TODAY

TODAY   |  October 18, 2013

Answers to the 5 biggest home buyer questions

Real estate agent Jay Morrison shares advice for prospective home buyers, like how to tell if your home will have a good resale value or how to finance your home based on how long you’ll live there.

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This content comes from Closed Captioning that was broadcast along with this program.

>> if you are thinking about buying a new home, maybe hitting a new open houses this weekend, well, you'll have a lot of questions.

>> he is here with the five must ask questions before you make that offer. good to see you again.

>> yes, you too.

>> let's talk a little business here. what kind of fees can i expect if i'm going out and looking at open houses.

>> any buyer can expect to have an appraisal fee. you should incur an inspection fee. it's not mandatory but every buyer should get an inspection and there are closing costs. if you have a realtor could be negotiated and put into your loan.

>> how much do i owe the realtor?

>> realtors we don't charge up front. we get paid on commission at the sale or purchase or the home.

>> right.

>> so as a buyer don't get discouraged thinking i have to come up with the money for my realtor. they only get paid on commission.

>> also keep that money in mind when you're putting an offer in on the home.

>> correct.

>> how long do i plan to live on this home is another question you need to ask yourself.

>> yes, every buyer should want to know how long am i going to be here because if you're going to be in a home forever, it's my dream home, my family, we're going to live here and die here and pass it to my kids, you may want to look at a shorter mortgage, a 15 year mortgage or even 30. if you're going to be leaving that area soon, you're in transit you may want to take a larger mortgage, actually, a 30 or 40 year mortgage and stretch your payments out that way you're paying cheaper monthly fees because you will get out of there soon.

>> what about adjustable rate mortgage?

>> yeah, if you're going to be there awhile, you don't want an a.r.m. you want as much principle as possible to pay it off. if you're looking to be more aggressive and you're moving jobs then you can take an a.r.m. because you'll be selling soon.

>> a lot of times there's things you want replaced by the seller. what kind of negotiation can you enter into about fixing things?

>> typically as a buyer you won't talk to the seller. either your attorney will talk to the seller's attorney or your agent will talk to the seller's agent. thing you can expect, your roof, water heaters, anything to do with the foundation, major appliances , major things you can get negotiated.

>> so that's fair game to say i want you to replace the roof before i buy this place?

>> you can ask for anything but the seller is looking to make their best deal also. you really want to stick to your major appliances .

>> okay. now another big question to ask is how can i tell if the home i want to buy has good resale value? this is if you're not planning on being in the home for a good time.

>> yes, very good question. if you want to know if your home will have good resale value, look at comparable homes in the area and what they sell for. a lot of us are caught up looking at what the house down the street is listed for which means nothing in our business. we use comparable homes based on what other houses in your area are actually selling for.

>> location, square footage , all of the comparable numbers.

>> location, square footage , bedroom count. does that house have a pool, garages, all of those things matter.

>> all right. the best dressed realtor we know.