No, there are not any up front costs when you buy or sell a property through Silverwood Properties. We pay for all marketing if you are the seller. If you are the buyer, you will not have any costs until you have an accepted offer and are in escrow.

If I don’t end up buying a house would I get a bill from Silverwood Properties for services rendered?

No, you do not get a bill from Silverwood Properties. Silverwood Properties gets paid no money unless there is a successfully completed transaction. Silverwood Properties is paid by the seller, unless some other arrangement was specifically agreed upon, which is almost never the case.

After my house is listed for sale, if I later decide to take it off the market, will I still receive a bill from Silverwood Properties for services rendered?

No you will not receive a bill from Silverwood Properties. Again, Silverwood Properties gets paid no money by anyone unless and until there is a successfully completed transaction.

Once I find my desired property and get an accepted offer, how long will it be before I take ownership?

Generally speaking there is a 30 day period between the point of accepted offer and taking ownership of the property. During this time several vital activities take place, including the buyer having an inspection of the house to ensure there are no hidden flaws in the house. Additionally, it is time for a title company to ensure there is a clear title and that there are no other hidden owners or hidden liens on the property which could create legal problems for the new owner in the future. Also it is a time to make certain the financing for the purchase is fully in place and that the terms and conditions of the mortgage are acceptable to the buyer. These procedures normally take about 30 days.

If I don’t qualify for a conventional loan, do I have other options and if so, what are they?

If one doesn’t qualify for a conventional loan there is the possibility of getting a loan from a private investor or private lender. Generally such a loan would come with stiffer terms and conditions such as a higher interest rate. It would be incumbent upon the buyer, with the guidance of the Real Estate agent, to determine the advisability of using that option.

What out-of-pocket expenses would I have over and above the property purchase price?

As the buyer, once you are in escrow you will usually want to pay for a physical inspection of the property which, depending on the size of the property will cost anywhere from $300-$1000. Other than that the remaining costs will occur at the point of escrow closing. Depending upon various factors you will have closing costs ranging anywhere from 1.5% to 2.5% of the purchase price.

As a seller, how much are the closing costs and what is the breakdown?

As the seller, your closing costs will include a) the Agents commission, b) city and county transfer tax, c) escrow fee, d) title insurance, e) the cost of any government required retrofitting points, such as low flow shower heads and toilets, smoke detectors, etc., f) termite extermination and damage repairs and g) a one year home warranty for the new owner (negotiable). Generally speaking these costs, including the agent’s commission, will run approximately 8% of the sale price of the property.

What are the benefits of using a Real Estate agent to sell my house, as opposed to selling it myself?

The main benefits of using an agent to help sell your property are: a) the paperwork of a Real Estate transaction has, over the years, evolved into a voluminous and complex affair. Most non-licensed people would find this overwhelming. b) There can be considerable legal exposure in being the responsible party in a Real Estate transaction. If one were to omit any key parts of the process or make some sort of error, they could easily find themselves in a lawsuit or some other unsavory situation. A Real Estate professional who knows his business is not likely to fall prey to these pitfalls. Even if by some chance this were to occur the agent would normally be covered by Errors and Omissions Insurance. c) With few exceptions a Real Estate professional who deals with the vagaries of Real Estate day in and day out, is much better equipped to take care of the many points which have become an integral part of a Real Estate transaction.