skip to Main Content

Frequently Asked Questions

At The Hammonds Group, we are here to assist you in all aspects of the real estate world. Take a look at our frequently asked questions and if you require more information, please contact us here.

What are the steps of the home buying process?

  1. Check your credit score
  2. Determine how much you can afford
  3. Choose a lender and get pre-approved for a mortgage
  4. Find a real estate agent
  5. Start the home search process
  6. Make an offer
  7. Get a home inspection and home appraisal
  8. Purchase homeowners insurance
  9. Do a final walk-through
  10. Close on your new home

Is it smart to invest in real estate?

Real estate is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment—especially if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.

What is a seller’s market?

A seller’s market occurs when there are more interested home buyers than available properties on the market. In other words, the demand exceeds the supply, putting sellers at an advantage.

What is a buyer’s market?

A buyer’s market occurs when supply exceeds demand. In a buyer’s market, real estate prices decrease and homes linger on the market longer. In this instance, sellers must compete with each other to attract buyers.

How are home values determined?

Property value is determined in several ways. The most common determining factors include square footage, finishes, year constructed, neighborhood, and property condition.

If the prices of nearby homes are rising, does that mean my home value is appreciating too?

Unfortunately, home appreciation happens on an individual basis. The information regarding nearby home values is a determining factor, however, there are many other factors to consider when determining if a home is depreciating or appreciating in value. It’s safe to say that if homes in your area seem to be rising in value, the value of your home is likely rising too.

What is the difference between a residential appraisal and commercial appraisal?

Most commercial properties are valued based on the amount of net operating income (NOI) they produce, while the process for valuing a residential home is determined by reviewing all elements of the residential property.

How does a real estate development project work?

The real estate development process is a complex series of steps. Typically, it starts with a concept and ends with a fully developed property ready to be purchased or leased. Before anything can happen, the developer needs to conduct thorough research and create a budget to ensure the project is feasible financially.