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Buyer FAQs

Welcome to Our Homebuyer FAQ Page: Your Ultimate Guide to Buying a Home!

We understand that navigating the process of buying a home can feel overwhelming at times. That’s why we’ve created this comprehensive FAQ page to address all your questions and provide you with the knowledge and confidence you need to make informed decisions.

Whether you’re a first-time homebuyer or have previous experience, our FAQ section is designed to cover a wide range of topics related to purchasing a home. From understanding the mortgage process to exploring different neighborhoods, from evaluating property inspections to deciphering real estate jargon, we’ve got you covered.

Our team of experts has curated a collection of commonly asked questions to provide you with valuable insights, tips, and resources. With the information in hand, you’ll be well-equipped to embark on your home buying journey and make the best choices for your needs and preferences.

So, let’s dive in and explore the answers to your most pressing questions. Feel free to browse through the questions and remember, our experienced real estate professionals are always here to support you throughout your homebuying process.

Get ready to embark on an exciting adventure towards finding your dream home. Let our Homebuyer FAQ page be your trusted guide along the way!

Questions Asked While “Getting Started”

Should I hire a buyers agent and what are the benefits?

Hiring a buyer’s agent is highly recommended when you’re in the process of purchasing a home. Here are some key reasons why you should consider hiring a buyer’s agent:

  1. Expert Guidance: Our buyer’s agent are licensed real estate professionals with specialized knowledge and expertise in the local market. They can provide valuable insights into neighborhoods, market conditions, and property values. With their guidance, you’ll have a better understanding of the current market trends and make informed decisions.
  2. Access to Listings: Our buyer’s agents have access to the Multiple Listing Service (MLS), which is a comprehensive database of available properties. They can set up customized searches based on your specific criteria, saving you time and effort in searching for suitable homes. They can also notify you about new listings that match your preferences as soon as they hit the market.
  3. Negotiation Skills: One of the significant advantages of hiring a buyer’s agent is their expertise in negotiation. They can help you navigate the negotiation process, ensuring that you secure the best possible price and terms for your desired property. Their experience in handling real estate transactions can be invaluable in advocating for your interests and achieving a successful outcome.
  4. Assistance with Documentation and Paperwork: Buying a home involves extensive paperwork and documentation. A buyer’s agent can assist you in understanding and completing the necessary paperwork, including purchase agreements, disclosures, and addendums. They’ll ensure that all the required documentation is prepared accurately and submitted on time.
  5. Network of Professionals: Our buyer’s agents have a network of professionals in the real estate industry, including lenders, home inspectors, title companies, and attorneys. They can provide recommendations and help you connect with trusted professionals who can assist you throughout the buying process. Having reliable contacts can streamline the process and give you peace of mind.
  6. Objective Advice and Support: Buying a home can be an emotional journey, and having a buyer’s agent by your side provides objective advice and support. They can offer insights and perspective, helping you weigh the pros and cons of different properties. Their expertise can guide you in making sound decisions aligned with your goals and preferences.

Overall, hiring a buyer’s agent offers numerous benefits, from expert guidance and access to listings to skilled negotiation and professional support. They are your advocate throughout the homebuying process, ensuring that your interests are protected and helping you navigate each step with confidence.

Should I talk with a bank before looking at homes?

It is highly advisable to talk with a bank or a mortgage lender before you start actively looking at homes. Here’s why it’s important:

  1. Determine Your Budget: Speaking with a bank or mortgage lender will help you understand how much you can afford to spend on a home. They will evaluate your financial situation, consider factors such as your income, credit score, and debt-to-income ratio, and provide you with a pre-approval or pre-qualification letter. This information will give you a clear understanding of your budget and help you focus your home search on properties within your price range.
  2. Save Time and Streamline the Process: By obtaining a pre-approval or pre-qualification, you’ll have a better idea of the loan amount you qualify for and the type of mortgage that suits your needs. This knowledge will help you narrow down your search and focus on homes that align with your financial capabilities. It saves you time by avoiding properties that are outside your budget and ensures you are looking at homes that are within your reach.
  3. Increase Negotiating Power: When you make an offer on a home, having a pre-approval or pre-qualification letter strengthens your position as a serious buyer. Sellers often prefer buyers who have taken the initiative to secure financing before making an offer. It shows that you are financially prepared and increases your credibility as a buyer. This can give you an edge in negotiations and potentially result in more favorable terms or a faster acceptance of your offer.
  4. Identify Potential Financing Challenges: Speaking with a bank or mortgage lender early on can help identify any potential financing challenges you may face. They can assess your financial situation and advise you on any steps you need to take to improve your eligibility for a mortgage. It gives you the opportunity to address any credit or financial issues in advance, making the homebuying process smoother and increasing your chances of securing favorable loan terms.
  5. Understand Loan Options: Mortgage lenders can educate you about the various loan programs available to you. They can explain the different types of mortgages, down payment requirements, interest rates, and other associated costs. This knowledge will empower you to make informed decisions about the type of loan that best suits your needs and financial goals.

In summary, talking with a bank or mortgage lender before looking at homes is a crucial step in the homebuying process. It helps you determine your budget, streamlines your search, increases your negotiating power, identifies potential challenges, and provides you with a clear understanding of your financing options. Working with a knowledgeable lender will set you on the right path towards finding your dream home with confidence. We have great bank or mortgage lender recommendations that we are happy to share with you.


Should I buy a home or continue to rent?

Buying a home can be a very solid investment.  This being said, renting can also be a better option for some, depending on the circumstances.

There are questions that you should ask yourself before deciding to buy a home.  One of the most important things to consider is the length you plan on staying in a home if you were to purchase.  If the answer is only a couple of years, it’s likely the better decision is to continue renting.  Another question to ask yourself is whether you are ready to take on the additional “responsibilities” of owning a home.  When owning a home there will be general home maintenance that should be done, are you ready for that?

Buying a home is a great option in many cases, but not always. We are happy to have an open discussion with you and chat about the pros and cons of each!


I own a home, should I buy another before selling my current home?

There is truly no concrete “correct” answer to this question.  There are pros and cons to buying a home before selling your current home and the same can be said about selling your current home before buying another.

Buying a home before selling your current home

The biggest benefit to buying a home before selling your current home is the fact that you have a suitable property lined up.  This can reduce the stress and pressure of having to find a home once your current home is sold.  This however also can create disappointment and heartbreak.  If you are unable to purchase a new home without having to sell your current home, you’re purchase offer is going to be contingent upon the sale and transfer of title of your current home.  If your current home does not sell in a timely manner, this can lead to you getting “bumped” by a non-contingent buyer and you losing out on the home you’re looking to purchase, which can be devastating.

Selling your current home before buying a new home

The time it takes to sell your current home is unpredictable.  There is no crystal ball that exists that can tell you exactly how many days it will take.  Selling your current home before buying a new home will put you in an ideal position to negotiate on the new home you’re purchasing due to the fact you are purchasing without the sale contingency of your current home.

One risk of selling your current home without buying a new home first is the chance of not being able to have a place to live.  There are options if your current home sells before buying another though.  A “lease-back” can sometimes be negotiated with the buyer of your current home.  A “lease-back” would allow you to retain possession of your current home for a certain number of days after closing at the expense of paying the buyer’s mortgage.  A “lease-back” allows for additional time to find a new home!

If you need to sell in order to buy, click here to receive exclusive access to 10 creative solutions that can allow you to do exactly that – sell then buy!



Who pays the Realtor fees when buying a home?

In a typical real estate transaction, the buyer’s agent fees are typically paid by the seller. Here’s how it works:

  1. Listing Agreement: When a homeowner decides to sell their property, they sign a listing agreement with a listing agent. This agreement includes the commission that the seller agrees to pay the listing agent for their services. The listing agent then enters the property into the Multiple Listing Service (MLS) and offers a portion of the commission to buyer’s agents who bring a buyer to the transaction.
  2. Cooperation and Splitting of Commission: The seller’s listing agent, as a part of the MLS listing, specifies the commission percentage they are offering to buyer’s agents. When a buyer’s agent represents a client who purchases the property, they are entitled to a portion of the commission offered by the seller’s listing agent. This means that the seller ultimately pays the buyer’s agent fees out of the proceeds from the sale.
  3. No Direct Payment from the Buyer: As a buyer, you generally do not pay your buyer’s agent directly for their services. Their commission is typically included in the overall purchase price of the home and is paid by the seller as part of the transaction.

It’s important to note that the specific details of commission arrangements can vary, and it’s always a good idea to discuss the commission structure with your agent before entering into a buyer’s agency agreement. Your agent can provide you with clarity on how their commission is handled and answer any questions you may have regarding the financial aspects of the transaction.

By working with a buyer’s agent, you can benefit from their expertise and guidance throughout the homebuying process without incurring direct costs for their services. They can assist you with property searches, negotiations, contract review, and more, all while being compensated through the commission paid by the seller.


Questions Asked While “House Hunting”

What is a short sale?

A short sale is a situation where a homeowner sells their property for less money than what they owe on their mortgage. It usually happens when the homeowner is facing financial difficulties and is unable to keep up with mortgage payments.

In a short sale, the lender agrees to accept less money from the sale of the property to release the homeowner from their mortgage obligation. This allows the homeowner to avoid foreclosure and the lender to recoup some of their losses.

The process involves the homeowner working with their lender to demonstrate their financial hardship and provide documentation to support the sale. The lender then assesses the market value of the property and decides whether to approve the short sale.

It’s important to note that short sales can be complex and time-consuming, involving negotiations with the lender and potential delays. However, for buyers, a short sale can present an opportunity to purchase a property at a price lower than its market value.


What is a foreclosure?

A foreclosure is a legal process that happens when a homeowner fails to make their mortgage payments and is unable to catch up on the missed payments. It usually occurs when the homeowner is in default, meaning they are significantly behind on their mortgage payments.

In a foreclosure, the lender takes legal action to repossess the property and sell it to recover the unpaid mortgage debt. This process is typically initiated by the lender after a period of delinquency and unsuccessful attempts to work out a solution with the homeowner.

Once the foreclosure process starts, the property is usually auctioned off to the highest bidder. If there are no buyers at the auction, the lender may become the owner of the property and sell it as a bank-owned or “real estate owned” (REO) property.

For homeowners, foreclosure is a challenging and distressing situation because it often results in the loss of their home. For buyers, foreclosed properties can sometimes be purchased at a lower price, but it’s important to be aware of potential risks and complications associated with buying a foreclosed property.

It’s worth noting that foreclosure laws and processes can vary by state, so it’s advisable to consult with a real estate professional or attorney for specific information regarding foreclosures in your area.


How is the neighborhood/area?

When buying a home, a common question home buyers have is regarding the neighborhood/area. As a real estate professional, there are rules against steering and providing personal insight into specific areas and neighborhoods. This doesn’t mean that your Realtor cannot provide you with tips to help you choose the right neighborhood when buying a home. Many buyers wonder about the growth of the local economy, crime statistics, taxes, and local amenities. If you have a top Realtor when buying a home, you should be able to receive all of the pertinent information to allow you to make an educated decision on areas and neighborhoods.


How are the schools?

This is another question that Realtors should tread very lightly with. There is no doubt that schools impact property values. Just like tips for selecting a neighborhood, a top Realtor should be able to provide you with names or websites where you can find information on the local schools so that you can determine whether or not the schools are acceptable to you or not.


What are the average utility bills?

When buying a home, it’s important to know what additional costs will be in addition to the monthly mortgage payment. Utility bills are just one of the additional costs to consider when buying a home. Utility bills can be obtained from the homeowner and in some cases, from the local utility company, who can provide averages over the past 12 months. Keep in mind, everyone prefers to have their home temperature different, so the average bill could be different if you were to purchase the home.


What’s the age of the…____?

When looking at homes, many buyers want to know the ages of specific items in a home. The most popular items in a home that buyers want to know about are the major mechanical items, such as the roof, furnace, water heater, and air conditioning (if applicable). An experienced Realtor should be able to find the dates of a furnace, water heater, and air conditioning unit by looking at the serial numbers. The roof age is often known by the homeowner. If not, the age usually can be approximately determined by looking at the roof characteristics, such as the sagging areas and the way the shingles are laying.


How many homes should I look at before putting in a purchase offer?

This question is often asked and is a simple answer. The answer is, there is no specific number of homes you should look at before buying a home. Don’t feel that if you were to purchase the first home you look at that you’re making a mistake. The same can be said if it takes you looking at 25 homes. Generally speaking, the average home buyer knows if they are interested in purchasing a home within the first 15 seconds of walking into the home. If it feels like home, it may be the one!


Questions Asked While “Deciding to Submit a Purchase Offer”

How much should I offer the sellers?

Determining how much to offer the sellers when buying a home is a crucial decision that should be based on several factors. Here are some key considerations to help you determine your offer price:

  1. Market Analysis: Conduct a thorough market analysis with the assistance of your real estate agent. Review recent sales of comparable properties in the area to get an idea of their selling prices. This will give you a sense of the current market value and help you gauge what a reasonable offer would be.
  2. Property Condition: Assess the condition of the property. Consider any repairs or upgrades that may be needed and factor those costs into your offer. If the property requires significant work, you may want to adjust your offer accordingly.
  3. Days on Market: Take into account how long the property has been on the market. If it’s been listed for an extended period, the sellers may be more motivated to negotiate. However, if it’s a new listing or a highly desirable property in a competitive market, you may need to submit a stronger offer to stand out.
  4. Seller’s Motivation: Consider the seller’s motivation for selling. Are they relocating, downsizing, or facing financial difficulties? Understanding their circumstances can help you gauge their willingness to negotiate. Your real estate agent can gather this information discreetly on your behalf.
  5. Market Conditions: Evaluate the overall market conditions. Are you in a buyer’s market with ample inventory and low demand? Or is it a seller’s market with limited inventory and high demand? In a seller’s market, you may need to be more competitive with your offer to increase the chances of acceptance.
  6. Your Budget and Limitations: Determine your budget and the maximum amount you’re comfortable paying for the property. Consider your financial situation, your pre-approval or pre-qualification amount from the lender, and any contingencies you may need, such as a home inspection or financing contingency.
  7. Negotiation Strategy: Work closely with your real estate agent to develop a negotiation strategy. They will provide guidance based on their expertise and market knowledge. Your agent can help you craft an offer that is fair and reasonable while still protecting your interests.

Remember, it’s essential to strike a balance between offering a competitive price and staying within your budget. Your real estate agent’s expertise will be invaluable in helping you determine a suitable offer price that aligns with your goals and the current market conditions.


What is an earnest money deposit?

An earnest money deposit, also known as a good faith deposit, is a sum of money that a buyer provides as a show of their serious intent to purchase a property. It is typically submitted along with the purchase offer and held in an escrow account until the closing of the transaction.

Here’s what you need to know about earnest money deposits:

  1. Purpose: The primary purpose of an earnest money deposit is to demonstrate to the seller that you are committed to buying the property. It shows your sincerity and provides assurance that you won’t back out of the deal without a valid reason.
  2. Amount: The amount of the earnest money deposit is negotiable between the buyer and seller. It is typically a percentage of the purchase price, ranging from 1% to 5% of the total. The specific amount will depend on various factors such as local customs, market conditions, and the value of the property.
  3. Protection: The earnest money deposit offers some protection to the seller in case the buyer fails to fulfill their contractual obligations. If the buyer defaults on the agreement without a valid reason, the seller may be entitled to keep the earnest money as compensation for the lost time and opportunity.
  4. Escrow Account: The earnest money deposit is typically held in an escrow account managed by a neutral third party, such as the title company or the real estate brokerage. This ensures that the funds are securely held until the closing of the transaction or until otherwise specified in the purchase agreement.
  5. Application: At the closing, the earnest money deposit is usually applied towards the buyer’s down payment or closing costs. It essentially becomes part of the total funds required to complete the purchase.
  6. Contingencies: The purchase agreement may outline specific contingencies that allow the buyer to recover their earnest money deposit if certain conditions are not met. Common contingencies include home inspection contingencies, financing contingencies, or appraisal contingencies. If a contingency is not satisfied within the agreed-upon timeline, the buyer can typically withdraw from the contract and receive a refund of their earnest money.

It’s crucial to review the terms related to the earnest money deposit carefully and work closely with your real estate agent and attorney to understand your rights and obligations. They can guide you through the process and ensure that the earnest money deposit is handled properly and in accordance with the applicable laws and regulations.


What is a home sale contingency?

A home sale contingency is a clause or provision included in a purchase agreement that allows a buyer to make an offer on a new home contingent upon the successful sale of their current home. In simple terms, it means that the buyer’s obligation to purchase the new home is dependent on selling their existing home within a specified timeframe.

Here’s what you need to know about home sale contingencies:

  1. Purpose: The purpose of a home sale contingency is to protect the buyer from being financially obligated to purchase a new home if they are unable to sell their current home. It provides a level of flexibility and ensures that the buyer is not left owning two properties or facing financial strain.
  2. Process: When a buyer submits an offer with a home sale contingency, the seller has the option to accept, reject, or counter the offer. If the seller accepts the offer, they may include a “kick-out” clause, which allows them to continue marketing the property and accept a better offer if it becomes available. The original buyer is then given a specific timeframe (typically 30-60 days) to secure a buyer for their current home.
  3. Timeline: The home sale contingency typically includes a specific timeline within which the buyer must sell their existing home. This timeframe is negotiated between the buyer and the seller and can vary based on market conditions and the specific circumstances of the transaction.
  4. Responsibilities: As a buyer with a home sale contingency, it’s crucial to actively market and attempt to sell your current home within the specified timeframe. This may involve working with a real estate agent, setting an appropriate listing price, and preparing the property for sale. It’s important to demonstrate good faith efforts to sell your home promptly.
  5. Risks: One risk associated with a home sale contingency is that the seller may receive a better offer from another buyer without a contingency. In such cases, the seller may choose to exercise the kick-out clause and accept the new offer, leaving the original buyer with the option to either remove the contingency, secure alternative financing, or withdraw from the purchase agreement.
  6. Alternatives: In competitive real estate markets or situations where sellers are not open to home sale contingencies, buyers may explore alternative financing options such as bridge loans or other forms of temporary financing to bridge the gap between the purchase of a new home and the sale of their current one.

It’s important to work closely with your real estate agent and/or attorney to fully understand the implications of a home sale contingency and to ensure that the terms are properly negotiated and outlined in the purchase agreement. They can guide you through the process and help protect your interests during the transaction.


How long does the seller have to respond to my offer?

As a buyer, you may wonder how long the seller has to respond to your offer when purchasing a home. The timeframe for the seller’s response is typically determined by local customs, the specific terms outlined in your offer, and any negotiation between the parties. Here are some key points to consider:

  1. Offer Expiration: When submitting your offer, you can specify an expiration date and time, indicating how long the seller has to respond. This timeframe is typically a few days but can vary based on market conditions and negotiation factors.
  2. Market Norms: In some regions or markets, it is common for sellers to respond within 24 to 48 hours. However, in other areas or during busier times, sellers may take longer to review and respond to offers.
  3. Multiple Offers: If there are multiple offers on the property, the seller may need additional time to carefully consider each offer and make a decision. In such cases, the seller may extend the response time or request the highest and best offers from interested buyers.
  4. Communication Channels: The method of communication can also impact the response time. Offers submitted electronically or through a real estate agent may receive faster responses compared to offers sent via traditional mail.
  5. Negotiation and Counteroffers: If the seller receives your offer but wishes to negotiate certain terms, they may respond with a counteroffer. This starts a negotiation process where both parties go back and forth until mutually acceptable terms are reached. Each counteroffer typically includes a timeframe within which the buyer must respond, creating a series of deadlines throughout the negotiation process.
  6. Time Sensitivity: If your offer has specific time-sensitive factors, such as contingent on financing approval or other deadlines, make sure to communicate these to the seller. This can help create a sense of urgency and prompt a faster response.
  7. Flexibility and Patience: While it’s natural to want a prompt response, it’s important to be flexible and patient during the negotiation process. Sellers may need time to carefully consider your offer, consult with their real estate agent or attorney, and assess other factors before responding.

It’s crucial to work closely with your real estate agent throughout the offer process. They will have local market knowledge and can provide guidance on customary response times and negotiation strategies. Your agent can also communicate with the seller’s agent to obtain updates on the status of your offer and keep you informed throughout the process.


What if my offer is rejected?

As a buyer, it can be disappointing if your offer on a property is rejected. However, a rejected offer does not necessarily mean the end of your home-buying journey. Here’s what you can do if your offer is rejected:

  1. Understand the Reasons: When your offer is rejected, it’s important to understand the reasons behind the seller’s decision. The seller’s motivation could vary, such as receiving a higher offer, different terms, or a change in circumstances. Your real estate agent can communicate with the seller’s agent to gather feedback and insights regarding the rejection.
  2. Evaluate Your Offer: Take a closer look at your offer and consider if there are any areas for improvement. Assess factors like the purchase price, contingencies, financing terms, and other terms specified in the offer. Your real estate agent can help you review the offer and identify potential adjustments that may make your offer more appealing to the seller.
  3. Revisit Your Budget and Options: If your offer is rejected due to a price discrepancy, you may need to reevaluate your budget and determine if you can increase your offer within your financial limits. Alternatively, you might explore other properties that better align with your budget and preferences. Your agent can assist you in finding alternative options that meet your criteria.
  4. Negotiate and Submit a Counteroffer: Depending on the circumstances, the seller may be open to further negotiations. Your real estate agent can guide you in preparing a counteroffer that addresses the seller’s concerns while protecting your interests. Negotiations can involve adjusting the purchase price, contingencies, closing dates, or other terms to reach a mutually agreeable agreement.
  5. Keep an Eye on the Property: Even if your offer is rejected initially, it doesn’t hurt to monitor the property’s status. Sometimes, the accepted offer may fall through due to financing or other contingencies. In such cases, the seller may reconsider your offer or be more open to negotiating with you as a backup option. Staying informed about the property’s status can provide you with potential opportunities in the future.
  6. Remain Flexible and Patient: The home-buying process can involve multiple offers, counteroffers, and negotiations. It’s important to remain flexible and patient throughout the process. Stay positive and continue working closely with your real estate agent to explore new opportunities and find the right home for you.

Remember, every real estate transaction is unique, and the outcome can vary. Your real estate agent is your valuable resource throughout the process, providing guidance, insights, and support to help you navigate any challenges and increase your chances of success in finding your dream home.


Do I have the option to conduct home inspections?

As a buyer, you absolutely have the option to conduct home inspections. In fact, it is highly recommended to have a home inspection as part of your due diligence when purchasing a property. Here’s what you need to know:

  1. Purpose of Home Inspections: A home inspection is a professional assessment of the property’s condition. It aims to identify any potential issues, defects, or safety concerns that may not be apparent during a casual viewing. The inspection typically covers the structure, systems (such as plumbing, electrical, and HVAC), roof, foundation, and other visible components.
  2. Hiring a Qualified Home Inspector: It’s important to engage a qualified and experienced home inspector who is licensed or certified in your area. Your real estate agent can provide recommendations for reputable inspectors. The inspector will conduct a thorough evaluation of the property and provide you with a detailed report highlighting their findings.
  3. Inspection Contingency: In your purchase offer, you can include an inspection contingency, which allows you a specified period (typically a few days) to conduct the inspection. This contingency safeguards your interests, giving you the opportunity to uncover any significant issues with the property.
  4. Reviewing the Inspection Report: Once the inspection is complete, you will receive a report detailing the inspector’s findings. This report will outline any deficiencies or concerns discovered during the inspection. Your real estate agent can help you understand the report and navigate through the information.
  5. Negotiating Repairs or Credits: If the inspection reveals significant issues, you can negotiate with the seller to address these concerns. Depending on the circumstances, you may request repairs, a credit towards closing costs, or a reduction in the purchase price to compensate for the repairs needed. Your real estate agent can guide you through this negotiation process and help you reach an agreement that protects your interests.
  6. Moving Forward: After the inspection, you have the opportunity to assess the inspection report and discuss any concerns with your real estate agent. You can decide to proceed with the purchase as-is, request repairs or credits, or, in extreme cases, choose to withdraw your offer if the issues are deemed unacceptable.

It’s important to note that a home inspection is for your information and protection as a buyer. It helps you make an informed decision about the property’s condition and potential costs associated with repairs or maintenance. Your real estate agent is there to assist you throughout the process, including recommending reputable inspectors, reviewing inspection reports, and guiding you in negotiations with the seller.


Questions Asked “Once A Purchase Offer Is Accepted

What’s the next step once my purchase offer is accepted?

Congratulations on having your purchase offer accepted! Once your offer is accepted, there are several important steps to take as a buyer. Here’s an overview of what comes next:

  1. Earnest Money Deposit: Shortly after your offer is accepted, you will be required to submit an earnest money deposit. This deposit shows your commitment to purchasing the property and is typically held in an escrow account until closing. The amount and terms of the deposit are specified in your purchase agreement.
  2. Open Escrow: Escrow is a neutral third-party entity that handles the transaction process and ensures that all terms and conditions are met by both parties. Your real estate agent or the designated escrow officer will open an escrow account and provide you with instructions for depositing the earnest money.
  3. Schedule Inspections and Due Diligence: Once the offer is accepted, it’s time to schedule any necessary inspections and conduct further due diligence. This may include a home inspection, termite inspection, appraisal, survey, or any other inspections required or desired based on the property and local requirements. Your real estate agent can help coordinate these inspections and provide recommendations for qualified professionals.
  4. Review and Negotiate Repairs: After the inspections are complete, you will receive inspection reports highlighting any issues or deficiencies found. Review these reports carefully, and if necessary, work with your real estate agent to negotiate repairs or credits with the seller. Depending on the terms of your purchase agreement, there may be specific deadlines for submitting repair requests or negotiating repairs.
  5. Finalize Financing: If you haven’t done so already, it’s important to continue working with your chosen lender to finalize your financing. Provide all necessary documentation, respond to any lender requests promptly, and stay in close communication with your loan officer to ensure a smooth loan process. Stay aware of key financing deadlines outlined in your purchase agreement.
  6. Clearing Contingencies: Your purchase agreement may include contingencies, such as a financing contingency, appraisal contingency, or inspection contingency. Each contingency has specific requirements and timelines. Work closely with your real estate agent and communicate with the seller’s agent to ensure all contingencies are satisfied within the designated timeframes.
  7. Final Walk-Through: Prior to closing, it’s customary to conduct a final walk-through of the property. This allows you to verify that the property is in the agreed-upon condition and that any negotiated repairs have been completed satisfactorily. If any issues arise during the walk-through, inform your real estate agent to address them with the seller.
  8. Closing: The final step in the home-buying process is the closing. At the closing, you will sign all necessary documents, pay any remaining closing costs or fees, and receive the keys to your new home. Your real estate agent and attorney will guide you through this process and ensure all necessary paperwork is completed correctly.

Remember, this is a general outline, and the specific steps and timeline can vary depending on your location and the terms of your purchase agreement. Your real estate agent will be your valuable resource, guiding you through each step and providing the necessary support to ensure a successful and smooth closing.


What happens if the appraised value comes in lower than the agreed upon purchase price?

If the appraised value of a home comes in lower than the agreed-upon purchase price, it can have implications for the transaction. Here’s what typically happens in such a situation:

  1. Notification: Once the appraisal report is completed, the lender will inform both the buyer and the seller of the appraised value. The buyer’s real estate agent is usually the first to receive this information and will communicate it to their client.
  2. Evaluation: The buyer and their real estate agent will review the appraisal report to understand the factors that led to the lower valuation. They will assess the accuracy of the appraisal and determine if any errors or omissions need to be addressed.
  3. Options for the Buyer: If the appraised value is lower than the purchase price, the buyer has a few options:a. Renegotiate the Price: The buyer can renegotiate with the seller to lower the purchase price to match the appraised value. This requires mutual agreement between both parties and is contingent upon the seller’s willingness to adjust the price.b. Challenge the Appraisal: If the buyer believes there were errors in the appraisal or if there is additional evidence to support a higher value, they can work with their real estate agent to challenge the appraisal. This process involves providing additional information or requesting a review of the appraisal by the lender.c. Pay the Difference: The buyer can choose to proceed with the purchase and cover the difference between the appraised value and the purchase price out of their own funds. This option typically requires the buyer to have additional cash on hand or secure alternative financing.d. Walk Away: If the buyer is not able to negotiate a satisfactory resolution or cover the difference in funds, they may have the option to terminate the purchase agreement based on the appraisal contingency. This allows the buyer to back out of the transaction and have their earnest money deposit returned.
  4. Seller’s Response: Upon receiving the appraisal results, the seller can evaluate the options presented by the buyer. They may be open to renegotiating the price, providing additional documentation to support the initial purchase price, or discussing alternative solutions. The seller’s response will depend on their motivation to sell and their assessment of the market.
  5. Negotiation and Resolution: Both parties, along with their real estate agents, will engage in negotiations to find a mutually acceptable resolution. The goal is to reach an agreement that allows the transaction to proceed or, if necessary, to terminate the contract and handle the return of earnest money.

It’s important to note that the specific steps and options available may vary depending on the terms of the purchase agreement, local market conditions, and the willingness of both parties to find a resolution. Your real estate agent will be instrumental in guiding you through this process, advising you on the best course of action, and advocating for your interests.


How much are closing costs?

As a buyer in New York, it’s important to understand that closing costs can vary based on several factors, including the purchase price of the home and the specific location within the state. While I can provide you with a general overview of common closing costs, it’s important to consult with a local real estate professional or a qualified mortgage lender who can give you a more accurate estimate based on your specific circumstances. Here are some common closing costs you may encounter:

  1. Loan-related Fees: These fees are associated with obtaining a mortgage loan and can include items such as loan origination fees, application fees, credit report fees, and underwriting fees. These costs typically range from 1% to 3% of the loan amount.
  2. Title and Escrow Fees: These fees are related to the title search, title insurance, and escrow services. They ensure that the property’s title is clear and that the transaction is conducted legally. Title insurance premiums can vary but are typically around 0.5% to 1% of the purchase price.
  3. Appraisal Fees: The lender may require an appraisal to assess the value of the property. The appraisal fee is typically paid by the buyer and can range from a few hundred dollars to over a thousand dollars, depending on the property’s complexity.
  4. Home Inspection Fees: While not always mandatory, a home inspection is highly recommended to uncover any potential issues with the property. Inspection fees can range from a few hundred to several hundred dollars, depending on the size and complexity of the home.
  5. Attorney Fees: In New York, it’s common for buyers to have legal representation during the home-buying process. Attorney fees can vary depending on the complexity of the transaction and the attorney’s hourly rate.
  6. Recording and Transfer Taxes: These fees are associated with the transfer of ownership and the recording of documents. Transfer taxes are imposed by the state and/or local government and are typically based on the purchase price of the property. Recording fees vary by jurisdiction.
  7. Prepaid Expenses: This includes costs such as prepaid property taxes, homeowner’s insurance premiums, and prepaid interest. The amount will depend on the time of year you purchase the home and the specific terms of your loan.

Remember, these are just general estimates, and actual closing costs can vary. It’s essential to work closely with your real estate agent and lender to obtain a detailed estimate of your closing costs and to review the Closing Disclosure provided by the lender before closing. This disclosure will outline the final costs you are expected to pay at closing.


Do I need to conduct a final walk-through before closing?

As a buyer, it is highly recommended that you conduct a final walk-through of the property before closing. The purpose of the final walk-through is to ensure that the property is in the agreed-upon condition and that any negotiated repairs or changes have been completed satisfactorily. Here’s why the final walk-through is important:

  1. Verify Property Condition: The final walk-through allows you to confirm that the property’s condition has not significantly changed since you last visited. You can ensure that any repairs or agreed-upon improvements have been made as per the terms of the purchase agreement.
  2. Check for Damage: You can assess if there is any new damage to the property that may have occurred during the moving process or due to unforeseen circumstances. This includes checking for leaks, broken appliances, or other issues that may need to be addressed before closing.
  3. Ensure Fixtures and Appliances are in Working Order: The final walk-through provides an opportunity to test fixtures, appliances, heating, cooling, and other systems to ensure they are functioning properly. If something is not working as expected, it can be addressed before closing.
  4. Confirm Property is Vacant and Cleaned: If the property was occupied by the sellers until the closing, the final walk-through allows you to verify that the property is vacant and has been cleaned according to the terms of the contract.
  5. Address Any Outstanding Issues: If you identify any issues during the final walk-through, you can bring them to the attention of your real estate agent or the seller’s agent. Depending on the severity of the issue, it can be resolved prior to closing or appropriate arrangements can be made to address it after closing.
  6. Peace of Mind: The final walk-through provides peace of mind for buyers, knowing that the property is as expected and that any necessary repairs or changes have been completed. It ensures that you are satisfied with the condition of the property before finalizing the purchase.

It’s important to schedule the final walk-through as close to the closing date as possible, preferably within 24 hours of the scheduled closing. Your real estate agent will typically accompany you during this walk-through to assist and address any concerns that may arise. If you discover any issues, your agent can work with the seller’s agent to find a resolution that is acceptable to all parties involved.

When should I begin transferring utilities to my new home?

As a buyer, it’s important to plan ahead and start the process of transferring utilities to your new home in a timely manner. Here’s some guidance on when you should begin transferring utilities:

  1. Prior to Closing: It’s advisable to initiate the utility transfer process a few weeks before the scheduled closing date. This will give you enough time to complete the necessary arrangements and ensure a smooth transition of services.
  2. Confirm Closing Date: First, make sure to confirm the closing date with your real estate agent or attorney. The closing date is typically set during the contract negotiation phase, and it serves as an important reference point for utility transfers.
  3. Contact Utility Companies: Reach out to the utility companies that provide services to your new home. This may include electricity, gas, water, sewer, trash, cable, internet, and phone providers. Notify them of your upcoming move and request the transfer of services to your name effective from the closing date.
  4. Gather Information: When contacting the utility companies, have relevant information readily available, such as your new address, closing date, account numbers (if applicable), and any other documentation they may require for the transfer process.
  5. Schedule Disconnections and Connections: If you have existing utility accounts in your current residence, inform the utility companies about your moving-out date. Schedule the disconnection of services for your old home shortly after your planned move-out date. Similarly, schedule the connection of services for your new home to coincide with the closing date or the day you plan to move in.
  6. Coordinate with Sellers: If possible, communicate with the sellers or their agent to gather information about the utility providers currently serving the property. This will help ensure a smooth transfer and minimize any potential gaps in service during the transition.
  7. Additional Considerations: In addition to essential utilities, consider other services you may need in your new home, such as security systems, lawn maintenance, and homeowners association (HOA) dues. Make the necessary arrangements to transfer or establish these services as well.

Remember, it’s essential to communicate and coordinate with the utility companies, sellers, and your real estate agent to ensure a seamless transfer of services. By starting the process a few weeks before closing, you can avoid any disruptions and ensure that your new home is ready with all necessary utilities when you move in.


When is the closing?

The closing date is an important milestone in the home-buying process, as it is the day when ownership of the property is officially transferred to you, the buyer. The specific closing date is typically determined during the negotiation and contract phase of the transaction. Here’s some information to help you understand when the closing may occur:

  1. Contract Negotiation: Once your offer is accepted by the seller and the purchase agreement is executed, the contract will include a mutually agreed-upon closing date. This date is typically based on the timelines outlined in the contract, local practices, and the availability of all parties involved.
  2. Timeframes: The timeframe from contract acceptance to closing can vary. It’s important to review your purchase agreement and consult with your real estate agent to determine the specific timeframe for your transaction. It could be anywhere from a few weeks to a couple of months, depending on various factors such as financing, inspections, and any contingencies.
  3. Mortgage Loan Process: If you are obtaining a mortgage loan, the closing date will also depend on the timeline set by your lender. The lender will need sufficient time to process your loan application, conduct an appraisal, and complete other necessary steps before finalizing the loan.
  4. Coordination with Parties Involved: The closing date needs to be coordinated with various parties, including the seller, the seller’s attorney, your attorney, the title company or closing agent, and any other relevant parties. All parties must be available and have completed their respective tasks to proceed with the closing.
  5. Flexibility and Contingencies: It’s important to note that the closing date may be subject to change due to unforeseen circumstances or delays. For example, if issues arise during the inspection or appraisal process, additional time may be needed to resolve them before proceeding with the closing.

To get the most accurate and up-to-date information regarding your specific closing date, it’s best to communicate closely with your real estate agent, lender, and any other professionals involved in the transaction. They will be able to provide you with the most current information and keep you informed about any changes to the closing timeline.


Final Thoughts

We hope that the information provided has been valuable in addressing your questions and concerns as you navigate the home-buying process. Remember, buying a home is a significant decision, and it’s important to be well-informed and prepared every step of the way.

By familiarizing yourself with these frequently asked questions, you have taken a proactive approach to understanding the intricacies of buying a home. However, please keep in mind that real estate transactions can vary, and it’s always recommended to consult with a professional real estate agent for personalized guidance based on your specific circumstances.

As experienced Realtors, we are here to support you throughout your home-buying journey. We can provide you with expert advice, guide you through the process, and help you make informed decisions. Our goal is to ensure that you have a smooth and successful home-buying experience.

If you have any additional questions or would like to start searching for your dream home, please don’t hesitate to reach out to us. We are dedicated to assisting you in finding the perfect home that meets your needs and fits your budget.