17 Common Real Estate Questions Asked by Homebuyers
Last Updated: June 29, 2022
Many homebuyers are clueless when it comes to the home buying process, which can be complicated and daunting for a first-timer. That’s why it’s important to provide informative answers to their most basic, yet crucial questions. One great way to guide homebuyers along the way is by providing answers and solutions to these top questions, right on your real estate website.
Read on to know more about the 10 most frequently asked real estate questions homebuyers have for realtors.
Should I buy or rent a home?
The first question that homebuyers usually ask is whether they should buy or rent a home. While renting a home is definitely cheaper and less labor-intensive, buying a home comes with more long-term benefits. A great way to inform a homebuyer is to put up a detailed blog post on your website about the advantages and disadvantages of buying or renting. Seeing the differences in a list, table, or infographic format can easily help them gauge where they are at and what they are ready for.
What kind of home can I afford?
Homebuyers usually want to get an estimate of the kind of home that they can afford. With an online home affordability calculator, they can figure out a specific budget and set a price range based on their income and financial stability. Check out an example of this in action on DRK Real Estate Group’s website, which has a handy mortgage calculator in its “Resources” section. Real estate agents can also issue a free market report or comparative market analysis to help home buyers better understand the price range in the area they’re interested in.
Should I buy an existing home or a new build?
Both options have advantages and it all depends on what you want in a home. Since we’re in a seller’s market and listings are sparse, purchasing a newly built house is a great solution. That said, such a home often commands a higher selling price precisely because everything is brand new. Furthermore, they also tend to be located in up-and-coming or less established neighborhoods. An existing home, on the other hand, may have a lower selling price but might also require fixes that you may or may not be willing to undertake.
What are the local amenities and resources in my desired area?
When buyers are looking for homes, they also take into consideration the nearby schools, shopping areas, hospitals, and event centers. Having a resource list just like on Brandi Pratt’s website at theprattgroup.com/resources can already direct the buyer to the establishments and institutions in each community.
How big a down payment should I make?
Most people need to take out a mortgage loan when purchasing a house. That said, a mortgage lender will require a down payment from potential buyers as proof of their financial capability. Real estate agents should inform buyers what the recommended amount should be — as well as the consequences of falling short. For example, putting down less than 20% means taking out private mortgage insurance, which protects lenders if the borrower defaults on their loan.
When should I apply for a mortgage pre-approval?
Many homebuyers make the mistake of obtaining a mortgage pre-approval only after they find the perfect home. Without one, home buyers will have a harder time finding a willing seller. Simplify the pre-approval process by breaking it down on the Buyers page of your website just like on The Altman Brothers’ website: thealtmanbrothers.com/buyers
How can I save money on my mortgage loan?
Top real estate agents must be able to advise potential buyers on how to get the best mortgage rates. Interest rates are largely affected by credit history, so provide tips on raising this number. If a buyer qualifies for a Federal Housing Administration (FHA) loan, which has a lower down payment and credit score requirements, you should also facilitate their application.
How do I look for a home?
Since buyers often don’t know where to start looking for a home, real estate agents need to create ways for their buyers to search effectively. A great example is seen on the Higgins Group website, where buyers can find a home by searching by area, searching by specific property type, browsing through market reports, or simply going straight to a real estate agent. Check out their website here: higginsgroup.com
How can I buy a home in a seller’s market?
Buyers are in a tough position nowadays: even if they can afford the skyrocketing home prices, there’s often a dearth of available listings. Such is the dilemma in a seller’s market. As a buyer’s agent, make it clear how you can help clients land their dream home despite the competitive real estate market. Do you have exclusive listings no other agent has access to? Do you have a huge database of past clients that you can tap?
Is it possible to buy a home and sell my current one simultaneously?
While it is possible to do both transactions at the same time, a homebuyer must first assess the pros and cons of proceeding this way. Providing an FAQ on your website can help your buyer weigh the advantages and disadvantages of both situations and make an informed decision.
What is the market value of my home?
Buyers aren’t just looking to save money on their new home; they’re also keen on getting the biggest possible profit when they sell their current one. That’s why savvy real estate agents offer a free market report that gives buyers an idea of how much they could sell their home for. Allure Realty, for instance, has a free tool that determines a house’s potential market value based on its location and specs.
How long do real estate transactions take?
Homebuyers naturally want to move into their new house ASAP. How soon they can do so, however, depends on how quickly a buyer’s agent can close a real estate transaction, which in turn depends on local real estate market conditions. In a seller’s market, homes tend to sell quickly since demand outstrips supply; in a buyer’s market, on the other hand, people have the leeway to look at more options before making a decision. It also depends on how motivated a serious buyer is – some are willing to pay cash, for example, to bypass steps like mortgage approval and property appraisal.
Can I still back out of real estate contracts?
Buyers are legally allowed to back out from purchasing a home. The only catch is the buyer losing their earnest money deposit. Real estate agents should get home buyers up to speed on the nitty-gritty aspects of the home buying process by posting a detailed blog post on the topic. They will definitely appreciate your expert opinion on the matter.
Do I really need a real estate agent?
Working with a real estate agent is a huge advantage in helping a buyer find the home of their dreams. The best way to convince a buyer is to connect with them on a personal level. Jimmy Martinez’s introduction on housesinla.com talks about his main goal of providing the best real estate services to his clients.
Can I trust my real estate agent?
Buying a home involves cooperation and a leap of faith from the buyer to the agent. While buyers are initially hesitant to work with a new real agent, word-of-mouth marketing can help change their minds. Just check out the glowing testimonials on Douglas Rudnick’s website, which are prominently displayed on the homepage.
How much do I pay a real estate agent?
Buyers and sellers are often confused when it comes to computing an agent’s commission fees. Charter House Real Estate is all about transparency, so it has a calculator that shows would-be clients how much they can save if they work with the team. This information is presented as a detailed breakdown, showing how much lower its commissions are compared to the industry standard.
Are real estate commissions negotiable?
Potential buyers know that most real estate agents work on commission, so be prepared to field questions about your commission rate. Remember: buyers will pay a significant purchase price for their home, so they want to save more money by asking for a discount on your services. Be upfront about how flexible you are, but be willing to turn down clients if you’re not comfortable with lowering your rate.
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