Real Estate FAQs
What are “closing costs”?
Closing costs are all the fees and expenses you need to pay when you're finalizing the sale or purchase of a property. Think of it as the last step in the process where everyone gets paid for their part in helping you buy or sell a home. This can include things like loan fees, title insurance, and appraisal fees to list a few, the lender is required by law to provide the buyer with a closing disclosure 3 business days before a scheduled closing date, although they may vary for each specific case, the closing costs are typically between 3% and 6% of the purchase price.
How long will it take to sell my house?
It takes from 30 to 100 days on average to sell a home. but in reality it depends on factors like the market conditions, the price you're asking for, and how appealing your home is to buyers. A good real estate agent can give you a better estimate based on the current market and specifics of your home, but the market will always somewhat unpredictable.
Do I need a home inspection?
Yes! getting a home inspection is highly recommended (it is more like an essential step actually). It helps you understand the condition of the property you're buying, so you can avoid any nasty surprises after the purchase. It will make you aware of the costs of repairs and maintenance the home may require immediately and over the years to come.
Do I need a down payment to buy a house?
Yes, most home purchases require a down payment. This is usually a percentage of the total price of the home. While the standard down payment is 20%, there are loan options that allow for smaller down payments, sometimes as low as 3-5%. There are also some unique options for first time home buyers to buy a house without a down payment at all so make sure to ask for recommendations and all the information to your real estate agent.
What is the selling/buying process like?
For sellers, it typically involves preparing your home, listing it, showing it to potential buyers, negotiating offers, and closing the sale.
For buyers, it starts with getting pre-approved for a loan, finding the right home, making an offer, getting a home inspection, and then closing the deal.
Why do I need a real estate agent?
Because is like your personal guide through the complex world of buying or selling a home. With the knowledge and experience to help you navigate the process, negotiate the best deals, and handle all the paperwork. Plus, they can give you valuable insights into the market to make sure you're making smart decisions.
What is a seller’s market vs. a buyer’s market?
In a seller’s market, there are more buyers than homes for sale, which can drive up prices and lead to quicker sales. In a buyer’s market, there are more homes for sale than buyers, which can mean lower prices and more negotiating power for buyers.
Can I sell my house without a real estate agent?
Yes, you can sell your house without a real estate agent, but there is a catch, it requires a lot of time, effort, and knowledge of the real estate market. You'll need to handle listing, marketing, showings, negotiations, and all the legal paperwork on your own. Many people find that hiring an agent saves them time and stress, and can even help them get a better price.
What is home equity?
Home equity is the portion of your home that you own outright, calculated by subtracting your mortgage balance from the market value of your home. As you make mortgage payments and your home appreciates in value, your equity increases.
What is the difference between being pre-qualified and pre-approved for a mortgage?
Pre-qualification is a preliminary assessment where a lender gives you an estimate of how much you might be able to borrow based on your financial information. Pre-approval is a more in-depth process where the lender verifies your financial details and gives you a specific loan amount. Pre-approval carries more weight with sellers because it shows you’re serious and financially prepared to buy.
When is the best time to buy a house?
When you get tired of spending money on rent and want to invest in something that can generate future profits. Despite high interest rates and rising property prices, now is the right time. This trend of rising house prices continues, and in the future, if interest rates go down, they can be refinanced.
When can i refinance my house?
You can refinance your house at any time, but there are three things to keep in mind when refinancing: you should consider lowering the interest rate, reducing the monthly payments, and shortening the loan term.
What considerations should be taken when buying from owner to owner?
When looking for an owner-to-owner house, some people imagine that the owner will finance it and that they will save money, but many times this is not the case. Owners may have a mistaken idea of the property's value, leading to transactions that are not in line with market value. Additionally, owners do not finance and are unaware of the process that a buyer must go through for financing. Another important thing is to ensure that this person is indeed the owner of the property and that it is free of any encumbrances.
Author: Delcor International Realty | Last updated: February 10, 2025