5 Real Estate Questions - Answered!

When it comes to real estate, there are always a lot of questions. Whether you're a homeowner, rental property owner, or in the market to buy or sell a home, you likely have some questions that need answers. Here are 5 of the most common questions we hear from our clients, along with the answers you need. Let's get started!

1. 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.

2. 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.

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.

3. 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.

4. What should my down payment be on a house?

Making a down payment of 20% is ideal because you can avoid paying private mortgage insurance (PMI), but more realistically, lenders usually require at least 3% for the sale to go through.

Depending on where you live and what kind of mortgage you’re eligible for, some lenders may require a minimum of 5%.

In some circumstances, you may not have to worry about a down payment at all. If you’re a first-time buyer, veteran, or rural resident, there are special programs available to help you afford a home.

5. 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.

If you are in the market for a new home, or are curious about the real estate market, these questions and answers will help shed some light on what to expect. Keep in mind that every situation is unique, so if you have specific questions, be sure to consult with a qualified real estate agent. Have you gone through the process of buying or selling a home? What were some of the most challenging aspects for you? Let us know!