Frequently Asked Questions
Some questions frequently asked by our clients. If you need more information, please do not hesitate to contact us.
What areas do you specialize in?
We do not consider ourselves “area specialists”. Since there is so much information available at our fingertips, we can quickly learn any area in a matter of hours. Instead, we consider ourselves “client specialists”. We go to any area that our clients want us to go to as long as they value our services and as long as it is feasible for us to do so.
What is the difference between an agent, a real estate broker and a realtor?
Technically those terms mean different things, but to the average consumer, they are one and the same. An agent is simply someone who is legally allowed to represent and/or act on behalf of another person. A real estate broker is a licensed individual commissioned in the sale of real estate. In California, the term broker actually refers to an individual holding the highest level license offered by the Bureau of Real Estate. A realtor is a licensed individual who belongs to the National Association of Realtors, enabling him/her to use the title “Realtor®”.
How do real estate commissions work?
In the majority of transactions, a listing agent will negotiate a commission rate with the seller of a home. That rate is typically a percentage of the final sales price of the home. The listing agent will split that commission with an agent who procures the buyer. Often times, that split is 50-50, but it is not always the case. Commissions are usually paid to the agents at the close of escrow.
Should I buy or rent?
The answer highly depends on your individual objectives and current financial situation. While it may be advantageous for one person to buy right now, it might not be the case for you. That is because your objectives and current financial situation will be different than someone else’s. We provide sound financial guidance to our buyer clients and develop a strategic plan to achieve purchasing goals.
What is escrow?
Escrow, in common residential real estate, is a term used to describe the process in which all parties to a transaction perform their respective tasks in order to close a transaction. An escrow company is contracted as an independent third party to ensure that the transaction closes on time and accurately. An escrow officer from that escrow company will be assigned to the transaction to coordinate the efforts of all parties. Some of the more important duties assigned to the escrow company is to hold all funds to be disbursed and deeds to be recorded until the transaction is ready to be closed. The escrow company also pays off any liens and calculates the proration of property taxes, HOA dues, etc. Both seller and buyer typically share in the cost of escrow services.
What is HOA?
HOA is the acronym for Home Owners Association. An HOA is a governing body that implements and enforces certain rules that all homeowners must abide by. Not every home is governed by an HOA, but for the ones that are, HOA dues are assessed on every homeowner to run the HOA and to build cash reserves necessary to fund major repairs of common areas etc. HOA fees depend on the location of the home and the type of home.
What is Mello-Roos?
Mello-Roos refers to the Mello-Roos Community Facilities Act of 1982, which was passed as an alternative way for financing community improvements and services. The Act allows any county, city, special district, school district, or joint powers authority to establish a Mello-Roos Community Facilities District (CFD) which allows for financing of public improvements and services. The services and improvements that Mello-Roos CFDs can finance include streets, sewer systems and other basic infrastructure, police protection, fire protection, ambulance services, schools, parks, libraries, museums and other cultural facilities. By law, the CFD is also entitled to recover expenses needed to form the CFD and administer the annual special taxes and bonded debt.
Typically Mello-Roos are established when a new community is developed, but in some cases can be levied on established communities. They are assessed to a homeowner along with property taxes and can last for up to 30 years.
What are closing costs?
Closing costs are the expenses, over and above the cost of the home, that buyers and sellers incur to complete a real estate transaction. Although there are many specific closing costs, typical closing costs include: loan origination fees, discount points, appraisal fees, title insurance fees and escrow fees. These costs further fall into two categories: recurring and non-recurring. Non-recurring closing costs are one-time fees associated with buying a home or obtaining a loan. Recurring closing costs are fees that will continue into the home ownership period like property taxes and homeowners insurance. Often times, a prorated share of taxes and insurance is due at the time of closing escrow; so they are considered “closing costs”. Specifically, they are considered “recurring” because they will continue during home ownership.
How much is my house worth?
We offer home valuation services that provide a supportable opinion of value. Click here to find out more.
What is escrow?
Escrow, in common residential real estate, is a term used to describe the process in which all parties to a transaction perform their respective tasks in order to close a transaction. An escrow company is contracted as an independent third party to ensure that the transaction closes on time and accurately. An escrow officer from that escrow company will be assigned to the transaction to coordinate the efforts of all parties. Some of the more important duties assigned to the escrow company is to hold all funds to be disbursed and deeds to be recorded until the transaction is ready to be closed. The escrow company also pays off any liens and calculates the proration of property taxes, HOA dues, etc. Both seller and buyer typically share in the cost of escrow services.
What are closing costs?
Closing costs are the expenses, over and above the cost of the home, that buyers and sellers incur to complete a real estate transaction. Although there are many specific closing costs, typical closing costs include: loan origination fees, discount points, appraisal fees, title insurance fees and escrow fees. These costs further fall into two categories: recurring and non-recurring. Non-recurring closing costs are one-time fees associated with buying a home or obtaining a loan. Recurring closing costs are fees that will continue into the home ownership period like property taxes and homeowners insurance. Often times, a prorated share of taxes and insurance is due at the time of closing escrow; so they are considered “closing costs”. Specifically, they are considered “recurring” because they will continue during home ownership.
