the JS Realty Team differs

Commission is the method of compensation for agency services, which is generally determined by an agreed upon percentage of the selling price.commission

Did you know? Fees for services are set by the individual brokers and firms. It would actually be a violation of antitrust laws for multiple firms to agree upon or fix a commission rate.

In traditional home sales, the sellers typically pay the agent’s commission—but there are exceptions. Auctions, for instance, usually charge buyers an additional “premium”.

The listing agreement is a contract between the seller and the agent, and it clearly specifies the commission rate. It details the terms under which a the rate is paid and the total commission to be paid. Therefore, buyers cannot negotiate the commission on the sale of a home. A buyer can only negotiate the purchase price and terms of the sale. The buyer’s agent is typically paid by the seller, because the listing agent is sharing a percentage of the commission. Sharing this is called cooperating, or a co-op commission.

And don’t forget, real estate commission—along with most costs associated with buying and/or selling a home—can be tax deductible!

How the JS Realty Team @ Samson Properties is different

commissionThe JS Realty Team proudly offers Full Service Listings for 4.5% (total Real Estate commission)! Other local agents charge 5, 6, even 7% of the purchase price, which means the JS Realty Team could save you thousands of dollars. In addition to a 4.5% rate, you also receive our Full Service listing package at no extra cost!

Our Full Service listing package includes, but is not limited to:
-MLS Service
-Just Listed Postcard, Full Color Brochures
–FREE Home Market Analysis
-Enhanced listings on Realtor.com, Trulia.com, Zillow.com & others
-Professional Photography
-Featured on JSRealty4U.com and Samson Properties Website
–YouTube video & Social Media Posts—Facebook, Instagram, etc.
-Seasoned negotiators

We’re here for you! If you’d like to learn more about us or have any questions about the services we offer, please visit our website. You can also contact us at any time for additional information.

Word of the Week: Appraisal

Why having an appraisal done on a home is a valuable tool

JSRealty4U Phone AppraisalBuying a home is a busy, often confusing time. Especially when the Realtors and Lenders start throwing terms around. And while some of the words sound like fancy names for the same thing, that’s not always true. Often, the Home Inspection can get confused with an Appraisal. Yes, someone is coming to your home to look, poke around, and take notes about the what they find. But the Inspector and the Appraiser are two very different individuals, performing two very different tasks.

APPRAISAL
noun
A formalized procedure that involves collecting and analyzing facts necessary to estimate the value of real property.

Property Value Tablet JS RealtyProperty value is based on a number of factors, such as location, amenities, structural condition, and recent sales of similar local properties. The appraisal process is done by an Appraiser. They will perform a walk-through of the property, and note anything that can potentially alter the home’s value. For example, if the home has a swimming pool in the backyard, but swimming pools aren’t popular in the area, it might not add much value to the property. In some cases, it may even detract from it.

The appraiser’s report will contains the appraiser’s opinion of value and the factual basis for that opinion. Appraisal reports range from fairly simple boilerplate reports to lengthy complicated narratives, depending on the type of property being appraised and the client’s needs. The appraiser will give final report to the lender, who is required to show it to the buyer. Make sure to obtain a copy for your own records.appraisal jsrealty4u real estate

The JS Realty Team @ Samson Properties is well versed in all facets of the buying and selling process. If you are in the market to buy or sell a home, please contact us today! We proudly offer a no obligation, free home analysis and consultation.