FAQ
Common Real Estate Questions
Here are the top questions we answer about real estate.
Real Estate FAQ
A roundup of questions and answers about real estate.
Answers to Real Estate Questions
A slew of questions pop into your head throughout the real estate process, no matter how many times you’ve done it. You’re shelling out tons of cash for a place you’ll hang onto for years to come. Since people have a lot on their minds while moving, we’ve revealed the most common questions asked by our clients about real estate.
Often Asked by Nearly Every Client
We’ve gathered answers to the questions nearly every client asks us about real estate. Selling a home you’ve loved over the years isn’t like unloading your collection of old Slayer LPs on Craigslist (or is it…?). Selling a house is emotional & complex. So we’re spilling the beans on property sales and how real estate transactions work.
Q&A
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- Buying
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- Making Offers
- Reviewing Offers
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- Appraisals
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That depends on your income and other financial obligations. Meet with a lender to get pre-approved for a home loan first, and do it before you start shopping. Seeing houses you love outside your price range opens you up to disappointment early in the process. You’ll also need that Pre-Approval Letter to make Offers when the time comes.
While house hunters these days look at hundreds of listings online, most only visit up to 10 homes on average before making an offer. Keep in mind, this varies for each person. Some people make an Offer on the first house they tour within hours of visiting. For others, the home search takes months. It can help to hone in on a particular neighborhood you’re keen on. Consider expanding your search to the surrounding areas if your options are limited.
As a rule of thumb, knocking 5% off the list price won’t ruffle any feathers. If it’s been sitting on the market for months, you can venture below that, but the bottom line is, “You never know how low a seller will go, as they have different motivations for selling,” says Marc Castillo of Coldwell Banker in Atlanta, GA. If the sellers are eager to move, you could luck out and score a deal.
Check out recent sales of similar properties nearby and gauge how home sale prices are trending in the area. Figure out whether those prices have been going up or down in the recent past. A Certified Pricing Strategy Advisor can make adjustments to prior home sale prices and help fine-tune a ballpark Offer range.
Yes, you absolutely can —but it’s a balancing act that takes reverse engineering dollars and dates with a little extra buffer. Buying a new house before selling your current home could lead to carrying two mortages, while selling before you buy could mean your current house sells before the new one is ready – so you rent in the interim and have to move twice.
But there are strategic ways to do both at once. Here are some ways to buy and sell simultaneously:
• Replacement Contingency: List your current home “Subject to Seller finding suitable housing.” Only sell your home once the next house is under contract.
• Sale Contingency: Purchase the next house “Subject to sale of Buyer’s property.” Only buy a house once your current home sells.
• Rent-Back: Lease the house from new Buyer after closing date. Pay the Buyer a pro-rated amount to move out of the house after closing.
• Bridge Loan: Buy before selling with your existing equity. Use home equity as collateral to gap the difference in two mortgages with a bridge loan.
It is possible to sync up two concurrent real estate sales with careful planning and communication. Both parties from each transaction need agree on how to meet these contingencies and accommodate extended timelines.
• Replacement Contingency: List your current home “Subject to Seller finding suitable housing.” Only sell your home once the next house is under contract.
• Sale Contingency: Purchase the next house “Subject to sale of Buyer’s property.” Only buy a house once your current home sells.
• Rent-Back: Lease the house from new Buyer after closing date. Pay the Buyer a pro-rated amount to move out of the house after closing.
• Bridge Loan: Buy before selling with your existing equity. Use home equity as collateral to gap the difference in two mortgages with a bridge loan.
It is possible to sync up two concurrent real estate sales with careful planning and communication. Both parties from each transaction need agree on how to meet these contingencies and accommodate extended timelines.