Questions for sellers | Questions for buyers

 

 

Questions for sellers | Questions for buyers

 

Introduction

Buying or selling a house can be confusing and stressful. It’s not just about making a deal; it’s about making important life decisions. Whether you’re getting a house ready to sell or trying to buy a new one, there are many things to think about and questions to answer. This can be overwhelming, even for people who have done it before, the process can feel daunting. Real estate transactions are notoriously complicated, so it’s normal to have questions during every step of the selling or buying journey.

 

In this guide, we’ll answer 30 of the most common real estate questions to help you better understand the market and all of your potential options.

 

NB

If you have other questions about the buying or selling process, we highly recommend connecting with a professional real estate agent. A realtor can answer questions based on your local market, giving you the confidence and knowledge you need to navigate the real estate process. Find an experienced real estate agent near you today!

 

The top 15 real estate questions to ask when selling a house

1. How do I prepare my home before I sell it?

When preparing to sell your home, the first thing to do is make it presentable. This means giving the entire house a thorough cleaning and making small repairs.

Mop the floors, scrub the bathrooms, and get rid of all the grime in the kitchen.

Little things like patching holes in the wall, changing burned-out lightbulbs, and repairing broken appliances can make your place stand out in a crowded market.

And don’t forget about paint — returning the walls to a neutral color can help your house sell quicker. White, creams, and grays can make rooms seem bigger and help potential buyers see themselves living there.

If you’re not moving out before listing your home, you’ll also need to depersonalize and declutter.

Put away your family photos, knick-knacks, and other personal items. You may need to rent a storage unit if you don’t have a place to put them all.

 

» READ: 18 Essential Tips Get Your House Ready to Sell in 2021 (recommend)

» LEARN: Best Paint Colors to Sell a House(recommend)

 

2. How long will it take to sell my home?

On average, a house takes between 55 and 70 days to sell. That includes 25 days on the market and 30 to 45 days for closing.

The exact time it takes to sell a home depends on a few things, including:

The time of year you’re listing: Homes tend to sell faster in the spring and early fall.

Conditions in your local housing market: Homes sell faster in a seller’s market, when there is low inventory and high demand.

The condition of your home: Homes in great condition may sell faster than homes that need more work.

How the buyer is financing: If a buyer needs to take out a mortgage, this may slow down the process. Financing deals usually take an average of 42 days to close, whereas cash deals take only one to two weeks.

The longer your home is on the market, the more money you lose. You’ll still have to pay your mortgage, taxes, and utilities until the buyer officially closes.

To avoid this, there are some things you can do to help your home sell faster.

You can make impactful repairs, like adding new carpet or painting the interior. However, if it’s a seller’s market and homes are selling quickly, you might not need to make these repairs.

You can also set a competitive price with the help of a top real estate agent.

Clever Real Estate’s partner agents sell homes faster than the national average with lower commission fees.

» READ: How Long Does it Take to Sell a House? (An In-Depth Guide)(recommend)

» LEARN: How to Sell Your House Fast (A Comprehensive Guide)(recommend)

3. What should the list price of my home be?

The first step in deciding your home’s list price is to get a comparative market analysis (CMA) from a real estate agent.

To perform a CMA, your agent will find similar homes in your neighborhood that have the same square footage, number of bedrooms, and number of bathrooms.

They’ll see what these homes recently sold for or are listed for, and use this as a starting point for your own list price.

A great agent will be an expert in their local neighborhoods, so they’ll be able to price your home to sell without sacrificing your hard-earned equity. Get a free home valuation from a top local realtor today!

If you’re just curious and don’t want to spark up a conversation with an agent, you can also use an online home value estimator to get an idea of what your home is worth.

💰 How much is your home worth?

Discover the true value of your home with our Home Value Estimator!

Find My Home’s Value

4. Why is my home’s assessed value different from the market value?

Your home’s assessed value and market value are each determined by different factors.

Buyers and sellers affect the market value of a home, while professional appraisers calculate the assessed value.

In a seller’s market, your home’s market value may be higher than its assessed value.

That’s because buyers are willing to pay more than the home is technically worth because of low inventory.

In a buyer’s market, you’ll be facing a lot of competition from other sellers, so buyers may put in an offer lower than the home’s assessed value.

 

» LEARN: Appraisal Value vs Market Value: What’s the Difference?(recommend)

5. Are real estate commissions negotiable?

You can definitely negotiate your realtor’s fees. They’re typically 6%, with 3% of that going to the buyer’s agent and 3% going to your agent.

Some agents may be willing to work for less, especially if you use a discount broker or agent-matching service like Clever.

You can also try to negotiate fees on your own, though the realtor may reduce the number of services they provide.

The same goes for using a discount broker. Some offer cheaper rates because they’re providing you with less help along the way.

They may even charge you with a fee-for-service structure. This can work in your favor if you have experience in selling, but need just a little help with the paperwork.

To get cheaper commissions without sacrificing service, an agent-matching service like Clever is ideal.

💰 Clever pre-negotiates low commission rates for you!

Try Clever’s free agent matching service: compare top agents in your market, get built-in commission savings.

 

Choose from top local agents from major brands like Compass and RE/MAX

Get a pre-negotiated 1.5% listing fee (half the typical rate)

Clever’s service is 100% free with no obligation

You only pay your agent’s low listing fee when your house sells

6. When is the best time to sell a home?

Early spring and summer, especially June, is a great time to sell a home.

Research shows that home sales in May, June, July, and August account for 40% of total annual sales volume.

Overall, home sales are still pretty good through early fall, so it wouldn’t be a bad idea to sell a home during this period, either.

However, home sales drop once winter hits. January is the worst time to sell a home, as market activity is much lower.

Take a look at the number of homes sold per month in 2018 to get a better idea of when to sell your home.

» READ: How Long Should You Live in a House Before Selling?(recommend)

» SAVE: Sell with a top local realtor for just $3.5 / N4,884,730 or 1.5% (recommend)

7. Should I buy a new home before selling my old one?

Whether or not you should buy a new home before selling your existing home is a personal choice.

Having a new home lined up gives you peace of mind when selling, and you can move out on your own time.

It also prevents you from lining up temporary housing (and having to move twice), which can be a pain.

That said, you may get stuck paying two mortgages at once. This can be a problem if your sale takes longer than expected.

You can also feel rushed into quickly finding a house instead of waiting for a better deal.

» LEARN: How to Buy a New House Contingent on Selling Your Current One(recommend)

» CONSIDER: How to Build a House While Selling Yours: 5 Things to Know(recommend)

8. How does my agent get paid when selling a house?

Total agent fees are usually 5–6%, with 3% of that going to the seller and 3% going to the buyer.

As the seller, you’ll be responsible for paying your agent through your sale profits. You’ll also pay the commission of the buyer’s agent.

You won’t need to write a bunch of big checks or bring wads of cash to the table. A closing agent will handle the distribution of funds when you close.

They’ll hold money from the buyer in escrow and use it to pay everyone, including your agent.

Escrow is a third-party account where the listing agent keeps money until it’s time to be distributed.

If you want to save on commission a little, you can use a service like Clever to reduce the seller commission to 1.5% or $3,500/4,884,730 NGN.

» UNDERSTAND: What Is Realtor Commission?(recommend)

» LEARN: Average Real Estate Commission Rate (recommend)

9. How much does a seller pay in closing costs?

Sellers usually pay about 8–10% of the total sale price in closing costs. Of that, 5–6% is realtor commission.

The rest is a collection of various other costs, including:

Title search         $150–400( N209,367-N 558,312)

Title insurance  $1,000–4,000(N1,395,780-N5,583,120)

Escrow fee          0.5% of the final sale price

Transfer tax        Varies by state

Prorated property taxes   Varies based on your local rates and when you sell

If you decide to pay part of your buyer’s closing costs, you may end up paying a bit more. They can range anywhere from 2–5% of the sale price.

» READ: Who Pays Closing Costs?(recommend)

» LEARN: When and How Do You Get Paid When You Sell a House?(recommend)

10. How much of the sale price do I get?

How much you actually get when selling your home depends on a lot of factors, but in general, expect somewhere between 90–92% of the sale price.

That usually includes 5–6% in realtor commissions and 2–4% in taxes and fees.

If you still owe money on your old mortgage, you will get less.

You’ll also get less if you agreed to pay for any of the buyer’s closing costs.

Buyer’s closing costs can add on another 2–5% of the sale price.

 

On closing day, your closing agent will distribute the funds to all the necessary parties. They’ll pay out your profits via a check or wire transfer.

» DISCOVER: Seller Net Sheet Guide & PDF (recommend)

11. How can I save money when selling a home?

The best way to save money when selling a home is to negotiate your realtor’s fees.

Sellers usually pay 6% in fees, with 3% going to the seller agent and 3% going to the buyer agent.

If you don’t want to test your negotiating skills, you can just use Clever to get your seller agent fees down to 1.5% or $3,500/4,884,730 NGN. Our large network of top-rated agents provide the same services you’d get with another agent, just cheaper.

You can also save money by trying to sell your home on your own to completely eliminate the seller commission.

But this isn’t recommended unless you have extensive experience and knowledge in the real estate industry.

That’s because selling a home involves a lot of complicated legal paperwork. An agent knows how to handle all of this so you don’t land in legal trouble.

One alternative is hiring a lawyer to take care of paperwork. However, they don’t come cheap (budget about $1,000-1,500 (4,884,730 NGN) for the service), and you’d still need to manage your listing and coordinate showings and negotiations.

Selling a home requires some marketing know-how. Agents regularly handle the hassles of advertising and showing your property to potential buyers. And they alone have access to the multiple listing service (MLS), a local database of homes for sale. This allows them to list your home on all of the major listing sites.

If you’re selling your home on your own, you can use a flat-fee MLS company to get your home in the database and even post your listing to all the top real estate websites.

12. Should I pay my buyer’s closing costs?

You may want to pay for your buyer’s closing costs if it allows them to make a better offer or helps the sale close faster.

Usually, paying for these costs comes in the form of a credit the buyer uses during closing. A buyer might put this credit toward:

Loan origination fees      1% of the loan value

Mortgage application fee    $25–150 (34,894.50 NGN – 209,367 NGN)

Appraisal fee     $300–1,000(418,734 NGN to 1,395,780 NGN.)

Points on mortgage         Varies

Wire transfer fee             $10–50 (13,957.80 NGN to 69,789 NGN)

SHOW 8 MORE ROWS

Buyers may be able to put in a higher offer if there’s less money for them to pay upfront.

Paying their closing costs can also reduce the amount they need to take out in a mortgage, making it more likely they’ll qualify for the loan and the sale will go through without a hitch.

Additionally, if your house has been on the market for a while, offering to pay for a buyer’s closing costs can attract more offers and speed up the closing process.

Finally, if the inspection reveals small issues the buyer might want to repair, offering to pay the buyer’s closing costs can make them feel more comfortable going through with the deal.

» READ: Can a Seller Refuse to Pay Closing Costs?(Recommend)

» READ: Who Pays Closing Costs?(Recommend)

 

13. Do I need a home inspection?

It’s the buyer’s responsibility to get a home inspection, so as the seller, you don’t need to get one. An inspection usually ranges from $300–500, so that’s money you can keep in your pocket.

That said, a pre-listing inspection does have some benefits:

You’ll have the chance to discover and take care of major problems before listing, which could increase the value of your home.

You’ll get to choose your own inspector instead of relying on the buyer’s choice.

You may be able to set a higher list price if your home is in great shape.

You can encourage the buyer to waive the inspection contingency, meaning there will be fewer chances for your deal to fall through.

» LEARN: Who Pays for a Home Inspection — the Seller or the Buye?(Recommend)

» KNOW: How Long is a Home Inspection Good For? Tips for Sellers?(Recommend)

 

14. What are common bank-required repairs?

If the buyer is just taking out a conventional loan, you’ll probably only need to fix major structural issues that put the value of the house at risk, such as foundation cracks or a deteriorating roof.

For a Federal Housing Administration (FHA) loan, you’ll need to make a lot more repairs.

 

These required repairs might include things like:

Patching up peeling paint

Concealing any exposed wiring

Fixing broken gutters

Installing missing handrails on stairs

This list is more extensive because an FHA loan is provided to low-income homebuyers who may not have extra money to cover repairs on their own.

States and banks can also set their own requirements, so always check your local regulations.

» UNDERSTAND: How to Sell a House that Needs Major Repairs(Recommend)

15. How can a real estate agent help me sell a home?

A real estate agent has an in-depth knowledge of the area and how your home compares to others on the market.

They’ll have a good idea of how much you can get for your home and ways you can improve its value.

When it’s time to list, they’ll make sure your home’s priced just right, helping to maximize your offers and sell your home faster. They’ll also take care of all the paperwork, market your home, and coordinate open houses.

Real estate agents aren’t just helpful during the listing process, though. They offer a network of professionals throughout the entire selling journey.

You’ll have connections for everyone you need, whether that’s a closing agent or quality listing photographer.

» LEARN: Top 3 Reasons You Need a Real Estate Agent(Recommend)

» READ: What Is a Listing Agent?(Recommend)

 

The top 15 real estate questions to ask when buying a home

1. What is the first step for buying a home?

Before you can purchase a home, you’ll need to check your credit score. Potential buyers with credit scores of 700 or higher reassure lenders that they can be trusted to repay the loan.

 

High scores reflect consistent on-time payments, long-term borrowing experience, and a good mix of credit types (student loans, car loans, credit cards, etc.).

 

Lenders look at these factors to determine if you qualify for certain kinds of mortgages, so be sure to review your credit history and correct any errors. This will give you a better chance at qualifying for loans with lower interest rates.

 

Shop around for different mortgage lenders to find out what kind of loans you prequalify for before beginning your home search. With this knowledge, you can easily create a budget and start looking for homes within that range.

 

2. How long will it take to buy a home?

In 2019, it took buyers an average of 4.5 months to choose a home and make an offer. The buying process itself, which begins when an offer is accepted, takes about 30-45 days to finalize.

 

However, several factors can affect the buying process, including the property’s location, buyer demand, economic trends, and other variables. Before closing, you’ll also need to::

 

Order a home inspection

Get an appraisal

Conduct a title search

Finalize mortgage details

Review closing documents

To speed up the home buying process, connect with a top real estate agent in your area. A knowledgeable agent can help you narrow down your options and negotiate with sellers on your behalf.

 

» LEARN: How Long Does It Take To Close On a House?

 

3. Can I back out of buying a house?

Yes, but you may lose earnest money (basically, a security deposit given to the seller upon signing a contract).

 

You can also face legal consequences if you back out of the agreement for a reason not outlined in the purchase agreement. This document outlines important details, such as repairs the seller is responsible for and contingencies of the real estate deal.

 

However, there are certain scenarios where breaking a purchase agreement is understandable. If you lose your job, can’t sell your current home, or can’t get approved for a mortgage, it’s best to wait until you reach financial stability before buying.

 

Other issues with the home, such as a failed home inspection, unrepaired problems, or difficulty with transferring the title, are also acceptable reasons to back out of an agreement.

 

» LEARN: When Can a Buyer Terminate a Contract in Real Estate?

 

4. Are real estate prices negotiable?

Yes! You just need a good understanding of the current market and the seller’s needs and motivations.

 

When the real estate market is a seller’s market, for instance, homes are in high demand and will likely receive multiple offers. Lowballing an offer in this case might cause you to lose your chance at your dream home.

 

During the first three months of 2021, the average cost of a home in the U.S. was $403,600. If this number discourages you, learning how to negotiate is key. Tactful negotiation with a seller can help you afford a home you love instead of settling for an option under budget.

 

Consulting a real estate agent is your best bet if you want to make sure your offer won’t be rejected or ignored. Their knowledge of the local market and buyer demand will help you and the seller negotiate a fairer price.

 

Whether or not you use an agent, wait until after the home inspection before you try to negotiate a lower price. If the inspector finds any issues, you can ask either for a reduced price or for the problems to be fixed prior to closing.

 

👋 Need a great agent on your side?

Connect with top local agents who can help you get a great deal on a new home. Eligible buyers also earn cash back after closing.

 

Enter your zip code

Find Your Agent

» READ: How to Negotiate When Buying a House — An In-Depth Guide

 

5. When is the best time to buy a home?

It depends whether you’re searching for the lowest prices or the greatest variety of options. According to a 2016 analysis, April is the most popular month for new listings, whereas November is the best time to find a good deal.

 

August seems to be a happy medium, offering both low prices and a wide selection of homes.

 

Since many sellers are eager to close deals before summer ends and school begins, buyers can expect to see plenty of price reductions in August. In 2016, for example, 15.1% of sellers reduced their listing prices before autumn. At the same time, 448,000 new homes were added to the market.

 

» READ: The Best Time to Buy a House in Minnesota

 

» READ: The Best Time to Buy a House in California

 

6. Should I sell my home before buying a new one?

It depends how far along you are in your home search process. If you sell your home before you’ve narrowed down your options, you might be forced to find a short-term rental or stay with friends or family. In either case, remember that this means you’ll be forced to move twice or pay for a storage unit.

 

On the other hand, selling your home first can give you a significant advantage over other potential buyers.

 

If you find a listing you really love, you can make a strong offer with the cash you made from the sale without worrying about going over your budget.

 

Furthermore, since you won’t feel rushed to accept an offer on your own home, you can wait until someone makes an offer you like.

 

» LEARN: How Do I Sell My House? Everything You Need to Know

 

7. How does my agent get paid when buying a house?

The agent’s commission is included in the sale price of the home, so they will be paid at closing. The standard commission rate is 6% of the sale price, which is split among the listing agent, listing broker, buyer agent, and buyer broker.

 

Typically, this means your agent will be paid about 1.5% of what you paid for the home.

 

If a home costs $200,000, for example, the total cost of commission would be $12,000.

 

Percentage         Dollar amount

Total commission             6%          $12,000 / 16,749,360 NGN

Listing broker cut             1.5%      $3,000

Buyer’s agent’s broker cut            1.5%      $3,000/4,187,340 NGN

Listing agent take-home pay       1.5%      $3,000/4,187,340 NGN

Buyer’s agent take-home pay     1.5%      $3,000/4,187,340 NGN

» UNDERSTAND: What Is Realtor Commission?

8. How much does a buyer pay in closing costs?

Closing costs usually fall between 3–5% of the home’s sale price. In 2020, the national average for closing costs was $6,087, including taxes. This payment covers several necessary items for the buyer, including:

 

Loan origination fees      1% of loan value

Mortgage application fee             $25–150/ 209,367 NGN.

Appraisal fee     $300–1,000/418,734 NGN to 1,395,780 NGN.

Points on mortgage         Varies

Wire transfer fee             $10–50/13,957.80 NGN to 69,789 NGN.

SHOW 7 MORE ROWS

Depending on the location, closing costs might also include real estate attorney fees, pest inspections, or natural disaster certifications.

Buyers can negotiate with sellers about who should be responsible for covering the closing costs, but be aware of seller contribution maximums. These guidelines limit how much a seller can pay for closing costs based on your mortgage type.

» READ: Who Pays Closing Costs on a House?(recomend )

9. How can I save money when buying a home?

You can check if you’re eligible for financial programs or loans available through the FHA (Federal Housing Administration) or the VA (U.S. Department of Veteran’s Affairs). If you’re a first-time buyer, for instance, you may qualify for an FHA loan or a home buying program.

 

If you meet the criteria for a VA-backed loan, you might not have to make a down payment on a home. You’ll also receive better terms and interest rates compared to most traditional bank loans.

 

For additional ways to save, financial experts recommend saving up for a 20% down payment on a home. Doing this will ensure that you won’t have to pay for private mortgage insurance, which can cost anywhere from .3% to 1.2% of a loan’s principal balance every month.

 

Lastly, home buyer rebates (also known as commission rebates) are currently available in 42 states and could potentially save buyers thousands. With a home buyer rebate, the real estate agent or broker shares a percentage of the payment they receive at closing with you, so you get some of your money back.

 

💰 Find your dream home, get cash back

Why leave extra money on the table? Clever can connect you with one of the top real estate agents in your area, plus put cash back in your pocket.

With Clever:

✅ You’ll work with a full-service realtor from a top broker

✅ You’ll earn cash back on qualifying purchases

✅ It’s free, with zero obligation — you can walk away at any time

Fill out the form below to get started!

10. What is earnest money/hand money?

Earnest money is often described as a “good-faith deposit” from an interested buyer. The amount is usually 1–3% of the home’s purchase price, and it shows the seller that the buyer is serious about closing the deal.

 

As the sale is pending, the earnest money is placed in escrow (an account held by a third party until the sale is finalized). At closing, the funds can go towards closing costs or a down payment on the home.

 

If the buyer has to back out of purchasing the home due to a contingency in the escrow agreement, they will get their earnest money back. However, if the buyer chooses to back out of the deal for any other reason, the money will go to the seller instead.