Frequently Asked Questions

I have listed here questions I get pretty frequently. I will be updating these as time goes on or as new questions come in. If you have a question that is not here, but would like to get it answered contact me (Adam Stradt) here. I will reply back to you, and post the question here for others to use in the future.

Questions and Answers

Q: Isn't the assessed value listed on the assessors site the value of the home?

A: No, unfortunately. That would make my job a lot easier. The original intent was probably for that purpose and for tax purposes, but with changing market conditions a lot of times they have not been updated. So you could have a home that is either under assessed, over assessed, or right now. The important number to know is the market value of the home. Overall the assessed value is used just for tax purposes.

Q: What is market value and how do you find it out or what is the value of my home?

A: It is what a buyer is willing to pay for your home. A good REALTOR® will be able to put together a detailed report giving a range of what the home is worth or going to sell for either for a buyer or seller. You could also get an appraisal done which should give you a go indication as well. If you are a buyer, an appraisal will be done for your financing | mortgage after you have an accepted offer on a home.

Q: Can’t we get money from the seller at closing?

A: Yes and No. Depending on what loan | mortgage program you are doing you can ask for between 3-6% for concessions to cover the costs of getting your financing | mortgage. If you end up asking for more money than you need then the only money you can get back is what you put down for earnest money. The rest will go back to the seller. Any money that is passed under the table is fraud and helped create some of the mortgage mess you see today in the papers, in my opinion. There are other programs you can use like a down payment assistance that the seller can fund for you.

Q: What are concessions?

A: Concessions are origination fee, pre-paids, and closing costs. Overall, these represent the out of pocket expenses to buy a home.

Q: Are For Sale By Owners good deals?

A: That depends on the home being sold. If you want to shop for sale by owners the list price of the home should be a minimum of 7% less than the market value. In that case it would be a good deal. Otherwise, you will be paying for professional services that you won’t receive in most cases. Also make sure the owner is following state law requirements. I have had some clients that have bought for sale by owner, and when we went to sell the property it took me a year to get things cleaned up from the previous sale.

Q: What are the ages of the mechanicals etc?

A: The seller’s property disclosure should give you a good idea, but you should always get a certified home inspection to verify as much information as possible. Plus it will give you a good picture of what to expect and the current condition of the home.

Q: Commissions?

A: Our market is a 7% market which is also our policy at Skogman Realty. We do provide different commission schedules for builders and higher end homes. The commission is then split 50/50 between the two real estate companies involved, and then usually there is a split between the agent and their company.

Q: How do I find out how much I can afford?

A: Almost in every case you can get approved for more than you can afford. So ultimately you need to decide what fits into your budget. A good REALTOR® will be able to evaluate your situation and give you a good rough estimate. To get an exact figure you will need to visit with a loan officer.

Q: What is a GFE?

A: A GFE is a good faith estimate that is provided by your lender which breaks down the costs in buying a home. A good REALTOR® will be able to take that GFE and apply it towards the home you like and figure out what it will cost to buy that home figuring in all the costs associated including the ones not on the GFE and your tax credit from the seller with very little margin for error.

Q: How do I buy or sell a home?

A: This is a great question, but has numerous answers depending on your situation. The best thing to do is to sit down with a REALTOR® individually to look at your unique situation. To view a list of services I provide for buying a home click here or a selling a home click here.

Q: Can a REALTOR® show any listing?

A: Yes, an agent regardless of which company they work for can show any listing to you as the client. For example I work for Skogman Realty. If you are my client, I can show you Iowa Realty, Coldwell Banker, ReMax, listings etc.

Q: What can a REALTOR® do for me?

A: Great question. For buying a home click here, selling a home click here, or for new construction click here.

Q: What are the interest rates like?

A: Click here to see current interest rates and to view a 30 year history of the 30 year fixed interest rates. Current interest rates are fantastic.

Q: If I sell my home how much will it cost?

A: A good REALTOR® will be able to provide you with an estimate of proceeds taking some educated guesses from your market analysis on what should happen, and how that will affect you. Once an offer is received that agent should be able to tell you what your bottom line is if you accept that offer. Once you do accept an offer you should know already what to expect before you get to the closing table so that you don’t get any surprises.

Q: Is staging necessary when selling my home?

A: Yes, in today’s market the better representation/condition you can provide the faster your home will sell and for the most amount of money.

Q: What is the market like?

A: The market is always changing and a good REALTOR® will be able to give you an honest assessment. Living in the Cedar Rapids Iowa area we are very blessed, since we do not experience a lot of what you see on TV. Our market is very stable in comparison, and in great shape. With that we do not see high appreciations or large drops either. This is a great place to live, work, and own a home or homes.

Q: Is it a good time to build?

A: I think so. Since we are now out of the building boom, new construction seems to be down so some builders are offering more incentives. You also don’t have every man with a pick up and a hammer thinking he is a builder. So your construction quality should be better and more unique, in my opinion.

Q: What is financing | mortgage?

A: This has lots of different answers. A good REALTOR® will be able to sit down and explain the different loan options and what they mean for you. View my financing | mortgage services.

Q: What is earnest money?

A: Earnest money is provided by the buyer as a security deposit when buying a home. The money is deposited into the trust account of the selling agent's company. The seller does not receive the money unless the buyer backs out of the deal or some other unique situation happens. The most commonly used amounts are $500 and $1000. As the price of the home increases so does the amount of earnest money in most cases.

Q: Property Taxes?

A: Yes, we do have property taxes here. The tax year goes from July 1 till June 30th of each year with the installments due in September and March. As a seller your taxes are always behind. So when you go to sell your home you will have to pay your back taxes at closing providing a tax credit to the buyer's. For example if you close December 1st you will pay your March installment and than a pro-ration from July 1 till December 1st. Whenever you buy a home, outside of new construction, you should receive a tax credit unless you didn't want it. This is also why when you build a home you do not have any taxes for up to two years in some cases. Your new home has to be assessed and then applied to the tax year.