What areas does Silverwood Properties service?
Silverwood Properties buys and sells Los Feliz real estate, Echo Park real estate, Silver Lake real estate, and real estate in Angelino Heights, Eagle Rock, Highland Park, Mount Washington, Glassell Park, downtown L.A. and other areas of Northeast L.A.
Are there any “up-front” costs to use Silverwood Properties as my real estate brokerage?
No, there are no 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 didn’t end up buying a house, would I get a bill from Silverwood Properties for services rendered?
No, you would 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 receive a bill from Silverwood Properties for services rendered?
No, you will not receive a bill from Silverwood Properties. Silverwood Properties gets paid no money unless and until there is a successfully completed transaction.
What does it mean for a house to be “in escrow”?
In real estate, “escrow” means placing something such as a deed or money in the hands of a neutral third-party until certain conditions are met. When a real estate purchase agreement is signed by a buyer and seller, and the buyer pays a deposit, the house goes “into escrow.” The purpose of escrow is to protect all parties involved by making sure no items, deeds, monies, etc., change hands until the conditions of the purchase agreement are met. One such condition may be the seller having an inspection done of the house to verify there are no undetected problems.
Once I find my desired property and get an accepted offer, how long will it be before I take ownership?
Once your offer is accepted, as signified by a signed purchase agreement, and you have given a deposit, the property goes into escrow. Escrow is typically 30 days long. During escrow, several vital activities take place, including the buyer having the house inspected to ensure there are no hidden flaws. Also during escrow, a title company ensures the property has “clear title” (is not subject to any outstanding legal claims) and that there are no other hidden owners or hidden liens. Financing for the purchase must also be firmly in place with mortgage terms and conditions which are acceptable to you, the buyer. When escrow closes, meaning all conditions of the purchase have been met, you can take ownership of the house. Generally speaking, escrow is a 30-day period.
If I don’t qualify for a conventional loan, do I have other options and if so, what are they?
If you don’t qualify for a conventional loan, there is the possibility of getting a loan from a private investor or private lender. Such a loan would typically come with stiffer terms and conditions such as a higher interest rate. It would be incumbent upon the buyer, with the guidance of the buyer’s real estate agent, to determine the advisability of this type of financing.
What out-of-pocket expenses would I have over and above the property purchase price?
As the buyer, once you are in escrow, it is advisable 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:
- your real estate agent’s commission
- city and county transfer tax
- escrow fee
- title insurance
- the cost of any government-required retrofitting points, such as low-flow shower heads and toilets, smoke detectors, etc.
- termite extermination and damage repairs
- a one-year home warranty for the new owner (negotiable).
Generally speaking, the closing costs, including your 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:
1.) There is considerable legal exposure in being the responsible party in a real estate transaction. If key elements are omitted or errors are made, the seller can wind up in a lawsuit or other nasty situation. A competent real estate professional is unlikely to fall into any such pitfalls. In the unlikely event an error were made, a reputable real estate agent would be covered by an Errors and Omissions Insurance policy.
2) With few exceptions, a real estate professional who deals with the intricacies of real estate transactions on a daily basis is far better equipped to correctly handle all key elements of a real estate transaction.
3.) The paperwork of a real estate transaction has evolved into a voluminous and complex affair. Most lay people would find this overwhelming.