Top Home Buyer FAQ’s
Buying A Home
When you are new to the buying process, questions about real estate abound. Buying a house is exciting, frightening, sometimes weird, often epic, and never boring. You are accumulating a lot of cash for a place that is lucky in the next few years. Therefore, you will definitely encounter many problems in each step of the process.
Questions About Future Real Estate
We have done the work for you before we start looking for the real estate agent’s number. We ask real estate agents to make recommendations on the most common questions and answers from buyers about real estate. You are welcome.
Q. What house am I able to afford?
A. It depends on your income and other financial obligations, enter them in the realtor.com family affordability calculator to get a rough figure.
“You should figure out your price range prior to shopping. If you see that your favorite home is out of the price range, it will disappoint you.” – Alyssa Blevins (Pierce Murdock Group, Alexandria, VA)
Meet the lender to get the prior approval for the mortgage.
Q. Can I buy a home and sell mine at the same time?
A. Yes, you can do this. However, it can be a tricky situation. For example, if your home sold prior to buying a new one, you would need to rent another location until you found a new home. Meanwhile, if you buy a house before selling your current home, you may not have enough money for the new mortgage.
“This is among the trickiest questions in real estate”. – Cedric Viquerat (Coldwell Banker Residential Real Estate)
However, there is an option available called a “sales contingency”. Basically, this means that you only agree to purchase the new home when your current home sells. The downside to this is, the seller may not agree to these type of contingencies.
Q. Should I look at several houses before bidding?
A. It depends on you, but these days buyers can see hundreds of homes online. On average, a buyer views 10 houses before bidding.
“Everyone’s situation is very different. Some people have found a home within a few hours of hunting. For others, it takes months.” – Will Johnson, Founder of Sell and Stage Hendersonville, TN.
Q. What is considered a fair offer?
A. Usually, offering 5% less than asking price is considered a fair offer. If you see a listing has been on the market for a few months, you can attempt to make an offer lower than asking price, but there are some risks.
“You never know if the seller will accept a lower price, because they have different motivatiosn for selling.” – Marc Castillo from Coldwell Banker of Atlanta, GA.
If the seller is eager to move or sell, they may accept your offer or counter offer to reach an agreement.
Q. How do I know if the property is doing well?
A. Although there is no crystal ball that magically knows the value of a particular home, you can minimize the surprise by investigating a little.
“The best way is to look at similar properties in the area and see what they sold for, this can help you determine if the prices are increasing or decreasing.” – Felise Eber, Coldwell Banker Miami Beach.
Q. How fast can I close?
A. You want to give yourself enough time for due diligence.
“The typical closing period is 30 to 45 days. This provides enough time for you to properly investigate the proeprty and finish the loan process.” – Rina Camhi, 10MinRealty founder, Houston, TX.
Q. Should I check the house?
A. Although buyers often want to know if they really need to do a home inspection, most real estate agents are clearly saying yes, yes and yes.
“House inspectors reduce the burden by observing the roof, electricity, heating and air, and the condition of the pipes. Ensuring these work properly can prevent you from expensive repairs in the future. If something doesn’t meet your requirements, you can resolve the issue with the seller prior to signing.” – Will Johnson, Founder of Sell and Stage Hendersonville, TN.
Q. If I change my mind, can I back out?
A. As a buyer you can always change your mind, but if there is not a good reason, you might forfeit any earnest money put down, this is usually 1-2% of the purchase price. However, there are methods to back out of a deal and retain your earnest money.
“Contingencies are amazing loopholes.” – Bridges
For instance, if a home inspection is not satisfactory, a buyer has the right to request their deposit back. Additionally, “subject to appraisal” is a loophole that allows you to back out in the event your lender believes the property is not worth the amount offered.
Home buyers commonly have questions, but home sellers also have questions. Check out what questions sellers frequently ask in the next article!