10 Most Common Real Estate Questions

Hey Cora, I was just wondering, you get a lot of questions, what are the 10 most common real estate questions you get? Signed, The wonderer

Dear Wonderer, well that’s actually a really good question. Here are my top 10.

• How is the real estate market right now? This one I get all the time. Especially in Fred Meyer when I am wearing my name tag! Here is the answer – GOOD! There are still multi offers in some price ranges, there is still less that 6 months of inventory on the market, which means it’s a sellers market AND most price ranges are going for 95% to 101% of asking price!
• How do I get pre-approved for a mortgage? This one, easy-peezy! It use to be that you had to make an appointment with a lender and then they question everything you have done with your money in the last 250 years! But now, everything is done online! So simple. Usually, the lender that you choose will send you a link, and you just fill everything out on their secured web site and voila! You are approved! This also strengthens you position in buying – because you know what you can afford, and the seller sees that you are a serious buyer!
• What does my credit score have to be to qualify? Usually, 620. The higher your score the “cheaper” the loan. Now what I mean by this is that if your credit score is say 750, the cost of getting that loan, is going to be less than if your score is 620. “Cost” is the price a buyer pays for the loan, could be through the interest rate (meaning higher rate for lower score) or the mortgage origination fee, this is a one time fee but can be higher for folks with lower credit scores. Ask the questions – they will answer.
• What is earnest money? This is a typical question, because it’s kind of an old fashion phrase. Why is it Earnest, and not Bob Money or Steve Money. Earnest money means that you “earnestly” want to purchase the home and that because you are “earnest”, you are going to show the seller that you mean business by plopping down cold hard cash with your Realtor, and they will hold it in their trust account. Then, when the offer is accepted and you finally get to closing, these funds are used for your downpayment and closing costs.
• What is the fair market value of my home? This is a loaded question. Sometimes people want me to evaluate their home, without seeing it! This is difficult to do because, neighborhood, condition, maintenance, wear, oh so much will dictate the value. The heaviest weight of value is on square foot of “living” space, not the garage, although I know some of you guys live in the garage, and age of your home. These two factors along with seeing your home, will help me create a Current Market Analysis or CMA. I do this by looking at other homes in your area that have sold and closed. Not homes that are currently for sale – only closed homes. Because this shows what people in the area are willing to pay for a home and what sellers are willing to accept for their home.
• How do I prepare my home for sale? Every home is different, so this is a touchy question. I have a place on my website that will help you prepare your home for sale. https://corasproperties.com/seller/ This will give you all the help you need to prepare your home for sale. Another good way to prepare your home is to get a pre-home inspection done before it goes on the market. This way, all the minor little repairs can be done before anyone even sees your home.
• How do I find a good real estate agent? Well that’s easy, you call me! LOL, okay, if you don’t know anyone, ask your friends and family who they have used, they will have Realtors that they have used, know and trust. Also interview agents, ask them how they would market your home or show you properties. Communication is key and you need to let them know how you like to be communicated with. Like, phone calls only – or no phone calls, just text – all these things are important.
• What are closing costs? Good question. These are charges that you will have to pay when you go to close on your home. There are many people that have worked on your transaction to help you purchase a home, all those people have to be paid. Here is a list of a few. The title company, they prepare your documents, provide title insurance, communicate with the lender and recording fees and record all documents with the state give you clear title to the new home. The lender, they have tons of fees, loan origination fees, document preparation fees. Attorneys, deed preparation, real estate fees. On the buyers side, you can be pretty safe in calculating about 2.5 of the purchase price for closing costs.
• How do I make an offer on a house? Simple, your realtor will sit down with you and go over a contract, making sure that all the wants and needs you have concerning the house are in the offer. Once it’s all signed by you, the buyer, your Realtor will present your offer to the sellers agent and we are off to the races, so to speak, from there. The seller will do two of three things, accept your offer, counter your offer or reject your offer.
• What should I do if my offer is rejected? This is rare, usually only happens if you are in a multi offer OR if you have made a really dumb offer (just saying, be realistic when making offers). But if it’s been rejected, you should ask your agent if they will contact the seller’s agent and see what can be done to get your offer looked at again! What is the seller looking for? It may be something simple. Most of the time, a seller will counter back, meaning, they will, with the help of their agent, adjust your offer to meet their needs, then the ball is in your court to accept, counter back to the seller or reject and move on.

I hope this helped – It’s just Real Estate 101, but lots of good advice in there – let me know how I can help you with your real estate transaction.