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| Frequently Asked Questions |
Q. Are open houses a way to find a good agent?
A. You could meet an agent who is right for you. It is important to choose agents for the right reasons: You like them, they like you, and they have the experience to help you search for a home and close the deal. If you want to buy the house the agent is showing, be aware that you are dealing with the seller's agent. While the agent can handle the purchase for you, their primary duty is to the seller, which may not be in your best interest.
Q. Does a drop in the median home price mean that homes in an area are losing value?
A. Increases and decreases in the median price can indicate a change in property values, but this is not always the case. A drop in the median price could indicate an increase in the number of first-time buyers in the market purchasing lower-priced homes. A rise in the median price might reflect an increase in the number of buyers trading up to more expensive homes.
Q. How can I tell if home prices are rising or falling?
A. One way to monitor increases and decreases in home prices is to look at changes in the median price in an area. The median price is the price that is halfway between the highest and lowest prices for a reporting period; most state and local realty boards compute these figures. When the median price increases, this indicates that more buyers bought higher-priced homes during a reporting period than they did during the previous reporting period. A decline in the median price means that more buyers bought less expensive homes.
Another way to check on prices is to compare current sale prices to those from a year ago. Your real estate agent should be able to help you do this. You also can look up property records yourself at the county recorder or tax assessor's office; if prices are going up, so will assessments.
Q. How long should I look before buying a home?
A. You should look until you find the home that is right for you. This could take a week or a year depending on your personal needs and the state of the real estate market. Ideally, you would like to find a home after you have looked long enough to know what you like and what you do not like. You need time to educate yourself about the housing inventory so that you will feel confident and secure making your offer.
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